Document:

Exhibit 10.1

 

AMENDED AND
RESTATED EMPLOYMENT AGREEMENT

 

AMENDED AND RESTATED EMPLOYMENT
AGREEMENT (the “Agreement”)
dated as of March 10, 2006 by and between Superior Essex Inc. (the “Company”)
and Stephen M. Carter (“Executive”).

 

The Company and Executive entered into that certain
Employment Agreement dated as of November 10, 2003 (the “Original
Agreement”). The Company and Executive desire to amend and restate the Original
Agreement as set forth herein.

 

THEREFORE, in consideration of the premises and mutual
covenants herein and for other good and valuable consideration, the Company and
Executive amend and restate the Original Agreement as follows:

 

1.                                       Term of Employment. Subject to the provisions of Section 8
of this Agreement, Executive shall be employed by the Company for a period
commencing on November 10, 2003 (the “Commencement Date”) and ending on November 9,
2007 (the “Employment Term”) on the terms and subject to the conditions set
forth in this Agreement; provided, however, that commencing with November 10,
2007 and on each anniversary thereof (each an “Extension Date”), the Employment
Term shall be automatically extended for an additional one-year period, unless
the Company or Executive provides the other party hereto 90 days prior written
notice before the next Extension Date that the Employment Term shall not be so
extended. The occurrence of a Change in Control (as defined in the Superior
Essex Inc. 2005 Incentive Plan) shall not affect the term of this Agreement.

 

2.                                       Position.

 

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

 

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

 

 

activities
do not conflict or interfere, in any significant respect, with the performance
of Executive’s duties hereunder or conflict with Section 9.

 

3.                                       Base Salary. During the Employment Term, the Company shall pay Executive a base
salary at the annual rate of $715,000 (effective as of April 2006),
payable in regular installments in accordance with the Company’s usual payment
practices (but not less often than monthly). Executive’s base salary shall be
reviewed annually by the Board, and Executive shall be entitled to such
increases in the base salary, if any, as may be determined from time to
time in the sole discretion of the Board. Once increased, such base salary
shall not be decreased. Executive’s annual base salary, as in effect from time
to time, is hereinafter referred to as the “Base Salary”.

 

4.                                       Annual Bonus. With respect to each full fiscal year
during the Employment Term, Executive shall be eligible to earn an annual bonus
award (an “Annual Bonus”) based upon the achievement of certain performance targets,
as reasonably established by the Board in good faith, after consultation with
Executive; provided, however, that Executive shall have a target
Annual Bonus of 100% of the Base Salary, subject to Executive’s achievement of
such performance targets.

 

5.                                       Equity Arrangements. Exhibit B attached hereto describes
certain equity awards granted to Executive in connection with the execution of
the Original Agreement.

 

6.                                       Employee Benefits. During the Employment Term, Executive shall
be entitled to participate in the Company’s employee benefit plans as in effect
from time to time (collectively, the “Employee Benefits”), on the same basis as
those benefits generally are made available to other senior executives of the
Company, commensurate with Executive’s position with the Company. Such benefits
shall include, but not be limited to, the Superior Essex Inc. Senior Executive
Retirement Plan (the “SERP”) or another plan providing materially the same
benefits as the SERP.

 

7.                                       Business Expenses and Perquisites.

 

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

 

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

 

8.                                       Termination. The Employment Term and Executive’s employment hereunder may be
terminated by either party at any time and for any reason in the manner
provided herein. Notwithstanding any other provision of this Agreement, the
provisions of this Section 8 shall exclusively govern Executive’s rights
upon termination of employment with the Company and its affiliates. Whenever
this Agreement provides for the payment of a lump sum benefit following
termination of employment, such payment shall be made within 30 days after the
employment termination date, subject to the execution and non-revocation of the
release referred

 

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to
in Section 8(h). Notwithstanding the foregoing, to the extent required to
comply with Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”) and the applicable regulations and guidance thereunder, any
payment under this Section 8 shall be delayed to the first day after the
six-month anniversary of Executive’s separation from service, as defined in
Code Section 409A and the applicable regulations and guidance thereunder
(the “Delayed Payment Date”).

 

a.                                       By the Company for Cause or Resignation by
Executive without Good Reason.

 

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

 

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

 

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

 

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

 

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

 

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

 

(D)                               such Employee Benefits, if any, as to which Executive may be

 

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entitled under the employee benefit plans of the Company or any of its
affiliates, including, without limitation, any vested accrued benefit under the
SERP (the amounts described in clauses (A) through (D) hereof being
referred to as the “Accrued Rights”).

 

Following such termination of Executive’s employment
by the Company for Cause or resignation by Executive without Good Reason,
except as set forth in this Section 8(a)(iii), Section 8(d) or
Sections 12(k), (m) and (n), or any payments to be made on the Delayed Payment
Date, Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

 

b.                                      Disability or Death.

 

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

 

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

 

(A)                              the Accrued Rights; and

 

(B)                                a lump sum payment equal to a pro-rata portion of Executive’s Annual
Bonus for the fiscal year in which Executive’s termination occurs (determined
by multiplying the amount Executive would be able to receive if the date of
termination were the end of the fiscal year by a fraction, the numerator of
which is the number of days during the performance year of termination that
Executive is employed by the Company and the denominator of which is 365); provided,
that the applicable performance targets are met for the portion of the fiscal
year during which Executive was employed by the Company; provided, further,
that no amount shall be paid to Executive if at the time of such termination no
bonus would be payable based on the actual achievement of corporate, business
unit and individual performance results as of the date of termination (for
example, if actual performance through the date of termination represented 90% of
target performance objectives for the year, Executive would be entitled to a
prorata portion of the corresponding percentage of his target Annual Bonus
based on the applicable performance matrix, and if the threshold level of
performance objectives was not achieved, no bonus would be paid).

 

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Following Executive’s termination of employment due
to death or Disability, except as set forth in this Section 8(b)(ii), Section 8(d) or
Sections 12(k), (m) and (n), or any payments to be made on the Delayed Payment
Date, Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

 

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

 

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

 

(ii)                                  For purposes of this Agreement, “Good Reason”
shall mean, without Executive’s written consent, (A) a reduction in
Executive’s Base Salary as then in effect, (B) a reduction in Executive’s
annual bonus opportunity to less than 100% of Base Salary or a material
reduction by the Company of benefits to which Executive is entitled (other than
an overall reduction in benefits that affects substantially all full-time
employees of the Company), (C) Executive’s removal from the position of
CEO of the Company, (D) a material adverse change in Executive’s
authority, duties and responsibilities that is substantially inconsistent with
Executive’s position as CEO of the Company, (E) a relocation of Executive’s
principal place of employment with the Company of more than 35 miles from the
Atlanta, Georgia metropolitan area, (F) the Company’s failure to pay
amounts to which Executive is entitled under this Agreement, or (G) the
Company’s giving written notice that it elects not to extend the Employment
Term pursuant to Section 1 of this Agreement; provided that any
event described in clauses (A) through (F) above shall constitute
Good Reason only if the Company fails to cure such event within 20 days after
receipt from Executive of written notice of the event which constitutes Good
Reason; provided, further, that Good Reason shall cease to exist
for an event described in clauses (A) through (F) above on the 60th
day following the later of its occurrence or Executive’s knowledge thereof,
unless Executive has given the Company written notice thereof prior to such
date.

