Document:

Exhibit
10(e)

 

SUPERIOR
ESSEX INC.

 

2003
STOCK INCENTIVE PLAN

 

 

 

TABLE
OF CONTENTS

 

 

	
  ARTICLE
  I PURPOSE

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  II DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  III ADMINISTRATION

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  IV SHARE AND OTHER LIMITATIONS

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  V ELIGIBILITY

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  VI STOCK OPTIONS

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  VII RESTRICTED STOCK AWARDS

  	
   

  
	
   

  	
   

  
	
  ARTICLE VIII NON-TRANSFERABILITY AND
  TERMINATION OF EMPLOYMENT/CONSULTANCY/DIRECTORSHIP

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  IX CHANGE IN CONTROL PROVISIONS

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  X TERMINATION OR AMENDMENT OF PLAN

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  XI UNFUNDED PLAN

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  XII GENERAL PROVISIONS

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  XIII EFFECTIVE DATE OF PLAN

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  XIV TERM OF PLAN

  	
   

  

 

 

SUPERIOR ESSEX INC.

 

 

2003 STOCK INCENTIVE PLAN

 

 

ARTICLE I

 

PURPOSE

 

The purpose of
this Superior Essex Inc. 2003 Stock Incentive Plan is to enhance the
profitability and value of the Company for the benefit of its stockholders by
enabling the Company to offer employees of, Consultants (as defined below) to,
and Non-Employee Directors (as defined below) of, the Company and its
Affiliates (as defined below) stock-based incentives in the Company, thereby
creating a means to raise the level of equity ownership by such individuals in
order to attract, retain and reward such individuals and strengthen the
mutuality of interests between such individuals and the Company’s stockholders.

 

ARTICLE II

 

DEFINITIONS

 

For purposes
of this Plan, the following terms shall have the following meanings:

 

2.1          “Affiliate” means each of the
following:  (a) any Subsidiary; (b) any Parent; (c) any corporation,
trade or business (including, without limitation, a partnership or limited
liability company) which is directly or indirectly controlled fifty percent (50%)
or more (whether by ownership of stock, assets or an equivalent ownership
interest or voting interest) by the Company or one of its Affiliates; and (d)
any other entity in which the Company or any of its Affiliates has a material
equity interest and which is designated as an “Affiliate” by resolution of the
Committee.

 

2.2          “Award” means any award under this
Plan of any Stock Option or Restricted Stock. 
All Awards, shall be granted by, confirmed by, and subject to the terms
of, the Plan and a written agreement executed by the Company and the
Participant.

 

2.3          “Board” means the Board of Directors
of the Company.

 

2.4          “Cause” means, with respect to a
Participant’s Termination of Employment or Termination of Consultancy, the
following: (a) in the case where 

 

 

there is no employment agreement, consulting
agreement, change in control agreement or similar agreement in effect between
the Company or an Affiliate and the Participant at the time of the grant of the
Award (or where there is such an agreement but it does not define “cause” (or
words of like import)), (i) a Participant’s gross negligence or willful
misconduct with regard to the Company or an Affiliate or their assets, (ii) a
Participant’s misappropriation or fraud with regard to the Company or an Affiliate
or their assets (other than good-faith expense account disputes), (iii) a
Participant’s willful and continued failure to substantially perform the
Participant’s duties (other than any such failure resulting from incapacity due
to physical or mental illness), which is not remedied within 10 days of
delivery of notice to the Participant thereof, (iv) a Participant’s conviction
of, or the pleading of guilty or nolo
contendere to, a felony or criminal offense punishable by a term of
imprisonment (other than a traffic violation), or (v) the Participant’s willful
violation of any written policy of the Company or an Affiliate or breach of any
confidentiality or non-competition covenant entered into between the
Participant and the Company or an Affiliate (other than a violation or breach,
as the case may be, which is insubstantial or insignificant, taking into
account all of the circumstances); or  (b) in the case where there is an
employment agreement, consulting agreement, change in control agreement or similar
agreement in effect between the Company or an Affiliate and the Participant at
the time of the grant of the Award that defines “cause” (or words of like
import), “cause” as defined under such agreement; provided, however, that with
regard to any agreement under which the definition of “cause” only applies on
occurrence of a change in control, such definition of “cause” shall not apply
until a change in control actually takes place and then only with regard to a
termination thereafter, provided that prior to a change in control “cause”
shall be defined as provided in subsection (a) above.  With respect to a Participant’s Termination of Directorship,
“cause” means an act or failure to act that constitutes cause for removal of a
director under applicable Delaware law. 
The determination of the Committee as to the existence of “Cause” shall
be conclusive on the Participant and the Company.

 

2.5          “Change in Control” has the meaning
set forth in Article IX.

 

2.6          “Code” means the Internal Revenue Code
of 1986, as amended.  Any reference to
any section of the Code shall also be a reference to any successor provision
and any Treasury Regulation promulgated thereunder.

 

2.7          “Committee” means (a) with respect to
the application of this Plan to Eligible Employees and Consultants, a committee
or subcommittee of the Board appointed from time to time by the Board, which
shall consist solely of two (2) or more non-employee directors, each of whom is
intended to be, to the extent Rule 16b-3 is applicable, a “non-employee director”
as defined in Rule 16b-3 and comply with any applicable exchange rule and, to
the extent Section 162(m) of the Code is applicable, two (2) or more “outside
directors” as defined under Section 162(m) of the Code; and (b) with respect to
the application of this 

 

2

 

Plan to Non-Employee Directors, the
Board.  If for any reason the appointed
Committee does not meet the requirements of Rule 16b-3 or the performance-based
compensation exception under Section 162(m) of the Code such noncompliance
shall not affect the validity of grants, interpretations or other actions of
the Committee.  Notwithstanding the
foregoing, if, and to the extent that no Committee exists which has the
authority to administer this Plan, the functions of the Committee shall be
exercised by the Board and all references herein to the Committee shall be
deemed to be references to the Board.

 

2.8          “Common Stock” means the common stock,
$0.01 par value per share, of the Company.

 

2.9          “Company” means Superior Essex Inc., a
Delaware corporation, and its successors by operation of law.

 

2.10        “Consultant” means any natural person
who is an advisor or consultant that provides bona fide services to the Company
or its Affiliates, provided that such services are not in connection with the
offer or sale of securities in a capital raising transaction, and do not
directly or indirectly promote or maintain a market for the Company’s or its
Affiliates securities.

 

2.11        “Disability” means, with respect to a
Participant’s Termination, a permanent and total disability as defined in
Section 22(e)(3) of the Code.

 

2.12        “Effective Date” means the effective
date of this Plan as defined in Article XIII.

 

2.13        “Eligible Employee” means each employee
of the Company or an Affiliate.

 

2.14        “Exchange Act” means the Securities
Exchange Act of 1934, as amended.  Any
references to any section of the Exchange Act shall also be a reference to any
successor provision.

 

2.15        “Fair Market Value” means, for purposes
of this Plan, unless otherwise required by any applicable provision of the Code
or any regulations issued thereunder, as of the grant date, the last sales
price reported for the Common Stock on the applicable date: (a) as reported on
the principal national securities exchange in the United States on which it is
then traded or The Nasdaq Stock Market, Inc.; or (b) if not traded on any such
national securities exchange or The Nasdaq Stock Market, Inc., as quoted on an
automated quotation system sponsored by the National Association of Securities
Dealers, Inc. or if the Common Stock shall not have been reported or quoted on
such date, on the first day prior thereto on which the Common Stock was
reported or quoted; provided, that the Committee may modify the definition of
Fair Market Value to reflect any changes in the trading practices of any
exchange on which the Common Stock is listed or traded.  If the Common Stock is not readily tradable
on a national 

 

3

 

securities exchange, The Nasdaq Stock Market,
Inc. or any automated quotation system sponsored by the National Association of
Securities Dealers, Inc., its Fair Market Value shall be set in good faith by
the Committee.  Notwithstanding anything
herein to the contrary, for purposes of granting Incentive Stock Options, “Fair
Market Value” means the price for Common Stock set by the Committee in good
faith based on reasonable methods set forth under Section 422 of the Code
including, without limitation, a method utilizing the average of prices of the
Common Stock reported on the principal national securities exchange on which it
is then traded during a reasonable period designated by the Committee.

 

2.16        “Family Member” means “family member” as
defined in Rule 701 under the Securities Act or, following the filing of a Form
S-8 pursuant to the Securities Act with respect to the Plan, as defined in
Section A1(4) of the general instructions of Form S-8.

 

2.17         “Incentive Stock Option” means any
Stock Option awarded to an Eligible Employee under this Plan intended to be and
designated as an “Incentive Stock Option” within the meaning of Section 422 of
the Code.

 

2.18        “Initial Fair Market Value” means the
value per share assigned to the Common Stock, which value shall be based on the
mid-point total reorganized value of the Common Stock established by Rothschild
Inc., which is $10.00 per share.(1)

 

2.19        “Management” means an employee who, as
of the Plan Effective Date, is classified as a “Tier 1 or Tier 2 Participant”
under the Key Employee Retention Plan, or, if employed by the Company after the
Plan Effective Date, an employee who would have been classified as a “Tier 1 or
Tier 2 Participant” under the Key Employee Retention Plan, as determined by the
Committee, in its sole discretion.

 

2.20        “Non-Employee Director” means a director
of the Company who is not an active employee of the Company or an Affiliate.

 

2.21        “Non-Qualified Stock Option” means any
Stock Option awarded under this Plan that is not an Incentive Stock Option.

 

2.22        “Parent” means any parent corporation of
the Company within the meaning of Section 424(e) of the Code.

 

2.23        “Participant” means any (a) Eligible
Employee, (b) prospective employee, consultant or non-employee director, (c)
Consultant, or (d) Non-Employee Director who is selected by the Committee to
participate in the Plan.

 

(1)  The value is subject to
adjustment to the extent the total number of outstanding shares changes from
16,500,000.

 

4

 

2.24        “Person” means any individual,
corporation, partnership, limited liability company, firm, joint venture,
association, joint-stock company, trust, incorporated organization,
governmental or regulatory or other entity.

 

2.25        “Plan” means this Superior Essex Inc. 2003
Stock Incentive Plan, as amended from time to time.

 

2.26        “Plan Effective Date” shall mean the
date a confirmed plan of reorganization for Superior TeleCom Inc. becomes
effective.

 

2.27        “Restricted Stock” shall mean an award
of shares of Common Stock under this Plan that is subject to restrictions under
Article VII.

 

2.28        “Restriction Period” shall have the
meaning set forth in Section 7.1 with respect to Restricted Stock for
Participants.

 

2.29        “Retirement” means a Participant’s
voluntary Termination of Employment or Consultancy other than for Cause at or
after age sixty-five (65) or such earlier date after age fifty-five (55) as may
be approved by the Committee with regard to such Participant.  With respect to a Participant’s Termination
of Directorship, Retirement means the failure to stand for reelection or the
failure to be reelected on or after a Participant has attained age sixty-five
(65).

 

2.30        “Rule 16b-3” means Rule 16b-3 under
Section 16(b) of the Exchange Act as then in effect or any successor provision.

 

2.31        “Securities Act” means the Securities
Act of 1933, as amended and all rules and regulations promulgated
thereunder.  Any reference to any
section of the Securities Act shall also be a reference to any successor provision.

 

2.32        “Stock Option” or “Option” means any
option to purchase shares of Common Stock granted to Eligible Employees,
Non-Employee Directors or Consultants under Article VI.

 

2.33        “Subsidiary” means any subsidiary
corporation of the Company within the meaning of Section 424(f) of the Code.

 

2.34        “Ten Percent Stockholder” means a person
owning stock possessing more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company, its Subsidiaries or its
Parent.

 

2.35        “Termination” means a Termination of
Consultancy, Termination of Directorship or Termination of Employment, as
applicable.

