Document:

EXECUTIVE EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the “Agreement”) is
dated effective as of the 1st day of January, 2001 (the “Effective
Date”), between Superior Telecommunications Inc. (the “Company”), a Delaware
corporation, and Christopher L. Mapes (the “Executive”).

 

W  I  T  N
E  S  S  E  T  H

 

WHEREAS, the
Executive is currently employed as the President of the OEM Group of the
Company;

 

WHEREAS, the Company
and the Executive desire to enter into an employment agreement, effective as of
the date set forth above; and

 

WHEREAS, the parties
hereto desire to set forth in writing the terms and conditions of their
understandings and agreements.

 

NOW THEREFORE, in
consideration of the foregoing, of the mutual promises contained herein and of
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

 

1.                                       POSITION/DUTIES.

 

(a)           During the Employment Term, the
Executive shall serve as President of the OEM Group of the Company with such
responsibilities, duties and authority as are from time to time assigned to the
Executive by the Chief Executive Officer of Superior TeleCom Inc. (the
“Parent”, together with the Company and its affiliated companies, the “Group”)
and/or the President and Chief Operating Officer of the Parent.  The Executive’s duties shall be performed
primarily at the headquarters office for the OEM Group as it may exist from
time to time, which is currently located in Fort Wayne, Indiana.

 

(b)           During the Employment Term (as
hereinafter defined), and excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote all or
substantially all of his full business time, energy and skill in the
performance of his duties for the Company and to perform faithfully and
efficiently such duties.  During the
Employment Term, it shall not be a violation of this Agreement for the
Executive to (A) serve on corporate, civic or charitable boards or committees,
provided that the Chief Executive Officer of the Parent first approves of such
service and (B) manage personal investments, so long as such activities do not
significantly interfere with the performance of the Executive’s
responsibilities as an employee of the Company in accordance with this
Agreement and are not directly competitive with the operating businesses of the
Group.

 

 

(c)           Notwithstanding anything to the
contrary in this Section 1, the Executive agrees to serve without
additional compensation, if elected or appointed thereto, as a director of the
Company and any of its subsidiaries and in one or more executive offices of any
of the Company’s subsidiaries, provided that the Executive is indemnified for
serving in any and all such capacities.

 

2.             EMPLOYMENT
TERM.  The Executive’s term
of employment under this Agreement (such term of employment is herein referred
to as the “Employment Term”) commenced on the Effective Date and shall continue
until terminated by either party as provided in Section 8.  In no event, however, shall the Employment
Term extend beyond the end of the month in which the Executive’s sixty-fifth
birthday occurs.

 

3.             BASE
SALARY.  During the
Employment Term, the Company agrees to pay the Executive a base salary (“Base
Salary”) at an annual rate of not less than $225,000 or such higher rate as may
from time to time by determined by the board of directors of the Parent (the
“Parent Board”) or an authorized committee thereof, payable in substantially
equal installments accordance with the normal payroll practices of the
Company.  The Executive’s Base Salary
shall be subject to annual review by the Parent Board (or an authorized
committee thereof) and shall be increased as of each anniversary of the
Effective Date pursuant to such review by a percentage no less than the
percentage increase in the consumer price index, as published by the Bureau of
Labor Statistics of the U.S.  Department
of Labor, for the calendar year immediately preceding such review.  Any increase in Base Salary shall not serve
to limit or reduce any other obligation to the Executive under this
Agreement.  Base Salary shall not be
reduced after any such increase and the term Base Salary as utilized in this
Agreement shall refer to Base Salary as so increased.

 

4.             ANNUAL
BONUS.  During the Employment
Term, in addition to the Base Salary, the Company will pay the Executive an
annual cash bonus (the “Annual Bonus”) within 90 days following the last day of
the Parent’s fiscal year for which the Annual Bonus is awarded pursuant to the
Parent’s Senior Management Annual Incentive Plan; provided, however, on or
after a SUT Change of Control (as defined in Appendix A) the dollar amount of
the Annual Bonus shall be at least equal to the Executive’s highest cash bonus
under the Parent’s annual cash bonus program, or any comparable cash bonus
under any predecessor or successor plan, for the last three full fiscal years
prior to such SUT Change of Control. 
The Executive expressly acknowledges that he is currently designated
within salary band 27 for annual incentive compensation purposes.

 

5.             EMPLOYEE BENEFITS

 

(a)           WELFARE
BENEFITS.  During the
Employment Term, the Executive and/or the Executive’s family, as the case may
be, shall be eligible for participation in and shall receive all benefits under
welfare benefit plans, practices, policies and programs provided by the Company
(including, without limitation, medical, prescription, dental, disability,
salary continuance, employee life, group life, accidental death and travel
accident insurance plans and programs) to the extent applicable generally 

 

2

 

to peer executives of the
Company, but in no event shall such plans, practices, policies and programs
provide the Executive with benefits which are materially less favorable, in the
aggregate, than the most favorable of such plans, practices, policies and
programs in effect for the Executive as of the date hereof or, if more
favorable to the Executive, those provided generally at any time to any other
peer executive of the Company.

 

(b)           INCENTIVE,
SAVINGS AND RETIREMENT PLANS. 
During the Employment Term, the Executive shall be entitled to
participate in all incentive, savings and retirement plans, practices, policies
and programs applicable generally to peer executives of the Company.  The Executive expressly acknowledges that
the Parent intends to adopt, and to name the Executive as a participant in, a
Senior Executive Retirement Plan (the “SERP”). 
For purposes of calculating the Executive’s benefit under the SERP and
for purposes of determining the amount of the Executive’s vested rights under
the SERP as of the Effective Date, the Executive shall be treated as having
completed 5 years of service with the Group as of the Effective Date.  Additionally, the Executive shall be treated
as having completed 2 additional years of service with the Group for purposes
of calculating the Executive’s benefit under the SERP and for purposes of
determining the amount of the Executive’s vested rights under the SERP at each of
December 31, 2001, December 31, 2002, December 31, 2003, December 31, 2004 and
December 31, 2005, provided that the Executive is employed by the Group on each
such date.

 

(c)           FRINGE
BENEFITS.  During the
Employment Term:

 

(i)            The Company shall
reimburse the Executive for the reasonable expenses incurred by the Executive
in undergoing an annual physical examination by a licensed physician.

 

(ii)           The Company shall
reimburse the Executive for the reasonable expenses incurred by the Executive
in connection with obtaining professional tax and financial planning advice,
not to exceed $3,000 per annum.

 

(d)           VACATION.  During the Employment Term, the Executive
shall be entitled to paid vacation of four weeks per year, any unused portion
of which shall be forfeited as of the end of each year.

 

(e)           EXPENSES.  During the Employment Term, the Executive
shall be entitled to receive prompt reimbursement for all reasonable and
customary expenses incurred by the Executive in performing services hereunder,
including (i) all expenses of travel and living expenses while away from home
or business or at the request of and in the service of the Company and (ii) a
monthly automobile cash allowance of $1,000.

 

(f)            DISABILITY
OFFSET.  Payments made to the
Executive pursuant to this Section 5 shall be reduced by the sum of the
amounts, if any, payable to the Executive at or prior to the time of any such
payment under disability benefit plans of the Company or under the Social
Security disability insurance program, and which amounts were not previously
applied to reduce any such payments.

 

3

 

6.             STOCK OPTIONS.

 

(a)           NEW
OPTION GRANT.  The Executive
expressly acknowledges that, as of January 2, 2001 (the “Grant Date”), the
Stock Option Committee of the Parent Board granted to the Executive an option
(the “Option”) to purchase 78,482 shares of the Parent’s common stock, par
value $.01 (the “Common Stock”) under the Parent’s 1996 Stock Incentive Plan as
amended and restated as of January 1, 2001 and as may be in effect from time to
time (the “1996 Stock Incentive Plan”) at an exercise price equal to the fair
market value (as defined in the 1996 Stock Incentive Plan) of the Common Stock
on the Grant Date.  The Option shall, to
the maximum extent permitted by applicable law, be designated as an incentive
stock option within the meaning of Section 422 of the Internal Revenue
Code of 1986, as amended (the “Code”) and to the extent not allowable, the
Option shall be a non-qualified stock option.

 

(b)           REPLACEMENT
OPTION.  The Executive
expressly acknowledges that, as of January 2, 2001 (the “Cancellation Date”),
the Stock Option Committee of the Parent Board has (i) cancelled the
outstanding stock options held by the Executive to purchase 28,056 shares of
Common Stock under the 1996 Stock Incentive Plan and (ii) granted to the
Executive an option under the 1996 Stock Incentive Plan to purchase 21,518
shares of the Parent’s Common Stock (the “Replacement Option”).  The Replacement Option shall have an exercise
price equal to the fair market value (as defined in the 1996 Stock Incentive
Plan) of the Common Stock on the date the Replacement Option grant is made,
have the same exercise conditions (including methods of exercise) as the
cancelled stock options and expire on the tenth anniversary of the Cancellation
Date.  The Executive hereby expressly
consents to the aforementioned cancellation of the 28,056 stock options
pursuant to this Section 6(b).

 

(c)           VESTING.  The Option and the Replacement Option shall
each vest and become exercisable in installments as provided herein, which
shall be cumulative.  Subject to the
terms in this Section 6, the Option and the Replacement Option shall each
vest and become exercisable in equal annual installments of 33 % each, on the
first, second and third anniversary of the Grant Date, with respect to the
Option, and on the first, second and third anniversary of the Cancellation Date
with respect to the Replacement Option, provided the Executive is employed by
the Group on each such vesting date.  In
the event of the Executive’s termination of employment (i) by the Executive
other than because of death, Disability (as defined below) or Good Reason or
(ii) by the Company for Cause, all stock options to purchase shares of Common
Stock (including, without limitation, the Option and the Replacement Option)
not theretofore exercisable will lapse and be forfeited.  In the event the Executive’s employment is
terminated for any other reason, including, without limitation, a termination
because of death or Disability, Good Reason or without Cause, all stock options
to purchase shares of Common Stock (including, without limitation, the Option
and the Replacement Option) not theretofore exercisable will thereupon become
exercisable.

 

(d)           FORM
OF OPTION.  The Option and
the Replacement Option shall be granted pursuant to and, to the extent not
contrary to the terms of this Agreement, 

 

4

 

shall be subject to all of the
terms and conditions imposed under the Parent’s standard stock option agreement
and the 1996 Stock Incentive Plan or any other stock option plan sponsored by
Parent.

 

(e)           DISCRETIONARY
GRANTS.  In addition to the
Option and Replacement Option grants, at the sole discretion of the Parent
Board (or a duly authorized committee thereof), the Executive shall be eligible
for additional annual grants of stock options commencing after December 31,
2002.

 

(f)            REPURCHASE
RIGHT.  (i)     General. 
The Replacement Option granted to the Executive pursuant to
Section 6(b) shall be subject to a right of repurchase (“Repurchase
Right”) by the Parent under this Section 6(f).  The Repurchase Right entitles the Parent to repurchase, in
accordance with the provisions of this Section 6(f), 100% of the then
unexercised portion of the Replacement Option (whether vested or unvested) held
by the Executive.  If the Parent elects
to exercise its Repurchase Right, it shall be required to pay the Executive the
Repurchase Price, in the amount and manner described herein, for the
Replacement Option.  The Repurchase
Right may not be exercised by the Parent more than one time or with respect to
less than all of the unexercised portion of the Replacement Option (whether
vested or unvested) held by the Executive. 
If the Repurchase Right is exercised by the Parent, it must be exercised
with respect to 100% of the unexercised portion of the Replacement Option
(whether vested or unvested) held by the Executive. The provisions of this
Section 6(f) shall be contained in the written option award agreement to
be entered into between the Executive and the Parent with respect to the
Replacement Option.

 

(ii)           Exercise of
Repurchase Right.  The Parent may
exercise its Repurchase Right by providing written notice to the Executive
which shall advise the Executive that it is exercising its Repurchase Right
with respect to the Replacement Option and such notice shall also state the
closing date and time for the exercise of the Repurchase Right and payment of
the Repurchase Price, which date shall be no later than 15 days following the
Notice Date, as defined herein. The date that the Parent provides written
notice of its intent to exercise the Replacement Option shall be referred to
hereinafter as the “Notice Date.” The Executive shall have ten days following
the Notice Date to exercise all or any portion of the vested Replacement
Option.

