Document:

Exhibit 4.8

STEINWAY MUSICAL INSTRUMENTS, INC.

2006 EMPLOYEE STOCK PURCHASE PLAN

1.       PURPOSES

The purposes of the Steinway Musical Instruments,
Inc. 2006 Employee Stock Purchase Plan (the “Plan”) are (a) to provide an
incentive for Eligible Employees (as defined below) to continue devoting their
best efforts to the success of the Company (as defined below) and (b) to afford
such employees an opportunity to obtain a proprietary interest in the continued
growth and prosperity of the Company through ownership of its common stock
acquired in a convenient fashion.

2.       DEFINITIONS

Whenever used in the Plan:

“Alternative Offering Price” means 85% of the Fair Market Value of
Shares on the last day of the Purchase Period.

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

“Code” means the Internal Revenue Code of 1986, as amended.

“Committee” means the Board or such committee of the Board that shall
be designated to administer the Plan.

“Company” means Steinway Musical Instruments, Inc. and its wholly-owned
subsidiaries now existing as of the effective date of the adoption of the Plan
or thereafter formed or acquired.

“Compensation” means the annual rate of salary in effect for an
Eligible Employee on a Date of Offering.

“Date of Offering” means that day that has been specified by the Board
for any offering made under the Plan and which occurs (1) within the first 15
days of each August during the term of the Plan or (2) within the first 15 days
after the effective date of the Plan.

“Eligible Employee” means any person employed by the Company on a Date
of Offering during the term of the Plan, other than: (1) any employee who,
immediately after the grant of an option hereunder, would own (within the
meaning of Section 424(d) of the Code) Shares (including Shares which such
employee may purchase under outstanding options) possessing 5% or more of the
total combined voting power or value of all classes of the capital stock of the
Company; (2) any employee whose customary employment is 20 hours or less per
week; (3) any employee whose customary employment is for not more than five
months in any calendar year; or (4) any highly compensated employee (within the
meaning of Section 414(q) of the Code) who is a member of the Board or who is
otherwise subject to the provisions of Section 16 of the Securities Exchange
Act of 1934, as amended.

“Fair Market Value” means the simple average, on a given day or, if no
sales of Shares were made on that day, the simple average on the next preceding
day on which sales were made, of the high and low prices per Share on the
principal national securities exchange on which the Shares are then traded or,
if the Shares are not then traded on a national securities exchange, the simple
average of the bid and asked price per Share on the over-the-counter market as
reported by NASDAQ.  If, at the time an
option is granted under the Plan, the Company’s Shares are not publicly traded,
“Fair Market Value” shall be deemed to be the fair value per Share determined
by the Board after taking into consideration all factors which it deems 

appropriate,
including, without limitation, recent sale and offer prices of the Shares in
private transactions negotiated at arm’s length.

“Offering Price” means 85% of the Fair Market Value of Shares on a Date
of Offering.

“Purchase Period” means, with respect to an offering under the Plan,
the period commencing on the Date of Offering and ending twelve (12) months
thereafter.

“Shares” means shares of common stock, $.001 par value per share, of
the Company.

3.       SCOPE OF PLAN

Options to purchase Shares may be granted by the
Company to Eligible Employees during the ten-year period commencing on the
effective date of the Plan, as hereinafter provided, but not more than 400,000
Shares shall be purchased pursuant to such options.  All employees granted options pursuant to the
Plan shall have the same rights and privileges with respect to such
options.  The Shares delivered by the
Company pursuant to the exercise of any option granted under the Plan may be
treasury shares, newly issued shares or both.

4.       OFFERINGS

Subject to the terms and conditions of the Plan, the
Board shall make an offering on a specified day during the first 15 days after
the effective date of the Plan and thereafter an annual offering on a specified
day during the first 15 days of August to Eligible Employees to purchase Shares
under the Plan; provided, however, that the Board may, in its discretion,
determine to make no offering in any given year.  The terms and conditions for each such
offering shall specify the Date of Offering, the Offering Price, and the number
of Shares that may be purchased thereunder. 
During the Purchase Period, payroll deductions shall be made from the
Compensation of Eligible Employees accepting an option under an offering
hereunder.

5.       NUMBER OF SHARES EACH ELIGIBLE EMPLOYEE MAY PURCHASE

A.         Subject to the provisions of the Plan, and as
to any offering made hereunder, each Eligible Employee shall be offered an
option to purchase that number of whole Shares that have on the Date of
Offering an aggregate purchase price (determined on the basis of the Offering
Price) equal to any whole percentage of his or her Compensation up to a maximum
of 5% (i.e., 1%, 2%, 3%, 4% or 5%).  In
the event such an option would involve the purchase of a fractional Share, the
number of Shares which may be purchased shall be rounded down to the next whole
number.