 

(iii) If Executive’s employment is terminated by the Company
without Cause (other than by reason of death or Disability) or if Executive
resigns for Good Reason other than as provided in Section 8(c)(iv) below,
Executive shall be entitled to receive:

 

(A)                              the Accrued Rights; and

 

(B)                                a lump sum payment equal to two times Executive’s then Base Salary; provided
that the amount described in this clause (B) shall be reduced by any other
cash severance payable to Executive under any other plans, programs or
arrangements of the Company or its affiliates (but excluding the SERP); and

 

(C)                                a lump sum payment equal to two times a pro-rata portion of Executive’s
Annual Bonus for the fiscal year in which Executive’s termination occurs
(determined by multiplying the amount Executive would be able to receive if the
date of termination were the end of the fiscal year by a fraction, the

 

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numerator of which is the number of days during the performance year of
termination that Executive is employed by the Company and the denominator of
which is 365); provided, that the applicable performance targets are met
for the portion of the fiscal year during which Executive was employed by the
Company;  provided, further,
that no amount shall be paid to Executive if at the time of such termination no
bonus would be payable based on the actual achievement of corporate, business
unit and individual performance results as of the date of termination (for
example, if actual performance through the date of termination represented 90%
of target performance objectives for the year, Executive would be entitled to a
prorata portion of the corresponding percentage of his target Annual Bonus
based on the applicable performance matrix, and if the threshold level of
performance objectives was not achieved, no bonus would be paid); and

 

(D)                               subject to Executive’s continued compliance with the provisions of
Sections 9 and 10 of this Agreement (other than a breach which is insubstantial
and insignificant, taking into account all of the circumstances), for a period
of twelve months following the date of such termination, continued
participation in the health and welfare plans maintained by the Company or any
of its affiliates as in effect from time to time during such twelve-month
period, on the same basis as the Company and its affiliates provides such plans
for its then actively employed executives (which may include, without
limitation, medical, dental, disability and life insurance), and the Company
and Executive shall share the costs of the continuation of such coverage in the
same proportion as such costs were shared immediately prior to Executive’s
termination; provided, however, that such participation shall
terminate, or the benefits under such plan shall be reduced, if and to the
extent Executive becomes covered (or is eligible to become covered) during such
period by plans of a subsequent employer or other entity to which Executive
provides services providing comparable benefits or if Executive fails to pay
any required contribution or premium. Such coverage shall be credited against
the time period that Executive and Executive’s dependents are entitled to
receive continued coverage under the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended; and

 

(E)                                 the Compensation Committee of the Company
may, but need not, provide that (i) all or any part of Executive’s
unvested stock options then held by Executive shall become vested and
exercisable as of the date of termination and may continue to be
exercisable for a designated period of time not to exceed the later of the 15th
day of the third month following the date at which, or December 31 of the
calendar year in which, the option would otherwise have expired, as provided in
the original option agreement, but in no event to exceed the original full term
of the option; and/or that (ii) all or any part of vesting
restrictions on other outstanding equity awards, including but not limited to
the Restricted Shares described in Exhibit B, then held by Executive shall
vest and cease to be restricted as of the date of termination. Such decision may be
based on such factors, if any, as the Compensation Committee shall determine,
subject to ratification by the independent directors of the Board of Directors,
including, but not limited to, the Company’s financial condition and market
conditions. Notwithstanding the

 

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foregoing, to the extent that any portion of Executive’s outstanding
equity awards are subject to market or performance criteria (other than service
requirements) affecting vesting or exercisability and such market or
performance criteria have been satisfied as of the date of termination, that
portion of the award shall be deemed fully vested as of the date of termination.

 

(iv)                              If Executive’s employment is terminated by
the Company without Cause (other than by reason of death or Disability) or if
Executive resigns for Good Reason at any time during the period beginning on
the date of a Change in Control (as defined in the Superior Essex Inc. 2005
Incentive Plan) and ending one year after the date of such Change in Control,
Executive shall be entitled to receive the benefits as provided under Section 8(c)(iii)(A),
(B) and (D), except that the amount paid pursuant to Section 8(c)(iii)(B) shall
be equal to two times the sum of (i) Executive’s then Base Salary, plus (ii) Executive’s
target Annual Bonus for the fiscal year in which Executive’s termination
pursuant to this Section 8(c)(iv) occurred, reduced by any other cash
severance or similar termination benefits payable to Executive under any other
plans, programs or arrangements of the Company or its affiliates (but excluding
the SERP).

 

(v)                                 Following Executive’s termination of
employment by the Company without Cause (other than by reason of Executive’s
death or Disability) or by Executive’s resignation for Good Reason, except as
set forth in this Section 8(c), Section 8(d) or Sections 12(k),
(m) and (n), or any payments to be made on the Delayed Payment Date, Executive
shall have no further rights to any compensation or any other benefits under
this Agreement.

 

d.                                       Effect of a Change in Control on Equity
Awards.

 

(i)                                      Accelerated Vesting. In addition to the rights described above,
upon the occurrence of a Change in Control (as defined in the Superior Essex
Inc. 2005 Incentive Plan), (A) all of Executive’s outstanding stock
options and any other equity awards in the nature of appreciation rights
(collectively, “Appreciation Rights”), shall become fully vested and
exercisable as of the date of the Change in Control and, unless settled in
accordance with Section 8(d)(ii) below, shall remain exercisable
until the later of the 15th day of the third month following the
date at which, or December 31 of the calendar year in which, the equity
awards would otherwise have expired, as provided in the original award
agreement, but in no event after the original full term of the equity award,
and (B) all time-based or performance-based vesting restrictions on
Executive’s outstanding restricted stock, restricted stock units and other
equity awards (collectively, “Restricted Rights”) shall lapse as of the date of
the Change in Control.

 

(ii)                                   Settlement of Awards in Certain Events. The following shall apply only upon the
occurrence of a Change in Control in which the consideration paid to Company
shareholders is consideration other than shares in the resulting or surviving
entity that are listed for trading on a nationally recognized exchange. In such
event, (A) all of Executive’s Appreciation Rights shall vest and be
cancelled simultaneously with the Change in Control and Executive shall be
entitled to receive therefor the same transaction consideration as if he were a
shareholder of the Company holding the number of shares of Company common stock
having a fair market value, as of the effective time of the Change in Control,
equal to (x) the excess, if any, of the value of the consideration per share to
be received by Company shareholders in such Change of Control, over the
exercise price for such Appreciation Right, less (y) applicable

 

7

 

withholding
taxes; and (B) all of Executive’s Restricted Rights shall vest and be
cancelled simultaneously with the Change in Control and Executive shall be
entitled to receive therefor the same transaction consideration as if he were a
shareholder of the Company holding the number of shares of Company common stock
having a fair market value, as of the effective time of the Change in Control,
equal to the value of such Restricted Rights, less applicable withholding
taxes.

