Document:

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                                                                   EXHIBIT 10.10

                              TERMINATION AGREEMENT

                  Termination Agreement ("Agreement") dated into as of January
27, 2004, by and among Hawthorne Financial Corporation, a Delaware corporation
(the "Company"), Hawthorne Savings, FSB, a federally chartered savings bank (the
"Bank") and Fort Pitt Fund (the "Securityholder").

                                    RECITALS

         A.       The Company, the Bank and the Securityholder are parties to
that certain Director Agreement dated as of December 12, 1995 (the "Director
Agreement").

         B.       The Company has advised the Securityholder that the Company's
Board of Directors has determined that it is advisable and in the best interests
of the Company and its stockholders to enter into an Agreement and Plan of
Merger among Commercial Capital Bancorp, Inc., CBBI Acquisition Corp. and the
Company ("Acquisition Agreement"). On consummation of the transactions
contemplated by the Acquisition Agreement, Commercial Capital Bancorp, Inc. will
acquire the Company and the Bank, and the shares of the Company's common stock
issued and outstanding immediately prior to the Effective Time (as such term as
defined in the Acquisition Agreement) will be converted into shares of Parent
Common Stock (as defined in the Acquisition Agreement).

         C.       The Company has advised the Securityholder that Commercial
Capital Bancorp, Inc., will not enter into the Acquisition Agreement unless the
Securityholder executes this Agreement.

         D.       The Securityholder has been advised of the terms of the
Acquisition Agreement and had the opportunity to discuss the Acquisition
Agreement with representatives of the Company and believes that consummation of
the transactions contemplated by the Acquisition Agreement will benefit the
Securityholder and, in order to obtain such benefits, the Securityholder desires
to enter into this Agreement.

         Now, therefore, in consideration of the mutual promises as set forth
herein and for other valuable consideration the receipt of which is hereby
acknowledged, the parties agrees as follows:

                  1.       Effective concurrently with the consummation of the
Merger (as defined Acquisition Agreement), the Director Agreement shall
terminate and no party to the Director Agreement shall have any further rights,
liabilities or obligations under the Director Agreement.

                  2.       The Securityholder represents and warrants to and
agrees with the Company and the Bank as follows:

                           (a)      The Securityholder has all requisite power
and authority to enter into this Agreement.

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                           (b)      This Agreement constitutes the valid and
legally binding obligation of the Securityholder.

                           (c)      The Securityholder has not assigned any of
its rights and will not assign any of its rights under the Director Agreement.

                           (d)      The Securityholder shall hold and treat all
information provided to it concerning the Acquisition Agreement in confidence
and will not disclose or permit any of its representatives to disclose in any
manner whatsoever any such information and will not acquire or permit any of its
representatives to acquire any shares of the Company common stock or the Parent
Common Stock until such time as the execution of the Acquisition Agreement and
the transactions contemplated thereby are publicly disclosed.

                  3.       The Company represents and warrants to and agrees
with the Securityholder as follows:

                           (a)      The Company has all requisite power and
authority to enter into this Agreement.

                  4.       This Agreement shall terminate on the date, if any,
of termination of the Acquisition Agreement in accordance with its terms.

                  5.       This Agreement supersedes all prior agreements,
written or oral, among the parties hereto with respect to the subject matter
hereof and contains the entire agreement among the parties with respect to the
subject matter hereof. This Agreement may not be amended, supplemented or
modified, and no provisions hereof may be modified or waived except by an
instrument in writing signed by each party hereto.

                  6.       This Agreement may be executed in one or more
counterparts each of which shall be deemed to be an original but all of which
together shall constitute one in the same instrument.

                  7.       This Agreement shall be deemed a contract made under,
and for all purposes shall be construed in accordance with, the laws of the
State of California, without reference to its conflict of law principles.

                  IN WITNESS WHEREOF, the parties hereto have executed and
delivered this Agreement as of the date first written above.

                                         HAWTHORNE FINANCIAL CORPORATION

                                         By: /s/ SIMONE LAGOMARSINO
                                             ___________________________________
                                             Simone Lagomarsino
                                             President & Chief Executive Officer

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                                         HAWTHORNE SAVINGS BANK

                                         By: /s/ SIMONE LAGOMARSINO
                                             ___________________________________
                                             Simone Lagomarsino
                                             President & Chief Executive Officer

                                         FORT PITT FUND

                                         By: /s/ HARRY F. RADCLIFFE
                                             ___________________________________
                                             Harry F. Radcliffe
                                             President & Chief Executive Officer

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                                                                   Exhibit 10.42
                                EXECUTIVE OFFICER

                              EMPLOYMENT AGREEMENT

         THIS EXECUTIVE OFFICER EMPLOYMENT AGREEMENT (the "Agreement") is made
and entered into this 23rd day of April, 2003 (the "Effective Date") by and
between UNIVERSAL ELECTRONICS INC. (the "Employer") and PAUL D. ARLING
("Executive").