 

2.36        “Termination of Consultancy” means:  (a) that the Consultant is no longer acting
as a consultant to the Company or an Affiliate; or (b) when an entity which is
retaining a Participant as a Consultant ceases to be an Affiliate

 

5

 

unless the Participant otherwise is, or
thereupon becomes, a Consultant to the Company or another Affiliate at the time
the entity ceases to be an Affiliate. 
In the event that a Consultant becomes an Eligible Employee or
Non-Employee Director upon the termination of his or her consultancy, unless
otherwise determined by the Committee, in its sole discretion, no Termination
of Consultancy shall be deemed to occur until such time as such Consultant is
no longer a Consultant, an Eligible Employee or Non-Employee Director.  Notwithstanding the foregoing, the Committee
may otherwise define Termination of Consultancy in the Award agreement or, if
no rights of a Participant are reduced, may otherwise define Termination of
Consultancy thereafter.

 

2.37        “Termination of Directorship” means that
the Non-Employee Director has ceased to be a director of the Company; provided,
however, that in the event that a Non-Employee Director becomes an Eligible
Employee or a Consultant upon the termination of his or her directorship,
unless otherwise determined by the Committee in its sole discretion, no
Termination of Directorship shall be deemed to occur until such time as the
Non-Employee Director is no longer a Non-Employee Director, Consultant or
Eligible Employee.

 

2.38        “Termination of Employment” means:
(a) a termination of employment (for reasons other than a military or
personal leave of absence granted by the Company) of a Participant from the
Company and its Affiliates; or (b) when an entity which is employing a
Participant ceases to be an Affiliate, unless the Participant otherwise is, or
thereupon becomes, employed by the Company or another Affiliate at the time the
entity ceases to be an Affiliate.  In
the event that an Eligible Employee becomes a Consultant or a Non-Employee
Director upon the termination of his or her employment, unless otherwise
determined by the Committee, in its sole discretion, no Termination of
Employment shall be deemed to occur until such time as such Eligible Employee
is no longer an Eligible Employee, a Consultant or a Non-Employee
Director.  Notwithstanding the
foregoing, the Committee may otherwise define Termination of Employment in the
Award agreement or, if no rights of a Participant are reduced, may otherwise
define Termination of Employment thereafter.

 

2.39        “Transfer” means:  (a) when used as a noun, any direct or
indirect transfer, sale, assignment, pledge, hypothecation, encumbrance or
other disposition (including the issuance of equity in a Person), whether for
value or no value and whether voluntary or involuntary (including by operation
of law), and (b) when used as a verb, to directly or indirectly transfer, sell,
assign, pledge, encumber, charge, hypothecate or otherwise dispose of
(including the issuance of equity in a Person) whether for value or for no
value and whether voluntarily or involuntarily (including by operation of law).  “Transferred” and “Transferable” shall have
a correlative meaning.

 

6

 

ARTICLE
III

 

ADMINISTRATION

 

3.1          The Committee.  The Plan shall be administered and
interpreted by the Committee.

 

3.2          Grants of Awards.  The Committee shall have full authority to
grant Awards to Participants pursuant to the terms of this Plan.  All Awards shall be granted by, confirmed
by, and subject to the terms of, a written agreement executed by the Company
and the Participant.  In particular, but
without limitation, the Committee shall have the authority:

 

(a)          to select the Participants to whom
Awards may from time to time be granted hereunder;

 

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

 

(c)          to determine, in accordance with the
terms of this Plan, the number of shares of Common Stock to be covered by each
Award granted hereunder;

 

(d)          to determine the terms and conditions,
not inconsistent with the terms of this Plan, of any Award granted hereunder
(including, but not limited to, the exercise or purchase price (if any), any
restriction or limitation, any vesting schedule or acceleration thereof and any
forfeiture restrictions or waiver thereof, regarding any Award and the shares
of Common Stock relating thereto, based on such factors, if any, as the
Committee shall determine, in its sole discretion);

 

(e)          to determine whether and under what
circumstances a Stock Option may be settled in cash and/or Common Stock;

 

(f)           to the extent permitted by law, to
determine whether, to what extent and under what circumstances to provide loans
(which may be on a recourse basis and shall bear interest at the rate the
Committee shall provide) to Participants in order to exercise Stock Options or
to purchase Awards under this Plan (including shares of Common Stock);

 

(g)          to determine whether a Stock Option is
an Incentive Stock Option or Non-Qualified Stock Option;

 

(h)          to determine whether to require an
Eligible Employee, Non-Employee Director or Consultant, as a condition of the
granting of any Award, not to sell or otherwise dispose of shares of Common
Stock acquired pursuant to 

 

7

 

the exercise of an Award for a period of time
as determined by the Committee, in its sole discretion, following the date of
the acquisition of such shares of Common Stock;

 

(i)           to modify, extend or renew an Option,
subject to Article X herein, provided, however, solely to the extent
stockholder approval is required by applicable stock exchange rules, the
Committee may not, without stockholder approval, either (1) reduce the exercise
price of an outstanding Option or (2) simultaneously cancel Options for which
the exercise price exceeds the then current Fair Market Value of the underlying
Common Stock and grant a new Option with an exercise price equal to or less
than the then current Fair Market Value of the underlying Common Stock; and

 

(j)           to offer to buy out an Award
previously granted, based on such terms and conditions as the Committee shall
establish and communicate to the Participant at the time such offer is made.

 

3.3          Guidelines.  Subject to Article X hereof, the Committee
shall have the authority to adopt, alter and repeal such administrative rules,
guidelines and practices governing this Plan, make any other determinations
that it deems necessary or desirable for the administration of the Plan and
perform all acts, including the delegation of its administrative
responsibilities, as it shall, from time to time, deem advisable; to construe
and interpret the terms and provisions of this Plan and any Award issued under
this Plan (and any agreements relating thereto); and to otherwise supervise the
administration of this Plan.  The
Committee may correct any defect, supply any omission or reconcile any
inconsistency in this Plan or in any agreement relating thereto in the manner
and to the extent it shall deem necessary to effectuate the purpose and intent
of this Plan.  The Committee may adopt
special guidelines and provisions for persons who are residing in or employed
in, or subject to, the taxes of, any domestic or foreign jurisdictions to
comply with applicable tax and securities laws and may impose any limitations
and restrictions that it deems necessary to comply with the applicable tax and
securities laws of such domestic or foreign jurisdictions.  To the extent applicable, this Plan is
intended to comply with the applicable requirements of Rule 16b-3 and the
applicable provisions of Section 162(m) of the Code and shall be limited,
construed and interpreted in a manner so as to comply therewith.

 

3.4          Decisions Final.  Any decision, interpretation or other action
made or taken in good faith by or at the direction of the Company, the Board or
the Committee (or any of its members) arising out of or in connection with this
Plan shall be within the absolute discretion of all and each of them, as the
case may be, and shall be final, binding and conclusive on all parties
concerned, including, but not limited to, the Company, all employees, Participants
and their respective heirs, executors, administrators, successors and assigns.

 

8

 

3.5          Procedures.  If the Committee is appointed, the Board
shall designate one of the members of the Committee as chairman and the
Committee shall hold meetings, subject to the By-Laws of the Company, at such
times and places as it shall deem advisable, including, without limitation, by
telephone conference or by written consent to the extent permitted by applicable
law.  A majority of the Committee
members shall constitute a quorum.  All
determinations of the Committee shall be made by a majority of its members.  Any decision or determination reduced to
writing and signed by all the Committee members in accordance with the By-Laws
of the Company, shall be fully as effective as if it had been made by a vote at
a meeting duly called and held.  The
Committee shall keep minutes of its meetings and shall make such rules and
regulations for the conduct of its business as it shall deem advisable.

 

3.6          Designation of
Consultants/Liability.  (a) The
Committee may designate employees of the Company and professional advisors to
assist the Committee in the administration of this Plan and may grant authority
to officers to execute agreements or other documents on behalf of the
Committee.  The Committee may employ
such legal counsel, consultants and agents as it may deem desirable for the
administration of this Plan and may rely upon any opinion received from any
such counsel or consultant and any computation received from any such
consultant or agent.  Expenses incurred
by the Committee or the Board in the engagement of any such counsel, consultant
or agent shall be paid by the Company.

 

(b)          The Committee, its members and any
person designated pursuant to subsection (a) above shall not be liable for any
action or determination made in good faith with respect to this Plan.  To the maximum extent permitted by
applicable law, no officer of the Company or member or former member of the Committee
or of the Board shall be liable for any action or determination made in good
faith with respect to this Plan or any Award granted under it.

 

3.7          Indemnification.  To the maximum extent permitted by
applicable law and the Certificate of Incorporation and By-Laws of the Company
and to the extent not covered by insurance directly insuring such person, each
officer and member or former member of the Committee or the Board shall be
indemnified and held harmless by the Company against any cost or expense
(including reasonable fees of counsel reasonably acceptable to the Committee)
or liability (including any sum paid in settlement of a claim with the approval
of the Committee), and advanced amounts necessary to pay the foregoing at the
earliest time and to the fullest extent permitted, arising out of any act or
omission to act in connection with the administration of this Plan, except to
the extent arising out of such officer’s, member’s or former member’s own fraud
or bad faith.  Such indemnification shall
be in addition to any rights of indemnification the employees, officers,
directors or members or former officers, directors or members may have under
applicable law or under the Certificate of Incorporation or By-Laws of the
Company or any Affiliate.  Notwithstanding
anything else 

 

9

 

herein, this indemnification will not apply
to the actions or determinations made by an individual with regard to Awards
granted to him or her under this Plan.

 

ARTICLE IV

 

SHARE AND OTHER LIMITATIONS

 

4.1          Shares.

 

(a)          General Limitation.  The aggregate number of shares of Common
Stock which may be issued or used for reference purposes under this Plan or
with respect to which Awards may be granted under this Plan shall not exceed
1,833,333(2) (subject to any increase or decrease pursuant to Section 4.2), of
which up to 1,650,000 may be issued to Eligible Employees, Consultants and
prospective employees and consultants and up to 183,333 may be issued to
Non-Employee Directors and prospective non-employee directors, which in any
case may be either authorized and unissued Common Stock or Common Stock held in
or acquired for the treasury of the Company or both.  If any Stock Option granted under this Plan expires, terminates
or is canceled for any reason without having been exercised in full or the
Company repurchases any Stock Option, the number of shares of Common Stock
underlying such unexercised or repurchased Stock Option shall again be
available for the purposes of Stock Options under this Plan.  If any shares of Restricted Stock awarded
under this Plan to a Participant are forfeited for any reason, the number of
forfeited shares of Restricted Stock shall again be available for the purposes
of Awards under the Plan.  In addition,
in determining the number of shares of Common Stock available for Non-Qualified
Stock Options, if Common Stock has been delivered or exchanged by a Participant
as full or partial payment to the Company for payment of the exercise price, or
for payment of withholding taxes, or if the number shares of Common Stock
otherwise deliverable has been reduced for payment of the exercise price or for
payment of withholding taxes, the number of shares of Common Stock exchanged as
payment in connection with the exercise or for withholding or reduced shall
again be available for purposes of Non-Qualified Stock Options under this Plan.

 

(b)          Individual Participant Limitation.  The maximum number of shares of Common Stock
subject to any Option which may be granted under this Plan during any fiscal
year of the Company to each Eligible Employee shall be 600,000 shares (subject
to any increase or decrease pursuant to Section 4.2).  To the extent that shares of Common Stock for which Options are
permitted to be granted to a Participant pursuant to this Section 4.1(b) during
a fiscal year of the Company are not covered by an Option in the Company’s
fiscal year, such shares

 

(2)  May need to be adjusted if the total number
of outstanding shares is adjusted (the total number of shares available under
the Plan should be 10% of the outstanding shares on a fully diluted basis).

 

10

 

of Common Stock shall be available for grant
or issuance to the Participant in any subsequent fiscal year during the term of
this Plan.

 

4.2          Changes.

 

(a)          The existence of this Plan and the
Awards granted hereunder shall not affect in any way the right or power of the
Board or the stockholders of the Company to make or authorize (i) any
adjustment, recapitalization, reorganization or other change in the Company’s
capital structure or its business, (ii) any merger or consolidation of the
Company or any Affiliate, (iii) any issuance of bonds, debentures, preferred or
prior preference stock ahead of or affecting the Common Stock, (iv) the
dissolution or liquidation of the Company or any Affiliate, (v) any sale or
transfer of all or part of the assets or business of the Company or any
Affiliate or (vi) any other corporate act or proceeding.

