Document:

4.00% Convertible Subordinated Debenture

 Exhibit 4.5 
  

$110,000,000 
  
 Cable Design Technologies Corporation 
  
 4.00% Convertible Subordinated Debentures due July 15, 2023 
  
 PURCHASE AGREEMENT 
  
 July 1, 2003 
  
 CREDIT SUISSE FIRST BOSTON LLC, 
       Eleven Madison Avenue, 
       New York, N.Y. 10010-3629 
  
 Dear Sirs: 
  
 1. Introductory. Cable Design Technologies Corporation, a Delaware corporation (the “Company”),
proposes, subject to the terms and conditions stated herein, to issue and sell to Credit Suisse First Boston LLC, as initial purchaser (the “Purchaser”) U.S. $110,000,000 principal amount of its 4.00% Convertible Subordinated
Debentures due July 15, 2023 (the “Offered Securities”) to be issued under an indenture, dated as of July 8, 2003 (the “Indenture”), between the Company and U.S. Bank N.A., as Trustee. The United States Securities
Act of 1933 is herein referred to as the “Securities Act.” 
  
 The holders of the Offered Securities will be entitled to the benefits of a Registration Rights Agreement of even date herewith among the Company and the Purchaser (the “Registration Rights
Agreement”), pursuant to which the Company agrees to file a registration statement with the Securities Exchange Commission (the “Commission”) registering the resale by such holders of the Offered Securities and the
Underlying Shares, as hereinafter defined, under the Securities Act; provided that, in order to receive such benefits, the holders of Offered Securities must comply with the procedures set forth in the Registration Rights Agreement. 
  

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 The Company hereby agrees with the Purchaser as follows: 
  
 2. Representations and Warranties of the Company. The Company
represents and warrants to, and agrees with, the Purchaser that: 
  
 (a) A preliminary offering circular and an offering circular relating to the Offered Securities to be offered by the Company have been prepared by the Company. Such preliminary offering circular (the
“Preliminary Offering Circular”) and offering circular (the “Offering Circular”), as supplemented as of the date of this Agreement, including the information specifically incorporated by reference therein, are
hereinafter collectively referred to as the “Offering Document”. On the date of this Agreement, the Offering Document does not include any untrue statement of a material fact or omit to state any material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not misleading. The preceding sentence does not apply to statements in or omissions from the Offering Document based upon written information furnished to the
Company by Credit Suisse First Boston LLC (“CSFB”) specifically for use therein, it being understood and agreed that the only such information is that described as such in Section 7(b) hereof. Except as disclosed in the Offering
Document, on the date of this Agreement, the Company’s Annual Report on Form 10-K most recently filed with the Commission and all subsequent reports (collectively, the “Exchange Act Reports”) which have been filed by the
Company with the Commission or sent to stockholders pursuant to the Securities Exchange Act of 1934 (the “Exchange Act”) do not include any untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading. Such documents, when they were filed with the Commission, conformed in all material respects to the requirements of the Exchange Act and the rules and
regulations of the Commission thereunder. 
  
 (b)
The Company has been duly incorporated and is an existing corporation in good standing under the laws of the State of Delaware, with power and authority (corporate and other) to own its properties and conduct its business as described in the
Offering Document; and the Company is duly qualified to do business as a foreign corporation in good standing in all other jurisdictions in which its ownership or lease of property or the conduct of its business requires such qualification, except
where failure to do so would not have a material adverse effect on the condition (financial or other), business, properties or results of operations of the Company and its subsidiaries taken as a whole (“Material Adverse Effect”).

  
 (c) Each subsidiary of the Company has been
duly incorporated and is an existing corporation in good standing under the laws of the jurisdiction of its incorporation, with power and authority (corporate and other) to own its properties and conduct its business as described in the Offering
Document; and each subsidiary of the Company is duly qualified to do business as a foreign corporation in good standing in all other jurisdictions in which its ownership or lease of property or the conduct of its business requires such
qualification, except where failure to do so would not have a Material Adverse Effect; all of the issued and 

  

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outstanding capital stock of each subsidiary of the Company has been duly authorized and validly issued and is fully paid and nonassessable; and, except as
set forth in Schedule 2(c), the capital stock of each subsidiary owned by the Company, directly or through subsidiaries, is owned free from liens, encumbrances and defects. 
  
 (d) The Indenture has been duly authorized; the Offered Securities have been duly authorized; and when the
Offered Securities are delivered and paid for pursuant to this Agreement on the Closing Date (as defined below), the Indenture will have been duly executed and delivered, such Offered Securities will have been duly executed, authenticated, issued
and delivered and will conform in all material respects to the description thereof contained in the Offering Document and the Indenture and such Offered Securities will constitute valid and legally binding obligations of the Company, enforceable in
accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles. 

 
 (e) When the Offered Securities are delivered and paid
for pursuant to this Agreement on the Closing Date, such Offered Securities will be convertible into the shares of common stock (“Underlying Shares”) of the Company in accordance with the terms of the Indenture; the Underlying
Shares initially issuable upon conversion of such Offered Securities have been duly authorized and reserved for issuance upon such conversion and, when issued upon such conversion, will be validly issued, fully paid and nonassessable; the
outstanding Underlying Shares have been duly authorized and validly issued, are fully paid and nonassessable and conform to the description thereof contained in the Offering Document; and the stockholders of the Company have no preemptive rights
with respect to the Offered Securities or the Underlying Shares. 
  
 (f) Except as disclosed in the Offering Document, there are no contracts, agreements or understandings between the Company and any person that would give rise to a valid claim against the Company or any Purchaser for
a brokerage commission, finder’s fee or other like payment. 
  
 (g) No consent, approval, authorization, or order of, or filing with, any governmental agency or body or any court is required for the consummation of the transactions contemplated by this Agreement and the
Registration Rights Agreement in connection with the issuance and sale of the Offered Securities by the Company except for the order of the Commission declaring the Shelf Registration Statement (as defined in the Registration Rights Agreement)
effective. 
  

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 (h) The execution, delivery and performance of the Indenture, this Agreement, the
Registration Rights Agreement, and the issuance and sale of the Offered Securities and compliance with the terms and provisions thereof will not result in a breach or violation of any of the terms and provisions of, or constitute a default under,
any statute, any rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company or any subsidiary of the Company or any of their properties, or any material agreement or
instrument to which the Company or any such subsidiary is a party or by which the Company or any such subsidiary is bound or to which any of the properties of the Company or any such subsidiary is subject, or the charter or by-laws of the Company or
any such subsidiary, and the Company has full power and authority to authorize, issue and sell the Offered Securities as contemplated by this Agreement. 
  
 (i) This Agreement, and the Registration Rights Agreement, have been duly authorized, executed and delivered by the Company. 

 
 (j) Except as disclosed in the Offering Document, the
Company and its subsidiaries have good and marketable title to all real properties and all other properties and assets owned by them, in each case free from liens, encumbrances and defects that would materially affect the value thereof or materially
interfere with the use made or to be made thereof by them; and except as disclosed in the Offering Document, the Company and its subsidiaries hold any leased real or personal property under valid and enforceable leases with no exceptions that would
materially interfere with the use made or to be made thereof by them. 
  
 (k) The Company and its subsidiaries possess adequate certificates, authorities or permits issued by appropriate governmental agencies or bodies necessary to conduct the business now operated by them and have not
received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit that, if determined adversely to the Company or any of its subsidiaries, would individually or in the aggregate have a
Material Adverse Effect. 
  
 (l) No labor dispute
with the employees of the Company or any subsidiary exists or, to the knowledge of the Company, is imminent that might have a Material Adverse Effect. 
  
 (m) The Company and its subsidiaries own, possess or can acquire on reasonable terms, adequate trademarks, trade names and other rights to
inventions, know-how, patents, copyrights, confidential information and other intellectual property (collectively, “intellectual property rights”) necessary to conduct the business now operated by them, or presently employed by
them, and have not received any notice of infringement of or conflict with asserted rights of others with 

  

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respect to any intellectual property rights that, if determined adversely to the Company or any of its subsidiaries, would individually or in the aggregate
have a Material Adverse Effect. 
  
