Document:

Amended and Restated Employment Agreement - Garcia

 

Exhibit 10.231

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”), by and
between PAXSON COMMUNICATIONS MANAGEMENT COMPANY, INC., a Florida corporation
(“Paxson”), and Richard Garcia, an individual resident of the State of Florida
(“Employee”), is effective as of the date set forth on Schedule I annexed
hereto.

     In consideration of the mutual covenants and agreements contained herein,
the parties, hereby amend and restate the Employment Agreement to read in its
entirety as set forth herein:

SECTION 1. EMPLOYMENT

     1.01 Term of Employment. The term of this Agreement (the “Agreement
Term”) shall be deemed to have commenced as of the “Commencement Date” set
forth in Schedule I hereof, and shall continue until the third (3rd)
anniversary of the Commencement Date (as such date is extended from time to
time in accordance with the terms hereof, the “Scheduled Termination Date”),
unless the Agreement Term is extended or terminated sooner in accordance with
this Agreement. The Agreement Term and the then effective Scheduled
Termination Date shall automatically be extended by one year on the date (the
“Renewal Date”) which is the number of Severance Months specified on Schedule I
hereof prior to the then effective Scheduled Termination Date unless the
Company provides irrevocable written notice (a “Non-Renewal Notice”) to the
Employee not later than the last business day before the Renewal Date, that the
Company has elected not extend the Agreement Term beyond the then effective
Scheduled Termination Date.

     1.02 Duties. Employee acknowledges, agrees and accepts employment by
Paxson in the Titled Position (as defined in Schedule I annexed hereto) for the
various businesses operated by Paxson Communications Corporation (“PCC”) and
its subsidiaries and affiliates (collectively, the “Paxson Group”) and in such
capacity Employee shall be responsible for the performance of the duties of the
Titled Position and for such other executive and administrative duties as may
be designated from time to time by the Responsible Officer or the Chairman of
PCC. Employee shall be provided by Paxson suitable office space for Employee
in the “Employment Location”, as identified on Schedule I annexed hereto,
together with all reasonable support staff and secretarial assistance,
equipment, stationary, books and supplies, as determined by the Responsible
Officer. Employee shall use Employee’s best efforts during the term of
employment hereunder to further, enhance and develop the business of PCC, the
Paxson Group and any networks or stations it may own or operate. Subject to
the direction of the “Responsible Officer”, as identified in Schedule I annexed
hereto, Employee shall perform such duties as set forth in Schedule I annexed
hereto under “Employment Duties.” Except as expressly modified herein,
Employee shall be subject to all of the Paxson Group’s policies including
payola, plugola and conflicts of interest, as well as the following:

1

 

     (a) Employee will comply with all Paxson Group and professional
standards governing Employee’s objectivity in the performance of
Employee’s duties, including restrictions on outside activities,
investments, business interests, or other involvements which could
compromise Employee’s objectivity or create an impression of conflict of
interest. Employee will not knowingly, without the prior approval of
Employee’s Responsible Officer on behalf of Paxson, accept any gift,
compensation, or gratuity (which excludes business meals and
entertainment received by Employee in the ordinary course of business)
from any person or entity with which the Paxson Group or any of its
broadcast properties is or may be in competition or in any instance where
there is a stated or implied expectation of favorable treatment of that
person or entity. Employee will not, without the prior written approval
of Employee’s Responsible Officer, take advantage of any business
opportunity or situation or engage in any enterprise or venture of which
the Paxson Group may have an interest on his or her own behalf, if said
business opportunity or situation, enterprise or venture is related in
any way to or is similar to the business of the Paxson Group.

     (b) In performing the Employment Duties under this Agreement,
Employee shall conduct himself with due regard to social conventions,
public morals and standards of decency, and will not cause or permit any
situation or occurrence which would tend to degrade, scandalize, bring
into public disrepute, or otherwise lower the community standing of
Employee, or Paxson’s public image.

     1.03 Activities. Employee shall, except during vacation periods, periods
of illness, and leaves of absence approved by Paxson, devote full and undivided
business time, attention and energies to the duties and responsibilities
required by Paxson, as directed by the Responsible Officer. During the
Agreement Term, Employee shall not engage in any other business activity which
would conflict with Employee’s duties without the prior written approval of
Employee’s Responsible Officer on behalf of Paxson, which shall not be
unreasonably withheld; provided, however, that Paxson may withhold its consent
to any business activity by Employee that Paxson determines would directly
interfere, impair or hinder in any way Employee’s ability to perform or
otherwise satisfy Employee’s responsibilities and duties from time to time in
effect, as the holder of the Titled Position of the Paxson Group or otherwise,
under this Agreement.

     1.04 Delegation of Duties. Employee may not delegate the performance of
any of Employee’s obligations or duties under this Agreement, or assign any of
Employee’s rights under this Agreement, without the prior written consent of
Paxson, except that Employee may delegate duties to other employees of Paxson
where reasonable and customary in the ordinary course of Paxson’s business and
consistent with the performance of the Titled Position.

2

 

SECTION 2. COMPENSATION AND BENEFITS. Beginning on the Commencement Date,
Employee shall be compensated for the performance of the Employment Duties
performed under the terms hereof as follows:

     2.01 Base Salary and Annual Cash Bonus. As compensation for the services
performed by Employee hereunder, Employee shall receive a Base Salary and
Annual Cash Bonus, as follows:

     (a) Initial Base Salary. Paxson and Employee acknowledge and agree
that Employee’s current Base Salary in effect for the current Employment
Year shall be the per year amount set forth in Schedule I hereof. For
purposes of this Agreement, “Employment Year” means a calendar year ended
December 31.

     (b) Increase in Base Salary. For each Employment Year after the
current Employment Year (each such year a “Successive Employment Year”),
Employee’s Base Salary shall be subject to such increase, if any, for
each such Successive Employment Year as shall be as determined by the
Responsible Officer (subject to the approval of the Chairman of the Board
of PCC, and, if applicable, the Compensation Committee of the Board of
Directors of PCC).

     (c) Bonus. Employee shall be entitled to earn an annual bonus,
based upon Paxson Group performance and the Employee’s individual
performance, in the amount and on the terms described in Schedule I
annexed hereto.

     (d) Manner of Payment. Employee’s Base Salary shall be paid, at
Paxson’s option, either (i) in equal bi-monthly installments, or (ii) in
accordance with the customary payroll policies of Paxson with respect to
its management employees.

     2.02 Other Cash and Non-Cash Compensation. In addition to Employee’s
Base Salary, Employee may, as determined from time to time, in the sole
discretion of Paxson, be eligible to receive or participate in cash and
non-cash compensation programs, including, without limitation, annual and
special cash and non-cash bonus awards, grants of stock options, restricted
stock, “phantom-equity” and stock appreciation rights (collectively,
“Non-Cash Compensation”). Employee’s rights in respect of any Non-Cash
Compensation shall be governed under the terms of a separate document or
documents, if any Non-Cash Compensation is to be awarded to Employee. Under no
circumstance should this provision be deemed to constitute any express or
implied right, entitlement or interest of Employee to be awarded or participate
in, or obligation, agreement or requirement of Paxson, to award, provide or
offer to Employee, any form of Non-Cash Compensation, all of which rights,
entitlements, interests, obligations, agreements or understandings are hereby
expressly disclaimed.

3

 

     2.03 Business Expenses. Upon proper substantiation and documentation by
Employee, Paxson shall reimburse Employee promptly for all reasonable travel,
entertainment and other similar business expenses incurred by Employee in the
performance of Employee’s duties under this Agreement. Reimbursement of
expenses will be made in accordance with applicable policies of Paxson. All
extraordinary disbursements and expenditures by Employee, and any disbursements
and expenditures that are not provided for in any budget established by Paxson,
must be approved in advance by Paxson.

     2.04 Personal Time. Employee shall be entitled to the number of weeks of
personal time off in accordance with Paxson’s employee handbook as in effect
from time to time (but in no event less than 20 days).

