Document:

EX-10.7

 

Exhibit
10.7

Execution Copy

Confirmation of Additional OTC Convertible Note Hedge

	 	 	 
	Date:
	 	November 15, 2006
	 
	 	 
	To:
	 	General Cable Corporation (“Counterparty”)
	 
	 	 
	From:
	 	Merrill Lynch International (“MLI”)
	 
	 	 
	MLI Reference:
	 	06821087
	 
	 	 
	 
	 	 
	 
	 	Dear Sir / Madam:

     The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and
conditions of the above-referenced transaction entered into among Counterparty, MLI and Merrill
Lynch, Pierce, Fenner & Smith Incorporated (the “Agent” or “MLPFS”) on the Trade
Date specified below (the “Transaction”). This Confirmation constitutes a “Confirmation”
as referred to in the Agreement specified below.

     The definitions and provisions contained in the 2000 ISDA Definitions (the “Swap
Definitions”) and the 2002 ISDA Equity Derivatives Definitions (the “Equity
Definitions” and, together with the Swap Definitions, the “Definitions”), in each case
as published by the International Swaps and Derivatives Association, Inc., are incorporated into
this Confirmation. In the event of any inconsistency between the Swap Definitions and the Equity
Definitions, the Equity Definitions will govern, and in the event of any inconsistency between the
Definitions and this Confirmation, this Confirmation will govern. References herein to a
“Transaction” shall be deemed to be references to a “Share Option Transaction” for purposes of the
Equity Definitions and a “Swap Transaction” for the purposes of the Swap Definitions.

     This Confirmation evidences a complete binding agreement between you and us as to the terms of
the Transaction to which this Confirmation relates. This Confirmation (notwithstanding anything to
the contrary herein), shall be subject to, and form part of, an agreement in the 1992 form of the
ISDA Master Agreement (Multicurrency Cross Border) (the “Master Agreement” or
“Agreement”) as if we had executed an agreement in such form (but without any Schedule and
with elections specified in the “ISDA Master Agreement” Section of this Confirmation) on the Trade
Date. In the event of any inconsistency between the provisions of that agreement and this
Confirmation, this Confirmation will prevail for the purpose of this Transaction. The parties
hereby agree that the Transaction evidenced by this Confirmation shall be the only Transaction
subject to and governed by the Agreement.

     The terms of the particular Transaction to which this Confirmation relates are as follows:

General Terms:

	 	 	 
	Trade Date:
	 	November 15, 2006
	 
	 	 
	Effective Date:
	 	The date of issuance of the Reference Notes.
	 
	 	 
	Option Style:
	 	Modified American, as described under “Settlement Terms” below.
	 
	 	 
	Option Type:
	 	Call

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	Seller:
	 	MLI
	 
	 	 
	Buyer:
	 	Counterparty
	 
	 	 
	Shares:
	 	The shares of common stock, $0.01 par value, of Counterparty (Security Symbol: “BGC”) or such other securities or property into which the Reference Notes are convertible on the date of determination.
	 
	 	 
	Premium:
	 	$3,506,000
	 
	 	 
	Premium Payment Date:
	 	The date of issuance of the Reference Notes.
	 
	 	 
	Exchange:
	 	New York Stock Exchange
	 
	 	 
	Related Exchange(s):
	 	All Exchanges
	 
	 	 
	Reference Notes:
	 	0.875% Convertible Notes of Counterparty due 2013 in the original amount of U.S.$315,000,000.
	 
	 	 
	Applicable Portion of the
Reference Notes:
	 	

10/355.  For the avoidance of doubt, the Calculation Agent shall, as it deems necessary, take into account the Applicable Portion of the Reference Notes in determining or calculating any delivery or payment obligations hereunder, whether upon a Conversion Date (as defined below) or otherwise.
	 
	 	 
	Note Indenture:
	 	The indenture, dated as of closing of the issuance of the Reference Notes, between Counterparty and U.S. Bank National Association, as trustee relating to the Reference Notes, as the same may be amended, modified or supplemented.  Certain defined terms used herein have the meanings assigned to them in the Note Indenture.
	 
	 	 
	Procedures for Exercise:
	 	 
	 
	 	 
	Potential Exercise Dates:
	 	Each Conversion Date.
	 
	 	 
	Conversion Date:
	 	Each “conversion date”
for any Reference Note pursuant to the terms of the Note Indenture (the principal amount of Reference Notes so converted, the
“Conversion Amount” with respect to such
Conversion Date) occurring before the Expiration Date.

If the Conversion Amount for any Conversion Date is less than the aggregate principal amount of Reference Notes then outstanding, then the terms of this Transaction shall continue to apply, subject to the
terms and conditions set forth herein, with respect to the remaining outstanding principal amount of the Reference Notes multiplied by the Applicable Portion of the Reference Notes.
	 
	 	 
	Expiration Period:
	 	The period from and excluding the Trade Date to and including the Expiration Date.
	 
	 	 
	Expiration Date:
	 	The earliest of (i) the maturity date of the Reference Notes, (ii) the first day on which none of such Reference Notes remain outstanding, whether by virtue of conversion, issuer repurchase or otherwise and (iii) the occurrence of an Additional Termination Event and designation of an Early Termination Date

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	 	hereunder in respect of the termination of the Transaction in whole but not in part.
	 
	 	 
	Exercise Notice:
	 	Notwithstanding anything to the contrary in the Equity Definitions, in order to exercise any Options hereunder, Buyer shall provide Seller with written notice prior to 5:00 p.m. New York City time on the Exchange Business Day prior to the first Trading Day in the Conversion Reference Period (both as defined in the Note Indenture) relating to the Reference Notes converted on the relevant Conversion Date of (i) the number of Reference Notes being converted on the relevant Con
version Date, (ii) the first Trading Day in the relevant Conversion Reference Period for the Reference Notes and (iii) if
any, the applicable Cash Percentage (as defined in the Note Indenture); provided that with respect to Reference
Notes converted during the period beginning on October 15, 2013 and ending on the business day immediately preceding
the Maturity Date (as defined in the Note Indenture) of the Reference Notes, the related  Exercise Notice shall be
delivered prior to 5:00 p.m. New York City time
 on such Maturity Date (as defined in the Note Indenture); and provided further that the delivery by Buyer of an Exercise
Notice after the Conversion Reference Period has commenced but prior to the close of business on the fifth Trading
Day of such Conversion Reference Period shall be effective, in which case the Settlement Method shall
be Net Share Settlement but without regard to subsection (ii) of the definition of Net Share Settlement
and subject to adjustments to the Net Share  Settlement Amount as specified below.
	 
	 	 
	Seller’s Telephone Number
and Telex and/or Facsimile
Number and Contact Details
for purpose of Giving Notice:
	 	

Address: Merrill Lynch International
Merrill Lynch Financial Centre
2 King Edward Street
London EC1A 1HQ
Attention: Manager, Fixed Income Settlements
Facsimile No.: +44 207 995 2004
Telephone No.: +44 207 995 3769
	 
	 	 
	Settlement Terms:
	 	 
	 
	 	 
	Settlement Method:
	 	Net Share Settlement or Net Cash Settlement consistent with Buyer’s election with respect to the Reference Notes converted on the applicable Conversion Date, provided that Net Share Settlement shall apply in the event that Buyer elects to deliver any Shares in connection with the applicable Conversion Date.
	 
	 	 
	Settlement Date:
	 	Subject to the delivery of an Exercise Notice to the Seller, the third (3rd) Exchange Business Day following the final Trading Day in the applicable Conversion Reference Period in respect of the relevant Conversion Date.
	 
	 	 
	Net Share Settlement:
	 	In lieu of the obligations set forth in Sections 8.1 and 9.1 of the Equity Definitions,
Seller shall deliver to Buyer on the related Settlement Date (i) a number of Shares equal to the related Net Share
Settlement Amount, provided that in the event that the number of Shares calculated comprises any fractional Share,
the number of Shares to be delivered shall be rounded up or down to the nearest integral number of Shares  and (ii)
(x) an amount in cash equal to the cash amount,
if any, paid by Buyer in excess of the principal amount of the applicable Reference Notes for such Conversion Date under the Note Indenture

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	 	multiplied by (y) the Applicable Portion of the Reference Notes, provided that the delivery obligation set forth in clause (i) and (ii) of this paragraph shall be determined excluding any
Shares or cash that Counterparty is obligated to deliver to holders of the applicable Reference Notes as a result of any adjustments to the Conversion Rate resulting from (i) an adjustment to the Conversion Rate made pursuant to Section 4.12 of the Note Indenture by Counterparty or (ii) an
 adjustment to the Conversion Rate as a result of a Make Whole Premium adjustment pursuant to Section 4.01(j) of the Note Indenture. The provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 and 9.12 of the Equity Definitions shall apply to any delivery of Shares hereunder, provided that the Representation and Agreement in Section 9.11 of the Equity Definitions shall be modified by excluding any representations
therein relating to restrictions, obligations, limitations or requirements under
applicable securities laws solely as a result of the fact that Buyer is the issuer of the Shares.
	 
	 	 
	Net Cash Settlement:
	 	In lieu of the obligations set forth in Section 8.1 of the Equity Definitions, on the Settlement Date Seller shall deliver to Buyer an amount in cash equal to the related Net Cash Settlement Amount.
	 
	 	 
	Net Share Settlement
Amount:
	 	For each Conversion Date, the number of Shares equal to the Shares delivered by Buyer for such Conversion Date under the Note Indenture multiplied by the Applicable Portion of the Reference Notes, provided that if an Exercise Notice with respect to such Conversion Date has not been delivered to the Seller prior to the first Trading Day of the Conversion Reference Period applicable to such Conversion Date, the Net Share
Settlement Amount for such Conversion Date shall be adjusted by the Calculation Agent to
account for the reduced number of Trading Days from the delivery of the Exercise
Notice to the end of the applicable Conversion Reference Period with respect to
such Conversion Date.  No reduction of the Net Share Settlement Amount shall reduce the Net Share Settlement Amount below zero.
	 
	 	 
	Net Cash Settlement Amount:
	 	For each Conversion Date, an amount equal to the cash delivered by the Buyer in excess of the principal amount of the applicable Reference Notes for such Conversion Date under the Note Indenture multiplied by the Applicable Portion of the Reference Notes, provided that  such cash amount shall be determined excluding any cash that Counterparty is obligated to deliver to holders of the applicable Reference Notes as a result of any adjustments to the Conversion Rate resulting
from (i) an adjustment to the Conversion Rate made pursuant to Section 4.12 of the Note Indenture by Counterparty or (ii) an adjustment to the Conversion Rate as a result of a Make Whole Premium adjustment pursuant to Section 4.01(j) of the Note Indenture.
	 
	 	 
	Adjustments: 
	 	 
	 
	 	 
	Method of Adjustment:
	 	Calculation Agent Adjustment; provided that the terms of this Transaction shall be adjusted in a manner consistent with adjustments of the Conversion Rate of the Reference Notes as provided in the Note Indenture; provided further (without limitation of the provisions set forth above under “Net Share Settlement” and “Net Cash Settlement Amount”) that no adjustment in respect of any Potential Adjustment Event or Extraordinary Event shall be m
ade hereunder as a result of any adjustments to the Conversion Rate resulting from (i) an adjustment to the Conversion Rate made pursuant to Section 4.12 of the Note Indenture by Counterparty or (ii) an adjustment to the Conversion Rate as

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	 	a result of a Make Whole Premium adjustment pursuant to Section 4.01(j) of the Note Indenture.
	 
	 	 
	Potential Adjustment Event:
	 	Notwithstanding Section 11.2(e) of the Equity Definitions, a “Potential Adjustment Event” means the occurrence of an event or condition that would result in an adjustment of the Conversion Rate of the Reference Notes pursuant to Section 4.06 of the Note Indenture.
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	Merger Events:
	 	Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event” means the occurrence of any event or condition set forth in Section 4.10(a) of the Note Indenture.
	 
	 	 
	Consequences for Merger Events:
	 	 
	 
	 	 
	Share-for-Share:
	 	The Transaction will be adjusted consistent with the Reference Notes as provided in the Note Indenture.
	 
	 	 
	Share-for-Other:
	 	The Transaction will be adjusted consistent with the Reference Notes as provided in the Note Indenture.
	 
	 	 
	Share-for-Combined:
	 	The Transaction will be adjusted consistent with the Reference Notes as provided in the Note Indenture.
	 
	 	 
	Tender Offer:
	 	Applicable, subject to “Consequences of Tender Offers” below.  Notwithstanding Section 12.1(d) of the Equity Definitions, a “Tender Offer” means the occurrence of any event or condition set forth in Section 4.06(a)(7) of the Note Indenture.
	 
	 	 
	Consequences of Tender Offers:
	 	The Transaction will be adjusted consistent with the Reference Notes as provided in the Note Indenture.
	 
	 	 
	Nationalization, Insolvency
and Delisting:
	 	Cancellation and Payment (Calculation Agent Determination), provided Buyer
shall determine whether payment shall be settled in cash or Shares.  In  addition to the provisions of Section 12.6(a)(iii)
of the Equity Definitions,it will also constitute a Delisting if the Exchange is located in the United States and the Shares
are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, the American Stock Exchange or the
NASDAQ National Market System (or their respective successors,
including without limitation the NASDAQ Global Market and NASDAQ Global Select Market); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall thereafter be deemed to be the Exchange.
	 
