Document:

Exhibit 10.10

 

 

SUPERIOR ESSEX INC.

AMENDED AND RESTATED EXECUTIVE
BONUS PLAN

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1 ESTABLISHMENT OF PLAN

  	
  1

  
	
  1.1

  	
  Background

  	
  1

  
	
  1.2

  	
  Purpose

  	
  1

  
	
  1.3

  	
  Effective Date

  	
  1

  
	
  ARTICLE 2 DEFINITIONS

  	
  2

  
	
  2.1

  	
  Definitions

  	
  2

  
	
  ARTICLE 3 ADMINISTRATION

  	
  4

  
	
  3.1

  	
  Committee

  	
  4

  
	
  3.2

  	
  Authority of Committee

  	
  4

  
	
  3.3

  	
  Decisions Binding

  	
  5

  
	
  ARTICLE 4 ELIGIBILITY

  	
  5

  
	
  4.1

  	
  Designation of Participants

  	
  5

  
	
  4.2

  	
  Partial Year Participation

  	
  5

  
	
  4.3

  	
  Demotions

  	
  5

  
	
  ARTICLE 5 OPERATION OF THE PLAN

  	
  6

  
	
  5.1

  	
  Plan Structure

  	
  6

  
	
  5.2

  	
  Establishment of Target Bonuses

  	
  6

  
	
  5.3

  	
  Other Corporate Financial Objectives

  	
  6

  
	
  5.4

  	
  Business Unit Financial Objectives

  	
  6

  
	
  5.5

  	
  Threshold Performance Goal and Individual Award Limits

  	
  7

  
	
  5.6

  	
  Adjustment to Financial Objectives

  	
  7

  
	
  5.7

  	
  Payout Form and Timing

  	
  8

  
	
  5.8

  	
  Terminations of Employment

  	
  8

  
	
  5.9

  	
  Recoupment Policy

  	
  8

  
	
  ARTICLE 6 AMENDMENT, MODIFICATION AND TERMINATION

  	
  8

  
	
  6.1

  	
  Amendment, Modification and Termination

  	
  8

  
	
  6.2

  	
  Termination After or During Plan Year

  	
  9

  
	
  ARTICLE 7 GENERAL PROVISIONS

  	
  9

  
	
  7.1

  	
  No Right to Participate

  	
  9

  
	
  7.2

  	
  No Right to Employment

  	
  9

  
	
  7.3

  	
  Withholding

  	
  9

  
	
  7.4

  	
  Funding

  	
  9

  
	
  7.5

  	
  Expenses

  	
  9

  
	
  7.6

  	
  Titles and Headings

  	
  9

  
	
  7.7

  	
  Gender and Number

  	
  9

  
	
  7.8

  	
  Governing Law

  	
  10

  
	
  7.9

  	
  Omnibus Plan Controls

  	
  10

  

 

II-i

 

SUPERIOR ESSEX INC.

AMENDED AND RESTATED EXECUTIVE BONUS PLAN

 

ARTICLE 1

ESTABLISHMENT OF PLAN

 

1.1                                 BACKGROUND.  This
Amended and Restated Executive Bonus Plan (the “Executive Bonus Plan” or the “Plan”)
is a subplan of the Superior Essex Inc. Amended and Restated 2005 Incentive
Plan (“Omnibus Plan”), consisting of a program for the grant of annual
Performance-Based Cash Awards under Article 9 of the Omnibus Plan.  This Plan has been established and approved,
and will be administered by, the Committee pursuant to the terms of the Omnibus
Plan, including without limitation, Article 14 thereof.  It is intended that the Performance Bonuses
earned under this Plan shall be Qualified Performance-Based Cash Awards with
respect to Participants who are Covered Employees, with the intent that the
Performance Bonuses will be fully deductible by the Company without regard to
the limitations of Code Section 162(m). 
The applicable Award limits of Section 5.4 of the Omnibus Plan
shall apply with respect to this Plan. 
As of the Effective Date, Section 5.4 of the Omnibus Plan provides
that the aggregate dollar value of any Performance-Based Cash Award or other
cash-based award that may be paid to any one Participant during any one
calendar year under the Omnibus Plan is $3,000,000.

 

1.2.                              PURPOSE.  The purpose of this Plan is to provide for
the payment of a cash bonus to eligible executives of the Company, the payment
of which will be based on the achievement of Performance Objectives during a
Plan Year.  Business Unit and Corporate Financial
Objectives are designed to focus on overall Corporate or Business Unit
financial results that drive shareholder value. 
Unless otherwise specified by the Committee, the Performance Objectives
include Corporate Financial Objectives, Business Unit Financial Objectives (for
Business Unit executives) and the Threshold Earnings Performance.

 

1.3.                              EFFECTIVE DATE.  This Plan was originally
adopted in principle by the Committee on February 23, 2005, subject to
approval as to form by the Chair of the Committee and to approval by the
stockholders of the Omnibus Plan.  This
Plan became effective on May 3, 2005, the date the Omnibus Plan was
approved by the Company’s stockholders (the “Effective Date”).  This Plan was amended and restated by the
Committee on March 29, 2006, to be effective as of the beginning of Plan
Year 2006, on February 15, 2007 to be effective as of the beginning of
Plan Year 2007, and on March 19, 2008 to be effective as of the beginning
of Plan Year 2008.

 

1

 

ARTICLE 2

DEFINITIONS

 

2.1.          DEFINITIONS.  Capitalized terms used herein and not
otherwise defined shall have the meanings assigned to such terms in the Omnibus
Plan.  In addition, the following terms
shall have the following meanings for purposes of this Plan, unless the context
in which they are used clearly indicates that some other meaning is intended.

