Document:

Exhibit 10.1

 

 

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

  	
  1

  
	
  2.1

  	
  Definitions

  	
  1

  
	
  ARTICLE 3 ADMINISTRATION

  	
  4

  
	
  3.1

  	
  Committee

  	
  4

  
	
  3.2

  	
  Authority of Committee

  	
  4

  
	
  3.3

  	
  Decisions Binding

  	
  4

  
	
  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

  	
  5

  
	
  5.1

  	
  Plan Structure

  	
  5

  
	
  5.2

  	
  Establishment of Target Bonuses

  	
  5

  
	
  5.3

  	
  Corporate Financial Objectives

  	
  5

  
	
  5.4

  	
  Business Unit Financial Objectives

  	
  6

  
	
  5.5

  	
  Adjustment to Financial Objectives

  	
  6

  
	
  5.6

  	
  Examples

  	
  6

  
	
  5.7

  	
  Payout Form and Timing

  	
  6

  
	
  5.8

  	
  Terminations of Employment

  	
  7

  
	
  ARTICLE 6 AMENDMENT, MODIFICATION AND TERMINATION

  	
  7

  
	
  6.1

  	
  Amendment, Modification and Termination

  	
  7

  
	
  6.2

  	
  Termination After or During Plan Year

  	
  7

  
	
  ARTICLE 7 GENERAL PROVISIONS

  	
  8

  
	
  7.1

  	
  No Right to Participate

  	
  8

  
	
  7.2

  	
  No Right to Employment

  	
  8

  
	
  7.3

  	
  Withholding

  	
  8

  
	
  7.4

  	
  Funding

  	
  8

  
	
  7.5

  	
  Expenses

  	
  8

  
	
  7.6

  	
  Titles and Headings

  	
  8

  
	
  7.7

  	
  Gender and Number

  	
  8

  
	
  7.8

  	
  Governing Law

  	
  8

  
	
  7.9

  	
  2005 Incentive Plan Controls

  	
  8

  

 

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. 2005 Incentive Plan (“2005 Incentive Plan”),
consisting of a program for the grant of annual Performance-Based Cash Awards
under Article 9 of the 2005 Incentive Plan. This Plan has been established and
approved, and will be administered by, the Committee pursuant to the terms of
the 2005 Incentive 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 2005 Incentive Plan
shall apply with respect to this Plan. As of the Effective Date, Section 5.4 of
the 2005 Incentive 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 2005 Incentive 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. For 2006, the
Performance Objectives include Corporate Financial Objectives and Business Unit
Financial Objectives (for Business Unit executives).

 

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 2005 Incentive Plan. This
Plan became effective on May 3, 2005, the date the 2005 Incentive 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.

 

ARTICLE 2

DEFINITIONS

 

2.1.          DEFINITIONS. Capitalized
terms used herein and not otherwise defined shall have the meanings assigned to
such terms in the 2005 Incentive Plan. In addition,

 

1

 

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, increased by depreciation and amortization.

 

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,
adjusted as follows, without duplication:

 

(1)                                  increased or reduced
by other income and expense,

(2)                                  increased by
interest, taxes, depreciation and amortization,

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

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

(5)                                  increased or reduced
to eliminate the impact of discontinued operations,

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

(7)                                  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 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. For the 2006
Plan Year, the Business Units are (i) Communications and (ii) Magnet Wire and
Distribution and Copper Rod (excluding Essex Nexans Europe SAS).

 

Business Unit Adjusted EBITDA.
For any Plan Year, Adjusted EBITDA attributable to the relevant Business Unit
before management fees.

 

2

 

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 (including the
results of Essex Nexans Europe SAS).

 

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

 

EPS. Earnings per
shares 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.

 

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 Corporate Financial Objectives
and Business Unit Financial Objectives (if applicable), as provided in Article
5.

 

Plan Year. January 1
to December 31 of each year, beginning in 2005.

 

Target Bonus. Has
the meaning described in Section 5.2.

 

Triggering Acquisition.
An acquisition (or combination of acquisitions) in which the acquired entity’s
EBITDA (or 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
target Adjusted EBITDA for the Company (on a consolidated basis).

 

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 preceding the consummation of the disposition.

