Document:

EX-10.8

Exhibit 10.8

SECOND AMENDMENT TO

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     THIS SECOND AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Second Amendment”)
is made and entered into effective as of the 26th day of November, 2008, by and between Arris
Group, Inc., a Delaware corporation (“Company”), and Robert Stanzione (“Executive”).

     WHEREAS, the parties hereto have entered into that certain Amended and Restated Employment
Agreement dated as of August 6, 2001, which was amended subsequently by the First Amendment to
Amended and Restated Employment Agreement dated as of December 7, 2006 (collectively the
“Agreement”); and

     WHEREAS, the parties hereto now desire to amend the Agreement as provided herein to make
certain changes in Executive’s supplemental pension benefit, provide for additional vesting of
Executive’s options and equity awards upon Executive’s termination of employment after he reaches
the age of 62 and bring the Agreement into compliance with Section 409A of the Code.

     NOW, THEREFORE, for and in consideration of Executive’s continued employment with Company and
the premises and the mutual covenants and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Company and Executive
hereby agree as follows:

1. Capitalized terms that are used but not defined in this Second Amendment shall have the meaning
specified in the Agreement.

2. The first sentence of Section 1 of the Agreement is amended in its entirety to read as follows:

Company will employ Executive and Executive will work for Company in the Atlanta
area as follows: Executive will serve as President, Chief Executive Officer and
Chairman of the Board until this Agreement is terminated as provided in Section 5
(the “Termination Date”).

3. The last sentence of Section 2 is amended in its entirety to read as follows:

Executive’s Base Compensation shall be payable semi-monthly in accordance with the
ordinary payroll practices of Company, and the Bonus shall be payable as soon after
the end of each calendar year to which it relates as it can be determined, but in
any event within two and one-half (2-1/2) months thereafter.

4. Section 3(b) of the Agreement is amended in its entirety to read as follows:

Without limitation of any other rights under the Benefit Plans to which Executive
may be entitled, Executive will be provided a non-qualified supplemental pension

 

 

by Company in an amount equal to (i) the amount of pension he would have had under
Company’s defined benefit retirement plan and related excess benefit plan if the
period of Executive’s service under those plans were tripled for all purposes and
all calculations of Executive’s benefits were made in accordance with the terms and
definitions set forth in the Plan (as defined below), including without limitation
for purposes of eligibility for a pension, less (ii) the amount of pension to which
Executive is entitled under Company’s defined benefit retirement plan and related
excess benefit plan. Notwithstanding the foregoing, the amount of Executive’s
supplemental pension shall not exceed the amount calculated as determined in the
preceding sentence as of the time Executive reaches the age of 62 increased or
decreased as described in the next sentence. In the event Executive’s employment
under this Agreement continues past the time Executive reaches the age of 62, then
Executive’s supplemental pension from Company shall equal the amount Executive would
have received had he retired from employment with Company at the time he reached age
62, calculated as of the time Executive reaches age 62 (without regard to any
compensation or benefits payable to Executive or any service by Executive after such
time), increased by an amount equal to the interest, dividends, earnings and other
profits that would be received, and decreased by an amount equal to the losses,
expenses and other charges that would be incurred, on the then actuarial equivalent
lump sum value of Executive’s supplemental pension benefit as of age 62 if such
amount had been invested, from the time Executive reaches age 62 until the
Termination Date, in one or more permitted investments that Executive may designate
from time to time, in accordance with the Robert Stanzione Supplemental Executive
Retirement Plan (the “Plan” by reference made a part hereof). This supplemental
pension benefit will be calculated and paid in accordance with the provisions of
that Plan as of the date hereof or as amended from time to time hereafter by mutual
written agreement of Company and Executive. Company also will establish a mutually
agreeable and irrevocable grantor trust (as described in Section 671 of the Internal
Revenue Code) for the purpose of accumulating assets to provide for its obligations
under this Section. The assets and income of such trust shall be subject only to
the claims of the creditors of Company in the event of Company’s insolvency as
defined in Rev. Proc. 92-64, 1992-2 C.B. 422. The establishment of such trust shall
not affect Company’s liability to pay benefits hereunder except that any such
liability shall be offset by any payments actually made to Executive from such
trust. Company will reasonably determine the amounts to contribute to such trust
pursuant to the requirements of the Plan, and the investment of the assets of the
trust shall be made in accordance with the terms of the trust document. Without
limitation, but only to the extent not prohibited by Section 409A(b) of the Code,
Company agrees to contribute to the trust pursuant to the requirements of the Plan,
ratably from the date hereof until the date Executive attains age 62 with respect to
the amount of the obligation due at age 62 and annually as the obligation accrues
each year thereafter, sufficient amounts to provide for the Company’s liability to
pay the benefits hereunder, except that Company agrees in any event to contribute
sufficient amounts to pay all the benefits hereunder no later than when a “Change in
Control” occurs (to the

