Document:

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                                                                   EXHIBIT 10.42

                           UNIVERSAL ELECTRONICS INC.
                          1999A NONQUALIFIED STOCK PLAN

                            EFFECTIVE OCTOBER 7, 1999
                   (AS SUBSEQUENTLY AMENDED FEBRUARY 1, 2000)

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                                TABLE OF CONTENTS

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SECTION                                                                                   PAGE
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Section 1.  General Purpose of Plan; Definition ........................................... 1

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

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

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

Section 5.  Stock Options.................................................................  4

        (a)     Grant and Exercise .......................................................  4
               (i)   Nature of Options....................................................  4
               (ii)  Exercisability.......................................................  4
               (iii) Method of Exercise...................................................  4

        (b)     Terms and Conditions......................................................  4
               (i)   Option Price.........................................................  5
               (ii)  Option Term..........................................................  5
               (iii) Transferability of Options...........................................  5
               (iv)  Option Exercise after Termination by Reason of Death or Disability...  5
               (v)   Option Exercise after Termination without Cause or
                     Constructive Termination.............................................  5
               (vi)  Option Exercise after Termination to Resignation.....................  5
               (vii) Other Termination....................................................  5

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

        (a)     Grant and Exercise........................................................  6
               (i)   Time of Grant........................................................  6
               (ii)  Exercisability.......................................................  6
               (iii) Method of Exercise...................................................  6
               (iv)  Amount Payable.......................................................  6

        (b)     Terms and Conditions......................................................  6
               (i)     Terms of Stock Appreciation Rights.................................  6
               (ii)    Transferability of Stock Appreciation Rights.......................  7
               (iii)   Termination of Employment..........................................  7

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

        (a) Grant.........................................................................  7
        (b) Terms and Conditions..........................................................  7
        (c) Completion of Restriction Period and Attainment of Performance Objectives.....  8

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

Section 9.  Unfunded Status of Plan.......................................................  8

Section 10.  General Provisions...........................................................  8

Section 11.  Effective Date of Plan.......................................................  9

Section 12.  Term of Plan.................................................................  9
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                           UNIVERSAL ELECTRONICS INC.
                          1999A NONQUALIFIED STOCK PLAN

SECTION 1.  GENERAL PURPOSE OF PLAN; DEFINITIONS.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(r)     "Stock Option" means a nonqualified stock option (i.e., a Stock Option
        that does not qualify as an "incentive stock option" within the meaning
        of Section 422 of the Code) to purchase shares of Stock granted pursuant
        to Section 5 of this Plan.

(s)     "Subsidiary" means any corporation in an unbroken chain of corporations
        beginning with the Corporation, if each of the corporations (other than
        the last corporation in the unbroken chain) owns stock possessing 50% or
        more of the total combined voting power of all classes of stock in one
        of the other corporations in the chain.

SECTION 2.  ADMINISTRATION.

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

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

(a)     to select Participants;

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

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

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

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

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

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

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

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

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

The total number of shares of Stock reserved and available for issuance under
this Plan shall be one million (1,000,000). Such shares of Stock may consist, in
whole or in part, of authorized and unissued shares of Stock or issued shares of
Stock reacquired by the Corporation at any time, as the Board may determine.

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

In the event of any merger, reorganization, consolidation, recapitalization,
stock dividend, spin-off, or other change in corporate structure or
capitalization affecting the Stock, the Committee shall make an equitable
adjustment or substitution in the number and class of shares reserved for
issuance under this Plan, the number and class of shares covered by outstanding
Awards and the option price per share of Stock Options or the applicable price
per share specified in Stock Appreciation Rights to reflect the effect of such
change in corporate structure or capitalization on the Stock; provided, however,
that any fractional shares resulting from such adjustment shall be eliminated;
provided further, however, that if by reason of any such change in corporate
structure or capitalization a Participant holding a Restricted Stock Unit Award
or Performance Stock Unit Award shall be entitled, subject to the terms and
conditions of such Award, to additional or different shares of any security, the
issuance of such additional or different shares shall thereupon be subject to
all of the terms and conditions (including restrictions and performance
criteria) which were applicable to such Award prior to such change in corporate
structure or capitalization; and, provided, further, however, that unless the
Committee in its sole discretion determines otherwise, any issuance by the
Corporation of shares of stock of any class or securities convertible into
shares of stock of any class shall not affect, and no such adjustment or
substitution by reason thereof shall be made with respect to, the number or
class of shares reserved for issuance under this Plan, the number or class of
shares covered by outstanding Awards or any option price or applicable price.