 

(b)          In the event of any such change in the
capital structure or business of the Company after the Effective Date by reason
of any stock split, reverse stock split, stock dividend, combination or
reclassification of shares, recapitalization, merger, consolidation, spin-off,
reorganization, partial or complete liquidation, issuance of rights or warrants
to purchase any Common Stock or securities convertible into Common Stock, any
sale or transfer of all or part of the Company’s assets or business, or any
other corporate transaction or event having an effect similar to any of the
foregoing and effected without receipt of consideration by the Company, the
Committee may, as it determines in good faith, make such substitution or
adjustment, if any, as it deems to be equitable, as to: (i) the aggregate
number and kind of shares which thereafter may be issued under this Plan; (ii)
the number and kind of shares or other property (including cash) to be issued
upon exercise of an outstanding Stock Option or vesting of Restricted Stock granted
under this Plan; (iii) the exercise or purchase price of any Award; (iv) the
maximum number of shares of Common Stock for which Awards (including limits
established for Options) may be granted during a fiscal year to any
Participant; and/or (v) any other terms of an Award that are necessary to
reflect any of the aforementioned transactions.  In connection with any event described in this paragraph, the
Committee may provide, in its sole discretion, for the cancellation of any
outstanding Awards and payment in cash or other property in exchange
therefor.  Except as provided in this
Section 4.2, a Participant shall have no rights by reason of any issuance by
the Company of any class or securities convertible into stock of any class, any
subdivision or consolidation of shares of stock of any class, the payment of
any stock dividend, any other increase or decrease in the number of shares of
stock of any class, any sale or transfer of all or part of the Company’s assets
or business or any other change affecting the Company’s capital structure or
business.

 

(c)          Fractional shares of Common Stock
resulting from any adjustment in Awards pursuant to Section 4.2(a) or (b) shall
be aggregated until, and 

 

11

 

eliminated at, the time of exercise by
rounding-down for fractions less than one-half and rounding-up for fractions
equal to or greater than one-half.  No
fractional shares of Common Stock shall be issued under the Plan.  Notice of any adjustment shall be given by
the Committee to each Participant whose Award has been adjusted and such
adjustment (whether or not such notice is given) shall be effective and binding
for all purposes of this Plan.

 

4.3          Minimum Purchase Price.  Notwithstanding any provision of this Plan to
the contrary, if authorized but previously unissued shares of Common Stock are
issued under this Plan, such shares shall not be issued for a consideration
which is less than as permitted under applicable law.

 

ARTICLE V

 

ELIGIBILITY

 

5.1          General Eligibility.  All Participants are eligible to be granted
Non-Qualified Stock Options and Restricted Stock.

 

5.2          Incentive Stock Options.  All Eligible Employees of the Company, its
Subsidiaries and its Parent (if any) are eligible to be granted Incentive Stock
Options under this Plan.

 

5.3          General Requirement.  The grant of Awards to a prospective
employee, director or consultant are conditioned upon such individual actually
becoming an Eligible Employee, Non-Employee Director or Consultant.

 

ARTICLE VI

 

STOCK OPTIONS

 

6.1          Stock Options.  Each Stock Option granted hereunder shall be
one of two types: (a) an Incentive Stock Option intended to satisfy the
requirements of Section 422 of the Code; or (b) a Non-Qualified Stock Option.

 

6.2          Grants.   Subject to the provisions of Article V, the
Committee shall have the authority to grant to any Eligible Employee one or
more Incentive Stock Options, Non-Qualified Stock Options or both types of
Stock Options.  All Options granted under
the Plan are intended to be Non-Qualified Stock Options, unless the applicable
Award agreement expressly states that the Option is intended to be an Incentive
Stock Option.  To the extent that any
Stock Option does not qualify as an Incentive Stock Option (whether because of
its provisions or the time or manner of its exercise or otherwise), such Stock
Option or the portion thereof which does not qualify, shall constitute a
separate Non-Qualified Stock Option; provided that such Option (or portions
thereof) otherwise complies with the Plan’s requirements relating to
Non-Qualified Stock Options.  The 

 

12

 

Committee shall have the authority to grant
any Consultant or Non-Employee Director one or more Non-Qualified Stock
Options.  Notwithstanding any other
provision of this Plan to the contrary or any provision in an agreement
evidencing the grant of a Stock Option to the contrary, any Stock Option
granted to an Eligible Employee of an Affiliate (other than an Affiliate which
is a Parent or a Subsidiary) shall be a Non-Qualified Stock Option.

 

6.3          Terms of Stock Options.  Stock Options granted under this Plan shall
be subject to the following terms and conditions, and shall be in such form and
contain such additional terms and conditions, not inconsistent with the terms
of this Plan, as the Committee shall determine:

 

(a)          Exercise Price.  The
exercise price per share of Common Stock subject to a Stock Option shall be
determined by the Committee at the time of grant; provided that the per share
exercise price of an Incentive Stock Option shall not be less than one hundred
percent (100%) of the Fair Market Value of the share of Common Stock at the
time of grant; and provided, further, that if an Incentive Stock Option is
granted to a Ten Percent Stockholder, the exercise price per share shall be no
less than one hundred ten percent (110%) of the Fair Market Value of the Common
Stock.  Notwithstanding the foregoing,
any initial grant of Non-Qualified Stock Options that is made to members of
Management after the Plan Effective Date shall have an exercise price that is
not greater than the Initial Fair Market Value; provided that such grant is
made no later than six (6) months after the Plan Effective Date.

 

(b)          Stock Option Term. 
The term of each Stock Option shall be fixed by the Committee; provided,
however, that no Stock Option shall be exercisable more than ten (10) years
after the date such Stock Option is granted; and further provided that the term
of an Incentive Stock Option granted to a Ten Percent Stockholder shall not
exceed five (5) years.

 

(c)          Exercisability. 
Stock Options shall be exercisable at such time or times and subject to
such terms and conditions as shall be determined by the Committee, provided
that after the grant date a Participant’s rights shall not be adversely
impaired without the Participant’s consent. 
If the Committee provides, in its discretion, that any Stock Option is
exercisable subject to certain limitations (including, without limitation, that
such Stock Option is exercisable only in installments or within certain time
periods), the Committee may waive such limitations on the exercisability at any
time at or after grant in whole or in part (including, without limitation,
waiver of the installment exercise provisions or acceleration of the time at
which such Stock Option may be exercised), based on such factors, if any, as
the Committee shall determine, in its sole discretion.

 

(d)          Method of Exercise. 
Subject to whatever installment exercise and waiting period provisions
apply under subsection (c) above, to the extent vested 

 

13

 

and exercisable, a Stock Option may be
exercised in whole or in part at any time and from time to time during the term
of such Stock Option by giving written notice of exercise to the Committee
specifying the number of shares to be acquired.  Such notice shall be accompanied by payment to the Company, as
designated by the Committee, in full of the exercise price as follows: (i) in
cash or by check, bank draft or money order payable to the order of the
Company; (ii) to the extent permitted by applicable law, if the Common Stock is
traded on a national securities exchange, The Nasdaq Stock Market, Inc. or
quoted on a national quotation system sponsored by the National Association of
Securities Dealers, through a procedure whereby the Participant delivers
irrevocable instructions to a broker reasonably acceptable to the Committee to
sell shares obtained upon the exercise of the Option and to deliver promptly to
the Company an amount out of the proceeds of such sale equal to the aggregate
exercise price for the shares being purchased; or (iii) on such other terms and
conditions as may be acceptable to the Committee (including, without
limitation, the payment in full or in part in Common Stock owned by the
Participant for a period of at least six (6) months or such other period
necessary to avoid a charge, for accounting purposes, against the Company’s
earnings as reported in the Company’s financial statements (and for which the
Participant has good title free and clear of any liens and encumbrances) based
on the Fair Market Value of the Common Stock on the exercise date).  No shares of Common Stock shall be issued
until payment therefor, as provided herein, has been made or provided for.  No Participant shall have any rights to
dividends or other rights of a stockholder with respect to shares of Common
Stock subject to an Option until the Participant has given written notice of
exercise of the Option, paid in full for such shares and, if applicable, has
satisfied any other conditions consistent with the terms of the Plan as set
forth in the applicable Award agreement or required by applicable law.

 

(e)          Incentive Stock Option Limitations.  To the extent that the aggregate Fair Market
Value (determined as of the time of grant) of the Common Stock with respect to
which Incentive Stock Options are exercisable for the first time by an Eligible
Employee during any calendar year under this Plan and/or any other plans of the
Company, any Subsidiary or any Parent exceeds $100,000, such Options shall be
treated as Non-Qualified Stock Options; provided that such Options (or portions
thereof) otherwise comply with the Plan’s requirements relating to
Non-Qualified Stock Options.  In
addition, if an Eligible Employee does not remain employed by the Company, any
Subsidiary or any Parent at all times from the time an Incentive Stock Option
is granted until three (3) months prior to the date of exercise thereof (or
such other period as required by applicable law), such Stock Option shall be
treated as a Non-Qualified Stock Option; provided that such Options (or
portions thereof) otherwise comply with the Plan’s requirements relating to
Non-Qualified Stock Options.  Any
Participant who disposes of shares of Common Stock acquired upon the exercise
of an Incentive Stock Option either (i) within two years after the date of
grant of such Incentive Stock Option or (ii) within one year after the transfer
of such shares of Common 

 

14

 

Stock to the Participant, shall notify the
Company of such disposition and of the amount realized upon such
disposition.  Should any provision of
this Plan not be necessary in order for the Stock Options to qualify as
Incentive Stock Options, or should any additional provisions be required, the
Committee may amend this Plan accordingly, without the necessity of obtaining
the approval of the stockholders of the Company.  In no event shall any member of the Committee, the Company or any
of its Affiliates (or their respective employees, officers or directors) have
any liability to any Participant (or any other person) due to the failure of an
Option to qualify as an Incentive Stock Option.

 

(f)           Deferred Delivery of Common Stock.  The Committee may in its discretion permit Participants to defer
delivery of Common Stock acquired pursuant to a Participant’s exercise of an
Option in accordance with the terms and conditions established by the Committee.

 

(g)          Early Exercise.  The
Committee may provide that a Stock Option include a provision whereby the
Participant may elect at any time before the Participant’s Termination to
exercise the Stock Option as to any part or all of the shares of Common Stock
subject to the Stock Option prior to the full vesting of the Stock Option and
such shares shall be treated as Common Stock subject to a vesting
schedule.  Any unvested shares of Common
Stock so purchased may be subject to a repurchase option in favor of the
Company or to any other restriction the Committee determines to be appropriate.

 

(h)          Other Terms and Conditions. 
Stock Options may contain such other provisions, which shall not be
inconsistent with any of the terms of this Plan, as the Committee shall deem
appropriate including, without limitation, permitting “reloads” such that the
same number of Stock Options are granted as the number of Stock Options
exercised, shares used to pay for the exercise price of Stock Options or shares
used to pay withholding taxes (“Reloads”). 
With respect to Reloads, the exercise price per share of the new Stock
Option shall be the Fair Market Value of a share on the date of the “reload”
and the term of the Reloads shall be the same as the remaining term of the
Stock Options that are exercised, if applicable, or such other exercise price
and term as determined by the Committee.

 

ARTICLE
VII

 

RESTRICTED STOCK AWARDS

 

7.1          Awards
of Restricted Stock. 
Shares of Restricted Stock may be issued to Participants either alone or
in addition to other Awards granted under the Plan.  The Committee shall determine the eligible persons to whom, and
the time or times at which, grants of Restricted Stock will be made, the number
of 

 

15

 

shares to be awarded, the purchase price (if
any) to be paid by the Participant (subject to Section 7.2), the time or times
at which such Awards may be subject to forfeiture, the vesting schedule and
rights to acceleration thereof, and all other terms and conditions of the
Awards.  The Committee may condition the
grant of Restricted Stock upon the attainment of specified performance targets
or such other factors as the Committee may determine, in its sole
discretion.  The Participant shall not
be permitted to Transfer shares of Restricted Stock awarded under this Plan
during a period set by the Committee (the “Restriction Period”) commencing with
the date of such Award, as set forth in the applicable Restricted Stock
agreement.