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extent not prohibited by Section 409A(b) of the Code). The terms of the trust shall
contain such provisions as may be necessary to qualify the trust as a “rabbi trust”
under applicable rules so that the supplemental pension arrangement may be
considered “unfunded” for purposes of the Employee Retirement Income Security Act of
1974, as amended.

5. The second sentence of Section 5(a) of the Agreement is amended in its entirety to read as
follows:

The termination will not be effective until two years (one year for any termination
on or after the date Executive reaches the age of 62) after written notice of
termination is given Executive unless termination is for “Good Cause.”

6. The second sentence of Section 5(b) of the Agreement is amended in its entirety to read as
follows:

The termination will not be effective until two years (one year for any termination
on or after the date Executive reaches the age of 62) after written notice is given
Company unless termination is for “Good Reason.”

7. Section 5(c) of the Agreement is amended in its entirety to read as follows:

(c) If Executive terminates this Agreement and simultaneously therewith his
employment by Company for Good Reason on or before the date that Executive attains
age 62 or under clause (iii) of the definition of Good Reason after the date that
Executive attains age 62, subject to Executive’s continued compliance with Sections
5(d) and 6 below, all of Executive’s stock options and other equity awards
outstanding at the Termination Date shall fully vest as of the Termination Date and
such stock options shall remain outstanding until the original expiration date of
the stock options (disregarding any earlier expiration date based on Executive’s
termination of employment), and Company for a period of three years from such
Termination Date (the period during which Executive is entitled to severance
benefits is the “Severance Period”) shall continue to provide to Executive (a) his
Base Compensation, at the rate most recently determined, on a semi-monthly basis
beginning with the first semi-monthly payroll date after the Termination Date and
continuing through the Severance Period in accordance with the ordinary payroll
practices of Company, (b) a bonus for each Company fiscal year (and a pro rata
amount for each partial Company fiscal year) in the Severance Period in an amount
equal to Executive’s Typical Annual Bonus at the Termination Date (or a pro rata
amount of said Typical Annual Bonus for any partial Company fiscal year in the
Severance Period), with the bonus for any fiscal year or partial year in the
Severance Period to be paid after the end of such fiscal year or partial year and
within two and one half (2-1/2) months thereafter, and (c) the Benefit Plans as
provided by Section 3(a) on a monthly basis through the Severance Period (subject in
the case of long-term disability to the availability of such coverage under
Company’s insurance policy). Executive’s Typical Annual

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Bonus at the Termination Date shall be the annual average of the three highest full
year Bonuses received by Executive for the five full years immediately preceding the
Termination Date. If Company terminates this Agreement and simultaneously therewith
Executive’s employment by Company other than for Good Cause after the date that
Executive attains age 62, or Executive terminates this Agreement and simultaneously
therewith his employment by Company for Good Reason (other than under clause (iii)
of the definition thereof) after the date that Executive attains age 62, Company
shall continue to provide to Executive, to the extent Company does not retain
Executive during the full twelve (12)-month notice period described in Section 5(a)
or (b) above, (a) his Base Compensation, at the rate most recently determined, on a
semi-monthly basis beginning with the first semi-monthly payroll date after the
Termination Date (the period during which Executive is entitled to these severance
benefits is the “Notice Period”) and continuing through the Notice Period in
accordance with the ordinary payroll practices of Company, (b) a bonus for each
Company fiscal year (and a pro rata amount for each partial Company fiscal year) in
the Notice Period in an amount equal to Executive’s Typical Annual Bonus at the
Termination Date (or a pro-rata amount of said Typical Annual Bonus for any partial
Company fiscal year in the Notice Period), with the bonus for any fiscal year or
partial year in the Notice Period to be paid after the end of such fiscal year or
partial year and within two and one-half (2-1/2) months thereafter, and (c) the
Benefit Plans as provided by Section 3(a) on a monthly basis through the Notice
Period (subject in the case of long-term disability to the availability of such
coverage under Company’s insurance policy). Subject to Executive’s continued
compliance with Sections 5(d) and 6, if Executive terminates his employment under
this Agreement with or without Good Reason (or Company terminates Executive’s
employment under this Agreement without Good Cause) after Executive attains the age
of 62, all of Executive’s stock options and other equity awards outstanding at the
Termination Date shall continue to vest for four (4) years after the Termination
Date as if Executive remained employed through such time, and such stock options
shall remain outstanding through the original expiration date of the stock options
(disregarding any expiration date based on Executive’s termination of employment).
Notwithstanding the foregoing, all payments to be made or benefits to be provided
under this Section are subject to the provisions of Section 5(f) below.

