Document:

Exhibit 10.5

 

EXECUTION COPY

 

AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”)
dated as of March 19, 2008 by and between Superior Essex Inc. (the “Company”)
and H. Patrick Jack (“Executive”).

 

The Company and Executive entered into that
certain Employment Agreement dated as of March 5, 2004, as amended and
restated on March 10, 2006 (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. Amended and Restated 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 President of Essex
Asia-Pacific.  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 $358,000 (effective as of April 1,
2008), 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 60% of the Base Salary, subject to
Executive’s achievement of such performance targets.

 

5.             Equity
Arrangements.  [Intentionally Omitted]

 

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. Amended and Restated Senior Executive
Retirement Plan (the “SERP”) effective April 1, 2008, or another plan
providing materially the same benefits as the SERP.  The accrual rate applicable to Executive
shall be reduced to 1.5% effective January 1, 2009.  In consideration of such reduction and other
changes reflected in the SERP, Executive shall be entitled to receive shares of
restricted stock described in Exhibit A on April 1, 2008.

 

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.  Subject to Section 12(h) hereof,
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).

 

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
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;

 

3

 

(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(h), (l), (n) and (o), Executive shall have no further rights
to any compensation or any other benefits under this Agreement.  Executive’s rights with respect to any equity
awards in the case of his termination by the Company for Cause or his
resignation without Good Reason shall be as provided in the applicable equity
award agreements and the plan under which such awards were granted.

 

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)                              an Annual Bonus
for the fiscal year in which Executive’s termination occurs, payable in a lump
sum payment, equal to the greater of (i) a pro-rata portion of Executive’s
target Annual Bonus for such year (determined by multiplying the target Annual
Bonus by a fraction, the numerator of which is the number of days during the
performance year that Executive is employed by the Company and the denominator
of which is 365), or (ii) such other amount as may be provided in the
Company’s annual bonus plan for the fiscal year in which Executive’s
termination occurs.

 

4

 

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(h), (l), (n) and
(o), Executive shall have no further rights to any compensation or any other
benefits under this Agreement.  Executive’s
rights with respect to any equity awards in the case of his termination of
employment due to death or Disability shall be as provided in the applicable
equity award agreements and the plan under which such awards were granted.

 

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 60% 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
President of Essex Asia-Pacific, (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 (but this clause (G) shall apply only if Executive would be less
than age 62 at the end of the Employment Term); 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 30 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)                             Other than as provided in Section 8(c)(iv) below, if Executive’s
employment is terminated by the Company without Cause (other than by reason of
death or Disability) or if Executive resigns for Good Reason, Executive shall
be entitled to receive:

 

(A)         the Accrued
Rights;

 

(B)         a lump sum
severance payment equal to one (the “Severance Factor”) 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)(iii) occurred;  provided that the amount
described in this clause (B) shall be in lieu of any other cash severance
payable to Executive under any other plans, programs or arrangements of the
Company or its affiliates (but excluding the SERP) up to the amount described in this clause (B);

 

5

 

(C)           subject to Executive’s
continued compliance with the provisions of Sections 9 and 10 of this Agreement
(other than a breach that is insubstantial and insignificant, taking into
account all of the circumstances), for a period of 12 months following the date
of such termination (the “Welfare Benefits Continuation Period”), 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 the Welfare Benefits
Continuation 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 (i) 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, (ii) during
the Welfare Benefits Continuation Period, the benefits provided in any one
calendar year shall not affect the amount of benefits to be provided in any
other calendar year, and (iii) the reimbursement of an eligible expense
must be made no later than December 31 of the year after the year in which
the expense was incurred.  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.  To the extent any benefits described in this Section 8(c)(iii)(C) cannot
be provided under the Company’s welfare plans, the Company shall pay to
Executive a lump sum amount equal to the amount that such coverage would have
cost the Company for the remainder of the Welfare Benefits Continuation
Period.  Executive’s rights pursuant to
this Section 8(c)(iii)(C) shall not be subject to liquidation or
exchange for another benefit; and

 

(D)           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, 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 

 

6

 

Inc. Amended and Restated 2005 Incentive Plan) and ending two years
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
(C), except that the Welfare Benefits
Continuation Period as defined in Section 8(c)(iii)(C) shall
be 24 months, and the Severance Factor for purposes of Section 8(c)(iii)(B) shall
be two (2).