 

e.                                       Expiration of Employment Term.

 

(i)                                     Election Not to Extend the Employment Term. In the event either party elects not to
extend the Employment Term pursuant to Section 1, unless Executive’s employment
is earlier terminated pursuant to paragraphs (a), (b) or (c) of this Section 8,
Executive’s termination of employment hereunder (whether or not Executive
continues as an employee of the Company thereafter) shall be deemed to occur on
the close of business on the day immediately preceding the next scheduled
Extension Date. If the Company so elects not to extend the Employment Term,
Executive shall be treated as having resigned for Good Reason and Executive’s
rights and obligations shall be determined in accordance with Section 8(c).
If Executive so elects not to extend the Employment Term, Executive shall be
entitled to receive the Accrued Rights.

 

Following such termination of Executive’s employment
hereunder as a result of either party’s election not to extend the Employment
Term, except as set forth in this Section 8(e)(i), Section 8(d) or
Sections 12(k), (m) and (n), or any payments to be made on the Delayed Payment
Date, Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

 

(ii)                                  Continued Employment Beyond the Expiration of
the Employment Term. Unless
the parties otherwise agree in writing, continuation of Executive’s employment
with the Company beyond the expiration of the Employment Term shall be deemed
an employment at-will and shall not be deemed to extend any of the provisions
of this Agreement and Executive’s employment may thereafter be terminated
at will by either Executive or the Company; provided that the provisions
of Sections 9, 10, 11 and 12(m) of this Agreement shall survive any termination
of this Agreement or Executive’s termination of employment hereunder.

 

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

 

g.                                      Board/Committee Resignation. Upon termination of Executive’s employment
for any reason, Executive shall be deemed to have resigned, as of the date of
such termination and to the extent applicable, from the Board (and any
committees thereof) and the board of directors (and any committees thereof) of
any of the Company’s affiliates. Executive agrees to execute any documentation
reasonably requested by the Company to evidence such 

 

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resignation,
but Executive’s failure to comply shall not affect the resignation, which is
automatic.

 

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

 

9. Non-Competition.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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10.                                  Confidentiality and Non-Disparagement.

 

a.                                       Confidentiality.

 

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

 

(ii)                                  “Confidential Information” shall not include
any information that is (A) generally known to the industry or the public
other than as a result of Executive’s breach of this covenant or any breach of
other confidentiality obligations by third parties; (B) made legitimately
available to Executive by a third party without breach of any confidentiality
obligation; or (C) required by law to be disclosed; provided, however,
that Executive shall give prompt written notice to the Company of such
requirement, disclose no more information than is so required, and cooperate
(at the Company’s expense) with any attempts by the Company to obtain a
protective order or similar treatment.

 

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

 

(iv)                              Upon termination of Executive’s employment with the Company for any
reason, Executive shall: (x) cease and not thereafter commence use of any
Confidential Information or intellectual property (including without limitation,
any patent, invention, copyright, trade secret, trademark, trade name, logo,
domain name or other source 

 

11

 

indicator) owned or used by the Company, its subsidiaries or
affiliates; (y) immediately destroy, delete, or return to the Company, at the
Company’s option, all originals and copies in any form or medium
(including memoranda, books, papers, plans, computer files, letters and other
data) in Executive’s possession or control (including any of the foregoing
stored or located in Executive’s office, home, laptop or other computer,
whether or not Company property) that contain Confidential Information or
otherwise relate to the business of the Company, its affiliates and
subsidiaries, except that Executive may retain only those portions of any
personal notes, notebooks and diaries that do not contain any Confidential
Information; and (z) notify and fully cooperate with the Company (at the
Company’s expense) regarding the delivery or destruction of any other
Confidential Information of which Executive is or becomes aware.

 

b.                                      Non-Disparagement.

 

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

 

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

 

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

 

12

 

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

 

12.                                 Miscellaneous.

 

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

 

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

 

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

 

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

 

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

 

f.                                         Set-Off. The Company’s obligation to pay Executive the amounts provided and to
make the arrangements provided hereunder shall be subject to set-off, 

 

13

 

counterclaim
or recoupment of amounts owed by Executive to the Company or its affiliates.

 

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

 

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

 

	
  If to the Company:

  
	
   

  
	
  150 Interstate North Parkway

  Atlanta, Georgia 30339

  
	
   

  
	
  Attention:  Board Chair

  
	
  Copy to:  General Counsel

  
	
   

  
	
  If to Executive:

  
	
   

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

  

 

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

 

j.                                          Prior Agreements. This Agreement supercedes all prior
agreements and understandings (including verbal agreements) between Executive
and the Company and/or its affiliates regarding the terms and conditions of
Executive’s employment with the Company and/or its affiliates (other than the
SERP and the rights of Executive under such plan shall not be effected or
limited by this Agreement).

 

k.                                       Cooperation. Executive shall provide Executive’s reasonable cooperation in
connection with any action or proceeding (or any appeal from any action or
proceeding) which relates to events occurring during Executive’s employment
hereunder. This provision shall survive any termination of this Agreement. The
Company shall reimburse Executive for any reasonable out-of-pocket expenses
incurred in connection with Executive’s performance of obligations under this Section 12(k)
at the request of the Company and, following Executive’s termination of employment
hereunder, the Company shall pay Executive a fee at an hourly rate of $300 for
Executive’s performance of obligations under this Section 12(k) at the
request of the 

 

14

 

Company;
provided that (i) Executive is not receiving any payments pursuant to Section 8(c) of
this Agreement at the time of Executive’s performance of such obligations and (ii) Executive’s
cooperation is not in connection with any action, suit or proceeding in respect
of which the Company is providing or has provided any payments pursuant to Section 12(m)
of this Agreement.

 

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

 

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

 

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

 

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

 

13.                                 Authority. This Agreement has been duly approved and authorized by all necessary
action of the Company.

 

(signatures on following page)

 

15

 

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

 

 

	
  SUPERIOR ESSEX INC.

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Andrew D. Africk

  	
   

  	
  /s/ Stephen M. Carter

  	
   

  
	
  By: Andrew D. Africk

  	
  Stephen M. Carter

  
	
  Chair of the Compensation Committee

  	
   

  
				

 

16

 

EXHIBIT A

 

CURRENT
POSITIONS

 

True
Position – Director

 

 

EXHIBIT B

 

INITIAL
EQUITY ARRANGEMENTS

 

(1)                                  On February 12, 2004, the Company
granted Executive 330,000 shares of restricted common stock of the Company (the
“Restricted Shares”), which were granted pursuant to, and subject to the terms and
conditions of, the Superior Essex Inc. 2003 Stock Incentive Plan (the “2003
Stock Incentive Plan”) and, in respect of such grant, Executive paid par value
of $3,300. In connection with such purchase, the Company paid Executive a lump
sum cash signing bonus equal to $5,000, the net amount of which was applied to
the purchase of the Restricted Shares.

