EXHIBIT 10.42


 


    


 


November 20, 2008


 


 


Mr. Don L. Canterna


13515 Ballantyne
Corporate Place


Charlotte, NC 28277


 


Dear Don:


 


SPX Corporation (the “Company”) recognizes that your contribution to
its growth and success will be substantial and desires to assure your continued
employment.  In this regard, the Board of
Directors of the Company (the “Board”) recognizes that, as is the case with
many publicly held corporations, the possibility of a Change of Control (as
defined in Section 2, below) may exist and that such possibility, and the
uncertainty and questions which it may raise among management, may result in
the departure or distraction of management personnel to the detriment of the
Company and its shareholders.


 


The Board has determined that appropriate steps should be taken to
reinforce and encourage the continued attention and dedication of members of
the Company’s management, including yourself, to their assigned duties without
distraction, in the face of potentially disturbing circumstances arising from
the possibility of a Change of Control.


 


Further, it is the intent of the Board in adopting this agreement,
originally agreed to December 21, 2005 (the “Commencement Date”), and as
amended and restated herein (the “Agreement”) to assure the Company and its
shareholders (i) of continuity of management in the event of any actual or
threatened Change of Control and (ii) that key executive employees of the
Company will be able to evaluate objectively whether a potential Change of
Control is in the best interests of the shareholders.


 


In order to induce you to remain in the employ of the Company and to
advance the interests of the Company and its shareholders by providing you with
appropriate financial protection, the Board agrees that you shall receive the
severance benefits set forth in this Agreement in the event that your
employment is terminated due to a Change of Control as specifically provided in the remainder of
this Agreement.  For purposes of this
Agreement, your employment with the Company shall be deemed to be terminated
when you have a “Separation from Service” within the meaning of Section 409A
of the Internal Revenue Code of 1986 (the “Code”), and references to your
termination of employment shall be deemed to refer to a Separation from Service.


 













 


Executive Change of
Control Agreement


Don L. Canterna


Page 2


 


1.        Term of Agreement.  This Agreement will become effective on the
date hereof, and shall continue in effect through the third anniversary of the
Commencement Date (the “Date of Expiration”). 
However, on that initial Date of Expiration, and on each extended Date
of Expiration thereafter, the term of this Agreement will be extended
automatically for one additional year unless, not later than six (6) months
prior to such Date of Expiration, the Company gives written notice to you that
it has elected not to extend this Agreement. 
However, if a Change of Control occurs during the term of this
Agreement, this Agreement will continue in effect for thirty-six (36) months
beyond the end of the month in which the Change of Control occurred.


 


2.        Change of Control of
the Company.  No benefits will be
payable under the terms of this Agreement unless a Change of Control of the
Company has occurred.  A “Change of
Control” shall be deemed to have occurred if:


 


(a)       Any “Person” (as defined
below), excluding for this purpose the Company or any subsidiary of the
Company, any employee benefit plan of the Company or of any subsidiary of the
Company, or any entity organized, appointed or established for or pursuant to
the terms of any such plan which acquires beneficial ownership of common shares
of the Company, is or becomes the “Beneficial Owner” (as defined below) of
twenty percent (20%) or more of the common shares of the Company then
outstanding; provided, however, that no Change of Control shall be deemed to
have occurred as the result of an acquisition of common shares of the Company
by the Company which, by reducing the number of shares outstanding, increases
the proportionate beneficial ownership interest of any Person to twenty percent
(20%) or more of the common shares of the Company then outstanding, but any
subsequent increase in the beneficial ownership interest of such a Person in
common shares of the Company shall be deemed a Change of Control; and provided
further that if the Board of Directors of the Company determines in good faith
that a Person who has become the Beneficial Owner of common shares of the
Company representing twenty percent (20%) or more of the common shares of the
Company then outstanding has inadvertently reached that level of ownership
interest, and if such Person divests as promptly as practicable a sufficient
number of shares of the Company so that the Person no longer has a beneficial
ownership interest in twenty percent (20%) or more of the common shares of the
Company then outstanding, then no Change of Control shall be deemed to have
occurred.  For purposes of this paragraph
(a), the following terms shall have the meanings set forth below:


 


(i)       “Person” shall mean any
individual, firm, limited liability company, corporation or other entity, and
shall include any successor (by merger or otherwise) of any such entity.


 













 


Executive Change of
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Don L. Canterna


Page 3


 


(ii)       “Affiliate” and “Associate”
shall have the respective meanings ascribed to such terms in Rule 12b-2 of
the General Rules and Regulations under the Securities Exchange Act of
1934, as amended (the “Exchange Act”).