 

3

 

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 2005
Incentive 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 Performance Objectives within the parameters set forth in this
Plan (which shall not have the effect of increasing any Performance Bonus
otherwise payable hereunder);

 

(f)  To the extent
provided in this Plan or a Schedule to this Plan for a Plan Year, 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, including without
limitation, the Participant’s individual performance during the Plan Year;

 

(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.

 

4

 

ARTICLE 4

ELIGIBILITY

 

4.1.          DESIGNATION OF
PARTICIPANTS. The Chief Executive Officer of the Company (CEO), Executive
Vice Presidents (EVPs) and Senior Vice Presidents (SVPs) of the Company listed
on Exhibit A hereto are hereby designated as Participants in this Plan for the
2006 Plan Year. 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, and shall, before March 31 of each Plan Year, 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.

 

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.

 

5.2.          ESTABLISHMENT OF
TARGET BONUSES. Exhibit A sets forth the percentage of each Participant’s
base salary that will be awarded to the Participant if the 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 Schedules I and II, and
depending on whether the Committee exercises its discretion to reduce a
resulting Performance Bonus as provided in Schedules I and II.

 

5.3.          CORPORATE FINANCIAL
OBJECTIVES. Before March 31 of each Plan Year, the Committee shall approve
the Corporate Financial Objectives for the Plan

 

5

 

Year, based on any one or more
of the Qualified Business Criteria listed in Section 14.2 of the 2005 Incentive
Plan, and shall set forth such Corporate Financial Objectives in one or more
Schedules attached to this Plan document. The Corporate Financial Objectives
for the 2006 Plan Year are reflected in Schedule I. Such Schedule provides the
formula for determining a Participant’s Performance Bonus based on the level of
achievement of Corporate Financial Objectives. Subject to the limitations provided
in Schedule I, the Committee retains discretion to reduce, but not increase,
the Performance Bonus resulting from the achievement of Performance Objectives.

 

5.4.          BUSINESS UNIT
FINANCIAL OBJECTIVES. Before March 31 of each Plan Year, the Committee
shall approve the Business Unit Financial Objectives for the Plan Year, based
on any one or more of the Qualified Business Criteria listed in Section 14.2 of
the 2005 Incentive Plan, and shall set forth such Business Unit Financial
Objectives in one or more Schedules attached to this Plan document. The
Business Unit Financial Objectives for the 2006 Plan Year are reflected in
Schedule II. Schedule II provides the formula for determining a Participant’s
Performance Bonus based on the level of achievement of Business Unit Financial
Objectives and Corporate Financial Objectives. Subject to the limitations
provided in Schedule II, the Committee retains discretion to reduce, but not
increase, the Performance Bonus resulting from the achievement of Performance
Objectives.

 

5.5.          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 and Business Unit Financial Objectives for the Plan Year shall be
adjusted, effective as of the last day of the fiscal quarter immediately before
the consummation 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 fiscal quarters of the Plan Year, and (y) to
reflect any Triggering Acquisition, by establishing supplemental Corporate
Financial Objectives and/or Business Unit Financial Objectives in compliance
with Sections 5.3 and 5.4 hereof, as the Committee deems appropriate, with
respect to the acquired business. Notwithstanding the foregoing, the Committee
may choose not to make one or more such adjustments if the effect of not making
such adjustment would be to decrease the amount of Performance Bonuses that
otherwise would be payable under this Plan for such Plan Year. Nothing in this
Section 5.5 will be construed to authorize the Committee to take actions under
this Section 5.5 that would preclude
the Performance Bonuses from qualifying for the Section 162(m) Exemption (as
defined in the 2005 Incentive
Plan).

 

5.6.          EXAMPLES. Sample
Performance Bonus calculations under various scenarios for the 2006 Plan Year
are illustrated in Schedules I and II.

 

5.7.          PAYOUT FORM AND
TIMING. Subject to Section 5.8 hereof in the case of terminations of
employment, Performance Bonuses will be paid within thirty 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.

 

6

 

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 of the Target Bonus that would
otherwise be payable as if the performance through the date of termination was
the performance for the Plan Year, provided that the applicable Performance
Objectives are met for the portion of the Plan Year during which the
Participant was employed by the Company (for example, if actual performance
through the date of termination represented 90% of target Performance
Objectives for the Plan Year, the Participant would be entitled to a prorata
portion of the corresponding percentage of his or her Target Bonus based on the
applicable performance matrix, and if the threshold level of performance was not
achieved, no bonus would be paid). As soon as practicable after the date of
termination, the Committee shall make a determination as to the extent to which
Performance Objectives had been achieved for the portion of the Plan Year
during which the Participant was employed, and the Performance Bonus to the
terminated Participant will be paid within thirty days after such determination.
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.