 

(2)                                  Subject to Executive’s continued employment
by the Company, the Restricted Shares shall vest with respect to 12.5% of such
Restricted Shares at the end of each six-month period that occurs during the
period commencing on November 10, 2003 and ending on November 10,
2007; provided, however, that upon a Change in Control (as
defined in the 2003 Stock Incentive Plan), any unvested Restricted Shares then
held by Executive shall become vested.

 

(3)                                  Notwithstanding the foregoing, if Executive’s
employment is terminated by the Company without Cause (as defined in Section 8(a) of
the Agreement) or by Executive for Good Reason (as defined in Section 8(c) of
the Agreement) before a Change in Control, the Restricted Shares shall vest
with respect to a percentage of the Restricted Shares equal to (y) the product
of (i) 100%, times (ii) a fraction, the numerator of which is the
number of full months that elapsed during the period commencing on November 10,
2003 and ending on Executive’s date of termination and the denominator of which
is 48, minus (z) the percentage of Restricted Shares that already had become
vested during the Employment Term prior to such termination.

 

 

EXHIBIT C

 

PERQUISITES

 

(1)                                  The Company shall provide a car allowance to
Executive in the amount of $1,500 per month (which is intended to be inclusive
of any income taxes owed by Executive as a result of all or any portion of this
allowance being determined to be compensation to Executive and Executive will
not receive additional compensation to reimburse Executive for taxes with
respect to the allowance). Executive shall be responsible for all costs of
operating and maintaining the vehicle, including insurance, title, taxes and
fuel. Subject to compliance with the Company’s policies, the Company will
reimburse or pay deductible business expenses related to the use of the
vehicle, subject to Company policies, such as parking fees and fuel for
business mileage.

 

(2)                                  The Company shall reimburse Executive, in
accordance with the Company’s telecommunications policy, for the
telecommunications and computing costs to provide Executive with an effective
office capability at home and while traveling.

 

(3)                                  The Company agrees to pay the first $7,500 of
reasonable expenses incurred by Executive per year for financial planning and
counseling in accordance with the Company’s policy. Any expenses in excess of
$7,500 per year shall be borne by Executive.

 

 

EXHIBIT D

 

RELEASE

 

In exchange for a portion of the benefits described
in the attached Amended and Restated Employment Agreement dated as of March 10,
2006 (the “Agreement”), to which I agree I am not otherwise entitled, I hereby
release Superior Essex Inc. (the “Company”), its respective affiliates,
subsidiaries, predecessors, successors, assigns, officers, directors,
employees, agents, stockholders, attorneys, and insurers, past, present and
future (the “Released Parties”) from any and all claims of any kind which I now
have or may have against the Released Parties, whether known or unknown to
me, by reason of facts which have occurred on or prior to the date that I have
signed this Release; provided that such released claims shall not
include any claims to enforce my rights (i) under, or with respect to, the
Agreement, (ii) to indemnification provided at law or pursuant to the
Company’s By-Laws or insurance or to directors’ and officers’ liability or
employment practices insurance coverage, or (iii) under COBRA or my vested
rights under benefit plans or my Restricted Stock Agreement and the 2003 Stock
Incentive Plan (as defined in the Agreement). Notwithstanding the generality of
the preceding sentence, such released claims include, without limitation, any
and all claims under federal, state or local laws pertaining to employment,
including the Age Discrimination in Employment Act, Title VII of the Civil
Rights Act of 1964, as amended, 42 U.S.C. Section 2000e et seq.,
the Fair Labor Standards Act, as amended, 29 U.S.C. Section 201 et seq.,
the Americans with Disabilities Act, as amended, 42 U.S.C. Section 12101 et
seq., the Reconstruction Era Civil Rights Act, as amended, 42 U.S.C. Section 1981
et seq., the Rehabilitation Act of 1973, as amended, 29 U.S.C. Section 701
et seq., the Family and Medical Leave Act of 1992, 29 U.S.C. Section 2601
et seq., and any and all state or local laws regarding employment
discrimination and/or federal, state or local laws of any type or description
regarding employment, including, but not limited to, any claims arising from or
derivative of my employment with the Company, as well as any and all claims
under state contract or tort law or otherwise.

 

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

 

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

 

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

 

 

claim
whatsoever.

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

 

	
   

  	
   

  	
   

  	
   

  
	
  DATE

  	
  Stephen M. Carter

  

 

3Exhibit 10.2

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

AMENDED AND RESTATED EMPLOYMENT
AGREEMENT (the “Agreement”)
dated as of March 10, 2006 by and between Superior Essex Inc. (the “Company”)
and David S. Aldridge (“Executive”).

 

The Company and Executive entered into that certain Employment
Agreement dated as of March 15, 2004 (the “Original Agreement”). The
Company and Executive desire to amend and restate the Original Agreement as set
forth herein.

 

THEREFORE, in consideration of the premises and mutual covenants herein and for
other good and valuable consideration, the Company and Executive amend and
restate the Original Agreement as follows:

 

1.                                      Term of Employment. Subject to the
provisions of Section 8 of this Agreement, Executive shall continue to be
employed by the Company for a period commencing on January 1, 2004 and
ending on December 31, 2006 (the “Employment Term”) on the terms and
subject to the conditions set forth in this Agreement; provided, however,
that commencing with December 31, 2006 and on each anniversary thereof
(each an “Extension Date”), the Employment Term shall be automatically extended
for an additional one-year period, unless the Company or Executive provides the
other party hereto 90 days prior written notice before the next Extension Date
that the Employment Term shall not be so extended. The occurrence of a Change
in Control (as defined in the
Superior Essex Inc. 2005 Incentive Plan) shall not affect the term of this Agreement.

 

2.                                      Position.

 

a.                                        During
the Employment Term, Executive shall serve as an Executive Vice President of
the Company and the Chief Financial Officer of the Company. In such position,
Executive shall have such duties and authority, consistent with such position
with the Company, as shall be determined from time to time by the Board of
Directors of the Company (the “Board”) or the Chief Executive of the Company. Executive
shall report directly to the Chief Executive Officer of the Company.

 

b.                                       During
the Employment Term, Executive will devote Executive’s full business time and
best efforts to the performance of Executive’s duties hereunder and will not
engage in any other business, profession or occupation for compensation or
otherwise which would conflict or interfere, in any significant respect, with
the rendition of such services either directly or indirectly, without the prior
written consent of the Board. Notwithstanding the foregoing, Executive may,
without the prior approval of the Board, (i) make and manage personal
business investments of Executive’s choice, subject to the prior written
consent of the Board if any such investment is beyond merely buying and selling
in the ordinary course (and, in so doing, may serve as an officer,
director, agent or employee of entities and business enterprises that are
related to such personal investments) and (ii) serve in any capacity with
any civic, educational or charitable organization or any governmental entity or
trade association; provided that in each case, 

 

 

and in the aggregate, such
activities do not conflict or interfere, in any significant respect, with the
performance of Executive’s duties hereunder or conflict with Section 9.

 

c.                                        Notwithstanding
anything to the contrary in this Section 2, 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 Executive is
indemnified for serving in any and all such capacities.