     2.05 Benefits. The compensation specified above shall be exclusive of and
in addition to any benefits that may be available to Employee under any
employee pension plan, group life insurance plan, hospitalization plan, medical
service plan, death benefit plan, or any other employee benefit plan applicable
generally to the employees of Paxson, in accordance with their respective
positions, and which may be in effect at any time or from time to time during
the term of Employee’s employment.

     2.06 Withholding. Paxson shall be responsible for withholding from
Employee’s compensation FICA, FUTA and other payroll and income taxes, as
required by law and such other amounts as may be directed by Employee.

SECTION 3. TERMINATION OF EMPLOYMENT; PAYMENTS UPON TERMINATION

     3.01 Events. Employee’s employment shall terminate on the earliest of the
following dates:

     (a) Death. The date of Employee’s death.

     (b) Disability. The date Employee is terminated due to Disability.
“Disability” means that, in the opinion of the Company’s physicians,
Employee is unable by reason of illness or accident to perform the
essential functions of the Employment Duties for a period of more than
180 consecutive days.

     (c) Paxson Termination Without Cause. The date on which Employee’s
services hereunder to Paxson terminate as a result of a Paxson
Termination Without Cause. A “Paxson Termination Without Cause” means (1)
any termination of Employee by Paxson for any reason, including the
expiration of the Agreement Term after Paxson provides Employee a
Non-renewal Notice, other than a termination by Paxson for Disability
pursuant to Subsection 3.01(b) or a Paxson Termination for Cause pursuant
to any clause of Subsection 3.01(d) prior to a Change of Control, or
clauses (i), (iii), (iv), or (vi) of Subsection 3.01(d) within one year
after a Change of Control, and (2) a termination by Employee, on not less
than 30 days notice to Paxson, after Employee receives a Non-Renewal
Notice from Paxson under Section 1.01 hereof.

4

 

     (i) For purposes of this Agreement, a “Change of Control” will
occur if (a) none of Lowell W. Paxson, his estate, his wife, his
lineal descendants, or any trust created for the sole benefit of
any one or more of them during their lifetimes, or any combination
of any of the foregoing, shall (i) own, directly or indirectly, at
least thirty-five percent of the issued and outstanding capital
stock of PCC, or (ii) have voting control directly or indirectly,
equal to at least 51 percent of the issued and outstanding capital
stock of PCC entitled to vote in the election of the Board of
Directors of PCC; (b) the approval by the shareholders of PCC of a
reorganization, merger, or consolidation, in each case, with
respect to which persons who were shareholders of PCC immediately
prior to this reorganization, merger or consolidation do not,
immediately thereafter, own more than 50 percent of the combined
voting power entitled to vote generally in the election of
directors of the reorganized, merged or consolidated company’s (or
any successor entity’s) then outstanding securities; (c) a
liquidation or dissolution of PCC or of the sale of all or at least
80 percent of PCC’s assets; or (d) Lowell W. Paxson shall, by
written agreement with a third party, which shall include, without
limitation The National Broadcasting Company, Inc., cease to
exercise substantially all of his day-to-day control of PCC to the
extent permitted by the FCC rules and regulations, without such
agreement constituting a “transfer of control” under FCC rules and
regulations, it being understood that, without limitation, an
agreement or arrangement between Lowell W. Paxson and such third
party whereby Lowell W. Paxson and his affiliates receive more than
ninety percent (90%) of an agreed upon purchase price for the
Class B Common shares owned by Lowell W. Paxson and certain
affiliates of Lowell W. Paxson, shall be deemed to constitute an
agreement amounting to a Change of Control under this clause (d) of
this Subsection 3.01(c).

     (d) Paxson Termination for Cause. The date Employee is terminated by
Paxson pursuant to a Paxson Termination for Cause. A “Paxson Termination
for Cause” means a termination of Employee by Paxson resulting from any
of the following:

     (i) Employee (A) is charged with the commission of a felony,
(B) is convicted of two (2) offenses for operating a motor vehicle
while impaired by or under the influence of alcohol or illegal
drugs, (C) is charged with any criminal act with respect to
Employee’s employment (including any criminal act involving a
violation of the Communications Act of 1934, as amended, or
regulations promulgated by the Federal Communications Commission),
or (D) is charged with any act that materially threatens to result
in suspension, revocation, or adverse modification of any FCC
license of any broadcast
station owned by any affiliate of Paxson or would subject any
such broadcast station to fine or forfeiture;

5

 

     (ii) Employee’s willful act or failure to act, the intended or
reasonably foreseeable result of which would cause Paxson or any
Station to be in default under any material contract, lease or
other agreement, which conduct is contrary to his performance of
his Employment Duties or not authorized or confirmed by the
Responsible Officer;

     (iii) Employee’s dependence on alcohol or illegal drugs;

     (iv) Improper refusal by Employee to conduct Employee’s
business affairs or follow the legal policies and directives of the
Responsible Officer and failing to cure such failure as soon as
practicable and in any event within 30 days from receipt of written
notice setting forth the specifics of such unsatisfactory conduct;

     (v) Conduct which could be reasonably inferred to detract from
the public image of the Paxson Group and failing to cease such
conduct or commence to take reasonable curative action with respect
thereto requested by the Company or both, as soon as practicable
and in any event within 30 days from receipt of written notice
setting forth the specifics of such conduct;

     (vi) Employee’s misappropriation, conversion or embezzlement
of the assets of Paxson or any affiliate of Paxson;

     (vii) A material breach of this Agreement by Employee and
failing to cure such breach as soon as practicable and in any event
within 30 days from receipt of written notice setting forth the
specifics of such breach; or

     (viii) Any representation of Employee in Section 7 of this
Agreement being false when made.

     (e) Employee’s Voluntary Resignation. The date of Employee’s
Voluntary Resignation. A “Voluntary Resignation” means any resignation
by Employee other than Employee’s Termination for Good Reason, as set
forth in Subsection 3(f) of this Agreement, or Employee’s resignation
following Employee’s receipt of a Non-Renewal Notice from Paxson.

     (f) Employee’s Termination For Good Reason. The date of Employee’s
Termination for Good Reason. “Employee’s Termination for Good Reason”
means the termination of employment by Employee as a result of the
occurrence of any of the following events:

6

 

     (i) Paxson elects to change the place of employment to a
location not in the Employment Location specified on Schedule I
hereto; or

     (ii) Paxson fails to remedy a material breach of this
Agreement after thirty (30) days’ written notice from Employee,
setting forth the specifics of such breach.

     3.02 Payments Upon Termination. Following the termination of Employee’s
employment pursuant to this Section 3, Paxson shall have no further liability
to Employee, and no further payment shall be made to Employee, except to the
extent expressly provided for in this Subsection, as follows:

     (a) Termination Compensation For Death, Disability, Paxson
Termination Without Cause or Employee’s Termination for Good Reason. If
Employee’s employment is terminated as a result of Death, Disability, a
Paxson Termination Without Cause, or an Employee Termination for Good
Reason, under Subsections 3.1(a), (b), (c) or (f), respectively, within
thirty (30) days of termination, Employee (or, in the case of a
termination as a result of the death of Employee, the appropriate
representative of Employee’s estate) will be paid the following:

     (i) Employee will continue to receive the Employee’s Base
Salary then in effect for a period equal to the lesser of (x) the
number of Severance Months specified in Schedule I hereto or (y)
the remaining months under the term of this Agreement;

     (ii) A lump sum equal to any unpaid portion of any previously
awarded bonus;

     (iii) Employee’s bonus for the fiscal year in which the
termination occurs, pro-rated, if necessary, according to the
formula set forth in Schedule I, which bonus shall be payable in
full if and when bonus awards for such fiscal year commence to be
made to other members of senior management; and

     (iv) An amount in cash equivalent to the accrued but unused
personal time of Employee through the termination date; and

     (v) Without duplication of any of the foregoing, all Base
Salary, expenses and other payments or cash benefits due to
Employee through Employee’s termination date.