B.           If Eligible Employees elect, in any one
offering, to accept options to an extent that would result (if options were
granted on that basis) in the granting of options for that offering to purchase
more than the aggregate number of Shares specified by the Board for that
offering, the Committee shall adjust such options on a pro rata basis so that
the aggregate number of Shares subject to purchase under that offering does not
exceed such specified number of Shares.

C.           No Eligible Employee may be granted an option
to purchase Shares that would permit his or her total rights to purchase Shares
of the Company’s capital stock under all employee stock purchase plans of the
Company to accrue at a rate that exceeds $25,000 (based on the Fair Market
Value on the Date of Offering of the Shares subject to the option) for each
calendar year during which any such option granted to such individual is
outstanding at any time.

6.       METHOD OF PARTICIPATION

A.         The Committee shall give notice to Eligible
Employees of each offering of options to purchase Shares pursuant to the Plan
and the terms and conditions for each offering. 
Such notice shall specify the number of Shares which may be covered by
the option to be offered to each Eligible Employee, the Offering Price and such
other information as the Committee may determine.

B.           Each Eligible Employee who desires to accept
all or any part of the option to purchase Shares under an offering shall
signify his or her election to do so in the form and manner and by the deadline
prescribed by the Committee, provided that in no event may an election be made
after the Purchase Period.  Each such
Eligible Employee shall also authorize the Company, in the form and manner
prescribed by the Committee, to make payroll deductions to cover the aggregate
purchase price of those Shares in respect of which he or she has elected to
accept an option.  Such election and
authorization shall continue in effect unless and until such Eligible Employee
withdraws from the Plan or terminates his or her employment with the Company,
as hereinafter provided.

C.           The Company shall thereafter provide each
Eligible Employee accepting an option under each offering a notice indicating
the number of Shares covered by such option, the Offering Price, and any pro
rata reduction in accordance with Paragraph 5.B.

D.          Each Eligible Employee who does not wish to
accept any part of an option to purchase Shares under an offering shall so
signify in the form and manner prescribed by the Committee.  Such election not to accept any part of such
option shall be irrevocable for such offering.

7.       PAYROLL DEDUCTIONS

A.         The aggregate purchase price for those Shares
as to which each Eligible Employee has elected to accept the option offered to
him or her shall be deducted from his or her compensation during the Purchase
Period specified in the offering through weekly, bi-weekly, semi-monthly or
monthly payroll deductions, as applicable, in substantially equal
installments.  Such payroll deductions
shall commence as soon as practicable after the applicable Date of Offering,
and shall continue until the last day of the Purchase Period.

B.           In the event the payroll deductions of an
Eligible Employee participating in the Plan are temporarily discontinued
because of leave of absence, lay-off, temporary disability or other similar
reason, then the number of Shares subject to purchase under his or her option
shall be automatically reduced to that number of whole Shares which his or her
aggregate payroll deductions actually made within the Purchase Period is
sufficient to purchase. The balance of such payroll deductions, if any, shall
be refunded to the Eligible Employee in cash, without interest.  Notwithstanding the foregoing, however, such
Eligible Employee may, prior to the conclusion of the Purchase Period, make a
payment to the Company in one lump sum of an amount equal to the amount which
was not subject to payroll deductions by reason of the temporary discontinuance
thereof and, in that event, such Eligible Employee shall then be entitled to
purchase the total number of Shares for which he or she has accepted an option.

C.           Any amounts to be paid or Shares to be
delivered under the Plan shall be reduced by any sums required to be withheld
by the Company under federal, state and local tax withholding laws.

8.       RIGHT TO WITHDRAW

A.         An Eligible Employee who has accepted an
option to purchase Shares may, at any time prior to his or her last regular
payroll deduction thereunder, direct the Company to make no further deductions
from his or her Compensation with respect to such option, or may cancel the
entire option.  Upon either of such
actions, all payroll deductions with respect to such option shall cease. If the
employee has directed that payroll deductions be discontinued, any sums
theretofore deducted in respect of the offering shall be retained by the
Company until the end of the Purchase Period, at which time there shall be
issued to the employee the number of whole Shares that can be purchased with
the sum deducted and any remaining balance of the sum shall be paid to him or
her in cash, without interest.  If the
employee has cancelled his or her option, the Company shall refund in cash,
without interest, all amounts credited to the account of such employee with
respect to the applicable offering.

B.           Notification of an Eligible Employee’s
election to terminate deductions, or to cancel an option, shall be made by the
filing of an appropriate notice to such effect with the Committee.