 

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).

 

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 any amendment or
termination occurs during a Plan Year, the Committee shall determine when and
to what extent Performance Bonuses, if any, shall be paid for the portion of
the Plan Year preceding the amendment or termination, provided that if a Change
in Control occurs, no such amendment or termination may adversely affect
amounts payable to a Participant without the consent of the Participant.

 

7

 

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.

 

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           2005 INCENTIVE PLAN
CONTROLS. This Plan is adopted pursuant to and shall be governed by and construed
in accordance with the 2005 Incentive Plan. In the event of any actual or
alleged conflict between the provisions of the 2005 Incentive

 

8

 

Plan and the provisions of this
Plan, the provisions of the 2005 Incentive 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 29,
2006, to be effective as of January 1, 2006.

 

 

	
   

  	
   

  	
  SUPERIOR ESSEX INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Barbara L. Blackford

  	
   

  
	
   

  	
   

  	
  Barbara L. Blackford

  	
   

  
	
   

  	
   

  	
  Executive Vice President,

  	
   

  
	
   

  	
   

  	
  General Counsel and Corporate Secretary

  

 

9

 

EXHIBIT A

 

PARTICIPANTS AND TARGET BONUS PERCENTAGES FOR
FISCAL YEAR 2006

UNDER THE AMENDED AND RESTATED EXECUTIVE BONUS PLAN

 

	
  Name

  	
   

  	
  % of Base Salary Payable at

  Target Achievement of

  Performance Objectives

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Stephen M. Carter, CEO

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  David S. Aldridge, CFO

  	
   

  	
  55

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Justin F. Deedy, Jr., EVP and President,
  Communications Group

  	
   

  	
  55

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  H. Patrick Jack, EVP and President, Essex
  Group

  	
   

  	
  55

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Barbara L. Blackford, EVP, General Counsel
  and Secretary

  	
   

  	
  55

  	
  %

  

 

A-1

 

2006 Executive Bonus Plan Model

Schedule I

Corporate Model

(Participants as shown in “Exhibit A, Amended and
Restated Executive Bonus Plan”)

 

	
  Consolidated
  Adjusted EBITDA Driver

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  70

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consolidated
  Adjusted EBITDA (% Target Achieved versus Plan)

  	
   

  	
  < 90

  	
  %

  	
  90

  	
  %

  	
  95

  	
  %

  	
  100

  	
  %

  	
  105

  	
  %

  	
  110

  	
  %

  	
  115

  	
  %

  	
  120

  	
  %

  	
  125

  	
  %

  	
  > 125

  	
  %

  
	
  Consolidated
  Adjusted EBITDA ($M)

  	
   

  	
   

  	
   

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
   

  
	
  % Payout

  	
   

  	
  0

  	
  %

  	
  60

  	
  %

  	
  80

  	
  %

  	
  100

  	
  %

  	
  115

  	
  %

  	
  130

  	
  %

  	
  145

  	
  %

  	
  170

  	
  %

  	
  200

  	
  %

  	
  200

  	
  %

  

 

Note: When performance falls between two points, interpolation shall
occur.

*  Targets for specific
quantitative measures intentionally deleted for this public filing.

 

	
  Adjusted
  EPS Driver

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  30

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjusted
  EPS

  	
   

  	
   

  	
   

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
   

  
	
  % Payout

  	
   

  	
  0

  	
  %

  	
  60

  	
  %

  	
  80

  	
  %

  	
  100

  	
  %

  	
  115

  	
  %

  	
  130

  	
  %

  	
  145

  	
  %

  	
  170

  	
  %

  	
  200

  	
  %

  	
  200

  	
  %

  

 

Note: When performance falls between two points, interpolation shall
occur.

*  Targets for specific
quantitative measures intentionally deleted for this public filing.

