UTSTARCOM HOLDINGS CORP. (Form: S-8, Received: 11/15/2018 07:14:36)

As filed with the Securities and Exchange Commission on November 15, 2018

Registration No. 333-

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM S-8

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

UTSTARCOM HOLDINGS CORP.

(Exact name of registrant as specified in its charter)

Cayman Islands

98-1007606

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

Level 6, 28 Hennessy Road, Admiralty,

Hong Kong

(Address of Principal Executive Offices) (Zip code)

UTStarcom Holdings Corp.

2006 Equity Incentive Plan (as amended)

(Full title of the plan)

Cogency Global Inc.

10 East 40th Street, 10th Floor, New York, NY 10016

(Name and address of agent for service)

(800) 221-0102

(Telephone number, including area code, of agent for service)

Copies to:

Tenling Ti
Chief Executive Officer
UTStarcom Holdings Corp.
Level 6, 28 Hennessy Road,
Admiralty, Hong Kong
(852) 3951 9757

David T. Zhang

Steve Lin

Kirkland & Ellis International LLP

c/o 26th Floor, Gloucester Tower

The Landmark, 15 Queen’s Road Central

Hong Kong

(852) 3761-3318

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐

Accelerated filer ☐

Non-accelerated filer ☒

Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

CALCULATION OF REGISTRATION FEE

Title of securities to be registered	Amount to be registered	Proposed maximum offering price per share	Proposed maximum aggregate offering price	Amount of registration fee
Ordinary shares, par value US$0.00375 per share	77,789 ⁽¹⁾	$2.12 ⁽¹⁾	$164,912.68 ⁽¹⁾	$19.99
Ordinary shares, par value US$0.00375 per share	185,266 ⁽¹⁾	$2.24 ⁽¹⁾	$414,995.84 ⁽¹⁾	$50.30
Ordinary shares, par value US$0.00375 per share	50,164 ⁽¹⁾	$1.84 ⁽¹⁾	$92,301.76 ⁽¹⁾	$11.19
Ordinary shares, par value US$0.00375 per share	28,315 ⁽¹⁾	$2.34 ⁽¹⁾	$66,257.1 ⁽¹⁾	$8.03
Ordinary shares, par value US$0.00375 per share	213,603 ⁽¹⁾	$4.56 ⁽¹⁾	$974,029.68 ⁽¹⁾	$118.05
Ordinary shares, par value US$0.00375 per share	491,378 ⁽¹⁾	$3.775 ⁽¹⁾	$1,854,951.95 ⁽¹⁾	$224.82
Ordinary shares, par value US$0.00375 per share	453,485	$3.48 ⁽²⁾	$1,578,127.8 ⁽²⁾	$191.27
Total	1,500,000 ⁽ ³ ⁾	-	$5,145,576.81	$623.64

(1)	These shares are issuable upon exercise of outstanding options granted under the UTStarcom Holdings Corp. 2006 Equity Incentive Plan (as amended) (the “Plan”), and the proposed maximum offering price per share represents the exercise price of the respective options.

(2)

Estimated solely for the purposes of calculating the registration fee under Rule 457(h) and (c) under the Securities Act, and is based on US$3.48 per share, the average of the high and low prices of ordinary shares, par value US$0.00375 per share, of the registrant (the “Ordinary Shares”), as reported on the NASDAQ Stock Market LLC on November 12, 2018, for the additional Ordinary Shares issuable under the Plan.

(3)

Represents 1,500,000 Ordinary Shares issuable pursuant to awards (including the exercise of any options granted) under the Plan. In addition, pursuant to Rule 416 of the Securities Act of 1933, as amended (the “Securities Act”), this registration statement will also cover any additional Ordinary Shares which become issuable under the Plan by reason of any share dividend, share split, recapitalization or similar transaction effected.

REGISTRATION OF ADDITIONAL SHARES PURSUANT TO GENERAL INSTRUCTION E

Pursuant to General Instruction E of Form S-8, the Company is filing this Registration Statement with the Securities and Exchange Commission (the “Commission”) to register an additional 1,500,000 Ordinary Shares for issuance under the UTStarcom Holdings Corp. (the “Registrant”) 2006 Equity Incentive Plan (as amended). This Registration Statement hereby incorporates by reference the contents of the Registrant’s registration statements on Form S-8 filed with the Commission on August 11, 2006 (File No. 333-136551) and on August 31, 2009 (File No. 333-161639), as amended.

PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT

Item 3.

Incorporation of Documents by Reference

The following documents filed by the Registrant with the Commission are incorporated by reference herein:

(a) The Registrant’s annual report on Form 20-F (File No. 001-35216) for the fiscal year ended December 31, 2017 filed with the Commission on April 16, 2018;

(b) All other reports filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) since the end of the fiscal year covered by the Registrant’s Annual Report referred to in (a) above; and

(c) The description of the Registrant’s Ordinary Shares as set forth in the Registrant’s Registration Statement on Form 8-A, filed with the Commission on February 23, 2000, as amended.

All documents filed by the Registrant pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, subsequent to the effective date of this Registration Statement, prior to the filing of a post-effective amendment to this Registration Statement indicating that all securities offered hereby have been sold or deregistering all securities then remaining unsold, shall be deemed to be incorporated by reference herein and to be part hereof from the date of filing of such documents. Any statement contained herein or in any document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Registration Statement to the extent that a statement contained herein or in any other subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed to constitute a part of this Registration Statement, except as so modified or superseded.

Item 8.

Exhibits

See Exhibit Index.

UTSTARCOM HOLDINGS CORP.

EXHIBIT INDEX

Exhibit Number		Description of Exhibit

4.1		UTStarcom Holdings Corp. 2006 Equity Incentive Plan (as amended)

5.1		Opinion of Maples and Calder

23.1		Consent of Grant Thornton

23.2		Consent of Maples and Calder (included in Exhibit 5.1)

24.1		Power of Attorney (included on signature page hereto)

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Hong Kong, China, on November 15, 2018.

	UTSTARCOM HOLDINGS CORP.

	By:	/s/ Tenling Ti
		Name: Tenling Ti
		Title: Chief Executive Officer

POWER OF ATTORNEY

Each person whose signature appears below hereby authorizes and appoints Tenling Ti and Eric Lam, with full power to act alone, as his or her true and lawful attorney-in-fact, with the power of substitution, for and in such person’s name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this registration statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact full power and authority to do and perform each and every act and thing requisite and necessary to be done as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorney-in-fact may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement has been signed by the following persons in the capacities and on the date indicated.


Signature	Title	Date

/s/ Himanshu H. Shah	Chairman, Director	November 15, 2018
Himanshu H. Shah

/s/ Tenling Ti	Chief Executive Officer, Director (principal executive officer)	November 15, 2018
Tenling Ti

/s/ Eric Lam	Vice President of Finance	November 15, 2018
Eric Lam	(principal financial and accounting officer)

/s/ Wendong Zhang	Independent Director	November 15, 2018
Wendong Zhang

/s/ Sean Shao	Independent Director	November 15, 2018
Sean Shao

/s/ Hong Liang Lu	Independent Director	November 15, 2018
Hong Liang Lu

/s/ Shek Yuen Ting	Authorized Representative in the United States	November 15, 2018
Name: Shek Yuen Ting
Title: Assistant Secretary Cogency Global Inc.

Exhibit 4.1

UT S TA R COM H O LDI N G S CO R P .

2006 EQUI T Y I N CENTIVE P LAN

(As Ass u m e d a n d A m en d e d on Ja nu a r y 21, 2016)

1. P u r poses of the P l a n . T h e pur p oses of th i s P lan a r e :

•

to attract and retain the best available personnel for positions of substantial responsibility,

•

to provide incentives to individuals who perform services to the Company, and

•

to promote the success of the Company’s business.

The P lan p e rmits the g ra nt of I n ce nt i ve S tock O p t i ons, Nonsta t uto r y S to c k Options, R e strict e d S tock, R e strict e d S tock Units, S t o c k App r e c iation Ri g h ts, P e r f o r man c e Units, P e r f o r man c e S h a r e s and other sha re s o r c a sh a w ar ds as the Admin i str a tor m a y d e te r m i n e .

2. D e finit i on s . As us e d h e r e in, t he f ol l owing d e finit i ons will a pp l y :

( a ) “ Admin i str a to r ” me a ns the B o a rd or a n y of i t s C o m m i t te e s a s will be a dm i nis t e ring the P l a n, i n acc o r d a n c e with S ec t i on 4 of the P lan.

(b) “ Affiliate ” means any corporation or any other entity (including, but not limited to, partnerships and joint ventures) controlling, controlled by, or under common control with the Company.

(c) “ Annual Revenue ” means the Company’s or a business unit’s net sales for the Performance Period, determined in accordance with generally accepted accounting principles; provided, however, that prior to the Performance Period, the Administrator shall determine whether any significant item(s) shall be excluded or included from the calculation of Annual Revenue with respect to one or more Participants.

(d) “ Applicable Laws ” means the requirements relating to the administration of equity-based awards under Cayman Islands laws, U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan.

(e) “ Award ” means, individually or collectively, a grant under the Plan of Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance Units, Performance Shares and other shares or cash awards as the Administrator may determine.

(f) “ Award Agreement ” means the wri t ten or electronic a g r eement set t ing f orth the terms and provis i ons appl i cable to each A w ard g r a nted und e r the P lan. The Award A g r eement is subject t o the terms and c ondi t ions of the P lan.

(g) “ Board ” m e a ns the B o a r d of D ir ec tors o f the C o mpa n y .

(h) “ Cash Collections ” me a ns the ac tual ca sh o r other f r e e l y n e g ot ia ble c onsid e r a t i on, in a n y c u r r e n c y , r e c e ived in s a t i sf a c t i on of a cc ounts r ece i v a ble c r ea ted b y t h e s a l e of a n y Compa n y p rodu c ts o r s e rvi ce s.