9.       TERMINATION OF EMPLOYMENT

A.         In the event the employment of an Eligible
Employee who has accepted an option to purchase Shares is terminated prior to
his or her final payroll deduction hereunder because of death, total and
permanent disability, or retirement at or after age 65 or earlier with the
consent of the Company, he or she, or his or her legal representative, as
applicable, may either:

(1)         cancel
his or her option, in which event the Company shall refund in cash, without
interest, all amounts credited to his or her account under all offerings in
which he or she is participating under the Plan; or

(2)         elect
to receive at the conclusion of each applicable Purchase Period that number of
whole Shares which his or her payroll deductions actually made are sufficient
to purchase, plus the balance of such payroll deductions, if any, in cash,
without interest.

B.           The election of an Eligible Employee, or his
or her legal representative, as applicable, pursuant to Paragraph 9.A above
shall be made within three months after the event causing the termination of
employment and within 27 months after the Date of Offering.  Notification of the election shall be filed
with the Committee and, in the event no notification has been filed within the
prescribed period, the Company shall act in accordance with Paragraph 9.A(1)
above.

C.           In the event the employment of an Eligible
Employee who has accepted an option to purchase Shares is terminated for any
reason other than those specified in Paragraph 9.A, the outstanding options
held by such Eligible Employee shall be immediately canceled and the Company
shall refund in cash, without interest, all amounts credited to his or her
account under all offerings in which he or she is participating under the Plan.

10.      EXERCISE OF OPTION AND PURCHASE OF SHARES

A.         As of the last day of the Purchase Period of
each offering, the Committee shall determine the Alternative Offering
Price.  Unless an Eligible Employee who
has accepted an option under the offering has subsequently withdrawn from the
offering pursuant to Paragraph 8 hereof, his or her option shall be deemed to
have been exercised as of the last day of the applicable Purchase Period and
become on such date an irrevocable obligation to purchase Shares in accordance
with the provisions of the Plan.  The
number of whole Shares so purchased by each such Eligible Employee shall be
determined by dividing the amount accumulated in his or her account by payroll
deductions during the Purchase Period by the lower of either the Offering Price
or the Alternative Offering Price, rounded down to a whole number of
Shares.  As soon as practicable
thereafter, certificates for the number of whole Shares, determined as
aforesaid, purchased by each Eligible Employee shall be issued to him or
her.  Any balance remaining in the
account of an Eligible Employee shall be carried forward to the next Purchase
Period.

B.           In the event that, with respect to any
offering hereunder, the Alternative Offering Price is lower than the Offering
Price to such an extent that Eligible Employees participating in the offering
become entitled to purchase more Shares than were originally subscribed for by
all Eligible Employees accepting options under such offering, the Committee
shall apportion the aggregate Shares available for purchase under the offering
among Eligible Employees participating in the offering on a pro rata basis in
accordance with the number of Shares actually subscribed for by each such
Eligible Employee, and any amount remaining in the accounts of Eligible
Employees shall be carried forward to the next Purchase Period.

11.      RIGHTS AS A STOCKHOLDER

An Eligible Employee who has accepted an option to
purchase Shares under the Plan shall not be entitled to any of the rights or
privileges of a stockholder of the Company, including the right to receive any
dividends which may be declared by the Company until such time as he or she has
actually paid the purchase price for such Shares and certificates have been
issued to him or her in accordance with Paragraph 10 hereof.

12.      RIGHTS NOT TRANSFERABLE

An Eligible Employee’s rights under the Plan are
exercisable, during his or her lifetime, only by him or her and may not be
sold, pledged, assigned or transferred in any manner other than by will or the
laws of descent and distribution.  Any
attempt to sell, pledge, assign or transfer such rights shall be void and shall
automatically cause the option held by the Eligible Employee to be terminated.  In such event, the Company shall refund in cash,
without interest, all amounts credited to the account of such Eligible Employee
in all offerings under the Plan.

13.      ADMINISTRATION OF THE PLAN

A.         The Plan shall be administered by the
Committee, which is authorized to make such uniform rules as may be necessary
to carry out its provisions.  The
Committee shall determine any questions arising in the administration,
interpretation and application of the Plan, and all such determinations shall
be conclusive and binding on all parties.

B.           If any option granted under the Plan shall
lapse or terminate, the number of Shares as to which such option shall have
lapsed or terminated shall become available for sale under the Plan.

14.      ADJUSTMENT UPON CHANGES IN CAPITALIZATION

In the event of any change in the Shares of the
Company by reason of stock dividends, split-ups, corporate separations,
recapitalizations, mergers, consolidations, combinations, exchanges of Shares
and the like, the aggregate number and class of Shares available under the Plan
and the number and class of Shares under option but not yet issued under the
Plan shall be adjusted appropriately; provided, however, that no adjustment
shall be made which would result in a modification of the options granted
hereunder and thereby disqualify the Plan as an employee stock purchase plan
under the provisions of Section 423 of the Code.

15.      REGISTRATION OF CERTIFICATES

Stock
certificates may be registered in the name of the Eligible Employee, or, if he
or she so designates, in his or her name jointly with his or her spouse, with
right of survivorship.