SECTION 4.  ELIGIBILITY.

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

SECTION 5.  STOCK OPTIONS.

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

        (i)     NATURE OF OPTIONS. Under this Plan, the Committee shall have the
                authority to grant any Participant Stock Options with or without
                Stock Appreciation Rights.

        (ii)    EXERCISABILITY. Subject to such terms and conditions as shall be
                determined by the Committee in its sole discretion at or after
                the time of grant, Stock Options shall be exercisable from time
                to time to the extent of 25% of the number of shares of Stock
                covered by the Stock Option on and after the first anniversary
                and before the second anniversary of the date of grant of the
                Stock Option, to the extent of 50% of the number of shares of
                Stock covered by the Stock Option on and after the second
                anniversary and before the third anniversary of the date of
                grant of the Stock Option, to the extent of 75% of the number of
                shares of Stock covered by the Stock Option on and after the
                third anniversary and before the fourth anniversary of the date
                of grant of the Stock Option and to the extent of 100% of the
                number of shares of Stock covered by the Stock Option on and
                after the fourth anniversary of the date of grant of the Stock
                Option and before expiration of the stated term of the Stock
                Option (or to such lesser extent as the Committee in its sole
                discretion shall determine at the time of grant or to such
                greater extent as the Committee in its sole discretion shall
                determine at or after the time of grant).

        (iii)   METHOD OF EXERCISE. Stock Options may be exercised by giving
                written notice of exercise delivered in person or by mail as
                required by the terms of any Stock Option Agreement at the
                Corporation's principal executive office, specifying the number
                of shares of Stock with respect to which the Stock Option is
                being exercised, accompanied by payment in full of the option
                price in cash or its equivalent as determined by the Committee
                in its sole discretion. If requested by the Committee, the
                Optionee shall deliver to the Corporation the Stock Option
                Agreement evidencing the Stock Option being exercised for
                notation thereon of such exercise and return thereafter of such
                agreement to the Optionee. As determined by the Committee in its
                sole discretion at or after the time of grant, payment of the
                option price in full or in part may also be made in the form of
                shares of unrestricted Stock already owned by the Optionee
                (based on the Fair Market Value of the Stock on the date the
                Stock Option is exercised). The Committee also may allow
                cashless exercise as permitted under Federal Reserve Board's
                Regulation T, subject to applicable securities law restrictions,
                or by any other means that the Committee determines to be
                consistent with this Plan's purpose and applicable law. An
                Optionee shall generally have the rights to dividends or other
                rights of a stockholder with respect to shares of Stock subject
                to the Stock Option when the Optionee has given written notice
                of exercise, has paid in full for such shares of Stock, and, if
                requested, has made representations described in Section 10(a)
                of this Plan.

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

        (i)     OPTION PRICE. The option price per share of Stock purchasable
                under a Stock Option shall be Fair Market Value at the time of
                grant, unless otherwise determined by the Committee in its sole
                discretion.

        (ii)    OPTION TERM. The term of each Stock Option shall be fixed by the
                Committee at the time of grant, but no Stock Option shall be
                exercisable more than ten years after the date such Stock Option
                is granted.

        (iii)  TRANSFERABILITY OF OPTIONS. Except as otherwise set forth in a
               Stock Option Agreement, no Stock Options shall be transferable by
               the Optionee otherwise than by will or by the laws of descent and
               distribution and all Stock Options shall be exercisable, during
               the Optionee's lifetime, only by the

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                Optionee, or in the case of Optionee=s legal incompetency, only
                by Optionee=s guardian or legal representative.