(i) “ Change in Control ” me a ns the o cc u r r e n c e of a n y of the f ol l owing e v e nts:

(i) A c h a n ge in the ow n e r s hip of the Compa n y wh i c h o c c u r s on the d a te that a n y o ne p e rson, or more th a n one p e rson ac t i n g a s a g r oup, ( “ P e rso n ” ) ac quir e s own e rship of the sha re s o f the Compa n y t h a t, togeth e r with the sh a r e s h e ld b y such P e rson, c onsti t utes more than fi f t y p e r c e nt (5 0 % ) of the to t a l vot i ng pow e r of the s h a r e s of the Compa n y ; p rovid e d, how e v e r, that for purp o s e s of th i s subse c t ion (i ) , the ac quis i t i on of a ddi t ional sha re s b y a n y o n e P e rson, w h o is c onsid e r e d to own more than fi f t y p e rc e nt (50 % ) of the to t a l vot i ng p ow e r of the sha re s of the Compa n y will not be c o n side re d a Ch a n ge in C ontrol; or

(ii) A c h a n ge in the e f f e c t i ve c ontrol of the Compa n y whi c h o c c u r s on t h e d a te that a majo r i t y of memb e rs of the B o a rd is r e pla c e d duri n g a n y t w e lve (12) mon t h p e riod b y Dir e c tors who s e a ppoin t ment or e le c t i on is not e ndors e d b y a majo r i t y o f the memb e r s of the B o a rd p r ior to the d a te of the a ppoin t ment or e le c t i on. F or purp o s e s of th i s c l a use (ii), if a n y P e rson is c onsid e r e d to e f f e c t i v e l y c ontrol the Compa n y , the ac quis i t i on of a ddi t io n a l c ontrol of the C o mpany b y the s a m e P e rson w i l l not be c onsid e r e d a Ch a n g e in C ontrol; or

(iii) A c h a n ge in t h e ow n e r s hip of a subs t a nt i a l port i on of the Compa n y ’s a ssets whi c h o cc u r s on t he d a te that a n y Pe rson ac quir e s (or h a s a c quir e d during the t w e lve (1 2 ) mon t h p e riod e nding on the d a te of the most re ce nt ac quis i t i on b y such p e rson or p e rsons) a ss e ts f r om the Compa n y t h a t h a ve a to t a l g ross f a ir ma r k e t v a lue e q u a l to or mo r e than fi f t y p e r ce nt (5 0% ) of the to t a l g ross f a ir m a rk e t v a l u e of a ll of the a ssets of the Compa n y i m m e diat e l y p rior to su c h ac quis i t i on or a cquis i t i ons; p r ovided, how e v e r , that for purp o s e s of th i s subse c t i on ( i i i ), t he following will not c onst i tu t e a c h a nge in the own e rship of a subs t a nt i a l portion of the Compa n y ’ s a ssets: ( A ) a tr a ns f e r to a n e nt i t y that is c ontroll e d b y the Compa n y ’ s sha re h o lde r s i m medi a te l y a ft e r the tr a nsf e r, or ( B ) a t r a nsf e r of a s s e ts b y the Compa n y to: (1) a sha r e holder of the Compa n y (imm e diat e l y b e fo r e the a sset tr a ns f e r) in e x c h a n g e for o r with r e s p ec t to the Compa n y ’s sha r e s, ( 2) a n e nt i t y , fi f t y p e r ce nt ( 5 0%) or mo r e of the to t a l v a lue or vot i ng pow e r of whi c h is own e d, dir ec t l y or ind i r e c t l y , b y the C o mpa n y , (3) a P e rson, th a t owns, dir ec t l y or ind i re c t l y , fi f t y p e rc e nt (50 % ) or more of the to t a l v a lue or vot i ng pow e r o f a ll the o uts t a nding sha r e s of the Compa n y , or ( 4 ) a n e nt i t y , a t le a st fi f t y p e r ce nt ( 5 0%) of the to t a l v a lue or vot i ng pow e r of wh i c h is own e d, dir ec t l y o r ind i r e c t l y , b y a Pe rson d e s c rib e d in th i s subs e c t i on (iii)(B ) (3 ) . F o r purp o s e s of th i s subse c t i on (iii), g ross f a ir ma r k e t v a l u e me a ns the v a lue of the a ssets of the Compa n y , or the v a lue of t h e a s s e ts b e ing dispos e d o f, d e te r m i n e d without re g a rd to a n y l i a bi l i t ies a ssoci a t e d with su c h a ssets.

For purposes of th i s S ect i on 2(i), P ersons will be consider e d to be act i n g a s a g roup if th e y a r e ow n ers o f a c o r por a t i on that enters in t o a m e r ger, consolidation, pur c hase or acquis i t i on o f shares, or sim i lar busine s s transa c t i on with t he Compa n y .

Notwithstanding the f o re g oi n g p r ovis i ons of th i s d e finit i on, a tr a ns a c t i on shall not be d ee med a Ch a n g e in Control unless the tr a n s ac t i on qu a l i fi e s a s a c h a n g e in c ontrol e v e nt with i n the me a ning o f Code S ec t i on 409A.

(j) “ Code ” m e a ns the I n t e rn a l R e v e n u e Code of 1986, a s a men d e d. A n y r e fer e n c e to a s ec t i on of the Code h e r e in will be a r e fer e n c e to a n y s u c c e ssor or a men d e d s e c t i on of the Code.

(k) “ Committee ” means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board in accordance with Section 4 hereof.

(l) “ Common Stock ” me a ns the ordin a r y sh a r e s of the Compa n y .

(m) “ Company ” me a ns UTSt a r c om Holdi n g s Co r p., a n e x e mp t e d C a y m a n I sl a nds c ompa n y , or a n y s u cce s s or the re to.

(n) “ Consultant ” me a ns a ny p e rson, including a n a dvisor, e n g a g e d b y the

Compa n y or its A f filiat e s to r e nd e r s e rvi ce s to s u c h e nt i t y .

(o) “ Customer Satisfaction MBOs ” m e a ns a s to a n y P a rticip a nt, the obje c t i ve a nd me a su ra ble ind i vidual go a ls s e t b y a “ ma n a g e ment b y obj e c t i v e s” p r o ce ss a nd a ppro ve d b y t he Admin i str a tor, w hich g o a ls r e late to t he satis f ac t i on of e x te r n a l or int e rn a l c usto m e r re qui r e ments.

(p) “ Determination Date ” me a ns the la t e st poss i ble d a te that will not j e op ar di z e the qu a l i fi ca t i on o f a n A w a rd g ra nted un d e r t h e P lan a s “ p e r f o r m a n c e - b a s e d c ompen s a t i on” und e r S ec t i on 162 ( m) of the C o d e .

(q) “ Director ” m e a ns a m e m b e r of the B o a rd.

(r) “ Disability ” means t otal and p e rmanent disabili t y as d efin e d in S ect i on 22( e )( 3 ) of the C ode, provided that in the case of Aw a rds other th a n I n cent i ve S tock Optio n s, the Admin i strator in i t s discret i on m a y d eterm i n e whet h er a p ermanent a nd to t al disabili t y e x is t s in accor d an c e with uniform and no n -discri m inato r y standards adopted b y the Admin i strator from t i me to t i m e.

(s) “ Earnings Per Share ” m ea ns a s to a n y P e r f o rm a n c e P e riod, the Compa n y ’ s N e t I n c o m e or a busin e s s uni t ’s P ro F o r ma N e t In c ome, div i d e d b y a w e i g hted a v e ra g e number o f S h a r e s outstanding a nd d i l ut i ve c om m on e quival e nt S h a r e s d ee med outst a n din g .

(t) “ Employee ” me a ns a n y p e rson, includi n g O f f i c e rs a nd Dire c tors, e mp l o y e d b y t h e Compa n y or i t s A f filiat e s. N e i t h e r s e rvi c e a s a Dire c tor nor p a y me n t of a dir ec t o r ’ s f e e b y t h e Compa n y will be suf f i c i e nt t o c onsti t ute “e mp l o y ment” b y t h e Compa n y .

(u) “ Exchange Act ” m ea ns t he S ec u r i t ies E x c h a n g e A c t of 1934, a s a m e nd e d.

(v) “ Fair Market Value ” m e a ns, a s of a n y d a te, the v a l ue of Com m on S tock a s t he Admin i str a tor m a y d e t e rmine in g ood f a i t h b y r e fer e n c e to the p r ice of such sha re s on a n y e stabl i shed stock e x c h a n g e o r a n a t i on a l ma r k e t s y s tem on the d a y of d e t e rmin a t i on if the Com m on S tock is so l i sted on a n y e stablished stock e x c h a n g e or a n a t i on a l m a rk e t s y stem. I f the Com m on S tock is not l i sted on a ny e stablished stock e x c h a nge or a n a t i on a l m a rket s y stem, the v a lue of t h e Com m on S tock w i l l be d e te r m i n e d b y the A dm i n i str a tor in g ood f a i t h.

( w ) “ Fiscal Year ” m e a ns the fis ca l y e a r of the Comp a n y .

( x ) “ Incentive Stock Option ” me a ns a n Option that b y i t s te r ms q u a l i fi e s a n d is othe r wise in t e nd e d to qu a l if y a s a n inc e nt i ve sto c k opt i on wit h in the me a n ing of S ec t i on 422 of the Code a nd the r e g u l a t i ons promul g a ted t h e r e un d e r.

( y ) “ Net Income ” me a ns a s to a n y P e rfo r ma n c e P e ri o d, the income a ft e r ta x e s of the Compa n y d e te r min e d in acc o rd a nce with g e n er a l l y a c ce pted acc o unting p r i n c ipl e s, p r ovided t h a t p r ior to the P e r f o r man c e P e riod, the Admini s tr a tor shall d e te r mine wh e ther a n y s i g nific a nt it e m(s) shall be includ e d o r e x c luded f r om t h e c a lculation of N e t I n c ome wi t h r e spe c t to one o r m o re p a rticip a nts.

(z) “ N e w O rd e r s ” me a ns a s to a n y P e r f o r m a n c e Pe riod, the fi r m o r d e rs f o r a s y stem, p r od u c t, p a rt, or s e rvi c e that a r e b e i ng r ec o r d e d f o r the fi r st t i me a s d e fin e d in t he Compa n y ’s o r d e r r ec o g n i t i on pol ic y .

( a a ) “ Nonstatutory Stock Option ” me a ns a n Option that b y i t s te r ms do e s not qu a l if y o r is not i ntend e d to quali f y a s a n I n c e nt i ve S tock O pt i on.

(bb) “ Officer ” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

(cc) “ Operating Profit ” means as to any Performance Period, the difference between revenue and related costs and expenses, excluding income derived from sources other than regular activities and before income deductions.

