Item 5.02. Departure of Directors or Certain Officers: Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On October 6, 2008, the Compensation Committee of the Board of Directors of UTStarcom, Inc., a Delaware corporation (the "Company"), approved a bonus package for Viraj Patel, the Company's Interim Chief Financial Officer. Mr. Patel, who also serves as Vice President, Corporate Controller and Chief Accounting Officer, was appointed Interim Chief Financial Officer effective September 1, 2008.

Subject to Mr. Patel's successful fulfillment of the Interim Chief Financial Officer role and the achievement of certain other management objectives, the Company will: (a) pay a cash bonus to Mr. Patel in the amount of $100,000, less applicable tax withholding, on or about March 13, 2009, subject to his continued service to the Company through such date; and (b) eliminate the original performance requirements with respect to 60,000 restricted stock units previously awarded to Mr. Patel on February 29, 2008, which original performance requirements, if not met, could have resulted in a reduction in the actual number of restricted stock units subject to the award.

Also on October 6, 2008, the Compensation Committee approved the payment to Mr. Patel of the second and final installment of a turnaround retention bonus previously approved by the Compensation Committee on November 26, 2007. The cash payment of $46,251, less applicable tax withholding, will be made on or about October 15, 2008. The amount of the bonus installment was determined by a combination of Company performance hurdles and the completion of certain predetermined individual performance goals.

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