Document:

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                                                                     Exhibit 4.5

                           UNIVERSAL ELECTRONICS INC.
                            1999 STOCK INCENTIVE PLAN
                        To Be Effective January 28, 1999

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                                TABLE OF CONTENTS

Section 1.  General Purpose of Plan; Definitions..........................4

Section 2.  Administration................................................5

Section 3.  Number of Shares of Stock Subject to Plan.....................6

Section 4.  Eligibility...................................................7

Section 5.  Stock Options.................................................7

Section 6.  Stock Appreciation Rights....................................10

Section 7.  Restricted Stock Units and Performance Stock Units...........11

Section 8.  Amendment and Termination....................................12

Section 9.  Unfunded Status of Plan......................................13

Section 10. General Provisions...........................................13

Section 11. Effective Date of Plan.......................................14

Section 12. Term of Plan.................................................15

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                           UNIVERSAL ELECTRONICS INC.
                            1999 STOCK INCENTIVE PLAN

SECTION 1. GENERAL PURPOSE OF PLAN; DEFINITIONS.

         The name of this Plan is the Universal Electronics Inc. 1999 Stock
Incentive Plan (the "Plan"). The purpose of this Plan is to enable the
Corporation (as hereinafter defined) and its Subsidiaries (as hereinafter
defined) to obtain and retain competent personnel who will contribute to the
Corporation's success by their ability, ingenuity and industry and to provide
incentives to the participating officers and key employees which are related to
increases in stockholder value and will therefore inure to the benefit of all
stockholders of the Corporation.

         For purposes of this Plan, the following terms shall be defined as set
forth below:

                  (a) "Award" means any grant under this Plan in the form of
         Stock Options, Stock Appreciation Rights, Performance Stock Units,
         Restricted Stock Units or any combination of the foregoing.

                  (b) "Board" means the Board of Directors of the Corporation.

                  (c) "Code" means the Internal Revenue Code of 1986, as amended
         from time to time, or any successor thereto.

                  (d) "Committee" means the Compensation Committee or any other
         committee the Board may subsequently appoint to administer this Plan.
         The Committee shall be composed entirely of directors who meet the
         qualifications referred to in Section 2 of this Plan.

                  (e) "Corporation" means Universal Electronics Inc., a
         corporation incorporated under the laws of the State of Delaware (or
         any successor corporation).

                  (f) "Disability" means an event of illness or other incapacity
         of Optionee resulting in Optionee's failure or inability to discharge
         Optionee's duties as an employee of the Corporation, any Subsidiary or
         any Related Entity for ninety (90) or more days during any period of
         120 consecutive days.

                  (g) "Eligible Employee"' means an employee of the Corporation,
         any Subsidiary or any Related Entity as described in Section 4 of this
         Plan.

                  (h) "Fair Market Value" means, as of any given date, with
         respect to any Awards granted hereunder, the mean of the high and low
         trading price of the Stock on such date as reported on The Nasdaq Stock
         Market or if the Stock is not then traded on The Nasdaq Stock Market,
         on such other national securities exchange on which the Stock is
         admitted to trade or, if none, on the National Association of
         Securities Dealers Automated Quotation System if the Stock is admitted
         for quotation thereon; provided, however, that if any such system,
         exchange or quotation system is closed on any day on which Fair Market
         Value is to be determined, Fair Market Value shall be determined as of
         the first day immediately proceeding such day on which such system,
         exchange or quotation system was open for trading; provided, further,
         that in all other circumstances, "Fair Market Value" means the value
         determined by the Committee after obtaining an appraisal by one or more
         independent appraisers meeting the requirements of regulations issued
         under Section 170(a) (1) of the Code.

                  (i) "Incentive Stock Option" means any Stock Option intended
         to qualify as an "incentive stock option" within the meaning of Section
         422 of the Code.

                  (j) "Non-Employee Director" shall have the meaning set forth
         in Rule 16b-3 ("Rule 16b-3"), as promulgated by the Securities and
         Exchange Commission under the Securities Exchange Act of 1934, as
         amended from time to time (the "Exchange Act"), or any successor
         definition adopted by the Securities and Exchange Commission.

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                  (k) "Nonqualified Stock Option" means any Stock Option that is
         not an Incentive Stock Option.

                  (l) "Optionee" means a Participant granted a Stock Option
         pursuant to Section 5 of this Plan which remains outstanding.

                  (m) "Participant" means any Eligible Employee selected by the
         Committee, pursuant to the Committee's authority in Section 2 of this
         Plan, to receive Awards.

                  (n) "Performance Stock Unit" means the right to receive one
         share of Stock as set forth in an Award granted pursuant to Section 7
         of this Plan.

                  (o) "Related Entity" means any corporation, joint venture or
         other entity, domestic or foreign, other than a Subsidiary, in which
         the Corporation owns, directly or indirectly, a substantial equity
         interest.

                  (p) "Restricted Stock Unit" means the right to receive one
         share of Stock as set forth in an Award granted pursuant to Section 7
         of this Plan.

                  (q) "Retirement" means (i) retirement from active employment
         under a retirement plan of the Corporation, any Subsidiary or Related
         Entity or under an employment contract with any of them or (ii)
         termination of employment at or after age 55 under circumstances which
         the Committee, in its sole discretion, deems equivalent to retirement.

                  (r) "Stock" means. the common stock, par value $0.01 per
         share, of the Corporation.

                  (s) "Stock Appreciation Right" means the right pursuant to an
         Award granted under Section 6 of this Plan, (i) in the case of a
         Related Stock Appreciation Right (as defined in Section 6 of this
         Plan), to surrender to the Corporation all or a portion of the related
         Stock Option and receive an amount equal to the excess of the Fair
         Market Value of one share of Stock as of the date such Stock Option or
         portion thereof is surrendered over the option price per share
         specified in such Stock Option, multiplied by the number of shares of
         Stock in respect of which such Stock Option is being surrendered and
         (ii) in the case of a Freestanding Stock Appreciation Right (as defined
         in Section 6 of this Plan) and receive an amount equal to the excess of
         the Fair Market Value of one share of Stock as of the date of exercise
         over the price per share specified in such Freestanding Stock
         Appreciation Right, multiplied by the number of shares of Stock in
         respect of which such Freestanding Stock Appreciation Right is being
         exercised.

                  (t) "Stock Option" means any option to purchase shares of
         Stock granted pursuant to Section 5 of this Plan.

                  (u) "Subsidiary" means any corporation in an unbroken chain of
         corporations beginning with the Corporation, if each of the
         corporations (other than the last corporation in the unbroken chain)
         owns stock possessing 50916 or more of the total combined voting power
         of all classes of stock in one of the other corporations in the chain.

SECTION 2. ADMINISTRATION.

         This Plan shall be administered by the Committee, composed solely of
two or more directors who are Non-Employee Directors, who shall be appointed by
the Board and who shall serve at the pleasure of the Board. In the event that a
Committee has not been appointed or in the Board's sole discretion, this Plan
shall be administered by the Board which shall have all of the power and
authority of the Committee set forth below. The Committee shall have the power
and authority in its sole discretion to grant Awards pursuant to the terms and
provisions of this Plan.