                                    RECITALS:

         WHEREAS, the Employer is presently headquartered in Cypress,
California, and is engaged in the business of developing and marketing easy to
use, pre-programmed universal remote control products primarily for home video
and audio entertainment equipment and home security and home automation devices;
and

         WHEREAS, on August 27, 2000, Executive and Employer entered into that
certain Executive Officer Employment Agreement (the "Prior Executive Employment
Agreement"), and the Prior Executive Employment Agreement is set to expire on
September 30, 2003 and the parties wish to extend such date to April 30, 2006;
and

         WHEREAS, Employer wishes to continue the employment of Executive as one
of its key executives and avail itself of Executive's expertise, experience and
capability in Employer's business as its Chairman of the Board and Chief
Executive Officer to perform those duties and assume those responsibilities as
set forth in this Agreement and as identified and outlined in Employer's Amended
and Restated By-Laws, and to undertake such other duties and to assume such
other responsibilities commensurate with Executive's designated position(s) as
may be reasonably assigned to Executive from time to time by the Board of
Directors of Employer; and

         WHEREAS, Executive hereby accepts such offer of continued employment
and extension of term and desires to be employed by the Employer subject to the
terms and conditions of this Agreement.

         NOW, THEREFORE, in consideration of the foregoing, the mutual covenants
contained herein, and other good and valuable consideration, receipt of which is
hereby acknowledged, the parties, intending to be legally bound, agree as
follows:

         1.       EMPLOYMENT

         Subject to all of the terms and conditions of this Agreement, effective
on the Effective Date , Employer hereby employs Executive and Executive hereby
accepts such employment with Employer.

         2.       TITLE, AUTHORITY AND DUTIES

                  (a)      TITLE(S) AND POSITION(S). On the Effective Date of
         this Agreement, Executive shall be employed in the position(s) of and
         shall have the title(s) of Chairman of the Board

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         and Chief Executive Officer of Employer. Until this Agreement is
         terminated as provided herein, Executive will continue to occupy such
         position(s) and hold such title(s) until Employer and Executive shall
         mutually agree in writing to change any such position(s) and title(s).

                  (b)      AUTHORITY AND DUTIES. Executive will, during the term
         of this Agreement, and subject to Board of Director oversight, be
         responsible for all aspects of Employer's business. In addition,
         Executive shall perform those duties and assume those responsibilities
         as set forth in this Agreement and as identified and outlined in
         Employer's Amended and Restated By-Laws, as amended as of the date of
         this Agreement, and undertake such other duties and assume such other
         responsibilities commensurate with Executive's designated position(s)
         as may be reasonably assigned to Executive from time to time by the
         Board of Directors of Employer.

                  (c)      EXCLUSIVE SERVICES AND EFFORTS OF EXECUTIVE. During
         the term of this Agreement, Executive shall serve the Employer, under
         the direction of Board of Directors of Employer, and shall faithfully,
         diligently, competently and, to the best of his ability, exclusively
         devote his full business time, energy and attention (unless otherwise
         agreed to by the parties) to the business of the Employer and to the
         promotion of its interest. Executive recognizes that Employer's
         organization, business and relationship with clients, prospective
         clients and others having business dealings with Employer are and will
         be the sole property of Employer and Executive shall have no separate
         interests or rights with respect thereto, except as an employee of
         Employer. Executive may own less than a five percent (5%) interest in a
         supplier, client, or competitor of Employer if the supplier, client, or
         competitor is a publicly traded company.

                  (d)      OTHER ACTIVITIES AND INTERESTS. Employer shall be
         entitled to all of the benefits, emoluments, profits, discoveries or
         other issues arising from, incident to and related to any and all work,
         services and advice of Executive to Employer in carrying out his duties
         and responsibilities hereunder. Executive shall not, without the
         written consent of Employer, directly or indirectly, render services to
         or for any person, firm, corporation or other entity or organization,
         whether or not in exchange for compensation, regardless of the form in
         which such compensation, if any, is paid and whether or not it is paid
         directly or indirectly to him if the rendering of such service would
         interfere with the performance of his duties and responsibilities to
         Employer hereunder. Notwithstanding the foregoing sentence, Executive
         may spend time and attention to personal investment and community
         activity matters and such other personal matters consistent with
         Employer's policies and procedures set forth within Employer's policy
         manual in effect from time to time which are equally applicable to all
         of Employer's executive employees, so long as the spending of such time
         and attention does not substantially interfere with the performance of
         his duties and responsibilities to Employer hereunder.

         3.       TERM OF EMPLOYMENT AND TERMINATION

                  (a)      TERM. Unless earlier terminated as provided herein,
         the term of this Agreement shall commence at the start of business on
         the Effective Date of this Agreement and shall continue through the end
         of business on April 30, 2006 (the "Initial Term"). Unless

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         terminated by either party by giving the other party written notice of
         an intent not to renew this Agreement at least one hundred twenty (120)
         days prior to the end of the Initial Term or any successive one (1)
         year term, this Agreement shall automatically extend for one (1)
         additional year after the Initial Term and then again for a one (1)
         year term after each successive year.