 (n) Except as
disclosed in the Offering Document, to the Knowledge of the Company, neither the Company nor any of its subsidiaries is in violation of any statute, any rule, regulation, decision or order of any governmental agency or body or any court, domestic or
foreign, relating to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “environmental
laws”), owns or operates any real property contaminated with any substance that is subject to any environmental laws, is liable for any off-site disposal or contamination pursuant to any environmental laws, or is subject to any claim
relating to any environmental laws, which violation, contamination, liability or claim would individually or in the aggregate have a Material Adverse Effect; and the Company is not aware of any pending investigation which might lead to such a claim.

  
 (o) Except as disclosed in the Offering
Document, there are no pending actions, suits or proceedings against or affecting the Company, any of its subsidiaries or any of their respective properties that, if determined adversely to the Company or any of its subsidiaries, would individually
or in the aggregate have a Material Adverse Effect, or would materially and adversely affect the ability of the Company to perform its obligations under the Indenture, this Agreement, the Registration Rights Agreement, or which are otherwise
material in the context of the sale of the Offered Securities; and no such actions, suits or proceedings are, to the Company’s knowledge, threatened or contemplated. 
  
 (p) The financial statements included in the Offering Document present fairly the financial position of the
Company and its consolidated subsidiaries as of the dates shown and their results of operations and cash flows for the periods shown, and, except as otherwise disclosed in the Offering Document, such financial statements have been prepared in
conformity with the generally accepted accounting principles in the United States applied on a consistent basis. 
  
 (q) Except as disclosed in the Offering Document, since the date of the latest audited financial statements included in the Offering
Document there has been no material adverse change, nor any development or event involving a prospective material adverse change, in the condition (financial or other), business, properties or results of operations of the Company and its
subsidiaries taken as a whole, and, except as disclosed in or contemplated by the Offering Document, there has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its capital stock. 
  

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 (r) The Company is subject to the reporting requirements of either Section 13 or Section
15(d) of the Securities Exchange Act of 1934 and files reports with the Commission on the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system. 
  
 (s) The Company is not an open-end investment company, unit investment trust or face-amount certificate company that is or is required to
be registered under Section 8 of the United States Investment Company Act of 1940 (the “Investment Company Act”); and the Company is not and, after giving effect to the offering and sale of the Offered Securities and the application
of the proceeds thereof as described in the Offering Document, will not be an “investment company” as defined in the Investment Company Act. 
  
 (t) No securities of the same class (within the meaning of Rule 144A(d)(3) under the Securities Act) as the Offered Securities are listed
on any national securities exchange registered under Section 6 of the Exchange Act or quoted in a U.S. automated inter-dealer quotation system. 
  
 (u) Assuming the truth of the representations and warranties and compliance with the covenants in Section 4 of this Agreement, the offer
and sale of the Offered Securities in the manner contemplated by this Agreement will be exempt from the registration requirements of the Securities Act by reason of Section 4(2) thereof and Regulation S thereunder; and it is not necessary to qualify
an indenture in respect of the Offered Securities under the United States Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”). 
  

(v) Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf (i) has, within the six-month period
prior to the date hereof, offered or sold in the United States or to any U.S. person (as such terms are defined in Regulation S under the Securities Act) the Offered Securities or any security of the same class or series as the Offered Securities or
(ii) has offered or will offer or sell the Offered Securities (A) in the United States by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) under the Securities Act or (B) with respect to any such
securities sold in reliance on Rule 903 of Regulation S (“Regulation S”) under the Securities Act, by means of any directed selling efforts within the meaning of Rule 902(c) of Regulation S. The Company, its affiliates and any
person acting on its or their behalf have complied and will comply with the offering restrictions requirement of Regulation S. The Company has not entered and will not enter into any contractual arrangement with respect to the distribution of the
Offered Securities except for this Agreement. 
  

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 3. Purchase, Sale and Delivery of Offered Securities. On the basis of the representations,
warranties and agreements herein contained, but subject to the terms and conditions herein set forth, the Company agrees to sell to the Purchaser, and the Purchaser agrees to purchase from the Company, at a purchase price of 97.0% of the principal
amount thereof plus accrued interest from July 8, 2003 to the Closing Date (as hereinafter defined), U.S. $110,000,000 principal amount of the Offered Securities. 
  
 The Company will deliver against payment of the purchase price the Firm Securities in the form of one or more permanent
global Securities in definitive form (the “Global Securities”) deposited with the Trustee as custodian for The Depository Trust Company (“DTC”) and registered in the name of Cede & Co., as nominee for DTC.
Interests in any permanent global Securities will be held only in book-entry form through DTC, except in the limited circumstances described in the Offering Document. Payment for the Offered Securities shall be made by the Purchaser in Federal (same
day) funds by official check or checks or wire transfer to an account at a bank designated by the Company and reasonably acceptable to CSFB at the office of Skadden, Arps, Slate, Meagher & Flom LLP at 10:00 A.M. (New York time), on July 8, 2003
or at such other time not later than seven full business days thereafter as CSFB and the Company determine, such time being herein referred to as the “Closing Date”, against delivery to the Trustee as custodian for DTC of the Global
Securities representing all of the Offered Securities. The Global Securities will be made available for checking at the above office of Skadden, Arps, Slate, Meagher & Flom LLP at least 24 hours prior to the Closing Date. 
  
 4. Representations by Purchaser; Resale by Purchaser. (a) The
Purchaser represents and warrants to the Company that it is an “accredited investor” within the meaning of Regulation D under the Securities Act. 
  
 (b) The Purchaser acknowledges that the Offered Securities have not been registered under the Securities Act and may not be offered or
sold within the United States or to, or for the account or benefit of, U.S. persons except in accordance with Regulation S or pursuant to an exemption from the registration requirements of the Securities Act. The Purchaser represents and agrees that
it has offered and sold the Offered Securities, and will offer and sell the Offered Securities only in accordance with Rule 903 or Rule 144A under the Securities Act (“Rule 144A”). Accordingly, neither the Purchaser nor its
affiliates, nor any persons acting on its or their behalf, have engaged or will engage in any directed selling efforts with respect to the Offered Securities, and the Purchaser, its affiliates and all persons acting on its or their behalf have
complied and will comply with the offering restrictions requirement of Regulation S and Rule 144A. 
  
 (c) The Purchaser agrees that it and each of its affiliates has not entered and will not enter into any contractual arrangement with
respect to the distribution of the Offered Securities except with the prior written consent of the Company. 
  

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 (d) The Purchaser agrees that it and each of its affiliates will not offer or sell the
Offered Securities in the United States by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) under the Securities Act, including, but not limited to (i) any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast over television or radio, or (ii) any seminar or meeting whose attendees have been invited by any general solicitation or general advertising. The Purchaser agrees,
with respect to resales made in reliance on Rule 144A of any of the Offered Securities, to deliver either with the confirmation of such resale or otherwise prior to settlement of such resale a notice to the effect that the resale of such Offered
Securities has been made in reliance upon the exemption from the registration requirements of the Securities Act provided by Rule 144A. 
  
 (e) The Purchaser represents and agrees that (i) it has not offered or sold and prior to the expiry of a period of six months from the
Closing Date, will not offer or sell any Offered Securities to persons in the United Kingdom except to persons whose ordinary activities involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for the
purposes of their businesses or otherwise in circumstances which have not resulted and will not result in an offer to the public in the United Kingdom within the meaning of the Public Offers of Securities Regulations 1995; (ii) it has only
communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000 (the
“FSMA”)) received by it in connection with the issue or sale of any Offered Securities in circumstances in which section 21(1) of the FSMA does not apply to the Issuer; and (iii) it has complied and will comply with all applicable
provisions of the FSMA with respect to anything done by it in relation to the Offered Securities in, from or otherwise involving the United Kingdom. 
  
 5. Certain Agreements of the Company. The Company agrees with the Purchaser that: 
  
 (a) The Company will advise CSFB promptly of any proposal to amend or supplement the Offering Document and
will not effect such amendment or supplementation without CSFB’s consent, such consent not to be unreasonably withheld. If, at any time prior to the completion of the resale of the Offered Securities by the Purchaser, any event occurs as a
result of which the Offering Document as then amended or supplemented would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, the Company promptly will notify CSFB of such event and 

  

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promptly will prepare, at its own expense, an amendment or supplement which will correct such statement or omission or effect such compliance. Neither
CSFB’s consent to, nor its delivery to offerees or investors of, any such amendment or supplement shall constitute a waiver of any of the conditions set forth in Section 6. 
  