         In particular, the Committee shall have the full authority, not
inconsistent with this Plan:

                  (a) to select Participants;

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                  (b) to determine whether and to what extent Awards are to be
         granted to Participants hereunder,

                  (c) to determine the number of shares of Stock to be covered
         by each such Award granted hereunder, but in no case shall such number
         be in the aggregate greater than that allowed under this Plan;

                  (d) to approve or ratify transactions by Participants
         involving acquisitions from the Corporation or dispositions to the
         Corporation of equity securities of the Corporation made pursuant to
         the terms of this Plan;

                  (e) to determine the terms and conditions of any Award granted
         hereunder (including, without limitation, (i) the restrictive periods
         applicable to Restricted Stock Unit Awards and (ii) the performance
         objectives and periods applicable to Performance Stock Unit Awards);

                  (f) to waive compliance by a Participant with any obligation
         to be performed by such Participant under any Award and to waive any
         term or condition of any such Award (provided, however, that no such
         waiver shall detrimentally affect the rights of the Participant without
         such Participant's consent); and

                  (g) to determine the terms and conditions which shall govern
         all written agreements evidencing the Awards.

         The Committee shall have the authority to adopt, alter and repeal such
administrative rules, guidelines and practices governing this Plan as it shall,
from time to time deem advisable; to interpret the provisions of this Plan and
the terms and conditions of any Award issued, expired, terminated, canceled or
surrendered under this Plan (and any agreements relating thereto); and to
otherwise supervise the administration of this Plan.

         All decisions made by the Committee pursuant to the provisions of this
Plan and as to the terms and conditions of any Award (and any agreements
relating thereto) shall be final and binding on all persons, including the
Corporation and the Optionees.

SECTION 3. NUMBER OF SHARES OF STOCK SUBJECT TO PLAN.

         The total number of shares of Stock reserved and available for issuance
under this Plan shall be three hundred and fifteen thousand (315,000). Such
shares of Stock may consist, in whole or in part, of authorized and unissued
shares of Stock or issued shares of Stock reacquired by the Corporation at any
time, as the Board may determine.

         To the extent that (a) a Stock Option expires or is otherwise
terminated, canceled or surrendered without being exercised (including, without
limitation, in connection with the grant of a replacement option) or (b) any
Restricted Stock Unit Award or Performance Stock Unit Award granted hereunder
expires or is otherwise terminated or is canceled, the shares of Stock
underlying such Stock Option or subject to such Restricted Stock Unit Award or
Performance Stock Unit Award shall again be available for issuance in connection
with future Awards under this Plan. Upon the exercise of a Related Stock
Appreciation Right (as defined in Section 6 of this Plan), the Stock Option, or
the part thereof to which such Related Stock Appreciation Right is related,
shall be deemed to have been exercised for the purpose of the limitation on the
number of shares of Stock in respect of which the Related Stock Appreciation
Right was exercised.

         In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, spin-off, or other change in corporate
structure or capitalization affecting the Stock, the Committee shall make an
equitable adjustment or substitution in the number and class of shares reserved
for issuance under this Plan, the number and class of shares covered by
outstanding Awards and the option price per share of Stock Options or the
applicable price per share specified in Stock Appreciation Rights to reflect the
effect of such change in corporate structure or capitalization on the Stock,
provided, however, that any fractional shares resulting from such adjustment
shall be eliminated; provided further, however, that if by reason of any such
change in corporate structure or capitalization a Participant holding a
Restricted Stock Unit

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Award or Performance Stock Unit Award shall be entitled, subject to the terms
and conditions of such Award, to additional or different shares of any security,
the issuance of such additional or different shares shall thereupon be subject
to all of the terms and conditions (including restrictions and performance
criteria) which were applicable to such Award prior to such change in corporate
structure or capitalization; and, provided, further, however, that unless the
Committee in its sole discretion determines otherwise, any issuance by the
Corporation of shares of stock of any class or securities convertible into
shares of stock of any class shall not affect, and no such adjustment or
substitution by reason thereof shall be made with respect to, the number or
class of shares reserved for issuance under this Plan, the number or class of
shares covered by outstanding Awards or any option price or applicable price.

SECTION 4. ELIGIBILITY.

         Officers and other key employees of the Corporation, its Subsidiaries
and its Related Entities who are responsible for or contribute to the
management, growth or profitability of the business of the Corporation, its
Subsidiaries or its Related Entities shall be eligible to be granted Awards;
provided however, with respect to an employee of a Related Entity, that such
person was an employee of the Corporation, a Subsidiary or, if originally an
employee of the Corporation or a Subsidiary, of another Related Entity
immediately prior to becoming employed by such Related Entity and accepted
employment with such Related Entity at the request of the Corporation or a
Subsidiary. The Participants under this Plan shall be selected, from time to
time, by the Committee, in its sole discretion, from among those Eligible
Employees.

SECTION 5. STOCK OPTIONS.

                  (a) Grant and Exercise. Stock Options may be granted either
         alone or in addition to other Awards granted under this Plan. Any Stock
         Option granted under this Plan shall be in such form as the Committee
         may, from time to time, approve, and the terms and conditions of Stock
         Option Awards need not be the same with respect to each Optionee. Each
         Optionee shall enter into a Stock Option agreement ("Stock Option
         Agreement") with the Corporation, in such form as the Corporation shall
         determine, which agreement shall set forth, among other things, the
         option price of the option, the term of the option and conditions
         regarding exercisability of the option granted thereunder.

                           (i) Nature of Options. The Committee shall have the
                  authority to grant any Participant either Incentive Stock
                  Options, Nonqualified Stock Options or both types of Stock
                  Options (in each case with or without Stock Appreciation
                  Rights), except that the Committee shall not grant any
                  Incentive Stock Options to an employee of a Related Entity.
                  Any Stock Option which does not qualify as an Incentive Stock
                  Option, or the terms of which at the time of its grant provide
                  that it shall not be treated as an Incentive Stock Option,
                  shall constitute a Nonqualified Stock Option.

                           (ii) Exercisability. Subject to such terms and
                  conditions as shall be determined by the Committee in its sole
                  discretion at or after the time of grant, Stock Options shall
                  be exercisable from time to time to the extent of 33% of the
                  number of shares of Stock covered by the Stock Option on and
                  after the first anniversary and before the second anniversary
                  of the date of grant of the Stock Option, to the extent of 67%
                  of the number of shares of Stock covered by the Stock Option
                  on and after the second anniversary and before the third
                  anniversary of the date of grant of the Stock Option, and to
                  the extent of 100% of the number of shares of Stock covered by
                  the Stock Option on and after the third anniversary and before
                  the expiration of the stated term of the Stock Option (or to
                  such lesser extent as the Committee in its sole discretion
                  shall determine at the time of grant or to such greater extent
                  as the Committee in its sole discretion shall determine at or
                  after the time of grant).

                           (iii) Method of Exercise. Stock Options may be
                  exercised by giving written notice of exercise delivered in
                  person or by mail as required by the terms of any Stock Option
                  Agreement at the Corporation's

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                  principal executive office, specifying the number of shares of
                  Stock with respect to which the Stock Option is being
                  exercised, accompanied by payment in full of the option price
                  in cash or its equivalent as determined by the Committee in
                  its sole discretion. If requested by the Committee, the
                  Optionee shall deliver to the Corporation the Stock Option
                  Agreement evidencing the Stock Option being exercised for
                  notation thereon of such exercise and return thereafter of
                  such agreement to the Optionee. As determined by the Committee
                  in its sole discretion at or after the time of grant, payment
                  of the option price in full or in part may also be made in the
                  form of shares of unrestricted Stock already owned by the
                  Optionee (based on the Fair Market Value of the Stock on the
                  date the Stock Option is exercised); provided, however, that
                  in the case of an Incentive Stock Option, the right to make
                  payment of the option price in the form of already owned
                  shares of Stock may be authorized only at the time of grant.
                  The Committee also may allow cashless exercise as permitted
                  under Federal Reserve Board's Regulation T, subject to
                  applicable securities law restrictions, or by any other means
                  which the Committee determines to be consistent with this
                  Plan's purpose and applicable law. An Optionee shall generally
                  have the rights to dividends or other rights of a stockholder
                  with respect to shares of Stock subject to the Stock Option
                  when the Optionee has given written notice of exercise, has
                  paid in full for such shares of Stock, and, if requested, has
                  made representations described in Section 11(a) of this Plan.