                  (b)      TERMINATION.

                           (i)      BY EMPLOYER FOR JUST CAUSE. Employer may
                  terminate the employment of Executive under this Agreement for
                  Just Cause (as defined herein) at any time upon delivery of
                  written notice to him setting forth, in reasonable
                  specificity, such Just Cause. For purposes of this Agreement,
                  and particularly this subsection 3(b)(i), "Just Cause" shall
                  mean:

                                    (1)      The continued failure by or refusal
                           of Executive to substantially perform his duties and
                           responsibilities as set forth herein; or

                                    (2)      Executive's indictment for,
                           conviction of or a guilty plea to a felony or any
                           crime involving moral turpitude, whether or not
                           affecting the Employer; or

                                    (3)      The engagement by Executive in
                           personal illegal conduct which, in the reasonable
                           judgment of Employer, by association with him, is
                           materially and demonstrably injurious to the property
                           and/or business of Employer; or

                                    (4)      Any material breach by Executive of
                           the terms and conditions contained herein, including
                           without limitation, those certain confidentiality
                           provisions set forth in Section 16; or

                                    (5)      The commission of any act opposed
                           to the best interests of Employer for which Executive
                           would not be entitled to indemnification under
                           Employer's Restated Certificate of Incorporation and
                           Amended and Restated By-Laws, each as amended as of
                           the date of this Agreement; or

                                    (6)      The failure by Executive to protect
                           the best interests of Employer through Executive's
                           gross neglect of duty.

                           (ii)     BY EXECUTIVE FOR GOOD REASON. Executive may
                  terminate his employment with Employer under this Agreement
                  for Good Reason (as defined herein) at any time upon delivery
                  of written notice to Employer setting forth, in reasonable
                  specificity, such Good Reason(s). For purposes of this
                  Agreement, and particularly this subsection 3(b)(ii), "Good
                  Reason" shall mean:

                                    (1)      The attempted discontinuance or
                           reduction in Executive's "Base Cash Salary" (as
                           defined herein);

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                                    (2)      The attempted discontinuance or
                           reduction in Executive's bonuses and/or incentive
                           compensation award opportunities under plans or
                           programs applicable to him, unless such
                           discontinuance or reduction is a result of Employer's
                           policy applied equally to all executive employees of
                           Employer; or

                                    (3)      The attempted discontinuance or
                           reduction in Executive's stock option and/or stock
                           award opportunities under plans or programs
                           applicable to him, unless such discontinuance or
                           reduction is a result of Employer's policy applied
                           equally to all executive employees of Employer; or

                                    (4)      The attempted discontinuance or
                           reduction in Executive's perquisites from those
                           historically provided him during his tenure with the
                           Employer and generally applicable to executive
                           employees of Employer; or

                                    (5)      The relocation of Executive to an
                           office (other than Employer's current headquarters)
                           located more than fifty (50) miles from his then
                           current office location; or

                                    (6)      The significant reduction in
                           Executive's responsibilities and status within the
                           Employer or change in his title(s) or position(s); or

                                    (7)      Any change in Executive's
                           position(s) and title(s), as set forth in Section
                           2(a), to which Executive has not agreed in writing;
                           or

                                    (8)      The attempted discontinuance of
                           Executive's participation in any benefit plans
                           maintained by Employer unless such plans are
                           discontinued by reason of law or loss of tax
                           deductibility to the Employer with respect to the
                           contributions to or payments under such plans, or are
                           discontinued as a matter of the Employer's policy
                           applied equally to all participants; or

                                    (9)      The attempted reduction of
                           Executive's paid vacation to less than that as
                           provided in this Agreement; or

                                    (10)     The failure by Employer to obtain
                           an assumption of Employer's obligations under this
                           Agreement by any assignee of or successor to
                           Employer, regardless of whether such entity becomes a
                           successor to Employer as a result of merger,
                           consolidation, sale of assets of Employer or other
                           form of reorganization; or

                                    (11)     The occurrence of any of the items
                           set forth in paragraphs (1) through (10) of this
                           subsection 3(b)(ii), if, in the reasonable
                           determination by the Executive, such occurrence
                           happens as a result of and within the shorter of six
                           (6) months or the remaining term of this Agreement
                           following a "Change in Control" (as such term is
                           defined below). For the purposes of this Agreement, a
                           "Change in Control" shall be deemed to occur when and
                           only when the first of the following events occurs:

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                                             a.       Any "person" or "group"
                                    (as such terms are used in Sections 3(a),
                                    3(d), and 14(d) of the Securities Exchange
                                    Act of 1934, as amended, and the rules and
                                    regulations promulgated thereunder (the
                                    "1934 Act"), other than (i) a trustee or
                                    other fiduciary holding securities under any
                                    employee benefit plan of the Corporation or
                                    any of its subsidiaries or (ii) a
                                    corporation owned directly or indirectly by
                                    the stockholders of the Corporation in
                                    substantially the same proportions as their
                                    ownership of stock in the Corporation, is or
                                    becomes the "beneficial owner" (as defined
                                    in Rule 13d-3 under the 1934 Act)), directly
                                    or indirectly, of securities of the
                                    Corporation representing 20% or more of the
                                    total voting power of the then outstanding
                                    securities of the Corporation entitled to
                                    vote generally in the election of directors
                                    (the "Voting Stock"); or

