Document:

Exhibit 10.3

 

SPX CORPORATION

 

AMENDMENT TO THE

 

SPX CORPORATION SUPPLEMENTAL
RETIREMENT PLAN

FOR TOP MANAGEMENT

 

Pursuant
to the powers of amendment reserved in Section 6.1 of the SPX Corporation
Supplemental Retirement Plan for Top Management (the “Plan”), SPX Corporation
hereby amends the Plan in the following manner:

 

1.             Effective as of January 31,
2008, the Plan is amended by adding the new Appendix M attached hereto
to the end thereof.

 

 

Appendix M

 

Special Provisions for Leslie S.
Powell

 

Leslie
S. Powell will be treated (i) as though he were a participant in this Plan
beginning on January 31, 2008, the date he was named an officer of SPX
Corporation (i.e., Continuous Service shall
commence as of such date) for purposes of determining the amount of benefits
payable to him under this Plan and (ii) as though he were a participant in
the SPX Qualified Plan for purposes of determining the eligibility for benefits
and the amount of benefits under the Plan.Exhibit 10.4

 

 

2008 EXECUTIVE BONUS PLAN

 

Effective Date:  January 1,
2008

 

I.             INTERPRETATION

 

Where this Plan refers to the
Company in relation to employment but the Plan Participant is employed not by
SPX Corporation, but by a subsidiary or affiliate of SPX Corporation,
references to “the Company” shall be interpreted as referring to the employing
subsidiary or affiliate.

 

II.            PURPOSE

 

The objectives of the SPX Corporation
2008 Executive Bonus Plan (the “Plan”) are to link incentive awards for Plan
Participants (defined below) to the creation of investor wealth and to promote
a culture of performance and ownership. 
Accordingly, the Plan rewards sustained improvements in investor value.
In addition to the individuals’ general working performance, the incentives
offered to Participants under this Plan with its various elements shall
particularly reward the individuals’ ongoing loyalty to SPX Corporation during
and also after the Participants’ employment as well as those results of the
Participants’ work that are not already compensated by the Participants’
regular remuneration.

 

The Plan is a statement of SPX
Corporation’s intentions and does not constitute a guarantee that any bonus
shall be paid.  This Plan is operated at
the sole initiative of the Company and it does not create a contractual
relationship or any contractually enforceable rights for Participants.  A bonus shall be payable under the Plan if
the Compensation Committee of the Board of Directors of SPX Corporation or its
designee(s) (the “Compensation Committee”) determine that a Participant is
entitled to one according to the rules of the Plan.  The Compensation Committee may delegate such
authority, as it deems appropriate, in its sole discretion.

 

III.           PLAN ADMINISTRATION

 

The
Compensation Committee shall be responsible for the management and
administration of the Plan.  The
Compensation Committee has full authority to interpret and apply the Plan as
may be deemed to be in the best interests of SPX Corporation and its
shareholders.  Any decision by the
Compensation Committee relating to the Plan or to awards thereunder shall be
final and binding on the Participants. 
The Compensation Committee has delegated to SPX Corporate Human
Resources day-to-day management and administrative responsibilities of the
Plan.

 

After approval, payment of awards under
the Plan will typically be made in March of the 

 

 

year following the Plan Year (defined
below) (the “Award Payment Date”), but in no event will the Award Payment Date
be later than the 15th of March following the Plan Year for
participants subject to U.S. income taxation. Business unit executives will
coordinate with SPX Corporation representatives to ensure that accrual accounts
for payment of awards under this Plan are adequately funded.

 

IV.          EFFECTIVE DATE

 

The Plan is effective as of January 1, 2008 for the 2008 calendar
year, unless modified or terminated earlier by SPX Corporation (the “Plan Year”);
provided, however, that no amendment or termination shall impair or alter any
award that has been previously declared or granted to a Participant.

 

V.            ELIGIBILITY

 

Officers
and key managers in both line and staff positions who have significant impact
on the achievement of the strategic objectives of the Company and who are not
participating in any other Company-sponsored bonus or incentive plan, are
eligible to be considered for participation in the Plan.  Senior executive officers’ participation
requires approval by the SPX Corporation Chief Executive Officer (the “CEO”)
and the Compensation Committee. 
Participation for all other employees will be based on the
recommendation of the business unit president and/or supervising corporate
officer.