                  (b) Terms and Conditions. Stock Options granted under this
         Plan shall be subject to the following terms and conditions and shall
         contain such additional terms and conditions, not inconsistent with the
         terms of this Plan, as the Committee shall deem desirable.

                           (i) Option Price. The option price per share of Stock
                  purchasable under a Stock Option shall be determined by the
                  Committee at the time of grant, but shall be not less than
                  100% of the Fair Market Value of the Stock on the date of the
                  grant; provided, however, that if any Participant owns or is
                  deemed to own (by reason of the attribution rules of Section
                  424(d) of the Code) more than 10% of the combined voting power
                  of A classes of stock of the Corporation or any Subsidiary
                  when an Incentive Stock Option is granted to such Participant,
                  the option price of such Incentive Stock Option (to the extent
                  required by the Code at the time of grant) shall be not less
                  than 110% of the Fair Market Value of the Stock on the date
                  such Incentive Stock Option is granted.

                           (ii) Option Term. The term of each Stock Option shall
                  be fixed by the Committee at the time of grant, but no Stock
                  Option shall be exercisable more than ten years after the date
                  such Stock Option is granted, provided, however, that if any
                  Participant owns or is deemed to own (by reason of the
                  attribution rules of Section 424 (d) of the Code) more than
                  10% of the combined voting power of all classes of stock of
                  the Corporation or any Subsidiary when an Incentive Stock
                  Option is granted to such Participant, such Stock Option (to
                  the extent required by the Code at time of grant) shall not be
                  exercisable more than five years from the date such Incentive
                  Stock Option is granted.

                           (iii) Transferability of Options. Except as otherwise
                  determined by the Committee, no Stock Options shall be
                  transferable by the Optionee otherwise than by will or by the
                  laws of descent and distribution and all Stock Options shall
                  be exercisable, during the Optionee's lifetime, only by the
                  Optionee, or in the case of Optionee's legal incompetency,
                  only by Optionee's guardian or legal representative.

                           (iv) Option Exercise After Termination by Reason of
                  Death or Disability. If an Optionee's employment with the
                  Corporation, any Subsidiary or any Related Entity terminates
                  by reason of death or Disability, and Stock Option held by
                  such Optionee may thereafter be exercised for a period of one
                  year (or such shorter period as the Committee in its sole
                  discretion shall specify at or after the time of grant) from
                  the date of such termination or until the expiration of the
                  stated term if such Stock Option, whichever period is shorter,
                  to the

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                  extent to which the Optionee would on the date of termination
                  have been entitled to exercise the Stock Option (or to such
                  greater or lesser extent as the Committee in its sole
                  discretion shall determine at or after the time of grant). In
                  the event of a termination of employment by reason of death or
                  Disability, if an Incentive Stock Option is exercised after
                  the expiration of the exercise period that applies for
                  purposes of Section 422 of the Code, such Stock Option will
                  thereafter be treated as a Nonqualified Stock Option.

                           (v) Option Exercise After Termination Without Cause
                  or Constructive Termination. If an Optionee's employment with
                  the Corporation, any Subsidiary, or any Related Entity is
                  terminated, by the Corporation or such Subsidiary or such
                  Related Entity, without "Cause" (as such term is defined
                  within the Stock Option Agreement) or in the event of
                  "Constructive Termination" (as such term is defined within the
                  Stock Option Agreement) of the Optionee's employment with the
                  Corporation or such Subsidiary or such Related Entity is so
                  terminated the Committee, in its sole discretion, may permit
                  the Optionee to exercise any Stock Option held by such
                  Optionee, to the extent not theretofore exercised, in whole or
                  in part with respect to all remaining shares covered by the
                  Stock Option at any time prior to the expiration of the Stock
                  Option (or such shorter period as the Committee in its sole
                  discretion shall specify at or after the time of grant), or to
                  such greater or lesser extent as the Committee in it sole
                  discretion shall determine at or after the time of grant. An
                  Optionee's acceptance of employment, at the request of the
                  Corporation or a Subsidiary, with a Related Entity (or
                  acceptance of employment, at the request of the Corporation or
                  a Subsidiary, with any other Related Entity), shall not be
                  deemed a termination of employment hereunder and any Stock
                  Option held by Optionee may be exercised thereafter to the
                  extent that the Optionee would on the date of exercise have
                  been entitled to exercise such Stock Option if such Optionee
                  had continued to be employed by the Corporation or such
                  Subsidiary (or such initial Related Entity), provided that the
                  Optionee has been in continuous employ with the Related Entity
                  to which such Optionee has moved from the date of acceptance
                  of employment therewith until the date of exercise. In the
                  event of termination of employment by the Corporation, any
                  Subsidiary or any Related Entity without Cause or in the event
                  of Constructive Termination of the Optionee's employment or
                  the acceptance of employment with a Related Entity, if an
                  Incentive Stock Option is exercised after the expiration of
                  the exercise period that applies for purposes of Section 422
                  of the Code, such Stock Option will thereafter be treated as a
                  Nonqualified Stock Option.

                           (vi) Option Exercise After Termination Due To
                  Resignation. If an Optionee's employment with the Corporation,
                  any Subsidiary, or any Related Entity terminates for any
                  reason not set forth in Sections 5 (iv) or (v) above, the
                  Committee, in its sole discretion, may permit the Optionee to
                  exercise any Stock Option held by such Optionee to the extent
                  such Option was exercisable on the date of such termination
                  (or to such greater or lesser extent as the Committee in its
                  sole discretion shall determine at or after the time of grant)
                  for a period of ninety (90) days from the date of such
                  termination (or such shorter period as the Committee in its
                  sole discretion shall specify at or after the time of grant).

                           (vii) Other Termination. Except as otherwise provided
                  in this Section 5 of this Plan, or as determined by the
                  Committee in its sole discretion, if an Optionee's employment
                  with the Corporation, any Subsidiary or any Related Entity
                  terminates, all Stock Options held by the Optionee will
                  terminate.

                           (viii) Annual Limit on Incentive Stock Options. To
                  the extent required for incentive stock option treatment under
                  Section 422 of the Code, the aggregate Fair Market Value
                  (determined as of the date of Incentive Stock Option is
                  granted) of the shares of Stock with respect to which
                  Incentive Stock Options granted under this Plan and all other
                  option plans of the Corporation or any Subsidiary become
                  exercisable for

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                  the first time by an Optionee during any calendar year shall
                  not exceed $100,000; provided, however, that if the aggregate
                  Fair Market Value (so determined) of the shares of Stock
                  covered by such options exceeds $100,000 during any year in
                  which they become exercisable, such options with a Fair Market
                  Value in excess of $100,000 will be Nonqualified Stock
                  Options.

SECTION 6. STOCK APPRECIATION RIGHTS.

                  (a) Grant and Exercise. Stock Appreciation Rights may be
         granted either in conjunction with all or part of any Stock Option
         granted under this Plan ("Related Stock Appreciation Rights") or alone
         ("Freestanding Stock Appreciation Rights") and, in either case, in
         addition to other Awards granted under this Plan. Participants shall
         enter into a Stock Appreciation Rights Agreement with the Corporation
         if requested by the Committee, in such form as the Committee shall
         determine.