8. Section 5(d) of the Agreement is amended in its entirety to read as follows:

During the Severance Period or the four (4) years after the Termination Date, as
applicable in Section 5(c) above, Executive will serve Company as a consultant on
matters within Executive’s expertise or knowledge as may be reasonably requested by
Company. All such consultation will be arranged by Company so as to not interfere
with the other activities of Executive. Executive will be promptly reimbursed by
Company for any expenses incurred by Executive at the direction of Company upon
submission of appropriate documentation of such expenses, subject to the prevailing
Company policies or other guidelines for reimbursement

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of expenses, but in no event later than the last day of the year following the year
in which Executive incurs the reimbursable expense.

9. Section 5(f) of the Agreement is amended in its entirety to read as follows:

(f) Notwithstanding any other provisions of this Agreement, it is intended that any
payment or benefit which is provided pursuant to or in connection with this
Agreement and which is considered to be nonqualified deferred compensation subject
to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), will
be provided and paid in a manner, and at such time, as complies with Section 409A of
the Code. For purposes of this Agreement, all rights to payments and benefits
hereunder shall be treated as rights to receive a series of separate payments and
benefits to the fullest extent allowed by Section 409A of the Code. If Executive is
a key employee (as defined in Section 416(i) of the Code without regard to paragraph
(5) hereof) and any of Company’s stock is publicly traded on an established
securities market or otherwise, then the payment of any amount or provision of any
benefit under this Agreement which is considered to be nonqualified deferred
compensation subject to Section 409A of the Code shall be deferred for six (6)
months after the Termination Date or, if earlier, Executive’s death (the “409A
Deferral Period”), as required by Section 409A(a)(2)(B)(i) of the Code. In the
event payments are otherwise due to be made in installments or periodically during
such 409A Deferral Period, the payments which would otherwise have been made in the
409A Deferral Period shall be accumulated and paid in a lump sum as soon as the 409A
Deferral Period ends, and the balance of the payments shall be made as otherwise
scheduled. In the event, benefits are otherwise to be provided hereunder during
such 409A Deferral Period, any such benefits may be provided during the 409A
Deferral Period at Executive’s expense, with Executive having a right to
reimbursement for such expense from the Company as soon as the 409A Deferral Period
ends, and the balance of the benefits shall be provided as otherwise scheduled. For
purposes of this Agreement, Executive’s termination of employment shall be construed
to mean a “separation from service” within the meaning of Section 409A of the Code
where it is reasonably anticipated that no further services will be performed by
Executive for or on behalf of the Company or any of its subsidiaries or affiliates
after such date or that the level of bona fide services Executive would perform for
or on behalf of the Company or any of its subsidiaries or affiliates after that date
(whether as an employee or independent contractor) would permanently decrease to no
more than forty-nine percent (49%) of the average level of bona fide services
performed for or on behalf of the Company or any of its subsidiaries or affiliates
over the immediately preceding thirty-six (36)-month period. Without limitation, if
any payment or benefit which is provided pursuant to or in connection with this
Agreement and which is considered to be nonqualified deferred compensation subject
to Section 409A of the Code fails to comply with Section 409A of the Code, and
Executive incurs any additional tax, interest and penalties under Section 409A of
the Code, Company will pay Executive an additional amount so that, after paying all
taxes,

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interest and penalties on such additional amount, Executive has an amount remaining
equal to such additional tax, interest and penalties. All payments to be made to
Executive pursuant to the immediately preceding sentence shall be payable no later
than when the related taxes, interest and penalties are to be remitted. Any right
to reimbursement incurred due to a tax audit or litigation addressing the existence
or amount of a tax liability addressed in the immediately preceding sentence must be
made no later than when the related taxes, interest and penalties that are the
subject of the audit or litigation are to be remitted to the taxing authorities or,
where no such taxes, interest and penalties are remitted, within thirty (30) days of
when the audit is completed or there is a final non-appealable settlement or
resolution of the litigation.