	 	 
	Additional Disruption Events:
	 	 
	 
	 	 
	Change in Law:
	 	Applicable
	 
	 	 
	Failure to Deliver:
	 	Applicable.  If there is inability in the market to deliver Shares due to illiquidity on a day that would have been a Settlement Date, then the Settlement Date shall be the first succeeding Exchange Business Day on which there is no such inability to deliver, but in

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	 	no such event shall the Settlement Date be later than the date that is two (2) Exchange Business Days immediately following what would have been the Settlement Date but for such inability to deliver.
	 
	 	 
	Insolvency Filing:
	 	Applicable
	Hedging Disruption Event:
	 	Applicable
	Increased Cost of Hedging:
	 	Not Applicable
	Loss of Stock Borrow:
	 	Not Applicable
	Increased Cost of Stock Borrow:
	 	Not Applicable
	Hedging Party:
	 	Seller
	Determining Party:
	 	Seller
	Non-Reliance:
	 	Applicable
	Agreements and Acknowledgments
	 	 
	Regarding Hedging Activities:
	 	Applicable
	Additional Acknowledgments:
	 	Applicable

Additional Agreements, Representations and Covenants of Buyer, Etc.:

	1.	 	Buyer hereby represents and warrants to Seller, on each day from the Trade Date to and
including the earlier of (i) December 15, 2006 and (ii) the date by which Seller is able to
initially complete a hedge of its position relating to this Transaction, that:

	 	a.	 	it will effect (and cause any “affiliated purchaser” (as defined in Rule 10b-18
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) to effect) any purchases, direct or indirect (including by means of any
cash-settled or other derivative instrument), of Shares or any security convertible
into or exchangeable or exercisable for Shares solely through Agent in a manner that
would not cause any purchases by Seller of its hedge in connection with this
Transaction not to comply with applicable securities laws; provided that this clause
(a) shall not apply to any transactions in Shares effected directly between Buyer and
its employees pursuant to an employee share incentive or benefit plan;
	 
	 	b.	 	it will not engage in, or be engaged in, any “distribution,” as such term is
defined in Regulation M promulgated under the Exchange Act, other than a distribution
meeting the requirements of the exceptions set forth in sections 101(b)(10) and
102(b)(7) of Regulation M (it being understood that Buyer makes no representation
pursuant to this clause in respect of any action or inaction taken by Seller or any
Underwriter of the Reference Notes); and
	 
	 	c.	 	Buyer has publicly disclosed all material information necessary for Buyer to be
able to purchase or sell Shares in compliance with applicable federal securities laws
and that it has publicly disclosed all material information with respect to its
condition (financial or otherwise).

	2.	 	If Buyer would be obligated to pay cash to, or receive cash from, Seller pursuant to the
terms of this Agreement for any reason without having had the right (other than pursuant to
this paragraph (2)) to elect

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	 	 	to deliver or receive Shares in satisfaction of such payment
obligation, then Buyer may elect that such payment obligation shall be satisfied by the
delivery of a number of Shares (or, if the Shares have been converted into other securities or
property in connection with an Extraordinary Event, a number or amount of such other
securities or property as a holder of Shares would be entitled to receive upon the
consummation or closing of such Extraordinary Event) having a cash value equal to the amount
of such payment obligation (such number or amount of Shares or other securities or property to
be delivered to be determined by the Calculation Agent as the number of Shares or number or
amount of such other securities or property that could be purchased or sold, as applicable, by
Seller over a reasonable period of time for the
cash equivalent of such payment obligation). Settlement relating to any delivery of Shares
or other securities or property pursuant to this paragraph (2) shall occur within a
reasonable period of time.

	3.	 	Notwithstanding any provision in the Note Indenture, this Confirmation or the Agreement to
the contrary, each of the “applicable Conversion Rate” (as such term is used in the Note
Indenture), the Net Share Settlement Amount, the Net Cash Settlement Amount and any other
amount computed hereunder by reference to the applicable Conversion Rate shall be determined
without regard to any adjustments to the Conversion Rate made pursuant to Section 4.12 of the
Note Indenture or as a result of a Make Whole Premium adjustment pursuant to Section 4.01(j)
of the Note Indenture.

	4.	 	Notwithstanding Section 6(e) of the Agreement or Sections 12.7 or 12.8 of the Equity
Definitions, if, with respect to the Transaction contemplated hereunder, (A) an Early
Termination Date with respect to any Event of Default or any Termination Event, (B) a Closing
Date with respect to an event described in Section 12.6 of the Equity Definitions, or (C) a
date as of which the Transaction is, or is deemed to have been, terminated or cancelled as a
result of an applicable Additional Disruption Event (any such date, the “Relevant Date”) shall
occur, then in lieu of any payments hereunder pursuant to Sections 6(d)(ii) and 6(e) of the
Agreement or Sections 12.7 or 12.8 of the Equity Definitions, as applicable, (if a calculation
under such sections would otherwise be required) the Calculation Agent shall determine the
number of Shares deliverable by MLI to Counterparty on the following basis and the following
provisions shall apply:
	 
	 	 	(i) such Relevant Date shall be the sole Exercise Date hereunder and Automatic Exercise
shall be applicable;
	 
	 	 	(ii) the Settlement Method shall be Net Share Settlement and the provisions set forth above
under “Net Share Settlement” shall apply (but without regard to subsection (ii) thereof, or
any right of the Counterparty to elect to deliver cash in lieu of Remaining Shares pursuant
to Section 4.13(b) of the Note Indenture, or any requirement of Counterparty to deliver an
Exercise Notice) as if a Conversion Date had occurred, the Conversion Amount were the
aggregate principal amount of the Reference Notes then outstanding, and the Remaining Shares
were equal to (X) the excess, if any, of (a) the VWAP Price on the Relevant Date multiplied
by the applicable Conversion Rate over (b) $1,000; divided by (Y) the VWAP Price on the
Relevant Date; provided that, if the Shares have been converted into other
securities or property in connection with an Extraordinary Event, Seller may deliver a
number or amount of such other securities or property as a holder of the number of Shares
that would otherwise be deliverable under this paragraph would be entitled to receive upon
the consummation or closing of such Extraordinary Event. “VWAP Price” means, on any
date, the per Share volume-weighted average price as displayed under the heading “Bloomberg
VWAP” on Bloomberg page BGC <equity> VAP (or any successor thereto) in respect of the
period from 9:45 a.m. to 3:45 p.m. (New York City time) on such date (or if such
volume-weighted average price is unavailable, the market value of one Share (or, if
applicable, the value per Share of the consideration paid or delivered to holders of Shares
at the time of an Extraordinary Event) on such date, as determined by the Calculation
Agent); and
	 
	 	 	(iii) the Settlement Date shall be the date that falls one Settlement Cycle following the
Relevant Date.

	5.	 	Counterparty is not, and after giving effect to the Transaction contemplated hereby, will not
be, an “investment company” as such term is defined in the Investment Company Act of 1940, as
amended.

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	6.	 	As of the Trade Date and each date on which a payment or delivery is made by Counterparty
hereunder, (i) the assets of Counterparty at their fair valuation exceed the liabilities of
Counterparty, including contingent liabilities; (ii) the capital of Counterparty is adequate
to conduct its business; and (iii) Counterparty has the ability to pay its debts and other
obligations as such obligations mature and does not intend to, or believe that it will, incur
debt or other obligations beyond its ability to pay as such obligations mature.

Additional Termination Events:

          The occurrence of any of the following shall be an Additional Termination Event for purposes
of this Transaction:

	1.	 	Amendment Event. If an Amendment Event (as defined below) occurs, MLI shall have the right
to designate an Early Termination Date pursuant to Section 6(b) of the Agreement and,
notwithstanding anything to the contrary herein, no payments shall be required under this
Agreement in connection with such Amendment Event.
	 
	 	 	“Amendment Event” means that the Counterparty, without the prior consent of
Seller, amends, modifies, supplements or obtains a waiver of (a) any term of the Note
Indenture or the Reference Notes relating to the principal amount, coupon, maturity or
repurchase obligation of the Counterparty, (b) any material term relating to conversion of
the Reference Notes (including changes to the conversion price, conversion settlement dates
or conversion conditions) or (c) any term that would require consent of the holders of 100%
of the principal amount of the Reference Notes to amend;

	2.	 	Repayment Event. If a Repayment Event (as defined below) occurs, MLI shall have the right to
designate an Early Termination Date pursuant to Section 6(b) of the Agreement with respect to
this Transaction to the extent of the principal amount of Reference Notes that cease to be
outstanding as a result of such Repayment Event and, notwithstanding anything to the contrary
herein, no payments shall be required under this Agreement in connection with such Repayment
Event.
	 
	 	 	“Repayment Event” means that (a) any Reference Notes are repurchased (whether in
connection with or as a result of a change of control, howsoever defined, or for any other
reason other than as a result of or in connection with a conversion) by the Counterparty,
(b) any Reference Notes are delivered to the Counterparty in exchange for delivery of any
property or assets of the Counterparty or any of its subsidiaries (howsoever described),
other than as a result of and in connection with a Conversion Date, (c) any principal of any
of the Reference Notes is repaid prior to the Final Maturity Date (as defined in the Note
Indenture) (whether following acceleration of the Reference Notes or otherwise), provided
that no payments of cash made in respect of the conversion of a Reference Note shall be
deemed a payment of principal under this clause (c), (d) any Reference Notes are exchanged
by or for the benefit of the holders thereof for any other securities of the Counterparty or
any of its Affiliates (or any other property, or any combination thereof) pursuant to any
exchange offer or similar transaction or (e) any of the Reference Notes is surrendered by
Counterparty to the trustee for cancellation, other than registration of a transfer of such
Reference Notes or as a result of and in connection with a Conversion Date.

Staggered Settlement:

If Seller determines reasonably and in good faith that the number of Shares required to be
delivered to Buyer hereunder on any Settlement Date would exceed 8.0% of all outstanding Shares,
then Seller may, by notice to Buyer on or prior to such Settlement Date (a “Nominal Settlement
Date”), elect to deliver the Shares comprising the related Net Share Settlement Amount on two
or more dates (each, a “Staggered Settlement Date”) or at two or more times on the Nominal
Settlement Date as follows:

	1.	 	in such notice, Seller will specify to Buyer the related Staggered Settlement Dates (the
first of which will be such Nominal Settlement Date and the last of which will be no later
than twenty (20) Trading Days

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	 	 	following such Nominal Settlement Date) or delivery times and
how it will allocate the Shares it is required to deliver hereunder among the Staggered
Settlement Dates or delivery times;

	2.	 	the aggregate number of Shares that Seller will deliver to Buyer hereunder on all such
Staggered Settlement Dates or delivery times will equal the number of Shares that Seller would
otherwise be required to deliver on such Nominal Settlement Date; and

	3.	 	the Net Share Settlement terms will apply on each Staggered Settlement Date, except that the
Shares comprising the Net Share Settlement Amount will be allocated among such Staggered
Settlement Dates or delivery times as specified by Seller in the notice referred to in clause
(1) above.

Notwithstanding anything herein to the contrary, solely in connection with a Staggered Settlement
Date, Seller shall be entitled to deliver Shares to Buyer from time to time prior to the date on
which Seller would be obligated to deliver them to Buyer pursuant to Net Share Settlement terms set
forth above, and Buyer agrees to credit all such early deliveries against Seller’s obligations
hereunder in the direct order in which such obligations arise. No such early delivery of Shares
will accelerate or otherwise affect any of Buyer’s obligations to Seller hereunder.

Disposition of Hedge Shares:

Seller shall conduct its hedging activities in connection with the Transaction in a manner that it
believes, based on its reasonable judgment, will not require Counterparty to register under the
Securities Act or any state securities laws the Shares (the “Hedge Shares”) acquired by
Seller for the purpose of hedging its obligations pursuant to the Transaction. In addition,
Counterparty hereby agrees that if, in the reasonable judgment of Seller based on advice of
counsel, the Hedge Shares cannot be sold in the U.S. public market by Seller without registration
under the Securities Act, Counterparty shall, at its election: (i) in order to allow Seller to sell
the Hedge Shares in a registered offering, use commercially reasonable efforts to make available to
Seller an effective registration statement under the Securities Act to cover the resale of such
Hedge Shares and (a) enter into an agreement, in form and substance satisfactory to Seller and
Counterparty, substantially in the form of an underwriting agreement for a registered offering, (b)
provide accountant’s “comfort” letters in customary form for registered offerings of equity
securities, (c) provide disclosure opinions of nationally recognized outside counsel to
Counterparty reasonably acceptable to Seller, (d) provide other customary opinions, certificates
and closing documents customary in form for registered offerings of equity securities and (e)
afford Seller a reasonable opportunity to conduct a “due diligence” investigation with respect to
Counterparty customary in scope for underwritten offerings of equity securities registered for
resale; provided, however, that if Seller, in its sole reasonable discretion, is not satisfied with
access to due diligence materials, the results of its due diligence investigation, or the
procedures and documentation for the registered offering referred to above, then clause (ii) of
this Section shall apply; or (ii) in order to allow Seller to sell the Hedge Shares in a private
placement, enter into a private placement agreement substantially similar to private placement
purchase agreements customary for private placements of equity securities by a publicly reporting
company (if Counterparty is a publicly reporting company at such time) to institutional purchasers,
in form and substance satisfactory to Seller and Counterparty, including reasonable and customary
representations, covenants, blue sky and other governmental filings and/or registrations,
indemnities to Seller, due diligence rights (for Seller or any designated buyer of the Hedge Shares
from Seller), opinions and certificates and such other documentation as is customary for private
placements agreements, all reasonably acceptable to Seller (in which case, the Calculation Agent
shall make any adjustments to the terms of the Transaction that it determines are necessary to
reflect an appropriate discount from the public market price of the Shares due to the lack of
liquidity thereof).