        (iv)    OPTION EXERCISE AFTER TERMINATION BY REASON OF DEATH OR
                DISABILITY. If an Optionee's employment with the Corporation,
                any Subsidiary or any Related Entity terminates by reason of
                death or Disability, any Stock Option held by such Optionee may
                thereafter be exercised for a period of one year (or such
                shorter period as the Committee in its sole discretion shall
                specify at or after the time of grant) from the date of such
                termination or until the expiration of the stated term of such
                Stock Option, whichever period is shorter, to the extent to
                which the Optionee would on the date of termination have been
                entitled to exercise the Stock Option (or to such greater or
                lesser extent as the Committee in its sole discretion shall
                determine at or after the time of grant).

        (v)     OPTION EXERCISE AFTER TERMINATION WITHOUT CAUSE OR CONSTRUCTIVE
                TERMINATION. If an Optionee's employment with the Corporation,
                any Subsidiary, or any Related Entity is terminated, by the
                Corporation or such Subsidiary or such Related Entity, without
                "Cause" (as such term is defined within the Stock Option
                Agreement) or in the event of "Constructive Termination" (as
                such term is defined within the Stock Option Agreement) of the
                Optionee's employment with the Corporation or such Subsidiary or
                such Related Entity is so terminated the Committee, in its sole
                discretion, may (a) permit the Optionee to exercise any Stock
                Option held by such Optionee, to the extent not theretofore
                exercised, in whole or in part with respect to all remaining
                shares covered by the Stock Option at any time prior to the
                expiration of the Stock Option (or such shorter period as the
                Committee in its sole discretion shall specify at or after the
                time of grant), or to such greater or lesser extent as the
                Committee in it sole discretion shall determine at or after the
                time of grant and/or (b) accelerate the vesting schedule of such
                Stock Option. An Optionee's acceptance of employment, at the
                request of the Corporation or a Subsidiary, with a Related
                Entity (or acceptance of employment, at the request of the
                Corporation or a Subsidiary, with any other Related Entity),
                shall not be deemed a termination of employment hereunder and
                any Stock Option held by an Optionee may be exercised thereafter
                to the extent that the Optionee would on the date of exercise
                have been entitled to exercise such Stock Option if such
                Optionee had continued to be employed by the Corporation or such
                Subsidiary (or such initial Related Entity), provided that the
                Optionee has been in continuous employ with the Related Entity
                to which such Optionee has moved from the date of acceptance of
                employment therewith until the date of exercise.

        (vi)    OPTION EXERCISE AFTER TERMINATION TO RESIGNATION. If an
                Optionee's employment with the Corporation, any Subsidiary, or
                any Related Entity terminates for any reason not set forth in
                Sections 5(iv) or (v) above, the Committee, in its sole
                discretion, may permit the Optionee to exercise any Stock Option
                held by such Optionee to the extent such Option was exercisable
                on the date of such termination (or to such greater or lesser
                extent as the Committee in its sole discretion shall determine
                at or after the time of grant) for such period as designated by
                the Committee.

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

SECTION 6. STOCK APPRECIATION RIGHTS.

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

        (i)     TIME OF GRANT. Related Stock Appreciation Rights may be granted
                either at or after the time of the grant of the Stock Option to
                which it is related. Freestanding Stock Appreciation Rights may
                be granted at any time.

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        (ii)    EXERCISABILITY. Related Stock Appreciation Rights shall be
                exercisable only at such time or times and to the extent that
                the Stock Options to which they relate shall be exercisable in
                accordance with the provisions of Section 5(a)(ii) of this Plan
                and Freestanding Stock Appreciation Rights shall be exercisable,
                subject to such terms and conditions as shall be determined by
                the Committee in its sole discretion at or after the time of
                grant, from time to time, to the extent that Stock Options are
                exercisable in accordance with the provisions of Section
                5(a)(ii) of this Plan.

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

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

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

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

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

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

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

SECTION 7.  RESTRICTED STOCK UNITS AND PERFORMANCE STOCK UNITS.