16.      AMENDMENT OF PLAN

The
Board may at any time amend the Plan in any respect, subject to any requirement
of stockholder approval required by applicable law, rule or regulation,
including, without limitation, Section 422 of the Code, Section 162(m) of the
Code and the rules of the New York Stock Exchange; provided, however,
the Board may amend the Plan, including without limitation retroactive
amendments, without stockholder approval as necessary to avoid the imposition
of any taxes under Section 409A of the Code. 
Notwithstanding the above, without the approval of a majority of the
Shares of the Company’s capital stock then issued and outstanding and entitled
to vote, no amendment shall be made (i) increasing the number of Shares to be
reserved under the Plan (other than as provided in Paragraph 14), (ii)
decreasing the purchase price per Share (other than as provided in Paragraph
14), or (iii) materially increasing benefits under the Plan within the meaning
of Rule 16b-3 under the Securities Exchange Act of 1934, as amended, to the
extent that rule is applicable.

17.      TERMINATION OF THE PLAN

Unless
earlier terminated at the discretion of the Board, the Plan and all rights of
Eligible Employees in any offering hereunder shall terminate at the earlier of
(a) the conclusion of the last Purchase Period authorized herein or (b) on the
day that Eligible Employees participating in offerings under the Plan become
entitled to purchase a number of Shares equal to or greater than the number of
Shares remaining available for purchase. 
Upon termination of the Plan, Shares shall be issued to Eligible
Employees, and cash, if any, remaining in the accounts of the Eligible
Employees shall be refunded to them as if the Plan 

were
terminated at the end of a Purchase Period.

18.      GOVERNMENTAL REGULATIONS AND LISTING

All
rights granted or to be granted to Eligible Employees under the Plan are
expressly subject to all applicable laws and regulations and to the approval of
all governmental authorities required in connection with the authorization,
issuance, sale or transfer of the Shares reserved for the Plan including,
without limitation, (i) there being a current registration statement of the
Company covering the offer of Shares purchasable under options on the last day
of the Purchase Period applicable to such options, and if a registration
statement shall not then be effective the term of such options and the Purchase
Period shall be extended until the first business day after the effective date
of such registration statement, or post-effective amendment thereto, or (ii)
there being an exemption from such registration.

19.      MISCELLANEOUS

A.         The Plan shall not become effective unless
and until it has been approved, in the manner prescribed by law, by the
stockholders of the Company.

B.           The Plan shall not be deemed to constitute a
contract of employment between the Company and any Eligible Employee, nor shall
it interfere with the right of the Company to terminate any Eligible Employee
and treat him or her without regard to the effect which such treatment might
have upon him or her under the Plan.

C.           No option shall be granted hereunder, nor
shall the Plan be interpreted in such a manner, which could cause the Plan or
any options issued hereunder to fail to qualify under Section 423 of the Code.

D.          The Plan shall be construed and its
provisions enforced and administered in accordance with the laws of the State
of Delaware.

20.      EFFECTIVE DATE

The
effective date of the Plan shall be August 1, 2006, subject to approval by the
shareholders.Exhibit 10.1

Translation from French-for Information Only

AGREEMENT
FOR ASSIGNMENT OF RECEIVABLES

N°

This
Agreement (this “Agreement”) is made:

Among:             ESSEX NEXANS EUROPE, a French simplified
stock company (“société par action simplifiée”), the share
capital of which is EUR 40 930 000, registered with the Registry of
Commerce and Companies (“Registre du Commerce et
des Sociétés”- RCS) of Compiègne B 440 088 110, the
registered office of which is located in Compiègne (60 200), Rue Jean
Monnet – L’Européen, Parc tertiaire de la Croix, and hereinafter called the “Company”

Together with

ESSEX NEXANS, a French simplified stock company (“société par action simplifiée”), the share
capital of which is EUR 14,000,000, registered with the Registry of Commerce
and Companies (“Registre du Commerce et des Sociétés”-
RCS) of Compiègne B 444 684 549, the registered office of which is
located in Compiègne (60 200), Rue Jean Monnet – L’Européen, Parc
tertiaire de la Croix,

and hereinafter called “Participant A”

ESSEX NEXANS L+K GmbH, a German
company the share capital of which is EUR 25,000, the registered office of
which is located at Engterstrasse 34, 49565 Bramsche – Germany, registered with
Section B of the Commercial Registry of Osnabrück under n° 21732,

and hereinafter called “Participant B”

ESSEX NEXANS UK, the head office
of which is located at Ellis Ashton Park, Liverpool, L36 6BW - England,
registration n° 03512877,

and hereinafter called “Participant C”,

The Company and Participants A, B, and C shall
hereinafter together be called the Participants, or, separately, a Participant,
as the case may be;