                           (i) Time of Grant. Related Stock Appreciation Rights
                  related to a Nonqualified Stock Option may be granted either
                  at or after the time of the grant of such Nonqualified Stock
                  Option. Related Stock Appreciation Rights related to such an
                  Incentive Stock Option may be granted only at the time of the
                  grant of such Incentive Stock Option. Freestanding Stock
                  Appreciation Rights may be granted at any time.

                           (ii) Exercisability. Related Stock Appreciation
                  Rights shall be exercisable only at such time or times and to
                  the extent that the Stock Options to which they relate shall
                  be exercisable in accordance with the provisions of Section
                  5(a)(ii) of this Plan and Freestanding Stock Appreciation
                  Rights shall be exercisable, subject to such terms and
                  conditions as shall be determined by the Committee in its sole
                  discretion at or after the time of grant, from time to time,
                  to the extent that Stock Options are exercisable in accordance
                  with the provisions of Section 5(a)(ii) of this Plan. A
                  Related Stock Appreciation Right granted in connection with an
                  Incentive Stock Option may be exercised only if and when the
                  Fair Market Value of the Stock subject to the Incentive Stock
                  Option exceeds the option price of such Stock Option.

                           (iii) Method of Exercise. Stock Appreciation Rights
                  shall be exercised by a Participant by giving written notice
                  of exercise delivered in person or by mail as required by the
                  terms of any agreement evidencing the Stock Appreciation Right
                  at the Corporation's principal executive office, specifying
                  the number of shares of Stock in respect of which the Stock
                  Appreciation Right is being exercised. If requested by the
                  Committee, the Participant shall deliver to the Corporation
                  the agreement evidencing the Stock Appreciation Right being
                  exercised and, in the case of a Related Stock Appreciation
                  Right, the Stock Option Agreement evidencing any related Stock
                  Option, for notation thereon of such exercise and return
                  thereafter of such agreements to the Participant.

                           (iv) Amount Payable. Upon the exercise of a Related
                  Stock Appreciation Right, an Optionee shall be entitled to
                  receive an amount in cash or shares of Stock equal in value to
                  the excess of the Fair Market Value of one share of Stock on
                  the date of exercise over the option price per share specified
                  in the related Stock Option, multiplied by the number of
                  shares of Stock in respect of which the Related Stock
                  Appreciation Rights shall have been exercised, with the
                  Committee having in its sole discretion the right to determine
                  the form of payment. Upon the exercise of a Freestanding Stock
                  Appreciation Right, a Participant shall be entitled to receive
                  an amount in cash or shares of Stock equal in value to the
                  excess of the Fair Market Value of one share of Stock on the
                  date of exercise over the price per share specified in the
                  Freestanding Stock Appreciation Right, which shall be not less
                  than 100% of the Fair Market Value of the Stock on the date of
                  Grant, multiplied by the number of shares of Stock in respect
                  of which the Freestanding Stock Appreciation Rights shall have
                  been exercised, with the Committee having in its sole
                  discretion the right to determine the form of payment

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                  (b) Terms and Conditions. Stock Appreciation Rights under this
         Plan shall be subject to the following terms and conditions and shall
         contain such additional terms and conditions not inconsistent with the
         terms of this Plan, as the Committee shall deem desirable.

                           (i) Terms of Stock Appreciation Rights. The term of a
                  Related Stock Appreciation Right shall be the same as the term
                  of the related Stock Option. A Related Stock Appreciation
                  Right or applicable portion thereof shall terminate and no
                  longer be exercisable upon the exercise, termination,
                  cancellation or surrender of the related Stock Option, except
                  that, unless otherwise provided by the Committee in its sole
                  discretion at or after the time of grant, a Related Stock
                  Appreciation Right granted with respect to less than the full
                  number of shares of Stock covered by a related Stock Option
                  shall terminate and no longer be exercisable if and to the
                  extent that the number of shares of Stock covered by the
                  exercise, termination, cancellation or surrender of the
                  related Stock Option exceeds the number of shares of Stock not
                  covered by the Related Stock Appreciation Right.

                           The term of each Freestanding Stock Appreciation
                  Right shall be fixed by the Committee, but no Freestanding
                  Stock Appreciation Right shall be exercisable more than ten
                  years after the date such right is granted.

                           (ii) Transferability of Stock Appreciation Rights.
                  Stock Appreciation Rights shall be transferable only when and
                  to the extent that a Stock Option would be transferable under
                  Section 5 (b) (iii) of this Plan.

                           (iii) Termination of Employment. In the event of the
                  termination of employment of an Optionee holding a Related
                  Stock Appreciation Right, such right shall be exercisable to
                  the same extent that the related Stock Option is exercisable
                  after such termination. In the event of the termination of
                  employment of the holder of a Freestanding Stock Appreciation
                  Right, such right shall be exercisable to the same extent that
                  a Stock Option with the same terms and conditions as such
                  Freestanding Stock Appreciation Right would have been
                  exercisable in the event of the termination of employment of
                  the holder of such Stock Option.

SECTION 7. RESTRICTED STOCK UNITS AND PERFORMANCE STOCK UNITS.

                  (a) Grant. Awards of Restricted Stock Units or Performance
         Stock Units may be granted either alone or in addition to other Awards
         granted under this Plan. Each Restricted Stock Unit or Performance
         Stock Unit represents the right to receive, subject to the terms and
         provisions of this Plan and any agreements evidencing such Awards, one
         share of Stock. If the Committee in its sole discretion so determines
         at the time of grant, a Participant to whom a Restricted Stock Unit
         Award or Performance Stock Unit Award has been granted may be credited
         with an amount equivalent to all cash dividends ("Dividend
         Equivalents") that would have been paid to the holder of such
         Restricted Stock Unit Award or Performance Stock Unit Award if one
         share of Stock for every Restricted Stock Unit or Performance Stock
         Unit awarded had been issued to the holder on the date of grant of such
         Restricted Stock Unit Award or Performance Stock Unit Award. The
         Committee shall determine the terms and conditions of each Restricted
         Stock Unit Award and Performance Stock Unit, including without
         limitation, the number of Restricted Stock Units or Performance Stock
         Units to be covered by such Awards, the restricted period applicable to
         Restricted Stock Unit Awards and the performance objectives applicable
         to Performance Stock Unit Awards. The Committee in its sole discretion
         may prescribe terms and conditions applicable to the vesting of such
         Restricted Stock Unit Awards or Performance Stock Unit Awards in
         addition to those provided in this Plan. The Committee shall establish
         such rules and guidelines governing the crediting of Dividend
         Equivalents, including the timing, form of payment and payment
         contingencies of Dividend Equivalents, as it may deem desirable. The
         Committee in its sole discretion may at any time accelerate the time at
         which the restrictions on all or any part of a Restricted Stock Unit
         Award lapse or deem the performance objectives with respect to all or
         any part of a Performance Stock Unit Award to

                                      E-11

<PAGE>   11

         have been attained. Restricted Stock Units Awards and Performance Stock
         Unit Awards shall not be transferable otherwise than by will or by the
         laws of descent and distribution. Shares of Stock shall be deliverable
         upon the vesting of Restricted Stock Unit Awards and Performance Stock
         Unit Awards for no consideration other than services rendered or, in
         the Committee's sole discretion, the minimum amount of consideration
         other than services (such as the par value of Stock) required to be
         received by the Corporation in order to assure compliance with
         applicable state law, which amount shall not exceed 10% of the Fair
         Market Value of such shares of Stock on the date of issuance. Each such
         Award shall be evidenced by a Restricted Stock Unit agreement
         ("Restricted Stock Unit Award Agreement") or Performance Stock Unit
         Award agreement ("Performance Stock Unit Award Agreement").