 

(iii)          Repurchase
Price.  If the Parent elects to exercise
its Repurchase Right with respect to the Replacement Option it shall be
required to pay the Executive the repurchase price (“Repurchase Price”) for the
Replacement Option.  The Repurchase
Price shall be a dollar amount equal to the sum of (x) the Fair Market Value,
as defined herein, of all shares of the Common Stock covered by the Replacement
Option subject to the Repurchase Right reduced by the aggregate exercise price
of the Replacement Option plus (y) a dollar amount which reflects the
additional value, if any, of the Replacement Option as determined by the Parent
Board (or an authorized committee thereof) in its sole discretion which value
may be based on an adjusted Black-Scholes basis or such 

 

5

 

other method
determined by the Parent Board (or an authorized committee thereof) in its sole
discretion.  Notwithstanding the
foregoing provisions of this Section 6(f)(iii), the Repurchase Price paid
for the repurchase of a Replacement Option shall in no event be computed on the
basis of a Fair Market Value of less than $6.00 per share of the Common Stock
plus the exercise price of the Replacement Option.  For purposes of this Section 6(f), the term “Fair Market
Value” shall mean the average of the closing price reported for the Common
Stock, as reported by the principal national securities exchange in the United
States on which it is then traded or if not traded on any national securities
exchange, as quoted on an automated quotation system sponsored by the National
Association of Securities Dealers, during the twenty (20) trading days
immediately preceding the Notice Date.

 

(iv)          Payment of
Repurchase Price.  The Parent shall pay
the Executive the Repurchase Price pursuant to any of the following methods:
(A) cash payment; (B) Cash Equivalents, as defined herein; (C) restricted
shares of Common Stock which shall be subject to a three year annual vesting
schedule commencing on the closing date of the Parent’s exercise of its
Repurchase Right and where one-third portion of the restricted stock shall be
fully vested on the repurchase closing date and the balance of the shares shall
become fully vested in equal installments of 33-1/3% each, on the first and
second anniversaries of the closing date; or (D) any combination of any of the
foregoing methods.  For purposes of this
Section 6(f), the term “Cash Equivalent” shall mean any of the following:
(i) securities issued or directly and fully guaranteed or insured by the United
States of America (“U.S.”) or any agency or instrumentality thereof provided
the full faith and credit of the U.S. is pledged in support thereof; (ii)
certificates of deposit of any commercial bank in the U.S. having capital and
surplus in an aggregate amount of not less than $500,000,000 (hereinafter, an
“Approved Bank”) and with maturities of not more than twelve months from the
date of acquisition; (iii) U.S. Dollar denominated commercial paper issued by
an Approved Bank with maturities of not more than twelve months after the date
of acquisition; and (iv) investments in money market funds substantially all
the assets of which are comprised of securities of the types described in (i)
through (iii) herein.

 

(v)           Expiration of
Repurchase Right.  The Parent’s
Repurchase Right shall automatically expire and terminate on July 1, 2002.

 

(g)           ELIGIBILITY
FOR DEFERRAL.  The Option,
Replacement Option and any restricted shares of Common Stock subject to a
vesting schedule that are provided to the Executive under Section 7 of  this Agreement shall be eligible for
deferral by the Executive under the Parent’s Deferred Stock Account Plan in
accordance with the terms and provisions of such plan.  In addition, if the Parent exercises its
Repurchase Right with respect to the Replacement Option held by the Executive,
the proceeds received by the Executive from the Parent following such exercise
shall be eligible for deferral by the Executive under the Parent’s Deferred
Cash Account Plan, to the extent the proceeds are paid in cash or Cash
Equivalents, and shall be eligible for deferral under the Parent’s Deferred
Stock Account Plan, to the extent 

 

6

 

the proceeds are paid in
restricted shares of Common Stock under Section 6(f)(iv) of this
Agreement.  Deferrals made by the
Executive under the Parent’s Deferred Cash Account Plan shall be subject to the
terms and provisions of such plan.  The
Executive expressly acknowledges that the Parent’s Deferred Stock Account Plan
has been amended, effective as of January 1, 2001, to provide that no matching
contribution will be made under the Parent’s Deferred Stock Account Plan with
respect to any deferral made in connection with any bonus paid by the Company
during the period commencing on January 1, 2001 and ending on December 31, 2001
or any eligible stock option granted during the period commencing on January 1,
2001 and ending on December 31, 2001.

 

7.             RESTRICTED
STOCK.  The Executive
expressly acknowledges that, as of January 2, 2001, the Stock Option Committee
of the Parent Board has granted to the Executive 30,000 restricted shares of
Common Stock, which restricted shares have been set aside in the custody,
control and possession of the Parent and have and will be released to the
Executive at the rate of 25% on January 2, 2002, 25% on January 2, 2003
and 50% on January 2, 2004.  In the
event of the Executive’s termination of 
employment prior to the third anniversary of the Effective Date (i) by
the Executive other than because of death, Disability (as defined below) or
Good Reason or (ii) by the Company for Cause, then the scheduled releases on
any subsequent anniversary of the Effective Date shall be cancelled and all
restricted shares of Common Stock not theretofore released shall be forfeited
by the Executive and shall be cancelled and retired by the Parent.  In the event the Executive’s employment is
terminated for any other reason prior to the third anniversary of the Effective
Date, including, without limitation, a termination because of death or
Disability, Good Reason or without Cause, all restricted shares of Common Stock
(including, without limitation, restricted shares of Common Stock granted
pursuant to this Section 7) not theretofore released shall thereupon
become released to the Executive.

 

8.             TERMINATION.  The Executive’s employment and the
Employment Term shall terminate without any breach of this Agreement on the
first of the following to occur:

 

(a)           DISABILITY.  Upon 90 days’ written notice by the Company
to the Executive of termination due to Disability during the Employment Term,
provided that, within the 90 days after such receipt, the Executive shall not
have returned to full-time performance of the Executive’s duties.  For purposes of this Agreement, “Disability”
shall mean the absence of the Executive from the Executive’s duties with the
Company on a full-time basis for 180 consecutive days (or such shorter period
as will suffice for the Executive to qualify for full disability benefits under
the applicable disability insurance policy or policies of the Company) as a
result of incapacity due to mental or physical illness which is determined to
be total and permanent by a physician selected by the Company or its insurers
and reasonably acceptable to the Executive or the Executive’s legal
representative.

 

7

 

(b)           DEATH.  Automatically on the date of death of the
Executive during the Employment Term.

 

(c)           CAUSE.  Immediately upon written notice by the
Company to the Executive of a termination for Cause during the Employment Term
provided, such notice is given within 90 days of the discovery of the Cause event
by the Chief Executive Officer of the Parent and/or the President and Chief
Operating Officer of the Parent.  For
purposes of this Agreement, “Cause” shall mean:

 

(i)            the willful and
continued failure of the Executive to perform substantially the Executive’s
duties pursuant to this Agreement (other than any such failure resulting from
incapacity due to physical or mental illness), after a written demand for
substantial performance is delivered to the Executive by the Chief Executive
Officer of the Parent and/or the President and Chief Operating Officer of the
Parent which specifically identifies the manner in which the Chief Executive
Officer of the Parent and/or the President and Chief Operating Officer of the
Parent believes that the Executive has not substantially performed the
Executive’s duties; or

 

(ii)           the willful
engaging by the Executive in illegal conduct or gross misconduct which is
materially and demonstrably injurious to the Group.

 

For purposes of this provision,
no act or failure to act, on the part of the Executive, shall be considered
“willful” unless it is done, or omitted to be done, by the Executive in bad
faith or without reasonable belief that the Executive’s action or omission was
in the best interests of the Group.  Any
act, or failure to act, based upon authority given pursuant to a resolution
duly adopted by the board of directors of the Company (the “Company Board”) or
the Parent Board or upon the instructions of the Chief Executive Officer of the
Parent and/or the President and Chief Operating Officer of the Parent or based
upon the advice of counsel for the Company shall be conclusively presumed to be
done, or omitted to be done, by the Executive in good faith and in the best
interests of the Company.

 

(d)           WITHOUT
CAUSE.  Upon 60 days’ written
notice by the Company to the Executive of an involuntary termination without
Cause during the Employment Term.

 

(e)           GOOD
REASON.  Upon written notice
by the Executive to the Company of a termination for Good Reason during the
Employment Term provided, such notice is given within 90 days of the
Executive’s discovery of the Good Reason event.  For purposes of this Agreement, “Good Reason” shall mean:

 

(i)            the assignment to
the Executive of any duties materially inconsistent with the Executive’s position
(including status, titles and reporting requirements), authority, duties or
responsibilities as contemplated by Section 1(a) of this Agreement, or any
other action by the Company which results in a material diminution in such
position, authority, duties or responsibilities, excluding for this purpose
isolated and inadvertent action(s) not taken in bad faith 

 

8

 

and remedied
by the Company promptly after receipt of notice thereof given by the Executive;

 

(ii)           any material
failure by the Company to comply with any of the material provisions of this
Agreement, other than isolated and inadvertent failure(s) not occurring in bad
faith and remedied by the Company promptly after receipt of notice thereof given
by the Executive;

 

(iii)          any termination by
the Company of the Executive’s employment otherwise than as expressly permitted
by this Agreement;

 

(iv)          any failure by the
Company to comply with and satisfy Section 16(a) of this Agreement; or

 

(v)           during any
Transition Period, any failure of the Company to provide the Executive with an
office or offices of a size and with furnishings and other appointments, and to
personal secretarial and other assistance, at least equal to the most favorable
of the foregoing provided to the Executive by the Company at any time during
the 120-day period immediately preceding the Change of Control or, if more
favorable to the Executive, those provided generally at any time after the
Change of Control to any other peer executive of the Company.

 

(f)            WITHOUT
GOOD REASON.  Upon 120 days’
written notice by the Executive to the Company of the Executive’s voluntary
termination of employment without Good Reason (which the Company may, in its
sole discretion, make effective earlier than any notice date).

 

(g)           NOTICE
OF TERMINATION.  Any
termination of the Executive’s employment by the Company or by the Executive
(other than termination by reason of the Executive’s death) shall be
communicated by written Notice of Termination to the other party hereto in
accordance with Section 17 hereof. 
For purposes of this Agreement, a “Notice of Termination” means a
written notice which (i) indicates the specific termination provision in this
Agreement relied upon (ii) other than in connection with a termination pursuant
to Section 8(d), to the extent applicable, sets forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated and (iii) if the date
of termination is other than the date of receipt of such notice, specifies the
termination date.  The good faith
failure by the Executive or the Company to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Good
Reason or Cause shall not waive any right of the Executive or the Company,
respectively, hereunder or preclude the Executive or the Company, respectively,
from asserting such fact or circumstance in enforcing the Executive’s or the
Company’s rights hereunder.  If within
30 days after any Notice of Termination is given the party receiving such
Notice of Termination notifies the other party that a dispute exists concerning
the termination, the date of termination shall be the date on which the dispute
is finally determined, either by 

 

9

 

mutual written agreement of the
parties, by a binding and final arbitration award or by a final judgment, order
or decree of a court of competent jurisdiction (the time for appeal therefrom
having expired and no appeal having been perfected).

 

9.             COMPENSATION UPON TERMINATION.

 

(a)           COMPENSATION
UPON TERMINATION FOR DISABILITY. 
If the Executive’s employment by the Company is terminated by reason of
the Executive’s Disability during the Employment Term, the Company shall pay or
provide the Executive the sum of (i) the Executive’s Base Salary through the
date of termination to the extent not theretofore paid, (ii) the product of (x)
the Annual Bonus paid or payable, including any bonus or portion thereof which
has been earned but deferred, for the most recently completed fiscal year, if
any (the “Annual Bonus Amount”), multiplied by (y) a fraction, the numerator of
which is the number of days in the current fiscal year through the date of
termination, and the denominator of which is 365, (iii) any compensation
previously deferred by the Executive (together with any accrued interest or
earnings thereon) and any accrued vacation pay, in each case to the extent not
theretofore paid and (iv) reimbursement for any unreimbursed expenses incurred
through the date of termination (the sum of the amounts described in clauses
(i), (ii), (iii) and (iv)) shall be referred to in this Agreement as the
“Accrued Obligations”).  The Accrued
Obligations shall be paid to the Executive in a lump sum in cash within 30 days
of the date of termination.

 

In addition,
to the extent not theretofore paid or provided, the Company shall timely pay or
provide to the Executive’s legal representatives any other amounts or benefits
required to be paid or provided or which the Executive is eligible to receive
under any plan, program, policy or practice or contract or agreement of the
Company (such other amounts and benefits shall be referred to in this Agreement
as the “Other Benefits”). 
Notwithstanding the foregoing, if the Executive’s employment by the
Company is terminated by reason of the Executive’s Disability during the period
commencing six months prior to a Divisional Change of Control or SUT Change of
Control and ending on the third anniversary of a Divisional Change of Control
or SUT Change of Control (the “Transition Period”), the term “Other Benefits”
shall include, and the Executive shall be entitled after the date of
termination to receive, disability and other benefits at least equal to the
most favorable of those generally provided by the Company to disabled
executives and/or their families in accordance with such plans, programs,
practices and policies relating to disability, if any, as in effect generally
with respect to peer executives and their families at any time during the
120-day period immediately preceding the Divisional Change of Control or SUT
Change of Control or, if more favorable to the Executive and/or the Executive’s
family, as in effect at any time thereafter generally with respect to any other
peer executive of the Company and their families.