     In addition, Employee shall also be entitled to any benefits for which
Employee qualifies under any employee benefit plan available to Employee
(including, but not limited to any disability insurance, life insurance
and death benefits of the type described in Section 2.05). Employee
shall also be entitled to all rights to
continuation or conversion of benefits required by law to be offered to a
departing employee.

7

 

     (b) Termination Compensation for Paxson Termination for Cause or
Employee’s Voluntary Resignation. If Employee’s employment is terminated
as a result of a Paxson Termination for Cause or Employee’s Voluntary
Resignation, under Subsections 3.01(d) or (e), respectively, within
thirty (30) days of termination, Employee will be paid the following:

     (i) lump sum equal to unpaid portion of any previously awarded
bonus; and

     (ii) An amount in cash equivalent to the accrued but unused
personal time of Employee through the termination date; and

     (iii) Without duplication of any of the foregoing, all Base
Salary, expenses and other payments or cash benefits due to
Employee through Employee’s termination date.

In addition, Employee shall also be entitled to any benefits for which
Employee qualifies under any employee benefit plan available to Employee.
Employee shall also be entitled to all rights to continuation or
conversion of benefits required by law to be offered to a departing
employee.

     3.03 Notices of Termination; Effective Date of Termination. For all
terminations except in the case of Death, either Employee or Paxson, as the
case may be, shall give written notice of termination to the other. In the
case of any termination, other than a Paxson Termination for Cause, such notice
shall be effective not less than thirty (30) days after the date on which it is
received by the other party. Notice of a Paxson Termination for Cause may be
effective immediately.

SECTION 4. INTANGIBLES

     4.01 Memoranda, Notes and Records. All memoranda, notes, names and
address lists, records or other documents made or compiled by Employee or made
available to Employee during the term of employment concerning the business of
any member of the Paxson Group and any and all copies thereof shall be
delivered to Paxson upon the termination of Employee’s employment for whatever
reason or at any other time upon request. Employee shall not at any time
during Employee’s employment, or after the termination of employment, use for
Employee’s own benefit or for the benefit of others, or divulge to others, any
information, trade secrets, knowledge, or data of a secret or confidential
nature or otherwise not readily available to members of the general public that
concerns the business or affairs of any member of the Paxson Group and whether
or not acquired by the Employee during the term of employment by Paxson.

8

 

     4.02 Rights in Intangible Assets. Employee recognizes and acknowledges
that all rights in the formats, programming, concepts, approaches, copy and
titles embodied in the operation of the Paxson Group or any particular station
or the PAX Net network or any other broadcast network, and all changes,
additions and amendments thereto which may occur during or after the Term
hereof, belong exclusively to Paxson. Employee hereby assigns any and all
rights or interests Employee may have therein to Paxson. Employee shall not at
any time during Employee’s employment, or after the termination of employment,
have or claim any right, title or interest in any trade name, patent,
trademark, copyright or other similar rights belonging to or used by Paxson and
shall not have or claim any right, title or interest in any material or matter
of any sort prepared for or used in connection with the business or promotion
of Paxson, whether produced, prepared or published in whole or in part by
Employee or by Paxson.

SECTION 5. NONINTERFERENCE AND CONFIDENTIALITY

     5.01 Noninterference. Employee agrees that from the date of this
Agreement through the first anniversary of the date Employee’s employment with
the Paxson Group terminates, Employee will not, directly or indirectly, whether
as sole proprietor, partner, lessor, venturer, stockholder, director, officer,
employee, consultant or in any other capacity as principal or agent or through
any person, subsidiary, affiliate or employee acting as nominee or agent,
engage or participate in any of the following actions:

     (a) Influencing or attempting to influence any person or entity who
is a contracting party with any member of the Paxson Group to terminate
any written or oral agreement with such member of the Paxson Group; it
being understood that notwithstanding the foregoing, consulting or
working for a competitor in the ordinary course after the term shall not,
absent other evidence or action on the part of Employee to the contrary,
constitute a violation of this provision; or

     (b) Hiring or attempting to hire for employment or as an independent
contractor any person who is actively employed (or in the preceding six
months was actively employed) by any member of the Paxson Group or
attempting to influence any such person to terminate employment with any
member of the Paxson Group.

     5.02 Confidentiality. Employee covenants and agrees that both during the
Agreement Term and thereafter he will not disclose to any third party or use in
any way any confidential information, business secrets, or business opportunity
of the Paxson Group, including, without limitation, advertiser lists, rate
cards, programming information, programming plans, marketing, advertising and
promotional ideas and strategies, marketing surveys and analyses, ratings
reports, budgets, research, or financial, purchasing, planning, employment or
personnel data and information. Immediately upon termination of Employee’s
employment with the Paxson Group for any reason, or at any other time upon the
Paxson Group’s request, Employee will return to the Paxson Group all memoranda,
notes, records or other documents compiled by Employee or made available to
Employee during the Agreement Term concerning the business of the Paxson Group,
all

9

 

other confidential information and all personal property of the Paxson
Group, including, without limitation, all files, audio or video tapes,
recordings, records, documents, drawings, specifications, lists, equipment,
supplies, promotional material, scripts, keys, phone or credit cards and
similar items and all copies thereof or extracts therefrom.

     5.03 Enforcement. Employee agrees that the restrictive covenants
contained in this section 5 are a material part of Employee’s obligations under
this Agreement for which the Paxson Group has agreed to compensate Employee as
provided in this Agreement. Employee agrees that the injury the Paxson Group
will suffer in the event of the breach by Employee of any clause of this
Section 5 will cause the Paxson Group irreparable injury that cannot be
adequately compensated by monetary damages alone. Therefore, Employee agrees
that the Paxson Group, without limiting any other legal or equitable remedies
available to it, shall be entitled to obtain equitable relief by injunction or
otherwise from any court of competent jurisdiction, including, without
limitation, injunctive relief to prevent Employee’s failure to comply with the
terms and conditions of this Section 5 and Employee hereby waives hereunder any
defense based upon an adequate remedy at law in any such action for equitable
relief.

     5.04 Reformation. If the covenants in this Section 5 are held to be
unenforceable in any jurisdiction because of the duration or scope thereof, the
court making such determination shall have the power to reduce the duration
and/or scope of the provision or covenant, and the provision or covenant in its
reduced form shall be enforceable; provided, however, that the determination of
such court shall not affect the enforceability of Section 5 in any other
jurisdiction.

SECTION 6. ARBITRATION Except as otherwise provided to the contrary below, any
dispute arising out of or related to this Agreement that Paxson and Employee
are unable to resolve by themselves shall be settled by arbitration in West
Palm Beach, Florida, by a panel of three (3) arbitrators. Paxson and Employee
shall each designate one disinterested arbitrator, and the two arbitrators so
designated shall select the third arbitrator. The persons selected as
arbitrators need not be professional arbitrators, and persons such as lawyers,
accountants and bankers shall be acceptable. Before undertaking to resolve the
dispute, each arbitrator shall be duly sworn faithfully and fairly to hear and
examine the matters in controversy and to make a just award according to the
best of their understanding. The arbitration hearing shall be conducted in
accordance with the employment arbitration rules of the American Arbitration
Association. The written decision of a majority of the arbitrators shall be
final and binding on Paxson and Employee. The costs and expenses of the
arbitration proceeding shall be assessed between Paxson and Employee in a
manner to be decided by a majority of the arbitrators, and the assessment shall
be set forth in the decision and award of the arbitrators. Judgment on the
award, if it is not satisfied within thirty (30) days, may be entered in any
court having jurisdiction over the matter. No action at law or suit in equity
based upon any claim arising out of or related to this Agreement shall be
instituted in any court by Paxson or Employee against the other except (i) an
action to compel arbitration pursuant to this Section, (ii) an action to
enforce the award of the arbitration panel rendered in accordance
with this Section, or (iii) any other action which, under applicable law, may
not be made subject to binding arbitration.