 (b) The Company will furnish CSFB copies of any preliminary offering circular, the Offering Document and all
amendments and supplements to such documents, in each case as soon as available and in such quantities as CSFB reasonably requests, and the Company will furnish to CSFB on the date hereof three copies of the Offering Document signed by a duly
authorized officer of the Company, one of which will include the independent accountants’ reports therein manually signed by such independent accountants. At any time when the Company is not subject to Section 13 or 15(d) of the Exchange Act,
the Company will promptly furnish or cause to be furnished to CSFB and, upon request of holders and prospective purchasers of the Offered Securities, to such holders and purchasers, copies of the information required to be delivered to holders and
prospective purchasers of the Offered Securities pursuant to Rule 144A(d)(4) under the Securities Act (or any successor provision thereto) in order to permit compliance with Rule 144A in connection with resales by such holders of the Offered
Securities. The Company will pay the expenses of printing and distributing to the Purchaser all such documents. 
  
 (c) The Company will arrange for the qualification of the Offered Securities for sale and the determination of their eligibility for
investment under the laws of such jurisdictions in the United States and Canada as CSFB designates and will continue such qualifications in effect so long as required for the resale of the Offered Securities by the Purchaser, provided that the
Company will not be required to qualify as a foreign corporation or to file a general consent to service of process in any such state. 
  
 (d) During the period of two years after the Closing Date, the Company will, upon request, furnish to the Purchaser and any holder of
Offered Securities a copy of the restrictions on transfer applicable to the Offered Securities. 
  
 (e) During the period of two years after the Closing Date, the Company will not resell, and will use its reasonable best efforts to
prevent any of its affiliates (as defined in Rule 144 under the Securities Act) from reselling, any of the Offered Securities that have been reacquired by any of them. 
  
 (f) During the period of two years after the Closing Date, the Company will not be or become, an open-end
investment company, unit investment trust or face-amount certificate company that is or is required to be registered under Section 8 of the Investment Company Act. 
  

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 (g) The Company will pay all of its own expenses incidental to the performance of its
obligations under this Agreement, the Indenture, and the Registration Rights Agreement, including (i) the fees and expenses of the Trustee and its professional advisers; (ii) all of its expenses in connection with the execution, issue,
authentication, packaging and initial delivery of the Offered Securities and, as applicable, the Exchange Securities (as defined in the Registration Rights Agreement), the preparation and printing of this Agreement, the Registration Rights
Agreement, the Offered Securities, the Indenture, the Offering Document and amendments and supplements thereto, and any other document relating to the issuance, offer, sale and delivery of the Offered Securities and as applicable, the Exchange
Securities; (iii) the cost of listing the Offered Securities and qualifying the Offered Securities for trading in The PortalSM Market (“PORTAL”) and any expenses incidental thereto; (iv) the cost of any advertising approved by the Company in connection with the issue of the Offered Securities. (v) any expenses (including reasonable fees and
disbursements of counsel) incurred in connection with qualification of the Offered Securities or the Exchange Securities for sale under the laws of such jurisdictions in the United States and Canada as CSFB designates and the printing of memoranda
relating thereto, (vi) for any fees charged by investment rating agencies for the rating of the Securities, and (vii) for expenses incurred in distributing the Offering Document (including any amendments and supplements thereto) to the Purchaser.

  
 (h) In connection with the offering, until
CSFB shall have notified the Company of the completion of the resale of the Offered Securities, neither the Company nor any of its affiliates has or will, either alone or with one or more other persons, bid for or purchase for any account in which
it or any of its affiliates has a beneficial interest any Offered Securities or attempt to induce any person to purchase any Offered Securities; and neither it nor any of its affiliates will make bids or purchases for the purpose of creating actual,
or apparent, active trading in, or of raising the price of, the Offered Securities; provided, however, that notwithstanding the foregoing, the Company may repurchase shares of its Common Stock as described in the “Use of Proceeds” section
of the Offering Document. 
  
 (i) For a period of
90 days after the date of the initial offering of the Offered Securities by the Purchaser, the Company will not offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, or file with the Commission a registration
statement under the Securities Act relating to, any United States dollar-denominated debt securities issued or guaranteed by the Company and having a maturity of more than one year from the date of issue or any shares of Common Stock of the Company
or securities convertible into or exchangeable or exercisable for shares of Common Stock of the Company or warrants or other rights to purchase shares of Common Stock of the Company, or 

  

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publicly disclose the intention to make any such offer, sale, pledge, disposition or filing, without the prior written consent of CSFB, except (i) issuances
of Common Stock pursuant to the conversion or exchange of convertible or exchangeable securities or the exercise of warrants or options, in each case outstanding on the date hereof, (ii) grants of employee or director stock options pursuant to the
terms of a plan in effect on the date hereof, (iii) issuances of Common Stock pursuant to the exercise of such options or issuances of Common Stock pursuant to the Company’s dividend reinvestment plan or (iv) issuances of restricted common
stock to employees or directors consistent with practice, provided that such employees or directors will be prohibited from reselling such restricted stock for a period of 90 days after the date of the initial offering of the Offered Securities by
the Purchaser. The Company will not at any time offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, any securities under circumstances where such offer, sale, pledge, contract or disposition would cause the
exemption afforded by Section 4(2) of the Securities Act or the safe harbor of Regulation S thereunder to cease to be applicable to the offer and sale of the Offered Securities. 
  
 6. Conditions of the Obligation of the Purchaser. The obligation of the Purchaser to purchase and pay for the Offered
Securities on the Closing Date will be subject to the accuracy of the representations and warranties on the part of the Company herein, to the accuracy of the statements of officers of the Company made pursuant to the provisions hereof, to the
performance by the Company of its obligations hereunder and to the following additional conditions precedent: 
  
 (a) The Purchaser shall have received a letter, dated the date of this Agreement, of Deloitte & Touche, LLP confirming that they are
independent public accountants within the meaning of the Securities Act and the applicable published rules and regulations thereunder (“Rules and Regulations”) and to the effect that: 
  
 (i) in their opinion the financial statements examined by
them and included in the Offering Document and in the Exchange Act Reports comply as to form in all material respects with the applicable accounting requirements of the Securities Act and the related published Rules and Regulations; 
  
 (ii) they have performed the procedures specified by the
American Institute of Certified Public Accountants for a review of interim financial information as described in Statement of Auditing Standards No. 71, Interim Financial Information, or Statement of Auditing Standards No. 100, Interim
Financial Information, as appropriate, on the unaudited financial statements included in the Offering Document and in the Exchange Act Reports; 
  

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 (iii) on the basis of the review referred to in clause (ii) above, a reading of the
latest available interim financial statements of the Company, inquiries of officials of the Company who have responsibility for financial and accounting matters and other specified procedures, nothing came to their attention that caused them to
believe that: 
  
 (A) the unaudited financial
statements included in the Offering Document or in the Exchange Act Reports do not comply as to form in all material respects with the applicable accounting requirements of the Securities Act and the related published Rules and Regulations or any
material modifications should be made to such unaudited financial statements for them to be in conformity with generally accepted accounting principles; 
  
 (B) the unaudited consolidated net sales, net operating income, net income and net income per share amounts for the 9-month periods ended
April 30, 2002 and April 30, 2003 included in the Offering Document do not agree with the amounts set forth in the unaudited consolidated financial statements for those same periods or were not determined on a basis substantially consistent with
that of the corresponding amounts in the audited statements of income; 
  
 (C) at the date of the latest available balance sheet read by such accountants, or at a subsequent specified date not more than three business days prior to the date of this Agreement, there was any material change in
the total capital stock and additional paid in capital or any material increase in total current liabilities or long-term debt of the Company and its consolidated subsidiaries or, at the date of the latest available balance sheet read by such
accountants, there was any decrease in consolidated net current assets or stockholders’ equity, as compared with amounts shown on the latest balance sheet included in the Offering Document; or 
  
 (D) for the period from the closing date of the latest
income statement included in the Offering Document to the closing date of the latest available income statement read by such accountants there were any decreases, as compared with the corresponding period of the previous year, in consolidated net
sales, operating income or in the total or per share amounts of consolidated net income or in the ratio of earnings to fixed charges; 
  

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 except in all cases set forth in clauses (C) and (D) above for changes, increases or decreases which the
Offering Document discloses have occurred or may occur or which are described in such letter; and 
  
 (iv) they have compared specified dollar amounts (or percentages derived from such dollar amounts) and other financial information
contained in the Offering Document and the Exchange Act Reports (in each case to the extent that such dollar amounts, percentages and other financial information are derived from the general accounting records of the Company and its subsidiaries
subject to the internal controls of the Company’s accounting system or are derived directly from such records by analysis or computation) with the results obtained from inquiries, a reading of such general accounting records and other
procedures specified in such letter and have found such dollar amounts, percentages and other financial information to be in agreement with such results, except as otherwise specified in such letter. 
  