 

3.                                      Base Salary. During the Employment
Term, the Company shall pay Executive a base salary at the annual rate of
$400,000 (effective as of April 2006), payable in regular installments in
accordance with the Company’s usual payment practices (but not less often than
monthly). Executive’s base salary shall be reviewed annually by the Board, and
Executive shall be entitled to such increases in the base salary, if any, as may be
determined from time to time in the sole discretion of the Board. Once
increased, such base salary shall not be decreased and no increase shall serve
to limit or reduce any other obligation to Executive under this Agreement. Executive’s
annual base salary, as in effect from time to time, is hereinafter referred to
as the “Base Salary”.

 

4.                                      Annual Bonus. With respect to each
fiscal year ending during the Employment Term, Executive shall be eligible to
earn an annual bonus award (an “Annual Bonus”) based upon the achievement of
certain performance targets, as reasonably established by the Board in good
faith, after consultation with Executive; provided, however, that
Executive shall have a target Annual Bonus of 55% of the Base Salary, subject
to Executive’s achievement of such performance targets.

 

5.                                      Equity Arrangements. Exhibit A attached hereto describes
certain equity awards granted to Executive in connection with the execution
of the Original Agreement.

 

6.                                      Employee Benefits. During the Employment
Term, Executive shall be entitled to participate in the Company’s (or its
affiliates’) employee benefit plans, programs and arrangements as in effect
from time to time (collectively, the “Employee Benefits”), on the same basis as
those benefits generally are made available to other senior executives of the
Company, commensurate with Executive’s position with the Company. Such benefits
shall include, but not be limited to, the Superior Essex Inc. Senior Executive
Retirement Plan (the “SERP”) or another plan providing materially the same
benefits as the SERP.

 

7.                                      Business Expenses and
Perquisites.

 

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

 

2

 

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

 

8.                                      Termination. The Employment Term
and Executive’s employment hereunder may be terminated by either party at
any time and for any reason in the manner provided herein. Notwithstanding any
other provision of this Agreement, the provisions of this Section 8 shall
exclusively govern Executive’s rights upon termination of employment with the
Company and its affiliates. Whenever this Agreement provides for the payment of
a lump sum benefit following termination of employment, such payment shall be
made within 30 days after the
employment termination date, subject to the execution and non-revocation of the
release referred to in Section 8(h). Notwithstanding the foregoing, to the extent required
to comply with Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”) and the applicable regulations and guidance thereunder,
any payment under this Section 8 shall be delayed to the first day after
the six-month anniversary of Executive’s separation from service, as defined in
Code Section 409A and the applicable regulations and guidance thereunder
(the “Delayed Payment Date”).

 

a.                                        By the Company for Cause or Resignation by
Executive without Good Reason.

 

(i)                                      The
Employment Term and Executive’s employment hereunder may be terminated by
the Company for Cause and shall terminate automatically upon Executive’s
resignation without Good Reason; provided, however, that
Executive will be required to give the Company at least 30 days advance written
notice of a resignation without Good Reason.

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

(D)                                such
Employee Benefits, if any, as to which Executive may be entitled under the
employee benefit plans of the Company or any of its affiliates, including,
without limitation, any vested accrued benefit under the SERP (the amounts
described in clauses (A) through (D) hereof being referred to as the “Accrued
Rights”).

 

Following
such termination of Executive’s employment by the Company for Cause or
resignation by Executive without Good Reason, except as set forth in this Section 8(a)(iii),
Section 8(d) or Sections 12(k), (m) and (n), or any payments to be
made on the Delayed Payment Date, Executive shall have no further rights to any
compensation or any other benefits under this Agreement.

 

b.                                       Disability or Death.

 

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

 

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

 

4

 

to receive:

 

(A)                               the
Accrued Rights; and

 

(B)                                 a
lump sum payment equal to a pro-rata portion of Executive’s Annual Bonus for
the fiscal year in which Executive’s termination occurs (determined by
multiplying the amount Executive would be able to receive if the date of
termination were the end of the fiscal year by a fraction, the numerator of
which is the number of days during the performance year of termination that
Executive is employed by the Company and the denominator of which is 365); provided,
that the applicable performance targets are met for the portion of the fiscal
year during which Executive was employed by the Company; provided, further,
that no amount shall be paid to Executive if at the time of such termination no
bonus would be payable based on the actual achievement of corporate, business
unit and individual performance results as of the date of termination (for
example, if actual performance through the date of termination represented 90%
of target performance objectives for the year, Executive would be entitled to a
prorata portion of the corresponding percentage of his target Annual Bonus
based on the applicable performance matrix, and if the threshold level of
performance objectives was not achieved, no bonus would be paid).

 

Following
Executive’s termination of employment due to death or Disability, except as set
forth in this Section 8(b)(ii), Section 8(d) or Sections 12(k),
(m) and (n), or any payments to be made on the Delayed Payment Date, Executive
shall have no further rights to any compensation or any other benefits under
this Agreement.

 

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

 

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

 

(ii)                                   For
purposes of this Agreement, “Good Reason” shall mean, without Executive’s
written consent, (A) a reduction in Executive’s Base Salary as then in
effect, (B) a reduction in Executive’s target Annual Bonus to less than
55% of the Base Salary or a material reduction by the Company of Employee
Benefits to which Executive is entitled (other than an overall reduction in
benefits that affects substantially all full-time employees of the Company and
its affiliates), (C) Executive’s removal from the position of Executive
Vice President of the Company or Chief Financial Officer of the Company, (D) a
material adverse change in Executive’s authority, duties and responsibilities
or reporting lines, (E) a relocation of Executive’s principal place of
employment with the Company of more than 35 miles from Executive’s then current
work location, (F) the Company’s failure to pay amounts to which Executive
is entitled under this Agreement, or
(G) the Company’s giving written notice that it elects not to extend the
Employment Term pursuant to Section 1 of this Agreement; provided
that any event described in clauses (A) through (F) above shall
constitute Good Reason only if the 

 

5

 

Company fails
to cure such event within 20 days after receipt from Executive of written
notice of the event which constitutes Good Reason; provided, further,
that Good Reason shall cease to exist for an event described in clauses (A) through
(F) above on the 60th day following the later of its occurrence or
Executive’s knowledge thereof, unless Executive has given the Company written
notice thereof prior to such date.