 

Notwithstanding
the foregoing, the Company shall maintain, at the Company’s sole expense, in
full force and effect, for the continued benefit of the Executive for 12 months
following the date of termination, all employee welfare benefit 

 

10

 

plans and programs in which the
Executive was entitled to participate immediately prior to the date of
termination provided that the Executive’s continued participation is possible
under the general terms and provisions of such plans and programs (“Continued
Welfare Benefits”).  In the event that
the Executive’s participation in any such plan or program is barred, the
Company shall arrange to provide the Executive with benefits substantially
similar to those which the Executive would otherwise have been entitled to
receive under such plans and programs from which his continued participation is
barred.

 

(b)           COMPENSATION
UPON TERMINATION FOR DEATH. 
If the Executive’s employment by the Company is terminated by reason of
the Executive’s death during the Employment Term, the Company shall (i) pay the
Accrued Obligations and an amount equal to the sum of the Executive’s Base
Salary in effect immediately prior to termination and the Annual Bonus Amount
to the Executive’s legal representatives, in a lump sum in cash within 30 days
of the date of termination; and (ii) timely pay or provide the Other Benefits;
and (iii) timely pay or provide the Continued Welfare Benefits for twelve
months following the date of termination. Notwithstanding the foregoing, if the
Executive’s employment by the Company is terminated by reason of the
Executive’s death during the Transition Period, the term Other Benefits shall
include, without limitation, and the Executive’s estate and/or beneficiaries
shall be entitled to receive, benefits at least equal to the most favorable
benefits provided by the Company to the estates and beneficiaries of peer executives
of the Company under such plans, programs, practices and policies relating to
death benefits, if any, as in effect with respect to the most senior executives
and their beneficiaries at any time during the 120-day period immediately
preceding the Divisional Change of Control or SUT Change of Control or, if more
favorable to the Executive’s estate and/or the Executive’s beneficiaries, as in
effect on the date of the Executive’s death with respect to any other peer
executive of the Company and their beneficiaries.

 

(c)           COMPENSATION
UPON TERMINATION FOR CAUSE. 
If the Executive’s employment is terminated for Cause during the
Employment Term, this Agreement shall terminate without further obligation to
the Executive, except that the Company shall pay or provide the Executive the
sum of (i) the Executive’s Base Salary through the date of termination, (ii)
the amount of any compensation previously deferred by the Executive and (iii)
Other Benefits, in each case to the extent theretofore unpaid.

 

(d)           COMPENSATION
UPON TERMINATION WITHOUT GOOD REASON.  If the Executive’s employment is terminated by the Executive
without Good Reason during the Employment Term, this Agreement shall terminate
without further obligation to the Executive, except that the Company shall (i)
pay the Accrued Obligations (other than the amount described in Section
9(a)(ii)) to the Executive in a lump sum in cash within 30 days of the date of
termination; and (ii) timely pay or provide the Other Benefits.

 

(e)           COMPENSATION
UPON TERMINATION WITHOUT CAUSE OR FOR GOOD REASON.  If the Executive’s employment by the Company
is terminated by the Company other than for Cause in accordance with
Section 8(d) hereof 

 

11

 

or by the Executive for Good Reason
in accordance with Section 8(e) hereof (i) the Company shall pay to the
Executive a lump sum in cash within 30 days of the date of termination in an
amount equal to (x) the sum of (1) the Base Salary in effect immediately prior
to termination and (2) the greater of the Annual Bonus paid or payable,
including any bonus or portion thereof which has been earned but deferred, for
the most recently completed fiscal year (if any) plus (y) the Accrued
Obligations; and (ii) the Company shall timely pay or provide the Other
Benefits.

 

(f)            COMPENSATION
UPON TERMINATION WITHOUT CAUSE OR FOR GOOD REASON FOLLOWING A DIVISIONAL CHANGE
OF CONTROL OR SUT CHANGE OF CONTROL.

 

(i)            If the Executive’s
employment by the Company is terminated by the Company without Cause or by
Executive for Good Reason at any time during the Transition Period (as defined
in Section 9(a)) relating to a Divisional Change of Control, then the
Company shall pay or provide the Executive with the following payments and
benefits as soon as practical following the later of the date of the
Executive’s termination or the date of the Divisional Change of Control but in
no event later than 30 days following the Divisional Change of Control (except
as specifically otherwise provided herein):

 

(A)          the Company shall pay
to the Executive in a lump sum in cash within 30 days after the date of
termination the aggregate of the following amounts:

 

(1)     Accrued Obligations;

 

(2)     a lump sum cash payment
equal to two times the sum of (x) Executive’s Base Salary in effect immediately
prior to termination and (y) the highest Annual Bonus paid or payable to the
Executive during the two full fiscal years prior to the Divisional Change of
Control or SUT Change of Control but in no event less than 45% of the
Executive’s Base Salary in effect for fiscal year 2001; and

 

(3)     an amount equal to the
excess of (x) the actuarial equivalent of the benefit under the Group’s defined
benefit retirement plans, including any excess or supplemental retirement plan
in which the Executive participates (together, the “Retirement Plans”)
(utilizing actuarial assumptions no less favorable to the Executive than those
in effect under the Retirement Plans immediately prior to the Divisional Change
of Control or SUT Change of Control), which the Executive would receive if the
Executive’s employment continued for two years after the date of termination
(including any additional years of service that would have been credited
pursuant to the last sentence Section 5(b)) assuming for this purpose that all
accrued benefits are fully vested, and, assuming that the Executive’s
compensation in each of the two years 

 

12

 

is that
required by Sections 3 and 4, reduced by (y) the actuarial equivalent of
the Executive’s actual benefit (paid or payable), if any, under the Retirement
Plans as of the date of termination.

 

(B)           for two years after
the Executive’s date of termination, or such longer period as may be provided
by the terms of the appropriate plan, program, practice or policy, the Company
shall continue benefits to the Executive and/or the Executive’s family at least
equal to those which would have been provided to them in accordance with the
plans, programs, practices and policies described in Section 5(a) of this
Agreement if the Executive’s employment had not been terminated or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to any other peer executive of the Company and their families,
provided, however, that if the Executive becomes reemployed with another
employer and is eligible to receive medical or other welfare benefits under
another employer provided plan, the medical and other welfare benefits
described herein shall be secondary to those provided under such other plan
during such applicable period of eligibility. For purposes of determining
eligibility (but not the time of commencement of benefits) of the Executive for
retiree benefits pursuant to such plans, practices, programs and policies, the
Executive shall be considered to have remained employed until two years after
the date of termination and to have retired on the last day of such period;

 

(C)           the Company shall,
at its sole expense as incurred, provide the Executive with outplacement
services the scope and provider of which shall be selected by the Executive in
his sole discretion, and which shall include the provision of reasonable office
space and secretarial assistance for the Executive, up to a maximum of $30,000;

 

(D)          timely pay or provide
the Other Benefits;

 

(E)           the Parent shall
cause all stock options to purchase shares of Common Stock (including, without
limitation, the Option and the Replacement Option) and restricted shares of
Common Stock held by or for the benefit of the Executive to become immediately
fully vested and/or exercisable upon the occurrence of a Divisional Change of
Control or SUT Change of Control; and

 

(F)           notwithstanding
anything to the contrary in subparagraph (ii) above, for two years after the
Executive’s date of termination, Executive shall be entitled, consistent with
past practice, to receive a monthly automobile cash allowance of $1,000.

 

(ii)           If the Executive’s
employment by the Company is terminated by the Company without Cause or by
Executive for Good Reason at

 

13

 

any time
during the Transition Period (as defined in Section 9(a)) relating to a
SUT Change of Control, then the Company shall pay or provide the Executive with
the following payments and benefits as soon as practical following the later of
the date of the Executive’s termination or the date of the SUT Change of
Control but in no event later than 30 days following the SUT Change of Control
(except as specifically otherwise provided herein):

 

(A)          the Company shall pay
to the Executive in a lump sum in cash within 30 days after the date of
termination the aggregate of the following amounts:

 

(1)     Accrued Obligations;

 

(2)     a lump sum cash payment
equal to three times the sum of (x) Executive’s Base Salary in effect
immediately prior to termination and (y) the highest Annual Bonus paid or
payable to the Executive during the three full fiscal years prior to the
Divisional Change of Control or SUT Change of Control but in no event less than
45% of the Executive’s Base Salary in effect for fiscal year 2001; and

 

(3)     an amount equal to the
excess of (x) the actuarial equivalent of the benefit under the Group’s defined
benefit retirement plans, including any excess or supplemental retirement plan
in which the Executive participates (together, the “Retirement Plans”)
(utilizing actuarial assumptions no less favorable to the Executive than those
in effect under the Retirement Plans immediately prior to the Divisional Change
of Control or SUT Change of Control), which the Executive would receive if the
Executive’s employment continued for three years after the date of termination
(including any additional years of service that would have been credited
pursuant to the last sentence Section 5(b)) assuming for this purpose that all
accrued benefits are fully vested, and, assuming that the Executive’s
compensation in each of the three years is that required by Sections 3 and
4, reduced by (y) the actuarial equivalent of the Executive’s actual benefit
(paid or payable), if any, under the Retirement Plans as of the date of
termination.

 

(B)           for three years
after the Executive’s date of termination, or such longer period as may be
provided by the terms of the appropriate plan, program, practice or policy, the
Company shall continue benefits to the Executive and/or the Executive’s family
at least equal to those which would have been provided to them in accordance
with the plans, programs, practices and policies described in Section 5(a)
of this Agreement if the Executive’s employment had not been terminated or, if
more favorable to the Executive, as in effect generally at any time thereafter
with respect to any other peer executive of the Company and their families,
provided, however, that if the Executive becomes 

 

14

 

reemployed
with another employer and is eligible to receive medical or other welfare
benefits under another employer provided plan, the medical and other welfare
benefits described herein shall be secondary to those provided under such other
plan during such applicable period of eligibility. For purposes of determining
eligibility (but not the time of commencement of benefits) of the Executive for
retiree benefits pursuant to such plans, practices, programs and policies, the
Executive shall be considered to have remained employed until three years after
the date of termination and to have retired on the last day of such period;

 

(C)           the Company shall,
at its sole expense as incurred, provide the Executive with outplacement
services the scope and provider of which shall be selected by the Executive in
his sole discretion, and which shall include the provision of reasonable office
space and secretarial assistance for the Executive, up to a maximum of $30,000;

 

(D)          timely pay or provide
the Other Benefits;

 

(E)           the Parent shall
cause all stock options to purchase shares of Common Stock (including, without
limitation, the Option and the Replacement Option) and restricted shares of
Common Stock held by or for the benefit of the Executive to become immediately
fully vested and/or exercisable upon the occurrence of a Divisional Change of
Control or SUT Change of Control; and

 

(F)           notwithstanding
anything to the contrary in subparagraph (ii) above, for three years after the
Executive’s date of termination, Executive shall be entitled, consistent with
past practice, to receive a monthly automobile cash allowance of $1,000.

 

10.           EXCISE TAX. In the event that the Executive
becomes entitled to payments and/or benefits which would constitute “parachute
payments” within the meaning of Section 280G(b)(2) of the Code, the
provisions of Exhibit B shall apply.

 

11.           STOCK OPTIONS AND
COMPANY STOCK.

 

(a)           In the event of the Executive’s
death, whether his death occurs during or after the Employment Term, all
unexercised and exercisable stock options to purchase shares of Common Stock
(including, without limitation, the Option and the Replacement Option) will be
assigned to his estate.

 

(b)           In the event of the termination of
the employment of the Executive for any reason, all unexercised and exercisable
stock options (including, without limitation, the Option and the Replacement
Option) must be exercised by him, or his estate (or heir(s)) as the case may
be, before the second anniversary of the termination of his employment, but in
no event after the tenth anniversary of the date of grant thereof, and any such
stock options not exercised by that date will lapse immediately thereafter.

 

15

 

(c)           In the event of any change in the
number of issued shares of Common Stock resulting from a subdivision or
consolidation of shares or other capital adjustment, or the payment of a stock
dividend, or other increase or decrease in such shares, then appropriate adjustments
in the terms of any unexercised stock options shall be made by the Stock Option
Committee of the Parent Board.