 

7.2          Awards
and Certificates.  A
Participant selected to receive Restricted Stock shall not have any rights with
respect to such Award, unless and until such Participant has delivered a fully
executed copy of the Restricted Stock agreement evidencing the Award to the
Company and has otherwise complied with the applicable terms and conditions of
such Award.  Further, such Award shall
be subject to the following conditions:

 

(a)          Purchase Price.  Subject to Section 4.3 hereof, the purchase
price of Restricted Stock shall be determined by the Committee.

 

(b)          Acceptance.  Awards of Restricted Stock must be accepted
within a period of ninety (90) days (or such shorter period as the Committee
may specify at grant) after the grant date, by executing a Restricted Stock
agreement and by paying whatever price (if any) the Committee has designated
thereunder.

 

(c)          Legend.  Each Participant receiving Restricted Stock
shall be issued a stock certificate in respect of such shares of Restricted
Stock, unless the Committee elects to use another system, such as book entries
by the transfer agent, as evidencing ownership of Restricted Stock.  Such certificate shall be registered in the
name of such Participant, and shall bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to such Award, substantially in
the following form:

 

“The
anticipation, alienation, attachment, sale, transfer, assignment, pledge,
encumbrance or charge of the shares of stock represented hereby are subject to
the terms and conditions (including forfeiture) of the Superior Essex Inc. (the
“Company”) 2003 Stock Incentive Plan, and an Agreement entered into between the
registered owner and the Company dated
                          .  Copies of such Plan and Agreement are on
file at the principal office of the Company.”

 

(d)          Custody.  The Committee may require that any stock
certificates evidencing such shares be held in custody by the Company until the
restrictions 

 

16

 

thereon shall have lapsed, and that, as a
condition of any Restricted Stock Award, the Participant shall have delivered a
duly signed stock power, endorsed in blank, relating to the Common Stock
covered by such Award.

 

(e)          Rights as Stockholder.  Except as provided in this subsection (e)
and subsection 7.2(d) above and as otherwise determined by the Committee, the
Participant shall have, with respect to the shares of Restricted Stock, all of
the rights of a holder of shares of Common Stock of the Company including,
without limitation, the right to receive any dividends, the right to vote such
shares and, subject to and conditioned upon the full vesting of shares of
Restricted Stock, the right to tender such shares.  Notwithstanding the foregoing, the payment of dividends shall be
deferred until, and conditioned upon, the expiration of the applicable
Restriction Period, unless the Committee, in its sole discretion, specifies
otherwise at the time of the Award.

 

(f)           Lapse of Restrictions.  If and when the Restriction Period expires
without a prior forfeiture of the Restricted Stock subject to such Restriction
Period, the certificates for such shares shall be delivered to the
Participant.  All legends shall be
removed from said certificates at the time of delivery to the Participant except
as otherwise required by applicable law.

 

ARTICLE
VIII

 

NON-TRANSFERABILITY AND
TERMINATION OF

EMPLOYMENT/CONSULTANCY/DIRECTORSHIP

 

8.1          Non-Transferability

 

(a)          Except as otherwise specifically
provided herein, no Award shall be Transferable by the Participant otherwise
than by will or by the laws of descent and distribution.  All Stock Options shall be exercisable,
during the Participant’s lifetime, only by the Participant.  Shares of Restricted Stock granted pursuant
to Article VII may not be Transferred prior to the date on which shares are
issued, or, if later, the date on which any applicable restriction or
performance period lapses.  Any attempt
to Transfer any Award shall be void and immediately cancelled, and no such
Award shall in any manner be liable for or subject to the debts, contracts,
liabilities, engagements or torts of any person who shall be entitled to such
Award, nor shall it be subject to attachment or legal process for or against
such person.

 

(b)          Notwithstanding the foregoing, the
Committee may determine at the time of grant or thereafter that a Non-Qualified
Stock Option that is otherwise not Transferable pursuant to this Section 8.1 is
Transferable to a Family Member in whole or in part and in such circumstances,
and under such conditions, as 

 

17

 

specified by the Committee.  A Non-Qualified Stock Option that is
Transferred to a Family Member pursuant to the preceding sentence (i) may not
be subsequently Transferred otherwise than by will or by the laws of descent
and distribution and (ii) remains subject to the terms of this Plan and the
Stock Option agreement.  Any shares of
Common Stock acquired upon the exercise of a Stock Option by a permissible
transferee of a Stock Option or a permissible transferee pursuant to a Transfer
after the exercise of the Stock Option shall be subject to the terms of this
Plan and the Stock Option agreement.

 

(c)          Notwithstanding the foregoing, the
Committee may determine at the time of grant or thereafter that an Incentive
Stock Option that is otherwise not Transferable pursuant to this Section 8.1 is
Transferable to the extent permitted in proposed Treasury Regulation Section
1.421-1(b)(2), which were issued on June 6, 2003.

 

(d)          Unless otherwise determined at grant
by the Committee, shares of Common Stock acquired through an Award are
Transferable.

 

8.2          Termination.  The following rules apply with regard to the
Termination of a Participant.

 

Unless otherwise determined by the Committee
at grant or, if no rights of the Participant are reduced, thereafter:

 

(a)          Termination by Reason of Death, Disability or Retirement.  If a Participant’s Termination is by reason
of the Participant’s death, as a result of the Participant’s Disability or due
to the Participant’s Retirement, all Stock Options that are held by such
Participant that are vested and exercisable at the time of the Participant’s
Termination may be exercised by the Participant (or, in the case of death, by
the legal representative of the Participant’s estate) at any time within a
period of one (1) year from the date of such Termination, but in no event
beyond the expiration of the stated term of such Stock Options; provided,
however, that, if the Participant dies within such exercise period, any
unexercised Stock Options held by such Participant shall thereafter be
exercisable, to the extent to which it was exercisable at the time of death,
for a period of one (1) year from the date of such death, but in no event
beyond the expiration of the stated term of such Stock Options.

 

(b)          Involuntary Termination Without Cause. 
If a Participant’s Termination is by involuntary termination
without Cause, all Stock Options that are held by such Participant that are
vested and exercisable at the time of the Participant’s Termination may be
exercised by the Participant at any time within a period of ninety (90) days
from the date of such Termination, but in no event beyond the expiration of the
stated term of such Stock Options.

 

18

 

(c)          Voluntary Termination.  If
a Participant’s Termination is voluntary (other than a voluntary termination
described in Section 8.2(d)(y) below), all Stock Options that are held by such
Participant that are vested and exercisable at the time of the Participant’s
Termination may be exercised by the Participant at any time within a period of
thirty (30) days from the date of such Termination, but in no event beyond the
expiration of the stated terms of such Stock Options.

 

(d)          Termination for Cause. 
If a Participant’s Termination (x) is for Cause or (y) is a voluntary
Termination after the occurrence of an event that would be grounds for a
Termination for Cause, all Stock Options, whether vested or not vested, that
are held by such Participant shall thereupon terminate and expire as of the
date of such Termination.

 

(e)          Unvested Stock Options. 
Stock Options that are not vested as of the date of a Participant’s
Termination for any reason shall terminate and expire as of the date of such
Termination.

 

(f)           Termination
of Employment for Restricted Stock. 
Subject to the applicable provisions of the Restricted Stock agreement
and this Plan, upon a Participant’s Termination of Employment for any reason
during the relevant Restriction Period, all Restricted Stock still subject to
restriction will vest or be forfeited in accordance with the terms and
conditions established by the Committee at grant or thereafter.

 

ARTICLE IX

 

CHANGE IN CONTROL PROVISIONS

 

9.1          Benefits.  Except as otherwise provided by the
Committee in an Award agreement, in the event of a Change in Control of the
Company after the Effective Date, the Committee may, but shall not be obligated
to:

 

(a)          accelerate, vest or cause the
restrictions to lapse with respect to, all or any portion of an Award; or

 

(b)          cancel Awards for fair value (as
determined in good faith by the Committee) which, in the case of Options, may
equal the excess, if any, of the value of the consideration to be paid in the
Change in Control transaction to holders of the same number of shares of Common
Stock subject to such Options (or, if no consideration is paid in any such
transaction, the Fair Market Value of the shares of Common Stock subject to
such Options) over the aggregate exercise price of such Options; or

 

19

 

(c)          provide for the issuance of substitute
Awards that will substantially preserve the otherwise applicable terms of any
affected Awards previously granted hereunder as determined by the Committee in
its sole discretion; or

 

(d)          provide for a period of at least 30
days prior to the Change in Control, all Options shall be exercisable as to all
shares of Common Stock subject thereto and that upon the occurrence of the
Change in Control, such Options shall terminate and be of no further force and effect.

 

9.2          Change in Control Defined.  Unless otherwise determined by the Committee
in the applicable Award agreement, a “Change in Control” shall be deemed to
have occurred after the Effective Date:

 

(a)          upon any “person” as such term is used
in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, any
trustee or other fiduciary holding securities under any employee benefit plan
of the Company, or any company owned, directly or indirectly, by all of the
stockholders of the Company in substantially the same proportions as their
ownership of Common Stock of the Company), becoming the owner (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Company representing more than fifty percent (50%) of the combined voting
power of the Company’s then outstanding securities (including, without
limitation, securities owned at the time of any increase in ownership);

 

(b)          during any period of two consecutive
years, individuals who at the beginning of such period constitute the Board,
and any new director (other than a director designated by a person who has
entered into an agreement with the Company to effect a transaction described in
paragraph (a), (c), or (d) of this section) or a director whose initial assumption
of office occurs as a result of either an actual or threatened election contest
(as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents
by or on behalf of a person other than the Board whose election by the Board or
nomination for election by the Company’s stockholders was approved by a vote of
at least two-thirds of the directors then still in office who either were
directors at the beginning of the two-year period or whose election or
nomination for election was previously so approved, cease for any reason to
constitute at least a majority of the Board;

 

(c)          upon the merger or consolidation of
the Company with any other corporation, other than a merger or consolidation
which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving
entity) more than fifty percent (50%) of the combined voting power of the
voting securities of the Company or such surviving entity 

 

20

 

outstanding immediately after such merger or
consolidation; provided, however, that a merger or consolidation effected to
implement a recapitalization of the Company (or similar transaction) in which
no person (other than those covered by the exceptions in (a) above) acquires
more than fifty percent (50%) of the combined voting power of the Company’s
then outstanding securities shall not constitute a Change in Control of the
Company;

 

(d)          upon the approval by the Company’s
stockholders of a plan of complete liquidation of the Company or an agreement
for the sale or disposition by the Company of all or substantially all of the
Company’s assets other than the sale of all or substantially all of the assets
of the Company to a person or persons who beneficially own, directly or
indirectly, more than fifty percent (50%) of the combined voting power of the
outstanding voting securities of the Company at the time of the sale; or

 

(e)          solely with respect to a Participant
primarily employed in the Company’s OEM Group or the Company’s Communications
Group, a Change in Control shall also mean: (i) the sale of all or
substantially all of the assets of the Company’s OEM Group or Communications
Group to an unrelated entity; (ii) the sale of all of the outstanding voting
securities of an entity holding all or substantially all of the assets of the
Company’s OEM Group (an “OEM Entity”) or Communications Group (a
“Communications Entity”) to an unrelated entity; or (iii) the merger or
consolidation of an OEM Entity or a Communications Entity into an unrelated
entity; provided, however, that no Change in Control shall be deemed to occur
if a Participant continues to be chiefly responsible for the assets and
business which comprised the Company’s OEM Group or Communications Group
immediately prior to the occurrence of an event that, but for this proviso,
would otherwise constitute a Change in Control.  For purposes of this subsection (e), an “unrelated entity” is an
entity (1) with respect to which more than fifty percent (50%) of such entity
is not owned, directly or indirectly, by the Company or any of its
majority-owned subsidiaries immediately prior to the time of the determination
of whether there has occurred a Change in Control; or (2) which is not an
employee benefit plan (or related trust) of the Company or any of its
majority-owned subsidiaries.