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(a)     GRANT. Awards of Restricted Stock Units or Performance Stock Units may
        be granted either alone or in addition to other Awards granted under
        this Plan. Each Restricted Stock Unit or Performance Stock Unit
        represents the right to receive, subject to the terms and provisions of
        this Plan and any agreements evidencing such Awards, one share of Stock.
        If the Committee in its sole discretion so determines at the time of
        grant, a Participant to whom a Restricted Stock Unit Award or
        Performance Stock Unit Award has been granted may be credited with an
        amount equivalent to all cash dividends ("Dividend Equivalents") that
        would have been paid to the holder of such Restricted Stock Unit Award
        or Performance Stock Unit Award if one share of Stock for every
        Restricted Stock Unit or Performance Stock Unit awarded had been issued
        to the holder on the date of grant of such Restricted Stock Unit Award
        or Performance Stock Unit Award. The Committee shall determine the terms
        and conditions of each Restricted Stock Unit Award and Performance Stock
        Unit, including without limitation, the number of Restricted Stock Units
        or Performance Stock Units to be covered by such Awards, the restricted
        period applicable to Restricted Stock Unit Awards and the performance
        objectives applicable to Performance Stock Unit Awards. The Committee in
        its sole discretion may prescribe terms and conditions applicable to the
        vesting of such Restricted Stock Unit Awards or Performance Stock Unit
        Awards in addition to those provided in this Plan. The Committee shall
        establish such rules and guidelines governing the crediting of Dividend
        Equivalents, including the timing, form of payment and payment
        contingencies of Dividend Equivalents, as it may deem desirable. The
        Committee in its sole discretion may at any time accelerate the time at
        which the restrictions on all or any part of a Restricted Stock Unit
        Award lapse or deem the performance objectives with respect to all or
        any part of a Performance Stock Unit Award to have been attained.
        Restricted Stock Units Awards and Performance Stock Unit Awards shall
        not be transferable otherwise than by will or by the laws of descent and
        distribution. Shares of Stock shall be deliverable upon the vesting of
        Restricted Stock Unit Awards and Performance Stock Unit Awards for no
        consideration other than services rendered or, in the Committee's sole
        discretion, the minimum amount of consideration other than services
        (such as the par value of Stock) required to be received by the
        Corporation in order to assure compliance with applicable state law,
        which amount shall not exceed 10% of the Fair Market Value of such
        shares of Stock on the date of issuance. Each such Award shall be
        evidenced by a Restricted Stock Unit agreement ("Restricted Stock Unit
        Award Agreement") or Performance Stock Unit Award agreement
        ("Performance Stock Unit Award Agreement").

(b)     TERMS AND CONDITIONS. Unless otherwise determined by the Committee in
        its sole discretion:

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

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

(c)     COMPLETION OF RESTRICTION PERIOD AND ATTAINMENT OF PERFORMANCE
        OBJECTIVES. To the extent that restrictions with respect to any
        Restricted Stock Unit Award lapse or performance objectives with respect
        to any Performance Stock Unit Award are attained and provided that other
        applicable terms and conditions have been satisfied:

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

        (ii)    any Dividend Equivalents credited in respect of such Restricted
                Stock Units or Performance Stock Units shall become vested to
                the extent that such Restricted Stock Units or Performance Stock
                Units

                                       7
<PAGE>   10

                shall have become vested and the Committee shall cause such
                Dividend Equivalents to be delivered to the Participant.

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

SECTION 8.  AMENDMENT AND TERMINATION.

The Board may amend, alter, or discontinue this Plan, but no amendment,
alteration, or discontinuation shall be made that would impair the rights of a
Participant under any Award theretofore granted without such Participant's
consent. The Committee may amend or alter the terms and conditions of any Award
theretofore granted, and of any agreement evidencing such Award, prospectively
or retroactively, but no such amendment or alteration shall impair the rights of
any Optionee under such Award or agreement without such Optionee's consent.

SECTION 9.  UNFUNDED STATUS OF PLAN.

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

SECTION 10.  GENERAL PROVISIONS.