                  (b) Terms and Conditions. Unless otherwise determined by the
         Committee in its sole discretion:

                           (i) a breach of any term or condition provided in
                  this Plan, the Restricted Stock Unit Award Agreement or the
                  Performance Stock Unit Award Agreement or established by the
                  Committee with respect to such Restricted Stock Unit Award or
                  Performance Stock Unit Award will cause a cancellation of the
                  unvested portion of such Restricted Stock Unit Award or
                  Performance Stock Unit Award (including any Dividend
                  Equivalents credited in respect thereof) and the Participant
                  shall not be entitled to receive any consideration in respect
                  of such cancellation; and

                           (ii) termination of such holder's employment with the
                  Corporation, any Subsidiary or any Related Entity prior to the
                  lapsing of the applicable restriction period or attainment of
                  applicable performance objectives will cause a cancellation of
                  the unvested portion of such Restricted Stock Unit Award or
                  Performance Stock Unit Award (including any Dividend
                  Equivalents credited in respect thereof) and the Participant
                  shall not be entitled to receive any consideration in respect
                  of such cancellation.

                  (c) Completion of Restriction Period and Attainment of
         Performance Objectives. To the extent that restrictions with respect to
         any Restricted Stock Unit Award lapse or performance objectives with
         respect to any Performance Stock Unit Award are attained and provided
         that other applicable terms and conditions have been satisfied:

                           (i) such of the Restricted Stock Units or Performance
                  Stock Units as to which restrictions have lapsed or
                  performance objectives have been attained shall become vested
                  and the Committee shall cause to be issued and delivered to
                  the Participant a stock certificate representing a number of
                  shares of Stock equal to such number of Restricted Stock Units
                  or Performance Stock Units, and, subject to Section 11(a)
                  hereof, free of all restrictions; and

                           (ii) any Dividend Equivalents credited in respect of
                  such Restricted Stock Units or Performance Stock Units shall
                  become vested to the extent that such Restricted Stock Units
                  or Performance Stock Units shall have become vested and the
                  Committee shall cause such Dividend Equivalents to be
                  delivered to the Participant.

         Any such Restricted Stock Unit Award or Performance Stock Unit Award
(including any Dividend Equivalents credited in respect thereof) that shall not
have become vested at the end of the applicable restricted period or the period
given for the attainment of performance objectives shall expire, terminate and
be canceled and the Participant shall not thereafter have any rights with
respect to the Restricted Stock Units or Performance Stock Units (or any
Dividend Equivalents credited in respect thereto) covered thereby.

SECTION 8. AMENDMENT AND TERMINATION.

         The Board may amend, alter, or discontinue this Plan, but no amendment,
alteration, or discontinuation shall be made which would impair the rights of a
Participant under any Award theretofore granted without such Participant's
consent, or

                                      E-12

<PAGE>   12

which, without the approval of the stockholders of the Corporation (where such
approval is necessary to satisfy then applicable requirements of Rule 16b-3
under the Exchange Act, any Federal tax law relating to Incentive Stock Options
or applicable state law), would:

                  (a) except as provided in Section 3 of this Plan, increase the
         total number of shares of Stock which may be issued under this Plan;

                  (b) except as provided in Section 3 of this Plan, decrease the
         option price of any Stock Option to less than 100% of the Fair Market
         Value on the date of the grant of the Option;

                  (c) change the class of employees eligible to participate in
         this Plan; or

                  (d) extend (i) the period during which Stock Options may be
         granted or (ii) the maximum period of any Award under Sections 5(b)(ii)
         or 6(b)(i) of this Plan.

         Except as restricted herein with respect to Incentive Stock Options,
the Committee may amend or alter the terms and conditions of any Award
theretofore granted, and of any agreement evidencing such Award, prospectively
or retroactively, but no such amendment or alteration shall impair the rights of
any Optionee under such Award or agreement without such Optionee's consent.

SECTION 9. UNFUNDED STATUS OF PLAN.

         This Plan is intended to constitute an "unfunded" plan. With respect to
any payments not yet made and due to a Participant by the Corporation, nothing
contained herein shall give any such Participant any rights that are greater
than those of a general unsecured creditor of the Corporation.

SECTION 10. GENERAL PROVISIONS.

                  (a) The Committee may require each Optionee purchasing shares
         of Stock pursuant to a Stock Option to represent to and agree with the
         Corporation in writing that such Optionee is acquiring the shares of
         Stock without a view to distribution thereof. All certificates for
         shares of Stock delivered under this Plan and, to the extent
         applicable, all evidences of ownership with respect to Dividend
         Equivalents delivered under this Plan, shall be subject to such
         stock-transfer orders and other restrictions as the Committee may deem
         advisable under the rules, regulations and other requirements of the
         Securities and Exchange Commission, any stock exchange upon which the
         Stock is then listed or quotation system on which the Stock is admitted
         for trading and any applicable Federal or state securities law, and the
         Committee may cause a legend or legends to be put on any such
         certificates to make appropriate reference to such restrictions.

                  (b) Nothing contained in this Plan shall prevent the Board
         from adopting other or additional compensation arrangements, subject to
         stockholder approval if such approval is required, and such
         arrangements may be either generally applicable or applicable only in
         specific cases. The adoption of this Plan shall not confer upon any
         employee of the Corporation, any Subsidiary or any Related Entity any
         right to continued employment with the Corporation, any Subsidiary or
         any Related Entity as the case may be, nor shall it interfere in any
         way with the right of the Corporation, any Subsidiary or any Related
         Entity to terminate the employment of any of its employees at any time.

                  (c) Each Participant shall be deemed to have been granted an
         Award on the date the Committee took action to grant such Award under
         this Plan or such later date as the Committee in its sole discretion
         shall determine at the time such grant is authorized.

                  (d) Unless the Committee otherwise determines, each
         Participant shall, no later than the date as of which the value of an
         Award first becomes includable in the gross income of the Participant
         for federal income tax purposes, pay to the Corporation, or make
         arrangements satisfactory to the Committee regarding payment of,

                                      E-13

<PAGE>   13

         any federal, state or local taxes of any kind required by law to be
         withheld with respect to the Award. The obligations of the Corporation
         under this Plan shall be conditional on such payment or arrangements
         and the Corporation (and, where applicable, its Subsidiaries and its
         Related Entities) shall, to the extent permitted by law, have the right
         to deduct any such taxes from any payment of any kind otherwise due to
         the Participant. A Participant may elect to have such tax withholding
         obligation satisfied, in whole or in part, by (i) authorizing the
         Corporation to withhold from shares of Stock to be issued upon the
         exercise of a Stock Option or upon the vesting of any Restricted Stock
         Unit Award or the Performance Stock Unit Award a number of shares of
         Stock with an aggregate Fair Market Value that would satisfy the
         withholding amount due, or (ii) transferring to the Corporation shares
         of Stock owned by the Participant with an aggregate Fair Market Value
         that would satisfy the withholding amount due. With respect to any
         Participant who is an executive officer, the election to satisfy the
         tax withholding obligations relating to the exercise of a Stock Option
         or to the vesting of a Restricted Stock Unit Award or Performance Stock
         Unit Award in the manner permitted by this subsection (d) shall be made
         during the "window period" as described within the Corporation Insider
         Trading Policy unless otherwise determined in the sole discretion of
         the Committee of the Board.

                  (e) No member of the Board or the Committee, nor any officer
         or employee of the Corporation acting on behalf of the Board or the
         Committee, shall be personally liable for any action, failure to act,
         determination or interpretation taken or made in good faith with
         respect to this Plan, and all members of the Board or the Committee and
         each and any officer or employee of the Corporation acting on their
         behalf shall, to the extent permitted by law, be fully indemnified and
         protected by the Corporation in respect of any such action, failure to
         act, determination or interpretation.