 


(iii)      A Person shall be deemed the
“Beneficial Owner” of and shall be deemed to “beneficially own” any securities:


 


(A)      which such Person or any of
such Person’s Affiliates or Associates beneficially owns, directly or
indirectly (determined as provided in Rule 13d-3 under the Exchange Act);


 


(B)      which such Person or any of
such Person’s Affiliates or Associates has (1) the right to acquire
(whether such right is exercisable immediately or only after the passage of
time) pursuant to any agreement, arrangement or understanding (other than
customary agreements with and between underwriters and selling group members
with respect to a bona fide public offering of
securities), or upon the exercise of conversion rights, exchange rights,
rights, warrants or options, or otherwise; provided, however, that a Person
shall not be deemed the Beneficial Owner of, or to beneficially own, securities
tendered pursuant to a tender or exchange offer made by or on behalf of such
Person or any of such Person’s Affiliates or Associates until such tendered
securities are accepted for purchase or exchange; or (2) the right to vote
pursuant to any agreement, arrangement or understanding; provided, however,
that a Person shall not be deemed the Beneficial Owner of, or to beneficially
own, any security if the agreement, arrangement or understanding to vote such
security (a) arises solely from a revocable proxy or consent given to such
Person in response to a public proxy or consent solicitation made pursuant to,
and in accordance with, the applicable rules and regulations promulgated
under the Exchange Act and (b) is not also then reportable on Schedule 13D
under the Exchange Act (or any comparable or successor report); or


 


(C)      which are beneficially
owned, directly or indirectly, by any other Person with which such Person or
any of such Person’s Affiliates or Associates has any agreement, arrangement or
understanding (other than customary agreements with and between underwriters
and selling group members with respect to a bona fide
public offering of securities) for the purpose of acquiring, holding, voting
(except to the


 













 


Executive Change of
Control Agreement


Don L. Canterna


Page 4


 


extent contemplated by the proviso to subparagraph
(a)(iii)(B)(2), above) or disposing of any securities of the Company.


 


Notwithstanding anything in this definition of
Beneficial Ownership to the contrary, the phrase “then outstanding,” when used
with reference to a Person’s beneficial ownership of securities of the Company,
shall mean the number of such securities then issued and outstanding together
with the number of such securities not then actually issued and outstanding
which such Person would be deemed to own beneficially hereunder.


 


(b)       During any period of two (2) consecutive
years (not including any period prior to the execution of this Agreement),
individuals who at the beginning of such two-year period constitute the Board
of Directors of the Company and any new director or directors (except for any
director designated by a person who has entered into an agreement with the
Company to effect a transaction described in paragraph (a), above, or paragraph
(c), below) whose election by the Board or nomination for election by the
Company’s shareholders was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the beginning of
the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute at least a majority of the Board;
or


 


(c)       Approval by the
shareholders of (or if such approval is not required, the consummation of) (i) a
plan of complete liquidation of the Company, (ii) an agreement for the
sale or disposition of the Company or all or substantially all of the Company’s
assets, (iii) a plan of merger or consolidation of the Company with any
other corporation, or (iv) a similar transaction or series of transactions
involving the Company (any transaction described in parts (i) through (iv) of
this paragraph (c) being referred to as a “Business Combination”), in each
case unless after such a Business Combination the shareholders of the Company
immediately prior to the Business Combination continue to own at least eighty
percent (80%) of the voting securities of the new (or continued) entity
immediately after such Business Combination, in substantially the same
proportion as their ownership of the Company immediately prior to such Business
Combination.


 


Any other provision of this Agreement to the contrary
notwithstanding, a “Change of Control” shall not include any transaction
described in paragraph (a) or (c), above, where, in connection with such
transaction, you and/or any party acting in concert with you substantially
increase your, his or its, as the case may be, ownership interest in the
Company or a successor to the Company (other than through conversion of prior
ownership interests in the Company and/or through equity awards received
entirely as compensation for past or future personal services).


 













 


Executive Change of
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Don L. Canterna


Page 5


 


3.        Definitions.  The following definitions shall be used in
determining whether, under the terms of Section 4 hereof, you are entitled
to receive Accrued Benefits and/or Severance Benefits:


 


(a)       Disability.  “Disability” shall mean that, as a result of
your incapacity due to physical or mental injury or illness, you shall have
been absent from the full-time performance of your duties with the Company for
at least six (6) consecutive months and, within thirty (30) calendar days
after written notice of suspension is given, you shall not have returned to the
full-time performance of your duties.


 


(b)       Retirement.  “Retirement” shall mean your voluntary
termination of your employment (other than for Good Reason, as defined below)
at a time after you have reached age sixty-five (65).