 

ARTICLE X

 

TERMINATION OR AMENDMENT OF PLAN

 

Notwithstanding
any other provision of this Plan, the Board or the Committee may at any time,
and from time to time, amend, in whole or in part, any or all of the provisions
of this Plan (including any amendment deemed necessary to ensure that the
Company may comply with any regulatory requirement referred to in Article XII),
or suspend or terminate it entirely, retroactively or otherwise; provided,
however, that no 

 

21

 

such amendment, suspension or termination shall be made, (a) without
the consent of a Participant, if such action would adversely impair any rights
of the Participant under any Award theretofore granted to such Participant
under the Plan or (b) without the approval of the stockholders of the Company,
if such action would be required under: (i) Section 162(m) of the Code, if
applicable; (ii) Section 422 of the Code with respect to Incentive Stock
Options; or (iii) applicable law or the rules of any exchange or system on
which the Company’s securities are listed or traded.

 

The Committee
may amend the terms of any Award theretofore granted, but, subject to Article
IV above or the requirements of applicable law or as otherwise specifically
provided herein, no such amendment or other action by the Committee shall
adversely impair the rights of any holder without the holder’s consent.

 

ARTICLE XI

 

UNFUNDED PLAN

 

11.1        This Plan is intended to constitute an
“unfunded” plan for incentive and deferred compensation.  With respect to any payments as to which a
Participant has a fixed and vested interest but which are not yet made to a
Participant by the Company, nothing contained herein shall give any such
Participant any rights that are greater than those of a general unsecured creditor
of the Company.

 

ARTICLE
XII

 

GENERAL PROVISIONS

 

12.1        Legend.  The Committee may require each person receiving shares pursuant
to an Award under this Plan to represent to and agree with the Company in
writing that the Participant is acquiring the shares without a view to
distribution thereof and such other securities law related representations as
the Committee shall request.  In
addition to any legend required by this Plan, the certificates for such shares
may include any legend which the Committee deems appropriate to reflect any
restrictions on Transfer.

 

All
certificates for shares of Common Stock delivered under this Plan shall be
subject to such stock transfer orders and other restrictions as the Committee
may deem advisable under the rules, regulations and other requirements of the
Securities and Exchange Commission, any stock exchange upon which the Common
Stock is then listed or any national securities association system upon whose
system the Common Stock is then quoted, any applicable Federal or state
securities law, and any applicable corporate law, and the Committee may cause a
legend or legends to be put on any such certificates to make appropriate
reference to such restrictions.

 

22

 

12.2        Other Plans.  Nothing contained in this Plan shall prevent
the Board from adopting other or additional compensation arrangements, subject
to stockholder approval if such approval is required; and such arrangements may
be either generally applicable or applicable only in specific cases.  In the event of any conflict between the
provisions of this Plan and any agreement between the Company and any employee
or Consultant, the provisions of the Plan shall govern.

 

12.3        No Right to
Employment/Directorship/Consultancy. 
Neither this Plan nor the grant of any Award hereunder shall give any
Participant any right with respect to continuance of employment, consultancy or
directorship by the Company or any Affiliate, nor shall there be a limitation
in any way on the right of the Company or any Affiliate by which a Participant
is employed or retained to terminate his or her employment, consultancy or
directorship at any time.

 

12.4        Withholding of Taxes.  The Company or an Affiliate shall have the
right to deduct from any payment to be made to a Participant, or to otherwise
require, prior to the issuance or delivery of any shares of Common Stock or the
payment of any cash hereunder, payment by the Participant of, any Federal,
state or local taxes required by law to be withheld.   Any statutorily required withholding obligation with regard to
any Eligible Employee may be satisfied, subject to the consent of the
Committee, by having shares of Common Stock withheld by the Company with a Fair
Market Value equal to the minimum statutory withholding rate from any shares
that would have otherwise been received by the Participant or by delivering
shares of Common Stock already owned.  
Any fraction of a share of Common Stock required to satisfy such tax
obligations shall be disregarded and the amount due shall be paid instead in
cash by the Participant.

 

12.5        Listing and Other Conditions.

 

(a)          As long as the Common Stock is listed
on a national securities exchange or system sponsored by a national securities
association, upon the issuance of any shares of Common Stock pursuant to an
Award the Company shall deliver to the Participant shares that are listed on
such national securities exchange or system sponsored by a national securities
association, as the case may be.  The
Company shall have no obligation to list such shares unless and until shares of
Common Stock are so listed.

 

(b)          If at any time counsel to the Company
shall be of the opinion that any sale or delivery of shares of Common Stock
pursuant to an Award is or may in the circumstances be unlawful or result in
the imposition of excise taxes on the Company under the statutes, rules or
regulations of any applicable jurisdiction, the Company shall have no
obligation to make such sale or delivery, or to make any application or to
effect or to maintain any qualification or registration under the Securities
Act or otherwise with respect to shares of Common Stock or 

 

23

 

Awards, and the right to exercise any Award
shall be suspended until, in the opinion of said counsel, such sale or delivery
shall be lawful and will not result in the imposition of excise taxes on the
Company.

 

(c)          Upon termination of any period of
suspension under this Section 12.5, an Award affected by such suspension
which shall not then have expired or terminated shall be reinstated as to all
shares available before such suspension and as to shares which would otherwise
have become available during the period of such suspension, but no such
suspension shall extend the term of any Award.

 

(d)          A Participant shall be required to
supply the Company with any certificates, representations and information that
the Company requests and otherwise cooperate with the Company in obtaining any
listing, registration, qualification, exemption, consent or approval the
Company deems necessary or appropriate.

 

12.6        Governing Law.  This Plan shall be governed and construed in
accordance with the laws of the State of Delaware (regardless of the law that
might otherwise govern under applicable Delaware principles of conflict of
laws).

 

12.7        Construction.  Wherever any words are used in this Plan in
the masculine gender they shall be construed as though they were also used in
the feminine gender in all cases where they would so apply, and wherever any
words are used herein in the singular form they shall be construed as though
they were also used in the plural form in all cases where they would so apply.

 

12.8        Other Benefits.  No Award under this Plan shall be deemed
compensation for purposes of computing benefits under any pension, retirement,
profit sharing, bonus, life insurance or other benefit plan of the Company or
any of its Affiliates nor affect any benefits under any other benefit plan now
or subsequently in effect under which the availability or amount of benefits is
related to the level of compensation, except to the extent any such plan
expressly recognizes any Award granted under the Plan as compensation.

 

12.9        Costs.  The Company shall bear all expenses included in administering
this Plan, including expenses of issuing Common Stock pursuant to any Awards
hereunder.

 

12.10      No Right to Same Benefits.  Except as otherwise provided in a written
agreement between the Participant and the Company, no Participant or other
Person shall have any claim to be granted any Award, and there is no obligation
of uniformity of treatment of Participants, or holders or beneficiaries of
Awards.  The provisions of Awards need
not be the same with respect to each 

 

24

 

Participant, and such Awards to individual
Participants need not be the same in subsequent years.

 

12.11      Death/Disability.  The Committee may in its discretion require
the transferee of a Participant to supply it with written notice of the Participant’s
death or Disability and to supply it with a copy of the will (in the case of
the Participant’s death) or such other evidence as the Committee deems
necessary to establish the validity of the transfer of an Award.  The Committee may also require that the
agreement of the transferee to be bound by all of the terms and conditions of
this Plan.

 

12.12      Section 16(b) of the Exchange Act.  To the extent applicable, all elections and
transactions under this Plan by persons subject to Section 16 of the Exchange
Act involving shares of Common Stock are intended to comply with any applicable
exemptive condition under Rule 16b-3. 
The Committee may establish and adopt written administrative guidelines,
designed to facilitate compliance with Section 16(b) of the Exchange Act, as it
may deem necessary or proper for the administration and operation of this Plan
and the transaction of business thereunder.

 

12.13      Severability of Provisions.  If any provision of this Plan shall be held
invalid or unenforceable, such invalidity or unenforceability shall not affect
any other provisions hereof, and this Plan shall be construed and enforced as
if such provisions had not been included.

 

12.14      Headings and Captions.  The headings and captions herein are
provided for reference and convenience only, shall not be considered part of
this Plan, and shall not be employed in the construction of this Plan.

 

12.15      Securities Act Compliance.  Except as the Company or Committee shall
otherwise determine, this Plan is intended to comply with Section 4(2) or Rule
701 of the Securities Act, and any provisions inconsistent with such Section or
Rule of the Securities Act shall be inoperative and shall not affect the
validity of the Plan.

 

12.16      Successors and Assigns.  The Plan shall be binding on all successors
and permitted assigns of a Participant, including, without limitation, the
estate of such Participant and the executor, administrator or trustee of such
estate.

 

12.17      Payment to Minors, Etc.  Any benefit payable to or for the benefit of
a minor, an incompetent person or other person incapable of receipt thereof
shall be deemed paid when paid to such person’s guardian or to the party
providing or reasonably appearing to provide for the care of such person, and
such payment shall fully discharge the Committee, the Board, the Company, its
Affiliates and their employees, agents and representatives with respect
thereto.

 

25

 

ARTICLE
XIII

 

EFFECTIVE DATE OF PLAN

 

13.1        The Plan shall become effective upon
adoption by the Board, subject to the approval of this Plan by the stockholders
of the Company in accordance with the laws of the state of Delaware, pursuant
to Section 162(m) of the Code, if applicable, and the requirements of any
applicable national securities exchange or automated quotation system or such
later date as provided in the adopting resolution, provided, that, the
stockholders’ approval of the Superior TeleCom Inc. Plan of Reorganization
shall be deemed to satisfy the stockholder approval requirements set forth
herein.

 

ARTICLE
XIV

 

TERM OF PLAN

 

14.1        No Award shall be granted pursuant to
this Plan on or after the tenth anniversary of the earlier of the date this
Plan is adopted or the date of stockholder approval, but Awards granted prior
to such tenth anniversary may, and the Committee’s authority to administer the
terms of such Awards shall, extend beyond that date.

 

26Exhibit 10(f)

 

EXECUTION COPY

 

EMPLOYMENT AGREEMENT

(Stephen Carter)

 

EMPLOYMENT AGREEMENT (the
“Agreement”) dated as of November 10, 2003 by and between Superior Essex Inc.
(the “Company”) and Stephen Carter (the “Executive”).

 

The Company desires to
employ Executive and to enter into an agreement embodying the terms of such
employment;

 

Executive desires to
accept such employment and enter into such an agreement;

 

In consideration of the
premises and mutual covenants herein and for other good and valuable
consideration, the parties agree as follows:

 

1.             Term of Employment.  Subject to the provisions of Section 8 of
this Agreement, Executive shall be employed by the Company for a period
commencing on November 10, 2003 (the “Commencement Date”) and ending on
November 9, 2007 (the “Employment Term”) on the terms and subject to the
conditions set forth in this Agreement; provided, however, that
commencing with November 10, 2007 and on each anniversary thereof (each an
“Extension Date”), the Employment Term shall be automatically extended for an
additional one-year period, unless the Company or Executive provides the other
party hereto 90 days prior written notice before the next Extension Date that
the Employment Term shall not be so extended.

 

2.             Position.

 

a.             During the Employment
Term, Executive shall serve as the Chief Executive Officer (“CEO”) of the
Company.  In such position, Executive
shall have such duties and authority, consistent with such position with the
Company, as shall be determined from time to time by the Board of Directors of
the Company (the “Board”).  During the
Employment Term, Executive also shall serve as a member of the Board without
additional compensation.