 

12.           NON-EXCLUSIVITY OF RIGHTS.  Nothing in this Agreement shall prevent or
limit the Executive’s continuing or future participation in any plan, program,
policy or practice provided by the Company and for which the Executive may
qualify, nor, subject to Section 21, shall anything herein limit or
otherwise affect such rights as the Executive may have under any contract or
agreement with the Company.  Amounts
which are vested benefits or which the Executive is otherwise entitled to
receive under any plan, policy, practice or program of or any contract or
agreement with the Company at or subsequent to the date of termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

 

13.           LEGAL FEES.  Following any termination of the Executive’s employment that
gives rise to a right to payments and benefits under Section 9(f) or,
during the Transition Period, Sections 9(a) or 9(b), the Company shall pay
as incurred, to the full extent permitted by law, all legal fees and expenses
which the Executive may reasonably incur as a result of any contest (regardless
of the outcome thereof) by the Company, the Executive or others of the validity
or enforceability of, or liability under, any provision of this Agreement or
any guarantee of performance thereof (including as a result of any contest by
the Executive about the amount of any payment pursuant to this Agreement), plus
in each case interest on any delayed payment at the applicable Federal rate
provided for in Section 7872(f)(2)(A) of the Code.

 

14.           NONCOMPETITION AND CONFIDENTIALITY.

 

(a)           So long as the Executive is employed
by the Company under this Agreement and for the one (1) year period following
the Executive’s termination of employment for any reason, the Executive shall
not, directly or indirectly, without the prior written consent of the Company,
enter into Competition with the Group. 
“Competition” shall mean participating, directly or indirectly, as an
individual proprietor, partner, stockholder, officer, employee, director, joint
venturer, investor, lender, consultant or in any capacity whatsoever in a business
in competition with any business conducted by the Group, with regard to which
the Executive had responsibilities or had access to confidential information,
while employed by the Company.  It is
further expressly agreed that the Company will or would suffer irreparable
injury if the Executive were to compete with the Group in violation of this
Agreement and that the Group would by reason of such competition be entitled to
injunctive relief in a court of appropriate jurisdiction, and the Executive further
consents and stipulates to the entry of such injunctive relief in such a court
prohibiting the Executive from competing with the Group in violation of this
Agreement.

 

16

 

(b)           During the Employment Term and any
period thereafter during which or in respect of which the Executive receives
payments from the Company under Section 9, the Executive shall hold in a
fiduciary capacity for the benefit of the Group all secret or confidential
information, knowledge or data relating to the Group, and their respective
businesses, which shall have been obtained by the Executive during the
Executive’s employment by the Company and which shall not be or become public
knowledge (other than by acts by the Executive or representatives of the
Executive in violation of this Agreement). 
After termination of the Executive’s employment with the Company, the
Executive shall not, without the prior written consent of the Company or as may
otherwise be required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than the Group and those
designated by it.  In no event shall an
asserted violation of the provisions of this Section 14 constitute a basis
for deferring or withholding any amounts otherwise payable to the Executive
under Section 9(f) or, during the Transition Period, Sections 9(a) or
9(b) of this Agreement.

 

(c)           The obligations contained in this
Section 14 shall survive the termination or expiration of the Executive’s
employment with the Company and shall be fully enforceable thereafter.  If it is determined by a court of competent
jurisdiction in any state that any restriction in this Section 14 is excessive
in duration or scope or extends for too long a period of time or over too great
a range of activities or in too broad a geographic area or is unreasonable or
unenforceable under the laws of that state, it is the intention of the parties
that such restriction may be modified or amended by the court to render it
enforceable to the maximum extent permitted by the law of that state.

 

15.           FULL SETTLEMENT.  The Company’s obligation to make the payments provided for in
this Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim,
right or action which the Company may have against the Executive or
others.  In no event shall the Executive
be obligated to seek other employment or take any other action by way of
mitigation of the amounts payable to the Executive under any of the provisions
of this Agreement.  Unless the
Executive’s termination of employment gives rise to a right to payments and
benefits described in Section 9(f) or, during the Transition Period,
Sections 9(a) or 9(b), if the Executive secures other employment, any
benefits the Company is required to provide to the Executive following
termination of the Executive’s employment shall be secondary to those provided
by another employer (if any).  However,
if the Executive’s employment is terminated such that the Executive has a right
to payments and benefits under Section 9(f) or, during the Transition
Period, Sections 9(a) or 9(b), such amounts shall not be reduced whether
or not the Executive obtains other employment.

 

16.           SUCCESSORS; BINDING
AGREEMENT.

 

(a)           The Company will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company, by agreement in form and substance satisfactory to the Executive, to
expressly assume and agree to perform this Agreement in the same 

 

17

 

manner and to the same extent
that the Company would be required to perform it if no such succession had taken
place.  Failure of the Company to obtain
such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of the Agreement and shall entitle the Executive to
compensation from the Company in the same amount and on the same terms as he
would be entitled to hereunder if he terminated his employment for Good Reason,
except that for purposes of implementing the foregoing, the date on which any
such succession becomes effective shall be deemed the date of termination.  As used in the Agreement, Company shall mean
the Company as herein before defined and any successor to its business and/or
assets as aforesaid which executes and delivers the agreement provided for in
this Section 16 or which otherwise becomes bound by all the terms and
provisions of this Agreement by operation of law.

 

(b)           This Agreement and all rights of the
Executive hereunder shall inure to the benefit of and be enforceable by the
Executive’s personal or legal representatives, executors, administrators, successors,
heirs, distributees, devises and legatees. 
If the Executive should die while any amounts would still be payable to
him hereunder if he had continued to live, all such amounts unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement
to the Executive’s devise, legatee, or other designee or, if there be no such
designee, to the Executive’s estate.

 

17.           NOTICE. 
For the purposes of this Agreement, notices, demands and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or (unless otherwise specified)
mailed by United States certified or registered mail, return receipt requested,
postage prepaid, addressed as follows:

 

If to the
Executive:

 

At the address
shown on the records of the Company

 

If to the
Company:

 

Superior
Telecommunications Inc.

c/o Superior
TeleCom Inc.

One
Meadowlands Plaza

Suite 200

East
Rutherford, NJ 07073

Attention:
President and Chief Operating Officer

 

With a copy to:

 

Superior
TeleCom Inc.

One
Meadowlands Plaza

Suite 200

East
Rutherford, NJ 07073

Attention:  General Counsel

 

18

 

or to such
other address as any party may have furnished to the others in writing in accordance
herewith, except that notices of change of address shall be effective only upon
receipt.

 

18.           MISCELLANEOUS.  No provisions of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in
writing signed by the Executive and such officer of the Company as may be
specifically designated by the Company Board. 
No waiver by either party hereto at any time of any breach by the other
party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not set forth
expressly in this Agreement.  The
validity, interpretation, construction and performance of this Agreement shall
be governed by the laws of New York without regard to its conflicts of law
principles.

 

19.           VALIDITY. 
The invalidity or unenforceability of any provision or provisions of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

 

20.           COUNTERPARTS.  This Agreement may be executed in one or more counterparts, each
of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

 

21.           ENTIRE AGREEMENT.  This Agreement together with all exhibits and attachments hereto
sets forth the entire agreement of the parties hereto in respect of the subject
matter contained herein and supersedes all prior agreements, promises,
covenants, arrangements, communications, representations or warranties, whether
oral or written, by any officer, employee or representative of any party
hereto; and any prior agreement of the parties hereto in respect of the subject
matter contained herein is hereby terminated and cancelled, provided, however,
that this Agreement should not supersede any existing benefit or agreement
which provides such benefit, including, without limitation, life or disability
insurance agreements and retirement plans currently in effect.

 

22.           INDEMNIFICATION.  The Company hereby covenants and agrees to indemnify the
Executive and hold him harmless to the fullest extent permitted by law and
under the By-laws of the Company against and in respect to any and all actions,
suits, proceedings, claims, demands, judgments, costs, expenses (including
reasonable attorneys’ fees), losses, and damages resulting from the Executive’s
good faith performance of his duties and obligations hereunder.  The Company, within 10 days of presentation
of invoices, shall advance to the Executive reimbursement of all legal fees and
disbursements incurred by the Executive in connection with any potentially
indemnifiable matter.  The Company will
cover the Executive under directors’ and officers’ liability insurance both
during and, while potential liability exists (for such reasonable period taking
into account the applicable statute of limitations but in no event 

 

19

 

for less than
six years), after the Executive’s termination of employment in the same amount
and to the same extent as the Company covers its other officers and directors.

 

23.           WITHHOLDING TAXES.  The Company may withhold from any and all
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.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first written
above.

 

	
   

  	
  SUPERIOR
  TELECOMMUNICATIONS INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	 

	
   

  
	
   

  	
  CHRISTOPHER
  L. MAPES

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
							

 

20

 

EXHIBIT A

 

CHANGE OF CONTROL

 

For purposes
of this Agreement, a “SUT Change of Control” shall mean the occurrence of any
of the following events at a time when or as a result of which The Alpine
Group, Inc. (“Alpine”) owns less than 50% of the Outstanding Parent Voting
Securities (as defined below):

 

(a)           the acquisition by any individual,
entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than
Alpine (a “Person”), of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of voting securities of the
Parent where such acquisition causes such Person to own more than 20% or more
of the combined voting power of the then outstanding voting securities of the
Parent entitled to vote generally in the election of directors (the
“Outstanding Parent Voting Securities”) at a time when or as a result of which
Alpine owns less than 30% of the Outstanding Parent Voting Securities;
provided, however, that for purposes of this subsection (a), the following
acquisitions shall not be deemed to result in a Change of Control:  (i) any acquisition directly from the Parent,
(ii) any acquisition by the Parent, (iii) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Parent or any
corporation controlled by the Parent or (iv) any acquisition by any corporation
pursuant to a transaction that complies with clauses (i), (ii) and (iii) of
subsection (c) below; and provided, further, that if any Person’s beneficial
ownership of the Outstanding Parent Voting Securities reaches or exceeds more
than 20% as a result of a transaction described in clause (i) or (ii) above,
and such Person subsequently acquires beneficial ownership of additional voting
securities of the Parent, such subsequent acquisition shall be treated as an
acquisition that causes such Person to own more than 20% or more of the
Outstanding Parent Voting Securities; or

 

(b)           individuals who, as of the date
hereof, constitute the Parent Board (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Parent Board; provided,
however, that any individual becoming a director subsequent to the date hereof
whose election, or nomination for election by the Parent’s shareholders, was
approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual were a member of
the Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Parent Board; or

 

(c)           the consummation of a reorganization,
merger or consolidation or sale or other disposition of all or substantially
all of the assets of the Parent or the acquisition of assets of another
corporation (“Business Combination”); excluding, however, such a Business
Combination pursuant to which (i) all or substantially all of the individuals
and entities who were the beneficial owners of the Outstanding Parent Voting
Securities 

 

 

immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 50%
of, respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation that as a result of such transaction owns the Parent or all or
substantially all of the Parent’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Parent Voting
Securities and (ii) at least a majority of the members of the board of
directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Parent Board, providing for such Business Combination;
or

 

(d)           approval by the shareholders of the
Parent of a complete liquidation or dissolution of the Parent.

 

For purposes
of this Agreement, a “Divisional Change of Control” shall mean the occurrence
of any of the following: (i) the sale of all or substantially all of the assets
of the Company’s OEM 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”) to an unrelated entity;
or (iii) the merger or consolidation of an OEM Entity into an unrelated entity;
provided, however, that no Divisional Change of Control shall be deemed to
occur if the Executive continues to be chiefly responsible for the assets and
business which comprised the Company’s OEM Group immediately prior to the
occurrence of an event that, but for this proviso, would otherwise constitute a
Divisional Change of Control.

 

For purposes
of this Exhibit A, an unrelated entity is an entity (i) with respect to which
35% or more of such entity is not owned, directly or indirectly, by Steven S.
Elbaum, the Company, the Parent, The Alpine Group, Inc. (“AGI”), any of their
majority–owned subsidiaries or the holders of the outstanding voting
securities of the Parent or AGI immediately prior to the time of the
determination of whether there has occurred a Divisional Change of Control or
SUT Change of Control, as applicable; or (ii) which is not an employee benefit
plan (or related trust) of the Company, the Parent, AGI or any of their
majority–owned subsidiaries.

 

A-2

 

EXHIBIT B

 

GOLDEN PARACHUTE PROVISIONS

 

(a)           Anything in this Agreement to the
contrary notwithstanding and except as set forth below, in the event it shall
be determined that any payment or distribution by the Group to or for the
benefit of the Executive (whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this
Exhibit B) (a “Payment”) would be subject to the excise tax imposed by
Section 4999 of the Code or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), then the Executive shall be entitled to receive an additional
payment (a “Gross-Up Payment”) in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  Notwithstanding the foregoing, if it shall
be determined that the Executive is entitled to a Gross-Up Payment, but that
the Payments do not exceed 110% of the greatest amount (the “Reduced Amount”)
that could be paid to the Executive such that the receipt of Payments would not
give rise to any Excise Tax, then no Gross-Up Payment shall be made to the
Executive and the Payments, in the aggregate, shall be reduced to the Reduced
Amount.