 


(c)       Cause.  “Cause” shall mean (i) your willful and
continued failure to substantially perform your duties with the Company (other
than any such failure resulting from Disability or occurring after issuance by
you of a Notice of Termination for Good Reason), after a demand for substantial
performance is delivered to you that specifically identifies the manner in
which the Company believes that you have not substantially performed your
duties, and after you have failed to resume substantial performance of your
duties on a continuous basis within fourteen (14) calendar days after receiving
such demand, (ii) you willfully engage in conduct which is demonstrably
and materially injurious to the Company, monetarily or otherwise, or (iii) your
having been convicted of a felony which impairs your ability substantially to
perform your duties with the Company. 
For purposes of this paragraph (c), no act, or failure to act, on your
part shall be deemed “willful” unless done, or omitted to be done, by you not
in good faith and without reasonable belief that your action or omission was in
the best interest of the Company.


 


(d)       Good
Reason.  You shall be entitled to
terminate your employment for Good Reason. 
For purpose of this Agreement, “Good Reason” shall mean, without your
express written consent, the occurrence within three (3) years following a
Change of Control of the Company of any one or more of the following:


 


(i)       The
assignment to you of duties inconsistent with your duties, responsibilities,
and the status of your position as of the day prior to the Change of Control of
the Company, or a reduction or alteration in the nature or status of your
responsibilities from those in effect on the day prior to the Change of
Control;


 













 


Executive Change of
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Don L. Canterna


Page 6


 


(ii)       A
reduction by the Company in your base salary or in your most recent annual
target incentive award opportunity as in effect on the date hereof or as the
same shall be increased from time to time;


 


(iii)      The
Company’s requiring you to be based at a location in excess of two hundred and
fifty (250) miles from the location where you are currently based;


 


(iv)      The
failure by the Company to continue in effect the Company’s Pension Plan,
Retirement Savings Plan, Supplemental Retirement Savings Plan, Supplemental
Retirement Plan, Executive Bonus Plan, Stock Compensation Plan, any plans
substituted for the above adopted prior to the Change of Control, or any other
of the Company’s employee benefit plans, policies, practices or arrangements in
which you participate, unless an equitable arrangement (embodied in an ongoing
substitute or alternative plan) to provide similar benefits has been made with
respect to such plan(s); or the failure by the Company to continue your
participation therein (or in such substitute or alternative plan) on
substantially the same basis, both in terms of the amount of benefits provided
and the level of your participation relative to other participants, as existed
as of the time of the Change of Control;


 


(v)       The
failure of the Company to reinstate your employment in full (in the same
capacity that you were employed, or in a mutually agreeable capacity) in the
event that your employment was suspended due to a Disability and, within three
years, you request to be reinstated and are ready, willing, and able to adequately
perform your employment duties;


 


(vi)      The
termination, replacement, or reassignment of twenty-five percent (25%) or more
of the elected officers of the Company existing as of the day prior to a Change
of Control, unless the officer is terminated due to death, Disability, or
Retirement, or by the Company for Cause, or by the officer other than for Good
Reason (all as herein defined);


 


(vii)     The
failure of the Company to obtain a satisfactory agreement from any successor to
the Company to assume and agree to perform this Agreement, as contemplated in Section 5
hereof; and


 


(viii)     Any
purported termination by the Company of your employment that is not effected
pursuant to a Notice of Termination satisfying the requirements of paragraph
(f), below, and for purposes of this Agreement, no such purported termination
shall be effective.


 













 


Executive Change of
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Don L. Canterna


Page 7


 


(ix)      At
any time during the one (1) year period beginning thirty (30) days
following a Change of Control, you shall be entitled to terminate your
employment for any reason, and such termination shall be deemed to be for Good
Reason for all purposes of this Agreement.


 


Your right to terminate your employment pursuant to
this paragraph (d) shall not be affected by your suspension due to
Disability.  Your continued employment
shall not constitute a waiver of your rights with respect to any circumstance
constituting Good Reason hereunder.


 


(e)       Notice
of Termination.  Any termination by
the Company for Cause or by you for Good Reason shall be communicated by Notice
of Termination to the other party hereto. 
For purposes of this Agreement, a “Notice of Termination” shall mean a
written notice which shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of your employment
under the provisions so indicated.


 


(f)       Date
of Termination.  “Date of Termination”
shall mean the date specified in the Notice of Termination where required (but
not less than thirty (30) calendar days following delivery of the Notice of
Termination, except that termination for Cause may be effective immediately) or
in any other case upon ceasing to perform services to the Company; provided
that if within twenty (20) calendar days after any Notice of Termination one
party notifies the other party that a dispute exists concerning the
termination, the Date of Termination shall be the date finally determined to be
the Date of Termination, either by written agreement of the parties or by a
binding and final arbitration decision. 
In the event that a dispute exists concerning the Date of Termination,
you shall continue to receive your full compensation (including participation
in all benefit and insurance plans in which you were participating) in effect
when the notice giving rise to the dispute was given, until the Date of
Termination is finally determined.  In
such event, you will be required to reimburse the Company for all compensation
received beyond the finally determined Date of Termination either by direct
cash reimbursement within thirty (30) calendar days of resolving the conflict
or by appropriately reducing your remaining benefits to be received under the
terms of this Agreement.