 

Adjusted
Business Unit Operating Income.  A non-GAAP financial measure for a Business
Unit for a given year, which is Adjusted EBITDA of such Business Unit as
reflected in the Company’s year-end earnings release, decreased by depreciation
and amortization.  Adjusted Business Unit
Operating Income does not reflect the internal allocation of management fees
among the consolidated group.

 

Adjusted
EBITDA.  A non-GAAP financial measure
for the Company or a Business Unit for a given year, as reflected in the
Company’s year-end earnings release, or if Adjusted EBITDA is no longer
reported, EBITDA.  Adjusted EBITDA is
generally operating income, increased by other income (exclusive of interest
income) and reduced by other expense and further adjusted as follows, without
duplication and only to the extent such item is included as a component of
operating income:

 

	
  (1)

  	
   

  	
  increased
  by depreciation and amortization,

  
	
  (2)

  	
   

  	
  increased
  or reduced to eliminate the effects of extraordinary items, within the
  meaning of GAAP,

  
	
  (3)

  	
   

  	
  increased
  or reduced to eliminate the effects of accounting changes implemented during
  the Plan Year,

  
	
  (4)

  	
   

  	
  increased
  or reduced to eliminate the impact of discontinued operations,

  
	
  (5)

  	
   

  	
  increased
  or reduced by other charges that are considered to be non-recurring or
  special items, and

  
	
  (6)

  	
   

  	
  increased
  or reduced by non-cash gains, losses, income or expenses, such as non-cash
  compensation expense.

  

 

Adjusted
EPS.  A non-GAAP financial measure
for the Company for a given year, as reflected in the Company’s year-end
earnings release, or if Adjusted EPS is no longer reported, EPS.  Adjusted EPS is generally earnings per
diluted share of the Company  excluding the
after-tax impact of special items detailed in the earnings release, without
duplication.  Notwithstanding the
foregoing, in the event the Company shall issue new shares during a Plan Year,
all newly issued shares in such Plan Year shall be disregarded in calculating
Adjusted EPS for that Plan Year for purposes of this Plan; provided, however,
that the Committee may choose not to disregard some or all of such newly issued
shares in the calculation of Adjusted EPS if the effect of including such newly
issued shares would be to 

 

2

 

decrease
the amount of Performance Bonuses that otherwise would be payable under this
Plan for such Plan Year.

 

Business
Unit.  The principal business segments
of the Company during any Plan Year. 
Unless otherwise specified by the Committee, the Business Units are (i) Communications,
(ii) Essex North America, (iii) Essex Asia Pacific, and (iv) Essex
Europe.

 

Business
Unit Financial Objectives.  The
Business Unit Financial Objectives established by the Committee for a Plan
Year, as provided in Article 5.

 

Consolidated
Adjusted EBITDA.  For any
Plan Year, Adjusted EBITDA for the Company as a whole.

 

Consolidated
EBITDA.  The Company’s consolidated
earnings before interest, taxes, depreciation and amortization for a given
year, as reflected in the Company’s year-end earnings release.

 

Corporate
Financial Objectives.  The
Corporate Financial Objectives established by the Committee for a Plan Year, as
provided in Article 5.

 

EPS.  Earnings per share of the Company, as
reflected in the Company’s year-end earnings release.

 

Executive
Bonus Plan or Plan.  The
Superior Essex Inc. Amended and Restated Executive Bonus Plan as set forth in
this document together with any subsequent amendments hereto.

 

GAAP.  Generally accepted accounting principles for
U.S. companies.

 

Individual
Award Limit.  Has the
meaning described in Section 5.5.

 

Performance
Bonus.  The bonus payable to a
Participant under this Plan calculated by reference to the achievement of
applicable Performance Objectives, as determined in accordance with Article 5.

 

Performance
Objectives. 
Collectively with respect to a Participant, the Threshold Earnings
Performance and any other Corporate Financial Objectives and Business Unit
Financial Objectives (if applicable to the Participant), as provided in Article 5.

 

Plan
Year.  January 1 to December 31
of each year.

 

Schedule.  Means a document setting forth Corporate
Financial Objectives and/or Business Unit Financial Objectives relevant to a
Participant or Group of 

 

3

 

Participants,
and the relative weightings of such measures and such other information as the
Committee determines is appropriate.

 

Target
Bonus.  Has the meaning described in Section 5.2.

 

Threshold
Earnings Performance.  Has the
meaning given such term in Section 5.5.

 

Triggering
Acquisition.  An
acquisition (or combination of acquisitions) in which the acquired entity’s
EBITDA (on a proforma basis) for the four quarters completed immediately prior
to consummation of the acquisition is equal to one percent (1%) or more of the
Adjusted EBITDA for the Company (on a consolidated basis) for the same period.

 

Triggering
Disposition.  The
disposition of businesses, product lines or interests that, individually or in
the aggregate, represent one percent (1%) or more of the Company’s target
Adjusted EBITDA (on a consolidated basis) for the four fiscal quarters
completed immediately prior to the consummation of the disposition.