 

Upon approval by the Compensation
Committee, participation shall be offered to eligible employees conditioned
upon such eligible employee’s agreement to sign a non-competition and
confidentiality agreement and any other documents as the Company may
require.  The terms of the
non-competition and confidentiality agreement and such other required documents
shall be on terms acceptable to the Company. 
Once an eligible employee has executed all the necessary documents as
required by the Company, he/she shall become a Participant in the Plan (a “Participant”).

 

VI.          PLAN
COMPONENTS & OVERVIEW

 

The
Plan is designed to link incentive awards for Participants to the creation of
investor wealth and to promote a culture of performance and ownership.  Specifically, the Plan is closely linked to
key performance measures – operating
profit/margin and operating cash
flow.

 

Under the Plan, the performance measures help the
Company focus on the following:

 

·        Improving
operating performance

·        Controlling
corporate overhead expenses

·        Quality of
earnings, as measured by operating profit/margin

·        Volume of
earnings, as measured by operating cash flow

·        Efficient use
of capital, as measured by operating cash flow
with goals reflecting targeted cash conversion rate.

 

2

 

Operating
cash flow and operating profit/margin can be generally understood as follows:

 

 

*** This metric may be expressed as a percent of
revenues or as a dollar amount, depending on the applicable business unit
matrix.

 

Maximum
and Target:

 

The Maximum Award Opportunity for Participants in the Plan is 200% of
the Target Award Amount. A Participant’s Target Award Amount is calculated by
multiplying his/her year-end base salary (as of 31st December) by his/her
Target Bonus Percent, e.g., 100,000 x 20% = 20,000 Target Award Amount.  In this example, the Maximum Award Opportunity
is 40,000.

 

Business Unit Matrix:

 

The Business Unit Matrix
specifies the operating profit/margin and operating cash flow goals that must
be achieved for various bonus levels from zero to the maximum 200% level (the “Business
Unit Metric Achieved”).  The Business
Unit Matrix may, at the discretion of SPX Corporation, specify the business
goals in percentages or absolute dollar amounts.

 

Total Bonus Award:

 

Provided
a bonus is achieved according to the Business Unit Matrix and subject to the
Maximum Award Opportunity limitation, the Participant’s Total Bonus Award is
determined by multiplying the Participant’s Target Award Amount by the Business
Unit Metric Achieved.

 

3

 

Bonus
Calculation Steps and Example:

 

The
following illustrates a bonus calculation under the Plan by way of
example.  In all cases, the Participant’s applicable Business Unit
Matrix will govern the actual bonus calculation.

 

THE FOLLOWING IS AN EXAMPLE MATRIX AND AWARD
CALCULATION

 

 

 

4

 

VII.         NEW PARTICIPANTS,
PROMOTIONS, OR TRANSFERS

 

Subject to the terms and conditions contained in this Plan, a new
Participant will be eligible to receive a potential bonus based on his/her
length of service during the Plan Year, expressed as a percent of the total
Plan Year.   In the event the Participant
works in more than one business unit during the Plan Year, the terms of
Paragraphs VIII C and D, as applicable, will apply.

 

VIII.        ADMINISTRATIVE
MATTERS

 

All
decisions made by the Compensation Committee pursuant to the provisions of the
Plan shall be made in its sole discretion and shall be final, conclusive, and
binding upon all parties.

 

 General:  Except as otherwise expressly provided in
this Plan, a Participant must be an active employee of the Company or one of
its subsidiaries or affiliates (including active employment during any
contractual notice period) on 31st December of the Plan Year in
order to be eligible for an award from the Plan.  An “active” employee includes employees on
temporary lay-off subject to recall, and those on temporary disability who are
expected to return to work.

 

For Participants employed in the UK by a UK entity: An “active”
employee does not include employees who are serving out a notice period on “garden
leave”.  Furthermore, for any
Participants on maternity leave, this bonus payment does not constitute part
of  “wages and salary” as that term is
used in relevant legislation.  As a
result, a bonus payment of this nature will not ordinarily be paid in relation
to any period during which a Participant elects to take either ordinary or
additional maternity leave.  A
bonus payment will, however, usually be paid on a pro-rated basis for the
balance of any Plan Year in which a Participant is partially absent.

 

For Participants employed in France by a French entity: An “active”
employee includes employees who are released from working during their notice
period, or any employee whose contract is suspended when this suspension is
assimilated by law as an “effective work.”