10. Section 6 of the Agreement is amended in its entirety to read as follows:

(a) As used in this Section:

“Business of Company” means providing products and services to broadband internet
service providers which support a full range of integrated voice, video and
high-speed data services to the subscribers of such providers.

“Restricted Period” means the period beginning on the Termination Date and ending on
the third anniversary of the Termination Date.

“Restricted Territory” means, and is limited to, the 50 states of the United States
of America. Executive acknowledges and agrees that this is the area in which the
Company does business at the time of execution of this Agreement, and in which
Executive will have responsibility, at a minimum, on behalf of the Company.

“Material Contact” means contact in person, by telephone or by paper or electronic
correspondence, in furtherance of the business interests of Company.

(b) Executive agrees that during Executive’s employment hereunder and during the
Restricted Period, Executive shall not, within the Restricted Territory, perform
services on his own behalf or on behalf of any other person or entity, which are the
same as or similar to those he provided to Company and which support any business
activities which compete with the Business of Company.

(c) Executive agrees that during Executive’s employment hereunder and during the
Restricted Period, Executive shall not, directly or indirectly, solicit any actual
or prospective customers of Company with whom Executive had Material Contact, for
the purpose of selling any products or services which compete with the Business of
Company.

(d) Executive agrees that during Executive’s employment hereunder and during the
Restricted Period, Executive shall not, directly or indirectly, solicit any actual
or prospective vendor of Company with whom Executive had Material

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Contact, for the purpose of providing products or services in support of any
business activities which compete with the Business of Company.

(e) Executive agrees that during Executive’s employment hereunder and during the
Restricted Period, Executive shall not, directly or indirectly, solicit or induce
any employee or independent contractor of Company with whom Executive had Material
Contact to terminate such employment or contract with Company.

Notwithstanding the foregoing, it is understood and agreed that, without limitation
on other available remedies, the restrictions on Executive set forth in Sections 6
(b), (c), (d) and (e) hereof shall not be applicable at any time that Company is in
breach of its contractual obligations to Executive under this Agreement or the Plan
following the thirty (30) days after being notified in writing by Executive of such
breach and failure of the Company to cure same. In the event Company cures such
breach, the restrictions set forth in Sections 6(b), (c), (d) and (e) hereof shall
continue pursuant to their terms as if such breach never occurred.

11. Section 7 of the Agreement is amended in its entirety to read as follows:

Company will pay to Executive the amount of any excise taxes, penalties and interest
imposed on Executive under Section 4999 of the Code by reason of payments or
benefits under the provisions of this Agreement, including this provision, and the
amount of any federal and state income taxes, penalties and interest imposed on
Executive by reason of payments to Executive under this Section. All payments to be
made to Executive under this Section shall be payable no later than when the related
taxes are to be remitted. Any right to reimbursement incurred due to a tax audit or
litigation addressing the existence or amount of a tax liability under this Section
must be made no later than when the related taxes that are the subject of the audit
or litigation are to be remitted to the taxing authorities or, where no such taxes
are remitted, within thirty (30) days of when the audit is completed or there is a
final and non-appealable settlement or resolution of the litigation.

12. Section 14 of the Agreement is amended in its entirety to read as follows:

The prevailing party in any litigation concerning this Agreement shall be reimbursed
by the party found to be in breach of this Agreement for all reasonable costs,
including attorneys fees, incurred by the prevailing party in enforcing this
Agreement within thirty (30) days after any final settlement or resolution in which
the party substantially prevails.

13. Section 16 of the Agreement is amended in its entirety to read as follows:

Subject to and conditioned upon Company not having terminated this Agreement
pursuant to Section 5(a)(i) or (ii), Executive will be provided the supplemental

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pension benefits described in Section 3(b) above as set forth in the attached
Supplemental Executive Retirement Plan.

14. Except as amended hereby, the Agreement shall remain in full force and effect.

15. The provisions of Sections 9 through 12 of the Agreement shall apply to this Second Amendment
as if set forth in their entirety herein.

16. In the event that there is any conflict between the provisions of this Agreement and the
provisions of the Plan, the provisions of the Plan shall control.

     IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the day first
above written.