                                             b.       Individuals who are
                                    members of the Incumbent Board, cease to
                                    constitute a majority of the Board of
                                    Directors of the Corporation. The term
                                    "Incumbent Board" shall mean (i) the members
                                    of the Board of Directors on the effective
                                    date of this Agreement, and (ii) any
                                    individual who becomes a member of the Board
                                    of Directors after the effective date of
                                    this Agreement, if his or her election or
                                    nomination for election as a director was
                                    approved by the affirmative vote of a
                                    majority of the then Incumbent Board; or

                                             c.       (i) The merger or
                                    consolidation of the Corporation with any
                                    other corporation or entity, other than a
                                    merger or consolidation which would result
                                    in the Voting Stock outstanding immediately
                                    prior thereto continuing to represent
                                    (either by remaining outstanding or by being
                                    converted into voting securities of the
                                    surviving entity) at least 80% of the total
                                    voting power represented by the Voting Stock
                                    or the voting securities of such surviving
                                    entity outstanding immediately after such
                                    merger or consolidation, (ii) the sale,
                                    transfer or disposition of all or
                                    substantially all of the Corporation's
                                    assets to any other corporation or entity,
                                    or (iii) the dissolution or liquidation of
                                    the Corporation.

                           (iii)    AUTOMATICALLY IN ACCORDANCE WITH SUBSECTION
                  3(A). In addition to the rights to terminate this Agreement as
                  set forth in subsections 3(b)(i) and 3(b)(ii), this Agreement
                  may also terminate automatically in accordance with subsection
                  3(a).

                           (iv)     DISAGREEMENTS. Any disagreement concerning
                  whether there has been Just Cause for termination by Employer
                  or Good Reason for termination by Executive will be resolved
                  by binding arbitration in accordance with the provisions of
                  Section 18 of this Agreement.

                  (C)      EFFECT OF TERMINATION. Upon termination of
         Executive's employment with Employer:

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                           (i)      BY EMPLOYER FOR JUST CAUSE. Executive shall
                  not be entitled to receive payment of any salary, bonus,
                  expenses, or other benefits beyond the date of termination
                  and, subject to this subsection 3(c)(i), Section 17, and
                  Executive's agreement to repay, without set off, all amounts
                  due Employer for monies loaned Executive as set forth in
                  Section 19, this Agreement shall become null and void
                  effective as of the date of termination and Employer and
                  Executive shall have no further obligation hereunder toward
                  the other except for the payment of salary, bonus, vacation,
                  expenses and benefits, if any, which have accrued but remain
                  unpaid prior to and as of the termination date.

                           (ii)     BY EXECUTIVE FOR GOOD REASON.

                                    (1)      Employer shall pay to Executive
                           salary, bonus, vacation, expenses, and benefits,
                           which have accrued but remain unpaid prior to and as
                           of the termination date, within the time period for
                           such payment specified by the laws of the state of
                           California.

                                    (2)      In addition to such amounts under
                           subsection 3(c)(ii)(1) above, Executive shall be paid
                           by Employer in a lump sum within twenty (20) business
                           days of such termination, an amount that is equal to
                           the sum of the following:

                                             (A)      The amount equivalent to
                                    salary payments for eighteen (18) months
                                    (twenty-four (24) months if such termination
                                    is pursuant to subsection 3(b)(ii)(11)), at
                                    that rate of pay which is not less than
                                    Executive's rate of Base Cash Salary in
                                    effect immediately prior to the effective
                                    date of such termination (without regard to
                                    any attempted reduction or discontinuance of
                                    such salary); and

                                             (B)      The amount equivalent to
                                    eighteen (18) months (twenty-four (24)
                                    months if such termination is pursuant to
                                    subsection 3(b)(ii)(11)), multiplied by the
                                    greater of (i) the monthly rate of the bonus
                                    payment for the bonus period in the year
                                    immediately prior to Executive's termination
                                    date or (ii) the estimated amount of the
                                    bonus for the period which includes
                                    Executive's termination date (without regard
                                    to any attempted reduction or discontinuance
                                    of such bonus).

                                    (3)      In addition to such amounts under
                           subsections 3(c)(ii)(1) and 3(c)(ii)(2) above,
                           Executive shall also receive, (i) in cash, the value
                           of the incentive compensation (including, but not
                           limited to, employer contributions to the Universal
                           Electronics Inc. 401(K) and Profit Sharing Plan) and
                           (ii) the rights to receive grants of stock options
                           and stock awards to which he would have been entitled
                           under all incentive compensation and stock option and
                           stock award plans maintained by Employer if Executive
                           had remained in the employ of Employer for eighteen
                           (18) months (twenty-four (24) months if such
                           termination is pursuant to subsection 3(b)(ii)(11)),
                           (without regard to any attempted reduction or
                           discontinuance of such incentive compensation).