 


(g)       Earned
Bonus Amount.  For any year prior to the year during which a
Change of Control occurs, your “Earned Bonus Amount” means your actual bonus
for that year.  For the year during which
a Change of Control occurs, your “Earned Bonus Amount” means your total
potential bonus for the year as determined under the 2005 


 













 


Executive Change of
Control Agreement


Don L. Canterna


Page 8


 


Executive Bonus Plan or
applicable successor bonus plan (the “Bonus Plan”), according to the business
performance metric achieved, and prorated to reflect your length of service
during the Bonus Plan year.


 


4.        Compensation
Upon Termination Following a Change of Control.


 


(a)       Accrued
Benefits.  In the event that your
employment is terminated for any reason during the term of this Agreement,
following a Change of Control of the Company (as defined in Section 2
herein), you shall receive your Accrued Benefits through the Date of
Termination.  For purposes of this
Agreement, your “Accrued Benefits” shall include the following:


 


(i)       All
base salary for the time period ending with your Date of Termination, at the
rate in effect at the time Notice of Termination is given or on the Date of
Termination if no Notice of Termination is required;


 


(ii)       A
bonus payment equal to one hundred percent (100%) of the greater of (A) your
target bonus for the year in which the Date of Termination occurs, prorated
based upon the ratio of the number of months (full credit for a partial month)
you were employed during that bonus year to the total months in that bonus
year, and (B) your Earned Bonus Amount for the year in which the Date of
Termination occurs, calculated as if the Date of Termination were the end of
that year for purposes of the Bonus Plan;


 


(iii)      A
cash equivalent of all unused vacation to which you were entitled through your
Date of Termination;


 


(iv)      Reimbursement
for any and all monies advanced in connection with your employment for
reasonable and necessary expenses incurred by you on behalf of the Company for
the time period ending with your Date of Termination;


 


(v)       Any
and all other cash earned through the Date of Termination and deferred at your
election or pursuant to any deferred compensation plan then in effect;


 


(vi)      An
accrued benefit under the SPX Corporation Supplemental Retirement Plan for Top
Management (the “SERP”);


 


(vii)     All
other amounts to which you are entitled under any compensation or benefit plan,
program, practice or policy of the Company in effect as of the Date of
Termination; and


 













 


Executive Change of
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Don L. Canterna


Page 9


 


(viii)     Subject
ot Section 4(e), the payments provided for in paragraphs (i), (ii), (iii),
(iv), and (v) above in a lump sum
cash payment as soon as administratively practicable (but in no event more than
ten (10) days) following your termination of employment.  If the total amount of annual bonus is not
determinable on that date, the Company shall pay the amount of bonus that is
determinable and the remainder shall be paid in a lump sum cash payment at the
time such bonuses are paid generally and in all events within the two and
one-half (21⁄2) months following the end of the calendar year in which the bonus
is earned.


 


(b)       Severance
Benefits.  In the event that your
employment is terminated during the term of this Agreement following a Change
of Control of the Company (as described in Section 2 herein), unless your
termination is (i) because of your death, Disability, or Retirement; (ii) by
the Company for Cause; or (iii) by you other than for Good Reason, you
shall receive, in addition to your Accrued Benefits, the Severance
Benefits.  For purposes of this
Agreement, your “Severance Benefits” shall include the following:


 


(i)       Your
annual base salary at the rate in effect immediately prior to the Change of
Control of the Company or, if greater, at the rate in effect at the time Notice
of Termination is given, or on the Date of Termination if no Notice of
Termination is required, multiplied by two (2);


 


(ii)       An
amount equal to two (2) times the greatest of (I) the highest of your
Earned Bonus Amounts for the three (3) years immediately preceding the
year in which the Date of Termination occurs (the “Year of Termination”) or (II) your
target bonus under the Bonus Plan for the Year of Termination or (III) your
Earned Bonus Amount for the Year of Termination, calculated as if the Date of
Termination were the end of that year for purposes of the Bonus Plan;


 