 

ARTICLE 3

ADMINISTRATION

 

3.1.          COMMITTEE.  This Plan shall be administered by the
Committee.

 

3.2.          AUTHORITY OF
COMMITTEE.  Without
limiting its authority under Article 4 of the Omnibus Plan, the Committee
has the exclusive power, authority and discretion to:

 

(a)  Designate Participants for each
Plan Year;

 

(b)  Establish and review Performance
Objectives and weightings for different Performance Objectives for each Plan
Year;

 

(c)  Establish Target Bonuses for Participants for each Plan Year;

 

(d)  Determine whether and to what extent Performance Objectives
were achieved for each Plan Year;

 

(e)  Increase (subject to the Individual Award Limit) or decrease
the Performance Bonus otherwise payable to any Participant resulting from the
achievement of financial Performance Objectives in any Plan Year, based on such
subjective factors as the Committee shall deem relevant, in accordance with the
parameters, if any, set forth in the relevant Schedule (for example, a Schedule
permits such reduction by up to X%);

 

4

 

(f)  Increase the Performance Objectives or decrease the
Performance Bonus otherwise payable to any Participant resulting from the
achievement of financial Performance Objectives in any Plan Year, if the
Committee determines that the Performance Objectives would result in payouts
that would be disproportionate to the Company’s performance or other
extraordinary circumstances merit a reduction in the amounts earned;

 

(g)  Establish, adopt or revise any rules and regulations as
it may deem necessary or advisable to administer this Plan;

 

(h)  Make all other decisions and determinations that may be
required under this Plan or as the Committee deems necessary or advisable to
administer this Plan; and

 

(i)  Amend this Plan as provided herein.

 

3.3.          DECISIONS
BINDING.  The Committee’s interpretation
of this Plan and all decisions and determinations by the Committee with respect
to this Plan are final, binding, and conclusive on all parties.

 

ARTICLE 4

ELIGIBILITY

 

4.1.          DESIGNATION OF
PARTICIPANTS.  Exhibit A
hereto lists the Executives who are designated as Participants in this
Plan.  The Committee, in its discretion,
may determine whether other positions may qualify for participation in all or
any portion of this Plan for any subsequent Plan Year or change Target Bonuses
of existing Participants, subject to the terms of any Employment Agreement with
the Participant.  Before March 31 of
each Plan Year, the Committee shall approve and substitute a new Exhibit A
indicating the Participants and their Target Bonuses for that Plan Year.  The Committee will notify or cause
Participants to be notified of their eligibility to participate, and the terms
thereof, in writing.

 

4.2.          PARTIAL YEAR
PARTICIPATION.  If a Participant
begins employment or is promoted to an eligible position after the beginning of
a Plan Year, the Committee, in its discretion, may determine whether such
employee may participate in this Plan and if so, the terms of such
participation, which will be pro rated based on the number of days such person
participated in this Plan during the Plan Year, unless the Committee determines
otherwise.  If a Participant takes a
leave of absence during the Plan Year for any reason the Participant will
receive a pro rata share of a Performance Bonus, if any, for such Plan Year,
unless the Committee decides otherwise.

 

4.3.          DEMOTIONS.  If a Participant is demoted during the Plan
Year, the Committee will determine whether Plan participation ends at that
time, or is continued, perhaps at a reduced level.  If participation ends, any Performance Bonus
earned during the time of participation will be prorated for the Plan Year.

 

5

 

ARTICLE 5

OPERATION OF THE PLAN

 

5.1.                              PLAN STRUCTURE.  Each Participant shall be eligible to receive
a Performance Bonus for the Plan Year if the Company meets or exceeds certain
Performance Objectives set by the Committee. 
It is anticipated that the Committee shall establish or approve
Performance Objectives and their respective weightings, and Target Bonuses as
provided in Sections 5.2, 5.3 and 5.4. 
In establishing Performance Objectives, the Committee may take into
account such factors as it deems appropriate, including, without limitation, prior
year results, planned business results, anticipated business trends,
performance relative to peer companies and macroeconomic conditions.  Those Performance Objectives shall provide
the framework for the Committee in determining the appropriate amount of
incentive awards to payout in each Plan Year. 
However, this Plan is designed to provide the Committee discretion to
make pay-outs that differ from those that would result from the application of
the Sections 5.2, 5.3 and 5.4, if circumstances warrant, so long as, at a
minimum, the requirements of Section 5.5 are met.  Such circumstances could include, for example
and without limitation, events that are not anticipated at the time the
Performance Objectives are established or extenuating circumstances or
extraordinary performance that is not recognized through the Performance
Objectives.

 

5.2.                              ESTABLISHMENT
OF TARGET BONUSES.  The
Committee plans to establish Performance Objectives (in addition to the
Threshold Earnings Performance) and Target Bonuses (other than the Individual
Award Limit) for each Plan Year, by approving in writing the percentage of each
Participant’s base salary that will be awarded to the Participant for that Plan
Year if the Threshold Performance Goal is achieved and if the other established
Performance Objectives are achieved at the target level (the “Target Bonus”).  Each Participant’s Target Bonus percentage
will be communicated in writing to the Participant unless such target is
specified in his or her Employment Agreement with the Company.  The actual Performance Bonus to a Participant
may be greater or less than his or her Target Bonus, depending on the level of
achievement of Performance Objectives, as provided in the relevant Schedule,
and depending on whether the Committee exercises its discretion to increase or
reduce a resulting Performance Bonus as provided herein or in the relevant
Schedule.

 

5.3.                              CORPORATE
FINANCIAL OBJECTIVES.  Before March 31
of each Plan Year, it is anticipated that the Committee will approve Corporate
Financial Objectives for each Plan Year for corporate-level Participants in
addition to Threshold Earnings Performance, and shall set forth such Corporate
Financial Objectives in one or more Schedules. 
The Schedule shall provide the formula that the Committee will use as a
guide for determining a Participant’s Performance Bonus.

 

5.4.                              BUSINESS UNIT
FINANCIAL OBJECTIVES.  Before March 31
of each Plan Year, it is anticipated that the Committee will approve Corporate
Financial Objectives in addition to Threshold Earnings Performance and/or
Business Unit Financial 

 

6

 

Objectives for the Plan Year for Business
Unit Participants, and shall set forth such Corporate Financial Objectives and
Business Unit Financial Objectives in one or more Schedules.  The Schedule shall provide the formula that
the Committee will use as a guide in exercising its negative discretion for
determining a Business Unit Participant’s Performance Bonus.