(dd) “ Option ” means a stock option granted pursuant to the Plan.

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

(ff) “ Participant ” means the holder of an outstanding Award.

(gg) “ Performance Goals ” will have the meaning set forth in Section 11 of the Plan.

(hh) “ Performance Period ” means any Fiscal Year of the Company or such other period as determined by the Administrator in its sole discretion.

(ii) “ Performance Share ” means an Award denominated in Shares which may be earned in whole or in part upon attainment of Performance Goals or other vesting criteria as the Administrator may determine pursuant to Section 10.

(jj) “ Performance Unit ” means an Award which may be earned in whole or in part upon attainment of Performance Goals or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities or a combination of the foregoing pursuant to Section 10.

(kk) “ Period of Restriction ” means the period during which the transfer of Shares of Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator.

(ll) “ Plan ” me a ns this 2 0 06 Equi t y I n ce nt i ve P lan.

(mm) “ Pro Forma Net Income” means as to any business unit for any Performance Period, the Net Income of such business unit, minus allocations of designated corporate expenses.

(nn) “ Product Shipments ” means as to any Performance Period, the quantitative and measurable number of units of a particular product that shipped during such Performance Period.

(oo) “ Restricted Stock ” means Shares issued pursuant to an Award of Restricted Stock under Section 8 of the Plan, or issued pursuant to the early exercise of an Option.

(pp) “ Restricted Stock Unit ” means a bookkeeping entry representing an amount equal to the Fair Market Value of one Share, granted pursuant to Section 9. Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.

(qq) “ Return on Designated Assets ” means as to any Performance Period, the Pro Forma Net Income of a business unit, divided by the average of beginning and ending business unit designated assets, or Net Income of the Company, divided by the average of beginning and ending designated corporate assets.

(rr) “ Return on Equity ” means, as to any Performance Period, the percentage equal to the value of the Company’s or any business unit’s common stock investments at the end of such Performance Period, divided by the value of such common stock investments at the start of such Performance Period, excluding any common stock investments so designated by the Administrator.

(ss) “ Return on Sales ” means as to any Performance Period, the percentage equal to the Company’s Net Income or the business unit’s Pro Forma Net Income, divided by the Company’s or the business unit’s Annual Revenue.

(tt) “ Rule 16b-3 ” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan.

(uu) “ Section 16(b) ” means Section 16(b) of the Exchange Act.

(vv) “ Service Provider ” means an Employee, Director or Consultant.

(ww) “ Share ” means a share of the Common Stock, as adjusted in accordance with Section 14 of the Plan.

(xx) “ Stock Appreciation Right ” means an Award, granted alone or in connection with an Option, that pursuant to Section 7 is designated as a Stock Appreciation Right.

(yy) “ Subsidiary ” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code.

(zz) “ Successor Corporation ” has the meaning given to such term in Section 14(c) of the Plan.

3. S h a r e s S ubje c t to the P lan .

( a ) S h a r e s S ubje c t to the P l a n . S u b je c t to the p r ovis i ons of S ec t i on 14 of the P lan, the ma x i m um a g g r e g a t e number of S h a r e s that m a y be a w a r d e d a nd sold u nd e r the P lan is 6,000,0 0 0 S h a r e s plus (i) a n y S h a r e s that, a s of J u l y 21, 2 0 06, h a ve b ee n r e s e r v e d but not is s u e d pursu a nt t o a n y aw a rds g ra nted un d e r UTSt a r c om, I n c . ’s 19 9 7 S tock P lan (the “ 1997 P lan ” ), UTSt a r c om, I n c . ’ s Am e nd e d 2001 Dire c tor Option P lan (the “ 2001 P lan ” ), a nd UTSt a r c om, I n c . ’ s 2003 No n - S tatuto r y S tock Option P lan (the “ 2003 P lan ” ), eac h a s a s s umed a nd a mend e d b y the Compa n y , a nd a re n o t subj ec t to a n y a w a rds g ra nted th e r e und e r, a nd ( i i ) a n y S h a r e s subj ec t to stock opt i ons or si m i l a r a w a rds g ra nted un d e r t h e 1997 P lan, the 2001 P lan, a nd the 2003 P lan that e x pire or othe r wi s e te r m i n a te without h a ving b ee n e x e r c ised in full a nd S h a r e s is s u e d pursu a n t to a w a rds g ra nted und e r the 1997 P lan, the 2001 P lan, a nd the 2003 P lan t h a t a re fo r f e i t e d to or r e pur c h a s e d b y t h e Compan y . The S h a r e s m a y b e a uth o ri z e d, but un i ssued, or r e ac quir e d Co m mon S tock.

(b) L a p s e d A wa rd s . I f a n A w a rd e x pir e s or b e c omes un e x e r c isable wi t hout h a ving b e e n e x e r c ised in full, o r , with r e spe c t to R e strict e d S tock, R e strict e d S tock Uni t s, P e r f o r man c e S h a r e s or P e r f o r man c e Units, is fo r f e i t e d to or r e pur c h a s e d b y the Compa n y , t h e unpu rc h a s e d S h a r e s (or f or A w a rds other t h a n O p t i ons a nd S tock App r e c iation Ri g hts, the f o r fe i te d or r e purch a s e d S h a r e s) whi c h w e r e subj ec t the r e to will b ec ome a v a i l a b le for futu r e g r a nt or s a le und e r the P lan (unl e ss the P lan h a s te r m i n a ted ) . W i th r e spe c t to S tock App rec iation Ri g hts, a ll of the S h a r e s c o v e r e d b y the A w a rd (th a t is, S h a r e s a c tual l y is s u e d pursu a nt to a S tock App r e c iation Ri g ht, a s w e ll a s the S h a r e s that r e p r e s e nt p a y m e nt of the e x e r c ise p r i c e ) will cea se to be a v a i l a b l e und e r the P lan. Ho we v e r, S h a r e s that h a v e a c t u a l l y b e e n is s u e d und e r t he P lan und e r a n y A w ar d will not be r e turn e d to the P lan a nd will not b ec ome a v a i l a ble for fut u re d is t ribution und e r the P l a n; p r ovided, how e v e r, t h a t i f unv e sted S h a r e s o f R e s trict e d S tock, R e strict e d S tock Units, P e r f o r ma n c e S h a r e s or P e r f o r m a n c e U ni t s a re r e pu r c h a s e d b y t he Compa n y or a r e f o r fe i ted to the Compa n y , s u c h S h a r e s will b ec o m e a v a i l a ble f or f uture g r a nt un d e r the P lan. Sh a r e s used to p a y the t a x a nd e x e r c i s e p r ice of a n A w a rd will n ot b ec ome a v a i l a ble for f uture g r a nt or s a le und e r the P lan. To the e x tent a n A wa rd und e r the P lan is p a id out in ca sh r a ther than S h a r e s, such ca sh p a y m e nt will not r e sult i n r e du c i n g the number of S h a r e s a v a i l a ble for is s u a n c e und e r the P lan. Notwithstanding the fo re g oi n g a nd, subj ec t to a djus t m e nt p r ovided in S ec t i on 14, the m a x i m um num b e r of S h a r e s that m a y b e is s u e d upon the e x e r c ise of I n c e nt i ve S tock Opti o ns will e qu a l the a g g reg a te S h a re num b e r stat e d in S ec t i on 3 (a ), plus, to the e x tent a l l ow a ble und e r S ec t i on 422 of the Cod e , a n y S h a r e s that b ec ome a v a i l a ble f o r issu a n c e u n d e r the P lan und e r this S ec t i on 3 ( b ) .

4. Admin i str a t i on of the P l a n .

( a ) P ro c e dur e .

(i) Mult i ple Admin i str a t i ve B odie s . Dif f e r e nt Com m i t te e s with r e spe c t to dif fe r e nt g r oups of Se r v i c e P rovid e rs m a y a dm i nis t e r the P lan.

(ii) S ec t i on 162(m ) . To t h e e x tent that the Admin i str a tor d e t e rmin e s it to be d e sir a ble to qu a l i f y A w a rds g r a n t e d h e r e und e r a s “ p e r fo r man c e - b a s e d c ompens a t i on” with i n the me a ning o f S ec t i on 162 ( m) of the Cod e , the P lan will be a dm i nis t e r e d by a Com m i t tee of t wo or more “ outs i de dir e c tors” with i n the m ea ning of S e c t i on 162(m) of the Cod e .

(iii) Rule 16b - 3 . To the e x t e nt d e sir a ble to qu a l if y t r a nsa c t i ons h e r e un d e r a s e x e mpt und e r Rule 1 6 b - 3, the tr a n s ac t i ons c o ntemplat e d h e r e und e r w i ll be stru c tur e d to s a t i s f y the re quir e m e nts for e x e mp t ion under Rule 16 b - 3.

(iv) Oth e r Admin i str a t i o n . Oth e r than a s p r ovided a b ov e , the P lan will be a dm i nis t e r e d b y ( A ) the B o a rd o r ( B ) a Com m i t te e , whi c h c om m i t tee wi l l be c onsti t uted to s a t i sfy Applic a ble L a ws.

(b) P ow e rs of the Admin i str a to r . S ubje c t to the p ro v is i ons of the P lan, a nd in the ca se of a Com m i t te e , s u bje c t to the spe c if i c dut i e s d e l e g a t e d b y the B o a r d to such Com m i t te e , the Admin i str a tor w i l l have the a uthori t y , in i ts d i s c r e t i on:

(i) to det e rmine the Fair M a rk e t V a lue;

(ii) to select the Service Providers to whom Awards may be granted hereunder;

(iii) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder;

(iv) to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan;

(v) to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws;

(vi) to modify or amend each Award (subject to Section 19(c) of the Plan). Notwithstanding the previous sentence, the Administrator may not modify or amend an Option or Stock Appreciation Right to reduce the exercise price of such Option or Stock Appreciation Right after it has been granted (except for adjustments made pursuant to Section 14), and neither may the Administrator cancel any outstanding Option or Stock Appreciation Right and immediately replace it with a new Option or Stock Appreciation Right with a lower exercise price;

(vii) to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator;

(viii) to allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant under an Award pursuant to such procedures as the Administrator may determine; and

(ix) to make all other determinations deemed necessary or advisable for administering the Plan.