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                           The amount of such payment and/or grants shall be
                           determined as of the date of termination and shall be
                           paid and/or issued as promptly as practicable and in
                           no event later than thirty (30) days after such
                           termination.

                                    (4)      Employer shall also maintain in
                           full force and effect for the Executive's continued
                           benefit (and, to the extent applicable, the continued
                           benefit of her dependents) all of the employee
                           benefits (including, not limited to, coverage under
                           any medical and insurance plans, programs or
                           arrangements) to which he would have been entitled
                           under all employee benefit plans, programs or
                           arrangements maintained by Employer if Executive had
                           remained in the employ of Employer for eighteen (18)
                           months (twenty-four (24) months if such termination
                           is pursuant to subsection 3(b)(ii)(11)), (without
                           regard to any attempted reduction or discontinuance
                           of such benefits), or if such continuation is not
                           possible under the terms and provisions of such
                           plans, programs or arrangements, Employer shall
                           arrange to provide benefits at least equal to those
                           which Executive (and, to the extent applicable, his
                           dependents) would have been entitled to receive if he
                           had remained a participant in such plans, programs or
                           for such eighteen (18) month period (twenty-four (24)
                           months, if such termination is pursuant to subsection
                           3(b)(ii)(11)) )),(without regard to any attempted
                           reduction or discontinuance of such benefits)..

                                    (5)      Subject to this subsection
                           3(c)(ii), Section 17, and Executive's agreement to
                           repay, without set off, all amounts due Employer for
                           monies loaned Executive as set forth in Section 19,
                           this Agreement shall become null and void effective
                           as of the date of termination and Employer and
                           Executive shall have no further obligation hereunder
                           toward the other.

                           (iii)    PURSUANT TO SUBSECTION 3(b)(iii). Executive
                  acknowledges and agrees that in the event that this Agreement
                  terminates in accordance with subsection 3(b)(iii), that
                  Employer and Executive shall have no further obligation
                  hereunder toward the other except (1) for the payment of
                  salary, bonus, vacation, expenses and benefits, if any, which
                  have accrued but remain unpaid prior to and as of the
                  termination date, (2) as set forth in Section 17, and (3) for
                  Executive's agreement to repay, without set off, all amounts
                  due Employer for monies loaned Executive as set forth in
                  Section 19.

                           (iv)     SUBMISSION OF RESIGNATIONS BY EXECUTIVE.
                  Upon termination of this Agreement by either Employer or
                  Executive as set forth herein and the receipt by Executive of
                  (1) all cash amounts due him as set forth herein and (2) a
                  written representation signed by an authorized representative
                  of Employer that all non-cash obligations of Employer as set
                  forth herein have been fulfilled or, as the case may be, have
                  been commenced, Executive shall immediately submit Executive's
                  resignation for any and all offices or directorships of
                  Employer and/or any and all subsidiaries and affiliates of
                  Employer (the "Resignation") which Resignation shall have
                  retroactive application and effect to such termination date;
                  provided however that during such time period from the
                  effective date of such termination to the date

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                  Executive submits the Resignation, Executive acknowledges and
                  agrees that he does not have authority to bind Employer to any
                  contracts or commitments and agrees not to create any
                  obligation for Employer or bind or attempt to bind Employer in
                  any manner whatsoever. Executive also acknowledges that he
                  shall have no supervisory or managerial responsibility or
                  authority from and after the effective date of the termination
                  of this Agreement, regardless of whether he submits the
                  Resignation or not, and agrees not to involve himself in any
                  activities of Employer, except as may be requested by an
                  authorized officer of Employer.

         4.       TOTAL COMPENSATION

         While employed under this Agreement and in consideration of the
services to be rendered by Executive pursuant hereto, Executive shall receive
the following amounts/benefits as the sole and total compensation for the
performance of his duties and obligations under this Agreement:

                  (a)      BASE CASH SALARY. A salary at the rate of Four
         Hundred Twenty Thousand Dollars (US$420,000) per annum (the "Base Cash
         Salary"), which shall be deemed to accrue from day to day, payable in
         accordance with Employer's standard payroll practices and procedures;

                  (b)      BONUS. A bonus calculated in accordance with the
         plans or programs established by Employer from time to time payable in
         accordance with Employer's standard payroll practices and procedures;
         provided that any such bonuses whenever earned and paid shall be
         determined without regard to any material gains and losses which occur
         outside of the scope of Employer's ordinary operating business unless
         any such plans or programs explicitly include such material gains and
         losses within the determination of any such bonuses;

                  (c)      STOCK OPTIONS. Stock option grants or stock awards in
         accordance with the plans or programs established by Employer from time
         to time;