 

(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(h), (l), (n) and (o), Executive shall have no further rights
to any compensation or any other benefits under this Agreement.  Except as set forth herein, Executive’s
rights with respect to any equity awards in the case of his termination by the
Company without Cause or his resignation for Good Reason shall be as provided
in the applicable equity award agreements and the plan under which such awards
were granted.

 

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. Amended and
Restated 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 (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. 
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 

 

7

 

thereafter be terminated at will by either Executive
or the Company (or affiliate); provided that the provisions of Sections
9, 10, 11 and 12(n) of this Agreement shall survive any termination of
this Agreement or Executive’s termination of employment hereunder; and provided
further that if Executive shall have given notice of intent to resign for
Good Reason pursuant to clause 8(c)(ii)(G) as a result of the Company’s
election not to extend the Employment Term, the provisions of Section 8(c) and
Sections 12(h), (l) and (o) shall continue to apply with respect to
such resignation.

 

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(i) 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.

 

i.              Recoupment Policy.  Executive acknowledges and agrees that any
incentive compensation he receives from the Company, pursuant to an incentive
program of the Company becoming effective on or after January 1, 2008,
will be subject to recoupment pursuant to the terms of that certain Incentive
Compensation Recoupment Policy adopted by the Compensation
Committee of the Board on March 6, 2008, or any replacement policy or
policies adopted by the Board or
the Compensation Committee setting forth standards for seeking the
return (recoupment) from executive officers of incentive payments if such
payments were inflated due to financial results that are later restated; provided that
any such replacement policy that would have a material adverse affect on
Executive shall only be effective prospectively.

 

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:

 

8

 

(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.

 

(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:

 

9

 

(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”) 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 

 

10

 

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.

 

(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 

 

11

 

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.

 

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; 

 

12

 

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.             Code
Section 409A.  Notwithstanding anything in this Agreement to
the contrary, if any amount or benefit that would constitute non-exempt “deferred
compensation” for purposes of Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”) would otherwise be payable or distributable under
this Agreement by reason of Executive’s separation from service during a period
in which he is a Specified Employee (as defined below), then, subject to any
permissible acceleration of payment by the Company under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic
relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment
of employment taxes):

 

(i)            if
the payment or distribution is payable in a lump sum, Executive’s right to
receive payment or distribution of such non-exempt deferred compensation will
be delayed until the earlier of Executive’s death or the first day of the
seventh month following Executive’s separation from service; and

 

(ii)           if
the payment or distribution is payable over time, the amount of such non-exempt
deferred compensation that would otherwise be payable during the six-month
period immediately following Executive’s separation from service will be
accumulated and Executive’s right to receive payment or distribution of such
accumulated amount will be delayed until the earlier of Executive’s death or the
first day of the seventh month following Executive’s separation from service,
whereupon the accumulated amount will be paid or distributed to Executive and
the normal payment or distribution schedule for any remaining payments or
distributions will resume.

 

13

 

For purposes of this Agreement, the term “Specified
Employee” has the meaning given such term in Code Section 409A and the
final regulations thereunder (“Final 409A Regulations”), provided,
however, that, as permitted in the Final 409A Regulations, the
Company’s Specified Employees and its application of the six-month delay rule of
Code Section 409A(a)(2)(B)(i) shall be determined in accordance with rules adopted
by the Board of Directors or a committee thereof, which shall be applied
consistently with respect to all nonqualified deferred compensation
arrangements of the Company, including this Agreement.

 

i.              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: 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.

 

j.              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.

 

k.             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).

 

l.              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(l) at the request of
the Company and, following Executive’s 

 

14

 

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(l) 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(n) of
this Agreement.  If Executive is entitled to be
paid or reimbursed for any expenses under this Section 12(l), the amount
reimbursable in any one calendar year shall not affect the amount reimbursable
in any other calendar year, and the reimbursement of an eligible expense must
be made no later than December 31 of the year after the year in which the
expense was incurred.  Executive’s rights
to payment or reimbursement of expenses pursuant to this Section 12(l) shall
expire at the end of 15 years after the date of termination of Executive’s
employment and shall not be subject to liquidation or exchange for another
benefit.

 

m.            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.

 

n.             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.

 

o.             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.  If Executive is awarded the
right to recover attorneys’ fees or other
costs and expenses hereunder, the reimbursement of an eligible expense
must be made no later than March 15 of the year after the year in which
the prevailing party’s rights are established. 
Executive’s rights pursuant to this Section 12(o) shall expire
at the end of 15 years after the date of termination of Executive’s employment
and shall not be subject to liquidation or exchange for another benefit.