                  (f) This Plan is intended to satisfy the conditions of Rule
         16b-3 under the Exchange Act, and all interpretations of this Plan
         shall, to the extent permitted by law, regulations and rulings, be made
         in a manner consistent with and so as to satisfy the conditions of Rule
         16b-3 under the Exchange Act. The term "executive officer" as used in
         this Plan means any director or officer who is subject to the
         provisions of Section 16(b) of the Exchange Act. Any provisions of this
         Plan or the application of any provision of this Plan inconsistent with
         Rule 16b-3 under the Exchange Act shall be inoperative and shall not
         affect the validity of this Plan.

                  (g) In interpreting and applying the provisions of this Plan,
         any Stock Option granted as an Incentive Stock Option pursuant to this
         Plan shall, to the extent permitted by law, regulations and rulings be
         construed as, and any ambiguity shall be resolved in favor of
         preserving its status as, an "incentive stock option" within the
         meaning of Section 422 of the Code. Once an Incentive Stock Option has
         been granted, no action by the Committee that would cause such Stock
         Option to lose its status under the Code as an "incentive stock option"
         shall be effective as to such Incentive Stock Option unless taken at
         the request of or with the consent of the Participant. Notwithstanding
         any provision to the contrary in this Plan or in any Incentive Stock
         Option granted pursuant to this Plan, if any change in law or any
         regulation or ruling of the Internal Revenue Service shall have the
         effect of disqualifying any Stock Option granted under this Plan which
         is intended to be an "incentive stock option" within the meaning of
         Section 422 of the Code, the Stock Option granted shall nevertheless
         continue to be outstanding as and shall be deemed to be a Nonqualified
         Stock Option under this Plan.

                  (h) Notwithstanding any other provision herein to the
         contrary, the maximum number of shares with respect to which Awards may
         be granted to the same Participant under this Plan may not exceed, in
         the aggregate, 266,666 shares, except to the extent of adjustments
         authorized by Section 3 of this Plan.

SECTION 11. EFFECTIVE DATE OF PLAN.

         This Plan shall be effective January 28, 1999, subject to the approval
by the affirmative vote of the holders of a majority of the shares of Stock of
the Corporation present in person or by proxy at the meeting of stockholders on
that date.

                                      E-14

<PAGE>   14

SECTION 12. TERM OF PLAN.

         No Award shall be granted under this Plan on or after the tenth
anniversary of the effective date of this Plan; provided, however, that Awards
granted prior to such tenth anniversary may extend beyond that date.

                                      E-15<PAGE>   1

                                                                     Exhibit 4.6

                             STOCK OPTION AGREEMENT

         THIS STOCK OPTION AGREEMENT is made as of the date set forth on the
signature page hereof by and between Universal Electronics Inc., a Delaware
corporation (the "Corporation") and the undersigned Optionee (the "Optionee").
As used in this Agreement, the term "Corporation" shall include, where
applicable, any and all of its subsidiaries or related entities.

         WHEREAS, the stockholders of the Corporation at the annual shareholder
meeting and the Board of Directors of the Corporation (the "Board") have
approved the Universal Electronics Inc. 1999 Stock Incentive Plan (the "Plan");

         WHEREAS, the Board has designated the Compensation Committee of the
Board (the "Committee") to serve as the Committee to administer the Plan; and

         WHEREAS, the Committee has determined that the Optionee, as an Eligible
Employee, should be granted a stock option ("Option") under the Plan to purchase
shares of the Corporation's common stock, par value $0.01 per share (the
"Stock"), upon the terms and conditions set forth in this Agreement;

         NOW, THEREFORE, the parties, intending to be legally bound, hereto
agree as follows:

         1. GRANT AND DESIGNATION OF OPTION. Upon the execution and delivery of
this Agreement and the related Stock Option Certificate of even date herewith
(the "Certificate"), the Corporation hereby grants to the Optionee the Option to
purchase the aggregate number of shares of Stock set forth on the Certificate at
the price per share ("Option Price") further set forth on the Certificate.

         2. TERM AND EXERCISE OF OPTION. Subject to earlier termination,
acceleration or cancellation of the Option as provided herein, the term of the
Option shall be for that period of time also set forth on the Certificate (the
"Option Period") and, subject to the provisions of this Agreement, the Option
shall be exercisable at such times and as to such number of shares as determined
on the schedule set forth on the Certificate.

         3. METHOD OF EXERCISE. The Option may be exercised by written notice to
the Corporation (the "Exercise Notice") at its offices at 6101 Gateway Drive,
Cypress, California 90630 to the attention of the Secretary of the Corporation.
The Exercise Notice shall state (a) the election to exercise the Option, (b) the
total number of full shares in respect to which it is being exercised, and (c)
shall be signed by the person or persons exercising the Option. The Exercise
Notice shall be accompanied by the Certificate and a certified or cashier's
check for the full amount of the purchase price of such shares plus an amount
necessary to satisfy Optionee's obligations pursuant to Paragraph 11, or as may
be permitted by the Committee, by certificates for shares of Stock which have
been owned by the Optionee for more than six months prior to the date of
exercise and which have a fair market value of the date of exercise equal to the
purchase price, or by a combination of such methods of payment. Upon receipt of
the foregoing, the Corporation shall issue the shares of Stock as to which the
Option has been duly exercised and shall return the Certificate, duly endorsed
to reflect such exercise, to the Optionee. In a cashless exercise, as permitted
under Federal Reserve Board's Regulation T, subject to applicable securities law
restrictions, Optionee must notify the Corporation as to the manner of the
transaction.

         4. OPTIONEE'S COVENANTS AND REPRESENTATIONS.

            (a) Optionee represents and warrants that any and all shares
acquired through the exercise of rights under the Option granted pursuant to
this Agreement will be acquired for Optionee's own account and not with a view
to, or present intention of, distribution thereof in violation of the Securities
Act of 1933, as amended and the rules and regulations promulgated thereunder
(the "1933 Act") and will not be disposed of in contravention of the 1933 Act.

            (b) Optionee acknowledges that Optionee is able to bear the economic
risk of the investment in any and all shares of Stock acquired through the
exercise of

                                      E-16

<PAGE>   2

rights under the Option for an indefinite period of time because the Stock has
not been registered under the 1933 Act and, therefore, cannot be sold unless
subsequently registered under the 1933 Act or an exemption from such
registration is available.

            (c) Optionee has reviewed this Agreement and has had an opportunity
to ask questions and receive answers concerning the terms and conditions of the
offering of Stock and has had full access to such other information concerning
the Corporation as Optionee has requested.

            (d) Optionee agrees that if Optionee should dispose of any Shares
acquired upon the exercise of an Incentive Stock Option, including a disposition
by sale, exchange, gift or transfer of legal title within two (2) years after
the date such Option was granted to the Optionee or within one (1) year after
the transfer of such Shares to the Optionee upon the exercise of such Option,
the Optionee shall notify the Company within three (3) days after such
disposition.

         5. RESTRICTION ON EXERCISE. This Option may not be exercised if the
issuance of such shares upon such exercise or the method of payment of
consideration for such shares would constitute a violation of any applicable
federal or state securities or other law or regulation. As a condition to the
exercise of this Option, the Corporation may require Optionee to make any
representation and warranty to the Corporation as may be required by any
applicable law or regulation. All exercises of the Option must be for full
shares of Stock only.