Repurchase Notices:

Counterparty shall, on any day on which Counterparty effects any repurchase of Shares, promptly
give Seller a written notice of such repurchase (a “Repurchase Notice”) on such day if
following such repurchase, the Notice Percentage as determined on such day is (i) greater than 6%
and (ii) greater by 0.5% than the Notice Percentage included in the immediately preceding
Repurchase Notice (or, in the case of the first such Repurchase Notice, greater than the Notice
Percentage as of the date hereof). In the event that Counterparty fails to provide Seller with a
Repurchase Notice on the day and in the manner specified in this section, then Counterparty agrees
to indemnify

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 and hold harmless Seller, its affiliates and their respective directors, officers,
employees, agents and controlling persons (Seller and each such person being an “Indemnified
Party”) from and against any and all losses, claims, damages and liabilities (or actions in
respect thereof), joint or several, to which such Indemnified Party may become subject under
applicable securities laws, including without limitation, Section 16 of the Exchange Act, relating
to or arising out of such failure. If for any reason the foregoing indemnification is unavailable
to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then Counterparty
shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the
Indemnified Party as a result of such loss, claim, damage or liability. In addition, Counterparty
will reimburse any Indemnified Party for all reasonable and documented
expenses (including reasonable counsel fees and expenses) as they are incurred (after notice to
Counterparty) in connection with the investigation of, preparation for or defense or settlement of
any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not
such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding
is initiated or brought by or on behalf of Counterparty. This indemnity shall survive the
completion of the Transaction contemplated by this Confirmation and any assignment and delegation
of the Transaction made pursuant to this Confirmation or the Agreement shall inure to the benefit
of any permitted assignee of Seller. Counterparty will not be liable under this Indemnity
provision to the extent that any loss, claim, damage, liability or expense is found in a final
judgment by a court to have resulted from MLI’s gross negligence or willful misconduct. The
“Notice Percentage” as of any day is the fraction, expressed as a percentage, (i) the
numerator of which is the product of (a) 25% of the number of outstanding Reference Notes and (b)
the number of Shares per Reference Note equal to the Conversion Rate (as defined in the Note
Indenture) and (ii) the denominator of which is the number of Shares outstanding on such day. The
parties agree that the Confirmation of the OTC Convertible Note Hedge between Counterparty and MLI
dated as of November 9, 2006 is hereby amended so that the term “Notice Percentage” as used
therein shall refer to the fraction specified in the definition of “Notice Percentage” in
the preceding sentence.

	 	 	 
	Compliance with Securities Laws:

	 	

Each party represents and agrees
that, in connection with this
Transaction and all related or
contemporaneous sales and purchases
of Shares by either party, Buyer, or
in the case of Seller, the person(s)
that directly influences the
specific trading decisions of
Seller, has complied and will comply
with the applicable provisions of
the Securities Act of 1933, as
amended (the “Securities Act”), and
the Exchange Act, and the rules and
regulations each thereunder,
including, without limitation, Rules
10b-5, 10b-18 and 13e and Regulation
M under the Exchange Act; provided
that each party shall be entitled to
rely conclusively on any information
communicated by the other party
concerning such other party’s market
activities.
	 
	 	 
	 

	 	Each party acknowledges that the
offer and sale of the Transaction to
it is intended to be exempt from
registration under the Securities
Act by virtue of Section 4(2)
thereof. Accordingly, Buyer
represents and warrants to Seller
that (i) it has the financial
ability to bear the economic risk of
its investment in the Transaction
and is able to bear a total loss of
its investment, (ii) it is an
“accredited investor” as that term
is defined in Regulation D as
promulgated under the Securities Act
and (iii) the disposition of the
Transaction is restricted under this
Confirmation, the Securities Act and
state securities laws.
	 
	 	 
	 

	 	Buyer further represents:
	 
	 	 
	 

	 	(a) Buyer is not entering into this
Transaction to create actual or
apparent trading activity in the
Shares (or any security convertible
into or exchangeable for Shares) or
to raise or depress or otherwise
manipulate the price of the Shares
(or any security convertible into or
exchangeable for Shares);
	 
	 	 
	 

	 	(b) Buyer acknowledges that as of
the date hereof and without limiting
the generality of Section 13.1 of
the Equity Definitions, Seller is
not making any representations or
warranties with respect to the
treatment of the Transaction under
FASB Statements

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Execution Copy

	 	 	 
	 

	 	149 or 150, EITF
Issue No. 00-19 (or any successor
issue statements) or under FASB’s
Liabilities & Equity Project.

	 	 	 	 	 
	Account Details:

	 	Account for payments
	 	to Buyer: PNC Bank, Ohio, N.A.

201 East Fifth Street

Cincinnati, Ohio 45201

ABA Number: 042000398

Account Name: General Cable Corporation

Account Number: 4074093412

SWIFT: PNCCUS33
	 
	 
	 	Account for payment to Seller:	 	Chase Manhattan Bank, New York
	 

	 	 	 	
ABA#: 021-000-021

FAO: ML Equity Derivatives

A/C: 066213118
	 
	 	 	 	 
	 

	 	Accounts for deliveries of
Shares:
	 	[to be advised by Buyer or Seller, as applicable]
	 
	 	 	 	 
	Bankruptcy Rights:	 	In the event of Buyer’s bankruptcy, Seller’s rights in connection with this Transaction shall not exceed
those rights held by common shareholders. For the avoidance of doubt, the parties acknowledge and agree
that Seller’s rights with respect to any other claim arising from this Transaction prior to Buyer’s
bankruptcy shall remain in full force and effect and shall not be otherwise abridged or modified in
connection herewith.
	 
	 	 	 	 
	Set-Off:	 	Each party waives any and all rights it may have to set-off, whether arising under any agreement,
applicable law or otherwise.
	 
	 	 	 	 
	Collateral:

	 	None.	 	 
	 
	 	 	 	 
	Transfer:	 	Buyer shall have the right to assign its rights and delegate its obligations hereunder with respect to
any portion of this Transaction, subject to Seller’s consent, such consent not to be unreasonably
withheld; provided that such assignment or transfer shall be subject to receipt by Seller of opinions
and documents reasonably satisfactory to Seller and effected on terms reasonably satisfactory to the
Seller with respect to any legal and regulatory requirements relevant to the Seller; provided further
that Buyer shall not be released from its obligation to deliver a Exercise Notice. If, as determined in
Seller’s sole discretion, (i) its “beneficial ownership” (within the meaning of Section 13 of the
Exchange Act and rules promulgated thereunder) could be deemed to exceed 8% of Counterparty’s
outstanding Shares or (ii) the quotient of (x) the product of (a) the Number of Options and (b) the
Option Entitlement divided by (y) the number of Counterparty’s outstanding Shares (such quotient
expressed as a percentage, the “Option Equity Percentage”) exceeds 9%, Seller may, without
Counterparty’s consent, transfer or assign all or any part of its rights or obligations under this
Transaction to reduce such “beneficial ownership” to 7.5% or such Option Equity Percentage to 8.5% to
any third party with a rating for its (or, if applicable, its Credit Support Provider’s) long term,
unsecured and unsubordinated indebtedness of A- or better by Standard & Poor’s Ratings Service or its
successor (“S&P”), or A3 or better by Moody’s Investors Service (“Moody’s”) or, if either S&P or Moody’s
ceases to rate such debt, at least an equivalent rating or better by a substitute rating agency mutually
agreed by Company and Seller. If after Seller’s commercially reasonable efforts, Seller is unable to
effect such a transfer or assignment on pricing terms reasonably acceptable to Seller and within a time
period reasonably acceptable to Seller of a sufficient number of Options to reduce (i) Seller’s
“beneficial ownership”

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Execution Copy

	 	 	 	 	 
	 	 	(within the meaning of Section 13 of the Exchange Act and rules promulgated
thereunder) to 7.5% of Counterparty’s outstanding Shares or less or (ii) the Option Equity
Percentage to 8.5% or less, Seller may designate any Exchange Business Day as an Early
Termination Date with respect to a portion (the “Terminated Portion”) of this Transaction, such
that (i) its “beneficial ownership” following such partial termination will be equal to or less
than 7.5% or (ii) the Option Equity Percentage following such partial termination will be equal
to or less than 8.5%. In the event that Seller so designates an Early Termination Date with
respect to a portion of this Transaction, the provisions set forth above under paragraph 4 of
“Additional Agreements, Representations and Covenants of Buyer, Etc.” shall apply in lieu of
Section 6(d)(ii) and 6(e) of the Agreement as if (i) an Early Termination Date had been
designated in respect of a Transaction having terms identical to this Transaction and a Number of
Options equal to the Terminated Portion and (ii) such Transaction were the only Terminated
Transaction. In circumstances in which the foregoing provisions relating to Seller’s right to
transfer or assign its rights or obligations under the Transaction are not applicable, Seller may
transfer any of its rights or delegate its obligations under this Transaction with the prior
written consent of Buyer, which consent shall not be unreasonably withheld.
	 
	 	 	 	 
	Regulation:	 	Seller is regulated by The Securities and Futures Authority Limited.

Matters Relating to Agent:

	1.	 	MLPFS will be responsible for the operational aspects of the Transactions effected through
it, such as record keeping, reporting, and confirming Transactions to Buyer and Seller;

	2.	 	Unless Seller is a “major U.S. institutional investor,” as defined in Rule 15a-6 of the
Exchange Act, neither Buyer nor Seller will contact the other without the direct involvement
of MLPFS;

	3.	 	MLPFS’s sole role under this Agreement and with respect to any Transaction is as an agent of
Buyer and Seller on a disclosed basis and MLPFS shall have no responsibility or liability to
Buyer or Seller hereunder except for gross negligence or willful misconduct in the performance
of its duties as agent. MLPFS is authorized to act as agent for Buyer, but only to the extent
expressly required to satisfy the requirements of Rule 15a-6 under the Exchange Act in respect
of the Options described hereunder. MLPFS shall have no authority to act as agent for Buyer
generally or with respect to transactions or other matters governed by this Agreement, except
to the extent expressly required to satisfy the requirements of Rule 15a-6 or in accordance
with express instructions from Buyer.

ISDA Master Agreement:

With respect to the Agreement, Seller and Counterparty each agree as follows:

“Specified Entity” means in relation to Seller and in relation to Counterparty for purposes of this
Transaction: Not applicable.

Notwithstanding the definition in Section 14 of the Agreement, “Specified Transaction” shall mean
only the OTC Convertible Note Hedge Transaction pursuant to the Confirmation between Counterparty
and MLI dated as of November 9, 2006.

The “Cross Default” provisions of Section 5(a)(vi) of the Agreement will not apply to
Seller and will not apply to Counterparty.

The “Credit Event Upon Merger” provisions of Section 5(b)(iv) of the Agreement will not
apply to Seller and Counterparty.

12

 

Execution Copy

The “Automatic Early Termination” provision of Section 6(a) of the Agreement will not apply
to Seller or to Counterparty.

Payments on Early Termination. For the purpose of Section 6(e) of the Agreement: (i) Loss
shall apply; and (ii) the Second Method shall apply.

“Termination Currency” means USD.

Tax Representations.

	(a)	 	Payer Representations. For the purpose of Section 3(e) of the Agreement, each party
represents to the other party that it is not required by any applicable law, as modified by
the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to
make any deduction or withholding for or on account of any Tax from any payment (other than
interest under Section 2(e), 6(d)(ii), or 6(e) of the Agreement) to be made by it to the other
party under the Agreement. In making this representation, each party may rely on (i) the
accuracy of any representations made by the other party pursuant to Section 3(f) of the
Agreement, (ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of
the Agreement, and the accuracy and effectiveness of any document provided by the other party
pursuant to Section 4(a)(i) or 4(a)(iii) of the Agreement, and (iii) the satisfaction of the
agreement of the other party contained in Section 4(d) of the Agreement; provided that it will
not be a breach of this representation where reliance is placed on clause (ii) above and the
other party does not deliver a form or document under Section 4(a)(iii) of the Agreement by
reason of material prejudice to its legal or commercial position.

	(b)	 	Payee Representations. For the purpose of Section 3(f) of the Agreement, each party makes
the following representations to the other party:

	 	(i)	 	Seller represents that it is a corporation organized under the laws of England
and Wales.
	 
	 	(ii)	 	Counterparty represents that it is a corporation incorporated in Delaware.

Delivery Requirements. For the purpose of Sections 4(a)(i) and (ii) of the
Agreement, each party agrees to deliver the following documents:

	(a)	 	Tax forms, documents or certificates to be delivered are:
	 
	 	 	Each party agrees to complete (accurately and in a manner reasonably satisfactory to the
other party), execute, and deliver to the other party, United States Internal Revenue
Service Form W-9 or W-8 BEN, or any successor of such form(s): (i) before the first payment
date under this agreement; (ii) promptly upon reasonable demand by the other party; and
(iii) promptly upon learning that any such form(s) previously provided by the other party
has become obsolete or incorrect.
	 