( c ) E f f e c t of Administr a to r ’s D e c is i o n . The Admin i str a tor ’ s d ec is i ons, d e te r m i n a t i ons a nd in t e r p re tations will be fin a l a nd bind i ng on a ll P a rticip a nts a nd a n y ot h e r hol d e rs of A wa rds.

5. Eligibility . Nonstatuto r y S t o c k Options, R e strict e d S tock, R e strict e d S tock Units, S tock App rec iation Righ t s, P e r f o r man c e Units, P e r f o r man c e S h a r e s a nd such other ca sh or s h a r e a w a rds a s the Admin i str a tor d e t e rmin e s m a y b e g ra nted to S e rvi c e P rovid e rs. I n ce nt i ve S to c k Options m a y b e g r a nted on l y to e mp l o y e e s of t he Compa n y or a n y Par e nt or S ubsidia r y of the Compa n y .

6. S tock O pt i on s .

( a ) L im i tation s . E a c h Opt i on will be d e s i g n a t e d i n the A w a rd A g ree m e n t a s e i t h e r a n I n ce nt i ve S to c k Option or a Nonstatu t o r y S tock Option. Ho we v e r, notwi t hstanding s u c h d e si g n a t i on, to the e x tent that the a g g re g a te Fa ir Ma r k e t V a lue of t h e S h a r e s with r e s p ec t to wh i c h I n ce nt i ve S tock Options a re e x e r c isable for the fi r st t i me b y the P a rticip a nt during a n y c a lend a r y ea r (und e r a ll plans of the Compa n y a nd a n y P a r e nt or S ubsidia r y ) e x cee ds $ 100,000, such Options w i l l be tr ea ted a s Nonstatuto r y S tock Options. F or pu r poses of th i s S ec t i on 6 (a ), I n c e nt i ve S tock Options will be tak e n in t o acc o u nt in the o r d e r in whi c h th e y w e re g r a nted. The Fa ir M a rk e t V a lue o f the S h a r e s will be d e te r m i n e d a s of the t i me the Opti o n with r e spe c t t o su c h S h a r e s is g r a n t e d.

(b) Numb e r of S h a r e s . Admin i str a tor will h a ve c omp l e te disc r e t i on to d e te r m i ne the number of Options g r a nted to a n y P a rticip a nt, p r ovided th a t during a n y F is c a l Y e ar , no P a rticip a nt will be g r a nted Options c ov e ri n g more than 1,000,000 S h a r e s. Notwithstandi n g t he f o r e g oi n g l i m i tation, in c onn ec t i on with a P a rtici p a nt’s in i t i a l s e rvi c e a s a n Empl o y e e , a n Empl o y e e m a y b e g r a nted Options c ov e ri n g up to an a ddi t i o n a l 2,000,000 S h a r e s.

( c ) T e rm of Optio n . The Admin i str a tor will d e te r m i n e the te r m of eac h Opti o n in i t s sole disc re t i on. A n y Option g r a nted und e r t h e P lan will not be e x e r c isable a ft e r t h e e x pir a t i on of s e v e n ( 7 ) y e a rs f r om t h e d a te of g r a nt or s u c h short e r te r m a s m a y b e p r ovided in the A w ar d Ag ree ment. Mor e o v e r, in the ca se of a n I n ce nt i v e S tock Option g r a nt e d to a P a rticip a nt who, a t t h e t i me the I n ce nt i ve S tock Option is g r a nted, owns sha re s r e p r e s e nt i n g more than ten p e r c e nt (10 % ) of the to t a l c omb i n e d vot i ng po w e r of a ll c lass e s of sha re s of the Compa n y o r a n y P a r e nt o r S ubsidia r y , the te r m of t h e I n ce nt i ve S tock Option will be f i ve (5) y ea rs f r om t h e d a t e of g r a nt or s u c h short e r te r m as m a y be pro v i d e d in t he A wa rd A g ree m e nt.

(d) Option Exercise Price and Consideration.

(i) E x e r c ise Pric e . T h e p e r s h a re e x e r c ise p r i c e f or the Sha re s to be is s u e d pursu a nt to e x e r c ise of a n Option will be d e te r m i n e d b y the Admin i str a tor, but will be no less than 100% of the F a ir Ma r k e t V a lue p e r S h a re on t he d a te of g r a n t . I n a d di t ion, i n the ca se of a n I n ce nt i ve S tock Option g r a nted to a n Empl o y e e who, a t the t i me the In c e nt i ve S tock Option is g r a nted, o wns sha r e s r e p r e s e nt i n g more than ten p e r c e nt (10 % ) of the vot i ng p o w e r of a ll c las s e s o f sha re s o f the Compa n y o r a n y Pa r e nt or S ubsidia r y , the p e r S h a r e e x e r c i s e p r ice will be no less t h a n 110% of the F a ir Ma r k e t V a lue p e r S h a re on t he d a te of g r a nt. Not w i t hstanding the fo re g oing p r ovis i ons of th i s S ec t i o n 6 (c ), Options m a y be g r a nted with a p e r S h a re e x e r c ise p r ice o f less than 100% of the Fa ir Ma r k e t V a lue p e r S h a re on the d a te of g ra nt pursu a nt to a tr a nsa c t i on d e s c rib e d in, a nd in a mann e r c onsist e nt with, S ec t i on 424( a ) o f the Cod e . T he Admin i str a tor m a y not mod if y o r a mend a n Option to r e d u c e the e x e r c ise p r i c e of such Option a ft e r it h a s b ee n g r a nted ( e x c e pt f o r a djus t ments made purs u a nt to S ec t i on 14 of the P lan) nor m a y the A dm i nis t r a tor ca n ce l a n y outs t a nding Option a nd r e pla c e it with a n e w Optio n , S tock App rec iation R i g ht, or other A wa rd with a low e r e x e r c ise p ri ce , u nless, in e i t h e r c a s e , s u c h ac t i on is a ppro v e d b y t h e Compa n y ’ s sh a r e hold e rs.

(ii) Waiting Period and Exercise Dates . At the t i me a n Option is g ra nted, the Admin i str a tor will fix the p e riod with i n whi c h the Option m a y be exe r c ised a nd will d e te r m in e an y c ondi t ions t h a t m ust be s a t i sfi e d b e f o re the O pt i on m a y be exe r c ised.

(iii) Form of Consideration . The Administrator will determine the acceptable form(s) of consideration for exercising an Option, including the method of payment, to the extent permitted by Applicable Laws.

( e ) E x e r c ise of Optio n .

(i) P r o ce dure for E x e r c ise; Ri g hts a s a S h a r e hol d e r . A n y Option g r a n t e d h e r e und e r will be e x e r c i s a ble a c c o r di n g to the t e rms of the P lan a nd a t s u c h t i mes a nd und e r s u c h c ondi t ions a s d e te r m i n e d b y the Admin i str a tor a n d s e t fo r th in the A w a rd Ag ree m e nt. An Op t ion m a y not be e x e r c ised f o r a f ra c t i on of a S h a r e .

An Option will be d e e med e x e r c ised wh e n the Compa n y re ce ives: (i) not i c e o f e x e r c i s e (in such fo r m a s t h e Admin i str a tor sp e c i f y f r om t i me to t i me) f r om the p e rs o n e nt i t l e d to e x e r c ise the O pt i on a nd (ii) full p a y m e nt for the S h a r e s with respe c t to whi c h the O pt i on is e x e r c ised (t o g e th e r with a n a ppl i ca b l e w i t h hold i ng ta x e s). Until t he S h a r e s a r e is s u e d (a s e viden ce d b y the a ppro p ri a te e nt r y on the re g is te r of mem b e rs of the C o mpa n y ), no r i g ht to vo t e or rece i v e div i d e nds or a n y ot h e r r i g hts a s a s h a r e holder shall e x ist with r e sp e c t to t h e S h a r e s , notwi t hstanding the e x e r c ise of the O pt i on. No a djus t ment will be made f or a div i d e nd or other right for whi c h t h e re c o r d d a te is p r ior to the d a te the S h a r e s a r e is s u e d, e x ce pt a s p r ovided in S ec t i on 1 4 of the P l a n.

(ii) Termination of Relationship as a Service Provider . If a Participant ceases to be a Service Provider, other than upon the Participant’s termination as the result of the Participant’s death or Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for three (3) months following the Participant’s termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant does not exercise his or her Option within the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

(iii) Disability of Participant . If a Participant ceases to be a Service Provider as a result of the Participant’s Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following the Participant’s termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

(iv) Death of Participant . I f a Pa rticip a nt dies while a Se rvi c e P rovid e r, the Option m a y b e exe r c ised following the Pa rticip a nt’s d ea th with i n such p e riod of t i me a s is spe c ified in the A wa rd Ag reeme nt to the ex tent that the Option is v e sted on the d a te of d ea th (but in no e v e nt m a y the opt i on be exe r ci s e d lat e r than t h e ex pir a t i on of the te r m of s uc h Option a s s e t fo r th in t h e A wa rd Agree ment ) , b y t he Pa rticip a nt’s d e s ig n ate d b ene fi c i ary , p r ovi de d such b ene fi c ia r y h a s b ee n d e si g n ate d p r ior to Pa r t icip a nt’s d ea th in a f or m acce p ta ble to the A d m i nis t r a tor. I f no such b e n e fi c i ar y h a s b ee n d e si g n a ted b y the Pa rticip a nt, then such Option m a y be exe r c ised b y t h e p e rson a l r ep r e s e n ta t i ve of the Pa rticip a nt’s e s ta te or b y t h e p e rson (s ) to whom the Option i s tr a nsf er r e d pursu a nt to the Pa rtici pa nt’s will or in acc o rda n c e with the la w s o f de s ce nt an d dis t ribution. I n the a bs e n c e of a spe c ified t i me in the A wa rd Ag reeme nt, the Option w i ll r e main exe r c isable f o r tw e l v e ( 1 2) mon t hs following Pa r t icip a nt’s d ea th. Unl e ss othe r wise p r ovi de d b y t h e Admin i str a tor, if a t the t i me of d ea th Pa rticip an t is not v e sted a s to his or h e r e nt i re Option, t h e S h a r e s c o vere d b y t h e u nv e sted portion o f the O pt i on will i m medi a te l y re v e rt to the P lan. I f the Option is not so exe r c ised with i n the t i me spe c if ie d h e r e in, the Option will te r m i n a te, a nd the S h a r e s c ov e r e d b y s uc h Option will re v e rt to the P lan.