 (b) Subsequent to the execution and delivery of this
Agreement, there shall not have occurred (i) any change, or any development or event involving a prospective change, in the condition (financial or other), business, properties or results of operations of the Company and its subsidiaries taken as
one enterprise which, in the judgment of the Purchaser, is material and adverse and makes it impractical or inadvisable to proceed with completion of the offering or the sale of and payment for the Offered Securities; (ii) any downgrading in the
rating of any debt securities of the Company by any “nationally recognized statistical rating organization” (as defined for purposes of Rule 436(g) under the Securities Act), or any public announcement that any such organization has under
surveillance or review its rating of any debt securities of the Company (other than an announcement with positive implications of a possible upgrading, and no implication of a possible downgrading, of such rating); (iii) any change in U.S. or
international financial, political or economic conditions or currency exchange rates or exchange controls as would, in the judgment of the Purchaser, be likely to prejudice materially the success of the proposed issue, sale or distribution of the
Offered Securities, whether in the primary market or in respect of dealings in the secondary market, (iv) any material suspension or material limitation of trading in securities generally on the New York Stock Exchange, or any setting of minimum
prices for trading on such exchange, or any suspension of trading of any securities of the Company on any exchange or in the over-the-counter market; (v) any banking moratorium declared by U.S. Federal or New York authorities; (vi) any major
disruption of settlements of securities or clearance services in the United States or (vii) any attack on, outbreak or escalation of hostilities or act of terrorism involving the United States, any declaration of war by Congress or any other
national or international calamity or emergency if, in the judgment of the Purchaser, 

  

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the effect of any such attack, outbreak, escalation, act, declaration, calamity or emergency makes it impractical or inadvisable to proceed with completion
of the offering or sale of and payment for the Offered Securities. 
  
 (c) The Purchaser shall have received an opinion, dated the Closing Date, of Kirkland & Ellis LLP, (“K&E”) counsel for the Company, that: 
  
 (i) Based solely upon K&E’s review of the Company
Good Standing Certificate and the Subsidiary Good Standing Certificates, the Company and each of the Subsidiaries is a corporation existing and in good standing under the General Corporation Law of the State of Delaware. 
  
 (ii) The Company and each of the Subsidiaries has the
corporate power to own and lease its properties and to conduct its business as described in the Offering Circular and to enter into and perform its obligations under the Transaction Documents. 
  
 (iii) The Company has duly authorized, executed and
delivered each of the Transaction Documents. 
  
 (iv) The Indenture is a valid and binding obligation of the Company and (assuming the due authorization, execution and delivery thereof by the other parties thereto) is enforceable against the Company in accordance with its terms.

  
 (v) The Offered Securities have been duly
authorized, executed and delivered and when paid for by the Initial Purchaser in accordance with the terms of the Purchase Agreement (assuming the due authentication and delivery of the Offered Securities by the Trustee in accordance with the
Indenture), the Offered Securities will constitute the valid and binding obligations of the Company, enforceable against the Company in accordance with their terms and be entitled to the benefits of the Indenture. 
  
 (vi) The statements in the Offering Circular under the
headings “Description of Capital Stock” and “Description of the Debentures” insofar as such statements purport to summarize certain provisions of the documents referred to therein and subject to the limitations contained in such
statements, provide a fair and accurate summary of such provisions in all material respects. 
  

 14 

 (vii) The execution and delivery of the Transaction Documents and the consummation of the
transactions contemplated thereby do not and will not conflict with or constitute or result in a breach or default under (or an event which with notice or the passage of time or both would constitute a default under) or violation of any of, (i) the
Organizational Documents, (ii) any Applicable Law, or (iii) the terms or provisions of any Specified Contract (provided that we express no opinion with respect to any financial test with respect to any cross-default provision in any Specified
Contract with respect to a default in a contract other than a Specified Contract). 
  
 (viii) No consent, waiver, approval, authorization or order of any court or governmental authority is required for the issuance and sale
by the Company of the Offered Securities to the Initial Purchaser or the consummation by the Company of the other transactions contemplated by the Transaction Documents, except such as may be required under the Securities Act of 1933, as amended
(the “Securities Act”), the Exchange Act of 1934, as amended (the “Exchange Act”), the Trust Indenture Act of 1939, as amended (the “TIA”), the securities or blue sky laws of the various states (and the rules and
regulations thereunder), and authority that may be applicable to the Company by virtue of the nature of its business, as to which K&E express no opinion in this paragraph. 
  
 (ix) To K&E’s knowledge, no legal or governmental proceedings are pending to which the Company is a
party or to which the property or assets of the Company is subject which seek to restrain, enjoin or prevent the consummation of or otherwise challenge the issuance or sale of the Offered Securities to be sold to the Initial Purchaser or the
consummation of the other transactions contemplated by the Purchase Agreement. 
  
 (x) Assuming (i) the accuracy of the representations and warranties of the Company set forth in Section 2 of the Purchase Agreement and of
the Purchaser set forth in Section 4 of the Purchase Agreement, (ii) the due performance of the Company of the covenants and agreements set forth in Sections 5 of the Purchase Agreement and of the Purchaser set forth in Section 4 of the Purchase
Agreement, (iii) Purchaser’s compliance with the offering and transfer procedures and restrictions described in the Offering Circular, (iv) the accuracy of the representations and warranties made to the Purchaser in accordance with the Purchase
Agreement and the Offering Circular by the purchasers to whom the Purchaser initially resell the Offered Securities, and (v) that purchasers to whom the Purchaser initially resell the Offered Securities 

  

 15 

 
receive a copy of the Offering Circular, the offer, sale and delivery of the Offered Securities to the Purchaser in the manner contemplated by the Purchase
Agreement and the Offering Circular and the initial resale of the Offered Securities by the Purchaser in the manner contemplated by the Purchase Agreement and Offering Circular do not require registration under the Securities Act and the Indenture
is not required to be qualified under the TIA, it being understood that K&E does not express any opinion as to any subsequent resale of any Offered Security. 
  
 (xi) The Offered Securities delivered on the date hereof are convertible into Common Stock of the Company in
accordance with the terms of the Indenture. The shares of Common Stock of the Company initially issuable upon conversion of the Offered Securities pursuant to the Indenture (the “Conversion Shares”) have been duly authorized and reserved
for issuance by all necessary corporate action and, when issued upon conversion of the Offered Securities in accordance with the terms of the Indenture, will be validly issued, fully paid and nonassessable and free and clear of any preemptive rights
or any similar rights arising under any Applicable Law, the Organizational Documents or any Specified Contract. 
  
 (xii) The Company is not, or immediately after the sale of the Offered Securities to the Initial Purchaser and application of the net
proceeds therefrom as described in the Offering Circular under the caption “Use of Proceeds” will not be, an “investment company” as such term is defined in the Investment Company Act of 1940, as amended. 
  
 (xiii) Based upon K&E’s participation in the
conferences and its document review identified in its opinion, K&E’s understanding of applicable law and the experience K&E has gained in its practice thereunder and relying as to materiality to a large extent upon the opinions and
statements of officers of the Company, K&E can advise the Initial Purchaser that nothing has come to K&E’s attention that has caused it to conclude that the Offering Circular, as of its date and the date hereof, contained an untrue
statement of a material fact or omitted to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 
  
 Capitalized terms used in this Section 6(c) shall have the meanings ascribed to such terms in
the opinion provided by K&E dated as of the Closing Date. 
  

 16 

 (d) The Purchaser shall have received from Skadden, Arps, Slate, Meagher & Flom LLP,
counsel for the Purchaser, such opinion or opinions, dated the Closing Date, with respect to the incorporation of the Company, the validity of the Offered Securities, the Offering Circular, the exemption from registration for the offer and sale of
the Offered Securities by the Company to the Purchaser and the resales by the Purchaser as contemplated hereby and other related matters as CSFB may require, and the Company shall have furnished to such counsel such documents as they request for the
purpose of enabling them to pass upon such matters. 
  