	(b)	 	Other documents to be delivered:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Covered by
	Party Required to	 	 	 	 	 	Section 3(d)
	Deliver Document	 	Document Required to be Delivered	 	When Required	 	Representation
	Counterparty and
Seller

	 	Evidence of the authority and
true signatures of each official
or representative signing this
Confirmation
	 	Upon or before the
closing of the
Purchase Agreement
	 	Yes
	 
	 	 	 	 	 	 
	Counterparty

	 	Certified copy of the resolution
of the Board of Directors or
equivalent document authorizing
the execution and
	 	Upon or before the
closing of the
Purchase Agreement
	 	Yes

13

 

Execution Copy

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Covered by
	Party Required to	 	 	 	 	 	Section 3(d)
	Deliver Document	 	Document Required to be Delivered	 	When Required	 	Representation
	 

	 	delivery of
this Confirmation and such other
certificates as Seller shall
reasonably request	 	 	 	 
	 
	 	 	 	 	 	 
	Seller

	 	Guarantee of its Credit Support
Provider, substantially in the
form of Exhibit A attached
hereto, together with evidence
of the authority and true
signatures of the signatories,
if applicable
	 	Upon or before the
closing of the
Purchase Agreement
	 	Yes

Additional Notice Requirements. Counterparty hereby agrees to promptly deliver to Seller a copy of
all notices and other communications required or permitted to be given to the holders of any
Reference Notes pursuant to the terms of the Note Indenture on the dates so required or permitted
in the Note Indenture and all other notices given and other communications made by Counterparty in
respect of the Reference Notes to holders of any Reference Notes. Counterparty further covenants
to Seller that it shall promptly notify Seller of each Conversion Date, Amendment Event (including
in such notice a detailed description of any such amendment) and Repayment Event (identifying in
such notice the nature of such Repayment Event and the principal amount at maturity of Reference
Notes being paid).

Addresses
for Notices. For the purpose of Section 12(a) of the Agreement:

Address for notices or communications to Seller for all purposes:

	 	 	 	 	 
	 

	 	Address:
	 	Merrill Lynch International

Merrill Lynch Financial Centre

2 King Edward Street

London EC1A 1HQ
	 

	 	Attention:
	 	Manager, Fixed Income Settlements
	 

	 	Facsimile No.:
	 	44 207 995 2004
	 

	 	Telephone No.:
	 	44 207 995 3769

Additionally, a copy of all notices pursuant to Sections 5, 6, and 7 as
well as any changes to Counterparty’s address, telephone number or facsimile number should be sent
to:

	 	 	 	 	 
	 

	 	Address:
	 	GMI Counsel

Merrill Lynch World Headquarters

4 World Financial Center

New York, New York 10080
	 

	 	Attention:
	 	Global Equity Derivatives
	 

	 	Facsimile No.:
	 	(212) 449-6576
	 

	 	Telephone No.:
	 	(212) 449-6309

Address for notices or communications to Counterparty for all purposes:

	 	 	 	 	 
	 

	 	Address:
	 	General Cable Corporation

4 Tesseneer Drive

Highland Heights, KY 41076-9753
	 

	 	Attention:
	 	Brian J. Robinson

Senior Vice President, Controller and Treasurer
	 

	 	Telephone No.:
	 	(859) 572-8483
	 

	 	Facsimile No.:
	 	(859) 572-8441

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Execution Copy

	 	 	 	 	 
	 

	 	Address:
	 	General Cable Corporation

4 Tesseneer Drive

Highland Heights, KY 41076-9753
	 

	 	Attention:
	 	Robert J. Siverd

Executive Vice President, General Counsel and Secretary

Telephone No.: (859) 572-8890
	 

	 	Facsimile No.:
	 	(859) 572-8444

Process Agent. For the purpose of Section 13(c) of the Agreement, Seller appoints as its Process Agent:

	 	 	 	 	 
	 

	 	Address:
	 	Merrill Lynch, Pierce, Fenner & Smith Incorporated

222 Broadway, 16th Floor

New York, New York 10038
	 

	 	Attention:
	 	Litigation Department
	 
	 	 	 	 
	 	 	Counterparty does not appoint a Process Agent.

Multibranch Party. For the purpose of Section 10(c) of the Agreement: Neither Seller nor
Counterparty is a Multibranch Party.

Calculation Agent. The Calculation Agent is Seller. Upon the request of either party, the
Calculation Agent (or, in the case of a determination made by a party (including a party acting as
Hedging Party or Determining Party), such party) shall, no later than the 5th Business
Day following such request, provide the parties with a statement showing, in reasonable detail, the
computations (including any relevant quotations) by which it has determined any amount payable or
deliverable under, or any adjustment to the terms of, this Transaction. All judgments,
determinations and calculations hereunder by the Calculation Agent or by a party hereto shall be
performed in good faith and in a commercially reasonable manner.

Credit Support Document.

Seller: Guarantee of ML & Co. in the form attached hereto as Exhibit A.

Counterparty: Not Applicable.

Credit Support Provider.

With respect to Seller: ML & Co.

With respect to Counterparty: Not Applicable.

Governing Law. This Confirmation will be governed by, and construed in accordance with, the laws
of the State of New York.

Waiver of Jury Trial. Each party waives, to the fullest extent permitted by applicable law, any
right it may have to a trial by jury in respect of any suit, action or proceeding relating to this
Transaction. Each party (i) certifies that no representative, agent or attorney of the other party
has represented, expressly or otherwise, that such other party would not, in the event of such a
suit, action or proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and
the other party have been induced to enter into this Transaction, as applicable, by, among other
things, the mutual waivers and certifications provided herein.

Netting of Payments. The provisions of Section 2(c) of the Agreement shall not be
applicable to this Transaction.

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Execution Copy

Basic Representations. Section 3(a) of the Agreement is hereby amended by the deletion of
“and” at the end of Section 3(a)(iv); the substitution of a semicolon for the period at the
end of Section 3(a)(v) and the addition of Sections 3(a)(vi), as follows:

Eligible Contract Participant; Line of Business. Each party agrees and represents
that it is an “eligible contract participant” as defined in Section 1a(12) of the
U.S. Commodity Exchange Act, as amended (“CEA”), this Agreement and the
Transaction thereunder are subject to individual negotiation by the parties and have
not been executed or traded on a “trading facility” as defined in Section 1a(33) of
the CEA, and it has entered into this Confirmation and this Transaction in
connection with its business or a line of business (including financial
intermediation), or the financing of its business.

Acknowledgements:

	(a)	 	The parties acknowledge and agree that there are no other representations, agreements or
other undertakings of the parties in relation to this Transaction, except as set forth in this
Confirmation.
	 
	(b)	 	The parties hereto intend for:

	 	(i)	 	this Transaction to be a “securities contract” as defined in Section 741(7) of
Title 11 of the United States Code (the “Bankruptcy Code”), qualifying for the
protections under Section 555 of the Bankruptcy Code;
	 
	 	(ii)	 	a party’s right to liquidate this Transaction and to exercise any other
remedies upon the occurrence of any Event of Default under the Agreement with respect
to the other party to constitute a “contractual right” as defined in the Bankruptcy
Code;
	 
	 	(iii)	 	all payments for, under or in connection with this Transaction, all payments
for the Shares and the transfer of such Shares to constitute “settlement payments” as
defined in the Bankruptcy Code.

Amendment of Definition of Reference Market-Makers. The definition of “Reference Market-Makers” in
Section 14 is hereby amended by adding in clause (a) after the word “credit” and before the
word “and” the words “or to enter into transactions similar in nature to the Transaction.”

Consent to Recording. Each party consents to the recording of the telephone conversations of
trading and marketing personnel of the parties and their Affiliates in connection with this
Confirmation. To the extent that one party records telephone conversations (the “Recording
Party”) and the other party does not (the “Non-Recording Party”), the Recording Party
shall in the event of any dispute, make a complete and unedited copy of such party’s tape of the
entire day’s conversations with the Non-Recording Party’s personnel available to the Non-Recording
Party. The Recording Party’s tapes may be used by either party in any forum in which a dispute is
sought to be resolved and the Recording Party will retain tapes for a consistent period of time in
accordance with the Recording Party’s policy unless one party notifies the other that a particular
transaction is under review and warrants further retention.

Disclosure. Each party hereby acknowledges and agrees that Seller has authorized Counterparty to
disclose this Transaction and any related hedging transaction between the parties if and to the
extent that Counterparty reasonably determines (after consultation with Seller) that such
disclosure is required by law or by the rules of the New York Stock Exchange or any securities
exchange.

Severability. If any term, provision, covenant or condition of this Confirmation, or the
application thereof to any party or circumstance, shall be held to be invalid or unenforceable in
whole or in part for any reason, the remaining terms, provisions, covenants, and conditions hereof
shall continue in full force and effect as if this Confirmation had been executed with the invalid
or unenforceable provision eliminated, so long as this Confirmation as so modified continues to
express, without material change, the original intentions of the parties as to the subject matter
of this

16

 

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Confirmation and the deletion of such portion of this Confirmation will not substantially impair the respective
benefits or expectations of parties to this Agreement; provided, however, that this
severability provision shall not be applicable if any provision of Section 2, 5,
6 or 13 of the Agreement (or any definition or provision in Section 14 to
the extent that it relates to, or is used in or in connection with any such Section) shall be so
held to be invalid or unenforceable.

Affected Parties. For purposes of Section 6(e) of the Agreement, each party shall be
deemed to be an Affected Party in connection with Illegality and any Tax Event.

[Signatures follow on separate page]

17

 

Execution Copy

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing the
copy of this Confirmation enclosed for that purpose and returning it to us.

	 	 	 	 	 
	 	Very truly yours,

MERRILL LYNCH INTERNATIONAL

 	 
	 	By:  	/s/ Fran Jacobson
 	 
	 	Name:  	Fran Jacobson 	 
	 	Title:  	Authorized Signatory 	 
	 

	 	 	 	 	 	 	 
	Confirmed as of the date first above written:	 	 
	 
	 	 	 	 	 	 
	GENERAL CABLE CORPORATION	 	 
	 
	 	 	 	 	 	 
	By: 

Name:

	 	/s/ Robert J. Siverd
 

Robert J. Siverd
	 	 	 	 
	Title:	 	Executive Vice President, General Counsel
	 

	 	and Secretary	 	 	 	 
	 
	 	 	 	 	 	 
	Acknowledged and agreed as to matters to the Agent:	 	 
	 
	 	 	 	 	 	 
	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,	 	 
	Solely in its capacity as Agent hereunder	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Brian Carroll	 	 	 	 
	 

	 	 	 	 	 	 
	Name:

	 	Brian Carroll	 	 	 	 
	Title:

	 	Authorized Signatory	 	 	 	 

Additional OTC convertible Note Hedge

 

 

Execution copy

EXHIBIT A

GUARANTEE OF MERRILL LYNCH & CO., INC.

     FOR VALUE RECEIVED, receipt of which is hereby acknowledged, MERRILL LYNCH & CO., INC., a
corporation duly organized and existing under the laws of the State of Delaware (“ML & Co.”),
hereby unconditionally guarantees to General Cable Corporation (the “Company”), the due and
punctual payment of any and all amounts payable by Merrill Lynch International, a company organized
under the laws of England and Wales (“ML”), under the terms of the Confirmation of OTC Convertible
Note Hedge between the Company and ML (ML as Seller), dated as of November 15, 2006 (the
“Confirmation”), including, in case of default, interest on any amount due, when and as the same
shall become due and payable, whether on the scheduled payment dates, at maturity, upon declaration
of termination or otherwise, according to the terms thereof. In case of the failure of ML
punctually to make any such payment, ML & Co. hereby agrees to make such payment, or cause such
payment to be made, promptly upon demand made by the Company to ML & Co.; provided, however that
delay by the Company in giving such demand shall in no event affect ML & Co.’s obligations under
this Guarantee. This Guarantee shall remain in full force and effect or shall be reinstated (as
the case may be) if at any time any payment guaranteed hereunder, in whole or in part, is rescinded
or must otherwise be returned by the Company upon the insolvency, bankruptcy or reorganization of
ML or otherwise, all as though such payment had not been made.

     ML & Co. hereby agrees that its obligations hereunder shall be unconditional, irrespective of
the validity, regularity or enforceability of the Confirmation; the absence of any action to
enforce the same; any waiver or consent by the Company concerning any provisions thereof; the
rendering of any judgment against ML or any action to enforce the same; or any other circumstances
that might otherwise constitute a legal or equitable discharge of a guarantor or a defense of a
guarantor. ML covenants that this guarantee will not be discharged except by complete payment of
the amounts payable under the Confirmation. This Guarantee shall continue to be effective if ML
merges or consolidates with or into another entity, loses its separate legal identity or ceases to
exist.

     ML & Co. hereby waives diligence; presentment; protest; notice of protest, acceleration, and
dishonor; filing of claims with a court in the event of insolvency or bankruptcy of ML; all demands
whatsoever, except as noted in the first paragraph hereof; and any right to require a proceeding
first against ML.

     ML & Co. hereby certifies and warrants that this Guarantee constitutes the valid obligation of
ML & Co. and complies with all applicable laws.