 

If
either the threshold level of Consolidated Adjusted EBITDA or Adjusted EPS is
achieved, an additional bonus (the “Personal Performance Bonus”) will be added
to the Performance Bonus in an amount equal to 20% of the total Performance
Bonus calculated as provided under the Consolidated Adjusted EBITDA Driver and
the Adjusted EPS Driver (“Driver Performance Bonus”); provided that the
Committee, in its sole and absolute discretion, based on its assessment of
individual performance, may decrease or eliminate such Personal Performance
Bonus.  In addition, the amounts to be
paid as Driver Performance Bonus, if any, may be reduced by the Committee, in
its sole and absolute discretion, by up to 20% based on its assessment of an
Executive’s individual performance.  It
is contemplated that the Committee will eliminate or reduce the Personal
Performance Bonus unless the Committee assesses that special individual
performance merits payment of the Personal Performance Bonus.

 

 

2006 Executive Bonus Plan Model

Schedule II

Business Unit Model

(Participants as shown in “Exhibit A, Amended and
Restated Executive Bonus Plan”)

 

	
  Adjusted Operating Income (O.I.) Driver

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  75

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjusted O.I. (% Target Achieved versus
  Plan)

  	
   

  	
  <90

  	
  %

  	
  90

  	
  %

  	
  95

  	
  %

  	
  100

  	
  %

  	
  105

  	
  %

  	
  110

  	
  %

  	
  115

  	
  %

  	
  120

  	
  %

  	
  125

  	
  %

  	
  > 125

  	
  %

  
	
  Communications Adjusted O.I. ($M)

  	
   

  	
   

  	
   

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
   

  
	
  Essex Adjusted O.I. ($M)

  	
   

  	
   

  	
   

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
   

  
	
  % Payout

  	
   

  	
  0

  	
  %

  	
  60

  	
  %

  	
  80

  	
  %

  	
  100

  	
  %

  	
  115

  	
  %

  	
  130

  	
  %

  	
  145

  	
  %

  	
  170

  	
  %

  	
  200

  	
  %

  	
  200

  	
  %

  

 

Note:
When performance falls between two points, interpolation shall occur.

*  Targets for specific quantitative measures
intentionally deleted for this public filing.

 

	
  Consolidated Adjusted EBITDA Driver

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  25

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consolidated Adjusted EBITDA (% Target
  Achieved versus Plan)

  	
   

  	
  <90

  	
  %

  	
  90

  	
  %

  	
  95

  	
  %

  	
  100

  	
  %

  	
  105

  	
  %

  	
  110

  	
  %

  	
  115

  	
  %

  	
  120

  	
  %

  	
  125

  	
  %

  	
  > 125

  	
  %

  
	
  Consolidated Adjusted EBITDA ($M)

  	
   

  	
   

  	
   

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
   

  
	
  % Payout

  	
   

  	
  0

  	
  %

  	
  60

  	
  %

  	
  80

  	
  %

  	
  100

  	
  %

  	
  115

  	
  %

  	
  130

  	
  %

  	
  145

  	
  %

  	
  170

  	
  %

  	
  200

  	
  %

  	
  200

  	
  %

  

 

Note:
When performance falls between two points, interpolation shall occur.

*  Targets for specific quantitative measures
intentionally deleted for this public filing.

 

If
either the threshold level of Consolidated Adjusted EBITDA or Adjusted EPS is
achieved, an additional bonus (the “Personal Performance Bonus”) will be added
to the Performance Bonus in an amount equal to 20% of the total Performance
Bonus calculated as provided under the Consolidated Adjusted EBITDA Driver and
the Adjusted EPS Driver (“Driver Performance Bonus”); provided that the
Committee, in its sole and absolute discretion, based on its assessment of
individual performance, may decrease or eliminate such Personal Performance
Bonus.  In addition, the amounts to be
paid as Driver Performance Bonus, if any, may be reduced by the Committee, in
its sole and absolute discretion, by up to 20% based on its assessment of an
Executive’s individual performance.  It
is contemplated that the Committee will eliminate or reduce the Personal
Performance Bonus unless the Committee assesses that special individual performance
merits payment of the Personal Performance Bonus.Exhibit 10.2

 

SUPERIOR ESSEX INC.