 

(iii)                                If
Executive’s employment is terminated by the Company without Cause (other than
by reason of death or Disability) or if Executive resigns for Good Reason other than as provided in Section 8(c)(iv) below, Executive shall be
entitled to receive:

 

(A)                           the Accrued Rights;

 

(B)                             a
lump sum payment equal to Executive’s then Base Salary; provided that
the amount described in this clause (B) shall be reduced by any other cash
severance payable to Executive under any other plans, programs or arrangements
of the Company or its affiliates (but excluding the SERP);

 

(C)                             a
lump sum payment equal to a pro-rata portion of Executive’s Annual Bonus for
the fiscal year in which Executive’s termination occurs (determined by
multiplying the amount Executive would be able to receive if the date of
termination were the end of the fiscal year by a fraction, the numerator of
which is the number of days during the performance year of termination that
Executive is employed by the Company and the denominator of which is 365); provided,
that the applicable performance targets are met for the portion of the fiscal
year during which Executive was employed by the Company; provided, further,
that no amount shall be paid to Executive if at the time of such termination no
bonus would be payable based on the actual achievement of corporate, business
unit and individual performance results as of the date of termination (for
example, if actual performance through the date of termination represented 90%
of target performance objectives for the year, Executive would be entitled to a
prorata portion of the corresponding percentage of his target Annual Bonus
based on the applicable performance matrix, and if the threshold level of
performance objectives was not achieved, no bonus would be paid);

 

(D)                                subject
to Executive’s continued compliance with the provisions of Sections 9 and 10 of
this Agreement (other than a breach which is insubstantial and insignificant,
taking into account all of the circumstances), for a period of twelve months
following the date of such termination, continued participation in the health
and welfare plans maintained by the Company or any of its affiliates as in
effect from time to time during such twelve-month period, on the same basis as
the Company and its affiliates provides such plans for its then actively employed
executives (which may include, without limitation, medical, dental,
disability and life insurance), and the Company and Executive shall share the
costs of the continuation of such coverage in the same proportion as such costs
were shared immediately prior to Executive’s termination; provided, however,
that such participation shall terminate, or the benefits under such plan shall
be reduced, if 

 

6

 

and to the extent Executive becomes covered (or is eligible to become
covered) during such period by plans of a subsequent employer or other entity
to which Executive provides services providing comparable benefits or if
Executive fails to pay any required contribution or premium. Such coverage
shall be credited against the time period that Executive and Executive’s
dependents are entitled to receive continued coverage under the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended; and

 

(E)                              the
Compensation Committee of the Company may, but need not, provide that (i) all
or any part of Executive’s unvested stock options, including, but not
limited to, the Initial Option described in Exhibit A, then held by
Executive shall become vested and exercisable as of the date of termination and
may continue to be exercisable for a designated period of time not to
exceed the later of the 15th day of the third month following the
date at which, or December 31 of the calendar year in which, the option
would otherwise have expired, as provided in the original option agreement, but
in no event to exceed the original full term of the option; and/or that (ii) all
or any part of vesting restrictions on other outstanding equity awards,
including but not limited to the Restricted Shares described in Exhibit A,
then held by Executive shall vest and cease to be restricted as of the date of
termination. Such decision may be based on such factors, if any, as the
Compensation Committee shall determine, including, but not limited to, the
Company’s financial condition and market conditions. Notwithstanding the
foregoing, to the extent that any portion of Executive’s outstanding equity
awards are subject to market or performance criteria (other than service
requirements) affecting vesting or exercisability and such market or performance
criteria have been satisfied as of the date of termination, that portion of the
award shall be deemed fully vested as of the date of termination.

 

(iv)                               If
Executive’s employment is terminated by the Company without Cause (other than
by reason of death or Disability) or if Executive resigns for Good Reason at
any time during the period beginning on the date of a Change in Control (as
defined in the Superior Essex Inc. 2005 Incentive Plan) and ending one year
after the date of such Change in Control, Executive shall be entitled to
receive the benefits as provided under Section 8(c)(iii)(A), (B) and
(D), except that the amount paid pursuant to Section 8(c)(iii)(B) shall
be equal to two times the sum of (i) Executive’s then Base Salary, plus (ii) Executive’s
target Annual Bonus for the fiscal year in which Executive’s termination
pursuant to this Section 8(c)(iv) occurred, reduced by any other cash
severance payable to Executive under any other plans, programs or arrangements of the Company or its affiliates (but
excluding the SERP).

 

(v)                                  Following Executive’s termination of
employment by the Company without Cause (other than by reason of Executive’s
death or Disability) or by Executive’s resignation for Good Reason, except as
set forth in this Section 8(c), Section 8(d) or Sections 12(k),
(m) and (n), or any payments to be made on the Delayed Payment Date, Executive
shall have no further rights to any compensation or any other benefits under
this Agreement.

 

7

 

d.                                       Effect of a Change in Control on Equity
Awards.

 

(i)                                      Accelerated Vesting. In addition to the rights described
above, upon the occurrence of a Change in Control (as defined in the Superior
Essex Inc. 2005 Incentive Plan), (A) all of Executive’s outstanding stock
options, including the Initial Options, and any other equity awards in the
nature of appreciation rights (collectively, “Appreciation Rights”), shall
become fully vested and exercisable as of the date of the Change in Control
and, unless settled in accordance with Section 8(d)(ii) below, shall
remain exercisable until the later of the 15th day of the third
month following the date at which, or December 31 of the calendar year in
which, the equity awards would otherwise have expired, as provided in the
original award agreement, but in no event after the original full term of the
equity award, and (B) all time-based or performance-based vesting
restrictions on Executive’s outstanding restricted stock, restricted stock
units and other equity awards (collectively, “Restricted Rights”) shall lapse
as of the date of the Change in Control.

 

(ii)                                   Settlement
of Awards in Certain Events. The following shall apply only upon the
occurrence of a Change in Control in which the consideration paid to Company
shareholders is consideration other than shares in the resulting or surviving
entity that are listed for trading on a nationally recognized exchange. In such
event, (A) all of Executive’s Appreciation Rights shall vest and be
cancelled simultaneously with the Change in Control and Executive shall be
entitled to receive therefor the same transaction consideration as if he were a
shareholder of the Company holding the number of shares of Company common stock
having a fair market value, as of the effective time of the Change in Control,
equal to (x) the excess, if any, of the value of the consideration per share to
be received by Company shareholders in such Change of Control, over the
exercise price for such Appreciation Right, less (y) applicable withholding
taxes; and (B) all of Executive’s Restricted Rights shall vest and be
cancelled simultaneously with the Change in Control and Executive shall be
entitled to receive therefor the same transaction consideration as if he were a
shareholder of the Company holding the number of shares of Company common stock
having a fair market value, as of the effective time of the Change in Control,
equal to the value of such Restricted Rights, less applicable withholding
taxes.

 

e.                                    Expiration of Employment Term.

 

(i)                                      Election
Not to Extend the Employment Term. In the event either party elects not to
extend the Employment Term pursuant to Section 1, unless Executive’s
employment is earlier terminated pursuant to paragraphs (a), (b) or (c) of
this Section 8, Executive’s termination of employment hereunder (whether
or not Executive continues as an employee of the Company or any affiliate
thereafter) shall be deemed to occur on the close of business on the day
immediately preceding the next scheduled Extension Date. If the Company so elects
not to extend the Employment Term, Executive shall be treated as having
resigned for Good Reason and Executive’s rights and obligations shall be
determined in accordance with Section 8(c). If Executive so elects not to
extend the Employment Term, Executive shall be entitled to receive the Accrued
Rights.

 

8

 

Following
such termination of Executive’s employment hereunder as a result of either
party’s election not to extend the Employment Term, except as set forth in this
Section 8(e)(i), Section 8(d) or Sections 12(k), (m) and (n), or
any payments to be made on the Delayed Payment Date, Executive shall have no
further rights to any compensation or any other benefits under this Agreement.