     This Guarantee shall be governed by, and construed in accordance with, the laws of the State
of New York.

     This Guarantee may be terminated at any time by notice by ML & Co. to the Company given in
accordance with the notice provisions of the Confirmation, effective upon receipt of such notice by
the Company or such later date as may be specified in such notice; provided, however, that this
Guarantee shall continue in full force and effect with respect to any obligation of ML under the
Confirmation arising before or after such termination.

     This Guarantee becomes effective concurrent with the effectiveness of the Confirmation,
according to its terms.

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     IN WITNESS WHEREOF, ML & Co. has caused this Guarantee to be executed in its corporate name by
its duly authorized representative.

	 	 	 	 	 
	 	MERRILL LYNCH & CO., INC.

 	 
	 	By:  	/s/ Patricia Kroplewnicki
 	 
	 	 	Name:  	Patricia Kroplewnicki 	 
	 	 	Title:  
Date:	Designated Signatory
November 15, 2006

 
	 

20EX-10.8

 

Exhibit 10.8

Confirmation of Additional OTC Convertible Note Hedge

	 	 	 
	Date:

	 	November 15, 2006
	 
	 	 
	To:

	 	General Cable Corporation (“Counterparty”)
	 
	 	 
	From:

	 	Credit Suisse International (“Dealer”)
	 
	 	 
	Reference No.:

	 	9356472

Dear Sir / Madam:

     The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and
conditions of the above-referenced transaction entered into among Counterparty, Credit Suisse
International and Credit Suisse, New York branch (the “Agent”) on the Trade Date specified
below (the “Transaction”). This Confirmation constitutes a “Confirmation” as referred to
in the Agreement specified below.

     The definitions and provisions contained in the 2000 ISDA Definitions (the “Swap
Definitions”) and the 2002 ISDA Equity Derivatives Definitions (the “Equity
Definitions” and, together with the Swap Definitions, the “Definitions”), in each case
as published by the International Swaps and Derivatives Association, Inc., are incorporated into
this Confirmation. In the event of any inconsistency between the Swap Definitions and the Equity
Definitions, the Equity Definitions will govern, and in the event of any inconsistency between the
Definitions and this Confirmation, this Confirmation will govern. References herein to a
“Transaction” shall be deemed to be references to a “Share Option Transaction” for purposes of the
Equity Definitions and a “Swap Transaction” for the purposes of the Swap Definitions.

     This Confirmation evidences a complete binding agreement between you and us as to the terms of
the Transaction to which this Confirmation relates. This Confirmation (notwithstanding anything to
the contrary herein), shall be subject to, and form part of, an agreement in the 1992 form of the
ISDA Master Agreement (Multicurrency Cross Border) (the “Master Agreement” or
“Agreement”) as if we had executed an agreement in such form (but without any Schedule and
with elections specified in the “ISDA Master Agreement” Section of this Confirmation) on the Trade
Date. In the event of any inconsistency between the provisions of that agreement and this
Confirmation, this Confirmation will prevail for the purpose of this Transaction. The parties
hereby agree that the Transaction evidenced by this Confirmation shall be the only Transaction
subject to and governed by the Agreement.

     The terms of the particular Transaction to which this Confirmation relates are as follows:

General Terms:

	 	 	 
	Trade Date:

	 	November 15, 2006
	 
	 	 
	Effective Date:

	 	The date of issuance of the Reference Notes.
	 
	 	 
	Option Style:

	 	Modified American, as described under “Settlement Terms” below.
	 
	 	 
	Option Type:

	 	Call
	 
	 	 
	Seller:

	 	Dealer
	 
	 	 
	Buyer:

	 	Counterparty

 

 

	 	 	 
	Shares:

	 	The shares of common stock, $0.01 par value, of Counterparty (Security Symbol:
	 

	 	“BGC”) or such other securities or property into which the Reference Notes are
convertible on the date of determination.
	 
	 	 
	Premium:

	 	$2,103,600
	 
	 	 
	Premium Payment Date:

	 	The date of issuance of the Reference Notes.
	 
	 	 
	Exchange:

	 	New York Stock Exchange
	 
	 	 
	Related Exchange(s):

	 	All Exchanges
	 
	 	 
	Reference Notes:

	 	0.875% Convertible Notes of Counterparty due 2013 in the original amount of
U.S.$315,000,000.
	 
	 	 
	Applicable Portion of the
Reference Notes:

	 	
6/355 For the avoidance of doubt, the Calculation Agent shall, as it deems
necessary, take into account the Applicable Portion of the Reference Notes in
determining or calculating any delivery or payment obligations hereunder, whether
upon a Conversion Date (as defined below) or otherwise.
	 
	 	 
	Note Indenture:

	 	The indenture, dated as of closing of the issuance of the Reference Notes,
between Counterparty and U.S. Bank National Association, as trustee relating to
the Reference Notes, as the same may be amended, modified or supplemented.
Certain defined terms used herein have the meanings assigned to them in the Note
Indenture.
	 
	 	 
	Procedures for Exercise:
	 	 
	 
	 	 
	Potential Exercise Dates:

	 	Each Conversion Date.
	 
	 	 
	Conversion Date:

	 	Each “conversion date” for any Reference Note pursuant to the terms of the Note
Indenture (the principal amount of Reference Notes so converted, the “Conversion
Amount” with respect to such Conversion Date) occurring before the Expiration
Date.
	 
	 	 
	 

	 	If the Conversion Amount for any Conversion Date is less than the aggregate
principal amount of Reference Notes then outstanding, then the terms of this
Transaction shall continue to apply, subject to the terms and conditions set
forth herein, with respect to the remaining outstanding principal amount of the
Reference Notes multiplied by the Applicable Portion of the Reference Notes.
	 
	 	 
	Expiration Period:

	 	The period from and excluding the Trade Date to and including the Expiration Date.
	 
	 	 
	Expiration Date:

	 	The earliest of (i) the maturity date of the Reference Notes, (ii) the first day
on which none of such Reference Notes remain outstanding, whether by virtue of
conversion, issuer repurchase or otherwise and (iii) the occurrence of an
Additional Termination Event and designation of an Early Termination Date
hereunder in respect of the termination of the Transaction in whole but not in
part.
	 
	 	 
	Exercise Notice:

	 	Notwithstanding anything to the contrary in the Equity Definitions, in order to
exercise any Options hereunder, Buyer shall provide Seller with written notice
prior to 5:00 p.m. New York City time on the Exchange Business Day prior to

 

 

	 	 	 
	 

	 	the first Trading Day in the Conversion Reference Period (both as defined in
the Note Indenture) relating to the Reference Notes converted on the relevant
Conversion Date of (i) the number of Reference Notes being converted on the
relevant Conversion Date, (ii) the first Trading Day in the relevant
Conversion Reference Period for the Reference Notes and (iii) if any, the
applicable Cash Percentage (as defined in the Note Indenture); provided that
with respect to Reference Notes converted during the period beginning on
October 15, 2013 and ending on the business day immediately preceding the
Maturity Date (as defined in the Note Indenture) of the Reference Notes, the
related Exercise Notice shall be delivered prior to 5:00 p.m. New York City
time on such Maturity Date (as defined in the Note Indenture); and provided
further that the delivery by Buyer of an Exercise Notice after the Conversion
Reference Period has commenced but prior to the close of business on the fifth
Trading Day of such Conversion Reference Period shall be effective, in which
case the Settlement Method shall be Net Share Settlement but without regard to
subsection (ii) of the definition of Net Share Settlement and subject to
adjustments to the Net Share Settlement Amount as specified below.
	 
	 	 
	Seller’s Telephone Number
and Telex and/or Facsimile
Number and Contact Details
for purpose of Giving Notice:

	 	

Address: Credit Suisse, New York branch

Eleven Madison Avenue

New York, NY 10010-3629

Telephone: (212) 325 8676 / (212) 538 5306 / (212) 538 1193 / (212)
538 6886

Facsimile : (212) 325 8173
	 
	 	 
	Settlement Terms:
	 	 
	 
	 	 
	Settlement Method:

	 	Net Share Settlement or Net Cash Settlement
consistent with Buyer’s election with respect to the
Reference Notes converted on the applicable
Conversion Date, provided that Net Share Settlement
shall apply in the event that Buyer elects to
deliver any Shares in connection with the applicable
Conversion Date.
	 
	 	 
	Settlement Date:

	 	Subject to the delivery of an Exercise Notice to the
Seller, the third (3rd) Exchange Business
Day following the final Trading Day in the
applicable Conversion Reference Period in respect of
the relevant Conversion Date.
	 
	 	 
	Net Share Settlement:

	 	In lieu of the obligations set forth in Sections 8.1
and 9.1 of the Equity Definitions, Seller shall
deliver to Buyer on the related Settlement Date (i)
a number of Shares equal to the related Net Share
Settlement Amount, provided that in the event that
the number of Shares calculated comprises any
fractional Share, the number of Shares to be
delivered shall be rounded up or down to the nearest
integral number of Shares and (ii) (x) an amount in
cash equal to the cash amount, if any, paid by Buyer
in excess of the principal amount of the applicable
Reference Notes for such Conversion Date under the
Note Indenture multiplied by (y) the Applicable
Portion of the Reference Notes, provided that the
delivery obligation set forth in clause (i) and (ii)
of this paragraph shall be determined excluding any
Shares or cash that Counterparty is obligated to
deliver to holders of the applicable Reference Notes
as a result of any adjustments to the Conversion
Rate resulting from (i) an adjustment to the
Conversion Rate made pursuant to Section 4.12 of the
Note Indenture by Counterparty or (ii) an adjustment
to the Conversion Rate as a result of a Make Whole
Premium adjustment pursuant to Section 4.01(j) of
the Note Indenture. The provisions of Sections
9.1(c), 9.8, 9.9, 9.10, 9.11 and 9.12 of the Equity

 

 

	 	 	 
	 

	 	Definitions shall apply to any delivery of Shares hereunder, provided that the
Representation and Agreement in Section 9.11 of the Equity Definitions shall be
modified by excluding any representations therein relating to restrictions,
obligations, limitations or requirements under applicable securities laws
solely as a result of the fact that Buyer is the issuer of the Shares.
	 
	 	 
	Net Cash Settlement:

	 	In lieu of the obligations set forth in
Section 8.1 of the Equity Definitions, on the
Settlement Date Seller shall deliver to Buyer
an amount in cash equal to the related Net
Cash Settlement Amount.
	 
	 	 
	Net Share Settlement Amount:

	 	For each Conversion Date, the number of
Shares equal to the Shares delivered by Buyer
for such Conversion Date under the Note
Indenture multiplied by the Applicable
Portion of the Reference Notes, provided that
if an Exercise Notice with respect to such
Conversion Date has not been delivered to the
Seller prior to the first Trading Day of the
Conversion Reference Period applicable to
such Conversion Date, the Net Share
Settlement Amount for such Conversion Date
shall be adjusted by the Calculation Agent to
account for the reduced number of Trading
Days from the delivery of the Exercise Notice
to the end of the applicable Conversion
Reference Period with respect to such
Conversion Date. No reduction of the Net
Share Settlement Amount shall reduce the Net
Share Settlement Amount below zero.
	 
	 	 
	Net Cash Settlement Amount:

	 	For each Conversion Date, an amount equal to
the cash delivered by the Buyer in excess of
the principal amount of the applicable
Reference Notes for such Conversion Date
under the Note Indenture multiplied by the
Applicable Portion of the Reference Notes,
provided that such cash amount shall be
determined excluding any cash that
Counterparty is obligated to deliver to
holders of the applicable Reference Notes as
a result of any adjustments to the Conversion
Rate resulting from (i) an adjustment to the
Conversion Rate made pursuant to Section 4.12
of the Note Indenture by Counterparty or (ii)
an adjustment to the Conversion Rate as a
result of a Make Whole Premium adjustment
pursuant to Section 4.01(j) of the Note
Indenture.
	 
	 	 
	Adjustments:
	 	 
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment; provided that
the terms of this Transaction shall be
adjusted in a manner consistent with
adjustments of the Conversion Rate of the
Reference Notes as provided in the Note
Indenture; provided further (without
limitation of the provisions set forth above
under “Net Share Settlement” and “Net Cash
Settlement Amount”) that no adjustment in
respect of any Potential Adjustment Event or
Extraordinary Event shall be made hereunder
as a result of any adjustments to the
Conversion Rate resulting from (i) an
adjustment to the Conversion Rate made
pursuant to Section 4.12 of the Note
Indenture by Counterparty or (ii) an
adjustment to the Conversion Rate as a result
of a Make Whole Premium adjustment pursuant
to Section 4.01(j) of the Note Indenture.
	 
	 	 
	Potential Adjustment Event:

	 	Notwithstanding Section 11.2(e) of the Equity
Definitions, a “Potential Adjustment Event”
means the occurrence of an event or condition
that would result in an adjustment of the
Conversion Rate of the Reference Notes
pursuant to Section 4.06 of the Note
Indenture.

 

 

	 	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	Merger Events:

	 	Notwithstanding Section 12.1(b) of the Equity
Definitions, a “Merger Event” means the
occurrence of any event or condition set
forth in Section 4.10(a) of the Note
Indenture.
	 
	 	 
	Consequences for Merger Events:
	 	 
	 
	 	 
	     Share-for-Share:

	 	The Transaction will be adjusted consistent with the Reference Notes as
provided in the Note Indenture.
	 