	 	 	 	 	 	 	 
	 	 	COMPANY	 	 
	 
	 	 	 	 	 	 
	 	 	Arris Group, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Lawrence A. Margolis
 

Lawrence A. Margolis
	 	 
	 

	 	Title:
	 	Executive Vice President of Strategic Planning, Administration and Chief Counsel,
Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Robert Stanzione	 	 
	 	 	 	 	 
	 	 	Robert Stanzione	 	 

8EX-10.9

Exhibit 10.9

FIRST AMENDMENT TO THE ROBERT STANZIONE

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

     THIS FIRST AMENDMENT TO THE ROBERT STANZIONE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (this
“Amendment”) is made and entered into effective as of the 26th day of November, 2008, by and
between Arris Group, Inc., a Delaware corporation (“Corporation”), and Robert Stanzione
(“Participant”).

     WHEREAS, Corporation and Participant previously entered into the Robert Stanzione Supplemental
Participant Retirement Plan, effective August 6, 2001 (the “Plan”), to provide certain supplemental
retirement benefits to Participant on the terms and conditions stated therein; and

     WHEREAS, the parties hereto now desire to amend the Plan as provided herein.

     NOW, THEREFORE, for and in consideration of Participant’s continued employment with
Corporation and the premises and the mutual covenants and agreements contained herein, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Corporation and Participant hereby agree as follows:

1. Capitalized terms that are used but not defined in this Amendment shall have the meanings
specified in the Plan.

2. Section 1.08 of the Plan is amended in its entirety to read as follows:

1.08 Employment Agreement

The Amended and Restated Employment Agreement between Participant and Corporation
effective August 6, 2001, as amended by the First Amendment to Amended and Restated
Employment Agreement effective December 7, 2006 and as subsequently amended by the
Second Amendment to Amended and Restated Employment Agreement dated November 26th,
2008. All defined terms from the Employment Agreement not defined in this Plan
shall have the same meaning in this Plan as in the Employment Agreement.

3. Section 1.16 of the Plan is amended in its entirety to read as follows:

1.16 Termination of Service

Participant’s separation from service with the Corporation, its subsidiaries and
affiliates, whether by resignation, discharge, death, disability, retirement or
otherwise, consistent with the meaning of a “separation from service” under Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”), where it is
reasonably anticipated that no further services would be performed for or on behalf
of the Corporation or any of its subsidiaries or affiliates after such

 

 

date or that the level of bona fide services Participant would perform after that
date for or on behalf of the Corporation or any of its subsidiaries or affiliates
(whether as an employee or an independent contractor) would permanently decrease to
no more than forty-nine percent (49%) of the average level of bona fide services
performed for or on behalf of the Corporation or any of its subsidiaries or
affiliates over the immediately preceding thirty-six (36)-month period.

4. The last two sentences of Section 2.02(b) of the Plan are amended in their entirety to read as
follows:

Benefit payments under this Section 2.02 shall commence on the first day of the
month coincident with or next following Participant’s Termination of Service on his
Normal Retirement Date.

5. Section 2.03 of the Plan is amended in its entirety to read as follows:

If Participant incurs a Termination of Service after his Normal Retirement Date, he
shall receive a Late Retirement Benefit in an amount equal to (a) the Actuarial
Equivalent lump sum value of his Normal Retirement Benefit calculated as if his
Termination of Service (and thus, the calculations of the Normal Retirement Benefit,
Final Average Compensation, Continuous Service and benefits payable from Other
Retirement Programs) occurred on his Normal Retirement Date in accordance with
Section 2.02 above (without regard to any changes after his Normal Retirement Date
in his Continuous Service, Final Average Compensation and the benefits payable from
Other Retirement Programs), (b) increased by an amount equal to the interest,
dividends, earnings and other profits that would be received, and decreased by an
amount equal to the losses, expenses and other charges that would be incurred, on
such Actuarial Equivalent lump sum value if such amount were invested pursuant to
Participant’s investment directions among the Permitted Investments in accordance
with Article V of this Plan, beginning as of Participant’s Normal Retirement Date
and ending on his Termination of Service (with the resulting sum as calculated
above, expressed as an Actuarial Equivalent monthly benefit payable as a single life
annuity). Benefit payments under this Section 2.03 shall commence on the first day
of the month coincident with or next following Participant’s Termination of Service
after his Normal Retirement Date. It is understood and agreed that although the
Normal Retirement Benefit is calculated initially as of the Normal Retirement Date
and increased by deemed interest, dividends, earnings and profits and decreased by
deemed losses, expenses and other charges thereafter, Executive’s benefits under the
Other Retirement Programs will continue to accrue under the terms of the Other
Retirement Programs until Executive’s Termination of Service.