                  (d)      INCENTIVE COMPENSATION. Participation in Employer's
         incentive compensation plans and/or programs, including, but not
         limited to, receipt of employer contributions to the Universal
         Electronics Inc. 401(K) and Profit Sharing Plan and the right to
         receive stock awards and to exercise stock options under Employer's
         various stock option plans and/or such other plans and/or programs
         which are established from time to time;

                  (e)      BENEFITS. The benefits provided by Employer to its
         executive employees generally, including without limitation, the
         benefits and perquisites included under the Universal Electronics Inc.
         group family health insurance program, which includes comprehensive
         medical insurance, dental insurance, group disability, group life
         insurance, and executive bonus (supplemental life); provided that the
         benefits provided to Executive shall be no less extensive than that
         provided him immediately prior to the date of this Agreement;

                  (f)      VACATION. Four (4) weeks (twenty (20) working days)
         vacation with pay, determined and carried over in accordance with the
         policies and procedures set forth within

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         Employer's policy manual in effect from time to time which are equally
         applicable to all of Employer's executive employees;

                  (g)      OTHER PERQUISITES. Such other employee benefits and
         perquisites that are provided by Employer to executives generally,
         provided that the other perquisites provided to Executive shall be no
         less extensive than the most extensive perquisites provided to any
         other executive employee of the Employer;

                  (h)      D&O INSURANCE. Director and Officer Liability
         insurance in a reasonably sufficient amount;

                  (i)      DISCRETIONARY BONUS. Such other amounts of
         compensation and/or bonus which is determined by Employer from time to
         time;

                  (j)      REVIEWS. The total amount of compensation to be paid
         and/or provided to Executive shall be reviewed by the Board of
         Directors, or such committee thereof, of Employer as of the first day
         of each calendar year while this Agreement is in force and effect. In
         no event shall such review result in a reduction or discontinuance of
         the amount of compensation paid and/or provided to Executive hereunder
         except if such reduction or discontinuance occurs by reason of law or
         loss of tax deductibility to the Employer with respect to the
         contributions to such plans, or are discontinued as a matter of the
         Employer's policy applied equally to all participants.

         5.       ADJUSTMENTS IN CASE OF EXCESS PARACHUTE PAYMENTS

         In the event that the aggregate present value (determined in accordance
with applicable federal, state and local income tax law, rules and regulations)
of all payments to be made and benefits to be provided to Executive under this
Agreement and/or under any other plan, program or arrangement maintained or
entered into by Employer or any of its subsidiaries shall result in "excess
parachute payments" to him within the meaning of Section 280G of the Internal
Revenue Code of 1986, as amended (the "Code"), or any comparable provision of
successor legislation, which subject him to the Excise Tax under Section 4999 of
the Code or any comparable provision of successor legislation, Employer shall
pay to Executive an additional amount (the "gross-up payment") calculated so
that the net amount received by him after deduction of the Excise Tax and of all
federal, state and local income taxes upon the gross-up payment shall equal the
payments to be made and the benefits to be provided to him under this Agreement.
For purposes of determining the amount of the gross-up payment, Executive shall
be deemed to pay federal, state and local income taxes at the highest marginal
rates thereof in the calendar year in which the gross-up payment is to be made,
net of the maximum reduction in federal income taxes obtainable from deduction
of such state and local taxes. The computations required by this Section 5 shall
be made by the independent public accountants then regularly retained by
Employer, in consultation with tax counsel selected by and acceptable to
Executive. Employer shall pay all of its accountants' fees and the lesser of (i)
one-half of Executive's tax counsel's fees or (ii) $2,500.

         6.       REIMBURSEMENT FOR BUSINESS RELATED EXPENSES

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         Employer shall reimburse Executive for all reasonable expenses incurred
and paid by him in connection with Employer's business in accordance with
Employer's policy manual in effect from time to time.

         7.       INTEREST

         In the event any payment to Executive under this Agreement is not paid
within five (5) business days after it is due, such payment shall thereafter
bear interest at the prime rate from time to time in effect at Bank of America,
Los Angeles, California; provided however, that this provision shall not excuse
the timely payment of such sums required by this Agreement.

         8.       NOTICES

WRITTEN NOTICES TO BE GIVEN UNDER THIS AGREEMENT SHALL BE PERSONALLY DELIVERED
                  OR SENT BY OVERNIGHT COURIER (SUCH AS FEDERAL EXPRESS, DHL OR
                  UPS AND THE LIKE) OR BY REGISTERED OR CERTIFIED MAIL, RETURN
                  RECEIPT REQUESTED, TO THE ADDRESSES SET FORTH BELOW:

         To Employer:
         Universal Electronics Inc.
         6101 Gateway Drive
         Cypress, California 90630
         Attn.: Corporate Secretary

         With a required copy to:
         Universal Electronics Inc.
         6101 Gateway Drive
         Cypress, California 90630
         Attn: The Board of Directors

         To Executive:
         Mr. Paul D. Arling
         At his last known address as reflected in Employer's records

         9.       SEVERABILITY

         If any one or more of the provisions contained in this Agreement shall
be invalid, illegal or unenforceable in any respect under applicable law, the
validity, legality and enforceability of the remaining provisions contained
herein shall not, in any way, be ineffective or impaired thereby.