10

 

SECTION 7. REPRESENTATIONS OF EMPLOYEE. To induce Paxson to enter into this
Agreement and to employ Employee, Employee represents and warrants to Paxson as
of the date hereof and as of each date of payment of any compensation under the
terms hereof as follows:

     7.01 Absence of Conflicting Agreements. The execution, delivery and
performance of this Agreement by Employee does not conflict with result in a
breach of, or constitute a default under any enforceable covenant not to
compete or any other enforceable agreement, instrument, or license, to which
Employee is a party or by which Employee is bound.

     7.02 Conduct. Employee has not:

     (a) Been convicted of any felony;

     (b) Committed any criminal act with respect to Employee’s current or
any prior employment (including any criminal act involving a violation of
the Communication Act of 1934, as amended, or regulations promulgated by
the FCC), or

     (c) Knowingly committed any act that materially threatened to result
in suspension, revocation, or adverse modification of any FCC license of
any broadcast station or which subjected any broadcast station to fine or
forfeiture.

     7.03 Chemical Dependence. Employee is not dependent on alcohol or illegal
drugs. Employee recognizes that Paxson shall have the right to conduct random
drug testing of its employees and that Employee may be called upon in such a
manner.

SECTION 8. MISCELLANEOUS

     8.01 Governing Law. This Agreement shall be construed in accordance with,
and shall be governed by, the laws of the State of Florida.

     8.02 Entire Agreement. This Agreement amends, restates and supersedes any
prior employment agreement or understanding with respect to any terms of
employment between Paxson and Employee, whether written or oral, and is
effective as of the date first written above; no written supplemental executive
retirement plan or related documents, if any, between Paxson and Employee shall
be deemed superceded, amended or modified by the terms hereof. The instrument
contains the entire understanding and agreement between the parties relating to
the subject matter hereof. Neither this Agreement nor any provision hereof may
be waived, modified, amended, changed or terminated, except by an
agreement in writing signed by the party against whom enforcement of any
waiver, modification, change, amendment or termination is sought.

11

 

     8.03 Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original, and all such counterparts shall together
constitute a single Agreement.

     8.04 Provisions Severable. To the extent that any provision of this
Agreement is invalid, illegal, or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions hereof shall not in any
way be affected or impaired thereby.

     8.05 Headings. The section headings of this Agreement are for convenience
only and shall not be used in interpreting or construing this Agreement.

     8.06 Assignment of Agreement and Change of Control; Successors and
Assigns. This Agreement may be assigned by Paxson without the prior written
consent of Employee. Employee may not assign this Agreement or any of its
right or interests herein to any other party. The rights and obligations of
the parties shall inure to the benefit of and be binding upon heirs,
successors, administrators assigns, as well as any entity to which Paxson may
assign its assets or transfer its business in a Change of Control (as defined
in Section 3.1, above), in a merger or acquisition, by operation of law, or
otherwise. The obligations of Paxson to pay money and/or provide benefits to
Employee under this Agreement, by operation of law or pursuant to the terms of
the plans or documents governing such benefits, shall survive Employee’s death
(with payments thereafter to be made at the direction of the executors,
personal representatives or other appropriate representatives of Employee’s
estate).

     8.07 Notices. All notices, demands and requests required or permitted to
be given under the provisions of this Agreement shall be (i) in writing, (ii)
delivered by personal delivery, or sent by commercial delivery service,
registered or certified mail, return receipt requested, (iii) deemed to have
been given on the date of personal delivery or the date set forth in the
records of the delivery service or on the return receipt, and (iv) addressed as
follows:

	 	 	 	 	 
	

	 	If to Paxson:
	 	Lowell W. Paxson, CEO (with a copy to Anthony L.
Morrison, Esq.)

601 Clearwater Park Road

West Palm Beach, Florida 33401-6233
	 
	 	 	 	 
	

	 	If to Employee:
	 	at the address set forth under employees
signature on the last
page hereof.

or to any such other or additional persons and addresses as the parties may
from time to time designate in a writing delivered in accordance with this
Section 8.7.

12

 

     8.08 Waiver. The waiver by Paxson or Employee of a breach of any
provision by the other party, or the failure of either Paxson or Employee to
exercise any of the rights set forth herein, shall not operate or be construed
as a waiver of any subsequent breach or be deemed to be a waiver by any party
of any of its rights hereunder. No waiver by any party at any time, express or
implied, of any breach of any provision of this Agreement shall be deemed a
waiver of a breach of any other provision of this Agreement or a consent to any
subsequent breach of the same or other provisions.

     8.09 Paxson’s Acknowledgments Regarding Authority. The person signing on
behalf of Paxson warrants and represents that he has read this Agreement, that
he understands it, and that he has full and actual authority to enter into this
Agreement on behalf of Paxson. He further represents and warrants that this
Agreement is valid and binding on Paxson immediately, without the need for any
further approvals, procedures or formalities within the company, and that all
approvals, procedures or formalities necessary to effectuate or ratify this
Agreement by Paxson (including, but not limited to any required approval of the
Compensation Committee of the Board of Directors) have been obtained or will be
obtained by Paxson.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement
effective on the day and year first written above.

	 	 	 	 	 
	EMPLOYEE 	PAXSON COMMUNICATIONS MANAGEMENT

COMPANY, INC.

 	 
	/s/ Richard Garcia 	By /s/ Lowell W. Paxson
 	 
	Richard Garcia 	Name:  	Lowell W. Paxson 	 
	 	Title:  	Chief Executive Officer 	 
	 

13<PAGE>

                                                                   EXHIBIT 10.19

                                ARRIS - PLEXUS MANUFACTURING AGREEMENT

         This Manufacturing Agreement ("Agreement") is entered into as of this
12th day of May, 2004 by and between Plexus Services Corp., a Nevada
corporation, located at 55 Jewelers Park Drive, Neenah, Wisconsin 54956
("Manufacturer") and ARRIS International, Inc., a Delaware company, having its
principal office at 3871 Lakefield Drive, Suwanee, Georgia 30097 ("Purchaser").

                                    RECITALS:

         WHEREAS, Manufacturer is in the business of providing manufacturing
services that include the custom manufacture of printed electronic circuit
boards, systems and related services; and

         WHEREAS, the parties desire to establish the terms and conditions that
will apply to Purchaser's purchase from Plexus of the products set forth in
Exhibit A to this Agreement ("Products").

                                   AGREEMENTS:

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Manufacturer and the Purchaser
hereby agree to the following Agreement:

1.       TERM

This Agreement shall be effective as of the date first above mentioned (the
"Effective Date") and shall, subject to Section 8 of this Agreement, remain in
force for one (1) year. Thereafter, this Agreement shall automatically be
renewed for successive one (1) year terms.

2.       SPECIFICATIONS

During the term of this Agreement, Manufacturer shall manufacture the Products
for Purchaser. All Products covered under this Agreement shall be manufactured
in accordance with Purchaser's specifications and drawings attached as Exhibit B
of this Agreement (the "Specifications"). The Products and Specifications may be
changed from time to time as the parties mutually agree and such Exhibits shall
be updated to reflect such changes.

3.       TITLE AND SHIPPING

Per Purchaser's instructions and unless otherwise directed by Purchaser,
Manufacturer will ship Products on Purchaser's behalf directly to Purchaser's
customers.

All shipments by Manufacturer are EXW: Buffalo Grove Facility (Incoterms 2000).

                                     Page 1

<PAGE>

                     ARRIS - PLEXUS MANUFACTURING AGREEMENT

4.       PAYMENT TERMS

a.       Manufacturer and Purchaser agree to payment terms of net forty-five
         (45) days from the date of invoice if payment is by wire transfer or
         electronic funds transfer. If payment is by check, payment terms will
         be net thirty (30) days from the date of invoice. Except with respect
         to Excess Materials (as defined below) paid for by Purchaser and held
         as consigned goods by Manufacturer, Manufacturer will not invoice
         Customer until Products or Materials are shipped.

b.       All prices and payments shall be in U.S. Dollars unless otherwise
         agreed by the Parties.

c.       All prices are exclusive of all taxes, duties, customs or similar
         charges and are subject to an increase equal in amount to any charge
         Manufacturer may be required to collect or pay upon shipment of the
         Product.