 

PERFORMANCE-CONTINGENT
SHARE AWARD CERTIFICATE

 

Non-transferable

 

 

G R A N T   T
O

 

 

(“Grantee”)

 

by Superior Essex Inc. (the “Company”)
of the right (“Performance Shares”) to receive shares of the Company’s $.01 par
value common stock (“Shares”), pursuant to and subject to the provisions of the
Superior Essex Inc. 2005 Incentive Plan (the “Plan”) and to the terms and
conditions set forth on the following pages of this award certificate (this “Certificate”).

 

The target number of Shares
subject to this award is                      
(the “Target Award”). Depending on the Company’s level of attainment of the
performance targets set forth in Exhibit A for the period ending
December 31, 2007 (the “Performance Period”), Grantee may earn up to 200% of
the Target Award, as set forth in greater detail in Exhibit A.

 

By accepting this award,
Grantee shall be deemed to have agreed to the terms and conditions of this Certificate
and the Plan.

 

IN WITNESS WHEREOF, Superior
Essex Inc., acting by and through its duly authorized officers, has caused this
Certificate to be executed as of the Grant Date.

 

	
  SUPERIOR ESSEX INC.

  	
  Grant Date: March 31, 2006

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  Accepted by Grantee:

  	
   

  
	
  Its: Authorized Officer

  	
   

  
					

 

 

TERMS AND CONDITIONS

 

1.         Defined Terms. Capitalized terms used herein and not
otherwise defined shall have the meanings assigned to such terms in the Plan. In
addition, certain terms are defined in Exhibit A.

 

2.         Vesting and Settlement of Performance Shares. The Performance Shares have been credited
to a bookkeeping account on behalf of Grantee. The Performance Shares will vest
and will be converted to actual Shares of Stock (one Share per vested
Performance Share) on the dates and to the extent set forth in Exhibit A.

 

If Grantee’s employment
terminates prior to the end of the Performance Period for any reason other than
as set forth in Exhibit A, Grantee shall forfeit all right, title and interest
in and to the Performance Shares as of the date of such termination. In
addition, Grantee shall have no rights to any Performance Shares that fail to
vest in accordance with the terms of this Certificate.

 

Vested Shares will be
registered on the books of the Company in Grantee’s name on the earlier of March
15, 2008 or the date of the occurrence of a Change in Control (a “Pay-Out Date”),
and will be delivered to Grantee as soon as practical thereafter, in
certificated or uncertificated form, as Grantee shall direct.

 

3.         Determination of Performance. The Committee shall, as soon as practicable
after the end of the Performance Period certify the Company’s performance
against the Performance Objectives, but in no event later than (i) March 15,
2008 or (ii) the date of filing of the Company’s Annual Report on Form 10-K for
2007. If for any reason the Committee shall not have certified the Company’s
performance against the Performance Objectives by March 15, 2008, the
conversion date for vested Performance Shares and the Pay-Out Date shall be
delayed, in the discretion of the Company, for such period as may be required
to avoid liability under Code Section 409A, but shall in no event extend beyond
December 31, 2008.

 

4.         No Dividend Equivalents. Prior to a Pay-Out Date, Grantee shall have
no rights to cash dividends or other cash distributions paid with respect to Performance
Shares.

 

5.         Limitation of Rights. This Certificate does not confer to Grantee
or Grantee’s Beneficiary, executors or administrators any rights of a
stockholder of the Company unless and until Shares of Stock are in fact registered
in such person’s name on the Pay-Out Date. Prior to the Pay-Out Date, no right
or interest of Grantee in Performance Shares may be pledged, encumbered, or
hypothecated or be made subject to any lien, obligation, or liability of
Grantee to any other party other than the Company or an Affiliate. Prior to the
Pay-Out Date, Performance Shares may not be sold, assigned, transferred or
otherwise disposed of by Grantee other than by will or the laws of descent and
distribution.

 

Nothing in this Certificate
shall interfere with or limit in any way the right of the Company or any
Affiliate to terminate Grantee’s employment at any time, nor confer upon
Grantee any right to continue in employment of the Company or any Affiliate.

 

6.         Payment of Taxes. Grantee will, no later than the date as of
which any amount related to the Performance Shares first becomes includable in
Grantee’s gross income for federal income tax purposes, pay to the Company, or
make other arrangements satisfactory to the Company regarding payment of, any
federal, state and local taxes of any kind required by law to be withheld with
respect to such amount. The Committee hereby approves Grantee’s surrender to
the Company of a number of Shares earned under this award as necessary to pay
the minimum applicable withholding tax obligation, and Grantee hereby consents
to such method of tax withholding if requested by the Company. The obligations
of the Company under this Certificate will be conditional on such payment or
arrangements, and the Company, and, where applicable, its Affiliates will, to
the extent permitted by law, have the right to deduct any such taxes from any
payment of any kind otherwise due to Grantee.