         10.      GOVERNING LAW

         This Agreement shall be governed by the law of the state of California
without regard to the conflicts of laws provisions of the state of California.

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         11.      WAIVER

         The failure of either party to insist in any one or more instances on
strict performance of any of this Agreement's provisions, or to exercise or
enforce any right, remedy or obligation under this Agreement, shall not be
construed as a waiver or relinquishment of any right, remedy or obligation, and
the right, remedy or obligation shall continue in full force and affect.

         12.      ENTIRE AGREEMENT AND MODIFICATION

         This Agreement, together with that certain Nonrecourse Secured
Promissory Note described more fully in Section 19 of this Agreement, sets forth
the entire agreement of the parties concerning the employment of Executive by
the Employer and any oral or written statements, representations, agreements or
understandings made or entered into prior to or contemporaneously with the
execution of this Agreement, including without limitation the Prior Executive
Employment Agreement, are hereby rescinded, revoked, and rendered null and void
by the parties. This Agreement may be modified only by a written instrument duly
executed by each party hereto.

         13.      ASSIGNMENT

         This Agreement shall be binding upon the parties hereto, their
respective heirs, personal representatives, executors, administrators,
successors and assigns. Any such assignee or successor of Employer shall, within
ten (10) business days after receipt of a written request by Executive, send to
Executive its acknowledgment and agreement that such assignee or successor
expressly assumes all of Employer's obligations under this Agreement as if such
assignee or successor was the original employer and the term "Employer" as used
herein shall include any such assignee or successor.

         14.      INTERPRETATION OF AGREEMENT

         The parties have cooperated in the drafting and preparation of this
Agreement. Therefore, the parties hereto agree that, in any construction to be
made of the Agreement the same shall not be construed against any of the parties
by reason of its drafting or the identity of its preparer. Each of the parties
hereto has carefully read this Agreement and has been given the opportunity to
have it reviewed by legal counsel and negotiate its terms.

         15.      SPECIFIC OBLIGATIONS OF THE EXECUTIVE

         In addition to the general duties set forth herein, Executive shall use
his reasonable efforts for the benefit of Employer by whatever business
activities Employer finds reasonably appropriate to maintain and improve
Employer's standing in the community generally and among current and prospective
customers, including such entertainment for business purposes as Executive and
Employer mutually consider appropriate. Executive shall undertake business
development endeavors as reasonably directed by Employer.

         16.      NONDISCLOSURE AND NONAPPROPRIATION OF INFORMATION AND
NONCOMPETITION

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                  (a)      Executive recognizes and acknowledges that while
         employed by Employer, he has and will have access to, learn, be
         provided with and, in some cases, prepare and create certain
         confidential, proprietary business information and/or trade secrets for
         Employer, including, but not limited to, lists, files and forms, all of
         which are of substantial value to Employer and its business.
         Notwithstanding any other provision of this Agreement, Employer's
         confidential, proprietary business information and/or trade secrets do
         not include any information (i) which is in the public domain at the
         time Employer discloses it to Executive; (ii) which, after Employer
         discloses it to Executive, becomes part of the public domain through
         publication or otherwise, other than by Executive's act; (iii) which
         was in Executive's possession prior to its disclosure to Executive by
         the Employer; or (iv) which Executive receives from a third party
         having the right to make such disclosure, without restriction on the
         disclosure or use thereof. In this connection, Executive expressly
         covenants and agrees, during his employment with Employer, to:

                        (i)         Hold in a fiduciary capacity and not reveal,
                  communicate, use or cause to be used for his own benefit or
                  divulge any trade secrets, or other proprietary right now or
                  hereafter owned by the Employer;

                       (ii)         Not sell, exchange or give away, or
                  otherwise dispose of any trade secrets now or hereafter owned
                  by Employer, whether the same shall or may have been
                  originated or discovered by Employer or otherwise;

                      (iii)         Not reveal, divulge or make known to any
                  person, firm, corporation or other entity any trade secret of
                  Employer, except as required to do so by law, regulation,
                  subpoena, or court order, provided, however, that to the
                  extent that Executive can, Executive shall first give written
                  notice to Employer so that Employer may seek an appropriate
                  protective order;; and

                       (iv)         Not reveal, divulge or make known to any
                  person (other than his spouse, attorney, tax advisors,and/or
                  accountant), firm, company or corporation any of the terms of
                  this Agreement, unless required to do so by law, regulation,
                  subpoena, or court order and provided that it shall not be a
                  breach of this Agreement for Executive to present this
                  Agreement under seal to any court or arbitral tribunal called
                  upon to enforce it.