(v) Other Termination . A Participant’s Award Agreement may also provide that if the exercise of the Option following the termination of Participant’s status as a Service Provider (other than upon the Participant’s death or Disability) would result in liability under Section 16(b), then the Option will terminate on the earlier of (A) the expiration of the term of the Option set forth in the Award Agreement, or (B) the 10th day after the last date on which such exercise would result in such liability under Section 16(b). Finally, a Participant’s Award Agreement may also provide that if the exercise of the Option following the termination of the Participant’s status as a Service Provider (other than upon the Participant’s death or disability) would be prohibited at any time solely because the issuance of Shares would violate the registration requirements under the Securities Act, then the Option will terminate on the earlier of (A) the expiration of the term of the Option, or (B) the expiration of a period of three (3) months after the termination of the Participant’s status as a Service Provider during which the exercise of the Option would not be in violation of such registration requirements.

7. S tock A ppr e c iation R i g h t s .

( a ) G ra nt of S tock Ap p r e c i a t i on Ri g ht s . S ubje c t to the te r ms a nd c ondi t ions of the P lan, a S tock App rec iation Ri g ht m a y b e g ra n ted to S e rvi c e P rovid e rs a t a n y t i me a nd f r om t i me to t i m e a s will be d e t e rmin e d b y t h e Admin i str a to r , in i ts s ole dis c r e t i on.

(b) Number of Shares . The Administrator will have complete discretion to determine the number of Stock Appreciation Rights granted to any Participant, provided that during any Fiscal Year, no Participant will be granted Stock Appreciation Rights covering more than 1,000,000 Shares. Notwithstanding the foregoing limitation, in connection with a Participant’s initial service as an Employee, an Employee may be granted Stock Appreciation Rights covering up to an additional 2,000,000 Shares.

( c ) Exercise Price and Other Terms . The Admin i str a tor, subj ec t to the p r ovis i ons of the P lan, will h a ve c omp le te disc re t i on to d e te r m i ne the te r ms a nd c ondi t ions of S to c k App rec iation Ri g hts gra nted und e r the P lan, p r ovided, how e v e r, that the exe r c ise p r ice will be not less than 100% o f the Fa ir Ma rke t V a l u e of a S h ar e on the d a te o f gra nt. T he Admin i st ra tor m a y n o t mod if y or a mend a S tock App rec iation Ri g ht to r e du c e the exe r c ise p r ice o f such S tock App rec iation Ri g ht a ft e r it h a s b ee n g ra nted ( exce pt for a djus t ments made pursu a nt to Sec t i on 14 of the P lan) nor m a y t h e Admin i str a tor ca n ce l an y outs ta nding S tock App rec iation Ri g ht a nd r e pl ac e it with a n e w S tock App recia t i on Ri gh t, Option, or other A war d with a low e r exerc ise p ri ce , unless, in e i t h e r case , such ac t i on is a ppro ve d b y the Comp any ’s s ha r e h o lders.

(d) Stock Appreciation Right Agreement . Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will specify the exercise price, the term of the Stock Appreciation Right, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine.

(e) Expiration of Stock Appreciation Rights . A Stock Appreciation Right granted under the Plan will expire upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Section 6(e) also will apply to Stock Appreciation Rights.

(f) Payment of Stock Appreciation Right Amount . Upon exercise of a Stock Appreciation Right, a Participant will be entitled to receive payment from the Company in an amount determined by multiplying:

(i) The dif f e r e n c e b e tw e e n t he F a ir M a rk e t V a lue of a S h a re on the d a te of e x e r c ise ov e r the e x e r c ise p r ic e ; t i m e s

(ii) The number of Shares with respect to which the Stock Appreciation Right is exercised.

At the disc re t i on o f the Admin i str a tor, the p a y m e nt upon S tock App r ec i a t i on Ri g ht e x e r c ise m a y be in c a sh, in S h a r e s of e quival e nt valu e , or in some c omb i n a t ion t h e r e o f .

8. R e strict e d S toc k .

( a ) G ra nt of R e strict e d S toc k . S ubje c t to the t e rms a n d p r ovis i ons of the P lan, the Admin i str a tor, a t a n y t i me a nd f r om t i me to t i m e , m a y g ra nt S h a r e s o f R e strict e d S tock to Se rvi c e P rovid e rs in su c h a moun t s as the Admin i str a to r , in i ts s ole dis c r e t i on, will d e te r m i n e .

(b) Restricted Stock Agreement . Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine. Notwithstanding the foregoing sentence, during any Fiscal Year no Participant will receive more than an aggregate of 300,000 Shares of Restricted Stock; provided, however, that in connection with a Participant’s initial service as an Employee, an Employee may be granted an aggregate of up to an additional 600,000 Shares of Restricted Stock. Unless the Administrator determines otherwise, Shares of Restricted Stock will be entered in the register of members of the Company under the name of the holder of such Shares subject to restrictions applicable to such Shares until the restrictions on such Shares have lapsed.

( c ) Transferability . E xce pt a s p r ovided in th i s Sec t i on 8, S h a r e s of R e stri c ted S tock m a y not be sold, t r a nsf e r re d, ple dge d, a ss ig n e d, or othe r wise a l iena ted or hy pothe ca ted un t il the e nd of the a ppl ica ble Pe riod of R e striction.

(d) Other Restrictions. The Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock as it may deem advisable or appropriate.

(e) Removal of Restrictions . Except as otherwise provided in this Section 8, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction. The Administrator, in its discretion, may accelerate the time at which any restrictions will lapse or be removed.

(f) Voting Rights . During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise.

(g) Dividends and Other Distributions . During the Period of Restriction, Service Providers holding Shares of Restricted Stock will be entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided in the Award Agreement. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid.

(h) Return of Restricted Stock to Company . On the earlier of the Expiration Date set forth in the Award Agreement and Participant’s termination as a Service Provider, the balance of the Shares of Restricted Stock that have not vested at the time of Participant’s termination as a Service Provider for any reason will be forfeited and automatically reacquired by the Company at no cost to the Company upon the date of such termination. Participant will not be entitled to a refund of the price paid for the Shares of Restricted Stock, if any, returned to the Company pursuant to this Section 8.

9. R e strict e d S tock U ni t s .

( a ) G ra n t . R e stric t e d S tock Units m a y b e g r a nted a t a n y t i me a nd f rom t i me to t i me a s d e te r m i n e d b y t h e Admin i str a tor. E a c h R e strict e d S tock Unit g r a n t will be e viden ce d b y a n A wa rd A g r ee ment that will spe c i f y s u c h other te r ms a nd c ondi t ions a s t h e Admin i str a tor, in i ts s o le disc re t i on, will d e te r m i n e , including a ll te r ms, c ondi t ions, a nd r e strictio n s r e lat e d to t h e g r a nt, t h e number of R e strict e d S tock Units a nd the fo r m o f p a y out, whi c h, sub j ec t to S ec t i on 9 ( d ) , m a y b e le f t to the disc re t i on of the Admin i str a tor. Notwith s ta n ding a n y th i n g to the c ontr a r y in th i s subse c t i on ( a ), d u ri n g a n y F is c a l Y ea r of the Compa n y , no P a rticip a nt will re ce ive more than a n a g g reg a te of 300,000 R e strict e d S to c k Units; p r ovided, how e v e r, that in c on n ec t i on with a P a rticip a nt’s in i t i a l s e rvi c e a s a n Empl o y e e , a n Empl o y e e m a y b e g r a nted a n a g g reg a te of up to a n a ddi t ional 600,000 R e strict e d S tock U ni t s.

(b) V e st i ng Crite r ia a nd Ot h e r T e rm s . The Admin i s t r a tor will s e t v e st i ng c rite r ia in i t s d i s c r e t i on, whi c h, d e p e ndi n g on the e x tent to whi c h the c rite r ia a r e met, will d e te r m i ne the number of R e strict e d S tock Units that will be p a id out to the P a rticip a nt. A f ter the g r a nt of R e strict e d S tock Units, the Admin i str a tor, in i t s sole disc re t i on, m a y r e du c e or w a i v e a n y r e strictio n s for such R e strict e d S tock Units. E ac h A wa rd o f R e strict e d S tock Units will be e viden ce d b y a n A wa rd A g re e ment that will spe c i f y the v e st i ng c rite r ia, a nd such other t e rms a nd c ondi t ions a s the Admin i str a tor, in its s ole disc re t i on, will d e te r m i n e .

( c ) E a rni n g R e strict e d S tock Unit s . Upon me e t i n g t h e a ppl ic a ble v e st i ng c rit e ri a , the P a rticip a nt will be e nt i t l e d to r e ce ive a p a y out a s spe c ified i n the A wa rd Ag ree m e nt. Notwithstanding the f o re g oin g , a t a n y t i me a ft e r t h e g r a nt of R e s trict e d S tock Units, t h e Admin i str a tor, in i t s so l e disc r e t i on, m a y r e du c e or w a ive a n y v e st i ng c r i t e ria that must b e met to r e ce i v e a p a y out.

(d) F o r m a nd Tim i ng of Pa y men t . Pa y ment of e a rned R e strict e d S tock Units will be made a s soon a s p r a c t i ca b l e a ft e r t h e d a t e (s) s e t fo r th in the A wa rd A g re e ment. T he Admin i str a tor, in i t s so l e disc re t i on, m a y p a y e a rn e d R e strict e d S tock Units in ca sh, S h a r e s, or a c omb i n a t i on the re o f . S h a r e s r e p r e s e n t e d b y R e s t ri c ted S tock Units that a r e ful l y p a id in ca sh a g a i n will be a v a i l a ble f o r g r a n t under the P l a n.

(e) Cancellation . On the date set forth in the Award Agreement, all unearned Restricted Stock Units will be forfeited to the Company.