	 	 
	     Share-for-Other:

	 	The Transaction will be adjusted consistent with the Reference Notes as
provided in the Note Indenture.
	 
	 	 
	     Share-for-Combined:

	 	The Transaction will be adjusted consistent with the Reference Notes as
provided in the Note Indenture.
	 
	 	 
	Tender Offer:

	 	Applicable, subject to “Consequences of
Tender Offers” below. Notwithstanding
Section 12.1(d) of the Equity Definitions,
a “Tender Offer” means the occurrence of
any event or condition set forth in Section
4.06(a)(7) of the Note Indenture.
	 
	 	 
	Consequences of Tender Offers:

	 	The Transaction will be adjusted consistent
with the Reference Notes as provided in the
Note Indenture.
	 
	 	 
	Nationalization, Insolvency
and Delisting:

	 	

Cancellation and Payment (Calculation Agent
Determination), provided Buyer shall
determine whether payment shall be settled
in cash or Shares. In addition to the
provisions of Section 12.6(a)(iii) of the
Equity Definitions, it will also constitute
a Delisting if the Exchange is located in
the United States and the Shares are not
immediately re-listed, re-traded or
re-quoted on any of the New York Stock
Exchange, the American Stock Exchange or
the NASDAQ National Market System (or their
respective successors, including without
limitation the NASDAQ Global Market and
NASDAQ Global Select Market); if the Shares
are immediately re-listed, re-traded or
re-quoted on any such exchange or quotation
system, such exchange or quotation system
shall thereafter be deemed to be the
Exchange.

	 	 	 
	Additional Disruption Events:
	 	 
	 
	 	 
	     Change in Law:

	 	Applicable
	 
	 	 
	     Failure to Deliver: 

	 	Applicable. If there is inability in the market to deliver Shares due
to illiquidity on a day that would have been a Settlement Date, then the Settlement
Date shall be the first succeeding Exchange Business Day on which there is no such
inability to deliver, but in no such event shall the Settlement Date be later than the
date that is two (2) Exchange Business Days immediately following what would have been
the Settlement Date but for such inability to deliver.
	 
	 	 
	     Insolvency Filing:

	 	Applicable
	 
	 	 
	     Hedging Disruption Event:

	 	Applicable

 

 

	 	 	 
	     Increased Cost of Hedging:

	 	Not Applicable
	 
	 	 
	     Loss of Stock Borrow:

	 	Not Applicable
	 
	 	 
	     Increased Cost of Stock Borrow:

	 	Not Applicable
	 
	 	 
	     Hedging Party:

	 	Seller
	 
	 	 
	     Determining Party:

	 	Seller
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and Acknowledgments
Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable

Additional Agreements, Representations and Covenants of Buyer, Etc.:

	1.	 	Buyer hereby represents and warrants to Seller, on each day from the Trade Date to and
including the earlier of (i) December 15, 2006 and (ii) the date by which Seller is able to
initially complete a hedge of its position relating to this Transaction, that:

	 	a.	 	it will effect (and cause any “affiliated purchaser” (as defined in Rule 10b-18
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) to effect) any purchases, direct or indirect (including by means of any
cash-settled or other derivative instrument), of Shares or any security convertible
into or exchangeable or exercisable for Shares solely through Agent in a manner that
would not cause any purchases by Seller of its hedge in connection with this
Transaction not to comply with applicable securities laws; provided that this clause
(a) shall not apply to any transactions in Shares effected directly between Buyer and
its employees pursuant to an employee share incentive or benefit plan;
	 
	 	b.	 	it will not engage in, or be engaged in, any “distribution,” as such term is
defined in Regulation M promulgated under the Exchange Act, other than a distribution
meeting the requirements of the exceptions set forth in sections 101(b)(10) and
102(b)(7) of Regulation M (it being understood that Buyer makes no representation
pursuant to this clause in respect of any action or inaction taken by Seller or any
Underwriter of the Reference Notes); and
	 
	 	c.	 	Buyer has publicly disclosed all material information necessary for Buyer to be
able to purchase or sell Shares in compliance with applicable federal securities laws
and that it has publicly disclosed all material information with respect to its
condition (financial or otherwise).

	2.	 	If Buyer would be obligated to pay cash to, or receive cash from, Seller pursuant to the
terms of this Agreement for any reason without having had the right (other than pursuant to
this paragraph (2)) to elect to deliver or receive Shares in satisfaction of such payment
obligation, then Buyer may elect that such payment obligation shall be satisfied by the
delivery of a number of Shares (or, if the Shares have been converted into other securities or
property in connection with an Extraordinary Event, a number or amount of such other
securities or property as a holder of Shares would be entitled to receive upon the
consummation or closing of such Extraordinary Event) having a cash value equal to the amount
of such payment obligation (such number or amount of Shares or other securities or property to
be delivered to be determined by the Calculation Agent as the number of Shares or number or
amount of such other securities or property that could be purchased or sold, as applicable, by
Seller over a reasonable period of time for the cash equivalent of such payment obligation).
Settlement relating to any delivery of Shares or other securities or property pursuant to this
paragraph (2) shall occur within a reasonable period of time.

 

 

	3.	 	Notwithstanding any provision in the Note Indenture, this Confirmation or the Agreement to
the contrary, each of the “applicable Conversion Rate” (as such term is used in the Note
Indenture), the Net Share Settlement Amount, the Net Cash Settlement Amount and any other
amount computed hereunder by reference to the applicable Conversion Rate shall be determined
without regard to any adjustments to the Conversion Rate made pursuant to Section 4.12 of the
Note Indenture or as a result of a Make Whole Premium adjustment pursuant to Section 4.01(j)
of the Note Indenture.
	 
	4.	 	Notwithstanding Section 6(e) of the Agreement or Sections 12.7 or 12.8 of the Equity
Definitions, if, with respect to the Transaction contemplated hereunder, (A) an Early
Termination Date with respect to any Event of Default or any Termination Event, (B) a Closing
Date with respect to an event described in Section 12.6 of the Equity Definitions, or (C) a
date as of which the Transaction is, or is deemed to have been, terminated or cancelled as a
result of an applicable Additional Disruption Event (any such date, the “Relevant Date”) shall
occur, then in lieu of any payments hereunder pursuant to Sections 6(d)(ii) and 6(e) of the
Agreement or Sections 12.7 or 12.8 of the Equity Definitions, as applicable, (if a calculation
under such sections would otherwise be required) the Calculation Agent shall determine the
number of Shares deliverable by Dealer to Counterparty on the following basis and the
following provisions shall apply:
	 
	 	 	(i) such Relevant Date shall be the sole Exercise Date hereunder and Automatic Exercise
shall be applicable;
	 
	 	 	(ii) the Settlement Method shall be Net Share Settlement and the provisions set forth above
under “Net Share Settlement” shall apply (but without regard to subsection (ii) thereof, or
any right of the Counterparty to elect to deliver cash in lieu of Remaining Shares pursuant
to Section 4.13(b) of the Note Indenture, or any requirement of Counterparty to deliver an
Exercise Notice) as if a Conversion Date had occurred, the Conversion Amount were the
aggregate principal amount of the Reference Notes then outstanding, and the Remaining Shares
were equal to (X) the excess, if any, of (a) the VWAP Price on the Relevant Date multiplied
by the applicable Conversion Rate over (b) $1,000; divided by (Y) the VWAP Price on the
Relevant Date; provided that, if the Shares have been converted into other
securities or property in connection with an Extraordinary Event, Seller may deliver a
number or amount of such other securities or property as a holder of the number of Shares
that would otherwise be deliverable under this paragraph would be entitled to receive upon
the consummation or closing of such Extraordinary Event. “VWAP Price” means, on any
date, the per Share volume-weighted average price as displayed under the heading “Bloomberg
VWAP” on Bloomberg page BGC equity> VAP (or any successor thereto) in respect of the
period from 9:45 a.m. to 3:45 p.m. (New York City time) on such date (or if such
volume-weighted average price is unavailable, the market value of one Share (or, if
applicable, the value per Share of the consideration paid or delivered to holders of Shares
at the time of an Extraordinary Event) on such date, as determined by the Calculation
Agent); and
	 
	 	 	(iii) the Settlement Date shall be the date that falls one Settlement Cycle following the
Relevant Date.
	 
	5.	 	Counterparty is not, and after giving effect to the Transaction contemplated hereby, will not
be, an “investment company” as such term is defined in the Investment Company Act of 1940, as
amended.
	 
	6.	 	As of the Trade Date and each date on which a payment or delivery is made by Counterparty
hereunder, (i) the assets of Counterparty at their fair valuation exceed the liabilities of
Counterparty, including contingent liabilities; (ii) the capital of Counterparty is adequate
to conduct its business; and (iii) Counterparty has the ability to pay its debts and other
obligations as such obligations mature and does not intend to, or believe that it will, incur
debt or other obligations beyond its ability to pay as such obligations mature.

 

 

Additional Termination Events:

               The occurrence of any of the following shall be an Additional Termination Event for purposes
of this Transaction:

	1.	 	Amendment Event. If an Amendment Event (as defined below) occurs, Dealer shall have the
right to designate an Early Termination Date pursuant to Section 6(b) of the Agreement and,
notwithstanding anything to the contrary herein, no payments shall be required under this
Agreement in connection with such Amendment Event.
	 
	 	 	“Amendment Event” means that the Counterparty, without the prior consent of
Seller, amends, modifies, supplements or obtains a waiver of (a) any term of the Note
Indenture or the Reference Notes relating to the principal amount, coupon, maturity or
repurchase obligation of the Counterparty, (b) any material term relating to conversion of
the Reference Notes (including changes to the conversion price, conversion settlement dates
or conversion conditions) or (c) any term that would require consent of the holders of 100%
of the principal amount of the Reference Notes to amend;
	 
	2.	 	Repayment Event. If a Repayment Event (as defined below) occurs, Dealer shall have the right
to designate an Early Termination Date pursuant to Section 6(b) of the Agreement with respect
to this Transaction to the extent of the principal amount of Reference Notes that cease to be
outstanding as a result of such Repayment Event and, notwithstanding anything to the contrary
herein, no payments shall be required under this Agreement in connection with such Repayment
Event.
	 
	 	 	“Repayment Event” means that (a) any Reference Notes are repurchased (whether in
connection with or as a result of a change of control, howsoever defined, or for any other
reason other than as a result of or in connection with a conversion) by the Counterparty,
(b) any Reference Notes are delivered to the Counterparty in exchange for delivery of any
property or assets of the Counterparty or any of its subsidiaries (howsoever described),
other than as a result of and in connection with a Conversion Date, (c) any principal of any
of the Reference Notes is repaid prior to the Final Maturity Date (as defined in the Note
Indenture) (whether following acceleration of the Reference Notes or otherwise), provided
that no payments of cash made in respect of the conversion of a Reference Note shall be
deemed a payment of principal under this clause (c), (d) any Reference Notes are exchanged
by or for the benefit of the holders thereof for any other securities of the Counterparty or
any of its Affiliates (or any other property, or any combination thereof) pursuant to any
exchange offer or similar transaction or (e) any of the Reference Notes is surrendered by
Counterparty to the trustee for cancellation, other than registration of a transfer of such
Reference Notes or as a result of and in connection with a Conversion Date; or

Staggered Settlement:

If Seller determines reasonably and in good faith that the number of Shares required to be
delivered to Buyer hereunder on any Settlement Date would exceed 8.0% of all outstanding Shares,
then Seller may, by notice to Buyer on or prior to such Settlement Date (a “Nominal Settlement
Date”), elect to deliver the Shares comprising the related Net Share Settlement Amount on two
or more dates (each, a “Staggered Settlement Date”) or at two or more times on the Nominal
Settlement Date as follows:

	1.	 	in such notice, Seller will specify to Buyer the related Staggered Settlement Dates (the
first of which will be such Nominal Settlement Date and the last of which will be no later
than twenty (20) Trading Days following such Nominal Settlement Date) or delivery times and
how it will allocate the Shares it is required to deliver hereunder among the Staggered
Settlement Dates or delivery times;
	 
	2.	 	the aggregate number of Shares that Seller will deliver to Buyer hereunder on all such
Staggered Settlement Dates or delivery times will equal the number of Shares that Seller would
otherwise be required to deliver on such Nominal Settlement Date; and

 

 

	3.	 	the Net Share Settlement terms will apply on each Staggered Settlement Date, except that the
Shares comprising the Net Share Settlement Amount will be allocated among such Staggered
Settlement Dates or delivery times as specified by Seller in the notice referred to in clause
(1) above.

Notwithstanding anything herein to the contrary, solely in connection with a Staggered Settlement
Date, Seller shall be entitled to deliver Shares to Buyer from time to time prior to the date on
which Seller would be obligated to deliver them to Buyer pursuant to Net Share Settlement terms set
forth above, and Buyer agrees to credit all such early deliveries against Seller’s obligations
hereunder in the direct order in which such obligations arise. No such early delivery of Shares
will accelerate or otherwise affect any of Buyer’s obligations to Seller hereunder.