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

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

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

(d)     Unless the Committee otherwise determines, each Participant shall, no
        later than the date as of which the value of an Award first becomes
        includable in the gross income of the Participant for federal income tax
        purposes, pay to the Corporation, or make arrangements satisfactory to
        the Committee regarding payment of, any federal, state or local taxes of
        any kind required by law to be withheld with respect to the Award. The
        obligations of the Corporation under this Plan shall be conditional on
        such payment or arrangements and the Corporation (and, where applicable,
        its Subsidiaries and its Related Entities) shall, to the extent
        permitted by law, have the right to deduct any such taxes from any
        payment of any kind otherwise due to the Participant. A Participant may
        elect to have such tax withholding obligation satisfied, in whole or in
        part, by (i) authorizing the Corporation to withhold from shares of
        Stock to be issued upon the exercise of a Stock Option or upon the
        vesting of any

                                       8
<PAGE>   11

        Restricted Stock Unit Award or the Performance Stock Unit Award a number
        of shares of Stock with an aggregate Fair Market Value that would
        satisfy the withholding amount due, or (ii) transferring to the
        Corporation shares of Stock owned by the Participant with an aggregate
        Fair Market Value that would satisfy the withholding amount due. With
        respect to any Participant who is an executive officer, the election to
        satisfy the tax withholding obligations relating to the exercise of a
        Stock Option or to the vesting of a Restricted Stock Unit Award or
        Performance Stock Unit Award in the manner permitted by this subsection
        (d) shall be made during the "window period" as described within the
        Corporation Insider Trading Policy unless otherwise determined in the
        sole discretion of the Committee of the Board.

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

(f)     The term "executive officer" as used in this Plan means any director or
        officer who is subject to the provisions of Section 16(b) of the
        Exchange Act.

(g)     Notwithstanding any other provision herein to the contrary, the maximum
        number of shares with respect to which Awards may be granted to the same
        Participant under this Plan may not exceed, in the aggregate, Three
        Hundred Thirty-three thousand (333,333) shares, except to the extent of
        adjustments authorized by Section 3 of this Plan.

SECTION 11. EFFECTIVE DATE OF PLAN.

This Plan, effective as of October 7, 1999, was subsequently amended as of
February 1, 2000.

SECTION 12. TERM OF PLAN.

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

                                       9<PAGE>   1

                                                                   EXHIBIT 10.43

                       NONQUALIFIED STOCK OPTION AGREEMENT

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

WHEREAS, the Board of Directors of the Corporation (the "Board") has approved
the Universal Electronics Inc. 1999A NonQualified Stock Plan (the "Plan"); and

WHEREAS, the Corporation desires to grant to the Optionee an option ("Option")
to purchase shares of the Corporation's common stock, par value $0.01 per share
(the "Stock"), upon the terms and conditions set forth in this Agreement;

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

1.      GRANT AND DESIGNATION OF OPTION. Upon the execution and delivery of this
        Agreement and the related Stock Option Certificate of even date herewith
        (the "Certificate"), the Corporation hereby grants to the Optionee the
        Option to purchase the aggregate number of shares of Stock set forth on
        the Certificate at the price per share ("Option Price") further set
        forth on the Certificate. The Option granted hereunder shall not be
        treated as an incentive stock option within the meaning of Section 422A
        of the Internal Revenue Code of 1986, as amended.

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

3.      METHOD OF EXERCISE. The Option may be exercised by written notice to the
        Corporation (the "Exercise Notice") at its offices at 6101 Gateway
        Drive, Cypress, California 90630 to the attention of the Secretary of
        the Corporation. The Exercise Notice shall state (i) the election to
        exercise the Option, (ii) the total number of full shares in respect to
        which it is being exercised, and (iii) shall be signed by the person or
        persons exercising the Option. The Exercise Notice shall be accompanied
        by the Certificate and a certified or cashier's check for the full
        amount of the purchase price of such shares, or as may be permitted by
        the Board, by certificates for shares of Stock which have been owned by
        the Optionee for more than six months prior to the date of exercise and
        which have a fair market value of the date of exercise equal to the
        purchase price, or by a combination of such methods of payment. Upon
        receipt of the foregoing, the Corporation shall issue the shares of
        Stock as to which the Option has been duly exercised and shall return
        the Certificate, duly endorsed to reflect such exercise, to the
        Optionee.