10. P e r f o r man c e Units a nd P e r f o r ma n c e S h a r e s .

( a ) G ra nt of Pe r f o r ma n c e Units/ S h a r e s . P e r f o r m a n c e Units a nd Pe r f o r m a n c e S h a r e s m a y b e g ra n t e d to S e rvi c e P rovid e rs a t a n y t i me a nd f r om t i me to t i me, a s will be d e te r m i n e d b y the Admin i str a tor, in i t s sole disc re t i on. T h e Admin i str a tor will h a ve c omp l e te dis c r e t i on in d e te r m i ning the number of P e r f o r man c e Units/ S h a r e s g ra nted to eac h P a rticip a n t p r ovided that during a n y F is c a l Y ea r, ( a ) no P a rticip a nt will r ece ive P e r fo r man c e Units h a ving a n in i t i a l v a lue g r ea t e r than $2 , 000,000, a nd (b) no P a rtici p a nt w i ll r e ce i v e more than 300 , 000 P e r f o r ma n c e S h a r e s. Notwithstanding the fo r e g oi n g l i m i tation, in c onn ec t i on with a P a rtici p a nt’s in i t i a l s e rvi c e a s a n Empl o y ee , a n Empl o y e e m a y b e g ra nted up t o a n a ddi t ional 600,000 P e r f o r man c e S h a r e s a n d a ddi t ional P e r f o r man c e Units h a ving a n in i t i a l v a lue up to $2,000,000.

(b) V a lue of P e r f o rm a n c e Units/ S h a r e s . E a c h P e r fo r man c e Unit will h a v e a n in i t i a l v a lue that is e stablished b y t h e Admi n is t r a tor on or b e fo r e t he d a te o f g r a nt. E ac h P e r f o r man c e S h a re will h a ve a n in i t i a l v a lue e qu a l to the Fa ir Ma r k e t V a lue of a S h a re on the d a te of g r a nt.

( c ) P e r f o r man c e Obj e c t i v e s a nd Oth e r T e rm s . The Admin i str a tor will s e t p e r f o r ma n c e obj e c t i v e s or other v e st i ng p r ovis i ons (in c lud i n g , without l i m i t a t i on, c ont i nu e d status a s a S e rvi c e P rovid e r ) in i t s disc re t i on whi c h, d e p e nding on the e x tent to whi c h th e y a re met, wi l l d e te r m i ne t he number or v a lue of P e r f o r man c e U ni t s/ S h a r e s that will be p a id out to the P a rticip a nt. The Admin i str a tor m a y s e t p e r f o r ma n c e obje c t i v e s b a s e d upon the ac hi e v e ment of Compa n y - wi d e , div i sional, or ind i vidual g o a ls, or a n y other b a sis d e te r m i n e d b y the Ad m in i str a tor in i t s disc re t i on. E ac h A w a rd of P e r fo r m a n c e Units/ S h a r e s will be e vide n ce d b y a n A w a rd A g ree m e nt that w i l l spe c i f y the P e r f o r m a n c e P e riod, a nd such other te r ms a nd c ondi t ions a s t h e Admin i str a tor, in i t s s o le disc re t i on, will d e te r m i n e .

(d) E a rni n g of P e r fo r man c e Units/ S h a r e s . A f ter t he a ppl i ca ble Pe r f o r m a n c e P e riod h a s e nd e d, t h e h o lder of P e r f o rm a n c e Uni t s/ S h a r e s will be e nt i t l e d to r e c e ive a p a y out of t h e number of P e r f o r man c e Units/ S h a r e s ea rn e d b y t he P a rticip a nt ov e r the Pe r f o r ma n c e P e rio d , to be d e te r m i n e d a s a fu n c t i on of the e x tent to whi c h t he c o r r e sponding p e r f o r man c e obje c t i v e s or oth e r v e st i ng p r ovis i ons h a ve b ee n ac hie v e d. A f t e r the g r a nt of a P e r f o r man c e Unit /S h a r e , t h e Admin i str a tor, in i t s so l e disc re t i on, m a y r e du c e or w a ive a n y p e r fo r m a n c e obje c t i v e s or other v e st i ng pro v is i ons for s u c h P e r f o r ma n c e U ni t / S h a r e .

( e ) F o r m a nd Tim i ng of P a y m e nt of P e r f o r ma n c e Units/ S h a r e s . Pa y m e n t of ea rn e d Pe r f o r ma n c e Un i ts /S h a r e s will be made a s soon a s p rac t i ca ble a ft e r the e x pir a t i on of the a ppl i ca ble P e r f o rm a n c e P e riod. The Admin i str a tor, in i t s sole di s c r e t i on, m a y p a y e a r n e d P e r f o r man c e Units/ S h a r e s in the fo r m o f c a sh, in S h a r e s ( w hich h a ve a n a g g re g a te Fa ir Ma r k e t V a lue e qu a l to the v a lue of the ea rn e d P e r f o r m a n c e Units/ S h a r e s a t the c lose of the a ppl i ca ble P e r f o r man c e P e riod) o r in a c omb i n a t i on the re o f.

(f) C a n ce l l a t i on of P e r fo r m a n c e Units/ S h a r e s . On t h e date s et forth in the A ward Agreement, all une a rn e d or unvested Pe rforma n c e Units/ S har e s will be f orf e i t ed to the Compa n y , and a g ain wi l l be a v ai l a b le for g r a nt un d er the P l a n.

11. P e r f o r man c e Go a l s . The g r a nt i ng a nd/or v e st i n g of A w a rds of R e strict e d S tock, R e strict e d S tock Units, P e r f o r man c e S h a r e s a nd P e r f o r ma n c e Units a nd other inc e nt i v e s und e r t h e P lan m a y be made subj e c t to the a t t a in m e nt of p e r f o r ma n c e g o a ls r e lati n g to one o r more busin e ss c rite r ia with i n the m e a ning o f Se c t i on 162(m) o f the Code a nd m a y p r o v ide for a t a r g e ted lev e l o r lev e ls of ac hiev e ment ( “ P e r f o r ma n c e G o a ls”) including one or more o f the following me a sur e s: ( a ) Ann u a l Rev e nu e , (b) C a sh Col l ec t i ons, ( c ) C u sto m e r S a t i sf ac t i on M B Os, (d) E a rni n g s P e r S h a r e , ( e ) N e t I n c ome, ( f ) N e w O r d e rs, ( g) O p e r a t i n g P ro f i t , (h) P ro F o r ma N e t I n c o m e , (i) R e turn on D e si g n a ted Ass e ts, (j) R e turn on Equi t y , (k) R e turn on S a les, a nd ( l ) P rodu c t S hip m e nts. A n y P e r f o r man c e G o a ls m a y be used to m ea su r e t h e p e r fo r man c e of the C ompa n y a s a whole o r a busin e ss unit of the C o mpa n y a nd m a y b e m e a sur e d r e lative to a p ee r g roup or inde x . The P e r f o r man c e Go a ls m a y dif fe r f rom P a rticip a nt to P a rticip a nt a nd f r o m A wa rd to A w a rd. An y c rite r ia used m a y be (i) me a sur e d in a bsolute te r ms, (ii) c ompa re d to a nother c ompa n y or c ompan i e s, (iii) me a sur e d a g a inst the p e r f o r ma n c e of the Compa n y a s a whole or a s e g ment of the Compa n y a nd/or (iv) me a s u r e d on a p r e - t a x or pos t - tax b a s i s (if a ppl i ca ble ) . P rior t o the D e te r m i n a t i on D a t e , the Admin i str a tor will d e te r m i ne wh e ther a n y sign i fi ca nt e lem e nt(s) will be includ e d in or e x c lud e d f r om t he ca l c ulation of a n y P e r fo r ma n c e G o a l wi t h r e spe c t t o a n y Pa rticip a nt.

12. L e a v e s of Ab s e n ce /T r a n sf e r B e tw e e n L o ca t i on s . Unl e ss the Admin i str a t o r p r ovides othe r wise, v e st i ng o f A w a rds g r a nted h e r e un d e r will be suspen d e d du r ing a n y unp a id l e a ve o f a bsen c e . A S e rv i c e P ro v ider will not cea se to be a n Empl o y e e in the ca se of (i) a n y le a v e of a bse nc e a ppro ve d b y t h e Compa n y or (ii) t r a nsf e rs b e t w ee n lo c a t i ons of the Compa n y or b e tw e e n t he Compa n y a nd i t s A f f i l i a te s . F or p u rpos e s of I n ce nt i ve S tock Options, n o such le a ve m a y e x ce e d nine t y (90) d a y s, unless r e e mp l o y ment upon e x pir a t i on of such le a v e is g u a r a n t ee d b y statute o r c ontr ac t. I f re e mp l o y m e nt upon e x pir a t i on of a l e a ve of a b s e n c e a ppro v e d b y t h e Compa n y is not s o g u a r a nt e e d, then thr e e ( 3) mon t hs following the nine t y- fi r st (91 s t ) d a y o f such le a ve a n y I n ce nt i ve S tock O pt i on h e ld b y the P a rticip a nt wi l l c ea se to be t rea ted a s an I n ce nt i ve S tock O pt i on a nd will be tr ea ted f o r t a x pur p oses a s a N onst a tu t o r y S tock O pt i on.

13. T ra nsf e r a bi l i t y of A w a r d s . Unl e ss d e t e rmin e d othe r wise b y t h e Admi n is t r a tor, a n A wa rd m a y not b e sold, pledg e d, a ss i g n e d, h y po t h eca ted, tr a ns f e r r e d, o r d ispo s e d of in a n y man n e r other than b y will or b y t he la w s o f d e s ce nt o r di s tribution a nd m a y b e e x e r c ised, duri n g the l i f e t i m e of the P a rticip a nt, on l y b y the P a rtici p a nt. W i t h t he a ppro va l of t h e Admin i str a tor, a P a rticip a nt m a y , in a man n e r s p ec ified b y the Admin i str a tor, ( a ) t r a nsf e r a n A w a rd to a P a rticip a nt’s spouse or fo r mer spouse pursu a nt to a c o u r t -a ppro ve d do m e st i c r e l a t i ons o r d e r whi c h r e lat e s to the p r ovis i on of c hi l d support, a l i mo n y p a y m e nts or ma r i t a l p r op e r t y r i g hts, a nd (b) t r a ns f e r a n Option b y bona fi d e g i f t a nd not for a n y c onsid e r a t i on, to (i) a memb e r or memb e rs of the P a rtic i p a nt’s i m medi a te f a m i l y , (ii) a trust e stablished for the e x c lus i ve b e n e fit of the P a rtici p a nt a nd/or memb e r ( s ) of t h e P a rticip a nt’s i m medi a te f a m i l y , (iii) a p a rtn e rsh i p, l i m i ted l i a bi l i t y c om p a n y of oth e r e nt i t y who s e on l y p a rtn e rs o r memb e r s a re t h e P a rticip a nt a nd/or memb e r ( s ) of t h e P a rt i c ipant ’ s i m medi a te f a m i l y , or (iv) a foun da t i on in whi c h the P a rticip a nt a nd/or me m b e r ( s) of the P a rticip a nt’s i m medi a te f a m i l y c ontrol the ma n a g e ment of the foun da t i on’s a s s e ts. F o r purp o s e s of th i s S ec t i on 13, “ i m medi a t e f a m i l y ” shall m e a n the P a rticip a n t ' s spouse, f o r mer spouse, c hi l d re n, g ra nd c hi l d r e n, p a r e nts, g r a ndp a r e nts, sib l in g s, n ie ce s, n e ph e ws, p a r e nt s - i n - la w , son s - in - l a w, d a u ghte r s - in - la w , b roth e rs - i n - la w , si s te r s - in - l a w, incl u ding a dopt i ve or step r e l a t i onships a nd a n y p e rs o n sha r i n g the P a rticip a n t 's hous e hold (oth e r than a s a ten a nt or e mp l o y e e ).