 (e) The Purchaser shall have received a certificate, dated the Closing Date, of the President or any Vice President and a principal financial or accounting officer of the Company in which such officers, to the best of their knowledge after
reasonable investigation, shall state that the representations and warranties of the Company in this Agreement are true and correct, that the Company has complied with all agreements and satisfied all conditions on its part to be performed or
satisfied hereunder at or prior to the Closing Date, and that, subsequent to the date of the most recent financial statements in the Offering Document there has been no material adverse change, nor any development or event involving a prospective
material adverse change, in the condition (financial or other), business, properties or results of operations of the Company and its subsidiaries taken as a whole except as set forth in the Offering Document or as described in such certificate.

  
 (f) The Purchaser shall have received a
letter, dated the Closing Date, of Deloitte & Touche, LLP which meets the requirements of subsection (a) of this Section, except that the specified date referred to in such subsection will be a date not more than three days prior to the Closing
Date for the purposes of this subsection. 
  
 (g)
On or prior to the Closing Date, the Purchaser shall have received lockup letters from each of the executive officers and directors of the Company in the form attached hereto as Schedule 6(g). 
  
 (h) The Purchaser shall have received a letter, dated the
Closing Date, from William Cann, Vice President and Chief Financial Officer of the Company, certifying certain information contained in the Offering Documents related to the Company’s fiscal year ended July 31, 2001. 
  
 The Company will furnish the Purchaser with such conformed copies of such
opinions, certificates, letters and documents as the Purchaser reasonably request. CSFB may in its sole discretion waive compliance with any conditions to the obligations of the Company hereunder. 
  

 17 

 7. Indemnification and Contribution. (a) The Company will indemnify and hold harmless the
Purchaser, its officers, partners, members, directors and each person, if any, who controls such Purchaser within the meaning of Section 15 of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which the
Purchaser may become subject, under the Securities Act or the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in the Offering Document, or any amendment or supplement thereto, or any related preliminary offering circular, or the Exchange Act Reports, or arise out of or are based upon the omission or alleged omission
to state therein a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, including any losses, claims, damages or liabilities
arising out of or based upon the Company’s failure to perform its obligations under Section 5(a) of this Agreement, and will reimburse the Purchaser for any legal or other expenses reasonably incurred by the Purchaser in connection with
investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises
out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission from any of such documents in reliance upon and in conformity with written information furnished to the Company by the Purchaser specifically
for use therein, it being understood and agreed that the only such information consists of the information described as such in subsection (b) below. 
  
 (b) The Purchaser will indemnify and hold harmless the Company, its directors and officers and each person, if any, who controls the
Company within the meaning of Section 15 of the Securities Act, against any losses, claims, damages or liabilities to which the Company may become subject, under the Securities Act or the Exchange Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Offering Document, or any amendment or supplement thereto, or any related
preliminary offering circular, or arise out of or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with
written information furnished to the Company by the Purchaser specifically for use therein, and will reimburse any legal or other expenses reasonably incurred by the Company in connection with investigating or defending any such loss, claim, damage,
liability or action as such expenses are incurred, it being understood and agreed that the only such information furnished by the Purchaser consists of the following information in the Offering Document: under the caption “Plan of
Distribution”: (a) paragraph 3; (b) the third and fourth sentences of the paragraph 8; and (c) paragraph 9; provided, however, that the Purchaser shall not be liable for any losses, claims, damages or liabilities arising out of or based upon
the Company’s failure to perform its obligations under Section 5(a) of this Agreement. 
  

 18 

 (c) Promptly after receipt by an indemnified party under this Section of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under subsection (a) or (b) above, notify the indemnifying party of the commencement thereof; but the failure to
notify the indemnifying party shall not relieve it from any liability that it may have under subsection (a) or (b) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such
failure; and provided further that the failure to notify the indemnifying party shall not relieve it from any liability that it may have to an indemnified party otherwise than under subsection (a) or (b) above. In case any such action is brought
against any indemnified party and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying
party to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party
in connection with the defense thereof other than reasonable costs of investigation. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action in respect of
which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party unless such settlement includes (i) an unconditional release of such indemnified party from all liability on any
claims that are the subject matter of such action and (ii) does not include a statement as to or an admission of fault, culpability or failure to act by or on behalf of any indemnified party. 
  
 (d) If the indemnification provided for in this Section is
unavailable or insufficient to hold harmless an indemnified party under subsection (a) or (b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses, claims, damages or
liabilities referred to in subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Purchaser on the other from the offering of the Offered Securities or
(ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the
one hand and the Purchaser on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities as well as any other relevant equitable considerations. The relative benefits received by the
Company on the one hand and the Purchaser on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total discounts and commissions received
by the Purchaser from the Company under 

  

 19 

 
this Agreement. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Purchaser and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue
statement or omission. The amount paid by an indemnified party as a result of the losses, claims, damages or liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending any action or claim which is the subject of this subsection (d). Notwithstanding the provisions of this subsection (d), the Purchaser shall not be required to
contribute any amount in excess of the amount by which the total price at which the Offered Securities purchased by it were resold exceeds the amount of any damages which the Purchaser has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. 
  
 (e) The obligations of the Company under this Section shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each person, if any, who
controls the Purchaser within the meaning of the Securities Act or the Exchange Act; and the obligations of the Purchaser under this Section shall be in addition to any liability which the Purchaser may otherwise have and shall extend, upon the same
terms and conditions, to each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act. 
  
 8. Survival of Certain Representations and Obligations. The respective indemnities, agreements, representations, warranties and other statements of
the Company or its officers and of the Purchaser set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation, or statement as to the results thereof, made by or on behalf of the Purchaser,
the Company or any of their respective representatives, officers or directors or any controlling person, and will survive delivery of and payment for the Offered Securities. If for any reason the purchase of the Offered Securities by the Purchaser
is not consummated, the Company shall remain responsible for the expenses to be paid or reimbursed by it pursuant to Section 5 and the respective obligations of the Company and the Purchaser pursuant to Section 7 shall remain in effect and if any
Offered Securities have been purchased hereunder the representations and warranties in Section 2 and all obligations under Section 5 shall also remain in effect. If the purchase of the Offered Securities by the Purchaser is not consummated for any
reason other than solely because of the occurrence of any event specified in clause (iii), (iv), (v), (vi) or (vii) of Section 6(b), the Company will reimburse the Purchaser for all out-of-pocket expenses (including fees and disbursements of
counsel) reasonably incurred by it in connection with the offering of the Offered Securities. 
  

 20 

 9. Notices. All communications hereunder will be in writing and, if sent to the Purchaser will be
mailed, delivered or telegraphed and confirmed to the Purchaser at Eleven Madison Avenue, New York, N.Y. 10010-3629, Attention: Transactions Advisory Group, or, if sent to the Company, will be mailed, delivered or telegraphed and confirmed to it at
Foster Plaza 7, 661 Anderson Drive, Pittsburgh, PA 15220, Attention: Charles B. Fromm, Vice President, General Counsel and Secretary. 
  
 10. Successors. This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and the
controlling persons referred to in Section 7, and no other person will have any right or obligation hereunder, except that holders of Offered Securities shall be entitled to enforce the agreements for their benefit contained in the second and third
sentences of Section 5(b) hereof against the Company as if such holders were parties thereto. 
  
 11. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same Agreement.

  
 12. Applicable Law. This Agreement
shall be governed by, and construed in accordance with, the laws of the State of New York without regard to principles of conflicts of laws. 
  
 The Company hereby submits to the non-exclusive jurisdiction of the Federal and state courts in the Borough of Manhattan in The City of New York in any
suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. 
  

 21 

 If the foregoing is in accordance with the Purchaser’s understanding of our agreement, kindly sign
and return to us one of the counterparts hereof, whereupon it will become a binding agreement between the Company and the Purchaser in accordance with its terms. 
  

	 Very truly yours,
  
 Cable Design Technologies Corporation

		
	By	 	 
	 	

	 	 	 

  
 The foregoing Purchase Agreement

       is hereby confirmed and accepted 
       as of the date first above written. 
  

	CREDIT SUISSE FIRST BOSTON LLC
			
	 	 	By	 	

  
  

 22 

 SCHEDULE 2(c) 
  
 The securities of the Company’s subsidiaries are pledged pursuant to the (i) Credit Agreement dated December 17, 2001, among the
Company, Fleet National Bank, Fleet National Bank, London Branch, Fleet Bank Europe Limited, and other lenders party thereto; and (ii) Credit Agreement dated December 17, 2001, among Nordx/CDT, Inc., the Company and BNP Paribas (Canada). 