 

7.         Restrictions on Issuance of Shares. If at any time the Committee shall
determine, in its discretion, that registration, listing or qualification of
the Shares of Stock underlying the Performance Shares upon any securities
exchange or similar self-regulatory organization or under any federal or state
securities law, or the consent or approval of any governmental regulatory body,
is necessary or desirable as a condition to the settlement of the Performance
Shares, the Performance Shares will not be converted to Shares in whole or in
part unless and until such registration, listing, qualification, consent or
approval shall have been effected or obtained free of any conditions not
acceptable to the Committee.

 

8.         Change in Capital Structure. In the event of a corporate event or
transaction involving the Company (including, without limitation, any stock
dividend, stock split, extraordinary cash dividend, recapitalization,
reorganization, merger, consolidation, split-up, spin-off, combination or
exchange of shares), the

 

2

 

Committee may adjust this award to preserve the benefits or potential
benefits of this award. Without limiting the foregoing, in the event of a
subdivision of the outstanding Stock (stock-split), a declaration of a dividend
payable in Stock, or a combination or consolidation of the outstanding Stock
into a lesser number of shares, the Performance Shares then subject to this
Certificate shall automatically be adjusted proportionately.

 

9. Provisions of Plan
Control. This Certificate is
subject to all the terms, conditions and provisions of the Plan, including,
without limitation, the amendment and anti-dilution provisions thereof, and to
such rules, regulations and interpretations relating to the Plan as may be
adopted by the Committee and as may be in effect from time to time. The Plan
and applicable provisions of the Employment Agreement between Grantee
and Executive in effect as of the Grant Date, as amended, the “Grantee
Employment Agreement”), if any, are
incorporated herein by reference. If and to the extent that this Certificate
conflicts or is inconsistent with the terms, conditions and provisions of the
Plan or such Grantee Employment Agreement, if any, the Plan and such Grantee
Employment Agreement shall control, and this Certificate shall be deemed to be
modified accordingly, provided that to the extent the Plan provides the
Committee with discretion to determine the terms of the award, the exercise of
such discretion shall not be considered to be inconsistent with the terms of
the Plan.

 

10.
Notices. Notices and communications under this Certificate must be in
writing and either personally delivered or sent by registered or certified
United States mail, return receipt requested, postage prepaid. Notices to the
Company must be addressed to Superior Essex Inc., 150 Interstate North Parkway,
Atlanta, Georgia 30339; Attention: Corporate Secretary, or any other address
designated by the Company with notice to Grantee. Notices to Grantee will be
directed to the address of Grantee then currently on file with the Company, or
at any other address given by Grantee in a written notice to the Company.

 

3

 

EXHIBIT A

 

Financial Performance Objectives

 

Return on Net Assets (RONA)  65%

 

	
  2007 RONA (%)

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  % Payout**

  	
   

  	
  50

  	
  %

  	
  60

  	
  %

  	
  70

  	
  %

  	
  80

  	
  %

  	
  90

  	
  %

  	
  100

  	
  %

  	
  110

  	
  %

  	
  120

  	
  %

  	
  130

  	
  %

  	
  140

  	
  %

  	
  150

  	
  %

  	
  160

  	
  %

  	
  170

  	
  %

  	
  180

  	
  %

  	
  190

  	
  %

  	
  200

  	
  %

  

 

Core Business Revenues  35%

 

	
  2007 Core Business Revenues (%)

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  	
  *

  	
   

  
	
  % Payout**

  	
   

  	
  50

  	
  %

  	
  60

  	
  %

  	
  70

  	
  %

  	
  80

  	
  %

  	
  90

  	
  %

  	
  100

  	
  %

  	
  110

  	
  %

  	
  120

  	
  %

  	
  130

  	
  %

  	
  140

  	
  %

  	
  150

  	
  %

  	
  160

  	
  %

  	
  170

  	
  %

  	
  180

  	
  %

  	
  190

  	
  %

  	
  200

  	
  %

  

 

* Targets for specific
quantitative measures intentionally deleted for this public filing.