5.       PURCHASE ORDERS AND FORECASTS

a.       Purchaser will provide to Manufacturer firm purchase orders for a
         minimum of sixty (60) days in advance of delivery of Products
         ("Purchase Orders"). Further, Purchaser will maintain a six month
         non-binding forecast by month of planned purchases of Products and will
         issue revisions of that forecast to Manufacturer monthly ("Forecast",
         as initially shown in Exhibit C and updated on a monthly basis
         beginning thirty (30) days after the Effective Date). Manufacturer will
         purchase materials to support Purchase Order demand ("Materials").
         Materials purchased may exceed actual Purchase Order demand due to
         minimum or economic order quantity requirements of Materials suppliers.
         Manufacturer will provide Purchaser with a list at quarterly business
         reviews of those Materials subject to such minimum or economic order
         quantity requirements. Purchaser is responsible, and will pay in
         accordance with Section 4(a), for Material purchased to support
         Purchaser's Purchase Orders, to fulfill the first sixty (60) days of
         the Forecast as in effect from time to time, or with Purchaser's
         pre-approval, purchased to support Purchaser's non-binding Forecast. If
         in case of Purchaser requests schedule reductions or cancellations,
         Manufacturer will use commercially practicable efforts to reschedule or
         cancel such Materials. Purchaser will maintain a minimum of sixty (60)
         days of Products on order at all times. Each Purchase Order shall
         become effective upon acceptance of the order by Manufacturer.

b.       Purchaser may reschedule deliveries on Products under Purchase Orders
         in accordance with the following schedule:

Number of days prior to the original          Maximum percentage of the Product
schedule delivery date that written           quantity by which the scheduled
notice of a change OR rescheduling is         delivery can be decreased or
received by Manufacturer.                     rescheduled for later delivery
                                              without incurring cancellation
                                              charges (other than as provided in
                                              Exhibit H).

00 - 60 DAYS                                  0% can be rescheduled. Total
                                              volume is firm. Product mix
                                              changes are acceptable with thirty
                                              (30) calendar

                                     Page 2

<PAGE>

                     ARRIS - PLEXUS MANUFACTURING AGREEMENT

                                              days prior written notice.
                                              Purchaser remains fully
                                              responsible and will pay in
                                              accordance with Section 4(a) for
                                              all Material, work-in-process
                                              Material and finished goods
                                              Products.

61 - 90 DAYS                                  25% of total volume can be
                                              rescheduled, one time per Purchase
                                              Order only, for a maximum
                                              reschedule of sixty (60) days from
                                              the original delivery date
                                              acknowledged by Manufacturer.
                                              Purchaser will be responsible for
                                              Material acquired pursuant to the
                                              original delivery date that cannot
                                              be returned, rescheduled or
                                              cancelled per the terms defined in
                                              Exhibit H

91 - 120 DAYS                                 50% of total volume can be
                                              rescheduled or canceled. Purchaser
                                              will be responsible for Material
                                              acquired pursuant to the original
                                              delivery date that cannot be
                                              returned, rescheduled or cancelled
                                              per the terms of Exhibit H

120 + DAYS                                    100% of total volume can be
                                              rescheduled or canceled. Purchaser
                                              will be responsible for Material
                                              acquired pursuant to the original
                                              delivery date that cannot be
                                              returned, rescheduled or cancelled
                                              per the terms of Exhibit H

         If a Purchaser requested reschedule represents an acceleration or
         increase, Manufacturer shall use commercially reasonable efforts to
         meet Purchaser's request. Purchaser shall be responsible for the costs
         reasonably and directly incurred by Manufacturer to meet Purchaser's
         request, subject to prior written notification to and written approval
         by Purchaser.

c.       Upon Manufacturer's request, Purchaser may give written authorization
         to Manufacturer to order or procure Materials with long lead-times in
         order to improve Manufacturer's ability to respond to changes in
         Purchaser's Forecast. Specific limits regarding the quantity and/or
         dollar value of this Material shall be documented in writing and
         provided to Purchaser from time to time. This right shall not arise
         unless Purchaser gives express written authorization for the specific
         amount of Material to be procured.

d.       Purchaser shall not be responsible for rescheduling charges if
         Purchaser reschedules delivery of Products as a result of
         Manufacturer's failure to deliver Products which meet the requirements
         of this Agreement or to deliver Products in accordance with specified
         delivery schedules.

e.       All Purchase Orders issued by Purchaser shall contain the following
         information:

         1. Purchaser's part number, description, and revision level of Product
            to be shipped.

                                     Page 3

<PAGE>

                     ARRIS - PLEXUS MANUFACTURING AGREEMENT

         2. The delivery schedule.

         3. The unit price.

f.       Manufacturer will ship Products on Purchaser's behalf directly to
         Purchaser's customer's via a "drop shipment" methodology. Purchaser and
         Manufacturer will make reasonable efforts to develop a model whereby
         Purchaser will provide blanket orders to Manufacturer to support
         Manufacturer's assembly of Product to a certain level of assembly.
         These lower level assemblies would then be configured and shipped per
         subsequent orders issued by Purchaser (the parties will work in good
         faith to reach agreement on the details of this model prior to
         commencement of standard Product shipments, which agreement will be in
         writing and signed by both parties).

g.       Any Material deemed obsolete due to an ECO or no future scheduled
         demand will be reported to Purchaser on a monthly basis. Purchaser
         shall make reasonable efforts to review such report and buy any
         obsolete inventory from Manufacturer within 30 business days.

6.       Warranty

a.       Product Warranty

         Manufacturer warrants that the Products sold hereunder will be free
         from defects in manufacture and workmanship (to exclude customer
         provided materials or Product design) and will conform with the
         applicable Specifications under normal handling, use and operation for
         a period of eighteen (18) months from the date the final end customer
         receives the Product this period not to exceed twenty-four (24) months
         from the date the Product is shipped by Manufacturer.

         Manufacturer's sole obligation under this Product Warranty, and
         Purchaser's sole and exclusive remedy, shall be, at Manufacturer's
         option, to either repair, replace or credit Purchaser's account for any
         Products found to be defective during this warranty period. This remedy
         is made on the following conditions:

         i.       Manufacturer is notified in writing of the defective Products
                  within a reasonable time after Purchaser or Purchaser's
                  customer acknowledges receipt of Products.

         ii.      Purchaser shall forward defective Products to Manufacturer at
                  Manufacturer's expense. Manufacturer shall use its commercial
                  best effort to return the repaired or replaced Products
                  freight prepaid by Manufacturer to Purchaser or other
                  Purchaser specified location no later than thirty (30) days
                  from the date Manufacturer receives the defective Products.
                  Such Products will be returned to Purchaser or other Purchaser
                  specified location by Manufacturer F.O.B. destination. The
                  Product warranty referred to in this Agreement shall apply to
                  all Products supplied to replace defective Products, provided
                  that the length of the warranty on replacement Product will be
                  equal to a period of ninety (90) days or the remainder of the
                  original warranty period, whichever is longer.

                                     Page 4

<PAGE>

                     ARRIS - PLEXUS MANUFACTURING AGREEMENT

         iii.     DOA's are replaced immediately by the Purchaser and must
                  receive highest repair priority by Manufacturer. Repaired DOA
                  units must be brought to "new" condition (boxes/labels/date
                  codes/etc) for restocking in Purchasers class A inventory.

         iv.      Manufacture will capture and summarize all warranty repair
                  data in a format that can be jointly used by the Manufacturer
                  and Purchaser to lead improvements in process, workmanship and
                  design to prevent future failures of the top Pareto failures.