14. Adjustments; Disso l ut i on or L iqu i d a t i on; M e r g e r o r Ch a nge in C ontro l .

( a ) Adjustment s . I n the e v e nt that a n y div i d e nd or o ther dis t ribution ( w h e ther in the fo r m of c a sh, S h a res, other s e c u r i t ies, or other p r o p e r t y ), r e c a pi t a l iz a t i on, sha r e spl i t, r e v e r s e sha r e spl i t, r e o r g a ni z a t i on, me r g e r, c onsolidation, spl i t - up, spi n - o f f, c omb i n a t i on, r e pur c h a s e , or e x c h a nge of S h a r e s or o t h e r s e c u r i t ies of the Co m p a n y , or other c h a n ge in the c o r p o r a te stru c ture of the Compa n y a f f ec t i n g the S h a r e s o c c u r s, the Admin i str a tor, in o r d e r to p re v e nt di m i nut i on or e nla r g e ment of t h e b e n ef i t s or potential b e n e fits in t e nd e d to be made a v a i l a ble und e r the P lan, sha l l a djust the number a nd c l a ss of S h a r e s that m a y be d e l i v e r e d und e r the P lan a nd/or the numbe r , c lass, a nd p r i c e of S h a r e s c o v e r e d b y e a c h outs t a n di n g A wa rd, a nd t h e num e ri c a l S h a re l i m i ts s e t fo r th in S ec t i ons 3, 6, 7, 8, 9 a nd 1 0 .

(b) Disso l ut i on or L iqu i d a t i o n . I n the e v e nt of t he p r opos e d dis s olu t ion or l i quidation of the Compa n y , the Admin i str a tor will not if y e ac h P a rtici p a nt a s soon a s p ra c t i ca b l e p r ior to the e f f e c t i ve d a t e of such p ropos e d tr a n s ac t i on. To the e x tent it h a s not b ee n p r e vious l y e x e r c ised, a n A w a rd w i l l te r m i n a te im m e diat e l y p rior to t he c onsummation of su c h pr o posed ac t i on.

( c ) Ch a n g e in Contro l . I n the e v e nt o f a Ch a n ge i n Control, eac h outs t a n d ing A wa rd will be a ssu m e d or a n e qui v a lent opt i on or r i g ht subs t i t uted b y the suc c e ssor c o r po r a t i on or a P a r e nt or S ubsidia r y of t he suc c e ss o r c o r p o r a t i on (the “ S u c c e ssor Co r po r a t i o n ” ). I n the e v e nt th a t the S u cce ssor Co r por a t i on r e fus e s to a ssu m e or subs t i t ute for the A wa r d , the P a rticip a nt will ful l y v e st in a nd h a ve the right to e x e r c ise a ll of his or h e r outs t a nding Opti o ns a nd S tock App rec iation Ri g hts, including S h a r e s a s to whi c h such A wa rds would not othe r wise be v e sted or e x e r c isabl e , a ll r e strictions on R e strict e d S tock will laps e , a nd, w i t h r e spe c t to R e stric t e d S tock Units, P e r f o r man c e S h a r e s a nd P e r f o r m a n c e Units, a ll P e r f o r man c e Go a ls or other v e st i ng c rite r ia will be d ee m e d ac hiev e d a t ta r g e t lev e l s a nd a ll other te r ms a nd c ond i t i ons met. I n a ddi t ion, if the S u cce ssor Co r por a t i on r e fus e s to a ssu m e or subs t i t ute a n Option or S tock App rec iation Ri g ht in the e v e nt of a Ch a n g e in Control, the Admin i str a tor will not if y the P a rticip a nt in w riting o r e l e c troni ca l l y that t he Option or S tock App r e c iation Ri g ht will be f ul l y v e sted a nd e x e r c i s a ble for a p e riod o f t i me d e te r m i n e d b y the Admin i str a tor in i t s sole disc r e t i on, a nd the Option or S tock App rec iation R i g h t will te r m i n a te upon the e x pir a t i on of such p e riod.

F or the purp o s e s of th i s subse c t i on ( c ), a n A w a rd will be c onsid e r e d a ssu m e d if, following the Ch a n g e in Control, the A wa rd c on f e rs the ri g ht to p u r c h a se or re ce ive, for eac h S h a r e subj ec t to the A w a rd i m medi a te l y p r ior to the Ch a nge in Control, the c on s ide ra t i on ( w h e ther s h a r e s , ca sh, or ot h e r s e c u r i t ies or p r op e r t y ) o r , in the c a se of a S tock App r e c iat i on Ri g ht upon the e x e r c ise of whi c h the Admin i str a tor d e te r m i n e s to p a y ca sh or a P e r fo r ma n c e S h a re o r P e r f o rm a n c e Unit whi c h the Admin i str a tor ca n d e te r m i ne to p a y i n ca sh, the f a ir ma r k e t v a lue of the c onsid e r a t i on r e ce i v e d in t he me r g e r o r Ch a nge in C ontrol b y h o lde r s of Common S tock f or e a c h S h a re h e ld on t he e f f e c t i ve d a te o f the tr a n s ac t i on ( a nd if holde r s w e re o f f e r e d a c hoice o f c onsid e r a t i on, the t y pe of c onsid e r a t i on c ho s e n b y the hold e rs of a majo r i t y of the outst a nding S h a r e s ); p r ovided, ho we v e r, th a t if such c onsid e r a t i on re c e ived in t h e Ch a n g e in C ontrol is not sole l y c om m on stock of the S u c ce s s or Co r por a t i on, the Admin i str a tor m a y , with the c o n s e nt of the S u cce ssor C o rpo ra t i on, p r ovide for the c onsid e r a t i on to be r e c e i v e d upon the e x e r c ise of a n Option or S tock App r ec iation Ri g ht or upon t h e p a y out o f a R e strict e d S t o c k Unit, P e r f o r ma n c e S h a re or Pe r f o r m a n c e Unit, for e a c h S h a r e subj ec t t o such A wa rd (or in the c a se of a n A wa rd s e t t led in ca sh, the number of i m pl i e d sha re s d e te r m i n e d b y div i ding the v a lue of the A wa rd b y the p e r sh a re c onsid e r a t i on r e c e iv e d b y holde r s of Com m on S tock in the Ch a n g e in Control), to be s o le l y c o m m on stock of the S u cce ssor Co r por a t i on e qu a l in f a ir ma r k e t v a lue to the p e r sha r e c onsid e r a t i on re ce ived b y hold e rs of C o m m on S tock in the Ch a n g e in C ontrol.

Notwithstanding a n y th i ng in th i s S ec t i on 14( c ) to t he c ontr a r y , a n A w a rd that v e st s , is ea rn e d or p a i d - out upon the s a t i sf ac t i on of one o r m o re P e r f o r man c e Go a ls will not be c onsid e r e d a ssu m e d if the Company or i t s suc c e ssor mod i fi e s a n y of s u c h P e r f o r man c e Go a ls without the P a rticip a nt’s c onse n t; p r ovided, how e v e r, a mod i fi ca t i on to such P e r f o r man c e Go a ls on l y to r e fl e c t the S u cce ssor Co r p o r a t i on’s pos t - Ch a n g e in C o ntrol c o r por a t e stru c tu r e will not be d ee med to invalidate a n othe r wi s e v a l i d A wa rd a ssu m pt i on.

15. T a x W i thho l ding

( a ) W i t hhold i ng R e quir e ment s . P rior to the d e l i v e r y of a n y S h a r e s or c a sh pursu a nt to a n A w a rd (or e x e r c ise t h e r e o f ) , the C o mpa n y will h a ve the p ow e r a nd the r i g ht to d e d u c t or withho l d, or r e quire a P a rticip a nt to r e m i t to t h e Compa n y , a n a mount suf f ici e nt to s a t i s f y f e d e ral, stat e , loc a l, fo r e i g n or o t h e r ta x e s r e qui r e d to be withheld with r e spe c t to such A w a rd (or e x e r c i s e th e r e o f ).

(b) W i t hhold i ng A r r a n g e m e nt s . The Admin i str a tor, in i t s s o le disc re t i on a nd pursu a nt to such p r o ce d u r e s a s it m a y s p ec i f y f r o m t i me to t i me, m a y p e r m i t a P a rticip a nt to s a t i sfy such tax withho l ding obl i g a t i on, in whole or in p a rt b y ( w i t hout l i m i t a t i on) ( a ) p a y i n g ca sh, (b) e le c t i n g to h a ve the Compa n y withho l d othe r w i se d e l i v e r a ble ca sh or S h a r e s h a vi n g a Fa ir M ar k e t V a lue e q u a l to the m i ni m um a mount r e quir e d to b e withheld, (c) d e l i v e ring to the Compa n y a lr e a d y - own e d S h a r e s h a vi n g a F a ir Ma r k e t Va lue e qu a l t o the a mount r e quir e d to be withheld, or (d) s e l l ing a suf f ic i e nt number of S h a r e s othe r wise d e l i v e r a ble to the P a rticip a nt t h r ou g h such m ea ns a s t he Admin i str a tor m a y d e t e r m i ne in i t s s o le disc re t i on ( w h e ther thro u g h a b r o k e r or othe r wis e ) e qu a l t o the a mount r e qui r e d to b e withhel d . The a mount of the withho l ding r e qu i r e ment will be d e e med t o include a n y a mount whi c h the Admin i str a tor a g re e s m a y be withheld a t the t i me the e l e c t i on is mad e , not to e x cee d the a mount d e te r m i n e d b y usi n g the ma x i m um f e d e r a l, state or loc a l ma r g i n a l income tax r a tes a ppl i ca ble to t h e P a rticip a nt with r e sp e c t to the A w a rd on t h e d a t e that the a mount of tax to be withheld is to be d e t e rmin e d. The F a ir Ma r k e t V a lue of the S h a r e s to be withheld or d e l i v e r e d will be d e t e rmin e d a s of t he d a te th a t t he ta x e s a r e r e quir e d to be withheld.