6. The first two sentences of Section 2.04 of the Plan are amended in their entirety to read as
follows:

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If Participant terminates the Employment Agreement with Good Reason prior to his
Normal Retirement Date or incurs a Termination of Service after his Early Retirement
Date, but prior to his Normal Retirement Date not due to the termination by the
Corporation of the Employment Agreement pursuant to Section 5(a)(i) or (ii) of the
Employment Agreement, Participant shall receive a benefit, in an amount equal to his
Normal Retirement Benefit calculated in accordance with Section 2.02 as of his
Normal Retirement Date (but with the calculations of his Final Average Compensation
and Continuous Service as of his Termination of Service and the benefits payable
from Other Retirement Programs as of the Normal Retirement Date), said amount to be
paid commencing on the first day of the month coincident with or next following his
Normal Retirement Date. Alternately, Participant may elect to receive a reduced
monthly benefit commencing on the first day of any month before his Normal
Retirement Date and following his Termination of Service. Any such election by
Participant to receive a reduced monthly benefit commencing on the first day of any
month before his Normal Retirement Date and following his Termination of Service
must specify the first day of the month payment shall commence within such time
period and be filed with the Committee on or before December 31, 2008 and will only
be effective with respect to any Termination of Service occurring on or after
January 1, 2009. Any such elections shall be in writing, in such form as the
Committee may require, and, once filed with the Committee, may be withdrawn only by
written notice of withdrawal filed with the Committee within the time limits for
making an election.

7. The last sentence of Section 2.04 of the Plan is amended in its entirety to read as follows:

     In the event Termination of Service is by Participant for Good Reason as
defined in clause (iii) of Section 5(b) of the Employment Agreement, the benefit
pursuant to this Section 2.04 shall not be lower than $33,333, less the benefits
payable to Participant from the Other Retirement Programs, including the benefits
that would have been payable to him if he had not elected to accept other benefits
in lieu of the benefits provided by the Other Retirement Programs (expressed as
Actuarial Equivalent monthly benefits payable as single life annuities commencing on
the first day of the month coincident with or next following Participant’s Normal
Retirement Date.

8. Section 2.05 of the Plan is amended by adding the following to the end thereof:

Notwithstanding any other provision of the Plan, the Joint and Survivor Annuity that
Participant elects in lieu of a single life annuity must be the Actuarial Equivalent
of the single life benefit.

9. Section 2.07 of the Plan is amended in its entirety to read as follows:

In lieu of the benefits to which Participant or his Surviving Spouse would otherwise
be entitled under the foregoing provisions of this Article II, Participant

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may elect to receive an Actuarial Equivalent lump sum payment of such benefit,
subject to the following:

(a) Any such election to receive an Actuarial Equivalent lump sum payment of such
benefit must be filed with the Committee on or before December 31, 2008 and will
only be effective with respect to any Termination of Service occurring on or after
January 1, 2009. Any such election shall be in writing, in such form as the
Committee may require, and once filed with the Committee, may be withdrawn only by
written notice of withdrawal filed with the Committee within the time limits for
making an election.

(b) If Participant makes an effective election under this Section 2.07, the lump sum
payment shall be made in full on the date the benefit payments otherwise would have
commenced notwithstanding the Participant’s election to receive an Actuarial
Equivalent lump sum payment of such benefit.

10. New Section 2.08 is added to the Plan to read as follows:

2.08 Internal Revenue Code Section 409A

Notwithstanding any other provision of this Plan, it is intended that any payment or
benefit which is provided pursuant to or in connection with this Plan, which is
considered to be nonqualified deferred compensation subject to Section 409A of the
Code, shall be provided and paid in a manner, and at such time and in such form, as
complies with the applicable requirements of Section 409A of the Code. For purposes
of this Plan, all rights to payments hereunder shall be treated as rights to receive
a series of separate payments to the fullest extent allowed by Section 409A of the
Code. Payments in connection with a “separation from service” will be delayed, to
the extent required by Section 409A of the Code, until six months after the
Participant’s separation from service or, if earlier, the Participant’s death (the
“409A Deferral Period”), if the Participant is a key employee as defined in Section
416(i) of the Code (without regard to paragraph (5) thereof) and any of
Corporation’s stock is publicly traded on an established securities market or
otherwise. In the event any payments are due to made in installments or
periodically during the 409A Deferral Period, the payments which would otherwise
have been made in the 409A Deferral Period shall be accumulated and paid in a lump
sum as soon as the 409A Deferral Period ends, and the balance of the payments shall
be made as otherwise scheduled.