And:                                  Compagnie
Générale d’Affacturage, a French
corporation (SA – “société anonyme”),
the share capital of which is EUR 14,400,000, registered with the
Registry of Commerce and Companies (“Registre du Commerce et
des Sociétés”- RCS) of
Bobigny B 702 016 312, the registered office of which is located in Saint Denis
(93200), 3 rue Francis de Pressensé, hereinafter called “CGA”,

WHEREAS, Participants A, B, and C
are subsidiaries of the Company, wholly or partially owned, directly or
indirectly, thereby, which together form an integrated group of companies;

WHEREAS, for the purpose of
improving their financial management capabilities, the Company and the
Participants wish to enter into financing arrangements in respect of their
respective portfolios of receivables;

WHEREAS, CGA submitted to the
Participants a financing proposal that they have accepted, the terms and
conditions of which are set forth in this Agreement.

NOW,
THEREFORE, THE PARTIES HERETO HEREBY AGREE AS FOLLOWS:

ARTICLE
1:  PURPOSE OF AGREEMENT

CGA hereby agrees to
provide to the Company and to each of the Participants, on the terms of this Agreement, a range of services for
financing and managing their business receivables, without guarantee, in
accordance with the provisions hereof.

It is accordingly agreed that CGA, by paying
the amount of the qualifying receivables, shall be substituted for and
subrogated in and to the rights of the
Participants, but shall not assume
the risk of financial default of the obligors concerned thereby.

Each
Participant hereby authorizes the Company to act on its behalf, as its
agent.  The Company hereby agrees to act
as agent of the Participants, on instructions of the Participants, solely for
management purposes in respect of this Agreement.

The
Participants’ obligations in respect of this Agreement shall not be joint.  Each Participant shall be liable only in
respect of its own obligations that result from the operation of its own current
account and shall be responsible (directly or through the Company acting as
agent) only for its portion (on a duly proportionate basis) of the commissions
and costs due to CGA hereunder.

ARTICLE
2:  SCOPE

To
qualify under this Agreement,  the business
receivables shall meet all of the
following conditions:

·                                          be receivables that will be liquidated, due, and owing at maturity thereof and denominated in Euros (EUR)  by obligors located in countries that are
member states of the European Union or of the OECD;

·                                          be receivables the maturity of which does
not exceed 90 days, ending on the
10th of the following month; and

·                                          correspond to goods delivered or
services rendered.

The
following shall be excluded from the scope of this Agreement:

·                                          receivables
in respect of a supplier of the Participants; notwithstanding the foregoing, if
the amount due from a Participant to a supplier is less than 2% of the
corresponding outstanding receivables of such Participant against such
supplier, the receivable shall be deemed an eligible one; CGA may, on a case by
case basis and at the express request of a Client, increase this ratio.

·                                          receivables
held against obligors that have
directors or majority shareholders in common with the parties hereto (other than CGA).

Compliance with the
foregoing scope shall be solely the responsibility of the Participants, and CGA
shall not be required to conduct any verification or audit in respect thereof

The
Participants hereby agree not to assign or pledge the receivables that have been assigned to CGA as security to
a third party.

ARTICLE
3:  CURRENT ACCOUNT AGREEMENT

An account shall be
opened with CGA in the name of each Participant.  All the transactions undertaken in connection
with this Agreement shall be recorded in the account of the relevant Participant; for each Participant
reciprocal debits and credits by and between CGA and the relevant
Participant in respect of this Agreement shall be deemed to be connected
and indivisible and shall be recorded as debits or credits and shall be offset
against each other.

 2
 

Should there be more than
one account standing in the name of a
Participant, such accounts shall constitute only line items in such
Participant’s current account, with all consequences attaching thereto,
regardless of the currency used for the transactions handled thereby.  In any case, each Participant shall be liable for any foreign exchange risk in respect of such Participant’s receivables.

ARTICLE
4:  TRANSACTIONS IN CURRENCIES OTHER THAN
EUROS

A receivable denominated
in a currency outside the EURO zone shall be credited to the current account of the relevant Participant for the equivalent value thereof in the currency of said account.

Such equivalent value
shall result from the application, on the value day on which it is recorded to the credit of such current account, of the average
exchange rate for cash thereof on the last business day, quoted in France and
communicated by the Banque de France
[Bank of France].

The equivalent value of
payments deposited in currencies different from the one of such current account shall be
determined on the basis of the exchange rate (for cash) applied by the bank
that undertook the transaction.

ARTICLE
5:  ASSIGNMENT OF RECEIVABLES

Each Participant shall
assign and transfer to CGA on a weekly or monthly basis, at such Participant’s
option, the invoices corresponding to the receivables of such Participant issued
since the immediately preceding delivery (hereinafter, the “Assigned
Receivables”); deliveries shall consist of the following documents:

·                                          a
summary constituting an acknowledgment of receipt and substitution/subrogation against payment made by CGA to the
Participants, as set forth hereafter; and

·                                          a
detailed statement of the invoices and credit notes transmitted separately in electronic form.