         6. EFFECT OF TERMINATION OF EMPLOYMENT. Except as set forth in
Paragraphs 7 and 8 below and subject to the limitations set forth in
subparagraph 9(b), in the event that Optionee's employment with the Corporation
ceases for any reason, Optionee may (or Optionee's estate or representative, in
the event of Optionee's death during the applicable exercise period as set forth
in Paragraph 8), during the earlier of (a) the ninety (90) day period following
such cessation of employment or (b) the remaining term of the Option Period,
exercise the Option to the extent such Option was exercisable on the date such
employment ceased and, on such date, that portion of the Option which was not
exercisable shall automatically terminate without further action by the parties
hereto and, in all events, to the extent not exercised, the Option shall
terminate in its entirety at the end of business on the last day of the
applicable exercise period as set forth in this Paragraph 6; PROVIDED, HOWEVER,
the Committee, in its sole discretion, may approve the full vesting to Optionee
(or Optionee's estate or representative, in the event of Optionee's death) in
the Option and, in such event, to the extent not previously exercised, the
Option shall be exercisable in whole or in part with respect to all remaining
shares of Stock covered the Option and may be exercised by Optionee (or
Optionee's estate or representative, in the event of Optionee's death) at any
time prior to the expiration of the original Option Period.

         7. EFFECT OF TERMINATION OF EMPLOYMENT WITHOUT CAUSE OR DUE TO
CONSTRUCTIVE TERMINATION.

            (a) In the event that Optionee's employment with the Corporation is
terminated by the Corporation without "Cause" (as such term is defined in
subparagraph 7(b) below) or in the event of "Constructive Termination" (as such
term is defined in subparagraph 7(c) below), Optionee shall become immediately
fully vested in the Option without further action by the parties hereto, and, to
the extent not previously exercised, shall be exercisable in whole or in part
with respect to all remaining shares of Stock covered by the Option and may be
exercised by Optionee (or Optionee's estate or representative, in the event of
Optionee's death) at any time prior to the expiration of the original Option
Period, subject to the limitations set forth in subparagraph 9(b).

            (b) For purposes of this Agreement, "Cause" shall mean (i) the
willful and continued failure by Optionee to substantially perform Optionee's
duties with the Corporation (other than a failure resulting from Optionee's
death or "Total Disability" (as such term is defined in subparagraph 7(e)
below)) after a demand for substantial performance is delivered to Optionee by
the Corporation which specifically identifies the manner in which it is believed
that Optionee has not substantially performed Optionee's duties; (ii) the
willful engaging by Optionee in gross misconduct materially and demonstrably
injurious to the property or business of the Corporation; or (iii) Optionee's
commission of fraud, misappropriation or a felony. For purposes of this
definition of "Cause", no act or failure to act on Optionee's part will be
considered "willful" unless done, or omitted to be done, by Optionee not in good
faith

                                      E-17
<PAGE>   3

and without a reasonable belief that Optionee's action or omission was in the
interests of the Corporation or not opposed to the best interests of the
Corporation.

            (c) For purposes of this Agreement, "Constructive Termination" shall
occur on that date on which Optionee resigns from employment with the
Corporation, if such resignation occurs within eighteen (18) months after the
occurrence of (i) the failure of Optionee to be elected or re-elected or
appointed or reappointed to such office that Optionee holds (other than as a
result of a termination for "Cause") if Optionee is an officer of the
Corporation and the office which Optionee holds is one to which Optionee is
elected according to the Corporation's By-laws; (ii) a change in Optionee's
functions, duties, or responsibilities such that Optionee's position with the
Corporation becomes substantially less in responsibility, importance, or scope;
or (iii) a "Change in Control" (as such term is defined in subparagraph 7(d)
below).

            (d) For purposes of this Agreement, a "Change in Control" shall be
deemed to occur when (i) any "person" or "group" (as such terms are used in
Sections 3(a), 13(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 (1) a trustee or other fiduciary holding securities under any
employee benefit plan of the Corporation or (2) 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 immediately prior to
any such occurrence, 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"); (ii) individuals who are members of
the Board on the date of this Agreement and any individual who becomes a member
of the Board hereafter whose nomination for election as a director was approved
by the affirmative vote of a majority of such directors (including any
non-director added pursuant to this clause), cease to constitute a majority of
the members of the Board; (iii) there occurs a 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 of the Corporation
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; (iv) there occurs a sale or
transfer or disposition of all or substantially all of the Corporation's assets
to any other corporation or entity, other than 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 immediately prior to
such sale, transfer or disposition; or (v) the dissolution or liquidation of the
Corporation.

            (e) For purposes of this Agreement, "Total Disability" shall mean an
event of illness or other incapacity of Optionee resulting in Optionee's failure
or inability to discharge Optionee's duties as an employee of the Corporation
for ninety (90) or more days during any period of 120 consecutive days.

         8. EFFECT OF TERMINATION OF EMPLOYMENT DUE TO DEATH OR TOTAL
DISABILITY. In the event that Optionee's employment with the Corporation ceases
or is terminated due to Optionee's death or Total Disability, Optionee (or
Optionee's estate or representative, in the event of Optionee's death) may,
subject to the limitations set forth in subparagraph 9(b), during the earlier of
(a) the one (1) year period following such cessation or termination of
employment or (b) the remaining term of the Option Period, exercise the Option
to the extent such Option was exercisable on the date such employment ceased or
was terminated and, on such date, that portion of the Option which was not
exercisable shall automatically terminate without further action by the parties
hereto and, in all events, to the extent not exercised, the Option shall
terminate in its entirety at the end of business on the last day of the
applicable exercise period as set forth in this Paragraph 8; PROVIDED, HOWEVER,
the Committee, in its sole discretion, may approve the full vesting to Optionee
(or Optionee's estate or representative, in the event of Optionee's death) in
the Option and, in such event, to the extent not previously exercised, the
Option shall be exercisable in whole or in part with respect to all remaining
shares of Stock covered the Option and may be exercised by Optionee (or
Optionee's estate or representative, in the event of Optionee's death) at any
time prior to the expiration of the original Option Period.

                                      E-18

<PAGE>   4

         9. LIMITATIONS ON EXERCISE OF INCENTIVE STOCK OPTION.

         (a) Notwithstanding the foregoing, any Incentive Stock Option granted
pursuant to this Agreement is exercisable only to the extent that the aggregate
fair market value (determined at the time such Incentive Stock Option is
granted) of the Stock with respect to which such Incentive Stock Option first
become exercisable during any calendar year does not exceed $100,000 (the
"$100,000 Exercise Limitation"); PROVIDED, HOWEVER, that (i) if the aggregate
fair market value of the Stock with respect to which such Incentive Stock
Options first became exercisable exceeds the $100,000 Exercise Limitation the
maximum number of whole shares of Stock with an aggregate fair market value not
in excess of $100,000 shall be treated as Stock issued pursuant to an Incentive
Stock Option and the remaining aggregate fair market value in excess of such
amount shall be treated as Stock issued pursuant to a non-qualified stock option
and (ii) the $100,000 Exercise Limitation shall not apply if the Option no
longer qualifies as an Incentive Stock Option as a result of the failure of the
Optionee to exercise the Option within the three (3) month period contained in
subparagraph 9(b) below.

         (b) IN THE CASE OF AN INCENTIVE STOCK OPTION, THE OPTION MUST BE
EXERCISED IN FULL WITHIN THREE (3) MONTHS AFTER CESSATION OF EMPLOYMENT OR SUCH
OPTION WILL NO LONGER QUALIFY AS AN INCENTIVE STOCK OPTION AND SHALL THEREAFTER
BE, AND RECEIVE THE TAX TREATMENT APPLICABLE TO, A NON-QUALIFIED STOCK OPTION.