 

b.             During the Employment
Term, Executive will devote Executive’s full business time and best efforts to
the performance of Executive’s duties hereunder and will not engage in any
other business, profession or occupation for compensation or otherwise which
would conflict or interfere, in any significant respect, with the rendition of
such services either directly or indirectly, without the prior written consent
of the Board.  The current outside
positions of Executive listed on Exhibit A attached hereto shall be approved by
the Board at the first meeting of the Board following the Commencement
Date.  Notwithstanding the foregoing,
Executive may, without the prior approval of the Board, (i) make and manage
personal business investments of Executive’s choice (and, in so doing, may
serve as an officer, director, agent or employee of entities and business
enterprises that are related to such personal investments) and (ii) serve in
any capacity with any civic, educational or charitable organization or any
governmental entity or trade association; provided that in each case,
and in the aggregate, such activities do not conflict or interfere, in any
significant respect, with the performance of Executive’s duties hereunder or
conflict with Section 9.

 

 

3.             Base Salary.  During the Employment Term, the
Company shall pay Executive a base salary at the annual rate of $600,000,
payable in regular installments in accordance with the Company’s usual payment
practices (but not less often than monthly). 
Executive’s base salary shall be reviewed annually by the Board, and
Executive shall be entitled to such increases in the base salary, if any, as
may be determined from time to time in the sole discretion of the Board.  Once increased, such base salary shall not
be decreased.  Executive’s annual base
salary, as in effect from time to time, is hereinafter referred to as the “Base
Salary”.

 

4.             Annual Bonus.  With respect to each full fiscal
year during the Employment Term, Executive shall be eligible to earn an annual
bonus award (an “Annual Bonus”) based upon the achievement of certain
performance targets, as reasonably established by the Board in good faith,
after consultation with Executive; provided, however, that
Executive shall have a target Annual Bonus of 50% of the Base Salary, subject
to Executive’s achievement of such performance targets.

 

5.             Equity
Arrangements.

 

a.             On January 1, 2004 or
as soon as practicable thereafter, the Company shall grant Executive 2% of the
outstanding shares of the Company’s common stock on the date hereof in the form
of 330,000 shares of restricted common stock of the Company (the “Restricted
Shares”), which shall be granted pursuant to, and subject to the terms and
conditions of, the Superior Essex Inc. 2003 Stock Incentive Plan (the “Stock
Incentive Plan”) and a restricted stock agreement, substantially in the form
attached hereto as Exhibit B, and, in respect of such grant, Executive shall
pay par value of $3,300.  In connection
with such purchase, the Company shall pay Executive a lump sum cash signing
bonus equal to $5,000, the net amount of which shall be applied to the purchase
of the Restricted Shares.

 

b.             Subject to
Executive’s continued employment by the Company, the Restricted Shares shall
vest with respect to 12.5% of such Restricted Shares at the end of each
six-month period that occurs during the period commencing on the Commencement
Date and ending on the fourth anniversary thereof; provided, however,
that upon a Change in Control (as defined in the Stock Incentive Plan), any
unvested Restricted Shares held by Executive shall become vested.

 

c.             Notwithstanding the
foregoing, if Executive’s employment is terminated by the Company without Cause
(as defined in Section 8(a) below) or by Executive for Good Reason (as defined
in Section 8(c) below) (i) prior to the first anniversary of the Commencement
Date, the Restricted Shares, to the extent not then vested, shall vest with
respect to the number of Restricted Shares that would have become vested if
Executive had remained employed by the Company through the first anniversary of
the Commencement Date or (ii) on or after the first anniversary of the
Commencement Date, the Restricted Shares shall vest with respect to a
percentage of the Restricted Shares equal to (y) the product of (I) 100%, times
(II) a fraction, the numerator of which is the number of full months that elapsed
during the period commencing on the Commencement Date and ending on Executive’s
date of termination and the denominator of which is 48, minus (z) the
percentage of Restricted Shares that already had become vested during the
Employment Term prior to such termination.

 

6.             Employee Benefits.  During
the Employment Term, Executive shall be entitled to participate in the
Company’s employee benefit plans as in effect from time to time

 

2

 

(collectively, the “Employee
Benefits”), on the same basis as those benefits generally are made available to
other senior executives of the Company, commensurate with Executive’s position
with the Company.

 

7.             Business Expenses,
Legal Fees and Perquisites.

 

a.             Business and Other
Expenses.  During the Employment
Term, reasonable business expenses incurred by Executive in the performance of
Executive’s duties hereunder shall be reimbursed by the Company in accordance
with Company policies.

 

b.             Legal Fees.  As soon as practicable after the execution of this
Agreement by Executive, the Company shall pay reasonable legal fees and
expenses incurred by Executive to Parker, Hudson, Rainer & Dobbs LLP in
connection with the negotiation of this Agreement prior to its execution, up to
a maximum of $10,000, after presentation of an itemized statement by such
counsel with reasonable detail supporting such fees and expenses.

 

c.             Perquisites.  While employed hereunder, Executive shall be entitled to (i) any
perquisites that generally are made available to other senior executives of the
Company and (ii) those perquisites set forth on Exhibit C attached hereto.

 

8.             Termination.  The Employment Term and
Executive’s employment hereunder may be terminated by either party at any time
and for any reason in the manner provided herein.  Notwithstanding any other provision of this Agreement, the
provisions of this Section 8 shall exclusively govern Executive’s rights upon
termination of employment with the Company and its affiliates.

 

a.             By the Company For
Cause or By Executive Resignation Without Good Reason.

 

(i)  The
Employment Term and Executive’s employment hereunder may be terminated by the
Company for Cause and shall terminate automatically upon Executive’s
resignation without Good Reason; provided, however, that
Executive will be required to give the Company at least 60 days advance written
notice of a resignation without Good Reason.

 

(ii)  For
purposes of this Agreement, “Cause” shall mean (A) Executive’s continued
willful failure substantially to perform Executive’s duties hereunder (other
than as a result of total or partial incapacity due to physical or mental
illness) following written notice by the Company to Executive of such failure,
(B) dishonesty in the performance of Executive’s duties hereunder, (C)
Executive’s conviction of, or plea of guilty or nolo  contendere
to, a crime constituting (y) a felony under the laws of the United States or
any state thereof or (z) a misdemeanor involving misconduct by Executive in his
personal or professional conduct punishable by imprisonment of more than three
days or a fine in excess of $5,000 (other than a traffic violation), which is
reasonably likely to damage the business, prospects or reputation of the
Company or any of its affiliates in any respect, (D) Executive’s willful
malfeasance or willful misconduct in connection with Executive’s duties
hereunder or any act or omission which is injurious (other than in some
immaterial or de minimis respect) to the financial condition or business
reputation of the Company or any of its affiliates or (E) Executive’s breach of
the provisions of Sections 9 or 10 of this Agreement (other than a breach which
is insubstantial and insignificant, taking into account all of the
circumstances); provided, however, that any event described in
clauses (A), (B) and (D) of this Section 8(a)(ii) shall constitute Cause only
if

 

3

 

Executive fails to cure such
event, to the reasonable satisfaction of the Board, within 10 days after
receipt from the Company of written notice of the event which constitutes
Cause.

 

(iii) 
If Executive’s employment is terminated by the Company for
Cause or if Executive resigns without Good Reason, Executive shall be entitled
to receive:

 

(A)          the
Base Salary through the date of termination;

 

(B)           any
Annual Bonus earned but unpaid as of the date of termination for any previously
completed fiscal year;

 

(C)           reimbursement
for any unreimbursed business expenses properly incurred by Executive in
accordance with Company policy prior to the date of Executive’s termination;
and

 

(D)          such
Employee Benefits, if any, as to which Executive may be entitled under the
employee benefit plans of the Company (the amounts described in clauses (A)
through (D) hereof being referred to as the “Accrued Rights”).

 

Following such
termination of Executive’s employment by the Company for Cause or resignation
by Executive without Good Reason, except as set forth in this Section
8(a)(iii), Executive shall have no further rights to any compensation or any
other benefits under this Agreement.

 

b.             Disability or
Death.

 

(i)  The
Employment Term and Executive’s employment hereunder shall terminate upon
Executive’s death and may be terminated by the Company if Executive becomes
physically or mentally incapacitated and is therefore reasonably likely to be
unable for a period of six consecutive months or for an aggregate of nine
months in any twelve consecutive month period to perform Executive’s material
duties (such incapacity is hereinafter referred to as “Disability”).  Any question as to the existence of the
Disability of Executive as to which Executive and the Company cannot agree
shall be determined in writing by a qualified independent physician mutually
acceptable to Executive and the Company. 
If Executive and the Company cannot agree as to a qualified independent
physician, each shall appoint such a physician and those two physicians shall
select a third who shall make such determination in writing.  The determination of Disability made in
writing to the Company and Executive shall be final and conclusive for all
purposes of the Agreement.

 

(ii)  Upon
termination of Executive’s employment hereunder for either Disability or death,
Executive or Executive’s estate (as the case may be) shall be entitled to
receive the Accrued Rights.

 

Following Executive’s
termination of employment due to death or Disability, except as set forth in
this Section 8(b)(ii), Executive shall have no further rights to any
compensation or any other benefits under this Agreement.

 

4

 

c.             By the Company
Without Cause or Resignation by Executive for Good Reason.

 

(i)  The
Employment Term and Executive’s employment hereunder may be terminated by the
Company without Cause (other than by reason of death or Disability) or by
Executive’s resignation for Good Reason.

 

(ii)  For
purposes of this Agreement, “Good Reason” shall mean, without
Executive’s written consent, (A) a reduction in Executive’s Base Salary as then
in effect, (B) a reduction in Executive’s annual bonus opportunity to less than
50% or a material reduction by the Company of benefits to which Executive is
entitled (other than an overall reduction in benefits that affects
substantially all full-time employees of the Company), (C) Executive’s removal
from the position of CEO of the Company, (D) a material adverse change in
Executive’s authority, duties and responsibilities that is substantially
inconsistent with Executive’s position as CEO of the Company, (E) a relocation
of Executive’s principal place of employment with the Company of more than 35
miles from the Atlanta, Georgia metropolitan area, (F) the Company’s failure to
pay amounts to which Executive is entitled under this Agreement or (G) the
Company’s giving written notice that it elects not to extend the Employment
Term pursuant to Section 1 of this Agreement; provided that any event
described in clauses (A) through (F) above shall constitute Good Reason only if
the Company fails to cure such event within 20 days after receipt from
Executive of written notice of the event which constitutes Good Reason; provided,
further, that Good Reason shall cease to exist for an event on the 60th
day following the later of its occurrence or Executive’s knowledge thereof,
unless Executive has given the Company written notice thereof prior to such
date.

 

(iii) 
If Executive’s employment is terminated by the Company
without Cause (other than by reason of death or Disability) or if Executive
resigns for Good Reason, Executive shall be entitled to receive:

 

(A)          the
Accrued Rights; and

 

(B)           subject
to Executive’s continued compliance with the provisions of Sections 9 and 10 of
this Agreement (other than a breach which is insubstantial and insignificant,
taking into account all of the circumstances), continued payment of the Base
Salary for a period of twelve months following the date of such termination; provided
that the aggregate amount described in this clause (B) shall be reduced by the
present value of any other cash severance or similar termination benefits
payable to Executive under any other plans, programs or arrangements of the
Company or its affiliates.

 

Following Executive’s
termination of employment by the Company without Cause (other than by reason of
Executive’s death or Disability) or by Executive’s resignation for Good Reason,
except as set forth in this Section 8(c)(iii), Executive shall have no further
rights to any compensation or any other benefits under this Agreement.

 

d.             Expiration of
Employment Term.

 

(i)  Election
Not to Extend the Employment Term. 
In the event either party elects not to extend the Employment Term
pursuant to Section 1, unless Executive’s employment is earlier terminated
pursuant to paragraphs (a), (b) or (c) of this Section 8, Executive’s

 

5

 

termination of employment
hereunder (whether or not Executive continues as an employee of the Company
thereafter) shall be deemed to occur on the close of business on the day
immediately preceding the next scheduled Extension Date.  If the Company so elects not to extend the
Employment Term, Executive shall be treated as having resigned for Good Reason
and Executive’s rights and obligations shall be determined in accordance with
Section 8(c)(iii).  If Executive so
elects not to extend the Employment Term, Executive shall be entitled to
receive the Accrued Rights.