 

15

 

p.             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.

 

q.             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/ H. Patrick Jack

  
	
  By:

  	
  Stephen M. Carter

  	
   

  	
   

  	
  H. Patrick Jack

  
	
   

  	
  Chief Executive Officer

  	
   

  	
   

  	
   

  

 

17

 

EXHIBIT
A

 

SPECIAL RESTRICTED STOCK GRANT

 

1.     On April 1, 2008, the Company shall
grant Executive shares of Company restricted common stock (the “Restricted
Shares”), granted pursuant to, and subject to, the terms and conditions of the
Superior Essex Inc. Amended and Restated 2005 Incentive Plan (the “2005 Plan”).

 

2.     The Restricted Shares shall have a Fair
Market Value (as defined in the 2005 Plan) of $119,000, as of the close of
business on April 1, 2008, rounded to the nearest whole share.

 

3.     The Restricted Shares will vest and
become non-forfeitable on the earliest to occur of the following:

 

a.     25% on January 1, 2009
and on each anniversary thereof through January 1, 2012, or

 

b.     as to all of the Restricted
Shares, the occurrence of a Change in Control, or

 

c.     as to all of the Restricted
Shares, termination of Executive’s employment due to death or Disability, or

 

d.     As to all of the Restricted
Shares, termination of Executive’s employment without Cause or by the Executive
with Good Reason, or

 

e.     If Executive resigns for any
other reason after January 1, 2009, a portion of the Restricted Shares
vest, determined by (i) multiplying the number of Restricted Shares
unvested as of January 2, 2009, by a fraction, the numerator of which is
the number of months elapsed since January 1, 2009, and the denominator of
which is 36, and (ii) subtracting the number of shares otherwise vested
between January 2, 2009 and the date of termination.

 

 

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 agrees to pay for or
reimburse Executive for the expenses and costs of relocation in accordance with
the letter from the Chief Executive Officer governing such matter, except if
Executive’s employment is terminated for Cause.

 

 

EXHIBIT C

 

RELEASE

 

In exchange for a portion of the benefits
described in the attached Amended and Restated Employment Agreement dated as of
March 19, 2008 (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

  	
   

  	
   

  	
  H. Patrick Jack

  
				

 

2Exhibit 10.6

 

EXECUTION COPY

 

AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

 

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”)
dated as of March 19, 2008 by and between Superior Essex Inc. (the “Company”)
and J. David Reed (“Executive”).

 

The Company and Executive entered into that
certain Employment Agreement dated as of August 13, 2007 (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 August 13, 2007 and
ending on December 31, 2008 (the “Employment Term”) on the terms and
subject to the conditions set forth in this Agreement; provided, however,
that commencing with December 31, 2008 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
President of Essex Group North America. 
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 $323,000 (effective as of April 1,
2008), 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.             Bonus.

 

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 60% of the Base Salary, subject to
Executive’s achievement of such performance targets.

 

5.             Equity
Arrangements.  [Intentionally omitted.]

 

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, (i) any long-term incentive program generally
applicable to the Company’s senior executive officers, and (ii) the
Superior Essex Inc. Amended and Restated Senior Executive Retirement Plan (the “SERP”)
or another plan providing materially the same benefits as the SERP effective April 1,
2008.  The accrual rate applicable to
Executive shall be reduced to 1.5% effective January 1, 2009.  In consideration of such reduction and other
changes reflected in the SERP, Executive shall be entitled to receive shares of
restricted stock described in Exhibit A on April 1, 2008.

 

2

 

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 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.  Subject to Section 12(h) hereof,
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).

 

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 

 

3

 

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 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(h), (l), (n) and
(o), Executive shall
have no further rights to any compensation or any other benefits under this
Agreement.  Executive’s rights with respect
to any equity awards in the case of his termination by the Company for Cause or
his resignation without Good Reason shall be as provided in the applicable
equity award agreements and the plan under which such awards were granted.

 

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.

 

4

 

(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)           an Annual Bonus for the fiscal year in which
Executive’s termination occurs, payable in a lump sum payment, equal to the
greater of (i) a pro-rata portion of Executive’s target Annual Bonus for
such year (determined by multiplying the target Annual Bonus by a fraction, the
numerator of which is the number of days during the performance year that
Executive is employed by the Company and the denominator of which is 365), or (ii) such
other amount as may be provided in the Company’s annual bonus plan for the
fiscal year in which Executive’s termination occurs;.