         10. RIGHT OF A STOCKHOLDER. Optionee shall not have any rights as a
stockholder with respect to any shares of Stock unless and until appropriate
certificates for such shares of such Stock are issued.

         11. WITHHOLDING OF TAXES. Whenever the Corporation is required to issue
shares of Stock upon exercise hereunder, the Corporation shall have the right to
require the recipient to remit in cash to the Corporation an amount sufficient
to satisfy any federal, state and/or local withholding tax requirements prior to
the delivery of any certificate or certificates for such shares of Stock.

         12. ADJUSTMENTS. In the event of any change in the outstanding shares
of Stock of the Corporation by reason of a stock dividend or distribution,
recapitalization, spin-off, merger, consolidation, split-up, combination,
exchange of shares or the like, the Committee shall adjust the number of shares
of Stock which may be issued under the Plan and shall provide for an equitable
adjustment of any outstanding Option or shares of Stock issuable pursuant to an
outstanding Option under the Plan.

         13. COMPLIANCE WITH CERTAIN LAWS AND REGULATIONS. If the Committee
shall determine, in its sole discretion, that the listing, registration or
qualification of the shares subject to the Option upon any securities exchange
or under any law or regulation, or that the consent or approval of any
governmental regulatory body is necessary or desirable in connection with the
granting of the Option or the acquisition of shares thereunder, the Optionee
shall supply the Committee or the Corporation, as the case may be, with such
certificates, representations and information as the Committee or the
Corporation, as the case may be, may request and shall otherwise cooperate with
the Corporation in obtaining any such listing, registration, qualification,
consent or approval.

         14. TRANSFERABILITY OF OPTION. The Option is not transferable by the
Optionee otherwise than by will or by the laws of descent and distribution and
is exercisable, during the Optionee's lifetime, only by the Optionee, or in the
case of Optionee's legal incompetency, only by Optionee's guardian or legal
representative.

         15. ADDITIONAL RESTRICTIONS ON TRANSFER. The certificates representing
the Stock purchased upon the exercise of the Option will bear the following
legend until such shares of Stock have been registered under an effective
registration statement under the 1933 Act:

         The securities represented by this certificate were originally issued
         on _____________________, _____, have not been registered under the
         Securities Act of 1933, as amended, or under the securities laws of any
         state or other jurisdiction (together, the "Securities Laws") and may
         not be offered for sale, sold or otherwise transferred or encumbered in
         the absence of compliance with such Securities Laws and until the
         issuer hereof shall have received from counsel acceptable to issuer a
         written

                                      E-19
<PAGE>   5

         opinion reasonably satisfactory to issuer that the proposed transaction
         will not violate any applicable Securities Laws.

         16. NOTICES. Any notice or demand provided for in this Agreement must
be in writing and must be either personally delivered, delivered by overnight
courier, or mailed by first class mail, to the Optionee at Optionee's most
recent address on file in the records of the Corporation, and to the Corporation
at the address set forth or established pursuant to Paragraph 3 or to such other
address or to the attention of such other person as the recipient party shall
have specified by prior written notice to the sending party. Any notice or
demand under this Agreement will be deemed to have been given when received.

         17. SEVERABILITY. This Agreement and each provision hereof shall be
valid and enforced to the fullest extent permitted by law. The invalidity or
unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision. Without limiting the
generality of the foregoing, if the scope of any provision contained in this
Agreement is too broad to permit enforcement to its fullest extent, such
provision shall be enforced to the maximum extent permitted by law, and the
parties hereby agree that such scope may be judicially modified accordingly.

         18. COMPLETE AGREEMENT. This Agreement and those documents expressly
referred to herein embody the complete agreement and understanding among the
parties and supersede and preempt any prior understandings, agreements or
representations by or among the parties, written or oral, which may have related
to the subject matter hereof in any way.

         19. COUNTERPARTS. This Agreement may be executed in separate
counterparts, each of which shall be deemed an original and all of which taken
together shall constitute one and the same agreement.

         20. SUCCESSORS AND ASSIGNS. This Agreement is intended to bind and
inure to the benefit of and be enforceable by Optionee, the Corporation and
their respective permitted successors and assigns (including personal
representatives, heirs and legatees), and is intended to bind all successors and
assigns of the respective parties, except that Optionee may not assign any of
Optionee's rights or obligations under this Agreement except to the extent and
in the manner expressly permitted hereby.

         21. REMEDIES. Each of the parties to this Agreement will be entitled to
enforce its rights under this Agreement specifically, to recover damages by
reason of any breach of any provision of this Agreement and to exercise all
other rights existing in its favor. The parties hereto agree and acknowledge
that money damages may not be an adequate remedy for any breach of the
provisions of this Agreement and that any party may, in its sole discretion,
apply to any court of law or equity of competent jurisdiction for specific
performance and/or injunctive relief in order to enforce or prevent any
violations of the provisions of this Agreement, without the necessity of posting
bond or any other security.

         22. WAIVER OR MODIFICATION. Any waiver or modification of any of the
provisions of this Agreement shall not be valid unless made in writing and
signed by the parties hereto. A waiver by either party of any breach of this
Agreement shall not operate as a waiver of any subsequent breach.

         IN WITNESS WHEREOF, the parties have executed this Agreement effective
on the ____ day of ______________, ______.

         OPTIONEE                                    UNIVERSAL ELECTRONICS INC.

         __________________________                  By:________________________
         Signature                                   Its:  Chairman and Chief
                                                           Executive Officer
         __________________________
         Print Name

                                      E-20
<PAGE>   6

Certificate Number:  ____

                           UNIVERSAL ELECTRONICS INC.
                            1999 STOCK INCENTIVE PLAN
                            STOCK OPTION CERTIFICATE
                            ------------------------

         THIS CERTIFIES THAT ____________has been awarded an OPTION to purchase
__________ (_____) shares of common stock, par value $0.01 per share (the
"Stock"), of UNIVERSAL ELECTRONICS INC. This Certificate is issued in accordance
with and is subject to the terms and conditions of the related Stock Option
Agreement of even date herewith (the "Agreement"). The number of shares of Stock
subject to an Incentive Stock Option, the number of shares of Stock subject to a
Non-qualified Stock Option, and the respective Option prices are as set forth
below:

         (a)      ____________________ (_____) shares of Stock shall be subject
                  to an Incentive Stock Option at an Option price of $_____ per
                  share; and

         (b)      ____________________ (_____) shares of Stock shall be subject
                  to a Non-qualified Stock Option at an Option price of $_____
                  per share.

         THIS OPTION is not transferable except in accordance with the terms and
conditions of the Agreement.

         THIS OPTION shall expire ten (10) years from the date of this
Certificate.

         THIS OPTION shall be exercisable as to all or a portion of the number
of shares set forth above as follows:

<TABLE>
<CAPTION>

                                Incentive Stock Option       Non-qualified Stock Option
On and After the Following    Maximum Percentage Taking       Maximum Percentage Taking
  Dates, But Prior to            Into Account Prior              Into Account Prior
     Expiration                      Exercises                         Exercises

<S>                                 <C>                               <C>
      __/__/__                          33%                               33%

      __/__/__                          67%                               67%

      __/__/__                         100%                              100%

</TABLE>

         IN WITNESS WHEREOF, UNIVERSAL ELECTRONICS INC. has caused this Stock
Option Certificate to be signed by its duly authorized officer the ____ day of
______, ____.

                                        UNIVERSAL ELECTRONICS INC.

                                        By:_____________________________________
                                        Its: Chairman and Chief Executive
                                             Officer

                                      E-21

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