 

A.           Termination Prior to Year End:

 

When a Participant who
is 55 years of age or more, has five years of continuous service in which at
least three of the five years are SPX Company service, retires, or when a Participant,
regardless of age or service, becomes disabled (as determined by SPX
Corporation, in its sole discretion), or if employment is terminated due to a
death, the Participant, his designated beneficiary, or his estate will receive
a pro rata portion of the award determined as of the end of the Plan Year.  The pro ration will be based on the
Participant’s ending base salary for the Plan Year and the achieved levels of
business unit performance and individual 

 

5

 

performance as of the
end of the Plan Year.  The pro rated
award will be paid at the same time as awards are paid to active
Participants.  .

 

If a Participant’s
employment with the Company terminates for any reason other than (1) death,
(2) retirement, (3) disability, or (4) for Participants employed
in Europe by a European entity, transfer of the employment relationship to a
third party under the transfer of business regulations in Section 613a
German Civil Code (Burgerliches Gesetzbuch), the Acquired Rights Directive or
similar transfer of business regulations applicable to Participants in their
respective countries, no bonus award or expectancy will be earned or payable
for the Plan Year in which the termination or resignation occurred.

 

B.            Termination After Plan Year End:

 

If a Participant’s
employment terminates between 31st December and the Award
Payment Date for willful misconduct or any other form of gross misconduct, or
dismissal following a repeated breach of the Participant’s obligations as
determined by the Company, no bonus award or expectancy will be earned or
payable for such Plan Year or the year in which the termination occurred.

 

C.            Plan or Business Unit
Transfers Throughout the Year:

 

(1)   When a Participant is moved
from one business unit (or distinct unit or division specified for bonus
measurement purposes) to another during the course of a Plan Year, a pro-rated
amount will be calculated based upon each business unit’s performance and the
number of months employed in each business unit.

 

(2)   If the Participant remains
in the same business unit, yet changes from participating in the 2008 Bonus
Plan to participating in the 2008 Executive Bonus Plan (or vise-versa), a pro
rated amount will be calculated  for each
plan based on the time spent as a Participant in each respective plan and
according to the rules of each plan.

 

(3)   If the Participant is
removed from the 2008 Executive Bonus Plan for any reason including being
placed in a business unit incentive or commission plan, a prorated amount will
be calculated based only on the time spent as a Participant in the Plan.

 

D.            Business Unit and Corporate
Performance:

 

Some
Participants may have a portion of their bonus tied to SPX Corporation’s
corporate performance and the performance of another business unit.  The bonus for these Participants shall be
calculated by allocating one portion of the Target Bonus Percent to corporate
performance and the other portion to the business unit.

 

6

 

E.            Change of Control:

 

In
the event of a change of control of SPX Corporation (defined in Attachment A),
the change-of control date shall be treated as if it were the end of that Plan
Year, the Business Unit Performance Award shall be measured, and the Participant
shall be paid the higher of that full Plan Year’s Target Award Amount or the
actual earned bonus.

 

F.            Administration of the Plan:

 

Subject
to the provisions of the Plan, the Compensation Committee shall have the sole
authority and discretion:

 

(1)           To construe and interpret
the Plan;

 

(2)           To establish, amend, change,
add to, alter and/or rescind rules, regulations and guidelines for
administration of the Plan;

 

(3)           To make all designations and
determinations specified in the Plan;

 

(4)           To determine the amount of
awards and payments to be made under the Plan and the status and rights of any
Participant to payments under the Plan with the exception of the Senior
Executive Officers, which will require approval by the CEO and the Compensation
Committee; and

 

(5)           To decide all questions
concerning the Plan and to make all other determinations and to take all other
steps necessary or advisable for the administration of the Plan.

 

G.            Plan Continuation:

 

Notwithstanding
anything else in these rules, the Compensation Committee, subject to
limitations by mandatory laws and under observance of the regulations
referenced in Sec. IX of this Plan, may at any time amend, suspend, discontinue
or terminate this Plan.  It also reserves
the right to (i) reduce or modify any bonus payments under this Plan based
on such factors mentioned under Sec. IX of this Plan to the full extent legally
permissible under applicable local laws and (ii) decide all questions and
issues arising under the Plan.  The
Compensation Committee’s decisions shall be final and binding on all parties.

 

H.            No Right of Assignment:

 

Except
as expressly provided herein, no right or benefit under the Plan shall be
subject to anticipation, alienation, sale, assignment, pledge, encumbrance or
charge.  No right or benefit hereunder
shall in any manner be liable for or subject 

 

7

 

to
the debts, contracts, liabilities or torts of the person entitled to such right
or benefit.