Any benefit payable under the Plan shall be paid as described in the Plan. The Plan
is intended to satisfy the requirements of Section 409A of the Code, and all
provisions of the Plan shall be interpreted in such manner.

Without limitation, if any payment or benefit which is provided pursuant to or in
connection with the Plan and which is considered to be nonqualified deferred
compensation subject to Section 409A of the Code fails to comply with Section 409A
of the Code, and Participant incurs any additional tax, interest or penalties

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under Section 409A of the Code, the Corporation will pay Participant an additional
amount so that, after paying all taxes, interest and penalties on such additional
amount, Participant has an amount remaining equal to such additional tax, interest
and penalties. All payments to be made to Participant pursuant to the immediately
preceding sentence shall be payable no later than when the related taxes, interest
and penalties are to be remitted. Any right to reimbursement incurred due to a tax
audit or litigation addressing the existence or amount of a tax liability addressed
in the immediately preceding sentence must be made no later than when the related
taxes, interest and penalties that are the subject of the audit or litigation are to
be remitted to the taxing authorities or, where no such taxes, interest and
penalties are remitted, within thirty (30) days of when the audit is completed or
there is a final and non-appealable settlement or resolution of the litigation.

11. Section 3.04 of the Plan is amended by adding the following to the end thereof:

Notwithstanding the foregoing, as soon as administratively practicable following the
execution of this Amendment, the Corporation will establish an irrevocable grantor
trust (as described in Section 671 of the Code), into which all of Participant’s
benefits under the Plan will be deposited, as described herein, for the purpose of
accumulating assets to provide for the obligations under this Plan. The assets and
income of such trust shall be subject only to the claims of the creditors of the
Corporation in the event of the Corporation’s insolvency as defined by Rev. Proc.
92-64, 1992-2 C.B. 422. The establishment of such trust shall not affect the
Corporation’s liability to pay benefits hereunder except that any such liability
shall be offset by any payments actually made to Participant from such trust.
Following the establishment of the trust, the amount to be contributed thereto shall
be in accordance with the Plan, as reasonably determined by the Corporation, and the
investment of such assets shall be made in accordance with the terms of the trust
agreement. Without limitation, but only to the extent not prohibited by Section
409A(b) of the Code, the Corporation agrees to contribute to the trust pursuant to
the requirements of the Plan, ratably from the date hereof until the time Executive
attains age 62 with respect to the amount of the obligation due at age 62 and
annually as the obligation accrues each year thereafter, sufficient amounts to
provide for the Corporation’s liability to pay the benefits hereunder, except the
Company agrees in any event to contribute sufficient amounts to pay all the benefits
hereunder no later than when a “Change in Control” occurs (to the extent such
funding is not prohibited by Section 409A(b) of the Code. The terms of the trust
shall contain such provisions as may be necessary to qualify and maintain the trust
as a “rabbi trust” under the applicable trust agreement so that the Plan may be
considered “unfunded” for purposes of ERISA.

5

 

12. New Article V is added to the Plan to read as follows:

ARTICLE V

EARNINGS AND LOSSES

5.01 Permitted Investments

     On and after attaining age 62 and prior to his Termination of Service, Participant may
designate that the Actuarial Equivalent lump sum value of his Normal Retirement Benefit
calculated as if his Termination of Service occurred on his Normal Retirement Date (and as
adjusted pursuant to this Article V) be deemed to have been invested in one or more
Permitted Investments as described below. Participant’s designations shall be made in such
form, and in such manner, as the Committee may permit but must result in the deemed
investment of one hundred percent (100%) of the Actuarial Equivalent lump sum value of
Participant’s Normal Retirement Benefit calculated as if his Termination of Service occurred
on his Normal Retirement Date (and as adjusted pursuant to this Article V). In the event
Participant has made an incomplete or improper election, Participant shall be deemed to have
elected the Permitted Investment selected by the Committee.