                  Repaired Products shall be warranted for a period of ninety
                  (90) days or the remainder of the original warranty period,
                  whichever is longer. The aforementioned warranties shall inure
                  to Purchaser.

b.       Materials procured for use by Manufacturer in the manufacture of
         Purchasers Products will be warranted by Manufacturer in accordance
         with the original manufacturers warranty or 90 days whichever is
         greater. In the event any components are not in conformity with those
         foregoing warranties, Manufacturer agrees to make commercially
         reasonable efforts to pursue failure analysis (root cause) data from
         the supplier and to negotiate on Purchasers behalf all warranty terms.

c        The foregoing warranty shall not be valid if the Products or component
         parts have been subjected to abuse or the defects are the result of and
         caused by misuse, accident, neglect, alteration, or improper testing,
         storage, and/or improper installation by Purchaser, it its agents,
         other subcontractors or its customers.

d        Products shall be accepted by Manufacturer once Purchaser has
         identified the returned goods with the proper Returned Material
         Authorization (RMA) number displayed on the shipping cartons and the
         associated Product name. In addition, if there is more than one RMA lot
         being returned at any given time, there cannot be more than one RMA lot
         per shipping container. RMA numbers shall be issued by the Program
         Manager or designate.

e.       Once RMA lot receipts are acknowledged by Manufacturer, these lot(s)
         will be returned to Purchaser in new shipping containers with proper
         RMA number and Product name displayed on the carton. The period for
         this return will be thirty (30) calendar days from the date of receipt
         at Manufacturer.

f.       Products which are returned to Manufacturer with alleged defects, which
         Products are found to be in proper working order, upon return to
         Purchaser may be subject to a commercially reasonable and justifiable
         charge to cover the costs of handling and testing.

g.       Upon Purchaser's request, Manufacturer will repair out-of-warranty
         Products. Each such out-of-warranty repair shall be charged as agreed
         to by both Parties. This repair cost basis will be one of the
         following: (1) charged at a time and material basis; (2) average cost
         repair cost basis; (3) fixed unit repair cost. Manufacturer warrants
         each such repair for a period of four months for Material and six
         months for manufacturing workmanship from the date of shipment of the
         repaired Products. Manufacturer shall pay all freight charges

                                     Page 5

<PAGE>

                     ARRIS - PLEXUS MANUFACTURING AGREEMENT

         for repaired Products requiring a second repair under Manufacturer's
         warranty for repaired Products as set forth in this paragraph.

h.       THE WARRANTIES SET FORTH IN THIS SECTION 6 ARE THE EXCLUSIVE WARRANTIES
         PROVIDED BY MANUFACTURER, AND EXCLUDE ALL OTHER EXPRESS OR IMPLIED
         WARRANTIES, INCLUDING, WITHOUT LIMITATION, THOSE OF MERCHANTABILITY OR
         FITNESS FOR ANY PARTICULAR PURPOSE.

7.       DELIVERY

Products shall be delivered to Purchaser in accordance with required delivery
dates as specified on Purchase Orders as agreed-to by Manufacturer. Upon
learning of any potential delays, Manufacturer shall immediately notify
Purchaser in writing as to the cause and extent of such delay. The Purchaser may
request overnight or special delivery on Products failing to meet the ship-dates
specified on purchase orders, the incremental cost to be paid by the
Manufacturer if the delay is due to causes within Manufacturer's control.
Otherwise, the incremental cost for overnight or special delivery on Products
shall be paid by the Purchaser.

8.       TERMINATION AND CANCELLATION

a.       For Cause - This Agreement may be terminated by either party at any
         time upon occurrence of any one or more of the following Events of
         Default:

         (1)      failure of the other party: a) to perform pursuant to the
                  material terms and conditions of this Agreement; and b) to
                  cure such performance deficiency within thirty (30) days after
                  receiving written notice thereof given by the aggrieved party;
                  or

         (2)      the entering into or filing by the other party of a petition,
                  arrangement or proceeding seeking an order for relief under
                  the bankruptcy laws of the United States, a receivership for
                  any assets of the other party; a composition with or
                  assignment for the benefit of its creditors; a readjustment of
                  debt or the dissolution or liquidation of the other party.

b.       For Convenience - After the first year anniversary of the Effective
         Date, either party may terminate this Agreement for convenience upon
         one hundred eighty (180) days advance written notice to the other
         party. Should such termination occur, notwithstanding any implication
         to the contrary that may otherwise be suggested by this Agreement,
         neither party shall owe any obligation of any type whatsoever to the
         other party other than for accrued obligations existing as of the date
         of termination.

c.       Transition Support and Assurance - Manufacturer will support the
         transition to a new manufacturer and insure an adequate supply of
         Product to support reasonable Purchaser Forecasts during the transition
         period. If a supply disruption exceeding two weeks from confirmed
         delivery date or limitations of less than 75% of Purchaser's Forecast
         occurs due to the sole negligence or willful misconduct of Manufacturer
         and Manufacturer fails to cure such supply shortfall within thirty (30)
         days after receiving written notice thereof from Purchaser, the parties
         agree that damages will be difficult to ascertain and that

                                     Page 6

<PAGE>

                     ARRIS - PLEXUS MANUFACTURING AGREEMENT

         Purchaser's business will be irreparably damaged, as such Manufacturer
         will compensate Purchaser $1,000,000 as liquidated damages for the
         disruption. Such amount is payable within thirty (30) days of written
         notice by Purchaser of its claim for such amount due to such supply
         disruption. Purchaser will also provide such written notice to
         Manufacturer no later than 60 days after such supply disruption,
         failing which Manufacturer will be relieved of the reimbursement
         obligation. Prior to payment, Purchaser will provide the necessary
         documentation to support claims of supply disruption and a itemized
         detail of any out of pocket expense incurred.

         As mutually agreed in a transition plan, Manufacturer shall prepare,
         and provide access to the Manufacturing Facility for packing, removal
         and shipping by Purchaser, each of the following items, to the extent
         (with respect to the items described in clauses a through d, below)
         such items are either owned by Purchaser or exclusively used in
         manufacture of the Products:

         a.       Product Documentation; e.g. drawings, schematics,
                  Bills-of-Materials, component specifications, approved
                  suppliers, test specifications, process files, and other items
                  necessary to describe the product.

         b.       Manufacturing Process Documentation; e.g. process profiles,
                  SMT placement programs, temperature profiles, control
                  parameters and other items necessary to describe the
                  manufacturing process.

         c.       Manufacturing and Test programs; software used in the
                  manufacture and test of the products.

         d.       Manufacturing and Test equipment, fixtures, jigs, transport
                  carriers and other items necessary to manufacture the product.

         e.       Materials, work in progress and Products.

         f.       Any consigned equipment described in Section 18 hereof and any
                  Consigned Inventory described in Section 19 hereof.

         Such removal shall be accomplished in a mutually agreed manner so as to
         reasonably minimize any disruptions. Items owned by Manufacturer (other
         than Materials and Products) shall be purchased by Purchaser at a price
         to be negotiated, not to exceed typical market prices. Purchaser shall
         also purchase all remaining Products (at then current prices) and
         Materials (as if such Materials were Excess Materials) and work in
         progress (at Manufacturer's cost at of the last completed manufacturing
         operation for such work in progress) and pay Manufacturer any costs
         associated with cancellation of Material then on order.

9.       INSPECTION

a.       Upon request and reasonable notice from Purchaser, Manufacturer shall
         allow Purchaser to inspect and review the work being performed under
         this Agreement, including Materials being used. However, shipments will
         not be delayed if Purchaser fails to effect such source inspection.
         Source inspection will not relieve Manufacturer of its warranty
         obligations herein.

                                     Page 7

<PAGE>

                     ARRIS - PLEXUS MANUFACTURING AGREEMENT

b.       In the course of purchasing component parts on behalf of Purchaser,
         Manufacturer must follow Purchaser's Approved Vendors List (AVL) for
         all component parts. If Manufacturer offers an alternative to
         Purchaser's AVL, the alternative may be approved in writing by
         Purchaser prior to procurement/production at Manufacturer's facility
         which approval shall not be unreasonably withheld.