 

(b)           Subject to the provisions of
paragraph (c), all determinations required to be made under this Exhibit B,
including whether and when a Gross-Up Payment is required and the amount of
such Gross-Up Payment and the assumptions to be utilized in arriving at such
determination, shall be made by Arthur Andersen LLP or such other certified
public accounting firm as may be designated by the Executive (the “Accounting
Firm”) which shall provide detailed supporting calculations both to the Parent
and the Executive within 15 business days of the receipt of notice from the
Executive that there has been a Payment, or such earlier time as is requested
by the Parent.  In the event that the
Accounting Firm is serving as accountant or auditor for the individual, entity
or group effecting the Change of Control or other change of ownership as
defined under Section 280G of the Code, the Executive shall appoint
another nationally recognized accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the
Accounting Firm hereunder).  All fees
and expenses of the Accounting Firm shall be borne solely by the Parent.  Any Gross-Up Payment, as determined pursuant
to this Exhibit B, shall be paid by the Parent to the Executive within five
days of the receipt of the Accounting Firm’s determination.  Any determination by the Accounting Firm
shall be binding upon the Group and the Executive.  As a result of the uncertainty in the application of
Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments which will not
have been made by the Parent should have been made (“Underpayment”),

 

 

consistent with the
calculations required to be made hereunder. 
In the event that the Parent exhausts its remedies pursuant to paragraph
(c) and the Executive thereafter is required to make a payment of any Excise
Tax, the Accounting Firm shall determine the amount of the Underpayment that
has occurred and any such Underpayment shall be promptly paid by the Parent to
or for the benefit of the Executive.

 

(c)           The Executive shall notify the Parent
in writing of any claim by the Internal Revenue Service that, if successful,
would require the payment by the Parent of the Gross-Up Payment.  Such notification shall be given as soon as
practicable but no later than 10 business days after the Executive is informed
in writing of such claim and shall apprise the Parent of the nature of such
claim and the date on which such claim is requested to be paid.  The Executive shall not pay such claim prior
to the expiration of the 30–day period following the date on which it
gives such notice to the Parent (or such shorter period ending on the date that
any payment of taxes with respect to such claim is due).  If the Parent notifies the Executive in
writing prior to the expiration of such period that it desires to contest such
claim, the Executive shall:

 

(i)            give the Parent any information
reasonably requested by the Parent relating to such claim,

 

(ii)           take such action in connection with
contesting such claim as the Parent shall reasonably request in writing from
time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Parent,

 

(iii)          cooperate with the Parent in good
faith in order effectively to contest such claim, and

 

(iv)          permit the Parent to participate in
any proceedings relating to such claim;

 

provided,
however, that the Parent shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold the Executive harmless, on an after-tax
basis, for any Excise Tax or income tax (including interest and penalties with
respect thereto) imposed as a result of such representation and payment of
costs and expenses.  Without limitation
on the foregoing provisions of this paragraph (c), the Parent shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner, and the Executive agrees
to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Parent shall determine; provided, however, that if the Parent
directs the Executive to pay such claim and sue for a refund, the Parent shall
advance the amount of such payment to the Executive, on an interest-free basis
and shall 

 

B-2

 

indemnify and hold the
Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such
advance; and further provided that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount.  Furthermore, the
Parent’s control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and the Executive shall be
entitled to settle or contest, as the case may be, any other issue raised by
the Internal Revenue Service or any other taxing authority.

 

(d)           If, after the receipt by the
Executive of an amount advanced by the Parent pursuant to paragraph (c), the
Executive becomes entitled to receive any refund with respect to such claim,
the Executive shall (subject to the Parent’s complying with the requirements of
paragraph (c)) promptly pay to the Parent the amount of such refund (together
with any interest paid or credited thereon after taxes applicable thereto).  If, after the receipt by the Executive of an
amount advanced by the Parent pursuant to paragraph (c), a determination is
made that the Executive shall not be entitled to any refund with respect to
such claim and the Parent does not notify the Executive in writing of its
intent to contest such denial of refund prior to the expiration of 30 days
after such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.

 

B-3EXECUTIVE EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the “Agreement”) is
dated effective as of the 1st day of January, 2001 (the “Effective
Date”), between Superior Telecommunications Inc. (the “Company”), a Delaware
corporation, and Harold M. Karp (the “Executive”).

 

W  I  T  N
E  S  S  E  T  H

 

WHEREAS, the
Executive is currently employed as the President of the Electrical Group of the
Company;

 

WHEREAS, the Company
and the Executive desire to enter into an employment agreement, effective as of
the date set forth above; and

 

WHEREAS, the parties
hereto desire to set forth in writing the terms and conditions of their
understandings and agreements.

 

NOW THEREFORE, in
consideration of the foregoing, of the mutual promises contained herein and of
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

 

1.         POSITION/DUTIES.

 

(a)      During the Employment
Term, the Executive shall serve as President of the Electrical Group of the Company
with such responsibilities, duties and authority as are from time to time
assigned to the Executive by the Chief Executive Officer of Superior TeleCom
Inc. (the “Parent”, together with the Company and its affiliated companies, the
“Group”) and/or the President and Chief Operating Officer of the Parent.  The Executive’s duties shall be performed
primarily at the Company’s offices in Fort Wayne, Indiana or, if so agreed, as
otherwise mutually agreed in writing between the Executive and the Company.

 

(b)      During the Employment
Term (as hereinafter defined), and excluding any periods of vacation and sick
leave to which the Executive is entitled, the Executive agrees to devote all or
substantially all of his full business time, energy and skill in the performance
of his duties for the Company and to perform faithfully and efficiently such
duties.  During the Employment Term, it
shall not be a violation of this Agreement for the Executive to (A) serve on
corporate, civic or charitable boards or committees, provided that the Chief
Executive Officer of the Parent first approves of such service and (B) manage
personal investments, so long as such activities do not significantly interfere
with the performance of the Executive’s responsibilities as an employee of the
Company in accordance with this Agreement and are not directly competitive with
the operating businesses of the Group.

 

 

(c)      Notwithstanding anything
to the contrary in this Section 1, the Executive agrees to serve without
additional compensation, if elected or appointed thereto, as a director of the
Company and any of its subsidiaries and in one or more executive offices of any
of the Company’s subsidiaries, provided that the Executive is indemnified for
serving in any and all such capacities.

 

2.         EMPLOYMENT TERM.  The Executive’s term of employment under this Agreement (such
term of employment is herein referred to as the “Employment Term”) commenced on
the Effective Date and shall continue until terminated by either party as
provided in Section 8.  In no
event, however, shall the Employment Term extend beyond the end of the month in
which the Executive’s sixty-fifth birthday occurs.

 

3.         BASE SALARY.  During the Employment Term, the Company agrees to pay the
Executive a base salary (“Base Salary”) at an annual rate of not less than
$250,000 or such higher rate as may from time to time by determined by the
board of directors of the Parent (the “Parent Board”) or an authorized
committee thereof, payable in substantially equal installments accordance with the
normal payroll practices of the Company. 
The Executive’s Base Salary shall be subject to annual review by the
Parent Board (or an authorized committee thereof) and shall be increased as of
each anniversary of the Effective Date pursuant to such review by a percentage
no less than the percentage increase in the consumer price index, as published
by the Bureau of Labor Statistics of the U.S. 
Department of Labor, for the calendar year immediately preceding such review.  Any increase in Base Salary shall not serve
to limit or reduce any other obligation to the Executive under this
Agreement.  Base Salary shall not be
reduced after any such increase and the term Base Salary as utilized in this
Agreement shall refer to Base Salary as so increased.

 

4.         ANNUAL BONUS.  During the Employment Term, in addition to the Base Salary, the
Company will pay the Executive to the extent, if any, awarded pursuant to the
Parent’s Senior Management Annual Incentive Plan from time to time in effect,
of an annual cash bonus (the “Annual Bonus”) within 90 days following the last
day of the Parent’s fiscal year for which the Annual Bonus is awarded pursuant
to such Parent’s Senior Management Annual Incentive Plan; provided, however, on
or after a SUT Change of Control (as defined in Appendix A) the dollar amount
of the Annual Bonus shall be at least equal to the Executive’s highest cash
bonus under the Parent’s annual cash bonus program, or any comparable cash
bonus under any predecessor or successor plan, for the last three full fiscal
years prior to such SUT Change of Control. 
The Executive expressly acknowledges that he is currently designated
within salary band 27 for annual incentive compensation purposes.

 

2

 

5.         EMPLOYEE BENEFITS

 

(a)      WELFARE BENEFITS.  During the Employment Term, the Executive and/or the Executive’s
family, as the case may be, shall be eligible for participation in and shall
receive all benefits under welfare benefit plans, practices, policies and
programs provided by the Company (including, without limitation, medical,
prescription, dental, disability, salary continuance, employee life, group
life, accidental death and travel accident insurance plans and programs) to the
extent applicable generally to peer executives of the Company, but in no event
shall such plans, practices, policies and programs provide the Executive with
benefits which are materially less favorable, in the aggregate, than the most
favorable of such plans, practices, policies and programs in effect for the
Executive as of the date hereof or, if more favorable to the Executive, those
provided generally at any time to any other peer executive of the Company.

 

(b)      INCENTIVE, SAVINGS AND RETIREMENT PLANS.  During the Employment Term, the Executive
shall be entitled to participate in all incentive, savings and retirement
plans, practices, policies and programs applicable generally to peer executives
of the Company.  The Executive expressly
acknowledges that the Parent intends to adopt, and to name the Executive as a
participant in, a Senior Executive Retirement Plan (the “SERP”).  For purposes of calculating the Executive’s
benefit under the SERP and for purposes of determining the amount of the
Executive’s vested rights under the SERP as of the Effective Date, the
Executive shall be treated as having completed 5 years of service with the
Group as of the Effective Date. 
Additionally, the Executive shall be treated as having completed 2
additional years of service with the Group for purposes of calculating the
Executive’s benefit under the SERP and for purposes of determining the amount
of the Executive’s vested rights under the SERP at each of December 31, 2001,
December 31, 2002, December 31, 2003, December 31, 2004 and December 31, 2005,
provided that the Executive is employed by the Group on each such date.

 

(c)      FRINGE BENEFITS.  During the Employment Term:

 

(i)        The
Company shall reimburse the Executive for the reasonable expenses incurred by
the Executive in undergoing an annual physical examination by a licensed
physician.

 

(ii)       The
Company shall reimburse the Executive for the reasonable expenses incurred by
the Executive in connection with obtaining professional tax and financial
planning advice, not to exceed $3,000 per annum.

 

(d)      VACATION.  During the Employment Term, the Executive shall be entitled to
paid vacation of four weeks per year, any unused portion of which shall be
forfeited as of the end of each year.

 

(e)      EXPENSES. 
During the Employment Term, the Executive shall be entitled to receive
prompt reimbursement for all reasonable and customary expenses incurred by the
Executive in performing services hereunder, including (i) all expenses of
travel and living

 

3

 

expenses while
away from home or business or at the request of and in the service of the
Company and (ii) a monthly automobile cash allowance of $1,000.

 

(f)       DISABILITY OFFSET.  Payments made to the Executive pursuant to
this Section 5 shall be reduced by the sum of the amounts, if any, payable
to the Executive at or prior to the time of any such payment under disability
benefit plans of the Company or under the Social Security disability insurance
program, and which amounts were not previously applied to reduce any such
payments.

 

6.         STOCK OPTIONS.

 

(a)      NEW OPTION GRANT.  The Executive expressly acknowledges that, as of January 2, 2001
(the “Grant Date”), the Stock Option Committee of the Parent Board granted to
the Executive an option (the “Option”) to purchase 150,000 shares of the
Parent’s common stock, par value $.01 (the “Common Stock”) under the Parent’s
1996 Stock Incentive Plan as amended and restated as of January 1, 2001 and as
may be in effect from time to time (the “1996 Stock Incentive Plan”) at an
exercise price equal to the fair market value (as defined in the 1996 Stock
Incentive Plan) of the Common Stock on the Grant Date.  The Option shall, to the maximum extent
permitted by applicable law, be designated as an incentive stock option within
the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”) and to the extent not allowable, the Option shall be a
non-qualified stock option.  The
Executive expressly acknowledges that, as of January 2, 2001, the Stock Option
Committee of the Parent Board cancelled the outstanding stock options held by
the Executive to purchase 68,333 shares of Common Stock under the 1996 Stock
Incentive Plan.