5.02 Earnings and Losses

     On and after Participant attains age 62 and prior to his Termination of Service, the
Actuarial Equivalent lump sum value of Participant’s Normal Retirement Benefit calculated as
if his Termination of Service occurred on his Normal Retirement Date (and as adjusted
pursuant to this Article V) shall be deemed to receive all interest, dividends, earnings and
other profits, and to have incurred all losses, expenses and other charges, which would have
been received or incurred if such Actuarial Equivalent lump sum value (and as adjusted
pursuant to this Article V) had been invested in such Permitted Investments. Nevertheless,
the Company need not actually make any such Permitted Investments, which shall represent
investment benchmarks only. If the Company from time to time should make any investments
similar to Permitted Investments, such investments shall be solely for the Company’s own
account, and neither Participant nor his Beneficiaries shall have any right, title or
interest therein. Participant and his Beneficiaries are unsecured creditors of the Company
with respect to any amounts to be distributed under this Plan.

5.03 Change of Permitted Investments

     Participant may change an investment election effective as of the first day of any
month (provided at least thirty (30) days have elapsed since any such previous election).
In addition, Participant also may reallocate amounts previously credited to one or more
Permitted Investments to other Permitted Investments offered under this Plan effective as of
the first day of any month (provided at least thirty (30) days have elapsed since any such
previous election). Such changes of election shall be made in such form, and in such
manner, as the Committee may permit but must result in the deemed investment of one hundred
percent (100%) of the Actuarial Equivalent lump sum value of Participant’s

6

 

Normal Retirement Benefit calculated as if his Termination of Service occurred on his Normal
Retirement Date (and as adjusted pursuant to this Article V). Any changes of election shall
be effective as of the first day of the month as soon as practical following receipt of the
change election by the Committee or its designee for this purpose; provided, however, that
an election change will not be effective until at least thirty (30) days have passed since
Participant’s prior election.

5.04 Crediting of Earnings and Losses

     The Actuarial Equivalent lump sum value of Participant’s Normal Retirement Benefit
calculated as if his Termination of Service occurred on his Normal Retirement Date (and as
adjusted pursuant to this Article V) shall be credited with interest, dividends, earnings
and profits and debited with losses, expenses and other charges thereon no less frequently
than monthly.

5.05 Permitted Investment

     Permitted Investment means any such fund or type of investment as may
be approved by the Committee from time to time as a deemed benchmark
investment for purposes of the Plan, except that a Permitted
Investment may not include any stock or securities of the Company or
any subsidiaries or affiliates.

13. New Article VI is added to the Plan to read as follows:

ARTICLE VI

TAX WITHHOLDING

6.01 Tax Withholding

     Notwithstanding any other provision of this Plan, the Company shall
withhold from any payments hereunder or obtain from Participant any
amounts required to be withheld as the result of Participant’s
participation in this Plan. To the extent that the Company is
required to withhold any income taxes, employment taxes or other such
amounts from Participant’s benefit pursuant to any state, federal or
local law, such amounts may be taken out of any payments hereunder or
any other amounts to be paid to Participant or Participant may be
required to pay in cash any amounts that must be withheld.
Notwithstanding the foregoing, to the extent permitted by Section
409A of the Code, payment may be made and deducted from Participant’s
supplemental pension benefit payable hereunder to pay any relevant
employment taxes required to be withheld with respect to the Plan and
to pay any required income tax withholdings as a result of payment of
such employment taxes. However, the total payment and deduction from
Participant’s supplemental pension benefit hereunder may not exceed
the aggregate of such employment taxes and any income tax withholding
related to the payment of such employment taxes.

7

 

14. It is understood and agreed that the Plan can be amended only pursuant to the mutual written
agreement of the Participant and the Corporation. Except as amended hereby, the Plan shall remain
in full force and effect.

15. Participant agrees that the Corporation may amend the Other Retirement Programs as reasonably
necessary to bring them into compliance with Section 409A of the Code taking into account
corresponding changes as to the form and time of payment of Participant’s benefits under the Plan. 
Participant acknowledges that this may require payment of Participant’s benefits under the Other
Retirement Programs at the same time and in the same form as Participant’s benefits under the Plan.

     IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of the date first above
written.

	 	 	 	 	 	 	 
	 	 	COMPANY	 	 
	 
	 	 	 	 	 	 
	 	 	Arris Group, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Lawrence A. Margolis
 

Lawrence A. Margolis
	 	 
	 

	 	Title:
	 	Executive Vice President of Strategic Planning, Administration and Chief Counsel, Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Robert Stanzione	 	 
	 	 	 	 	 
	 	 	Robert Stanzione	 	 

8

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