 

(ii)                                   Continued
Employment Beyond the Expiration of the Employment Term. Unless the parties
otherwise agree in writing, continuation of Executive’s employment with the
Company or any affiliate beyond the expiration of the Employment Term shall be
deemed an employment at-will and shall not be deemed to extend any of the
provisions of this Agreement and Executive’s employment may thereafter be
terminated at will by either Executive or the Company (or affiliate); provided
that the provisions of Sections 9, 10, 11 and 12(m) of this Agreement shall
survive any termination of this Agreement or Executive’s termination of
employment hereunder.

 

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

 

g.                                       Board/Committee Resignation. Upon termination of Executive’s employment
for any reason, Executive shall be deemed to have resigned, as of the date of
such termination and to the extent applicable, from the board of directors (and
any committees thereof) of the Company or its affiliates. Executive agrees
to execute any documentation reasonably requested by the Company to evidence
such resignation, but Executive’s failure to comply shall not affect the
resignation, which is automatic.

 

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

 

9.                                         Non-Competition.

 

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

 

9

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10

 

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

 

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

 

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

 

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

 

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

 

10.                                Confidentiality and Non-Disparagement.

 

a.                                        Confidentiality.

 

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

 

11

 

without the
prior written authorization of the Board.

 

(ii)                                   “Confidential
Information” shall not include any information that is (A) generally known
to the industry or the public other than as a result of Executive’s breach of
this covenant or any breach of other confidentiality obligations by third
parties; (B) made legitimately available to Executive by a third party
without breach of any confidentiality obligation; or (C) required by law
to be disclosed; provided, however, that Executive shall give
prompt written notice to the Company of such requirement, disclose no more
information than is so required, and cooperate (at the Company’s expense) with
any attempts by the Company to obtain a protective order or similar treatment.

 

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

 

b.                                       Non-Disparagement.

 

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

 

12

 

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

 

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

 

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

 

12.                                Miscellaneous.

 

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

 

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

 

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

 

13

 

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

 

e.                                        Assignment. This Agreement, and all of Executive’s rights and duties hereunder,
shall not be assignable or delegable by Executive. Any purported assignment or
delegation by Executive in violation of the foregoing shall be null and void ab initio and of no force and effect. This Agreement may be
assigned by the Company to a person or entity which is an affiliate and shall
be assigned to a successor in interest to substantially all of the business
operations of the Company which assumes in writing, or by operation of law, the
obligations of the Company hereunder. Upon such assignment, the rights and
obligations of the Company hereunder shall become the rights and obligations of
such affiliate or successor person or entity; provided, however,
that, unless Executive consents to such assignment (which consent shall not be
unreasonably withheld), the Company shall remain secondarily liable for any
obligations hereunder. Failure of the Company to obtain such assumption
substantially simultaneous with the occurrence of such succession shall be a
breach of the Agreement and shall entitle Executive to terminate employment
with the Company for Good Reason and Executive’s rights and obligations shall
be determined in accordance with Section 8(c)(iii), 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 or which otherwise
becomes bound by all the terms and provisions of this Agreement by operation of
law.

 

f.                                          No Set-Off; No Duty to Mitigate. The Company’s obligation to pay Executive
the amounts provided and to make the arrangements provided hereunder shall not
be subject to set-off, counterclaim or recoupment of amounts owed by Executive
to the Company or its affiliates. In no event shall Executive be obligated to
seek other employment or take any other action by way of mitigation of the
amounts payable to Executive under any of the provisions of this Agreement or
otherwise, nor shall the amount of any payment or benefits provided hereunder
be reduced by any compensation earned by Executive as a result of employment by
another employer except as provided in Section 8(c)(iii).

 

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

 

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

 

14

 

accordance herewith, except that notice of
change of address shall be effective only upon receipt.

 

If
to the Company:

 

150
Interstate North Parkway

Atlanta,
Georgia 30339

 

Attention:
Chief Executive Officer

Copy
to: General Counsel

 

If
to Executive:

 

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

 

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

 

j.                                           Prior Agreements. This Agreement supercedes all prior
agreements and understandings (including verbal agreements) between Executive
and the Company and/or its affiliates regarding the terms and conditions of
Executive’s employment with the Company and/or its affiliates (other than the
SERP and the rights of Executive under such plan shall not be effected or
limited by this Agreement).

 

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

 

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

 

15

 

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

 

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

 

o.                                       Arbitration. Any dispute or controversy arising under or in connection with this
Agreement, other than injunctive relief under Section 11 hereof or damages
for breach of Section 9 or 10, shall be settled exclusively by
arbitration, conducted before a single arbitrator in Atlanta, Georgia in
accordance with the National Rules for the Resolution of Employment
Disputes of the American Arbitration Association then in effect. The decision
of the arbitrator will be final and binding upon the parties hereto. Judgment may be
entered on the arbitrator’s award in any court having jurisdiction.

 

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

 

13.                                Authority. This
Agreement has been duly approved and authorized by all necessary action of the
Company.

 

(signatures on following page)

 

16

 

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

 

 

	
  SUPERIOR
  ESSEX INC.

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Stephen
  M. Carter

  	
   

  	
  /s/ David S.
  Aldridge

  	
   

  
	
  By:

  	
  Stephen M.
  Carter

  	
  David S.
  Aldridge

  
	
   

  	
  Chief
  Executive Officer

  	
   

  
					

 

17

 

EXHIBIT A

 

INITIAL EQUITY ARRANGEMENTS

 

(1)                                   Initial Stock Option Grant. On March 15, 2004 (the “Grant Date”),
the Company granted Executive a non-qualified stock option (the “Initial Option”)
to purchase 150,000 shares of the Company’s common stock, par value $.01 (the “Common
Stock”) under the Superior Essex Inc. 2003 Stock Incentive Plan (the “2003
Stock Incentive Plan”) at an exercise price equal to $10, which was amended on November 9,
2005 with respect to 100,000 of such shares to increase the exercise price to
$13.00. Unless otherwise provided by the Compensation Committee of the Board
(the “Committee”), and subject to Executive’s continued employment by the
Company (or its affiliates) through each vesting date, the Initial Option shall
vest and become exercisable in equal annual installments of 33-1/3% each, on November 10,
2004, November 10, 2005 and November 10, 2006. The Initial Option was
granted pursuant to and, to the extent not contrary to the terms of this
Agreement, is subject to the terms and conditions of, the 2003 Stock Incentive
Plan and the applicable stock option agreement; provided, however, that upon a Change in Control (as defined
in the 2003 Stock Incentive Plan), any unvested portion of the Initial Option
then held by Executive shall become fully vested and exercisable and shall
remain exercisable until the later of the 15th day of the third
month following the date at which, or December 31 of the calendar year in
which, the Initial Option would otherwise have expired, as provided in the
original option agreement, but in no event after the original full term of the
Initial Option.