                  (b)      To protect the legitimate business interests of
         Employer from unfair competition by Employee, Employee expressly
         covenants and agrees that during his employment with Employer and
         continuing thereafter for a period of two (2) years, Employee shall
         not, directly or indirectly:

                           (i)      Solicit, interfere with or endeavor to
                  entice away from Employer any person, firm, company or
                  corporation that, at the time Employee's employment with
                  Employer ceased, was doing business with Employer and
                  accounted for ten percent (10%) or more of Employer's gross
                  revenue as determined by Employer's book and records; and

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                           (ii)     Solicit for hire, either directly or
                  indirectly, or hire as a result of such solicitation, any key
                  employee of Employer, except that Executive may hire any such
                  key employee so long as such hiring was made as a result of a
                  general solicitation of employment through typical
                  solicitation means, such as advertisements and the like, or
                  such solicitation was initiated by such key employee.

                  (c)      Executive further covenants and agrees to return to
         Employer either before or immediately upon his termination of
         employment with Employer any and all written information, material or
         equipment that constitutes, contains or relates to Employer's trade
         secrets and which relate to Employer's business which are in
         Executive's possession, custody and control, whether confidential or
         not, including any and all copies thereof which may have been made by
         or for Executive. Executive shall maintain no copies thereof after
         termination of his employment.

         17.      SURVIVAL OF OBLIGATIONS

         In addition to those specific provisions of Section 3, which by their
express terms survive the termination of this Agreement under certain
circumstances, the terms and conditions and obligations of the parties as
contained or described in Sections 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17,
18, 19, and 20 shall survive the termination of this Agreement and,
notwithstanding such termination, shall remain fully binding on the parties
hereto.

         18.      ARBITRATION

         Except for any claim or dispute in which equitable relief under this
Agreement is sought, any disagreement, dispute or controversy concerning whether
there has been Just Cause, Good Reason or breach of any of the terms of this
Agreement shall be settled exclusively and finally by arbitration. The
arbitration shall be administered by the American Arbitration Association in
accordance with its National Rules for the Resolution of Employment Disputes
then in effect (the "AAA Rules"). The arbitration shall be conducted in Los
Angeles, California, or in such other city as the parties to the dispute may
designate by mutual consent. The arbitral tribunal shall consist of three
arbitrators (or such lesser number as may be agreed upon by the parties)
selected according to the procedure set forth in the AAA Rules, with the
chairman of the arbitral tribunal selected in accordance with the AAA Rules.
Except as otherwise set forth in this Agreement, the fees and expenses of the
arbitral tribunal in connection with such arbitration shall be borne by the
parties to the dispute as shall be determined by the arbitral tribunal.

         19.      RELOCATION LOAN MADE TO EXECUTIVE

                  On or about April 22, 1999, Employer loaned the principal sum
of $200,000 to Executive, which loan is evidenced by that certain Nonrecourse
Secured Promissory Note signed by Executive in favor of Employer dated April 22,
1999 and notarized on April 28, 1999 (the "Note"), together with that certain
Deed of Trust with Assignment of Rents (Short Form) signed by Executive and
Executive's spouse for the benefit of Employer dated April __, 1999 and
notarized on April 28, 1999 (the "Deed"), copies of which are attached hereto as
Exhibit A. Executive represents and warrants that immediately prior to the
execution of this Agreement, he was not in default or in any

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other way in breach of any of the terms of the Note or the Deed. Executive
hereby agrees, acknowledges and reaffirms (i) his obligations to Employer
pursuant to the Note and the Deed, (ii) that any reference made within the Note
and/or the Deed to the "Executive Employment Agreement" shall mean this
Agreement and not the Prior Executive Employment Agreement, and (iii) that
except as specifically modified by this Agreement, the Note and the Deed shall
be and remain in full force and effect in accordance with their respective terms
and Executive shall fully perform all of his obligations under the Note and the
Deed. So long as Executive is not in default or in any other way in breach of
any of the terms of the Note or the Deed, Employer shall, on each December 15
during the term of such Note and on the payment of principal of the Note, pay to
Executive an amount equal to 1.045 times the amount of interest due by Executive
under the Note as of each of such dates (the "Interest Compensation"),
regardless of whether Executive is employed by Employer on such dates. Such loan
and such Interest Compensation is in addition to all amounts to be paid and/or
reimbursed to Executive pursuant to Employer's Executive Relocation Policy

                         * * * * * * * * * * * * * * * *
                      Signatures contained on the next page

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         IN WITNESS WHEREOF, the parties have executed the Agreement as of the
Effective Date

Signed and acknowledged in                          UNIVERSAL ELECTRONICS INC.
the presence of:

____________________________                   By:_____________________________
Corporate Secretary                               An Authorized Member of the
                                                  Compensation Committee of the
                                                  Board of Directors

                                               PAUL D. ARLING

____________________________                   ________________________________
                                               Signature

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                                    EXHIBIT A

                   COPY OF NONRECOURSE SECURED PROMISSORY NOTE
                                       AND
               DEED OF TRUST WITH ASSIGNMENT OF RENTS (SHORT FORM)

                             PURSUANT TO SECTION 19

[Note: See Prior Executive Employment Agreement]

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