 

5.5                                 THRESHOLD
PERFORMANCE GOAL AND INDIVIDUAL AWARD LIMITS.  Pursuant to Article 14
of the Omnibus Plan, by adopting this amended and restated Executive Bonus Plan
on March 19, 2008 to be effective as of the beginning of Plan Year 2008,
the Committee has established for each Plan Year beginning with Plan Year 2008
a threshold performance goal under the Plan based on “earnings,” which is one
of the Qualified Business Criteria approved by the shareholders under Section 14.2
of the Omnibus Plan.  Specifically, the
threshold performance goal under the Plan for each such Plan Year is that the
Company achieve positive Consolidated EBITDA for such fiscal year (the “Threshold
Earnings Performance”).  Subject to Section 14.3
of the Omnibus Plan in the case of the death or Disability of a Participant or
the occurrence of a Change in Control, no incentive awards shall be payable
under the Plan for any Plan Year unless the Threshold Earnings Performance has
been achieved.

 

In any Plan Year in
which the Threshold Earnings Performance is achieved, the Performance Bonus
payable to each Participant under the Plan for such Plan Year shall be the
lesser of (i) $3,000,000, (ii) 2.0% of Consolidated EBITDA for the
Chief Executive Officer, or (iii) 1.0% of Consolidated EBITDA for other
Participants (the “Individual Award Limit”), subject in each case to the
Committee’s discretion to award any Participant less than such amount based on
the level of actual performance compared to Corporate Financial Objectives
and/or Business Unit Financial Objectives and such other Performance Objectives
or any other criteria determined by the Committee.  As described herein, it is anticipated that
the Committee will exercise such negative discretion such that the Performance
Bonus paid to a Participant for a Plan Year would represent the amount that
would be payable pursuant to the applicable Corporate Financial Objectives
and/or Business Unit Financial Objectives.

 

In no event shall the
sum of the Individual Award Limits for all Participants in a given Plan Year
exceed 10% of Consolidated EBITDA for such Plan Year.

 

5.6.                              ADJUSTMENT TO
FINANCIAL OBJECTIVES.  If
prior to the end of a Plan Year the Company engages in a Triggering Disposition
or a Triggering Acquisition, in each case a “Re-Set Event,” the Corporate
Financial Objectives (other than Threshold Earnings Performance) and Business
Unit Financial Objectives for the Plan Year may be adjusted, effective as of
the date of the Re-Set Event, (x) to reflect any Triggering Disposition by
eliminating from the original Corporate and/or Business Unit Financial
Objectives, as applicable, the plan business results relating to the disposed
business for the remainder of the Plan Year, and (y) to reflect any
Triggering Acquisition, by establishing supplemental Corporate Financial
Objectives and/or Business Unit Financial Objectives, as the Committee deems
appropriate, with respect to the acquired business, which may be zero.  Notwithstanding the foregoing, the Committee
may choose not to 

 

7

 

make one or more such adjustments.  Nothing in this Section 5.6 will be
construed to authorize the Committee to take actions under this Section 5.6
that would preclude the Performance Bonuses from qualifying for the Section 162(m) Exemption
(as defined in the Omnibus Plan).

 

5.7.                              PAYOUT FORM AND
TIMING.  Performance Bonuses will be
paid within thirty (30) days after the Committee determines whether and to what
extent Performance Objectives were achieved, but no later than March 15
next following the end of the Plan Year for which the Performance Bonuses, if
any, were earned.

 

5.8.                              TERMINATION OF
EMPLOYMENT.  In the
event of the termination of a Participant’s employment prior to the end of the
Plan Year by reason of the Participant’s death, Disability, Retirement, termination
by the Company without Cause, or resignation by the Participant for Good
Reason, the Participant will be paid a Performance Bonus equal to the pro rata
portion (based on the number of day worked during the Plan Year) of the
Performance Bonus, if any, that would otherwise be payable if the Participant
had continued employment through the end of the Plan Year, based on actual
performance.  For example, no Performance
Bonus shall be paid if the Threshold Earnings Performance is not achieved.  If the Threshold Earnings Performance is
achieved, then his or her Performance Bonus shall be based on the applicable
performance matrix.  Any such Performance
Bonus shall be paid at the normal time for payment of Performance Bonuses
hereunder.  Any amounts paid on behalf of
a deceased Participant will be paid to the Participant’s Beneficiary.  For terminations after the end of the Plan
Year, but before payout from this Plan, payout will be made as though the
termination had not occurred.

 

5.9.                              RECOUPMENT POLICY.  Performance
Bonuses earned hereunder by executive officers with respect to Plan Years 2008
or later are subject to recoupment pursuant to the terms of that certain
Incentive Compensation Recoupment Policy adopted by the Committee on March 6,
2008, or any replacement policy or policies adopted by the Board or
the Committee setting forth standards for seeking the return (recoupment) from
executive officers of incentive payments if such payments were inflated due to
financial results that are later restated; provided that any such replacement
policy that would have a material adverse affect on a Participant shall only be
effective prospectively.

 

ARTICLE 6

AMENDMENT, MODIFICATION AND
TERMINATION

 

6.1.                              AMENDMENT,
MODIFICATION AND TERMINATION.  The Committee may, at any time and from time
to time, amend, modify or terminate this Plan. 
The Committee may condition any amendment or modification on the
approval of shareholders of the Company if such approval is necessary or deemed
advisable with respect to tax, securities or other applicable laws, policies or
regulations, including without limitation Code Section 162(m).