If CGA is unable to use
the electronic/digital files transmitted by the Participants, it shall not be
held liable for any delay in treatment that may result.

In the event of any
anomaly found in a delivery, CGA shall have the right to suspend its financing
until correction thereof.

CGA shall pay the amount
of the assigned receivables by crediting the current account of each relevant Participant; as a result, and
on the date, of such payment CGA shall be substituted for and subrogated in and
to the rights and actions of the relevant
Participant in respect of the transferred receivables, as provided in
Article 1250-1° of the French Civil Code.

ARTICLE
6:  GUARANTEE OF CREDIT RISK

CGA
shall not assume the risk of default by the obligors.

ARTICLE
7:  FINANCING OF THE
RECEIVABLES

7.1  Maximum
Authorized Amount of Outstanding Loan

CGA shall finance the
receivables up to a limit of a
single aggregate maximum authorized outstanding amount of:

·      EUR 50,000,000
(fifty million Euros).

Such aggregate maximum
outstanding amount shall be a revolving amount. 
It shall be divided among the Participants as follows:

·                  Participant A                          €40 million

·                  Participant B                            €5 million

·                  Participant C                            €5 million

 3
 

This distribution of the maximum outstanding amount
may be changed at any time by the Company with immediate effect, by written
request, within the aggregate amount of EUR 50,000,000.

7.2  Disbursement of
Loan Proceeds

At the
request of the Company or the relevant
Participant, CGA, upon receipt of such request, shall transfer,
available funds by bank transfer (“virement”)
from the current account described
in Article 3 of this Agreement
to the bank account(s) of each relevant Participant.  If the request is received by CGA before 11
AM (French time) on a given business day, the requested available funds shall
be transferred by CGA on the same business day to the bank account(s) of the
relevant Participant.  Requests may be
made by fax, by letter or via our website “CGA Contact”.  Such requests shall be made by a person duly
authorized by the relevant Participant, or by the Company.

Available
funds shall result from the outstanding amounts
of transferred receivables, from which shall be deducted the commissions
set forth in Article 12 hereof, together with the amount retained as set forth
in Article 10.

ARTICLE 8: 
CONTINUATION OF THE AGREEMENT BY PARTICIPANTS A and B

This
Agreement represents the continuation of the Agreement for Assignment of
Accounts Receivable between CGA and the Participants ESSEX NEXANS SAS (Current
Account n° 7783) and ESSEX NEXANS L+K (Current Account n° 7784), dated 22
October 2005.  Accordingly, CGA hereby
agrees, at the request of such Participants, to record the transactions
relating to this Agreement in the current accounts standing with it in respect
of the Agreement presently in effect.

ARTICLE 9:  FIRST
DELIVERY BY PARTICIPANTS B and C

CGA
shall accept the transfer and assignment by substitution/subrogation of all of
the outstanding receivables in respect of the obligors that fall within the
scope of this Agreement, at the request of the Participants.  If the receivables are not free and clear of
rights on the date on which this Agreement is signed, however, such transfer
and assignment shall be made only on the following terms and conditions:

·  prior to delivery of such receivables, the
Participant shall provide to CGA a letter agreeing to obtain a full and complete
release (“letter d’engagement de mainlevée”)
from the banks in respect of receivables involved,

·  on the date on which the current account is
credited with the receivables, the Participant shall repay the banks the amount
of the amount disbursed and made available, by bank transfer from its CGA
current account and shall deliver to CGA the full and complete release of the
assignments from its banks in no more than 24 hours.

ARTICLE 10:  LOAN
RETENTION

An
amount equal to 15% of the outstanding receivables financed hereunder shall be
retained.

This
retained amount shall correspond to an unavailable portion which shall
constitute a surety to secure performance of all the obligations in respect of
principal, commissions, costs and ancillary expenses (credit notes, disputes,
etc.) of the Participants in respect of CGA under this Agreement.

Exercise
of CGA’s rights:  CGA shall have the right to terminate financing of relevant unpaid
receivables 60 days after their
maturity date thereof.

Such
retained amount may be increased by 5 points in case of breach of any of the
following covenants, if not remedied by the Company or relevant Participant
within three business days.

·                  In respect of Participant A
or the Company:

·  Privileges sociaux et fiscaux (tax and
health insurance/social security related benefits) should be less than 5% of known sales (1)

 4
 

The
retention ratio shall be returned to 15% if the covenant is again complied with
and the breach of the covenant is remedied.