(iii)      For
a two (2) year period after your Date of Termination, the Company will
arrange to provide to you the same health care coverage you had prior to your
termination, at the Company’s expense, which includes, but is not limited to,
hospital, surgical, medical, dental, and dependent coverages.  For purposes of the Retirement Plan health
care coverage, you will receive the same number of additional years of credited
service, for computing your benefit, as normally computed under the terms of
the Plan.  Health care benefits otherwise
receivable by you pursuant to this subparagraph (iii) shall be reduced to
the extent comparable benefits are actually received by you from a subsequent
employer during the two (2) year period following your Date of 


 













 


Executive Change of
Control Agreement


Don L. Canterna


Page 10


 


Termination, and any such benefits actually received
by you shall be reported to the Company. 
To the extent the
provision of health care benefits receivable by you pursuant to this
subparagraph (iii) extends beyond the COBRA continuation period, such
benefits will be provided in accordance with the requirements of Code Section 409A
and Treasury Regulation §1.409A-3(i)(1)(iv) (or any similar or successor
provisions);


 


(iv)      For
a two (2) year period after your Date of Termination, the Company will
arrange to provide to you, at the Company’s expense, life insurance coverage in
the amount of two (2) times your base salary in effect at your Date of
Termination and, at the end of the two (2) year period, for the remainder
of your life the Company will provide to you life insurance coverage in the
amount of your base salary in effect at your Date of Termination, provided that such coverage will be provided
in accordance with the requirements of Code Section 409A and Treasury
Regulation §1.409A-3(i)(1)(iv) (or any similar or successor provisions);


 


(v)       Under
the Company’s Pension Plan and Supplemental Retirement Plan for Top Management,
you will receive immediate full vesting as of your Date of Termination and
receive two (2) additional full years of service credit for computing your
accrued retirement benefit under both plans. Further, in computing the accrued
retirement benefits under both plans, two (2) years will be added to your
actual age, and the definition of “Final Average Pay” (base and bonus) shall be
the greater of (A) your highest three (3) year average or (B) the
sum of your actual base salary in effect at your Date of Termination plus the
greatest of the bonus amounts described in parts (B)(I), (II) and (III) of
subparagraph (ii), above, with the additional benefits, to the extent not
payable under the Pension Plan, to be paid as an additional benefit under the
Supplemental Retirement Plan for Top Management;


 


(vi)      Under
the Company’s Supplemental Retirement Savings Plan (the “SRSP”), you will
receive a cash lump sum payment of the full balance (vested and unvested) of
your Pre-2005 Account (as defined in the SRSP);


 


(vii)     Each
stock option which you have been granted by the Company and which is not yet
vested shall become immediately vested and exercisable and shall continue to be
exercisable for the lesser of (A) two (2) years following your Date
of Termination or (B) the time remaining until the originally designated
expiration date, unless a longer exercise period is provided for in the
applicable plan or award agreement;










 


Executive Change of
Control Agreement


Don L. Canterna


Page 11


 


(viii)    Any contractual restrictions placed on shares of
restricted stock or other equity basd compensation awards which you have been
awarded pursuant to the Company’s Stock Compensation Plan shall lapse as of
your Date of Termination;


 


(ix)      If any portion of the Severance Payments (in the
aggregate, “Total Payments”) will be subject to the golden parachute “Excise
Tax” imposed by Section 4999 of the Code, the Company shall pay to you an
additional amount (the “Gross-Up Payment”) such that the net amount retained by
you after deduction of any Excise Tax (including any related penalties and
interest) on the Total Payments (but not any federal, state, or local income
tax on the Total Payments), and any federal, state, and local income tax and
Excise Tax (including any related penalties and interest) on the Gross-Up
Payment, shall be equal to the Total Payments. 
The determination of whether any Excise Tax will be imposed and of the
amount of the Gross-Up Payment will be made by tax counsel selected by the
Company’s independent auditors and acceptable to you. For purposes of
determining whether any of the Total Payments will be subject to the Excise Tax
and the amount of such Excise Tax, (A) any other payments or benefit
received or to be received by you in connection with a Change of Control of the
Company or your termination of employment (whether pursuant to the terms of
this Agreement or any other plan, arrangement, or agreement with the Company) shall
be treated as “parachute payments” within the meaning of Section 280G(b)(2) of
the Code, and all “excess parachute payments” within the meaning of Section 280G(b)(1) shall
be treated as subject to the Excise Tax, unless in the opinion of such tax counsel
such other payments or benefits (in whole or in part) do not constitute
parachute payments, or such excess parachute payments (in whole or in part)
represent reasonable compensation for services actually rendered within the
meaning of Section 280G(b)(4)(B) of the Code, and (B) the value
of any noncash benefits or any deferred payment or benefit shall be determined
by the Company’s independent auditors in accordance with the principles of
Sections 280G(d)(3) and (4) of the Code.  For purposes of determining the amount of the
Gross-Up Payment, you shall be deemed to pay federal income taxes at the
highest marginal rate of federal income taxation for the calendar year in which
the Gross-Up Payment is made and state and local income taxes at the highest marginal
rates of taxation in the state and locality of your residence (at the time at
which the Gross-Up Payment is made) as effective for the calendar year in which
the Gross-Up Payment is made, net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes.