10.      ENGINEERING CHANGE ORDERS

It is recognized that from time to time Manufacturer will be asked to implement
Engineering Change Orders ("ECOs"). The following delineates the procedures to
be followed by the Parties:

a.       Purchaser must notify Manufacturer in writing of proposed ECO. This
         notification will include the documentation of the change to
         effectively support Manufacturer's investigation of the impact of this
         proposal. The documentation should include: ECO form with written
         description of change, revised BOM, drawings, AVL, media, required
         implementation date, etc.

b.       If such changes cause an increase or decrease in the total number of
         Products due under an order issued hereunder or in the time required
         for its performance, an equitable adjustment shall be made; provided,
         however, that any claim by either party therefore must be asserted in
         writing in the form of a quotation within thirty (30) calendar days
         from the acknowledged receipt date of the change notice by
         Manufacturer.

c.       Upon notice of a change, Manufacturer shall use commercially reasonable
         efforts to review all costs impacted within five (5) days after
         Manufacturer's receipt of ECO proposal. All cost impacts and material
         availability issues will be presented, mutually reviewed and agreed to
         in writing with Purchaser prior to Manufacturer's implementation.

d.       Purchaser will be responsible for all expedite costs associated with
         emergency ECO implementation. For non-emergency ECOs, Manufacturer
         shall present the cost impacts and material availability issues, to be
         mutually reviewed and agreed-to in writing by the parties prior to
         Manufacturer's implementation.

e.       Manufacturer shall notify Purchaser in writing of any proposed changes
         to the Products. If Purchaser has not given approval of any proposed
         changes within fifteen (15) calendar days after receipt of such written
         notification, Manufacturer will conclusively presume that Purchaser has
         disapproved the change. Manufacturer will continue to deliver unchanged
         Products in accordance with the provisions of this Agreement should
         Purchaser not approve the proposed change.

11.      CONFIDENTIALITY

Both parties acknowledge that, by reason of their relationship, they may have
access to certain information and materials concerning the other's business,
plans and Products (including, but not limited to, information and materials
contained in technical data provided to the other party) which is confidential
and of substantial value to the other party, which value would be impaired if
such information were disclosed to third parties. Neither party shall use in any
way, for their own account or the account of any third party, nor disclose to
any third party, any such

                                     Page 8

<PAGE>

                     ARRIS - PLEXUS MANUFACTURING AGREEMENT

confidential information which is revealed to it by the other party hereto,
without written consent of the other party. Each party shall take every
reasonable precaution to protect the confidentiality of such information
consistent with the efforts exercised by it with respect to its own confidential
information. Each party shall advise the other if it considers any particular
information or materials to be confidential. This provision shall survive
termination of this Agreement.

All written data such as drawings, plans, reports, designs, schematics, bill of
materials, and other specifications supplied by Purchaser to Manufacturer shall
remain the exclusive property of Purchaser. Such data and any copies thereof,
together with all data furnished by Purchaser and any copies thereof, shall be
returned to the extent requested upon completion of the services, in the event
of termination under the Agreement. The confidentiality obligations in this
paragraph shall be in addition to the confidentiality obligations in any
separate non-disclosure agreement between the parties. Should any conflict arise
between any such non-disclosure agreement and the provisions of this paragraph,
such non-disclosure agreement shall control.

12.      INDEMNIFICATION

Subject to Section 15.g hereof, Purchaser shall indemnify and defend the
Manufacturer against all claims, suits, losses, damages, expenses (including
attorneys' fees), and liabilities ("Claims") for bodily injury, personal injury,
death, property damage, or intellectual property infringement (unless covered by
Manufacturer's intellectual property infringement indemnity obligation below)
directly or indirectly caused by any Products or the Breach of this Agreement.
Subject to Section 15.g hereof, Manufacturer shall indemnify and defend the
Purchaser against all Claims from third parties of personal injury, tangible
property damage, or death caused by its breach of the warranty in Section 6 of
this Agreement. Manufacturer shall also indemnify and defend Purchaser against
any Claim that the manufacturing processes used by Manufacturer to manufacture
the Product (unless employed in conformity with Purchaser specification)
infringes any intellectual property right of any third party. The party claiming
indemnification rights hereunder shall notify the other party promptly upon
receiving or learning of any claim or action pursuant to which indemnity will be
sought and shall provide reasonable assistance to the indemnifying party, at the
indemnifying party's expense, in the defense of any such action. The
indemnifying party will have sole control over the defense or settlement of
claims indemnified by it. Other than with respect to intellectual property
infringement, both parties shall carry and maintain liability insurance coverage
to satisfactorily cover its obligations under this Agreement.

13.      COMPLIANCE WITH APPLICABLE LAWS

Manufacturer and Purchaser have been, and shall continue to be, in material
compliance with the provisions of all federal, state and local laws,
regulations, rules and ordinances to the transactions governed by this
Agreement.

14.      FORCE MAJEURE

In the event that performance by either party of its obligations under this
Agreement (other than payment obligations) is prevented due to any Act of God,
fire, casualty, flood, earthquake, war, strike. lockout, epidemic, destruction
of production facilities, riot, insurrection, material unavailability, or any
other cause beyond reasonable control of the party invoking this section -

                                     Page 9

<PAGE>

                     ARRIS - PLEXUS MANUFACTURING AGREEMENT

and if such party shall give prompt notice to the other party - its performance
shall be excused, and the time or the performance shall be extended for the
period of delay or inability to perform due to such occurrences as stated above.

15.      MISCELLANEOUS

a.       SEVERABILITY: In the event that one or more of the provisions, or parts
         thereof, contained in this Agreement shall for any reason be held to be
         invalid, illegal, or unenforceable by a court of competent
         jurisdiction, the same shall not be invalidated or otherwise affect any
         provision in the Agreement, and the Agreement shall be construed as if
         such invalid, illegal or unenforceable provision had never been
         contained herein.

b.       INTEGRATION AND MODIFICATION: This Agreement constitutes the entire and
         exclusive statement by Purchaser and Manufacturer of the terms of their
         Agreement, notwithstanding any additional or different terms regarding
         any Product that may be obtained in quotation, acknowledgment,
         confirmation, order, Purchase Order, invoice or other form of Purchaser
         or Manufacturer (and the preprinted terms and conditions of any
         Purchase Order used to purchase Products shall be deemed deleted). All
         prior and contemporaneous proposals, negotiations, representations and
         agreements are merged in the Agreement. These terms of the Agreement
         may not be altered, modified, superseded, amended or rescinded, and no
         additional terms shall become a part of the Agreement, except pursuant
         to a writing specifically referencing the Agreement and signed both
         parties.

c.       NOTICE: Unless otherwise specified in the Agreement, all notices and
         other communications permitted or required by the provisions of those
         documents shall be in writing and shall be certified mail, telecopied,
         or delivered to the other party at the address set forth below (or at
         such other address as either party shall designate in writing to the
         other party in the manner set forth in this Section 15.c) and shall be
         effective and deemed received: i) if mailed, on the third (3rd) day
         following mailing; ii) if telecopied, when actually received, iii) if
         telegraphed, when actually received, if personally delivered, when
         delivered, if delivered via nationally recognized overnight carrier,
         the business day following delivery to such carrier. Each notice to
         Manufacturer or Purchaser shall be addressed, until notice of change
         thereof as follows:

         i)    If intended for Manufacturer, to:

                           Plexus Corp.
                           Attn: President, Electronic Assembly
                           55 Jewelers Park Drive
                           Neenah, WI 54956

                           With a copy to:
                           Plexus Corp.
                           Attn: General Counsel
                           55 Jewelers Park Drive
                           Neenah, WI 54956

                                    Page 10

<PAGE>

                     ARRIS - PLEXUS MANUFACTURING AGREEMENT

         ii)   If intended for Purchaser, to:

                           ARRIS International, Inc.
                           3871 Lakefield Drive
                           Suwanee, Georgia 3002497
                           ATTN: ARRIS Operations