Disposition of Hedge Shares:

Seller shall conduct its hedging activities in connection with the Transaction in a manner that it
believes, based on its reasonable judgment, will not require Counterparty to register under the
Securities Act or any state securities laws the Shares (the “Hedge Shares”) acquired by
Seller for the purpose of hedging its obligations pursuant to the Transaction. In addition,
Counterparty hereby agrees that if, in the reasonable judgment of Seller based on advice of
counsel, the Hedge Shares cannot be sold in the U.S. public market by Seller without registration
under the Securities Act, Counterparty shall, at its election: (i) in order to allow Seller to sell
the Hedge Shares in a registered offering, use commercially reasonable efforts to make available to
Seller an effective registration statement under the Securities Act to cover the resale of such
Hedge Shares and (a) enter into an agreement, in form and substance satisfactory to Seller and
Counterparty, substantially in the form of an underwriting agreement for a registered offering, (b)
provide accountant’s “comfort” letters in customary form for registered offerings of equity
securities, (c) provide disclosure opinions of nationally recognized outside counsel to
Counterparty reasonably acceptable to Seller, (d) provide other customary opinions, certificates
and closing documents customary in form for registered offerings of equity securities and (e)
afford Seller a reasonable opportunity to conduct a “due diligence” investigation with respect to
Counterparty customary in scope for underwritten offerings of equity securities registered for
resale; provided, however, that if Seller, in its sole reasonable discretion, is not satisfied with
access to due diligence materials, the results of its due diligence investigation, or the
procedures and documentation for the registered offering referred to above, then clause (ii) of
this Section shall apply; or (ii) in order to allow Seller to sell the Hedge Shares in a private
placement, enter into a private placement agreement substantially similar to private placement
purchase agreements customary for private placements of equity securities by a publicly reporting
company (if Counterparty is a publicly reporting company at such time) to institutional purchasers,
in form and substance satisfactory to Seller and Counterparty, including reasonable and customary
representations, covenants, blue sky and other governmental filings and/or registrations,
indemnities to Seller, due diligence rights (for Seller or any designated buyer of the Hedge Shares
from Seller), opinions and certificates and such other documentation as is customary for private
placements agreements, all reasonably acceptable to Seller (in which case, the Calculation Agent
shall make any adjustments to the terms of the Transaction that it determines are necessary to
reflect an appropriate discount from the public market price of the Shares due to the lack of
liquidity thereof).

Repurchase Notices:

Counterparty shall, on any day on which Counterparty effects any repurchase of Shares, promptly
give Seller a written notice of such repurchase (a “Repurchase Notice”) on such day if
following such repurchase, the Notice Percentage as determined on such day is (i) greater than 6%
and (ii) greater by 0.5% than the Notice Percentage included in the immediately preceding
Repurchase Notice (or, in the case of the first such Repurchase Notice, greater than the Notice
Percentage as of the date hereof). In the event that Counterparty fails to provide Seller with a
Repurchase Notice on the day and in the manner specified in this section, then Counterparty agrees
to indemnify and hold harmless Seller, its affiliates and their respective directors, officers,
employees, agents and controlling persons (Seller and each such person being an “Indemnified
Party”) from and against any and all losses, claims, damages and liabilities (or actions in
respect thereof), joint or several, to which such Indemnified Party may become subject under
applicable securities laws, including without limitation, Section 16 of the Exchange Act, relating
to or arising out of such failure. If for any reason the foregoing indemnification is unavailable
to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then Counterparty
shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the
Indemnified Party as a result of such loss, claim, damage or liability. In addition, Counterparty
will reimburse any Indemnified Party for all reasonable and documented expenses (including
reasonable counsel fees and expenses) as they are incurred (after notice to Counterparty) in

 

 

connection with the investigation of, preparation for or defense or settlement of any pending or
threatened claim or any action, suit or proceeding arising therefrom, whether or not such
Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding is
initiated or brought by or on behalf of Counterparty. This indemnity shall survive the completion
of the Transaction contemplated by this Confirmation and any assignment and delegation of the
Transaction made pursuant to this Confirmation or the Agreement shall inure to the benefit of any
permitted assignee of Seller. Counterparty will not be liable under this Indemnity provision to
the extent that any loss, claim, damage, liability or expense is found in a final judgment by a
court to have resulted from Dealer’s gross negligence or willful misconduct. The “Notice
Percentage” as of any day is the fraction, expressed as a percentage, (i) the numerator of
which is the product of (a) 15% of the number of outstanding Reference Notes and (b) the number of
Shares per Reference Note equal to the Conversion Rate (as defined in the Note Indenture) and (ii)
the denominator of which is the number of Shares outstanding on such day. The parties agree that
the Confirmation of the OTC Convertible Note Hedge between Counterparty and Dealer dated as of
November 9, 2006 is hereby amended so that the term “Notice Percentage” as used therein shall refer
to the fraction specified in the definition of “Notice Percentage” in the preceding sentence.

	 	 	 
	Compliance with Securities Laws:

	 	Each party represents and agrees that,
in connection with this Transaction
and all related or contemporaneous
sales and purchases of Shares by
either party, Buyer, or in the case of
Seller, the person(s) that directly
influences the specific trading
decisions of Seller, has complied and
will comply with the applicable
provisions of the Securities Act of
1933, as amended (the “Securities
Act”), and the Exchange Act, and the
rules and regulations each thereunder,
including, without limitation, Rules
10b-5, 10b-18 and 13e and Regulation M
under the Exchange Act; provided that
each party shall be entitled to rely
conclusively on any information
communicated by the other party
concerning such other party’s market
activities.
	 
	 	 
	 

	 	Each party acknowledges that the offer
and sale of the Transaction to it is
intended to be exempt from
registration under the Securities Act
by virtue of Section 4(2) thereof.
Accordingly, Buyer represents and
warrants to Seller that (i) it has the
financial ability to bear the economic
risk of its investment in the
Transaction and is able to bear a
total loss of its investment, (ii) it
is an “accredited investor” as that
term is defined in Regulation D as
promulgated under the Securities Act
and (iii) the disposition of the
Transaction is restricted under this
Confirmation, the Securities Act and
state securities laws.
	 
	 	 
	 

	 	Buyer further represents:
	 

	 	
(a) Buyer is not entering into this
Transaction to create actual or
apparent trading activity in the
Shares (or any security convertible
into or exchangeable for Shares) or to
raise or depress or otherwise
manipulate the price of the Shares (or
any security convertible into or
exchangeable for Shares);
(b) Buyer acknowledges that as of the
date hereof and without limiting the
generality of Section 13.1 of the
Equity Definitions, Seller is not
making any representations or
warranties with respect to the
treatment of the Transaction under
FASB Statements 149 or 150, EITF Issue
No. 00-19 (or any successor issue
statements) or under FASB’s
Liabilities & Equity Project.

	 	 	 	 	 
	Account Details:

	 	Account for payments to Buyer:
	 	PNC Bank, Ohio, N.A.

201 East Fifth Street

Cincinnati, Ohio 45201

ABA Number: 042000398

Account Name: General Cable Corporation

Account Number: 4074093412

SWIFT: PNCCUS33

 

 

	 	 	 	 	 
	 

	 	Account for deliveries to Buyer:
	 	To be advised
	 
	 	 	 	 
	 	 	Account for payments and deliveries to Seller:       To be advised
	 
	 	 	 	 

	 	 	 
	Bankruptcy Rights:

	 	In the event of Buyer’s bankruptcy, Seller’s rights in connection with this Transaction shall not exceed those
rights held by common shareholders. For the avoidance of doubt, the parties acknowledge and agree that
Seller’s rights with respect to any other claim arising from this Transaction prior to Buyer’s bankruptcy
shall remain in full force and effect and shall not be otherwise abridged or modified in connection herewith.
	 
	 	 
	Set-Off:

	 	Each party waives any and all rights it may have to set-off, whether arising under any agreement, applicable
law or otherwise.
	 
	 	 
	Collateral:

	 	None.
	 
	 	 
	Transfer:

	 	Buyer shall have the right to assign its rights and delegate its obligations hereunder with respect to any
portion of this Transaction, subject to Seller’s consent, such consent not to be unreasonably withheld;
provided that such assignment or transfer shall be subject to receipt by Seller of opinions and documents
reasonably satisfactory to Seller and effected on terms reasonably satisfactory to the Seller with respect to
any legal and regulatory requirements relevant to the Seller; provided further that Buyer shall not be
released from its obligation to deliver a Exercise Notice. If, as determined in Seller’s sole discretion, (i)
its “beneficial ownership” (within the meaning of Section 13 of the Exchange Act and rules promulgated
thereunder) could be deemed to exceed 8% of Counterparty’s outstanding Shares or (ii) the quotient of (x) the
product of (a) the Number of Options and (b) the Option Entitlement divided by (y) the number of
Counterparty’s outstanding Shares (such quotient expressed as a percentage, the “Option Equity Percentage”)
exceeds 9%, Seller may, without Counterparty’s consent, transfer or assign all or any part of its rights or
obligations under this Transaction to reduce such “beneficial ownership” to 7.5% or such Option Equity
Percentage to 8.5% to any third party with a rating for its (or, if applicable, its Credit Support Provider’s)
long term, unsecured and unsubordinated indebtedness of A- or better by Standard & Poor’s Ratings Service or
its successor (“S&P”), or A3 or better by Moody’s Investors Service (“Moody’s”) or, if either S&P or Moody’s
ceases to rate such debt, at least an equivalent rating or better by a substitute rating agency mutually
agreed by Company and Seller. If after Seller’s commercially reasonable efforts, Seller is unable to effect
such a transfer or assignment on pricing terms reasonably acceptable to Seller and within a time period
reasonably acceptable to Seller of a sufficient number of Options to reduce (i) Seller’s “beneficial
ownership” (within the meaning of Section 13 of the Exchange Act and rules promulgated thereunder) to 7.5% of
Counterparty’s outstanding Shares or less or (ii) the Option Equity Percentage to 8.5% or less, Seller may
designate any Exchange Business Day as an Early Termination Date with respect to a portion (the “Terminated
Portion”) of this Transaction, such that (i) its “beneficial ownership” following such partial termination
will be equal to or less than 7.5% or (ii) the Option Equity Percentage following such partial termination
will be equal to or less than 8.5%. In the event that Seller so designates an Early Termination Date with
respect to a portion of this Transaction, the provisions set forth above under paragraph 4 of “Additional
Agreements, Representations and Covenants of Buyer, Etc.” shall apply in lieu of Section 6(d)(ii) and 6(e) of
the Agreement as if (i) an Early Termination Date had been designated in respect of a Transaction having terms
identical to this Transaction and a Number of Options equal to the Terminated Portion and (ii) such
Transaction were the only Terminated Transaction. In circumstances in which the foregoing provisions relating
to Seller’s right to transfer or assign its rights or obligations under the Transaction are not applicable,
Seller may transfer any of its rights or delegate its obligations under this Transaction with the prior
written consent of Buyer, which consent shall not be unreasonably withheld.

 

 

Role of Agent:

	(a)	 	Credit Suisse, New York branch, in its capacity as Agent will be responsible for (A)
effecting this Transaction, (B) issuing all required confirmations and statements to Dealer
and Counterparty, (C) maintaining books and records relating to this Transaction in accordance
with its standard practices and procedures and in accordance with applicable law and (D)
unless otherwise requested by Counterparty, receiving, delivering, and safeguarding
Counterparty’s funds and any securities in connection with this Transaction, in accordance
with its standard practices and procedures and in accordance with applicable law.

	 	(i)	 	Agent is acting in connection with this Transaction solely in its capacity as
Agent for Dealer and Counterparty pursuant to instructions from Dealer and
Counterparty. Agent shall have no responsibility or personal liability to Dealer or
Counterparty arising from any failure by Dealer or Counterparty to pay or perform any
obligations hereunder, or to monitor or enforce compliance by Dealer or Counterparty
with any obligation hereunder, including, without limitation, any obligations to
maintain collateral. Each of Dealer and Counterparty agrees to proceed solely against
the other to collect or recover any securities or monies owing to it in connection with
or as a result of this Transaction. Agent shall otherwise have no liability in respect
of this Transaction, except for its gross negligence or willful misconduct in
performing its duties as Agent.
	 
	 	(ii)	 	Any and all notices, demands, or communications of any kind relating to this
Transaction between Dealer and Counterparty shall be transmitted exclusively through
Agent at the following address:
	 
	 	 	 	Credit Suisse, New York branch

Eleven Madison Avenue

New York, NY 10010-3629
	 
	 	 	 	For payments and deliveries:

Facsimile No.: (212) 325 8175

Telephone No.: (212) 325 8678 / (212) 325 3213
	 
	 	 	 	For all other communications:

Facsimile No.: (212) 325 8173

Telephone No.: (212) 325 8676 / (212) 538 5306 / (212) 538 1193 / (212) 538 6886
	 
	 	(iii)	 	The date and time of the Transaction evidenced hereby will be furnished by the
Agent to Dealer and Counterparty upon written request.
	 
	 	(iv)	 	The Agent will furnish to Counterparty upon written request a statement as to
the source and amount of any remuneration received or to be received by the Agent in
connection with the Transaction evidenced hereby.
	 
	 	(v)	 	Dealer and Counterparty each represents and agrees (A) that this Transaction is
not unsuitable for it in the light of such party’s financial situation, investment
objectives and needs and (B) that it is entering into this Transaction in reliance upon
such tax, accounting, regulatory, legal and financial advice as it deems necessary and
not upon any view expressed by the other or the Agent.
	 