 SCHEDULE 6(g) 
  
 FORM OF LOCKUP 
  
                 , 2003 
  
 Cable Design Technologies Corporation 
 Foster Plaza 7 
 661 Anderson Drive 
 Pittsburgh, PA 15220 
  
 Credit Suisse First Boston LLC 
 Eleven Madison Avenue 
 New York, NY 10010-3629 
  
 Dear Sirs: 

 
 As an inducement to the Purchaser to execute the Purchase Agreement,
pursuant to which an offering will be made that is intended to result in an orderly market for 4.00 % Convertible Subordinated Debentures due July 15, 2023 (the “Offered Securities”) of Cable Design Technologies Corporation, and any
successor (by merger or otherwise) thereto, (the “Company”), the undersigned hereby agrees that from the date hereof and until 90 days after the offering date set forth on the final offering circular used to sell the Offered
Securities (the “Offering Date”) pursuant to the Purchase Agreement, to which you are or expect to become parties, the undersigned will not offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, any
shares of the common stock, par value $0.01 per share, of the Company (the “Securities”) or securities convertible into or exchangeable or exercisable for any shares of Securities, enter into a transaction which would have the same
effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of the Securities, whether any such aforementioned transaction is to be settled by delivery of the
Securities or such other securities, in cash or otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition, or to enter into any such transaction, swap, hedge or other arrangement, without, in each case, the
prior written consent of Credit Suisse First Boston LLC. In addition, the undersigned agrees that, without the prior written consent of Credit Suisse First Boston LLC, it will not, during the period commencing on the date hereof and ending 90 days
after the Offering Date, make any demand for or exercise any right with respect to, the registration of any Securities or any security convertible into or exercisable or exchangeable for the Securities. 
  
 Any Securities received upon exercise of options granted to the undersigned
will also be subject to this Agreement. Any Securities acquired by the undersigned in the open market will not be subject to this Agreement. A transfer of Securities to a family member or trust may be made, provided the transferee agrees to be bound
in writing by the terms of this Agreement. 
  
 In furtherance of
the foregoing, the Company and its transfer agent and registrar are hereby authorized to decline to make any transfer of shares of Securities if such transfer would constitute a violation or breach of this Agreement 
  
 This Agreement shall be binding on the undersigned and the successors, heirs,
personal representatives and assigns of the undersigned. This Agreement shall lapse and become null and void if the Offering Date shall not have occurred on or before July 31, 2003. 
  
 Very truly yours, 
  

 24Untitled Document

 Exhibit
  10.1  

AMENDED
  AND RESTATED

  EMPLOYMENT AGREEMENT

  

     THIS
  AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is entered
  into as of the 25th day of September, 2003 by and between MFA MORTGAGE INVESTMENTS,
  INC., a Maryland corporation (“MFA”), and STEWART ZIMMERMAN, an individual
  residing at 3063 Wynsum Avenue, Merrick, New York 11566 (the “Executive”).

W I T N
  E S S E T H :  

     WHEREAS,
  MFA and the Executive entered into an employment agreement, effective as of
  August 1, 2002 (the “Employment Agreement”); 

     WHEREAS,
  MFA and the Executive desire to extend the period of employment set forth in
  the Employment Agreement to July 31, 2006 on the same terms and conditions as
  are otherwise set forth in the Employment Agreement; and 

     WHEREAS,
  the Executive wishes to continue serving MFA and MFA wishes to secure the continued
  exclusive services of the Executive under the terms and conditions described
  below. 

     NOW
  THEREFORE, in consideration of the foregoing premises and the mutual agreements
  herein contained, the parties hereto agree to amend
  and restate the Employment Agreement in its entirety to read as follows: 

   1.
  Term of Employment.

      (a)
  MFA hereby employs the Executive, and the Executive hereby accepts employment
  with MFA, in the positions and with the duties and responsibilities as set forth
  in Paragraph 2 below for the Term of Employment, subject to the terms and
  conditions of this Agreement. 

     (b)
  The Term of Employment under this Agreement shall include the Initial Term and
  each Renewal Term. The Initial Term commenced as
  of August 1, 2002 and shall continue until July 31, 2006. The Term of Employment
  shall automatically renew for a one-year period (each such renewal, a “Renewal
  Term”) at the end of the Initial Term and each Renewal Term, unless either
  party shall give notice to the other not less than six months prior to the end
  of the Initial Term or any Renewal Term, as the case may be, of his or its intent
  not to renew such Initial Term or Renewal Term, as the case may be. 

1

  

 

   2. Position;
  Duties and Responsibilities.

      (a)
  During the Term of Employment, the Executive shall be employed as President
  and Chief Executive Officer of MFA, reporting directly
  to the Board of Directors of MFA (the “Board of Directors”), with
  such duties and day-to-day management responsibilities as are customarily performed
  by persons holding such offices at similarly situated mortgage REITs and such
  other duties as may be mutually agreed upon between the Executive and the Board
  of Directors. 

     (b)
  During the Term of Employment, the Executive shall, without additional compensation,
  also (i) serve on the board of directors of,
  serve as an officer of, and/or perform such executive and consulting services
  for, or on behalf of, such subsidiaries or affiliates of MFA as the Board of
  Directors may, from time to time, request. MFA and such subsidiaries and affiliates
  are hereinafter referred to, collectively, as the “Company.” For purposes
  of this Agreement, the term “affiliate” shall have the meaning ascribed
  thereto in Rule 12b-2 under the Securities Exchange Act of 1934, as amended
  (the “Act”). 

     (c)
  During the Term of Employment, the Executive shall serve MFA faithfully, diligently
  and to the best of his ability and shall devote
  substantially all of his time and efforts to his employment and the performance
  of his duties under this Agreement. Nothing herein shall preclude the Executive
  from engaging in charitable and community affairs and managing his personal
  financial and legal affairs, so long as such activities do not materially interfere
  with his carrying out his duties and responsibilities under this Agreement.

   3. Compensation.

     
  (a) Base Salary. During the Term of Employment, the Executive shall be
  entitled to receive an annualized base salary (the “Base Salary”)
  equal to the product of .25% times MFA’s Tangible Net Worth; provided,
  that the maximum aggregate amount of Base Salary payable to the Executive in
  any 12-month period from August 1st of one year through July 31st of the next
  year shall not exceed $1,000,000. The Base Salary shall be calculated semi-annually
  on June 30 and December 31 of each year (each, a “Calculation Period”)
  and shall be paid during the subsequent six-month period commencing August 1
  and February 1, respectively (each, a “Payment Period”), in accordance
  with MFA’s normal payroll practices. For example, if the Base Salary determined
  as of June 30, 2002 is $860,000, approximately one-twelfth of that amount will
  be paid to the Executive each month during the Payment Period commencing on
  August 1, 2002 and ending on January 31, 2003, and payments of the Base Salary
  for the Payment Period commencing on February 1, 2003 and ending on July 31,
  2003 will be based on the calculation of Tangible Net Worth as of December 31,
  2002. If MFA’s annualized Return on Equity for any Calculation Period shall
  be less than 10%, then the Base Salary for the next following Payment Period
  shall be reduced (i) to the product of .2375% times MFA’s Tangible Net
  Worth if the annualized Return on Equity is less than 10% but equal to or greater
  than 5%, and (ii) to the product of .225% times MFA’s Tangible Net Worth
  if the annualized Return on Equity is less than 5%. An illustration of the method
  of calculating the Base Salary and Return on Equity is provided in Schedule
  I hereto. 

     
  (b) Performance Bonus. The Executive shall be eligible to receive an
  annual performance bonus in such amount, in such manner and at
  such time as shall be determined by the Compensation Committee of the Board
  of Directors or the Board of Directors, as the case may be. 

     
  (c) Long-Term Incentive Program. The Executive shall be eligible to receive
  such stock option, restricted stock or dividend equivalent
  rights grants as the Compensation Committee of the Board of Directors or the
  Board of Directors, as the case may be, shall deem appropriate. 

     
  (d) Annual Review. The Compensation Committee of the Board of Directors
  or the Board of Directors, as the case may be, shall, at least annually, review
  the Executive's entire compensation package to determine whether it continues
  to meet MFA's compensation objectives. 