 













 


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Control Agreement


Don L. Canterna


Page 12


 


The payments provided for in this subparagraph (ix) shall
be made not later than thirty (30) calendar days following your Date of
Termination; provided, however, that if the amounts of such payments cannot be
finally determined on or before such day, the Company shall pay to you on such
day an estimate, as determined in good faith by such tax counsel, of the
minimum amount of such payments and shall pay the remainder of such payments
(together with interest at the rate provided in Section 1274(b)(2)(B) of
the Code) as soon as the amount thereof can be determined but in no event later
than sixty (60) calendar days after your Date of Termination.  In the event that the amount of the estimated
payment exceeds the amount subsequently determined to have been due, such
excess shall be repaid as soon as practicable after demand by the Company.  Notwithstanding the foregoing, the sixty (60)
day period for deferment of the Gross-Up Payment shall not preempt or otherwise
eliminate your right to receive any other payments to which you are entitled
under this subparagraph or otherwise under the terms of this Agreement and to
receive additional Gross-Up Payments based on such additional payments pursuant
to this subparagraph;


 


(x)       To the full extent
permitted by law, the Company shall indemnify you (including the advancement of
expenses) for any judgments, fines, amounts paid in settlement and reasonable
expenses, including attorneys’ fees, incurred by you in connection with the
defense of any lawsuit or other claim to which you are made a party by reason
of being or having been an officer, director or employee of the Company or any
of its subsidiaries.  In addition, you
will be covered by director and officer liability insurance to the maximum
extent that such insurance maintained by the Company from time to time covers
any officer or director (or former officer or director) of the Company.  Any costs and expenses that are to be paid or
reimbursed pursuant to the preceding provisions of this paragraph (x) shall
be reimbursed in accordance with the requirements of Section 409A and
Treasury Regulation § 1.409A-3(i)(1)(iv) (or
any similar or successor provisions).


 


(xi)      You will be entitled to
receive outplacement services, at the expense of the Company, from a provider
reasonably selected by you. Such
outplacement services must be incurred by you no later than the end of the
calendar year that includes the second anniversary of the termination of your
employment.  If applicable, reimbursement
of such expenses shall be made to you no later than the end of the calendar
year that includes the third anniversary of the termination of your employment.


 













 


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Don L. Canterna


Page 13


 


(xii)     The Company also shall pay to
you all legal fees and expenses incurred by you as a result of such termination
of employment (including all such fees and expenses, if any, incurred in
contesting or disputing any such termination or in seeking to obtain or enforce
any right or benefit provided by this Agreement or in connection with any tax
audit or proceeding to the extent attributable to the application of Section 4999
of the Code to any payment or benefit provided hereunder) provided that such fees and expenses that are
to be paid or reimbursed pursuant to the preceding provisions of this paragraph
(xii) shall be reimbursed in accordance with the requirements of Section 409A
and Treasury Regulation §1.409A-3(i)(1)(iv) (or any similar or successor
provisions); and


 


(xiii)     The payments provided in
paragraphs (i), (ii), (v) if a lump sum has been  elected previously in accordance with the
terms of the applicable plan, (vi) and (xii) above shall be made in a lump sum cash payment as soon as
administratively practicable (but in no event more than ten (10) days)
following your termination of employment. 
If the total amount of annual bonus is not determinable on that date,
the Company shall pay the amount
of bonus that is determinable and the remainder shall be paid in a lump sum
cash payment at the time such bonuses are paid generally and in all events
within the two and one-half (21⁄2) months following the end of the calendar year
in which the bonus is earned.  As
all of the payments referenced in the first sentence of this subparagraph
(xiii) are included for purposes of determining the Gross-Up Payment, the
thirty (30)-day period identified above shall not preempt or otherwise
eliminate your right to receive any other payments to which you are entitled
under the terms of this Agreement and to receive additional Gross-Up Payments
based on such additional payments.


 


(c)                                Any
provision in this Agreement to the contrary notwithstanding, if a Change of
Control occurs and if your employment with the Company is terminated within six
(6) months prior to the date on which the Change of Control occurs, and if
you reasonably demonstrate that such termination of employment (i) was at
the request of a third party who has taken steps reasonably calculated to
effect the Change of Control, (ii) otherwise arose in connection with or
anticipation of the Change of Control, or (iii) would not have occurred or
would be less likely to have occurred if the Change of Control were not
anticipated, then for all purposes of this Agreement the termination of your
employment shall be deemed to have occurred following the Change of Control.