<PAGE>   2

4.      OPTIONEE'S REPRESENTATIONS.

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

        (b) Optionee acknowledges that Optionee is able to bear the economic
        risk of the investment in any and all shares of Stock acquired through
        the exercise of rights under the Option for an indefinite period of time
        because the Stock may not be registered under the 1933 Act and, if not,
        cannot be sold unless subsequently registered under the 1933 Act or an
        exemption from such registration is available.

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

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

        6. EFFECT OF TERMINATION OF EMPLOYMENT. Except as set forth in
        Paragraphs 7, 8 and 9 below, in the event that Optionee's employment
        with the Corporation ceases for any reason, Optionee may (or Optionee's
        estate or representative, in the event of Optionee's death during the
        applicable exercise period as set forth in this Paragraph 6), during the
        earlier of (i) the 180 day period following such cessation of employment
        or (ii) the remaining term of the Option Period, exercise the Option to
        the extent such Option was exercisable on the date such employment
        ceased and, on such date, that portion of the Option which was not
        exercisable shall automatically terminate without further action by the
        parties hereto and, in all events, to the extent not exercised, the
        Option shall terminate in its entirety at the end of business on the
        applicable exercise period as set forth in this Paragraph 6.

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

        (a) In the event that Optionee's employment with the Corporation is
        terminated by the Corporation without "Cause" (as such term is defined
        in subparagraph 7(b) below) or in the event of "Constructive
        Termination" (as such term is defined in subparagraph 7(c)

<PAGE>   3

        below), Optionee shall become immediately fully vested in the Option
        without further action by the parties hereto, and, to the extent not
        previously exercised, shall be exercisable in whole or in part with
        respect to all remaining shares of Stock covered by the Option and may
        be exercised by Optionee (or Optionee's estate or representative, in the
        event of Optionee's death) at any time prior to the expiration of the
        Option Period.

        (b) For purposes of this Agreement, "Cause" shall mean (i) the willful
        and continued failure by Optionee to substantially perform Optionee's
        duties with the Corporation (other than a failure resulting from
        Optionee's death or "Total Disability," as such term is defined in
        subparagraph 7(e) below) after a demand for substantial performance is
        delivered to Optionee by the Corporation which specifically identifies
        the manner in which it is believed that Optionee has not substantially
        performed Optionee's duties; (ii) the willful engaging by Optionee in
        gross misconduct materially and demonstrably injurious to the property
        or business of the Corporation; or (iii) Optionee's commission of fraud,
        misappropriation or a felony. For purposes of this definition of
        "Cause", no act or failure to act on Optionee's part will be considered
        "willful" unless done, or omitted to be done, by Optionee not in good
        faith and without reasonable belief that Optionee's action or omission
        was in the interests of the Corporation or not opposed to the interests
        of the Corporation.

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

        (d) For purposes of this Agreement, a "Change in Control" shall be
        deemed to occur when (i) any "person" or "group" (as such terms are used
        in Sections 3(a), 13(d) and 14(d) of the Securities Exchange Act of
        1934, as amended, and the rules and regulations promulgated thereunder
        (the "1934 Act")), other than (1) a trustee or other fiduciary holding
        securities under any employee benefit plan of the Corporation or (2) a
        corporation owned directly or indirectly by the stockholders of the
        Corporation in substantially the same proportions as their ownership of
        Stock in the Corporation immediately prior to any such occurrence, is or
        becomes the "beneficial owner" (as defined in Rule 13d-3 under the 1934
        Act), directly or indirectly, of securities of the Corporation
        representing 20% or more of the total voting power of the then
        outstanding securities of the Corporation entitled to vote generally in
        the election of directors (the "Voting Stock"); (ii) individuals who are
        members of the Board on the date of this Agreement and any individual
        who becomes a member of the Board hereafter whose nomination for
        election as a director was approved by the affirmative vote of a
        majority of such Directors, cease to constitute a majority of the
        members of the Board; (iii) there