 

(2)                                   Performance Shares. On the Grant
Date, the Company granted Executive 50,000 shares of restricted Common Stock
(the “Restricted Shares”), which were granted pursuant to, and are subject to
the terms and conditions of, the 2003 Stock Incentive Plan and the Company’s
standard restricted stock
agreement. Subject to Executive’s continued employment by the Company (or its
affiliates) through November 10, 2006, the Restricted Shares shall vest
and cease to be Restricted Shares on November 10, 2006 with respect to the
number of shares of Common Stock for which the Target Trading Price (as defined
below) has been achieved prior to such anniversary for at least any 20
consecutive trading day period in accordance with the following schedule:

 

	
  Target Trading Price

  	
   

  	
  Percentage of

  Award Triggered

  
	
   

  	
   

  	
   

  
	
  $17.50 per share*

  	
   

  	
  33.33%

  
	
   

  	
   

  	
   

  
	
  $22.50 per share*

  	
   

  	
  33.33%

  
	
   

  	
   

  	
   

  
	
  $28.50 per share

  	
   

  	
  33.34%

  

 

*This Target Trading Price
had been achieved as of March 1, 2006.

 

Notwithstanding the foregoing, subject to
Executive’s continued employment by the Company (or its affiliates), the
Restricted Shares shall vest and cease to be Restricted Shares on the earlier
of (i) November 10, 2010 or (ii) the occurrence of a Change in

 

 

Control (as defined in the 2003 Stock
Incentive Plan). The Company may accelerate the vesting of all or any part of
the Restricted Shares at any time after November 10, 2006, based on such
factors, if any, as the Company shall determine, in its sole discretion. Unless
otherwise determined by the Committee or as provided herein, Executive shall
forfeit to the Company any Restricted Shares that do not become vested prior to
Executive’s termination of employment with the Company for any reason, without
compensation other than repayment of the par value paid for such shares of
Restricted Shares, if applicable. Without limiting the generality of the
adjustment provision under Section 4.2 of the 2003 Stock Incentive Plan,
the Company acknowledges that it has no intention to adversely impact Executive
by reason of extraordinary factors relating to the capital structure of the
Company or the Common Stock, such as
extraordinary dividends, and if an event occurs that could reasonably be
expected to impair Executive’s ability to achieve the Target Trading Prices,
the Compensation Committee of the Board will use reasonable judgment, which
decision shall be dispositive, to adjust the Target Trading Prices in a manner
consistent with such event.

 

For purposes of
this Agreement, the “Target
Trading Price” shall mean the closing sales price of a share of Common Stock on
any date as reported by the principal national securities exchange in the
United States on which it is listed or admitted to trading or if not traded on
any such exchange, as quoted by the National Association of Securities Dealers
or the OTC Bulletin Board or as quoted on the pink sheets by the National
Quotation Bureau.

 

(3)                                   Notwithstanding the
foregoing, if Executive’s employment is terminated by reason of his death or
Disability, any unvested portion of the Initial Option (or any other
stock option then held by Executive) shall become vested and exercisable and
the unvested portion of the Restricted Shares for which the applicable Target
Trading Price requirement has been satisfied prior to such termination shall
vest and cease to be Restricted Shares.

 

(4)                                   Upon the occurrence
of a Change in Control (as defined in the Superior Essex Inc. 2005 Incentive
Plan), Section 8(d) of the Agreement shall apply with respect to all
of Executive’s outstanding equity awards, including the Initial Option and the
Restricted Shares.

 

2

 

EXHIBIT B

 

PERQUISITES

 

(1)                                   The Company shall provide a car allowance to
Executive in the amount of $1,200 per month (which is intended to be inclusive
of any income taxes owed by Executive as a result of all or any portion of this
allowance being determined to be compensation to Executive and Executive will
not receive additional compensation to reimburse Executive for taxes with
respect to the allowance). Executive shall be responsible for all costs of
operating and maintaining the vehicle, including insurance, title, taxes and
fuel. Subject to compliance with the Company’s policies, the Company will reimburse
or pay deductible business expenses related to the use of the vehicle, subject
to Company policies, such as parking fees and fuel for business mileage.

 

(2)                                   The Company shall reimburse Executive,
in accordance with the Company’s telecommunications policy, for the telecommunications and computing
costs to provide Executive with an effective office capability at home and
while traveling.

 

(3)                                   The Company agrees to pay the first $7,500 of
reasonable expenses incurred by Executive per year for financial planning and
counseling in accordance with the Company’s policy. Any expenses in excess of
$7,500 per year shall be borne by Executive.

 

(4)                                   The Company shall pay the premium for
Executive’s disability insurance consistent with past practice.

 

 

EXHIBIT C

 

RELEASE

 

In exchange
for a portion of the benefits described in the attached Amended and Restated
Employment Agreement dated as of March 10, 2006 (the “Agreement”), to
which I agree I am not otherwise entitled, I hereby release Superior Essex Inc.
(the “Company”), its respective affiliates, subsidiaries, predecessors,
successors, assigns, officers, directors, employees, agents, stockholders,
attorneys, and insurers, past, present and future (the “Released Parties”) from
any and all claims of any kind which I now have or may have against the
Released Parties, whether known or unknown to me, by reason of facts which have
occurred on or prior to the date that I have signed this Release in connection
with, or in any way related to or arising out of, my employment or termination
of employment with the Company; provided that such released claims shall
not include any claims to enforce my rights (i) under, or with respect to,
the Agreement, (ii) to indemnification provided at law or pursuant to the
Company’s (or an affiliate’s) By-Laws or insurance or to directors’ and
officers’ liability or employment practices insurance coverage, (iii) under
COBRA or my vested rights under benefit or incentive plans; or (iv) as a
stockholder. Notwithstanding the generality of the preceding sentence, such
released claims include, without limitation, any and all claims under federal,
state or local laws pertaining to employment, including the Age Discrimination
in Employment Act, Title VII of the Civil Rights Act of 1964, as amended, 42
U.S.C. Section 2000e et seq., the Fair Labor Standards Act, as
amended, 29 U.S.C. Section 201 et seq., the Americans with
Disabilities Act, as amended, 42 U.S.C. Section 12101 et seq., the
Reconstruction Era Civil Rights Act, as amended, 42 U.S.C. Section 1981 et
seq., the Rehabilitation Act of 1973, as amended, 29 U.S.C. Section 701
et seq., the Family and Medical Leave Act of 1992, 29 U.S.C. Section 2601
et seq., and any and all state or local laws regarding employment
discrimination and/or federal, state or local laws of any type or description
regarding employment, including, but not limited to, any claims arising from or
derivative of my employment with the Company, as well as any and all claims
under state contract or tort law or otherwise.

 

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

 

I understand
and agree that I must forever continue to keep confidential all proprietary or
confidential information which I learned while employed by the Company, whether
oral or written and as defined in the Agreement (“Confidential Information”)
and shall not make use of any such Confidential Information on my own behalf or
on behalf of any other person or entity, except as specifically authorized by
the Agreement.

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

 

	
   

  	
   

  	
   

  	
   

  
	
  DATE

  	
  David S.
  Aldridge

  

 

2

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