 

Following such
termination of Executive’s employment hereunder as a result of either party’s
election not to extend the Employment Term, except as set forth in this Section
8(d)(i), Executive shall have no further rights to any compensation or any
other benefits under this Agreement.

 

(ii)  Continued
Employment Beyond the Expiration of the Employment Term.   Unless the parties otherwise agree in writing,
continuation of Executive’s employment with the Company beyond the expiration
of the Employment Term shall be deemed an employment at-will and shall not be
deemed to extend any of the provisions of this Agreement and Executive’s
employment may thereafter be terminated at will by either Executive or the
Company; provided that the provisions of Sections 9, 10 and 11 of this
Agreement shall survive any termination of this Agreement or Executive’s
termination of employment hereunder.

 

e.             Notice of Termination.  Any purported termination of employment by
the Company or by Executive (other than due to Executive’s death) shall be
communicated by Notice of Termination to the other party hereto in accordance
with Section 12(h) hereof.  For purposes
of this Agreement, a “Notice of Termination” shall mean a written notice which
shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of employment under the provision so indicated.

 

f.              Board/Committee
Resignation.  Upon termination of
Executive’s employment for any reason, Executive agrees to resign, as of the
date of such termination and to the extent applicable, from the Board (and any
committees thereof) and the board of directors (and any committees thereof) of
any of the Company’s affiliates.

 

g.             Execution of Release of All
Claims.  Upon termination of Executive’s employment
for any reason, Executive agrees to execute a release of all claims against the
Company and its shareholders, and any of their respective subsidiaries,
affiliates, shareholders, partners, directors, officers, employees and agents
(the “Protected Group”), substantially in the form attached hereto as Exhibit D.  Notwithstanding anything set forth in this
Agreement to the contrary, upon termination of Executive’s employment for any
reason, Executive shall not receive any payments or benefits to which Executive
may be entitled hereunder (other than those which by law cannot be subject to
the execution of a release) (i) if Executive revokes such release or (ii) until
eight days after the date Executives signs such release (or until such other
date as applicable law may provide that Executive cannot revoke such release).

 

6

 

9.             Non-Competition.

 

a.             Executive
acknowledges and recognizes the highly competitive nature of the businesses of
the Company and its affiliates and accordingly agrees as follows:

 

(i)  During
the Employment Term and, for a period of twelve months following the date
Executive ceases to be employed by the Company for any reason (the “Restricted
Period”), Executive will not, whether on Executive’s own behalf or on behalf of
or in conjunction with any person, firm, partnership, joint venture,
association, corporation or other business organization, entity or enterprise
whatsoever (“Person”), directly or indirectly solicit or assist in soliciting
in competition with the Company, the wire or cable business of any client or
prospective client:

 

(A)          with whom Executive had
personal contact or dealings on behalf of the Company during the one year
period preceding Executive’s termination of employment;

 

(B)           with whom employees
reporting to Executive have had personal contact or dealings on behalf of the
Company during the one year period immediately preceding Executive’s
termination of employment; or

 

(C)           for whom Executive had
direct or indirect responsibility during the one-year period immediately
preceding Executive’s termination of employment.

 

(ii)  During
the Restricted Period, Executive will not directly or indirectly:

 

(A)          engage in any business
that manufactures or distributes wire or cable in any geographical area that is
within 100 miles of any geographical area where the Company or its affiliates
manufactures or distributes wire or cable (a “Competitive Business”);

 

(B)           enter the employ of, or
render any services to, any Person (or any division or controlled or
controlling affiliate of any Person) who or which engages in a Competitive
Business;

 

(C)           acquire a financial
interest in, or otherwise become actively involved with, any Competitive
Business, directly or indirectly, as an individual, partner, shareholder,
officer, director, principal, agent, trustee or consultant; or

 

(D)          interfere with, or
attempt to interfere with, business relationships (whether formed before, on or
after the date of this Agreement) between the Company or any of its affiliates
and customers, clients, suppliers, partners, members or investors of the
Company or its affiliates.

 

(iii) 
Notwithstanding anything to the contrary in this
Agreement, Executive may, directly or indirectly own, solely as an investment,
securities of any Person engaged in the business of the Company or its
affiliates which are publicly traded on a national or regional stock exchange
or on the over-the-counter market if Executive (a) is not a controlling
person of, or a member of a group which controls, such person and (b) does
not, directly or indirectly, own 5% or more of any class of securities of such
Person.

 

7

 

(iv)  During
the Restricted Period, Executive will not, whether on Executive’s own behalf or
on behalf of or in conjunction with any Person, directly or indirectly:

 

(A)          solicit or encourage any
employee of the Company or its affiliates to leave the employment of the
Company or its affiliates; or

 

(B)           hire any such employee
who was employed by the Company or its affiliates as of the date of Executive’s
termination of employment with the Company or who left the employment of the
Company or its affiliates coincident with, or within one year prior to or
after, the termination of Executive’s employment with the Company.

 

(v)  During
the Restricted Period, Executive will not, directly or indirectly, solicit or
encourage to cease to work with the Company or its affiliates any consultant
then under contract with the Company or its affiliates.

 

b.             It is expressly
understood and agreed that although Executive and the Company consider the
restrictions contained in this Section 9 to be reasonable, if a final judicial
determination is made by a court of competent jurisdiction that the time or
territory or any other restriction contained in this Agreement is an unenforceable
restriction against Executive, the provisions of this Agreement shall not be
rendered void but shall be deemed amended to apply as to such maximum time and
territory and to such maximum extent as such court may judicially determine or
indicate to be enforceable. 
Alternatively, if any court of competent jurisdiction finds that any
restriction contained in this Agreement is unenforceable, and such restriction
cannot be amended so as to make it enforceable, such finding shall not affect
the enforceability of any of the other restrictions contained herein.

 

10.           Confidentiality and
Non-Disparagement.

 

a.             Confidentiality.

 

(i)  Executive will not at any time (whether
during or after Executive’s employment with the Company) (y) retain or use for
the benefit, purposes or account of Executive or any other Person, or (z)
disclose, divulge, reveal, communicate, share, transfer or provide access to
any Person outside the Company (other than its professional advisers who are
bound by confidentiality obligations), any non-public, proprietary or
confidential information — including without limitation trade secrets,
know-how, research and development, software, databases, inventions, processes,
formulae, technology, designs and other intellectual property, information
concerning finances, investments, profits, pricing, costs, products, services,
vendors, customers, clients, partners, investors, personnel, compensation,
recruiting, training, advertising, sales, marketing, promotions, government and
regulatory activities and approvals — concerning the past, current or future
business, activities and operations of the Company, its subsidiaries or
affiliates and/or any third party that has disclosed or provided any of same to
the Company on a confidential basis (“Confidential Information”) without the
prior written authorization of the Board.

 

(ii)  “Confidential Information” shall not include
any information that is (A) generally known to the industry or the public other
than as a result of Executive’s breach of this covenant or any breach of other
confidentiality obligations by third parties; (B) made legitimately available
to Executive by a third party without breach of any confidentiality

 

8

 

obligation; or (C) required by
law to be disclosed; provided, however, that Executive shall give
prompt written notice to the Company of such requirement, disclose no more
information than is so required, and cooperate (at the Company’s expense) with
any attempts by the Company to obtain a protective order or similar treatment.

 

(iii) 
Except as required by law, Executive will not disclose to
anyone, other than Executive’s immediate family and legal or financial
advisors, the existence or contents of this Agreement; provided, however,
that Executive may disclose to any prospective future employer the provisions
of Sections 9 and 10 of this Agreement provided they agree to maintain the
confidentiality of such terms. Notwithstanding
anything herein to the contrary, any party to this Agreement (and any employee,
representative, or other agent of any party to this Agreement) may disclose to
any and all persons, without limitation of any kind, the tax treatment and tax
structure of the transactions contemplated by this Agreement and all materials
of any kind (including opinions or other tax analyses) that are provided to it
relating to such tax treatment and tax structure.  However, any such information relating to the tax treatment or
tax structure is required to be kept confidential to the extent necessary to
comply with any applicable federal or state securities laws.

 

(iv)  Upon
termination of Executive’s employment with the Company for any reason,
Executive shall: (x) cease and not thereafter commence use of any Confidential
Information or intellectual property (including without limitation, any patent,
invention, copyright, trade secret, trademark, trade name, logo, domain name or
other source indicator) owned or used by the Company, its subsidiaries or
affiliates; (y) immediately destroy, delete, or return to the Company, at the
Company’s option, all originals and copies in any form or medium (including
memoranda, books, papers, plans, computer files, letters and other data) in
Executive’s possession or control (including any of the foregoing stored or
located in Executive’s office, home, laptop or other computer, whether or not
Company property) that contain Confidential Information or otherwise relate to
the business of the Company, its affiliates and subsidiaries, except that
Executive may retain only those portions of any personal notes, notebooks and
diaries that do not contain any Confidential Information; and (z) notify and
fully cooperate with the Company (at the Company’s expense) regarding the
delivery or destruction of any other Confidential Information of which
Executive is or becomes aware.

 

b.             Non-Disparagement.

 

(i) 
Executive shall not at any time make any oral or written statement about
the Company, its affiliates or its shareholders, regarding any of the
foregoing’s financial status, business, compliance with laws, ethics,
shareholders, partners, personnel, directors, officers, employees, consultants,
agents, services, business methods or otherwise, which is intended or
reasonably likely to disparage any member of the Protected Group, or otherwise
degrade any member of the Protected Group’s reputation in the business,
industry or legal community in which any such member operates; provided
that Executive shall be permitted to (A) make any statement that is required by
applicable securities or other laws to be included in a filing or disclosure
document, (B) issue any press release or public statement regarding the fact of
a termination of Executive’s employment, (C) defend himself against any
statement made by the Company that is intended or reasonably likely to
disparage Executive or otherwise degrade Executive’s reputation in the
business, industry or legal community in which Executive operates, only if
Executive reasonably believes that the statements made in such defense are not
false statements and (D) provide truthful testimony in any legal proceeding.

 

9

 

(ii)  The
Company shall not issue any press release or make any public statement about
Executive which is intended or reasonably likely to disparage Executive, or
otherwise degrade Executive’s reputation in the business or industry in which
Executive operates; provided that the Company shall be permitted to (A)
make any statement that is required by applicable securities or other laws to
be included in a filing or disclosure document, (B) issue any press release or
public statement regarding the fact of a termination of Executive’s employment,
(C) defend itself against any statement made by Executive that is intended or reasonably
likely to disparage any member of the Protected Group or otherwise degrade any
member of the Protected Group’s reputation in the business, industry or legal
community in which such member of the Protected Group operates, only if the
Company reasonably believes that the statements made in such defense are not
false statements and (D) provide truthful testimony in any legal proceeding.

 

c.             The provisions of
this Section 10 shall survive the termination of Executive’s employment for any
reason.

 

11.           Specific Performance. 
Executive acknowledges and agrees that the Company’s remedies at law for
a breach or threatened breach of any of the provisions of Section 9 or Section
10 would be inadequate and the Company would suffer irreparable damages as a
result of such breach or threatened breach. 
In recognition of this fact, Executive agrees that, in the event of such
a breach or threatened breach, in addition to any remedies at law, the Company,
without posting any bond, shall be entitled to cease making any payments or
providing any benefit otherwise required by this Agreement and obtain equitable
relief in the form of specific performance, temporary restraining order,
temporary or permanent injunction or any other equitable remedy which may then
be available.

 

12.           Miscellaneous.

 

a.             Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without regard
to conflicts of laws principles thereof.

 

b.             Entire
Agreement/Amendments.  This
Agreement contains the entire understanding of the parties with respect to the
employment of Executive by the Company. 
There are no restrictions, agreements, promises, warranties, covenants
or undertakings between the parties with respect to the subject matter herein
other than those expressly set forth herein. 
This Agreement may not be altered, modified, or amended except by
written instrument signed by the parties hereto.

 

c.             No Waiver.  The failure of a party to insist upon strict
adherence to any term of this Agreement on any occasion shall not be considered
a waiver of such party’s rights or deprive such party of the right thereafter
to insist upon strict adherence to that term or any other term of this
Agreement.