 

8

 

6.2.          TERMINATION
AFTER OR DURING PLAN YEAR. 
Termination of this Plan after a Plan Year but before Performance
Bonuses are paid for that Plan Year will not reduce Participants’ rights to
receive Performance Bonuses for the Plan Year. 
Termination or amendment of this Plan during a Plan Year may be
retroactive to the beginning of the Plan Year, at the discretion of the
Committee.  If a Change in Control
occurs, no amendment or termination may adversely affect amounts payable to a
Participant without the consent of the Participant.

 

ARTICLE 7

GENERAL PROVISIONS

 

7.1.          NO RIGHT TO
PARTICIPATE.  No officer
or employee shall have any right to be selected to participate in this Plan.

 

7.2.          NO RIGHT TO
EMPLOYMENT.  Nothing in
this Plan shall interfere with or limit in any way the right of the Company or
any Subsidiary to terminate any Participant’s employment at any time, nor
confer upon any Participant any right to continue in the employ of the Company
or any Subsidiary.

 

7.3.          WITHHOLDING.  The Company or any Subsidiary shall have the
authority and the right to deduct or withhold, or require a Participant to remit
to the Company, an amount sufficient to satisfy federal, state, and local taxes
(including the Participant’s FICA obligation) required by law to be withheld
with respect to any taxable event arising as a result of this Plan.

 

7.4.          FUNDING.  Benefits payable under this Plan to a Participant or to a Beneficiary will be paid by the Company from its general assets.  The Company is not required to segregate on its books or otherwise establish any funding procedure for any amount to be used for the payment of benefits under this Plan.  The Company may, however, in its sole discretion, set funds aside in investments to meet its anticipated obligations under this Plan.  Any such action or set-aside may not be deemed to create a trust of any kind between the Company and any Participant or beneficiary or to constitute the funding of any Plan benefits.  Consequently, any person entitled to a payment under this Plan will have no rights greater than the rights of any other unsecured creditor of the Company.
 

7.5.          EXPENSES.  The expenses of administering this Plan shall
be borne by the Company and its Subsidiaries.

 

7.6.          TITLES AND
HEADINGS.  The titles
and headings of the Sections in this Plan are for convenience of reference
only, and in the event of any conflict, the text of this Plan, rather than such
titles or headings, shall control.

 

7.7.          GENDER AND
NUMBER.  Except where otherwise
indicated by the context, any masculine term used herein also shall include the
feminine; the plural shall include the singular and the singular shall include
the plural.

 

9

 

7.8.                              GOVERNING LAW.  To the extent not governed by federal law,
this Plan shall be construed in accordance with and governed by the laws of the
State of Delaware.

 

7.9                                 OMNIBUS PLAN
CONTROLS.  This Plan
is adopted pursuant to and shall be governed by and construed in accordance
with the Omnibus Plan.  In the event of
any actual or alleged conflict between the provisions of the Omnibus Plan and
the provisions of this Plan, the provisions of the Omnibus Plan shall be
controlling and determinative.

 

The foregoing is hereby
acknowledged as being the Superior Essex Inc. Amended and Restated Executive
Bonus Plan as adopted by the Committee on March 19, 2008, to be effective
as of January 1, 2008.

 

 

	
   

  	
  SUPERIOR ESSEX INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Barbara
  L. Blackford

  
	
   

  	
  Executive
  Vice President,

  
	
   

  	
  General
  Counsel and Corporate Secretary

  

 

10

 

EXHIBIT A

 

PARTICIPANTS AND TARGET BONUS PERCENTAGES EFFECTIVE
JANUARY 1, 2008

UNDER THE AMENDED AND RESTATED EXECUTIVE BONUS PLAN

 

	
  Name

  	
   

  	
  % of Base Salary Payable at

  Target Achievement of

  Performance Objectives*

  
	
   

  	
   

  	
   

  
	
  Corporate

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Stephen M. Carter, CEO

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  
	
  David S. Aldridge, CFO

  	
   

  	
  70%

  
	
   

  	
   

  	
   

  
	
  Barbara L. Blackford, EVP,

  General Counsel and Secretary

  	
   

  	
  60%

  
	
   

  	
   

  	
   

  
	
  Other Participants

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Business Units

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Justin F. Deedy, Jr., EVP and

  President, Communications Group

  	
   

  	
  60%

  
	
   

  	
   

  	
   

  
	
  H. Patrick Jack, EVP and President,

  Essex Asia Pacific

  	
   

  	
  60%

  
	
   

  	
   

  	
   

  
	
  J. David Reed, EVP and

  President, Essex North America

  	
   

  	
  60%

  
	
   

  	
   

  	
   

  
	
  Other Participants

  	
   

  	
   

  

 

*Subject to the achievement of Threshold
Earnings Performance

 

A-1Exhibit 10.2

 

VIRGINIA COMMERCE BANCORP, INC.

AMENDED AND RESTATED

EMPLOYEE STOCK PURCHASE PLAN

 

1.             Purpose

 

This
Employee Stock Purchase Plan (the “Plan”) is intended to provide the employees
of Virginia Commerce Bancorp, Inc. (the “Company”), and its subsidiaries
with an opportunity to acquire a current proprietary interest in the Company,
through the purchase of common stock of the Company upon the exercise of short
term options, so as to provide the employees with an additional incentive to
advance the interests of the Company and its subsidiaries. It is intended that
options issued pursuant to this Plan shall constitute options issued pursuant
to an “employee stock purchase plan” within the meaning of §423 of the Internal
Revenue Code of 1986, as amended (the “Code”). The Plan shall be administered,
interpreted and construed so as to extend and limit participation in a manner
consistent with §423 of the Code. Participation in the Plan is entirely
voluntary, and the Company makes no recommendations to employees as to whether
they should or should not participate in the Plan.