	 	(vi)	 	Dealer is regulated by The Securities and Futures Authority and has entered
into this Transaction as principal. The time at which this Transaction was executed
will be notified to Counterparty (through the Agent) on request.

ISDA Master Agreement:

With respect to the Agreement, Seller and Counterparty each agree as follows:

“Specified Entity” means in relation to Seller and in relation to Counterparty for purposes of this
Transaction: Not applicable.

Notwithstanding the definition in Section 14 of the Agreement, “Specified Transaction” shall mean
only the OTC Convertible Note Hedge pursuant to the Confirmation between Counterparty and Dealer
dated as of November 9, 2006.

 

 

The “Cross Default” provisions of Section 5(a)(vi) of the Agreement will not apply to
Seller and will not apply to Counterparty.

The “Credit Event Upon Merger” provisions of Section 5(b)(iv) of the Agreement will not
apply to Seller and Counterparty.

The “Automatic Early Termination” provision of Section 6(a) of the Agreement will not apply
to Seller or to Counterparty.

Payments on Early Termination. For the purpose of Section 6(e) of the Agreement: (i) Loss
shall apply; and (ii) the Second Method shall apply.

“Termination Currency” means USD.

Tax Representations.

	(a)	 	Payer Representations. For the purpose of Section 3(e) of the Agreement, each party
represents to the other party that it is not required by any applicable law, as modified by
the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to
make any deduction or withholding for or on account of any Tax from any payment (other than
interest under Section 2(e), 6(d)(ii), or 6(e) of the Agreement) to be made by it to the other
party under the Agreement. In making this representation, each party may rely on (i) the
accuracy of any representations made by the other party pursuant to Section 3(f) of the
Agreement, (ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of
the Agreement, and the accuracy and effectiveness of any document provided by the other party
pursuant to Section 4(a)(i) or 4(a)(iii) of the Agreement, and (iii) the satisfaction of the
agreement of the other party contained in Section 4(d) of the Agreement; provided that it will
not be a breach of this representation where reliance is placed on clause (ii) above and the
other party does not deliver a form or document under Section 4(a)(iii) of the Agreement by
reason of material prejudice to its legal or commercial position.
	 
	(b)	 	Payee Representations. For the purpose of Section 3(f) of the Agreement, each party makes
the following representations to the other party:

	 	(i)	 	Seller represents that it is a corporation organized under the laws of England
and Wales.
	 
	 	(ii)	 	Counterparty represents that it is a corporation incorporated in Delaware.

Delivery Requirements. For the purpose of Sections 4(a)(i) and (ii) of the
Agreement, each party agrees to deliver the following documents:

	(a)	 	Tax forms, documents or certificates to be delivered are:
	 
	 	 	Each party agrees to complete (accurately and in a manner reasonably satisfactory to the
other party), execute, and deliver to the other party, United States Internal Revenue
Service Form W-9 or W-8 BEN, or any successor of such form(s): (i) before the first payment
date under this agreement; (ii) promptly upon reasonable demand by the other party; and
(iii) promptly upon learning that any such form(s) previously provided by the other party
has become obsolete or incorrect.

 

 

	(b)	 	Other documents to be delivered:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Covered by
	Party Required to	 	 	 	 	 	Section3(d)
	Deliver Document	 	Document Required to be Delivered	 	When Required	 	Representation
	Counterparty and
Seller

	 	Evidence of the authority and
true signatures of each official
or representative signing this
Confirmation
	 	Upon or before the
closing of the
Purchase Agreement
	 	Yes
	 
	 	 	 	 	 	 
	Counterparty

	 	Certified copy of the resolution
of the Board of Directors or
equivalent document authorizing
the execution and delivery of
this Confirmation and such other
certificates as Seller shall
reasonably request
	 	Upon or before
closing of the
Purchase Agreement
	 	Yes

Additional Notice Requirements. Counterparty hereby agrees to promptly deliver to Seller a copy of
all notices and other communications required or permitted to be given to the holders of any
Reference Notes pursuant to the terms of the Note Indenture on the dates so required or permitted
in the Note Indenture and all other notices given and other communications made by Counterparty in
respect of the Reference Notes to holders of any Reference Notes. Counterparty further covenants
to Seller that it shall promptly notify Seller of each Conversion Date, Amendment Event (including
in such notice a detailed description of any such amendment) and Repayment Event (identifying in
such notice the nature of such Repayment Event and the principal amount at maturity of Reference
Notes being paid).

Addresses for Notices. For the purpose of Section 12(a) of the Agreement:

Address for notices or communications to Seller for all purposes:

	 	 	 	 	 
	 

	 	Address:
	 	Credit Suisse, New York branch
	 

	 	 	 	Eleven Madison Avenue
	 

	 	 	 	New York, NY 10010-3629
	 

	 	Telephone No.:
	 	(212) 325 8676 / (212) 538 5306 / (212) 538 1193 / (212) 538 6886
	 

	 	Facsimile No.:
	 	(212) 325 8173

Address for notices or communications to Counterparty for all purposes:

	 	 	 	 	 
	 

	 	Address:
	 	General Cable Corporation
	 

	 	 	 	4 Tesseneer Drive
	 

	 	 	 	Highland Heights, KY 41076-9753
	 

	 	Attention:
	 	Brian J. Robinson
	 

	 	 	 	Senior Vice President, Controller and Treasurer
	 

	 	Telephone No.:
	 	(859) 572-8483
	 

	 	Facsimile No.:
	 	(859) 572-8441
	 
	 

	 	Address:
	 	General Cable Corporation
	 

	 	 	 	Executive Vice President,
	 

	 	 	 	General Counsel and Secretary
	 

	 	 	 	4 Tesseneer Drive
	 

	 	 	 	Highland Heights, KY 41076-9753
	 

	 	Attention:
	 	Robert J. Siverd
	 

	 	Telephone No.:
	 	(859) 572-8890
	 

	 	Facsimile No.:
	 	(859) 572-8444

 

 

Process Agent.    Seller does not appoint a Process Agent.

Counterparty does not appoint a Process Agent.

Multibranch Party. For the purpose of Section 10(c) of the Agreement: Neither Seller nor
Counterparty is a Multibranch Party.

Offices. The office of Dealer for Transactions hereunder is:

Credit Suisse International

One Cabot Square

London E14 4QJ

England

Calculation Agent. The Calculation Agent is Seller. Upon the request of either party, the
Calculation Agent (or, in the case of a determination made by a party (including a party acting as
Hedging Party or Determining Party), such party) shall, no later than the 5th Business
Day following such request, provide the parties with a statement showing, in reasonable detail, the
computations (including any relevant quotations) by which it has determined any amount payable or
deliverable under, or any adjustment to the terms of, this Transaction. All judgments,
determinations and calculations hereunder by the Calculation Agent or by a party hereto shall be
performed in good faith and in a commercially reasonable manner.

Credit Support Document.

Seller : Not Applicable.

Counterparty: Not Applicable.

Credit Support Provider.

With respect to Seller: Not Applicable.

With respect to Counterparty: Not Applicable.

Governing Law. This Confirmation will be governed by, and construed in accordance with, the laws
of the State of New York.

Waiver of Jury Trial. Each party waives, to the fullest extent permitted by applicable law, any
right it may have to a trial by jury in respect of any suit, action or proceeding relating to this
Transaction. Each party (i) certifies that no representative, agent or attorney of the other party
has represented, expressly or otherwise, that such other party would not, in the event of such a
suit, action or proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and
the other party have been induced to enter into this Transaction, as applicable, by, among other
things, the mutual waivers and certifications provided herein.

Netting of Payments. The provisions of Section 2(c) of the Agreement shall not be
applicable to this Transaction.

Basic Representations. Section 3(a) of the Agreement is hereby amended by the deletion of
“and” at the end of Section 3(a)(iv); the substitution of a semicolon for the period at the
end of Section 3(a)(v) and the addition of Sections 3(a)(vi), as follows:

Eligible Contract Participant; Line of Business. Each party agrees and represents
that it is an “eligible contract participant” 
as defined in Section 1a(12) of the
U.S. Commodity Exchange Act,

 

 

as amended (“CEA”), this Agreement and the Transaction thereunder are
subject to individual negotiation by the parties and have not been executed or
traded on a “trading facility” as defined in Section 1a(33) of the CEA, and it has
entered into this Confirmation and this Transaction in connection with its business
or a line of business (including financial intermediation), or the financing of its
business.

Acknowledgements:

	(a)	 	The parties acknowledge and agree that there are no other representations, agreements or
other undertakings of the parties in relation to this Transaction, except as set forth in this
Confirmation.
	 
	(b)	 	The parties hereto intend for:

	 	(i)	 	this Transaction to be a “securities contract” as defined in Section 741(7) of
Title 11 of the United States Code (the “Bankruptcy Code”), qualifying for the
protections under Section 555 of the Bankruptcy Code;
	 
	 	(ii)	 	a party’s right to liquidate this Transaction and to exercise any other
remedies upon the occurrence of any Event of Default under the Agreement with respect
to the other party to constitute a “contractual right” as defined in the Bankruptcy
Code;
	 
	 	(iii)	 	all payments for, under or in connection with this Transaction, all payments
for the Shares and the transfer of such Shares to constitute “settlement payments” as
defined in the Bankruptcy Code.

Amendment of Definition of Reference Market-Makers. The definition of “Reference Market-Makers” in
Section 14 is hereby amended by adding in clause (a) after the word “credit” and before the
word “and” the words “or to enter into transactions similar in nature to the Transaction.”

Consent to Recording. Each party consents to the recording of the telephone conversations of
trading and marketing personnel of the parties and their Affiliates in connection with this
Confirmation. To the extent that one party records telephone conversations (the “Recording
Party”) and the other party does not (the “Non-Recording Party”), the Recording Party
shall in the event of any dispute, make a complete and unedited copy of such party’s tape of the
entire day’s conversations with the Non-Recording Party’s personnel available to the Non-Recording
Party. The Recording Party’s tapes may be used by either party in any forum in which a dispute is
sought to be resolved and the Recording Party will retain tapes for a consistent period of time in
accordance with the Recording Party’s policy unless one party notifies the other that a particular
transaction is under review and warrants further retention.

Disclosure. Each party hereby acknowledges and agrees that Seller has authorized Counterparty to
disclose this Transaction and any related hedging transaction between the parties if and to the
extent that Counterparty reasonably determines (after consultation with Seller) that such
disclosure is required by law or by the rules of the New York Stock Exchange or any securities
exchange.

Severability. If any term, provision, covenant or condition of this Confirmation, or the
application thereof to any party or circumstance, shall be held to be invalid or unenforceable in
whole or in part for any reason, the remaining terms, provisions, covenants, and conditions hereof
shall continue in full force and effect as if this Confirmation had been executed with the invalid
or unenforceable provision eliminated, so long as this Confirmation as so modified continues to
express, without material change, the original intentions of the parties as to the subject matter
of this Confirmation and the deletion of such portion of this Confirmation will not substantially
impair the respective benefits or expectations of parties to this Agreement; provided,
however, that this severability provision shall not be applicable if any provision of
Section 2, 5, 6 or 13 of the Agreement (or any definition or
provision in Section 14 to the extent that it relates to, or is used in or in connection
with any such Section) shall be so held to be invalid or unenforceable.

 

 

Affected Parties. For purposes of Section 6(e) of the Agreement, each party shall be
deemed to be an Affected Party in connection with Illegality and any Tax Event.

[Signatures follow on separate page]

 

 

     Counterparty hereby agrees (a) to check this Confirmation carefully and immediately upon
receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm
that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the
agreement between Dealer and Counterparty with respect to the Transaction, by manually signing this
Confirmation or this page hereof as evidence of agreement to such terms and providing the other
information requested herein and immediately returning an executed copy to Credit Suisse, New York
branch, Eleven Madison Avenue, New York, NY 10010-3629, Facsimile No. (212) 325-8173.

	 	 	 	 	 
	 	Yours faithfully,

CREDIT SUISSE INTERNATIONAL

By Its agent: CREDIT SUISSE SECURITIES (USA) LLC

 	 
	 	By:  	/s/ Melissa Garcia
 	 
	 	 	Name:  	Melissa Garcia 	 
	 	 	Title:  	Assistant Vice President

Complex Product Support 	 
	 
	 	 	 
	 	By:  	                  /s/ Antony Fisher
 	 
	 	 	Name:  	Antony Fisher 	 
	 	 	Title:  	Vice President

Complex Product Support 	 
	 
	 	CREDIT SUISSE, NEW YORK BRANCH,

	 
	 	 	
AS AGENT FOR CREDIT SUISSE
 INTERNATIONAL

 	 
	 	By:  	/s/ Antony Fisher
 	 
	 	 	Name:  	Antony Fisher 	 
	 	 	Title:  	Vice President

Complex Product Support 	 
	 
	 	 	 
	 	By:  	                                                             /s/ Melissa Garcia
 	 
	 	 	Name:  	Melissa Garcia 	 
	 	 	Title:  	Assistant Vice President

Complex Product Support 	 
	 

Agreed and Accepted By:

GENERAL CABLE CORPORATION

	 	 	 	 	 	 	 
	By:	 	/s/ Robert J. Siverd	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Robert J. Siverd	 	 
	 

	 	Title:
	 	Executive Vice President, General Counsel

and Secretary	 	 

Additional OTC Convertible Note Hedge

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