16. No E f f e c t on Empl o y m e nt or S e rvi c e . N e i t h e r the P lan nor a n y A w a rd will c onf e r upon a P a rticip a nt a n y r i g ht with r e sp e c t to c ont i nuing the P a rticip a nt’s r e lationship a s a S e rvi c e P rovid e r with the Com p a n y , nor will th e y in te r f e re in a n y w a y with the P a rti c ipant ’ s ri g ht or the Compa n y ’s r i g ht to te r m i n a te such r e lationship a t a n y t i me, with or without ca use, to the e x t e nt p e rmit t e d b y Appli c a ble L a ws.

17. D a te of G ra n t . The d a te of g r a nt of a n A wa rd w i l l b e , for a ll purp o s e s, t he d a te on whi c h the Admin i str a tor mak e s the d e te r m i n a t i on g r a nt i ng such A w a rd, or such other l a ter d a te a s is d e te r m i n e d b y the Admin i str a tor. Notice of the d e te r m i n a t i on will be p r ovided to e a c h P a rticip a nt with i n a rea sona b l e t i me a ft e r the d a te of s u c h g rant.

18. T e rm of P la n . S ubje c t to S ec t i on 22 of the P lan, the P lan will b ec ome e f fe c t i ve upon i t s a dopt i on b y the B o a r d. I t will c ont i nue in e f f e c t for a te r m of ten ( 1 0) y e a rs unless te r m i n a t e d ea rlier un d e r Se c t i on 19 of the P l a n.

19. Am e ndment a nd T e rmin a t i on of the P l a n .

( a ) Am e ndment a nd T e rmi n a t i o n . The Admin i str a t or m a y a t a n y t i me a m e nd, a l t e r, susp e nd or t e rmin a te the P lan.

(b) S h a r e holder Ap p rov a l . The Compa n y will obtain sha re hold e r a ppro v a l of a n y P lan a mendm e nt t o t h e e x tent n ece ssa r y a nd d e si r a ble to c omp l y with Appl i ca ble L a ws.

( c ) E f f e c t o f Am e ndment or T e rmin a t i o n . No a me n dment, a l t e r a t i on, suspe n sion or te r m i n a t i on of t h e P l a n will i m p a ir the r i g hts o f a n y Pa rticip a nt, unless mu t u a l l y a g ree d othe r wi s e b e tw ee n the P a rticip a nt a nd the Admin i str a tor, whi c h a g re e ment must be in w r i t ing a nd si g n e d b y the P a rticip a nt a nd the C ompa n y . T e rmin a t i on of the P lan will not a f fec t the Admin i str a tor ’ s a bi l i t y to e x e r c ise the pow e rs g r a nted to it h e r e und e r with r e spe c t to A wa rds g r a n ted und e r the P lan p r ior t o the d a te of such t e rmin a t i on.

20. Condi t ions Upon I ssuan c e of Sh a r e s .

( a ) L e g a l Comp l ian c e . S h a r e s will not be is s u e d p u r suant to the e x e r c ise o f a n A wa rd unless the e x e r c ise of such A wa rd a nd the is s u a n c e a nd d e l i v e r y o f such S h a r e s will c omp l y with Applic a ble L a ws a nd will be fu r ther subj ec t to the a ppro va l of c ouns e l for the Compa n y with r e spe c t t o su c h c omp l ian ce .

(b) I n v e st m e nt R e p re s e n t a t i on s . As a c ondi t ion to the e x e r c ise of a n A w a r d , the Compa n y m a y r e quire t h e p e rson e x e r c is i n g such A wa rd to r e p re s e nt a nd w a r r a nt a t the t i me of a n y such e x e r c ise that the S h a r e s a re b e i n g p u r c h a s e d on l y for investm e nt a nd without a n y p r e s e nt in t e nt i on to s e ll or d is t ribute such S h a r e s if, in the opin i on of c ouns e l f or the Compa n y , such a r e p re s e ntation i s r e quir e d .

21. I n a bi l i t y to Ob t a in Aut h o r i t y . The inabil i t y of the Compa n y to obtain a uthori t y f r om a n y re g ulato r y bo d y h a v i ng j u risdiction, whi c h a u thori t y is d ee med b y the Compa n y ’s c ouns e l to b e n ece ss a r y to the la w ful is s u a n c e a nd s a le o f a n y S h a r e s h e r e und e r, will rel i e ve the Compa n y of a n y l i a bi l i t y in r e s p ec t o f the f a i l u r e to is s ue or s e ll s u c h S h a r e s a s to whi c h s u c h r e quis i te a uthori t y wi l l not have b ee n ob t a ined.

Exhibit 5.1

UTStarcom Holdings Corp.

PO Box 309, Ugland House

Grand Cayman

KY1-1104

Cayman Islands

November 15, 2018

Dear Sirs

UTStarcom Holdings Corp.

We have acted as Cayman Islands counsel to UTStarcom Holdings Corp. (the " Company ") to provide this legal opinion in connection with the Company's registration statement on Form S-8, including all amendments or supplements thereto (the " Form S-8 "), filed with the United States Securities and Exchange Commission (the " Commission ") under the United States Securities Act of 1933 (the " Act "), as amended (the " Registration Statement ") relating to the reservation for issuance of 1,500,000 Ordinary Shares of a par value of US$0.00375 each (the " Shares "), upon the granting of certain awards under the 2006 Equity Incentive Plan (as amended) (the " Plan ").

1	Documents Reviewed

We have reviewed originals, copies, drafts or conformed copies of the following documents, and such other documents as we deem necessary:

1.1	The certificate of incorporation dated 23 September 2010 and the amended and restated memorandum of association and the second amended and restated articles of association of the Company adopted on 21 March 2013 (the " Memorandum and Articles ").

1.2	The written resolutions of the board of directors of the Company dated 25 April 2011 and 21 January 2016 (together, the " Resolutions ") and the corporate records of the Company maintained at its registered office in the Cayman Islands.

1.3	The written resolutions of the shareholders of the Company dated 25 April 2011 (the " Shareholder Resolutions ").

1.4	A certificate of good standing with respect to the Company issued by the Registrar of Companies (the " Certificate of Good Standing ").

1.5	A certificate from a director of the Company a copy of which is attached to this opinion letter (the " Director's Certificate ").

1.6

The Plan.

1.7	The Registration Statement.

2	Assumptions

The following opinions are given only as to, and based on, circumstances and matters of fact existing and known to us on the date of this opinion letter. These opinions only relate to the laws of the Cayman Islands which are in force on the date of this opinion letter. In giving the following opinions, we have relied (without further verification) upon the completeness and accuracy of the Director's Certificate and the Certificate of Good Standing. We have also relied upon the following assumptions, which we have not independently verified:

2.1	The Plan has been authorised and duly executed and unconditionally delivered by or on behalf of the Company in accordance with all relevant laws (other than the laws of the Cayman Islands).

2.2	The Plan is legal, valid, binding and enforceable against all relevant parties in accordance with its terms under relevant laws (other than, with respect to the Company, the laws of the Cayman Islands).

2.3	Copies of documents, conformed copies or drafts of documents provided to us are true and complete copies of, or in the final forms of, the originals, and translations of documents provided to us are complete and accurate.

2.4	All signatures, initials and seals are genuine.

2.5	The capacity, power, authority and legal right of the Company under all relevant laws and regulations (other than the laws of the Cayman Islands) to enter into, execute, unconditionally deliver and perform its obligations under the Plan.

2.6	No monies paid to or for the account of any party under the Plan represent or will represent criminal property or terrorist property (as defined in the Proceeds of Crime Law (2016 Revision) and the Terrorism Law (2015 Revision), respectively).

2.7	There is nothing under any law (other than the laws of the Cayman Islands) which would or might affect the opinions set out below.

2.8	The Company has received, or will receive, money or money's worth (the " Consideration ") in consideration for the issue of the Shares, and none of the Shares have, or will be, issued for less than par value.

Save as aforesaid we have not been instructed to undertake and have not undertaken any further enquiry or due diligence in relation to the transaction the subject of this opinion.

Opinions

Based upon, and subject to, the foregoing assumptions and the qualification set out below, and having regard to such legal considerations as we deem relevant, we are of the opinion that the Shares to be offered and issued by the Company pursuant to the provisions of the Plan, have been duly authorised for issue, and when issued by the Company pursuant to the provisions of the Plan for the consideration fixed thereto and duly registered in the Company’s register of members (shareholders), will be validly issued

and (assuming that all of the Consideration is received by the Company) will be fully paid and non-assessable.

4	Qualifications

The opinions expressed above are subject to the following qualification:

4.1

Under the Companies Law (2016 Revision) of the Cayman Islands (the " Companies Law "), the register of members of a Cayman Islands company is by statute regarded as prima facie evidence of any matters which the Companies Law directs or authorises to be inserted therein. A third party interest in the shares in question would not appear. An entry in the register of members may yield to a court order for rectification (for example, in the event of fraud or manifest error).

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement. In providing our consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Act or the Rules and Regulations of the Commission thereunder.

This opinion is addressed to you and may be relied upon by you and your counsel. This opinion is limited to the matters detailed herein and is not to be read as an opinion with respect to any other matter.

Yours faithfully

/s/ Maples & Calder

Maples and Calder

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have issued our report dated April 16, 2018 with respect to the consolidated financial statements of UTStarcom Holdings Corp. included in the Annual Report on Form 20-F for the year ended December 31, 2017, which we is incorporated by reference in this Registration Statement. We consent to the incorporation by reference of the aforementioned report in this Registration Statement.

/s/ Grant Thornton

Shanghai, the People’s Republic of China

November 15, 2018