2

  

 

   4.
  Employee Benefit Programs and Fringe Benefits. 

     During
  the Term of Employment, the Executive shall be entitled to five weeks of vacation
  each calendar year and to participate in all executive incentive and employee
  benefit programs of MFA now or hereafter made available to MFA’s senior
  executives or salaried employees generally, as such programs may be in effect
  from time to time. MFA shall reimburse the Executive for any and all necessary,
  customary and usual business expenses, properly receipted in accordance with
  MFA’s policies, incurred by Executive in connection with his employment.

   5. Termination
  of Employment.

      (a)
  Termination Due to Death or Disability. If the Executive's employment
  is terminated during the Term of Employment by reason of
  the Executive’s death or Disability, the Executive’s Term of Employment
  shall terminate automatically without further obligations to the Executive,
  his legal representative or his estate, as the case may be, under this Agreement
  except for (i) any compensation earned but not yet paid, including and without
  limitation, any amount of Base Salary accrued or earned but unpaid and any other
  payments payable to the Executive pursuant to Paragraph 5(e) below, which amounts
  shall be promptly paid in a lump sum to the Executive, his legal representative
  or his estate, as the case may be, and (ii) continued payment on a monthly basis
  of the Executive’s then current Base Salary, as calculated pursuant to
  Paragraph 3(a) above, for a period of two years following the date of such termination,
  which shall be paid to the Executive, his legal representative or his estate,
  as the case may be. In the event of such termination due to his Disability,
  Executive’s health insurance coverage shall be continued at MFA’s
  expense for the duration of such Disability; provided, that, if such coverage
  cannot be provided under MFA’s health insurance policy for the duration
  of such Disability, such coverage or the cost of comparable coverage shall be
  provided by MFA until the Executive’s attainment of age 65 or such later
  date through which coverage is permissible under MFA’s health insurance
  policy. 

     (b)
  Termination Without Cause or for Good Reason. In the event the Executive's
  employment is terminated by MFA without Cause (including by notice of MFA’s
  determination not to renew the Initial Term or any Renewal Term pursuant to
  Paragraph 1(b)) or by the Executive for Good Reason, unless any such termination
  is preceded by the Executive’s giving notice of his determination not to
  renew the Initial Term or any Renewal Term pursuant to Paragraph 1(b), the Executive
  shall be entitled to both continued payments of his then current Base Salary
  and continued health insurance coverage at MFA’s expense, until the later
  to occur of (i) the expiration of the Term of Employment, or (ii) the first
  anniversary of such termination of employment, such Base Salary being payable
  at the same time such amounts would have been payable to the Executive had his
  employment not terminated. 

     (c)
  Termination by MFA for Cause or Voluntary Termination by the Executive.
  In the event the Executive's employment is terminated by MFA for Cause, or is
  terminated by the Executive on his own initiative for other than a Good Reason
  (including pursuant to Paragraph 1(b)), the Executive shall be entitled to any
  compensation earned but not yet paid, including and without limitation, any
  amount of Base Salary accrued or earned but unpaid and any other payments payable
  to the Executive pursuant to Paragraph 5(e) below, as of the date of termination.

     (d)
  Termination Related to Change in Control. In the event of (1) the termination
  of the Executive's employment by MFA without Cause that occurs both within two
  months before and in anticipation of a Change in Control, (2) the resignation
  of his employment by the Executive for any reason within three months following
  a Change in Control, or (3) the termination of the Executive’s employment
  by MFA other than for Cause or the Employee’s resignation of his employment
  for Good Reason within twelve months following a Change in Control, 

	 	(i)	MFA shall pay to Executive
      in a lump sum, within 30 days following the termination of employment, an
      amount equal to 300% of the sum of (a) the Executive’s then current
      Base Salary and (b) the Executive’s bonus for the immediately preceding
      year;

	 	(ii)	all of the Executive’s
      outstanding stock options shall immediately vest in full and become exercisable
      for a period of 90 days from the date of termination but in no event beyond
      the date on which any such option would have expired had the Executive’s
      employment not terminated; and

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	 	(iii)	the Executive shall
      continue to participate in all health, life insurance, retirement and other
      benefit programs at MFA’s expense for the balance of the Term of Employment,
      to the same extent as though the Executive’s employment had not terminated.

The Executive,
  in his sole and absolute discretion, may elect to reduce any such payment in
  order to avoid imposition of the excise tax under Section 4999 of the Internal
  Revenue Code of 1986, as amended. 

     (e)
  Other Payments. Upon the termination of the Executive's employment, in
  addition to the amounts payable under any Paragraph above, the Executive shall
  be entitled to receive the following: 

	 	(i)	any annual bonus earned
      during one or more preceding years but not paid;

	 	(ii)	any vested deferred
      compensation (including any interest accrued on such deferred amounts);

	 	(iii)	reimbursement for
      reasonable business expenses incurred but not yet reimbursed by MFA; and

	 	(iv)	any other benefits
      to which the Executive or his legal representative may be entitled under
      applicable plans and programs of MFA, as provided in Paragraph 4 above.

     (f)
  No Mitigation; No Offset. In the event of any termination of the Executive's
  employment under this Agreement, he shall be under no obligation to seek other
  employment or otherwise in any way to mitigate the amount of any payment provided
  for in this Paragraph 5, and there shall be no offset against amounts due him
  under this Agreement on account of any remuneration attributable to any subsequent
  employment that he may obtain. 

   6. Definitions.
   

     For
  purposes of this Agreement, the following terms shall be defined as set forth
  below: 

     (a)
  Cause. "Cause" shall mean the Executive's (i) conviction, or entry of
  a guilty plea or a plea of nolo contendre with respect to,
  a felony, a crime of moral turpitude or any crime committed against the Company,
  (ii) engagement in willful misconduct, willful or gross negligence, or fraud,
  embezzlement or misappropriation relating to significant amounts, in each case
  in connection with the performance of his duties under this Agreement; (iii)
  failure to adhere to the lawful directions of the Board of Directors that are
  reasonably consistent with his duties and position provided for herein; (iv)
  breach in any material respect of any of the provisions of Paragraph 7 of this
  Agreement resulting in material and demonstrable economic injury to MFA; (v)
  chronic or persistent substance abuse that materially and adversely affects
  his performance of his duties under this Agreement; or (vi) breach in any material
  respect of the terms and provisions of this Agreement resulting in material
  and demonstrable economic injury to MFA. Notwithstanding the foregoing, (i)
  the Executive shall be given written notice of any action or failure to act
  that is alleged to constitute Cause (a “Default”), and an opportunity
  for 20 business days from the date of such notice in which to cure such Default,
  such period to be subject to extension in the discretion of the Board of Directors;
  and (ii) regardless of whether the Executive is able to cure any Default, the
  Executive shall not be deemed to have been terminated for Cause without (x)
  reasonable prior written notice to the Executive setting forth the reasons for
  the decision to terminate the Executive for Cause, (y) an opportunity for the
  Executive, together with his counsel, to be heard by the Board of Directors,
  and (z) delivery to the Executive of a notice of termination approved by said
  Board of Directors stating its good faith opinion that the Executive has engaged
  in actions or conduct described in the preceding sentence, which notice specifies
  the particulars of such action or conduct in reasonable detail; provided, however,
  MFA may suspend the Executive with pay until such time as his right to appear
  before the Board of Directors has been exercised, so long as such appearance
  is within two (2) weeks of the date of suspension. 

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     (b)
  Change in Control. A "Change in Control" shall mean the occurrence of
  any one of the following events: 

	 	(i)	any “person,”
      as such term is used in Sections 13(d) and 14(d) of the Act (other than
      MFA, any of its affiliates or any trustee, fiduciary or other person or
      entity holding securities under any employee benefit plan or trust of MFA
      or any of its affiliates) together with all affiliates and “associates”
      (as such term is defined in Rule 12b-2 under the Act) of such person, shall
      become the “beneficial owner” (as such term is defined in Rule
      13d-3 under the Act), directly or indirectly, of securities of MFA representing
      30% or more of either (A) the combined voting power of MFA’s then outstanding
      securities having the right to vote in an election of the Board of Directors
      (“voting securities”) or (B) the then outstanding shares of common
      stock of MFA (“Shares”) (in either such case other than as a result
      of an acquisition of securities directly from MFA); or

	 	(ii)	persons who, as of
      the effective date of MFA’s Second Amended and Restated 1997 Stock
      Option Plan, constitute MFA’s Board of Directors (the “Incumbent
      Directors”) cease for any reason, including, without limitation, as
      a result of a tender offer, proxy contest, merger or similar transaction,
      to constitute at least a majority of the Board of Directors, provided that
      any person becoming a Director of MFA subsequent to the effective date whose
      election or nomination for election was approved by a vote of at least a
      majority of the Incumbent Directors shall, for purposes of the Plan, be
      considered an Incumbent Director; or

	 	(iii)	there shall occur
      (A) any consolidation or merger of MFA or any subsidiary where the shareholders
      of MFA, immediately prior to the consolidation or merger, would not, immediately
      after the consolidation or merger, beneficially own (as such term is defined
      in Rule 13d-3 under the Act), directly or indirectly, shares representing
      in the aggregate 50% or more of the voting securities of the corporation
      issuing cash or securities in the consolidation or merger (or of its ultimate
      parent corporation, if any), (B) any sale, lease, exchange or other transfer
      (in one transaction or a series of transactions contemplated or arranged
      by any party as a single plan) of all or substantially all of the assets
      of MFA or (C) any plan or proposal for the liquidation or dissolution of
      MFA.