 

2.             Administration

 

The
Plan shall be administered by a committee (the “Committee”) appointed by the
Board of Directors (the “Board”) of the Company.  The Committee shall consist of not less than
three members of the Company’s Board of Directors.  The Board of Directors may from time to time
remove members from, or add members to, the Committee.  Vacancies on the Committee, however caused,
shall be filled by the Board of Directors. 
The Committee shall select one of its members as Chairman, and shall
hold meetings at such time and places as it may determine.  At all meetings of the Committee, a majority
of the Committee members then in office shall constitute a quorum for the
transaction of business, and the act of a majority of the Committee members
present at any meeting in which there is a quorum shall be the act of the
Committee.  Any action required or
permitted to be taken by the Committee may be taken without a meeting if the
action is taken by all members of the Committee.  The action shall be evidenced by one or more
written consents stating the action taken, signed by each Committee member
either before or after the action is taken, and included in the minutes or
filed with the corporate records reflecting the action taken. In the absence at
any time of a duly appointed Committee, the Plan shall be administered by the
Personnel and Compensation Committee of the Board, or in the absence thereof,
by the Board.

 

In
order to effectuate the purposes of the Plan, the Committee shall have the
discretionary authority to construe and interpret the Plan, to supply any
omissions therein, to reconcile and correct any errors or inconsistencies, to
decide any questions in the administration and application of the Plan, and to
make equitable adjustments for any mistakes or errors made in the
administration of the Plan, and all such actions or determinations made by the
Committee, and the application of rules and regulations to a particular
case or issue by the Committee, in good faith, shall not be subject to review
by anyone, but shall be final, binding and conclusive on all persons ever
interested hereunder.  No member of the
Board of Directors or the Committee shall be liable for any action or determination
made in good faith with respect to the Plan or any option granted under it.

 

3.             Eligibility

 

Any
employee of the Company or any employee of a subsidiary of the Company (for
purposes of this Plan the term “subsidiary” has the same definition as it has
under §425(f) of the Code) who is in the employment of the Company or a
subsidiary of the Company on the date on which such option is granted, is
eligible to participate in the Plan, except any employee:

 

(i) who
at the date of grant has been employed by the Company or subsidiary for less
than six months;

(ii) whose
customary employment with the Company or subsidiary as of the date of grant is
20 hours or less per week;

(iii) whose
customary employment with the Company or subsidiary is for not more than five
months in any calendar year;

 

 

(iv) who
immediately after the grant of an option under this Plan to the employee would
(in accordance with the provisions of §§423 and 424(d) of the Code) own
stock possessing 5% or more of the total combined voting power or value of all
classes of stock of the Company or of its “Parent Corporations” or “Subsidiary
Corporations,” as defined in §424 of the Code; or

(v) who
are “highly compensated employees” within the meaning of §414(q) of the
Code.

 

4.             Stock Subject to the Plan

 

Subject to adjustment in accordance with this Section 4,
the aggregate number of shares deliverable upon the exercise of options
pursuant to the Plan shall be 355,929  shares.  Shares subject to issuance hereunder may
either be authorized but unissued shares, shares held in treasury, or
reacquired shares.  If any option should
expire, become unexercisable or be forfeited for any reason without having been
exercised, the shares which were subject to such option shall be available for
the grant of additional options under the Plan, unless the Plan shall have been
terminated.

 

The
number and kind of shares reserved for issuance under this Plan, and the number
and kind of shares subject to outstanding options and the exercise price
thereof, shall be proportionately adjusted for any increase, decrease, change
or exchange of shares for a different number or kind of shares or other
securities of the Company which results from a merger, consolidation,
recapitalization, reorganization, reclassification, stock dividend, split-up,
combination of shares, or similar event in which the number or kind of shares
is changed without the receipt or payment of consideration by the Company.  The issuance by the Company or an affiliate
of shares of stock of any class, or of securities convertible into shares or
stock of another class, for cash or property or for labor or services either
upon direct sale or upon the exercise of rights or warrants to subscribe
therefore, shall not affect, and no adjustment shall be made with respect to,
the number, class, or exercise price of shares then subject to options or
reserved for issuance under this plan. 
If, by reason of any adjustment made pursuant to this paragraph, an
optionee becomes entitled to new, additional, or different shares of stock or
securities, such new, additional, or different shares of stock or securities
shall thereupon be subject to all of the conditions and restrictions which were
applicable to the shares pursuant to the option before the adjustment was made.  No adjustment shall be made that causes the
option to fail to continue to qualify as an option issued pursuant to an “employee
stock plan” within the meaning of Section 423 of the Code.

 

5.   Grant of Options.

 

(a) The
Committee may authorize the grant to all, but not less than all, eligible
employees (as set forth in Section 3) as of the date of grant, of an
option to purchase the number of whole shares having a fair market value as of
the date of grant equal to a whole percentage, determined by the Committee, of
such eligible employee’s Total Compensation for the immediately preceding
calendar year, provided, however, that:

 

(i) such
percentage in any one calendar year shall not in the aggregate exceed 10% of
Total Compensation and shall be the same for all eligible employees;

(ii) no
option shall permit the rights of an optionee to purchase stock under all “employee
stock purchase plans” of the Company and its parent corporation and subsidiary
corporations to accrue at a rate which exceeds $25,000 of fair market value of
such stock (determined at the time the option is granted) for each calendar
year in which the option is outstanding at any time; and

(iii) no
person shall be eligible to receive an option to purchase, or shall be entitle
to purchase, a fractional share of Common Stock.