 

(b)      VESTING. 
The Option shall each vest and become exercisable in installments as
provided herein, which shall be cumulative. 
Subject to the terms in this Section 6, the Option shall each vest
and become exercisable in equal annual installments of 33a% each, on the first,
second and third anniversary of the Grant Date, provided the Executive is
employed by the Group on each such vesting date.  In the event of the Executive’s termination of employment (i) by
the Executive other than because of death, Disability (as defined below) or
Good Reason or (ii) by the Company for Cause, all stock options to purchase
shares of Common Stock (including, without limitation, the Option) not
theretofore exercisable will lapse and be forfeited.  In the event the Executive’s employment is terminated for any
other reason, including, without limitation, a termination because of death or
Disability, Good Reason or without Cause, all stock options to purchase shares
of Common Stock (including, without limitation, the Option) not theretofore
exercisable will thereupon become exercisable.

 

(c)      FORM OF OPTION.  The Option shall be granted pursuant to and, to the extent not
contrary to the terms of this Agreement, shall be subject to all of the terms
and conditions imposed under the Parent’s standard stock option agreement and
the 1996 Stock Incentive Plan or any other stock option plan sponsored by
Parent.

 

4

 

(d)      DISCRETIONARY GRANTS.  In addition to the Option grant, at the sole
discretion of the Parent Board (or a duly authorized committee thereof), the
Executive shall be eligible for additional annual grants of stock options
commencing after December 31, 2002.

 

(e)      ELIGIBILITY FOR DEFERRAL.  The Option and any restricted shares of
Common Stock subject to a vesting schedule that are provided to the Executive
under Section 7 of  this Agreement shall
be eligible for deferral by the Executive under the Parent’s Deferred Stock
Account Plan in accordance with the terms and provisions of such plan.  Deferrals made by the Executive under the
Parent’s Deferred Cash Account Plan shall be subject to the terms and
provisions of such plan.  The Executive
expressly acknowledges that the Parent’s Deferred Stock Account Plan has been
amended, effective as of January 1, 2001, to provide that no matching
contribution will be made under the Parent’s Deferred Stock Account Plan with
respect to any deferral made in connection with any bonus paid by the Company
during the period commencing on January 1, 2001 and ending on December 31, 2001
or any eligible stock option granted during the period commencing on January 1,
2001 and ending on December 31, 2001.

 

7.         RESTRICTED STOCK.  The Executive expressly acknowledges that, as of January 2, 2001,
the Stock Option Committee of the Parent Board has granted to the Executive
30,000 restricted shares of Common Stock, which restricted shares have been set
aside in the custody, control and possession of the Parent and have and will be
released to the Executive at the rate of 25% on January 2, 2002, 25% on
January 2, 2003 and 50% on January 2, 2004.  In the event of the Executive’s termination of  employment prior to the third anniversary of
the Effective Date (i) by the Executive other than because of death, Disability
(as defined below) or Good Reason or (ii) by the Company for Cause, then the
scheduled releases on any subsequent anniversary of the Effective Date shall be
cancelled and all restricted shares of Common Stock not theretofore released
shall be forfeited by the Executive and shall be cancelled and retired by the
Parent.  In the event the Executive’s
employment is terminated for any other reason prior to the third anniversary of
the Effective Date, including, without limitation, a termination because of
death or Disability, Good Reason or without Cause, all restricted shares of
Common Stock (including, without limitation, restricted shares of Common Stock
granted pursuant to this Section 7) not theretofore released shall
thereupon become released to the Executive.

 

8.         TERMINATION.  The Executive’s employment and the Employment Term shall
terminate without any breach of this Agreement on the first of the following to
occur:

 

(a)      DISABILITY.  Upon 90 days’ written notice by the Company to the Executive of
termination due to Disability during the Employment Term, provided that, within
the 90 days after such receipt, the Executive shall not have returned to
full-time performance of the Executive’s duties.  For purposes of this Agreement, “Disability” shall mean the
absence of the Executive from the Executive’s duties with the Company on a
full-time basis for 180 consecutive days (or such shorter period as will
suffice for the Executive to qualify for full disability benefits under the
applicable disability insurance policy or policies of the Company) as a result
of incapacity due to mental or physical illness which is determined to be total
and permanent by a physician selected by the Company or its insurers and
reasonably acceptable to the Executive or the Executive’s legal representative.

 

5

 

(b)      DEATH. 
Automatically on the date of death of the Executive during the
Employment Term.

 

(c)      CAUSE. 
Immediately upon written notice by the Company to the Executive of a
termination for Cause during the Employment Term, provided such notice is given
within 90 days of the discovery of the Cause event by the Chief Executive
Officer of the Parent and/or the President and Chief Operating Officer of the
Parent.  For purposes of this Agreement,
“Cause” shall mean:

 

(i)        the
willful and continued failure of the Executive to perform substantially the
Executive’s duties pursuant to this Agreement (other than any such failure
resulting from incapacity due to physical or mental illness), after a written
demand for substantial performance is delivered to the Executive by the Chief
Executive Officer of the Parent and/or the President and Chief Operating
Officer of the Parent which specifically identifies the manner in which the
Chief Executive Officer of the Parent and/or the President and Chief Operating
Officer of the Parent believes that the Executive has not substantially
performed the Executive’s duties; or

 

(ii)       the
willful engaging by the Executive in illegal conduct or gross misconduct which
is materially and demonstrably injurious to the Group.

 

For purposes of this provision,
no act or failure to act, on the part of the Executive, shall be considered
“willful” unless it is done, or omitted to be done, by the Executive in bad
faith or without reasonable belief that the Executive’s action or omission was
in the best interests of the Group.  Any
act, or failure to act, based upon authority given pursuant to a resolution
duly adopted by the board of directors of the Company (the “Company Board”) or
the Parent Board or upon the instructions of the Chief Executive Officer of the
Parent and/or the President and Chief Operating Officer of the Parent or based
upon the advice of counsel for the Company shall be conclusively presumed to be
done, or omitted to be done, by the Executive in good faith and in the best
interests of the Company.

 

(d)      WITHOUT CAUSE.  Upon 60 days’ written notice by the Company to the Executive of
an involuntary termination without Cause during the Employment Term.

 

(e)      GOOD REASON.  Upon written notice by the Executive to the Company of a
termination for Good Reason during the Employment Term provided, such notice is
given within 90 days of the Executive’s discovery of the Good Reason
event.  For purposes of this Agreement,
“Good Reason” shall mean:

 

(i)        the
assignment to the Executive of any duties materially inconsistent with the Executive’s
position (including status, titles and reporting requirements), authority,
duties or responsibilities as contemplated by Section 1(a) of this
Agreement, or any other action by the Company which results in a material
diminution in such position, authority, duties or responsibilities, excluding
for this purpose isolated and

 

6

 

inadvertent action(s) not taken in bad faith
and remedied by the Company promptly after receipt of notice thereof given by the
Executive;

 

(ii)       any
material failure by the Company to comply with any of the material provisions
of this Agreement, other than isolated and inadvertent failure(s) not occurring
in bad faith and remedied by the Company promptly after receipt of notice
thereof given by the Executive;

 

(iii)      the
Company’s requiring the Executive to be based at any office or location other
than as provided in Section 1(a);

 

(iv)     any
termination by the Company of the Executive’s employment otherwise than as
expressly permitted by this Agreement;

 

(v)      any
failure by the Company to comply with and satisfy Section 16(a) of this
Agreement; or

 

(vi)     during
any Transition Period, any failure of the Company to provide the Executive with
an office or offices of a size and with furnishings and other appointments, and
to personal secretarial and other assistance, at least equal to the most
favorable of the foregoing provided to the Executive by the Company at any time
during the 120-day period immediately preceding the Change of Control or, if
more favorable to the Executive, those provided generally at any time after the
Change of Control to any other peer executive of the Company.

 

(f)       WITHOUT GOOD REASON.  Upon 120 days’ written notice by the
Executive to the Company of the Executive’s voluntary termination of employment
without Good Reason (which the Company may, in its sole discre­tion, make
effective earlier than any notice date).

 

(g)      NOTICE OF TERMINATION.  Any termination of the Executive’s
employment by the Company or by the Executive (other than termination by reason
of the Executive’s death) shall be communicated by written Notice of
Termination to the other party hereto in accordance with Section 17
hereof.  For purposes of this Agreement,
a “Notice of Termination” means a written notice which (i) indicates the
specific termination provision in this Agreement relied upon (ii) other than in
connection with a termination pursuant to Section 8(d), to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive’s employment under the
provision so indicated and (iii) if the date of termination is other than the
date of receipt of such notice, specifies the termination date.  The good faith failure by the Executive or
the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any
right of the Executive or the Company, respectively, hereunder or preclude the
Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing the Executive’s or the Company’s rights
hereunder.  If within 30 days after any
Notice of Termination is given the party receiving such Notice of Termination
notifies the other party

 

7

 

that a dispute
exists concerning the termination, the date of termination shall be the date on
which the dispute is finally determined, either by mutual written agreement of
the parties, by a binding and final arbitration award or by a final judgment,
order or decree of a court of competent jurisdiction (the time for appeal
therefrom having expired and no appeal having been perfected).

 

9.         COMPENSATION UPON TERMINATION.

 

(a)      COMPENSATION UPON TERMINATION FOR DISABILITY.  If the Executive’s employment by the Company
is terminated by reason of the Executive’s Disability during the Employment
Term, the Company shall pay or provide the Executive the sum of (i) the
Executive’s Base Salary through the date of termination to the extent not
theretofore paid, (ii) the product of (x) the Annual Bonus paid or payable,
including any bonus or portion thereof which has been earned but deferred, for
the most recently completed fiscal year, if any (the AAnnual Bonus Amount@),
multiplied by (y) a fraction, the numerator of which is the number of days in
the current fiscal year through the date of termination, and the denominator of
which is 365, (iii) any compensation previously deferred by the Executive (together
with any accrued interest or earnings thereon) and any accrued vacation pay, in
each case to the extent not theretofore paid and (iv) reimbursement for any
unreimbursed expenses incurred through the date of termination (the sum of the
amounts described in clauses (i), (ii), (iii) and (iv)) shall be referred to in
this Agreement as the “Accrued Obligations”). 
The Accrued Obligations shall be paid to the Executive in a lump sum in
cash within 30 days of the date of termination.

 

In addition, to the extent not theretofore paid or provided, the
Company shall timely pay or provide to the Executive’s legal representatives
any other amounts or benefits required to be paid or provided or which the
Executive is eligible to receive under any plan, program, policy or practice or
contract or agreement of the Company (such other amounts and benefits shall be
referred to in this Agreement as the “Other Benefits”).  Notwithstanding the foregoing, if the
Executive’s employment by the Company is terminated by reason of the
Executive’s Disability during the period commencing six months prior to a
Divisional Change of Control or SUT Change of Control and ending on the third
anniversary of a Divisional Change of Control or SUT Change of Control (the
“Transition Period”), the term “Other Benefits” shall include, and the
Executive shall be entitled after the date of termination to receive,
disability and other benefits at least equal to the most favorable of those
generally provided by the Company to disabled executives and/or their families
in accordance with such plans, programs, practices and policies relating to
disability, if any, as in effect generally with respect to peer executives and
their families at any time during the 120-day period immediately preceding the
Divisional Change of Control or SUT Change of Control or, if more favorable to
the Executive and/or the Executive’s family, as in effect at any time
thereafter generally with respect to any other peer executive of the Company
and their families.

 

Notwithstanding the foregoing, the Company shall maintain, at the
Company’s sole expense, in full force and effect, for the continued benefit of
the Executive for 12 months following the date of termination, all employee
welfare benefit plans and programs in which the Executive was entitled to
participate immediately prior to the date of termination provided that

 

8

 

the
Executive’s continued participation is possible under the general terms and
provisions of such plans and programs (AContinued Welfare Benefits@).  In the event that the Executive’s
participation in any such plan or program is barred, the Company shall arrange
to provide the Executive with benefits substantially similar to those which the
Executive would otherwise have been entitled to receive under such plans and
programs from which his continued participation is barred.

 

(b)      COMPENSATION UPON TERMINATION FOR DEATH.  If the Executive’s employment by the Company
is terminated by reason of the Executive’s death during the Employment Term,
the Company shall (i) pay the Accrued Obligations and an amount equal to the
sum of the Executive=s Base Salary in effect immediately prior to termination
and the Annual Bonus Amount to the Executive’s legal representatives, in a lump
sum in cash within 30 days of the date of termination; and (ii) timely pay or
provide the Other Benefits; and (iii) timely pay or provide the Continued
Welfare Benefits for twelve months following the date of termination.
Notwithstanding the foregoing, if the Executive’s employment by the Company is
terminated by reason of the Executive’s death during the Transition Period, the
term Other Benefits shall include, without limitation, and the Executive’s
estate and/or beneficiaries shall be entitled to receive, benefits at least
equal to the most favorable benefits provided by the Company to the estates and
beneficiaries of peer executives of the Company under such plans, programs,
practices and policies relating to death benefits, if any, as in effect with
respect to the most senior executives and their beneficiaries at any time
during the 120-day period immediately preceding the Divisional Change of
Control or SUT Change of Control or, if more favorable to the Executive’s
estate and/or the Executive’s beneficiaries, as in effect on the date of the
Executive’s death with respect to any other peer executive of the Company and
their beneficiaries.