 

d.             Severability.  In the event that any one or more of the
provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected thereby.

 

10

 

e.             Assignment.  This Agreement, and all of Executive’s
rights and duties hereunder, shall not be assignable or delegable by
Executive.  Any purported assignment or
delegation by Executive in violation of the foregoing shall be null and void ab initio and of no force and effect.  This Agreement may be assigned by the
Company to a person or entity which is an affiliate or a successor in interest
to substantially all of the business operations of the Company and which
assumes in writing, or by operation of law, the obligations of the Company
hereunder.  Upon such assignment, the
rights and obligations of the Company hereunder shall become the rights and
obligations of such affiliate or successor person or entity; provided, however,
that, unless Executive consents to such assignment (which consent shall not be
unreasonably withheld), the Company shall remain secondarily liable for any
obligations hereunder.

 

f.              Set-Off.  The Company’s obligation to pay Executive
the amounts provided and to make the arrangements provided hereunder shall be
subject to set-off, counterclaim or recoupment of amounts owed by Executive to
the Company or its affiliates.

 

g.             Successors;
Binding Agreement.  This Agreement
shall inure to the benefit of and be binding upon personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.

 

h.             Notice.  For the purpose of this Agreement, notices
and all other communications provided for in the Agreement shall be in writing
and shall be deemed to have been duly given when delivered by hand or overnight
courier or three days after it has been mailed by United States registered
mail, return receipt requested, postage prepaid, addressed to the respective
addresses set forth below in this Agreement, or to such other address as either
party may have furnished to the other in writing in accordance herewith, except
that notice of change of address shall be effective only upon receipt.

 

	
  If to the
  Company:

  
	
   

  
	
  210 Interstate
  North Parkway, Suite 250

  Atlanta, Georgia 30339

  
	
   

  
	
  Attention:

  
	
   

  
	
  If to Executive:

  
	
   

  
	
  To the most
  recent address of Executive set forth in the personnel records of the
  Company.

  

 

i.              Executive
Representation.  Executive hereby
represents to the Company that the execution and delivery of this Agreement by
Executive and the Company and the performance by Executive of Executive’s
duties hereunder shall not constitute a breach of, or otherwise contravene, the
terms of any employment agreement or other agreement or policy to which
Executive is a party or otherwise bound.

 

j.              Prior Agreements.  This Agreement supercedes all prior
agreements and understandings (including verbal agreements) between Executive
and the Company and/or its affiliates regarding the terms and conditions of
Executive’s employment with the Company and/or its affiliates.

 

11

 

k.             Cooperation.  Executive shall provide Executive’s
reasonable cooperation in connection with any action or proceeding (or any appeal
from any action or proceeding) which relates to events occurring during
Executive’s employment hereunder.  This
provision shall survive any termination of this Agreement.  The Company shall reimburse Executive for
any reasonable out-of-pocket expenses incurred in connection with Executive’s
performance of obligations under this Section 12(k) at the request of the
Company and, following Executive’s termination of employment hereunder, the
Company shall pay Executive a fee at an hourly rate of $300 for Executive’s
performance of obligations under this Section 12(k) at the request of the
Company; provided that (i) Executive is not receiving any payments
pursuant to Section 8(c) of this Agreement at the time of Executive’s
performance of such obligations and (ii) Executive’s cooperation is not in
connection with any action, suit or proceeding in respect of which the Company
is providing or has provided any payments pursuant to Section 12(m) of this
Agreement.

 

l.              Withholding Taxes.  The Company may withhold from any amounts
payable under this Agreement such Federal, state and local taxes as may be
required to be withheld pursuant to any applicable law or regulation.

 

m.            Indemnification.  In the event Executive is made a party to any threatened
or pending action, suit, or proceeding, whether civil, criminal,
administrative, or investigative, by reason of the fact that Executive is or
was performing services under this Agreement or as an employee, officer or
director of the Company, then, to the fullest extent permitted by applicable
law, the Company shall indemnify Executive against all expenses (including
reasonable attorneys’ fees), judgments, fines, and amounts paid in settlement,
as actually and reasonably incurred by Executive in connection therewith.  Such indemnification shall continue as to
Executive even if Executive has ceased to be an employee, officer or director
of the Company and shall inure to the benefit of Executive’s heirs and
estate.  In the event that both
Executive and the Company are made a party to the same third-party action,
complaint, suit, or proceeding, the Company will engage competent legal
representation, and Executive agrees to use the same representation at the
Company’s expense; provided that if counsel selected by the Company
shall have a conflict of interest that prevents such counsel from representing
Executive, Executive may engage separate counsel and the Company shall pay all
reasonable attorneys’ fees of such separate counsel.  In addition, the Company agrees to continue and maintain a
directors’ and officers’ liability insurance policy covering Executive that is
no less favorable than the policy covering other directors and senior officers
of the Company.

 

n.             Legal Fees.  In the event of any dispute with respect to
this Agreement which results in a lawsuit, arbitration or other dispute
resolution, the person hearing such dispute shall be entitled to award
reasonable attorneys’ fees and other costs and expenses incurred in connection
with such dispute to the party which prevails in substantially all material
respects on the issues presented for resolution, as determined by the person
hearing such dispute.

 

o.             Counterparts.  This Agreement may be signed in
counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.

 

13.           Authority.  This Agreement shall be duly approved and
authorized by all necessary action of the Company no later than the first
meeting of the Board following the Commencement Date.

 

12

 

IN WITNESS WHEREOF, the parties hereto have
duly executed this Agreement as of the day and year first above written.

 

 

	
  SUPERIOR ESSEX
  INC.

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   /s/
  David S. Aldridge

  	
   

  	
   /s/
  Stephen Carter

  	
   

  
	
  By: David S. Aldridge

  	
  Stephen Carter

  
	
  Title: Chief Financial Officer

  	
   

  
				

 

13

 

EXHIBIT A

 

CURRENT POSITIONS

 

True Position – Director

 

Telewest Communications
PLC – Potential Director

 

 

EXHIBIT B

 

FORM OF RESTRICTED STOCK AGREEMENT

 

 

EXHIBIT C

 

PERQUISITES

 

(1)           The Company shall
provide a car allowance to Executive in the amount of $1,500 per month (which
is intended to be inclusive of any income taxes owed by Executive as a result
of all or any portion of this allowance being determined to be compensation to
Executive).

 

(2)           The Company shall pay
80% of the premiums for Executive (and his dependents) under the Company’s
medical insurance plan, plus the first $10,000 of medical expenses and/or
premiums not covered by such medical insurance plan or paid for by the Company.

 

(3)           The Company shall pay
the dues for one country club membership for Executive.

 

(4)           The Company shall
reimburse Executive for the telecommunications and computing costs to provide
Executive with an effective office capability at home and while traveling.

 

(5)           The Company shall
provide Executive with an annual allowance for financial planning and
counseling in accordance with the Company’s policy, but in no event less than
$5,000.

 

 

EXHIBIT D

 

RELEASE

 

In exchange
for a portion of the benefits described in the attached Employment Agreement
dated as of November 10, 2003 (the “Agreement”), to which I agree I am not
otherwise entitled, I hereby release Superior Essex Inc. (the “Company”), its
respective affiliates, subsidiaries, predecessors, successors, assigns,
officers, directors, employees, agents, stockholders, attorneys, and insurers,
past, present and future (the “Released Parties”) from any and all claims of
any kind which I now have or may have against the Released Parties, whether
known or unknown to me, by reason of facts which have occurred on or prior to
the date that I have signed this Release; provided that such released
claims shall not include any claims to enforce your rights (i) under, or with
respect to, the Agreement, (ii) to indemnification provided at law or pursuant
to the Company’s By-Laws or insurance, (iii) under COBRA or your vested rights
under benefit plans or your Restricted Stock Agreement and the Stock Incentive
Plan (as defined in the Agreement). 
Notwithstanding the generality of the preceding sentence, such released
claims include, without limitation, any and all claims under federal, state or
local laws pertaining to employment, including the Age Discrimination in
Employment Act, Title VII of the Civil Rights Act of 1964, as amended, 42
U.S.C. Section 2000e et seq., the Fair Labor Standards Act, as amended,
29 U.S.C. Section 201 et seq., the Americans with Disabilities Act, as
amended, 42 U.S.C. Section 12101 et seq., the Reconstruction Era Civil
Rights Act, as amended, 42 U.S.C. Section 1981 et seq., the
Rehabilitation Act of 1973, as amended, 29 U.S.C. Section 701 et seq.,
the Family and Medical Leave Act of 1992, 29 U.S.C. Section 2601 et seq.,
and any and all state or local laws regarding employment discrimination and/or
federal, state or local laws of any type or description regarding employment,
including, but not limited to, any claims arising from or derivative of my
employment with the Company, as well as any and all claims under state contract
or tort law or otherwise.

 

I hereby
represent that I have not filed any action, complaint, charge, grievance or
arbitration against the Company or the Released Parties.

 

I understand
and agree that I must forever continue to keep confidential all proprietary or
confidential information which I learned while employed by the Company, whether
oral or written and as defined in the Agreement (“Confidential Information”)
and shall not make use of any such Confidential Information on my own behalf or
on behalf of any other person or entity; provided, however, that
I may divulge such Confidential Information if I am required to do so by a
court of law, by any governmental agency having supervisory authority over the
business of the Company, or by any administrative or legislative body with
apparent jurisdiction to order me to divulge, disclose or make accessible such
Confidential Information.

 

I expressly
understand and agree that the Company’s obligations under this Release and the
Agreement are in lieu of any and all other amounts to which I might be, am now
or may become entitled to receive from any of the Released Parties upon any
claim whatsoever.

 

I understand
that I must not disclose the terms of this Release and the Agreement to anyone
other than my immediate family, financial advisors (if any) and legal counsel
and that I must immediately inform my immediate family, financial advisors (if
any) and legal counsel that they are prohibited from disclosing the terms of this
Release and the Agreement.

 

 

It is
understood that I will not be in breach of the nondisclosure provisions of this
Release if I am required to disclose information pursuant to a valid subpoena
or court order, provided that I notify the Company (to the attention of the
General Counsel of the Company) as soon as practicable, but prior to the time
in which I am required to disclose information, that I have received the
subpoena or court order which may require me to disclose information protected
by this Release.  Notwithstanding the
foregoing, I also may disclose the terms of this Release to government taxing
authorities and/or the SEC.

 

I agree that
any violation or breach by me of my nondisclosure obligations, without limiting
the Company’s remedies, shall give rise on the part of the Company to a claim
for relief to recover from me, before a court of competent jurisdiction, any
and all amounts previously paid to or on behalf of me by the Company pursuant
to Section 8 of the Agreement, but shall not release me from the performance of
my obligations under this Release.

 

I will not
apply for or otherwise seek employment with the Released Parties without their
written consent.

 

I have read
this Release carefully, acknowledge that I have been given at least 21 days to
consider all of its terms, and have been advised to consult with an attorney
and any other advisors of my choice prior to executing this Release, and I
fully understand that by signing below I am voluntarily giving up any right
which I may have to sue or bring any other claims against the Released Parties,
including any rights and claims under the Age Discrimination in Employment
Act.  I also understand that I have a
period of 7 days after signing this Release within which to revoke my
agreement, and that neither the Company nor any other person is obligated to
provide any benefits to me pursuant to the Agreement until 8 days have passed
since my signing of this Release without my signature having been revoked.  I understand that any revocation of this
Release must be received by the General Counsel of the Company within the
seven-day revocation period.  Finally, I
have not been forced or pressured in any manner whatsoever to sign this
Release, and I agree to all of its terms voluntarily.  I represent and acknowledge that no representation, statement,
promise, inducement, threat or suggestion has been made by any of the Released
Parties or by any other individual to influence me to sign this Release, except
such statements as are expressly set forth herein or in the Agreement.

 

This Release is final and binding and may not
be changed or modified.

 

 

	
   

  	
   

  	
   

  	
   

  
	
  DATE

  	
  Stephen Carter

  

 

2

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