                           For legal notices a copy to:
                           ARRIS International, Inc.
                           3871 Lakefield Drive
                           Suwanee, Georgia 30024
                           ATTN: Legal Department

d.       ASSIGNMENT: This Agreement shall not be assignable by either party
         without the prior written consent of the other party, such consent not
         to be unreasonably withheld.

e.       WAIVER: No failure or delay on the part of either party hereto in
         exercising any right or remedy under the Agreement shall operate as a
         waiver thereof; nor shall any single or partial exercise of any such
         right or remedy. No provision of the Agreement may be waived except in
         writing signed by the party granting such waiver.

f.       GOVERNING LAW: The Agreement shall be governed by and construed in
         accordance with the laws of the State of Illinois.

g.       CONSEQUENTIAL DAMAGES: IN NO EVENT SHALL PURCHASER OR MANUFACTURER AND
         THEIR RESPECTIVE EMPLOYEES, DIRECTORS, OFFICERS, AGENTS AND SUPPLIERS
         BE LIABLE FOR INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE OR
         CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION, LOSS OF PROFITS OR
         REVENUES OF THE PARTIES OR THIRD PARTIES, EVEN IF ADVISED OF THE
         POSSIBILITY THEREOF AND REGARDLESS OF WHETHER SUCH LIABILITY ARISES IN
         TORT, CONTRACT, BREACH OF WARRANTY OR OTHERWISE.

h.       MISCELLANEOUS: Acceptance or acquiescence in a course of performance
         rendered under the Agreement shall not be relevant to determining the
         meaning if the Agreement, even though the accepting or acquiescing
         Party had knowledge of the nature of the performance and an opportunity
         for objection. No course of prior dealing between the Parties and no
         usage of the trade shall be relevant to supplement or explain any terms
         used in the Agreement. The word "including" as used in this Agreement,
         means "including, without limitation". This Agreement may be executed
         in counterparts.

16.      PRICING

a.       The prices for the Products shall be those set forth in quotations
         provided by Manufacturer and set forth in Purchaser's Purchase Order(s)
         which have been accepted by Manufacturer. Prices are exclusive of all
         taxes now in force or enacted in the future

                                    Page 11

<PAGE>

                     ARRIS - PLEXUS MANUFACTURING AGREEMENT

         and therefore are subject to increase equal in amount to any tax
         Manufacturer may be required to collect or pay upon the sale or
         delivery of any Products or on this transaction with Purchaser's prior
         approval.

b.       Cost reductions will be sought by Purchaser and Manufacturer for each
         Product through the terms of this Agreement. Manufacturer will revise
         pricing for each cost reduction as follows:

         (i)      Purchaser identified cost reductions will be reflected in the
                  pricing 100% after depletion of Materials.

         (ii)     50% of Manufacturer identified cost reductions will be
                  reflected in the pricing for ninety (90) days after depletion
                  of Materials, thereby sharing the cost reduction equally with
                  Purchaser. Thereafter, the full cost reduction will be
                  reflected in the base Material cost.

c.       Pricing will be reviewed and adjusted each calendar quarter by
         Manufacturer to reflect as a minimum: ECOs, present market conditions
         for material, cost reductions, present process yields, and changes in
         demand.

d.       Products depicted in Exhibit A will be priced as depicted in Exhibit G
         - Product Pricing. Product pricing will be revised from time to time as
         agreed by both parties.

17.      PROGRAM IMPROVEMENTS

Not withstanding Paragraph 16, Purchaser and Manufacturer will jointly work
towards process improvements in the following areas:

         *        Cost
         *        Quality
         *        Cycle Time
         *        On-time Delivery
         *        Communication
         *        Design improvements on manufacturability, quality, and cost.
         *        Other

Purchaser and Manufacturer will meet periodically but not less than every six
(6) months to review current worldwide material prices for high dollar
components and make changes with mutual agreement to procurement strategy to
achieve best total pricing. In addition, the items listed above will also be
included in the review cycle.

18.      NON-RECURRING EXPENSES AND PURCHASER OWNED EQUIPMENT

a.       Upon prior authorization via a purchase order by Purchaser,
         Manufacturer shall order and purchase for Purchaser at Purchaser's
         expense all of the process tooling, assembly tools, and test fixtures
         required to manufacture the Products except for tools consigned by
         Purchaser and listed in Exhibit D ("Consigned Equipment"). Manufacturer
         shall submit the request for authorization to Purchaser in writing and
         Purchaser shall grant or deny the request in writing within ten (10)
         days after the date of request. If Purchaser does not

                                    Page 12

<PAGE>

                     ARRIS - PLEXUS MANUFACTURING AGREEMENT

         respond to Manufacturer within the prescribed period for each request,
         the request shall be canceled. Manufacturer shall not be liable for the
         impact to production schedules should Purchaser not grant authorization
         or should not respond to a request in a timely manner. All Purchase
         Orders and Forecasts for Products requiring the tooling shall be
         mutually reviewed and adjusted accordingly.

b.       Manufacturer shall provide or contract for all maintenance and
         calibration required for the process tooling, manufacturing tooling and
         test equipment whether purchased by Manufacturer or consigned by
         Purchaser while in the possession of Manufacturer. Preventative
         maintenance shall be at the expense of Manufacturer. Remedial
         maintenance and scheduled calibration required shall be at the expense
         of the Purchaser.

c.       Upon termination of this Agreement Manufacturer all of the process
         tooling, manufacturing tooling and test equipment paid for by Purchaser
         as well as all consigned tooling and equipment supplied by Purchaser
         shall be returned in the manner set forth in Section 8 of this
         Agreement.

19.      ARRIS CONSIGNED INVENTORY

a.       Manufacturer acknowledges that Purchaser may have inventory that will
         be consigned to Manufacturer. Manufacturer will warehouse free of
         charge Purchaser owned inventory. Beginning balance is established per
         part/quantity detail contained on Exhibit E hereto (such inventory, the
         "Consigned Inventory"). The list of Consigned Inventory shall be
         updated to reflect such inventory as of actual transfer date pursuant
         to a physical inventory of the Consigned Inventory to occur as mutually
         agreed by both parties (and Exhibit E shall be updated to reflect such
         changes).

b.       Consigned Inventory will be stored at the designated manufacturing
         facility. Manufacturer assumes risk of loss for the Consigned Inventory
         with the exception of loss due to spoilage, reduction in moisture
         content, and similar items and due to fire, flood, theft, Act of God or
         other casualties. Purchaser shall insure the Inventory from such
         casualties, and provide Manufacturer, upon request with proof of such
         insurance.

c.       Manufacturer will procure consigned inventory from Purchaser at
         Manufacturer's quoted cost, as required to support Purchasers Forecast
         and/or Purchase Orders. There will be monthly reporting on all
         transfers of the Consigned Inventory to Manufacturer's production
         inventory. Manufacturer will use commercially reasonable efforts to use
         products in the Consigned Inventory before purchasing from any other
         supplier. Material ending balances will be calculated and reported
         monthly.

d.       All book to physical adjustments of inventory records for whatever
         reason other than normal machine set-up and fallout will be the
         financial liability of Manufacturer. Any such book to physical
         consigned inventory discrepancy will be corrected by Manufacturer
         issuing Purchaser a credit for the quoted cost of those components.

20.      Key Employees

         The C4 product designs, test process and the AG Com manufacturing
processes include critical technologies that reside in the knowledge and
practices of certain key team members at

                                    Page 13

<PAGE>

                     ARRIS - PLEXUS MANUFACTURING AGREEMENT

AG Com. Therefore, Plexus will make reasonable best effort to secure the
employment of the "Key Employees" depicted in Exhibit F - Key Employees.

                  [Signatures set forth on the following page]

                                    Page 14

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Manufacturing Agreement
to be executed by their duly authorized representatives as of the date first
written above.

Plexus Services Corp. (Manufacturer)     ARRIS International, Inc., (Purchaser)

By: /s/ Paul Ehlers                      By: /s/ James D. Lakin
    --------------------------           -------------------------
Name:                                    Name: James D. Lakin

Title:                                   Title: President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}]]