(1) chiffre d’affaires
(sales):  line FL of tax return

ARTICLE 11:  AUTHORITY
TO MANAGE AND COLLECT RECEIVABLES

11.1 Definition of Authority

As
owner of the receivables by virtue of
subrogation, CGA accordingly shall be the only entity authorized to
collect payments in respect of the receivables.

In connection with this Agreement, however, CGA hereby designates the Participants to collect
the amount of the assigned receivables
paid by subrogation.  During the
term of this authority, the
Participants, therefore, shall be excused from informing the obligors thereof of the existence of
this Agreement and from
including the subrogation payment
clauses in favor of CGA on the invoices
that they send to them.

CGA
undertakes not to contact the obligors directly or indirectly, except in the
event that the appointment is revoked or if so expressly requested in writing by the Participants.

11.2  Collection of the
Receivables

Each Participant agrees to apply its normal collection procedures, and, in
general, to take all reasonable steps that may be necessary to protect CGA’s rights.  Neither the Company nor the Participants
shall have the right, in connection with their collection authority, to
commence any legal proceedings against an obligor or to appoint counsel or
engage collection agents for collection purposes without the prior written
consent of CGA.  Likewise, CGA shall not
have the right to require the Company or any of the Participants to undertake
collection steps, provided, however, that, should a Participant refuse to take
collection steps at CGA’s request, CGA shall have the right to terminate the
collection authority of such Participant on the terms and conditions set forth
in Article 11.5.

Each Participant shall inform CGA of any change may be made in its collection procedures.

11.3 Receipt of Payments

There
shall be opened in CGA’s name for each Participant a bank account which will be
dedicated to receiving payments from
the obligors.  The references of
each of such accounts shall be given in
writing to each relevant Participant.

Each Participant, as a result of the authority granted hereby, shall receive payments as depositor and agrees:

·                                          promptly to deliver the payment instruments relating to the assigned receivables to
the dedicated account of such
Participant and inform CGA thereof,

·                                          to request the obligors to make their bank transfers (“virements”)
directly to the dedicated account of
such Participant and provide
CGA with a copy of such request.  Any
bank transfers credited to
another account shall be returned
immediately to the dedicated account of the affected Participant.

In case
of breach of such obligations, and if the affected Participant fails to remedy
such breach within 3 business days, CGA shall have the right to reduce the
payments to be made to it, or to debit its bank account in respect of the
amounts involved, without prejudice to any other legal action CGA might have in
such case against such
Participant

If a
Participant’s current account is debited, the debit note shall have the effect
of repaying CGA only if the available portion of the current account of such Participant has an adequate
credit balance.

Each Participant hereby authorizes CGA to credit its relevant current account
with any remittance that CGA may
receive in the name of such Participant,
regardless of its date or purpose.

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11.4 Information Relating to Performance of
the Collection Authority

Each Participant hereby agrees to transmit to CGA, on a monthly basis, no later than
the 10th business day
of the following month, the following documents established as of the last day
of the month involved:

·                  Reconciliation statement prepared on the basis of the
form supplied by CGA

and by
electronic file:

·                                          a complete list of obligors
showing their exact identity with their SIREN number, for French customers,
their intracommunity VAT number for customers domiciled in a member state of
the European Union, and the number of registration with the local commercial
registry for obligors that are located outside the European Union.

·                                          a detailed statement of each obligor’s account;

·                                          a monthly list of amounts not yet due;

Furthermore, each Participant agrees to transmit from time to time a copy of the deposit
slips in respect of the payment instruments.

Finally
each Participant agrees to
transmit to CGA a complete list of its financialpartner institutions with their
full contact information.

11.5 Cancellation of the Collection
Authority

In case
of a material breach by a Participant of its obligations under this Agreement
and if such Participant fails to remedy such breach within 3 business days
after written notification thereof by CGA to such Participant (with a copy to
the Company), CGA may cancel the agency authority and proceed directly with the
collection and receipt of the assigned receivables covered thereby.  Such Participant, in such case, shall provide
any and all useful assistance to CGA.

CGA
shall attempt to give such Participant a period of ten business days in France,
Germany, and the United Kingdom to allow it to explain such change to the
obligors, or, upon request, take back all of the receivables theretofore
assigned, on the condition that CGA have been paid the amount of such
receivables.

If the
agency is terminated in a manner requiring notice to the obligors, CGA shall
invoice the handling expenses as follows:

·                                          EUR 5 (excluding taxes) per obligor and EUR 6
(excluding taxes) per invoice* for transactions in France,

·                                          EUR 16 (excluding taxes) per obligor  and EUR 8 (excluding taxes) per invoice*
for transactions in Germany,

·                                          GBP 10 (excluding taxes) per obligor  and GBP 5 (excluding taxes) per invoice*
for transactions in the United Kingdom.

The
notice shall be made by CGA in accordance with legal rules applicable in the
countries of each obligor.  Such terms
and conditions shall be indicated in a separate letter.  CGA shall recover the postal costs related to
the notice from the Participant.