 

For
purposes hereof, “Total Compensation” means gross compensation from the Company
or any subsidiary for the relevant period, including overtime pay, bonuses, and
commissions, but excluding severance pay, expense allowances or reimbursements,
moving expenses and income from the exercise of nonqualified stock options, the
disposition of incentive stock options or shares purchased under any employee
stock purchase plan, from restricted stock or stock option awards, excess group
life insurance premiums or other extraordinary items of compensation. For these
purposes, gross compensation includes any amount that would be included in
taxable income but for the fact that it was contributed to a qualified plan
pursuant to an elective deferral under §401(k) of the Code or contributed
under a salary reduction agreement pursuant to §125 of the Code.

 

 

For
purposes hereof, (i) the right to purchase stock under an option accrues
when the option (or any portion thereof) first becomes exercisable during the
calendar year, (ii) the right to purchase stock under an option accrues at
the rate provided in the option, but in no case may such rate exceed $25,000 of
fair market value of such stock (determined at the time such option is granted)
for any one calendar year, and (iii) a right to purchase stock which has
accrued under one option granted pursuant to the Plan may not be carried over
to any other option.

 

(b) 
The exercise price of such options shall be the same for all eligible employees
and shall be determined by the Committee at the time of grant. The exercise
price shall be equal to at least 85 percent of the lesser of:

 

(i) the
fair market value of the shares of common stock of the Company on the date of
the grant of the option, or

(ii) the
fair market value of the shares of common stock of the Company on the date of
exercise of the option.

 

For purposes of this
Plan, “fair market value” means, with respect to a share of Common Stock, if the Common Stock is listed on a national securities
exchange (including the NASDAQ National Market) on the date in question, then
the fair market value shall be not less than the average of the highest and
lowest selling price on such exchange on such date, or if there were no sales
on such date, then the fair market value shall be not less than the mean
between the bid and asked prices on such date. If the Common Stock is traded
otherwise than on a national securities exchange on the date in question, then
the fair market value shall be not less than the mean between the bid and asked
price on such date, or, if there is no bid and asked price on such date, then
on the next prior day on which there was a bid and asked price.  If no such bid and asked price is available,
then the fair market value shall be its fair market value as determined by the
Committee, in good faith, in its sole and absolute discretion.

 

(c) 
All options subject to a grant shall be immediately exercisable.

 

6.   Option Agreements and Other Terms and
Conditions

 

(a) 
Agreements.  Stock options granted pursuant to the Plan
shall be evidenced by agreements in such form as the Committee shall from time
to time recommend and the Board of Directors shall from time to time approve. Each such Agreement shall constitute a binding
contract between the Company and the participant, and every participant, upon
acceptance of such Agreement, shall be bound by the terms and restrictions of
the Plan and of such Agreement.  The
Chairman of the Committee and such other officers as shall be designated by the
Committee are hereby authorized to execute Agreements on behalf of the Company
and to cause them to be delivered to the recipients of options.

 

The terms of each such Agreement shall be in accordance
with the Plan, but each Agreement may include such additional provisions and
restrictions determined by the Committee, in its discretion, provided that such
additional provisions and restrictions are not inconsistent with the terms of
the Plan.  In particular, the Committee
shall set forth in each Agreement, provided that all employees granted such options
shall have the same rights and privileges, and except as otherwise expressly
required hereby or by the Code:

 

·      the exercise price of an
option, including a statement of the percentage of fair market value
represented by such exercise price;

·      the number of shares subject
to, and the expiration date of, the option; and

·      the restrictions, if any, to
be placed upon such Option, or upon shares which may be issued upon exercise of
such Option.

 

(b) 
Term of Option.  Unless an earlier date is set forth in
the agreement reflecting an option, an option must be exercised not later than
the close of business on the last business day of the calendar year in which
the option is granted.

 

 

(c) Termination
of Employment

 

(i)  For Reasons Other Than Death.  In the event that an optionee’s employment with the
Company or any or a subsidiary of the Company shall terminate for any reason
other than optionee’s death, then the right of such optionee to exercise such
option shall immediately terminate upon such termination of service.  Employment shall not be considered terminated in the case of sick leave, military leave or
any other leave of absence approved by the Company or in the case of transfers
between payroll locations of the Company or any subsidiary of the Company, or
between the Company, an affiliate or subsidiary, or a successor.

 

(ii)  Death of Optionee. In the event that an optionee’s
employment with the Company or any subsidiary of the Company shall terminate as
a result of the death of an optionee, the option may be exercised by the
executors or administrators of the optionee or by any person or persons who
shall have acquired the option directly from the optionee by bequest or
inheritance, to the extent that the optionee’s right to exercise such option
had accrued pursuant to this Plan at the time of his death, had not expired by
its terms and had not previously been exercised, at any time prior to the
earlier of the expiration of such option or one year after the optionee’s
death.

 

(d) 
Transferability  No option shall be transferable by the
optionee otherwise than by will or the laws of descent and distribution, and is
exercisable during his life time only by the optionee.

 

(e)  Mandatory
Holding Period.  Shares
purchased upon the exercise of options granted under this Plan may not be sold
or transferred by the employee for one year following the exercise of the
option, except by will or the laws of descent and distribution, or to joint
ownership with the employee’s spouse, provided, however, that such restriction
shall terminate upon a “change in control” of the Company. This restriction is
for the purpose of encouraging long term investment in the Company’s stock by
employees and is not intended, and is not guaranteed, to preserve any tax
benefit or treatment.