 

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(h), (l), (n) and (o), Executive shall have no further rights to any
compensation or any other benefits under this Agreement.  Executive’s rights with respect to any equity
awards in the case of his termination of employment due to death or Disability
shall be as provided in the applicable equity award agreements and the plan
under which such awards were granted.

 

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 60% 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 President of Essex
Group North America, (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, other than a
relocation to the Company’s headquarters in the Greater Atlanta 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 (but this clause (G) shall apply only
if Executive would be less than age 62 at the end of the Employment Term);
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 30 days 

 

5

 

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

 

(A)          the Accrued Rights;

 

(B)           a lump sum severance payment
equal to one (the “Severance Factor”) 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)(iii) occurred;
provided that the amount described in this clause (B) shall be in
lieu of any other cash severance payable to Executive under any other plans,
programs or arrangements of the Company or its affiliates (but excluding the SERP) up to the amount
described in this clause (B);

 

(C)           subject to Executive’s
continued compliance with the provisions of Sections 9 and 10 of this Agreement
(other than a breach that is insubstantial and insignificant, taking into
account all of the circumstances), for a period of 12 months following the date
of such termination (the “Welfare Benefits Continuation Period”), 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 (i) 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, (ii) during the Welfare
Benefits Continuation Period, the benefits provided in any one calendar year
shall not affect the amount of benefits to be provided in any other calendar
year, and (iii) the reimbursement of an eligible expense must be made no
later than December 31 of the year after the year in which the expense was
incurred.  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. 
To the extent any benefits described in this Section 8(c)(iii)(C) cannot
be provided under the Company’s welfare plans, the Company shall pay to
Executive a lump sum amount equal to the amount that such coverage 

 

6

 

would have cost the Company
for the remainder of the Welfare Benefits Continuation Period.  Executive’s rights pursuant to this Section 8(c)(iii)(C) shall
not be subject to liquidation or exchange for another benefit; and

 

(D)          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, 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 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. Amended and Restated 2005 Incentive Plan) and ending two
years 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
(C), except that the Welfare Benefits
Continuation Period as defined in Section 8(c)(iii)(C) shall
be 24 months, and the Severance Factor for purposes of Section 8(c)(iii)(B) shall
be equal to two (2).

 

(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(h), (l), (n) and
(o), Executive shall have no further rights to any compensation or any other
benefits under this Agreement.  Except as
set forth herein, Executive’s rights with respect to any equity awards in the
case of his termination by the Company without Cause or his resignation for
Good Reason shall be as provided in the applicable equity award agreements and
the plan under which such awards were granted.

 

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. Amended and Restated 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 (B) all
time-based or performance-based vesting restrictions on 

 

7

 

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.  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(n) of this Agreement
shall survive any termination of this Agreement or Executive’s termination of
employment hereunder; and provided further that if Executive shall have
given notice of intent to resign for Good Reason pursuant to clause 8(c)(ii)(G) as
a result of the Company’s election not to extend the Employment Term, the
provisions of Section 8(c) and Sections 12(h), (l) and (o) shall
continue to apply with respect to such resignation.

 

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(i) 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

 

8

 

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.

 

i.              Recoupment
Policy.  Executive acknowledges and
agrees that any incentive compensation he receives from the Company, pursuant
to an incentive program of the Company becoming effective on or after January 1,
2008, will be subject to recoupment pursuant to the terms of that certain Incentive
Compensation Recoupment Policy adopted by the Compensation
Committee of the Board on March 6, 2008, or any replacement policy or
policies adopted by the Board or the Compensation Committee setting forth
standards for seeking the return (recoupment) from executive officers of
incentive payments if such payments were inflated due to financial results that
are later restated; provided that any such replacement policy that
would have a material adverse affect on Executive shall only be effective
prospectively.

 

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 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

 

9

 

(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.

 

(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.

 

10

 

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”) 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 

 

11

 

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.

 

(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.

 

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 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 

 

13

 

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.             Code
Section 409A.  Notwithstanding anything in this Agreement to
the contrary, if any amount or benefit that would constitute non-exempt
“deferred compensation” for purposes of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”) would otherwise be payable or
distributable under this Agreement by reason of Executive’s separation from
service during a period in which he is a Specified Employee (as defined below),
then subject to any permissible acceleration of payment by the Company under
Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order),
(j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of
employment taxes):

 

(i)            if
the payment or distribution is payable in a lump sum, Executive’s right to
receive payment or distribution of such non-exempt deferred compensation will
be delayed until the earlier of Executive’s death or the first day of the seventh
month following Executive’s separation from service; and

 

(ii)           if
the payment or distribution is payable over time, the amount of such non-exempt
deferred compensation that would otherwise be payable during the six-month
period immediately following Executive’s separation from service will be
accumulated and Executive’s right to receive payment or distribution of such
accumulated amount will be delayed until the earlier of Executive’s death or
the first day of the seventh month following Executive’s separation from
service, whereupon the accumulated amount will be paid or distributed to
Executive and the normal payment or distribution schedule for any remaining
payments or distributions will resume.