* borne
by CGA as at the date of cancellation of the agency.

ARTICLE 12: 
COMPENSATION OF CGA

In
connection with this Agreement, fees and commissions received by CGA shall be
subject to VAT, if appropriate.

 6
 

12.1 Service Commission

CGA
shall receive, monthly, a service commission (excluding tax) of EUR 6 700.  Such amount shall be due and payable at the
beginning of each month.

12.2 Financing Commission

CGA
shall receive, on a monthly basis, in arrears, a financing commission (excluding tax) calculated at CGA’s rate plus
0.35 % per annum, payable upon receipt of invoice by each relevant Participant.

The
financing commission shall be prorated in proportion to the withdrawals
recorded as a debit to the current account as from the day of such withdrawal until the actual collection by
CGA of payments or reimbursements received, or until the date of exercise by
CGA of its right of recourse as set forth in Article 10.

CGA’s
rate shall be defined as a rate resulting, for each calendar month, from the
arithmetic average of the EONIA* rate for the period from the last business day
of the previous month until the last but one working day of the then current
month.

*EONIA:  European Overnight Index Average published
daily by the European Central Bank

For a
facility deemed to be drawn on a one-time basis in the maximum amount
authorized and a value at the CGA rate as of 30 April 2007 of 3.826%, the daily
TEG shall be 0.0116%, and the annual global effective rate shall be 4.23%.

ARTICLE 13 - DISCLOSURE

The Participants agree to
deliver to CGA, as soon as available and, in any event, no later than 6 months
from the closing date of the applicable fiscal year:  a balance sheet, income statement and the
notes thereto, certified true and correct and certified, as the case may be, by
the Statutory Auditors thereof.

They shall immediately
inform CGA of any changes in respect of powers and authority under their
Articles of Association, to any delegation of authority granted, or to any
Standard Terms and Conditions of Sale, that have been heretofore delivered to
CGA.

Participants B and C
agree to deliver a certificate relating to their being current in respect of
tax and health insurance/social security payments within 15 business days of
the closing date of their fiscal year.

The Participants agree to
inform CGA of any change that occurs in ownership of their share capital,
whether in connection with a change relating to the breakdown of ownership of the
subsidiaries that are Participants between or among companies controlled,
directly or indirectly, by Superior Essex Inc. (the “SUPERIOR ESSEX Group”), or
in connection with a sale or transfer of shares in the share capital of the
Participants to one (or more) companies outside the SUPERIOR ESSEX Group.

ARTICLE 14  TERM AND
TERMINATION

This
Agreement shall be made for a term of 3 years as from the date on which it is
signed.

The
Company (acting for itself and on behalf of the Participants) may terminate it
at any time, upon two months’ prior notice. 
CGA shall then receive an amount corresponding to 18 months of Service
Commission.  It is understood and agreed
that, if the Company should terminate this Agreement after a period of 18
months from the date of signature, no penalty shall be due, provided that CGA
has effectively received an amount equal to 18 months of service commissions.

 7
 

CGA may terminate the Agreement without prior notice in the
following cases:

·                                          force majeure (fire, strike, destruction or material impossibility
for CGA to conduct its business, etc.);

·                                          the appointment of a bankruptcy administrator (“administrateur judiciaire”) (or its
equivalent in English, German, or Italian law), voluntary liquidation or
cessation of the business of a Participant;

·                                         any
change that occurs in ownership of the share capital of the Participants by
sale/transfer of shares in the share capital of the Participants to one (or
more) companies outside the SUPERIOR ESSEX Group, unless expressly accepted by
CGA.

·                                          any conduct or substantial breach by any of the
Participants of any of its contractual obligations which might have the result
of making it impossible for CGA to obtain full or partial payment of the
assigned receivables and which is not remedied by the said Participant within 2
business days after a written notice sent by CGA to such Participant (with copy
to the Company).

ARTICLE 15: 
JURISDICTION AND VENUE.

This
Agreement shall be exclusively subject to French law.

The
Parties hereby agree that the Tribunal de Commerce
(Commercial Court) of Bobigny shall have jurisdiction to settle any dispute in
respect of this Agreement, provided, however, that CGA shall have the right
also to submit disputes to other courts and venues that have jurisdiction in
accordance with applicable law.

ARTICLE 16 – EFFECTIVE DATE

Effective
date:

Made in
five originals, in , on

	
  THE COMPANY(1)

  	
   

  	
  CGA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE PARTICIPANTS(2)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ESSEX NEXANS

  	
   

  	
  ESSEX NEXANS L+K GmbH

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ESSEX NEXANS UK

  	
   

  	
   

  

 

(1) Corporate seal and title or authority of person
signing.

(2) Corporate seal and
title or authority of person signing.

 8

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