Document:

Exhibit 10.3

 

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 Barbara L.
Blackford (“Executive”).

 

The Company and Executive
entered into that certain Letter Agreement dated as of February 26, 2004
(the “Original Agreement”), 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 April 12,
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 Executive Vice President, General Counsel and
Corporate Secretary of the Company.  In
such position, Executive shall have such duties and authority, consistent with
such position with the Company, as shall be determined from time to time by the
Board of Directors of the Company (the “Board”) or the Chief Executive of the
Company.  Executive shall report directly
to the Chief Executive Officer of the Company.

 

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

 

 

significant respect, with the performance of Executive’s duties
hereunder or conflict with Section 9.

 

c.             Notwithstanding
anything to the contrary in this Section 2, Executive agrees to serve
without additional compensation, if elected or appointed thereto, as a director
of the Company and any of its subsidiaries and in one or more executive offices
of any of the Company’s subsidiaries, provided that Executive is
indemnified for serving in any and all such capacities.

 

3.             Base Salary.  During the Employment Term,
the Company shall pay Executive a base salary at the annual rate of $344,000
(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.

 

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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 her
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;

 

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(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 her termination by the Company for Cause or her
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.

 

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Following Executive’s
termination of employment due to death or Disability, except as set forth in
this Section 8(b)(ii), Section 8(d) or Sections 12(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 her 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, General Counsel and Corporate Secretary of the Company, (D) a
material adverse change in Executive’s authority, duties and responsibilities
or reporting lines, (E) a relocation of Executive’s principal place of
employment with the Company of more than 35 miles from Executive’s then current
work location, (F) the Company’s failure to pay amounts to which Executive
is entitled under this Agreement, or
(G) the Company’s giving written notice that it elects not to extend the
Employment Term pursuant to Section 1 of this Agreement (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

 

her(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 her termination by the
Company without Cause or her 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 she 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 she 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 she 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 she 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/ Barbara L. Blackford

  
	
  By:

  	
  Stephen M. Carter

  	
   

  	
  Barbara L. Blackford

  
	
   

  	
  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 $109,000, 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 $1,000 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 (i) Alabama, Georgia
and Texas Bar licenses and memberships and any other state or country in which
the Company requests Executive to practice, (ii) reasonable continuing
legal education and legal publications and (iii) membership in the American
Society of Corporate Secretaries, the American Bar Association, the Corporate
Counsel Association of America and certain of their committees and other
reasonable professional association membership fees.

 

 

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

  	
   

  	
  Barbara L. Blackford

  

 

2Exhibit 10.4

 

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 Justin F. Deedy, Jr.
(“Executive”).

 

The Company and Executive
entered into that certain Employment Agreement dated as of March 15, 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 Superior Essex
Communications LP.  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. The Company hereby acknowledges that
Executive shall be entitled to continue the activities listed on Exhibit A
attached hereto, provided that
such service does not, in the future, 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 $375,000
(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 B 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 C
attached hereto.

 

8.             Termination.  The Employment Term and
Executive’s employment hereunder may be terminated by either party at any time
and for any reason in the manner provided herein.  Notwithstanding any other provision of this
Agreement, the provisions of this Section 8 shall exclusively govern
Executive’s rights upon termination of employment with the Company and its
affiliates.  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 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.

 

3

 

(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.

 

(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 

 

4

 

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 Superior Essex Communications LLC, (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 

 

5

 

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 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 B, then held by
Executive shall vest and cease to be restricted as of the date of
termination.  Such decision may be based
on such factors, if any, as the Compensation Committee shall determine,
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 

 

6

 

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 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.

 

7

 

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 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 D.  Notwithstanding anything set forth in this
Agreement to the contrary, upon termination of Executive’s employment for any
reason, Executive shall not receive any payments or benefits to which Executive
may be entitled hereunder (other than those which by law cannot be subject to
the execution of a release) if Executive fails to execute such a release or
revokes such release.

 

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.

 

8

 

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

 

(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 

 

9

 

member of a group which controls, such person
and (b) does not, directly or indirectly, own 5% or more of any class of
securities of such Person.

 

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

 

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

 

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

 

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

 

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

 

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.

 

10

 

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

 

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

 

b.             Non-Disparagement.

 

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

 

(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 

 

11

 

termination of Executive’s employment, (C) defend
itself against any statement made by Executive that is intended or reasonably
likely to disparage any member of the Protected Group or otherwise degrade any
member of the Protected Group’s reputation in the business, industry or legal
community in which such member of the Protected Group operates, only if the
Company or its affiliate reasonably believes that the statements made in such
defense are not false statements and (D) provide truthful testimony in any
legal proceeding.

 

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

 

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

 

12.           Miscellaneous.

 

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

 

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

 

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

 

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 

 

12

 

is
an affiliate and shall be assigned to a successor in interest to substantially
all of the business operations of the Company which assumes in writing, or by
operation of law, the obligations of the Company hereunder.  Upon such assignment, the rights and
obligations of the Company hereunder shall become the rights and obligations of
such affiliate or successor person or entity; provided, however,
that, unless Executive consents to such assignment (which consent shall not be
unreasonably withheld), the Company shall remain secondarily liable for any
obligations hereunder.  Failure of the
Company to obtain such assumption substantially simultaneous with the
occurrence of such succession shall be a breach of the Agreement and shall
entitle Executive to terminate employment with the Company for Good Reason and
Executive’s rights and obligations shall be determined in accordance with Section 8(c)(iii),
except that for purposes of implementing the foregoing, the date on which any
such succession becomes effective shall be deemed the date of termination.  As used in the Agreement, Company shall mean
the Company as herein before defined and any successor to its business and/or
assets as aforesaid which executes and delivers the agreement provided for in
this Section or which otherwise becomes bound by all the terms and
provisions of this Agreement by operation of law.

 

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

 

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

 

h.             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

 

13

 

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.

 

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).

 

14

 

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, 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

 

15

 

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)

 

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/ Justin F. Deedy, Jr.

  
	
  By:

  	
  Stephen M. Carter

  	
   

  	
  Justin F. Deedy, Jr.

  
	
   

  	
  Chief Executive Officer

  	
   

  	
   

  

 

17

 

EXHIBIT A

 

PERMITTED ACTIVITIES

 

Vital Solutions, Inc.

Privately held Collection Agency

Minority owner and Director

 

Premier Copy, Inc.

Privately held wholesale copying and
fulfillment business

Minority owner, Director and Secretary

 

Envelopes and Forms, Inc.

Privately held printing business

Director and Secretary

 

 

EXHIBIT
B

 

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 $116,000, 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
C

 

PERQUISITES

 

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

 

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

 

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

 

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

 

 

EXHIBIT
D

 

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

  	
   

  	
  Justin F. Deedy, Jr.

  

 

 

2

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