 

(c)      COMPENSATION UPON TERMINATION FOR CAUSE.  If the Executive’s employment is terminated
for Cause during the Employment Term, this Agreement shall terminate without
further obligation to the Executive, except that the Company shall pay or
provide the Executive the sum of (i) the Executive’s Base Salary through the
date of termination, (ii) the amount of any compensation previously deferred by
the Executive and (iii) Other Benefits, in each case to the extent theretofore
unpaid.

 

(d)      COMPENSATION UPON TERMINATION WITHOUT GOOD REASON.  If the Executive’s employment is terminated
by the Executive without Good Reason during the Employment Term, this Agreement
shall terminate without further obligation to the Executive, except that the
Company shall (i) pay the Accrued Obligations (other than the amount described
in Section 9(a)(ii)) to the Executive in a lump sum in cash within 30 days of
the date of termination; and (ii) timely pay or provide the Other Benefits.

 

(e)      COMPENSATION UPON TERMINATION WITHOUT CAUSE OR FOR
GOOD REASON.  If the
Executive’s employment by the Company is terminated by the Company other than
for Cause in accordance with Section 8(d) hereof or by the Executive for
Good Reason in accordance with Section 8(e) hereof (i) the Company shall
pay to the Executive a lump sum in cash within 30 days of the date of
termination in an amount equal to (x) the sum of (1) the Base Salary in effect
immediately prior to termination and (2) the greater of the Annual

 

9

 

Bonus paid or
payable, including any bonus or portion thereof which has been earned but
deferred, for the most recently completed fiscal year (if any) plus (y) the
Accrued Obligations; and (ii) the Company shall timely pay or provide the Other
Benefits.  In addition, the Executive
shall be entitled to relocation benefits pursuant to the Company’s then relocation
benefit program for any relocation from any office or location as provided in
Section 1(a) to the Atlanta metropolitan area; provided, however, that in
no event shall such program provide the Executive with relocation benefits
which are materially less favorable, in the aggregate, than the relocation
program in effect for the Executive as of the Effective Date.  As part of this program, if Executive’s home
at 12019 Crossway Drive, Ft. Wayne, IN is sold at less than the original
purchase price thereof, the Company shall pay Executive any such shortfall in
cash.

 

(f)       COMPENSATION UPON TERMINATION WITHOUT CAUSE OR FOR
GOOD REASON FOLLOWING A DIVISIONAL CHANGE OF CONTROL OR SUT CHANGE OF CONTROL.  If the Executive’s employment by the Company
is terminated by the Company without Cause or by Executive for Good Reason at
any time during the Transition Period (as defined in Section 9(a)), then
the Company shall pay or provide the Executive with the following payments and
benefits as soon as practical following the later of the date of the
Executive’s termination or the date of the Divisional Change of Control or SUT
Change of Control but in no event later than 30 days following the Divisional
Change of Control or SUT Change of Control (except as specifically otherwise
provided herein):

 

(i)        the
Company shall pay to the Executive in a lump sum in cash within 30 days after
the date of termination the aggregate of the following amounts:

 

(A)        Accrued Obligations;

 

(B)        a
lump sum cash payment equal to three times the sum of (x) Executive’s Base
Salary in effect immediately prior to termination and (y) the highest Annual
Bonus paid or payable to the Executive during the three full fiscal years prior
to the Divisional Change of Control or SUT Change of Control but in no event
less than 45% of the Executive’s Base Salary in effect for fiscal year 2001;
and

 

(C)        an
amount equal to the excess of (x) the actuarial equivalent of the benefit under
the Group’s defined benefit retirement plans, including any excess or supplemental
retirement plan in which the Executive participates (together, the “Retirement
Plans”) (utilizing actuarial assumptions no less favorable to the Executive
than those in effect under the Retirement Plans immediately prior to the
Divisional Change of Control or SUT Change of Control), which the Executive
would receive if the Executive’s employment continued for three years after the
date of termination (including any additional years of service that would have
been credited pursuant to the last sentence Section 5(b)) assuming for this
purpose that all accrued benefits are fully vested, and, assuming that the
Executive’s compensation in each of the three years is that required by
Sections 3 and 4, reduced by (y) the actuarial equivalent of the 

 

10

 

Executive’s actual benefit (paid or payable), if any, under the
Retirement Plans as of the date of termination.

 

(ii)       for
three years after the Executive’s date of termination, or such longer period as
may be provided by the terms of the appropriate plan, program, practice or
policy, the Company shall continue benefits to the Executive and/or the
Executive’s family at least equal to those which would have been provided to
them in accordance with the plans, programs, practices and policies described
in Section 5(a) of this Agreement if the Executive’s employment had not
been terminated or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to any other peer executive of the Company
and their families, provided, however, that if the Executive becomes reemployed
with another employer and is eligible to receive medical or other welfare
benefits under another employer provided plan, the medical and other welfare
benefits described herein shall be secondary to those provided under such other
plan during such applicable period of eligibility. For purposes of determining
eligibility (but not the time of commencement of benefits) of the Executive for
retiree benefits pursuant to such plans, practices, programs and policies, the
Executive shall be considered to have remained employed until three years after
the date of termination and to have retired on the last day of such period;

 

(iii)      the
Company shall, at its sole expense as incurred, provide the Executive with
outplacement services the scope and provider of which shall be selected by the
Executive in his sole discretion, and which shall include the provision of
reasonable office space and secretarial assistance for the Executive, up to a
maximum of $30,000;

 

(iv)     timely
pay or provide the Other Benefits;

 

(v)      the
Parent shall cause all stock options to purchase shares of Common Stock
(including, without limitation, the Option) and restricted shares of Common
Stock held by or for the benefit of the Executive to become immediately fully
vested and/or exercisable upon the occurrence of a Divisional Change of Control
or SUT Change of Control;

 

(vi)     notwithstanding
anything to the contrary in subparagraph (ii) above, for three years after the
Executive’s date of termination, Executive shall be entitled, consistent with
past practice, to receive a monthly automobile cash allowance of $1,000; and

 

(vii)    the
Executive shall be entitled to relocation benefits pursuant to the Company’s
then relocation benefit program for any relocation from any office or location
as provided in Section 1(a) to the Atlanta metropolitan area; provided,
however, that in no event shall such program provide the Executive with
relocation benefits which are materially less favorable, in the aggregate, than
the relocation program in effect for the Executive as of the Effective
Date.  As part of this program, if
Executive’s home at 12019

 

11

 

Crossway Drive, Ft. Wayne, IN is sold at less
than the original purchase price thereof, the Company shall pay Executive any
such shortfall in cash.

 

10        EXCISE TAX. In the event that the Executive
becomes entitled to payments and/or benefits which would constitute “parachute
payments” within the meaning of Section 280G(b)(2) of the Code, the
provisions of Exhibit B shall apply.

 

11        STOCK OPTIONS AND COMPANY STOCK.

 

(a)      In the event of the
Executive’s death, whether his death occurs during or after the Employment
Term, all unexercised and exercisable stock options to purchase shares of
Common Stock (including, without limitation, the Option) will be assigned to
his estate.

 

(b)      In the event of the
termination of the employment of the Executive for any reason, all unexercised
and exercisable stock options (including, without limitation, the Option) must
be exercised by him, or his estate (or heir(s)) as the case may be, before the
second anniversary of the termination of his employment, but in no event after
the tenth anniversary of the date of grant thereof, and any such stock options
not exercised by that date will lapse immediately thereafter.

 

(c)      In the event of any
change in the number of issued shares of Common Stock resulting from a
subdivision or consolidation of shares or other capital adjustment, or the
payment of a stock dividend, or other increase or decrease in such shares, then
appropriate adjustments in the terms of any unexercised stock options shall be
made by the Stock Option Committee of the Parent Board.

 

12        NON-EXCLUSIVITY OF RIGHTS.  Nothing in this Agreement shall prevent or
limit the Executive’s continuing or future participation in any plan, program,
policy or practice provided by the Company and for which the Executive may
qualify, nor, subject to Section 21, shall anything herein limit or
otherwise affect such rights as the Executive may have under any contract or
agreement with the Company.  Amounts
which are vested benefits or which the Executive is otherwise entitled to receive
under any plan, policy, practice or program of or any contract or agreement
with the Company at or subsequent to the date of termination shall be payable
in accordance with such plan, policy, practice or program or contract or
agreement except as explicitly modified by this Agreement.

 

13        LEGAL FEES.  Following any termination of the Executive’s employment that
gives rise to a right to payments and benefits under Section 9(f) or,
during the Transition Period, Sections 9(a) or 9(b), the Company shall pay
as incurred, to the full extent permitted by law, all legal fees and expenses
which the Executive may reasonably incur as a result of any contest (regardless
of the outcome thereof) by the Company, the Executive or others of the validity
or enforceability of, or liability under, any provision of this Agreement or
any guarantee of performance thereof (including as a result of any contest by
the Executive about the amount of any payment pursuant to this Agreement), plus
in each case interest on any delayed payment at the applicable Federal rate
provided for in Section 7872(f)(2)(A) of the Code.

 

12

 

14        NONCOMPETITION AND CONFIDENTIALITY.

 

(a)      So long as the Executive
is employed by the Company under this Agreement and for the one (1) year period
following the Executive’s termination of employment for any reason, the
Executive shall not, directly or indirectly, without the prior written consent
of the Company, enter into Competition with the Group.  “Competition” shall mean participating,
directly or indirectly, as an individual proprietor, partner, stockholder,
officer, employee, director, joint venturer, investor, lender, consultant or in
any capacity whatsoever in a business in competition with any business
conducted by the Group, with regard to which the Executive had responsibilities
or had access to confidential information, while employed by the Company.  It is further expressly agreed that the
Company will or would suffer irreparable injury if the Executive were to
compete with the Group in violation of this Agreement and that the Group would
by reason of such competition be entitled to injunctive relief in a court of
appropriate jurisdiction, and the Executive further consents and stipulates to
the entry of such injunctive relief in such a court prohibiting the Executive
from competing with the Group in violation of this Agreement.

 

(b)      During the Employment
Term and any period thereafter during which or in respect of which the
Executive receives payments from the Company under Section 9, the
Executive shall hold in a fiduciary capacity for the benefit of the Group all
secret or confidential information, knowledge or data relating to the Group,
and their respective businesses, which shall have been obtained by the
Executive during the Executive’s employment by the Company and which shall not
be or become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement).  After termination of the Executive’s
employment with the Company, the Executive shall not, without the prior written
consent of the Company or as may otherwise be required by law or legal process,
communicate or divulge any such information, knowledge or data to anyone other
than the Group and those designated by it. 
In no event shall an asserted violation of the provisions of this
Section 14 constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under Section 9(f) or, during the
Transition Period, Sections 9(a) or 9(b) of this Agreement.

 

(c)      The obligations contained
in this Section 14 shall survive the termination or expiration of the
Executive’s employment with the Company and shall be fully enforceable
thereafter.  If it is determined by a
court of competent jurisdiction in any state that any restriction in this
Section 14 is excessive in duration or scope or extends for too long a period
of time or over too great a range of activities or in too broad a geographic
area or is unreasonable or unenforceable under the laws of that state, it is
the intention of the parties that such restriction may be modified or amended
by the court to render it enforceable to the maximum extent permitted by the
law of that state.

 

15        FULL SETTLEMENT.  The Company’s obligation to make the payments provided for in
this Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim,
right or action which the Company may have against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this
Agreement.  Unless the Executive’s 

 

13

 

termination of
employment gives rise to a right to payments and benefits described in
Section 9(f) or, during the Transition Period, Sections 9(a) or 9(b),
if the Executive secures other employment, any benefits the Company is required
to provide to the Executive following termination of the Executive’s employment
shall be secondary to those provided by another employer (if any).  However, if the Executive’s employment is
terminated such that the Executive has a right to payments and benefits under
Section 9(f) or, during the Transition Period, Sections 9(a) or 9(b),
such amounts shall not be reduced whether or not the Executive obtains other
employment.