 

14

 

For purposes of this Agreement, the term “Specified
Employee” has the meaning given such term in Code Section 409A and the
final regulations thereunder (“Final 409A Regulations”), provided,
however, that, as permitted in the Final 409A Regulations, the Company’s
Specified Employees and its application of the six-month delay rule of
Code Section 409A(a)(2)(B)(i) shall be determined in accordance with rules adopted
by the Board of Directors or a committee thereof, which shall be applied
consistently with respect to all nonqualified deferred compensation
arrangements of the Company, including this Agreement.

 

i.              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: Chief Executive Officer

 

If to
Executive:

 

To the most recent
address of Executive set forth in the personnel records of the Company, with a
copy sent to:

 

James B. Dietz, Esq.

Friedman &
Rummell Co., L.P.A.

100 Federal Plaza East

City Centre One, Suite 300

Youngstown, Ohio 44503

(330) 744-4137 (telephone)

(330) 744-9962 (facsimile)

 

j.              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.

 

k.             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 

 

15

 

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).

 

l.              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(l) 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(l) 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(n) of
this Agreement.   If Executive is
entitled to be paid or reimbursed for any expenses under this Section 12(l),
the amount reimbursable in any one calendar year shall not affect the amount
reimbursable in any other calendar year, and the reimbursement of an eligible
expense must be made no later than December 31 of the year after the year
in which the expense was incurred. 
Executive’s rights to payment or reimbursement of expenses pursuant to
this Section 12(l) shall expire at the end of 15 years after the date
of termination of Executive’s employment and shall not be subject to
liquidation or exchange for another benefit.

 

m.            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.

 

n.             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, 

 

16

 

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.

 

o.             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.  If Executive is awarded the
right to recover attorneys’ fees or other
costs and expenses hereunder, the reimbursement of an eligible expense
must be made no later than March 15 of the year after the year in which
the prevailing party’s rights are established. 
Executive’s rights pursuant to this Section 12(o) shall expire
at the end of 15 years after the date of termination of Executive’s employment
and shall not be subject to liquidation or exchange for another benefit.

 

p.             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.

 

q.             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)

 

17

 

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

 

 

	
  SUPERIOR ESSEX INC.

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen M. Carter

  	
   

  	
  /s/ J. David Reed

  
	
   

  	
  Stephen M. Carter

  	
   

  	
  J. David Reed

  
	
   

  	
  Chief Executive Officer

  	
   

  	
   

  

 

18

 

EXHIBIT A

 

SPECIAL RESTRICTED STOCK GRANT

 

1.     On April 1, 2008, the Company shall
grant Executive 2,000 shares of Company restricted common stock (the “Restricted
Shares”), granted pursuant to, and subject to, the terms and conditions of the
Superior Essex Inc. Amended and Restated 2005 Incentive Plan (the “2005 Plan”).

 

2.     The Restricted Shares will vest and become
non-forfeitable on the earliest to occur of the following:

 

a.     January 1, 2012, or

 

b.     the occurrence of a Change
in Control, or

 

c.     termination of Executive’s
employment due to death or Disability, or

 

d.     termination of Executive’s
employment without Cause or by the Executive with Good Reason.

 

 

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)            One time during the Agreement Term or any extension
thereof, the Company agrees to pay for or reimburse Executive for the expenses
and costs of relocation in accordance with the Company’s current relocation
policies, including the SIRVA home sale and home finding program, 60-day
temporary living accommodations, transportation of household goods, 60-days
temporary storage, a miscellaneous relocation allowance and one home-finding
trip.

 

(5)           The Company agrees to pay (or reimburse) Executive’s
legal fees and expenses in connection with the review of his employment offer
and this Agreement, up to $10,000.

 

 

EXHIBIT C

 

RELEASE

 

In exchange for a portion of the benefits
described in the attached Employment Agreement dated as of March 19, 2008
(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

  	
   

  	
  J. David Reed

  

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]