 

For purposes hereof “change in
control” shall mean any one of the following events: (1) the acquisition
of ownership of, holding or power to vote more than 51% of the Company’s voting
stock, (2) the acquisition of the power to control the election of a
majority of the Company’s directors, (3) the exercise of a controlling
influence over the management or policies of the Company by any person or by
persons acting as a “group” (within the meaning of Section 13(d) of
the Securities Exchange Act of 1934), or (4) the failure of Continuing
Directors to constitute at least two-thirds of the Board during any period of
two consecutive years. For purposes of this Plan, “Continuing Directors” shall
include only those individuals who were members of the Board at the date of
adoption hereof by the Board and those other individuals whose election or
nomination for election as a member of the Board was approved by a vote of at
least two-thirds of the Continuing Directors then in office. For purposes of
this subparagraph only, the term “person” refers to an individual or a
corporation, partnership, trust, association, joint venture, pool, syndicate,
sole proprietorship, unincorporated organization or any other form of entity
not specifically listed herein.  The
decision of the Committee as to whether a change in control has occurred shall
be conclusive and binding.

 

(f) Exercise
of Option and Payment of Purchase Price.  An employee may exercise options only by (i) written
notice of intent to exercise the option with respect to a specified number of
shares, and (2) payment to the Company (contemporaneously with delivery of
such notice) in cash of the amount of the exercise price for the number of
shares with respect to which the option is then being exercised.  Each such notice (and payment where required)
shall be delivered, or mailed by prepaid registered or certified mail,
addressed to the Secretary of the Company at the Company’s executive offices.

 

(g) No
Rights as a Stockholder or Employee. An optionee or a transferee of an option shall have no
rights as a stockholder with respect to any shares covered by an option until
the date payment for such shares is received and ownership is recorded in the
employee’s name. No adjustment shall be made for dividends (ordinary or
extraordinary, whether in cash, securities, or other property) or distributions
or other rights for which the record date is prior to such date, except as
provided in Section 4 hereof.  In no event shall an Employee’s eligibility to
participate or participation in the Plan create or be deemed to create any
legal or equitable right of the Employee to continue service with the Company
or any subsidiary or affiliate of the Company.

 

 

(h) Legend.
The Company shall
be entitled to note any restrictions on transfer, including any restrictions
arising as a result of state or federal securities laws, in its transfer
records, and to inscribe on each share certificate representing shares issued
upon the exercise of options a legend noting such restrictions.

 

(i)  Withholding. At the time an option is exercised, in
whole or in part, or at the time some or all of Common Stock issued pursuant to
the Plan is disposed of, the participant must make adequate provision for the
Company’s federal, state or other tax withholding obligations, if any, that may
arise upon exercise of the option or the disposition of the shares of common
stock. At any time, the Company may, but shall not be obligated to, withhold
from a participant’s compensation the amount necessary for the Company to meet
applicable withholding obligations, including, any withholding required to make
available to the Company any tax deductions attributed to the sale or early
disposition of common stock by the participant.

 

(j) Other
Provisions. The
option agreements authorized under the Plan shall contain such other provisions
as the Committee and the Board shall deem advisable, provided that no such
provision may in any way be in conflict with the terms of this Plan.

 

7.   Term of Plan

 

The Plan shall continue in from
the date of adoption by the Board of Directors until June 30, 2013, unless
sooner terminated pursuant to Section 9. 
No option may be granted under the Plan after June 30, 2013.

 

8.   Indemnification of Committee

 

In
addition to such other rights of indemnification as they may have as directors,
officers, or as members of the Committee, the members of the Committee shall be
indemnified by the Company against the reasonable expenses, including attorney’s
fees actually and necessarily incurred in connection with the defense of any
action, suit, or proceeding, or in connection with any appeal therein, to which
they or any of them may be a party by reason of any action taken or failure to
act under or in connection with the Plan or any option granted thereunder, and
against all amounts paid by them in settlement thereof (provided such
settlement is approved by independent legal counsel selected by the Company) or
paid by them in satisfaction of a judgment in any such action, suit, or
proceeding, except in relation to matters as to which it shall be adjudged in
such action, suit, or proceeding that such Committee member is liable for gross
negligence or misconduct in performance of his duties.

 

9.   Amendment or Termination of the Plan

 

The Board may,
insofar as permitted by law, from time to time, with respect to any shares at
anytime not subject to options, suspend or discontinue the Plan or revise or
amend it in any respect whatsoever, including the adoption of payroll deduction
procedures or providing for the grant of options on a basis as frequent as
monthly, except that, without the approval of the stockholders, no such revision
or amendment shall increase the number of shares subject to the Plan, or permit
granting of options under this Plan to persons other than employees of the
Company or subsidiaries of the Company, or extend an option period beyond 12
months, or reduce the discounted stock price below 85% of the lesser of fair
market value of the common stock as of the date of grant or the date of
exercise of any option.  Furthermore, the
Plan may not, without the approval of the stockholders, be amended in any
manner that will cause options issued under it to fail to meet the requirements
of employee stock purchase options as defined in §423 of the Code. No
amendment, suspension or termination of the Plan shall, without the consent of
any affected holder of an option, alter or impair any rights or obligations
under any option granted prior to such amendment, suspension or termination.

 

10. Application
of Funds

 

The
proceeds received by the Company from the sale of common stock pursuant to
options granted pursuant to this Plan will be used for general corporate
purposes.

 

 

11. Approval of Stockholders; Consequence of
Non-Approval

 

The
Plan must be approved by the holders of a majority of the votes cast at a
meeting of the Company’s shareholders at which a majority of shares are
present, within twelve months after the date the Plan is adopted by the Board
of Directors.  If approval is not
obtained within such period, the Plan shall automatically be terminated, unless
the Board of Directors specifically elects to continue the Plan as an employee
stock purchase plan which is not qualified under §423.  Further, if such approval is not obtained,
any employee who shall have exercised an option prior to such approval shall be
treated as having received, as of the date of exercise, with respect to each
share purchased, ordinary income in an amount equal to the difference between
the exercise price and the fair market value of the share on the date of
exercise.

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