 

16        SUCCESSORS; BINDING AGREEMENT.

 

(a)      The Company will require
any successor (whether direct or indirect, by purchase, merger, consolidation
or otherwise) to all or substantially all of the business and/or assets of the
Company, by agreement in form and substance satisfactory to the Executive, to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place.  Failure of
the Company to obtain such assumption and agreement prior to the effectiveness
of any such succession shall be a breach of the Agreement and shall entitle the
Executive to compensation from the Company in the same amount and on the same
terms as he would be entitled to hereunder if he terminated his employment for
Good Reason, except that for purposes of implementing the foregoing, the date
on which any such succession becomes effective shall be deemed the date of
termination.  As used in the Agreement,
Company shall mean the Company as herein before defined and any successor to
its business and/or assets as aforesaid which executes and delivers the
agreement provided for in this Section 16 or which otherwise becomes bound
by all the terms and provisions of this Agreement by operation of law.

 

(b)      This Agreement and all
rights of the Executive hereunder shall inure to the benefit of and be
enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devises and legatees.  If the Executive should die while any amounts
would still be payable to him hereunder if he had continued to live, all such
amounts unless otherwise provided herein, shall be paid in accordance with the
terms of this Agreement to the Executive’s devise, legatee, or other designee
or, if there be no such designee, to the Executive’s estate.

 

17        NOTICE. 
For the purposes of this Agreement, notices, demands and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or (unless otherwise specified)
mailed by United States certified or registered mail, return receipt requested,
postage prepaid, addressed as follows:

 

If to the Executive:

 

At the address shown on the records of the Company

 

14

 

If to the Company:

 

Superior
Telecommunications Inc.

c/o Superior
TeleCom Inc.

One
Meadowlands Plaza

Suite 200

East
Rutherford, NJ 07073

Attention:
President and Chief Operating Officer

 

With a copy to:

 

Superior
TeleCom Inc.

One
Meadowlands Plaza

Suite 200

East
Rutherford, NJ 07073

Attention:  General Counsel

 

or to such other address as any party may have furnished to the others
in writing in accordance herewith, except that notices of change of address
shall be effective only upon receipt.

 

18        MISCELLANEOUS.  No provisions of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in
writing signed by the Executive and such officer of the Company as may be
specifically designated by the Company Board. 
No waiver by either party hereto at any time of any breach by the other
party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not set forth
expressly in this Agreement.  The
validity, interpretation, construction and performance of this Agreement shall
be governed by the laws of New York without regard to its conflicts of law
principles.

 

19        VALIDITY. 
The invalidity or unenforceability of any provision or provisions of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

 

20        COUNTERPARTS.  This Agreement may be executed in one or more counterparts, each
of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

 

21        ENTIRE AGREEMENT.  This Agreement together with all exhibits and attachments hereto
sets forth the entire agreement of the parties hereto in respect of the subject
matter contained herein and supersedes all prior agreements, promises,
covenants, arrangements,

 

15

 

communications,
representations or warranties, whether oral or written, by any officer,
employee or representative of any party hereto; and any prior agreement of the
parties hereto in respect of the subject matter contained herein is hereby
terminated and cancelled, provided, however, that this Agreement should not
supersede any existing benefit or agreement which provides such benefit,
including, without limitation, life or disability insurance agreements and
retirement plans currently in effect.

 

22        INDEMNIFICATION.  The Company hereby covenants and agrees to indemnify the
Executive and hold him harmless to the fullest extent permitted by law and
under the By-laws of the Company against and in respect to any and all actions,
suits, proceedings, claims, demands, judgments, costs, expenses (including
reasonable attorneys’ fees), losses, and damages resulting from the Executive’s
good faith performance of his duties and obligations hereunder.  The Company, within 10 days of presentation
of invoices, shall advance to the Executive reimbursement of all legal fees and
disbursements incurred by the Executive in connection with any potentially
indemnifiable matter.  The Company will
cover the Executive under directors’ and officers’ liability insurance both
during and, while potential liability exists (for such reasonable period taking
into account the applicable statute of limitations but in no event for less
than six years), after the Executive’s termination of employment in the same
amount and to the same extent as the Company covers its other officers and
directors.

 

23.       WITHHOLDING TAXES.  The Company may withhold from any and all
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.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first written
above.

 

	
   

  	
   

  	
   

  	
   

  	
  SUPERIOR TELECOMMUNICATIONS INC. 

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  HAROLD M.
  KARP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
											

 

16

 

EXHIBIT A

 

CHANGE OF CONTROL

 

For purposes of this Agreement, a “SUT Change of Control” shall mean
the occurrence of any of the following events at a time when or as a result of
which The Alpine Group, Inc. (“Alpine”) owns less than 50% of the Outstanding
Parent Voting Securities (as defined below):

 

(a)       the acquisition by any
individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), other than Alpine (a “Person”), of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of voting
securities of the Parent where such acquisition causes such Person to own more
than 20% or more of the combined voting power of the then outstanding voting
securities of the Parent entitled to vote generally in the election of
directors (the “Outstanding Parent Voting Securities”) at a time when or as a
result of which Alpine owns less than 30% of the Outstanding Parent Voting
Securities; provided, however, that for purposes of this subsection (a), the
following acquisitions shall not be deemed to result in a Change of
Control:  (i) any acquisition directly
from the Parent, (ii) any acquisition by the Parent, (iii) any acquisition by
any employee benefit plan (or related trust) sponsored or maintained by the
Parent or any corporation controlled by the Parent or (iv) any acquisition by
any corporation pursuant to a transaction that complies with clauses (i), (ii)
and (iii) of subsection (c) below; and provided, further, that if any Person’s
beneficial ownership of the Outstanding Parent Voting Securities reaches or
exceeds more than 20% as a result of a transaction described in clause (i) or
(ii) above, and such Person subsequently acquires beneficial ownership of
additional voting securities of the Parent, such subsequent acquisition shall
be treated as an acquisition that causes such Person to own more than 20% or
more of the Outstanding Parent Voting Securities; or

 

(b)       individuals who, as of
the date hereof, constitute the Parent Board (the “Incumbent Board”) cease for
any reason to constitute at least a majority of the Parent Board; provided,
however, that any individual becoming a director subsequent to the date hereof
whose election, or nomination for election by the Parent’s shareholders, was
approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual were a member of
the Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Parent Board; or

 

(c)       the consummation of a
reorganization, merger or consolidation or sale or other disposition of all or
substantially all of the assets of the Parent or the acquisition of assets of
another corporation (“Business Combination”); excluding, however, such a
Business Combination pursuant to which (i) all or substantially all of the
individuals and entities who were the beneficial owners of the Outstanding
Parent Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of, respectively,

 

 

the then
outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation that as a result of
such transaction owns the Parent or all or substantially all of the Parent’s
assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Parent Voting Securities and (ii) at least a
majority of the members of the board of directors of the corporation resulting
from such Business Combination were members of the Incumbent Board at the time
of the execution of the initial agreement, or of the action of the Parent
Board, providing for such Business Combination; or

 

(d)       approval by the
shareholders of the Parent of a complete liquidation or dissolution of the
Parent.

 

For purposes of this Agreement, a “Divisional Change of Control” shall
mean the occurrence of any of the following: (i) the sale of all or
substantially all of the assets of the Company’s Electrical 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
Electrical Group (an “Electrical Entity”) to an unrelated entity; or (iii) the
merger or consolidation of an Electrical Entity into an unrelated entity;
provided, however, that no Divisional Change of Control shall be deemed to
occur if the Executive continues to be both (x) located in Fort Wayne, IN and
(y) chiefly responsible for the assets and business which comprised the
Company’s Electrical Group immediately prior to the occurrence of an event
that, but for this proviso, would otherwise constitute a Divisional Change of
Control.

 

For purposes of this Exhibit A, an unrelated entity is an entity (i)
with respect to which 35% or more of such entity is not owned, directly or
indirectly, by Steven S. Elbaum, the Company, the Parent, The Alpine Group,
Inc. (“AGI”), any of their majority-owned subsidiaries or the holders of the
outstanding voting securities of the Parent or AGI immediately prior to the
time of the determination of whether there has occurred a Divisional Change of
Control or SUT Change of Control, as applicable; or (ii) which is not an
employee benefit plan (or related trust) of the Company, the Parent, AGI or any
of their majority-owned subsidiaries.

 

A-2

 

EXHIBIT B

 

GOLDEN PARACHUTE PROVISIONS

 

(a)       Anything in this
Agreement to the contrary notwithstanding and except as set forth below, in the
event it shall be determined that any payment or distribution by the Group to
or for the benefit of the Executive (whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this
Exhibit B) (a “Payment”) would be subject to the excise tax imposed by
Section 4999 of the Code or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), then the Executive shall be entitled to receive an additional
payment (a “Gross-Up Payment”) in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  Notwithstanding the foregoing, if it shall
be determined that the Executive is entitled to a Gross-Up Payment, but that
the Payments do not exceed 110% of the greatest amount (the “Reduced Amount”)
that could be paid to the Executive such that the receipt of Payments would not
give rise to any Excise Tax, then no Gross-Up Payment shall be made to the
Executive and the Payments, in the aggregate, shall be reduced to the Reduced
Amount.

 

(b)       Subject to the
provisions of paragraph (c), all determinations required to be made under this
Exhibit B, including whether and when a Gross-Up Payment is required and the
amount of such Gross-Up Payment and the assumptions to be utilized in arriving
at such determination, shall be made by Arthur Andersen LLP or such other
certified public accounting firm as may be designated by the Executive (the
“Accounting Firm”) which shall provide detailed supporting calculations both to
the Parent and the Executive within 15 business days of the receipt of notice
from the Executive that there has been a Payment, or such earlier time as is
requested by the Parent.  In the event
that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control or other change of
ownership as defined under Section 280G of the Code, the Executive shall
appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder). 
All fees and expenses of the Accounting Firm shall be borne solely by
the Parent.  Any Gross-Up Payment, as
determined pursuant to this Exhibit B, shall be paid by the Parent to the
Executive within five days of the receipt of the Accounting Firm’s
determination.  Any determination by the
Accounting Firm shall be binding upon the Group and the Executive.  As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Parent should have been made
(“Underpayment”), consistent with the calculations required to be made
hereunder.  In the event that the Parent
exhausts its remedies pursuant to paragraph (c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall 

 

 

determine the
amount of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Parent to or for the benefit of the Executive.

 

(c)       The Executive shall
notify the Parent in writing of any claim by the Internal Revenue Service that,
if successful, would require the payment by the Parent of the Gross-Up Payment.  Such notification shall be given as soon as
practicable but no later than 10 business days after the Executive is informed
in writing of such claim and shall apprise the Parent of the nature of such
claim and the date on which such claim is requested to be paid.  The Executive shall not pay such claim prior
to the expiration of the 30-day period following the date on which it gives
such notice to the Parent (or such shorter period ending on the date that any payment
of taxes with respect to such claim is due). 
If the Parent notifies the Executive in writing prior to the expiration
of such period that it desires to contest such claim, the Executive shall:

 

(i)        give the Parent any
information reasonably requested by the Parent relating to such claim,

 

(ii)       take such action in
connection with contesting such claim as the Parent shall reasonably request in
writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by
the Parent,

 

(iii)      cooperate with the
Parent in good faith in order effectively to contest such claim, and

 

(iv)     permit the Parent to
participate in any proceedings relating to such claim;

 

provided, however, that the Parent shall bear and pay directly all
costs and expenses (including additional interest and penalties) incurred in
connection with such contest and shall indemnify and hold the Executive
harmless, on an after-tax basis, for any Excise Tax or income tax (including
interest and penalties with respect thereto) imposed as a result of such
representation and payment of costs and expenses.  Without limitation on the foregoing provisions of this paragraph
(c), the Parent shall control all proceedings taken in connection with such
contest and, at its sole option, may pursue or forgo any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, either direct the Executive
to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and the Executive agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Parent shall determine;
provided, however, that if the Parent directs the Executive to pay such claim
and sue for a refund, the Parent shall advance the amount of such payment to
the Executive, on an interest-free basis and shall indemnify and hold the
Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such
advance; and further provided that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount.  Furthermore, the
Parent’s control of the contest shall be limited to issues with respect to 

 

B-2

 

which a
Gross-Up Payment would be payable hereunder and the Executive shall be entitled
to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.

 

(d)       If, after the receipt by
the Executive of an amount advanced by the Parent pursuant to paragraph (c),
the Executive becomes entitled to receive any refund with respect to such
claim, the Executive shall (subject to the Parent’s complying with the
requirements of paragraph (c)) promptly pay to the Parent the amount of such
refund (together with any interest paid or credited thereon after taxes
applicable thereto).  If, after the
receipt by the Executive of an amount advanced by the Parent pursuant to
paragraph (c), a determination is made that the Executive shall not be entitled
to any refund with respect to such claim and the Parent does not notify the
Executive in writing of its intent to contest such denial of refund prior to
the expiration of 30 days after such determination, then such advance shall be
forgiven and shall not be required to be repaid and the amount of such advance
shall offset, to the extent thereof, the amount of Gross-Up Payment required to
be paid.

 

B-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]