 


(d)                               You
shall not be required to mitigate the amount of any payment provided for in
this Section 4 by seeking other employment or otherwise, nor shall the
amount of any 


 













 


Executive Change of
Control Agreement


Don L. Canterna


Page 14


 


payment provided for in this Section 4 be reduced by any
compensation earned by you as the result of employment by another employer
after your Date of Termination, or otherwise, with the exception of a reduction
in your insurance benefits as provided in Section 4(b)(iii).


 


(e)                                If, at the time you become entitled to your
Accrued Benefits and your Severance Benefits under this Section 4, you are
a “specified employee” (as defined under Section 409A), then,
notwithstanding any other provision in this Agreement to the contrary, the
following provisions shall apply.


 


(i)       None of
your Accrued Benefits and Severance Benefits considered deferred compensation
under Section 409A and not subject to an exception or exemption thereunder
shall be paid to you until the date that is six (6) months after your
termination or, if earlier, the date of your death (the “Six Month Delay Rule”).
Any such Accrued Benefits and Severance Benefits that would otherwise have been
paid to you during this six-month period (the “Six Month Delay”) shall instead
be aggregated and paid to you no later than ten (10) days following the
date that is six (6) months after your termination (together with interest
at the interest credit rate provided in the SPX Corporation Individual Account
Retirement Plan).  Any Accrued Benefits
and Severance Benefits to which you are entitled to be paid under this Section 4
after the date that is six (6) months after your termination shall be paid
to you in accordance with the applicable terms of Section 4.


 


(ii)       During
the Six-Month Delay, the Company will pay to you the applicable payments set
forth in this Section 4, to the extent any of the following exceptions to
the Six-Month Delay Rule apply:


 


(A)      the
short-term deferral rule of Code Section 409A and Treasury Regulation
§1.409A-1(b)(4) (or any similar or successor provisions) (including with
the treatment of each payment as one of a series of separate payments for
purposes of Code Section 409A and Treasury Regulation
§1.409A-2(b)(2)(iii)) (or any similar or successor provisions),


 


(B)      payments
permitted under the separation pay exception of Code Section 409A and
Treasury Regulation §1.409A-1(b)(9)(iii) (or any similar or successor
provisions), and


 













 


Executive Change of
Control Agreement


Don L. Canterna


Page 15


 


(C)      payments
permitted under the limited payments exception of Code Section 409A and
Treasury Regulation §1.409A-1(b)(9)(v)(D) (or any similar or successor
provisions),


 


provided that the amount paid under this
paragraph will count toward, and will not be in addition to, the total payment
amount required to be made to you by the Company under this Section 4 on
account of your separation from service and any applicable Company benefit
plan.


 


(f)       The Company shall deliver to you a release in
favor of the Company that is acceptable to the Company (the “Release”) as soon
as administratively feasible following your termination of employment.  Notwithstanding anything in this Agreement to
the contrary, no payments pursuant to Section 4(a)(ii) or Section 4(b) shall
be made prior to the date that both (i) you have delivered an original,
signed Release to the Company and (ii) the revocability period (if any)
has elapsed; provided, however, that any payments that would otherwise have
been made prior to such date but for the fact that you had not yet delivered an
original, signed Release (or the revocability period had not yet elapsed) shall
be made as soon as administratively practicable but not later than the
seventy-fourth (74th) day following your termination of employment.  If you do not deliver an original, signed
Release to the Company within ten (10) business days (or longer if
required by applicable law) after receipt of the same from the Company, (i) your
rights shall be limited to those made available to you under Section 4(a) above
(excluding Section 4(a)(ii)), and (ii) the Company shall have no
obligation to pay or provide to you any amount or benefits described in Section 4(a)(ii) or
Section 4(b), or any other monies on account of the termination of your
employment.


 


5.        Successors; Binding
Agreements.


 


(a)      The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company or of any
division or subsidiary thereof employing you to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken
place.  Failure of the Company to obtain
such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle you to compensation from
the Company in the same amount and on the same terms to which you would be
entitled hereunder if you terminated your employment for Good Reason following
a Change of Control, except that for purposes of implementing the foregoing,
the date on which any such succession becomes effective shall be deemed your
Date of Termination.


 













 


Executive Change of
Control Agreement


Don L. Canterna


Page 16


 


(b)      This Agreement shall inure to the benefit of and
be enforceable by your personal and legal representatives, executors,
administrators, successors, heirs, distributees, devisees, and legatees.  If you should die while any amount would
still be payable to you hereunder if you had continued to live, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the
terms of this Agreement, to your devisee, legatee or other designee or, if
there is no such designee, to your estate.