** Note: Denotes Performance
Shares earned as a percentage of Target Award. When performance falls between
two points, linear interpolation shall occur.

 

Definitions

 

Adjusted Operating Income. Operating income, a GAAP financial measure
for a given period, as reflected in the applicable Company earnings release,
adjusted without duplication by charges that are considered to be non-recurring
or special items. Without limiting the foregoing, if the dollar to euro
exchange rate changes more than 10% from the existing 1.20 in any quarter
included in the averaging process, the Adjusted Operating Income would be
adjusted for such quarter to normalize to an exchange rate of 1.20.

 

Average Net Assets. The average of total assets of the Company
(on a consolidated basis) less: (i) cash, (ii) current liabilities other than
debt, and (iii) intangible assets, as reflected on the Company’s balance sheets
on December 31, 2006 and on the last day of each fiscal quarter in 2007. Without
limiting the foregoing, if the dollar to euro exchange rate changes more than
10% from the existing 1.20 in any quarter included in the averaging process,
the Average Net Assets would be adjusted for such quarter to normalize to an
exchange rate of 1.20.

 

Core Business Revenues. Revenues of the Company’s businesses for the
fiscal year ended December 31, 2007, other than the copper rod segment, as
reflected in the applicable earnings release, with the copper component of revenues
adjusted to $2.00 per pound.

 

Return on Net Assets (RONA). Adjusted Operating Income for the fiscal
year ended December 31, 2007, divided by Average Net Assets.

 

4

 

Acquisition.  An acquisition (or combination of
acquisitions) of a business, including a line of products.

 

Disposition.  The disposition of businesses,
product lines or interests.

 

Effect of Acquisition or
Disposition.  If
prior to December 31, 2007, the Company engages in a Disposition or
Acquisition, the following shall occur (the “Automatic Adjustments”):

 

•                  In the case of a Disposition, each of the
Core Business Revenue, RONA, Adjusted Operating Income and Average Net Assets
Financial Objectives shall be adjusted, effective as of the date of the
Disposition, by eliminating from the original Financial Objectives the plan
business results relating to the disposed business or assets for the remainder
of the Performance Period.

 

•                  In the case of an Acquisition that would
result in a reduction in the Company’s RONA for the remainder of the
Performance Period, each of RONA, Adjusted Operating Income and Average Net
Assets shall be adjusted, effective as of the date of the Acquisition, by
eliminating the effect of such Acquisition for the remainder of the Performance
Period.

 

Notwithstanding the
Automatic Adjustments, if an Acquisition or Disposition occurs, the Committee
may, in its sole discretion, increase the RONA and/or Core Business Revenue
Financial Objectives as so adjusted to increase the difficulty in
attaining such Financial Objectives, or reduce the percentage pay-out, as a
result of such Acquisition or Disposition.

 

The Committee retains the sole
discretion to reduce the pay-out after the financial results are finalized if
the formula would result in unusually high pay-outs to Grantee that the
Committee deems to be disproportionate to the improvement in Company
performance.

 

Vesting of Performance
Shares. The
Performance Shares will vest and will be converted to actual Shares of Stock
(one Share per vested Performance Share) on the dates and to the extent set
forth below:

 

(a)                      On March 15, 2008 (the “Scheduled Pay-Out
Date”), as to the number of Shares earned as provided under “Performance
Objectives” above (the “Performance Objectives”) as of the end of the
Performance Period.

 

(b)                     On the date of a Change in Control, if any,
that occurs on or prior to the Scheduled Pay-Out Date, as to the number of
Shares determined by the Committee between the Target Award and the maximum
award, subject to the provisions of Section 8(d)(ii) of the Grantee Employment
Agreement.

 

(c)                      On the Scheduled Pay-Out Date, if Grantee’s
employment is terminated due to death, Disability, Retirement, Grantee’s
resignation for “Good Reason” (as defined in the Grantee Employment Agreement) or
termination by the Company without Cause (as defined in the Grantee Employment
Agreement) prior to the end of the Performance Period, as to the number of
Shares that would have been earned if Grantee had remained employed through the
end of the Performance Period, multiplied by a fraction, the numerator of which
is the number of days lapsed since January 1, 2006 and the denominator of which
is 730.

 

5

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