<PAGE>   4

        occurs a merger or consolidation of the Corporation with any other
        corporation or entity, other than a merger or consolidation which would
        result in the Voting Stock of the Corporation immediately outstanding
        prior thereto continuing to represent (either by remaining outstanding
        or by being converted into voting securities of the surviving entity) at
        least 80% of the total voting power represented by the Voting Stock or
        the voting securities of such surviving entity outstanding immediately
        after such merger or consolidation; (iv) there occurs a sale or transfer
        or disposition of all or substantially all of the Corporation's assets
        to any other corporation or entity, other than a corporation owned
        directly or indirectly by the stockholders of the Corporation in
        substantially the same proportions as their ownership of Stock in the
        Corporation immediately prior to such sale, transfer or disposition; or
        (v) the dissolution or liquidation of the Corporation.

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

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

9.      EFFECT OF TERMINATION OF EMPLOYMENT FOR CAUSE. In the event that
        Optionee's employment with the Corporation is terminated by the
        Corporation for Cause, the Option, to the extent not then exercised (and
        whether or not then exercisable in whole or in part) shall automatically
        and immediately terminate in its entirety as of the date of such
        termination of employment, without further action by Optionee or the
        Corporation, and Optionee thereafter shall have no rights whatsoever
        with respect to the Option.

10.     RIGHT OF A STOCKHOLDER. Optionee shall not have any rights as a
        stockholder with respect to any shares of Stock unless and until
        legended certificates for such shares of such Stock are issued or unless
        the Optionee has been granted additional applicable rights under the
        Plan.

<PAGE>   5

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

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

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

14.     TRANSFERABILITY OF OPTION. The Option is not transferable by the
        Optionee other than (i) by will or by the laws of descent and
        distribution or (ii) by gift or domestic relations order to a family
        member of the Optionee (a "Permitted Transferee"), and is exercisable,
        during the Optionee's lifetime, only by a Permitted Transferee, the
        Optionee, or in the case of Optionee's legal incompetency, by Optionee's
        guardian or legal representative.

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

               The securities represented by this certificate were originally
               issued on _____________________, 19___, have not been registered
               under the Securities Act of 1933, as amended, or under the
               securities laws of any state or other jurisdiction (together, the
               "Securities Laws") and may not be offered for sale, sold or
               otherwise transferred or encumbered in the absence of compliance
               with such Securities Laws and until the issuer hereof shall have
               received from counsel acceptable to issuer a written opinion
               reasonably satisfactory to issuer that the proposed transaction
               will not violate any applicable Securities Laws.

<PAGE>   6

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

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

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

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

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

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

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

<PAGE>   7

        waiver by either party of any breach of this Agreement shall not operate
        as a waiver of any subsequent breach.

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

        OPTIONEE                            UNIVERSAL ELECTRONICS INC.

                                            By:
        -------------------------              ---------------------------------
        Signature                              Its:  Chairman and Chief
                                                     Executive Officer

        Print Name

<PAGE>   8

Certificate Number:  ____

                           UNIVERSAL ELECTRONICS INC.
                          1999A NONQUALIFIED STOCK PLAN
                            STOCK OPTION CERTIFICATE

THIS CERTIFIES THAT ____________has been awarded an OPTION to purchase ________
shares of common stock, par value $0.01 per share, of UNIVERSAL ELECTRONICS INC.
at a price per share of $____. This Certificate is issued in accordance with and
is subject to the terms and conditions of the related NonQualified Stock Option
Agreement of even date herewith (the "Agreement").

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

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

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

<TABLE>
<CAPTION>
On and After the Following                                Maximum Percentage Taking
Dates, But Prior to Expiration                            Into Account Prior Exercises
<S>                                                       <C>
        __/__/__                                                     25%

        __/__/__                                                     50%

        __/__/__                                                     75%

        __/__/__                                                    100%
</TABLE>

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

                                            UNIVERSAL ELECTRONICS INC.

                                            By:
                                               ---------------------------------

                                            Its:
                                                --------------------------------

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