 


6.        No Funding of Benefits.  Nothing herein contained shall require or be
deemed to require the Company to segregate, earmark, or otherwise set aside any
funds or other assets to provide for any payments to be made hereunder.  Your rights under this Agreement shall be
solely those of a general creditor of the Company.  However, in the event of a Change of Control,
the Company may deposit cash or property, or both, equal in value to all or a
portion of the benefits anticipated to be payable hereunder into a trust, the
assets of which are to be distributed at such times as are otherwise provided
for in this Agreement and are subject to the rights of the general creditors of
the Company.


 


7.        Withholding of Taxes.  The Company may withhold from any amounts
payable under this Agreement all federal, state, city, or other taxes as
legally shall be required.


 


8.        Notice.  For the purpose of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by United
States registered mail, return receipt requested, postage prepaid, addressed to
the respective addresses set forth on the first page of this Agreement.


 


9.        Miscellaneous.  No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by you and such officer as may be specifically
designated by the Board.  The validity,
interpretation, construction, and performance of this Agreement shall be
governed by the laws of the State of Michigan.


 


10.       Employment Rights.  This Agreement shall not confer upon you any
right to continue in the employ of the Company or its subsidiaries and, except
to the extent that benefits may become payable under Section 4, above,
shall not in any way affect the right of the Company or its subsidiaries to
dismiss or otherwise terminate your employment at any time and for any reason
with or without cause.


 


11.       No Vested Interest.  Neither you nor your beneficiaries shall have
any right, title or interest in any benefit under this Agreement prior to the
occurrence of all of the events specified herein as necessary conditions to
such right, title or interest.


 













 


Executive Change of
Control Agreement


Don L. Canterna


Page 17


 


	
  12.

  	
  Prior Agreements. This Agreement
  contains the understanding between the parties hereto with respect to
  severance benefits in connection with a Change of Control of the Company and
  supersedes any prior such agreement between the Company (or any predecessor
  of the Company) and you. If there is any discrepancy or conflict between this
  Agreement and any plan, policy and program of the Company regarding any term
  or condition of severance benefits in connection with a Change of Control of
  the Company, the language of this Agreement shall govern.

  
	
   

  	
   

  
	
  13.

  	
  Validity. The invalidity or
  unenforceability of any provision of this Agreement shall not affect the
  validity or enforceability of any other provision of this Agreement, which
  shall remain in full force and effect.

  
	
   

  	
   

  
	
  14.

  	
  Counterparts. This Agreement may
  be executed in several counterparts, each of which shall be deemed to be an
  original but all of which together shall constitute one and the same
  instrument.

  
	
   

  	
   

  
	
  15.

  	
  Arbitration. Any dispute or
  controversy arising under or in connection with this Agreement shall be
  settled exclusively by arbitration in accordance with the rules of the
  American Arbitration Association then in effect. Judgment may be entered on
  the arbitrator’s award in any court having jurisdiction. However, you shall
  be entitled to seek in court specific performance of your right, pursuant to
  Section 3(f), above, to be paid until the Date of Termination during the
  pendency of any dispute or controversy arising under or in connection with
  this Agreement.

  



 


16.      409A Compliance.  To
the extent any provision of this Agreement or action by the Company would
subject you to liability for interest or additional taxes under Section 409A,
it will be deemed null and void, to the extent permitted by law and deemed
advisable by the Company. It is intended that this Agreement will comply with Section 409A,
including the exceptions for short-term deferrals, separation pay arrangements,
reimbursements, and in-kind distributions, and this Agreement shall be
administered accordingly, and interpreted and construed on a basis consistent
with such intent. Each payment under Section 4 of this Agreement or any
Company benefit plan is intended to be treated as one of a series of separate
payments for purposes of Code Section 409A and Treasury Regulation
§1.409A-2(b)(2)(iii) (or any similar or successor provisions). This
Agreement may be amended to the extent necessary (including retroactively) by
the Company in order to preserve compliance with Section 409A. The
preceding shall not be construed as a guarantee of any particular tax effect
for your compensation and benefits.


 













 


Executive Change of
Control Agreement


Don L. Canterna


Page 18


 


If this letter properly sets forth our agreement on
the subject matter hereof, kindly date, sign and return to the Company the
enclosed copy of this letter, which will then constitute our agreement on this
subject.


 


 


	
  EXECUTIVE ACCEPTANCE

  	
  SPX CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/Don L. Canterna

  	
   

  	
  By:/s/Christopher J.
  Kearney

  
	
  Don L. Canterna

  	
       Christopher
  J. Kearney

  
	
   

  	
   

  
	
   

  	
  Its:

  	
  Chairman, President and Chief

  Executive Officer

  
	
   

  	
   

  
	
   

  	
  Date: December 16,
  2008