	 	 	Notwithstanding the
      foregoing, a “Change in Control” shall not be deemed to have occurred
      for purposes of the foregoing clause (i) solely as the result of an acquisition
      of securities by MFA which, by reducing the number of Shares or other voting
      securities outstanding, increases (x) the proportionate number of Shares
      beneficially owned by any person to 30% or more of the Shares then outstanding
      or (y) the proportionate voting power represented by the voting securities
      beneficially owned by any person to 30% or more of the combined voting power
      of all then outstanding voting securities; provided, however, that, if any
      person referred to in clause (x) or (y) of this sentence shall thereafter
      become the beneficial owner of any additional Shares or other voting securities
      (other than pursuant to a stock split, stock dividend, or similar transaction),
      then a “Change in Control” shall be deemed to have occurred for
      purposes of this Paragraph 6(b).

     (c)
  Disability. "Disability" shall mean the Executive's inability for a period
  of six consecutive months, to render substantially the
  services provided for in this Agreement by reason of mental or physical disability,
  whether resulting from illness, accident or otherwise, other than by reason
  of chronic or persistent abuse of any substance (such as narcotics or alcohol).

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     (d)
  Good Reason. "Good Reason" shall mean:  

	 	 (i)	a material diminution
      in the Executive's title, duties or responsibilities;

	 	(ii)	relocation of the
      Executive's place of employment without his consent outside the New York
      City metropolitan area;

	 	(iii)	the failure of MFA
      to pay within thirty (30) business days any payment due from MFA;

	 	(iv)	the failure of MFA
      to pay within a reasonable period after the date when amounts are required
      to be paid to the Executive under any benefit programs or plans; or

	 	(v)	the failure by MFA
      to honor any of its material obligations herein. 

     (e)
  Non Cash Items. "Non Cash Items" shall mean depreciation, non cash merger
  expenses, gains/losses on asset sales, and impairment charges. 

     (f)
  Return on Equity. "Return on Equity" shall mean six months GAAP net income
  plus (minus) certain Non Cash Items divided by average Tangible Net Worth, annualized.
  

     (g)
  Tangible Net Worth. "Tangible Net Worth" shall mean stockholder equity
  less goodwill. 

   7. Covenant
  Not To Compete.  

     The
  Executive will not, without the prior written consent of MFA, manage, operate,
  control or be connected as a stockholder (other than as a holder of shares publicly
  traded on a stock exchange or the NASDAQ National Market System, provided that
  the Executive shall not own more than five percent of the outstanding shares
  of any publicly traded company) or partner with, or as an officer, director,
  employee or consultant of, any mortgage REIT for a period of one year following
  termination of his employment with MFA. During such one-year period, the Executive
  shall not solicit any employees of the Company to work for any mortgage REIT.
  Except as otherwise required by law, the Executive shall keep confidential all
  materials, files, reports, correspondence, records and other documents (collectively
  the “Company Materials”) used, prepared or made available to him in
  connection with his employment by MFA and which have not otherwise been made
  available to the public, and upon termination of his employment shall return
  such Company Materials to MFA. The Executive acknowledges that MFA may seek
  injunctive relief or other specific enforcement of its rights under this Paragraph.

   8. Indemnification.
   

     MFA
  shall indemnify the Executive to the fullest extent permitted by Maryland law
  in effect as of the date hereof in connection with the Executive’s duties
  with the Company, against all costs, expenses, liabilities and losses (including,
  without limitation, attorneys’ fees, judgments, fines, penalties, ERISA
  excise taxes and amounts paid in settlement) actually and reasonably incurred
  by the Executive in connection with an action, suit or proceeding. 

   9. Assignability;
  Binding Nature.  

     This
  Agreement shall inure to the benefit of MFA and the Executive and their respective
  successors, heirs (in the case of the Executive) and assigns. No rights or obligations
  of MFA under this Agreement may be assigned or transferred by MFA except that
  any such rights or obligations may be assigned or transferred pursuant to a
  merger or consolidation in which MFA is not the continuing entity, or the sale
  or liquidation of all or substantially all of the assets of MFA, provided that
  the assignee or transferee is the successor to all or substantially all of the
  assets of MFA and such assignee or transferee assumes the liabilities, obligations
  and duties of MFA, as contained in this Agreement, either contractually or as
  a matter of law. This Agreement shall not be assignable by the Executive.

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   10. Representation.
   

     MFA
  represents and warrants that it is fully authorized and empowered to enter into
  this Agreement and that its entering into this Agreement and the performance
  of its obligations under this Agreement will not violate any agreement between
  MFA and any other person, firm or organization or any law or governmental regulation.

   11. Entire
  Agreement.  

     This
  Agreement contains the entire agreement between MFA and the Executive concerning
  the subject matter hereof and supersedes all prior agreements, understandings,
  discussions, negotiations and undertakings, whether written or oral, between
  them with respect thereto. 

   12. Amendment
  or Waiver. 

     This
  Agreement cannot be changed, modified or amended without the consent in writing
  of both the Executive and MFA. No waiver by either MFA or the Executive at any
  time of any breach by the other party of any condition or provision of this
  Agreement shall be deemed a waiver of a similar or dissimilar condition or provision
  at the same or at any prior or subsequent time. Any waiver must be in writing
  and signed by the Executive or an authorized officer of MFA, as the case may
  be. 

   13. Severability.
   

     In
  the event that any provision or portion of this Agreement shall be determined
  to be invalid or unenforceable for any reason, in whole or in part, the remaining
  provisions of this Agreement shall be unaffected thereby and shall remain in
  full force and effect to the fullest extent permitted by law. 

   14. Reasonableness.
   

     To
  the extent that any provision or portion of this Agreement is determined to
  be unenforceable by a court of law or equity, that provision or portion of this
  Agreement shall nevertheless be enforceable to the extent that such court determines
  is reasonable. 

   15. Survivorship.
       

     The
  respective rights and obligations of the parties hereunder shall survive any
  termination of this Agreement to the extent necessary to the intended preservation
  of such rights and obligations. 

   16. Governing
  Law.  

     This
  Agreement and all rights thereunder, and any controversies or disputes arising
  with respect thereto, shall be governed by and construed and interpreted in
  accordance with the laws of the State of New York, applicable to agreements
  made and to be performed entirely within such State, without regard to conflict
  of laws provisions thereof that would apply the law of any other jurisdiction.

   17. Notices.
   

     Any
  notice given to either party shall be in writing and shall be deemed to have
  been given when delivered personally or sent by certified or registered mail,
  postage prepaid, return receipt requested, duly addressed to the party concerned,
  if to MFA, at its principal office, and if to the Executive, at the address
  of the Executive shown on MFA’s records or at such other address as such
  party may give notice of. 

   18. Headings.
   

     The
  headings of the paragraphs contained in this Agreement are for convenience only
  and shall not be deemed to control or affect the meaning or construction of
  any provision of this Agreement. 

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   19. Counterparts.
   

     This
  Agreement may be executed in two or more counterparts.
   

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

	 	MFA Mortgage
      Investments, Inc.
	 	 	 	

      

      
	 	 	By:	/s/ W. David Scott
	 	 	 	Name: W. David Scott
	 	 	 	Title: Director/Chairman
      of the Compensation Committee
	 	 	 	
 
 
	 	 	 	/s/ Stewart Zimmerman
	 	 	 	      Stewart
      Zimmerman

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