 

I.             No Guarantee:

 

The
Plan is a statement of the intentions of SPX Corporation and does not
constitute a guarantee that any bonus shall be paid.  It does not create a contractual relationship
or any contractually enforceable rights for Participants.  Further, nothing in the Plan shall be
construed to give any Participant any right to be granted any award other than
at the Compensation Committee’s sole discretion, to limit the right of the
Company to terminate the employment of any Participant at any time, or to be
evidence of any agreement or understanding, express or implied, of a
Participant’s right to continued employment. 
Consequently, any entitlement arises only once the Compensation
Committee has determined that a Participant is entitled to receive an award
according to the rules of the Plan.

 

J.             Company’s Books and Records
Conclusive:

 

The
Company’s books and records and internal methods of accounting shall be
conclusive for all purposes under the Plan.

 

K.            Right to Withhold Taxes:

 

To
the extent legally permissible under applicable laws, the Company shall have
the right to withhold such amounts from any payment under this Plan as it
determines necessary to fulfill any federal, state, or local wage or
compensation withholding requirements.

 

L.            No Claim Against Company
Assets:

 

Nothing
in this Plan shall be construed as giving any Participant or his or her legal
representative, or designated beneficiary, any claim against any specific
assets of the SPX Corporation or its subsidiaries or affiliates or as imposing
any trustee relationship upon the Company in respect of the Participant.  Neither SPX Corporation nor the Company shall
be required to segregate any assets in order to provide for the satisfaction of
the obligations hereunder.  If and to the
extent that the Participant or his or her legal representative or designated
beneficiary acquires a right to receive any payment pursuant to this Plan, such
right shall be no greater than the right of an unsecured general creditor of
SPX Corporation or the Company, as the case may be.

 

M.           No Other Agreements or
Understandings:

 

Except
as expressly provided in this Plan, or in a written agreement between the
Company and a Participant that specifically refers to awards under this Plan,
this Plan represents the sole understanding between the Company and Participants
concerning its subject matter and it supersedes all prior agreements,
arrangements, 

 

8

 

understandings,
warranties, representations, and statements, whether written or oral, between
the parties concerning its subject matter.

 

N.            Governing Law:

 

The
Plan and all actions taken pursuant thereto shall be governed by, and construed
in accordance with, the laws of the State of North Carolina, U.S.A. applied
without regard to conflict of law principles.

 

O.            Headings:

 

Section headings
are used in this Plan for convenience of reference only and shall not affect
the meaning of any provision of the Plan.

 

P.            Non-Competition and
Non-Disclosure:

 

For purposes of the Plan, if a Participant leaves the Company with
rights to future payments from the Plan, until those payments are distributed
to the Participant, he/she shall not directly or indirectly own, manage,
operate, join, control, become employed by or participate in the management,
operation or control of, any business which is a competitor, customer or
supplier of SPX Corporation or any subsidiary or division thereof without the
specific consent of the Company; except as a shareholder of a publicly-held
competitor, customer or supplier corporation where such ownership does not
exceed one percent (1%) of the total shares outstanding.

 

Additionally, the Participant shall not disclose any confidential
information pertaining to the business of the Company, including the location
and identity of its customers and suppliers, its costs of operation, the
pricing of its products and services, its operating practices and its product
details without the express written approval of the Company.

 

The failure of a Participant or former Participant to comply with the
provisions of this Paragraph shall result in forfeiture of any payments that
might otherwise be due to him/her because of his/her participation in the Plan.

 

IX.           DISCLAIMER

 

While it is not the intention of SPX Corporation to change the Plan
during the Plan Year, SPX Corporation reserves the right to modify or terminate
the Plan, if, in particular due to unforeseen changes in legal or factual
circumstances, a continuation of the Plan at all or on unchanged terms and
conditions would constitute an unreasonable hardship for SPX Corporation
or the Company, provided however that no amendment or termination shall impair
or alter any award which has been previously declared or granted to a
Participant. Such hardship could be seen in:

 

i.      continuation leading to the
employing entity’s insolvency,

 

9

 

ii.     mandatory payment
obligations to official authorities (e.g. taxes, social security contributions)
arising or increasing at an amount that would increase the total costs involved
with the Plan for the employing entity by 20% or more, or

 

iii.    any other reasonable and
objective causes that substantially impede the Company’s normal operation.

 

X.            EXCEPTIONS TO THE PLAN

 

Exceptions to the Plan are discouraged. 
Requests for exceptions are reviewed on a case-by-case basis and require
the approval of the Executive Vice President, Human Resources &
President, Asia-Pacific or his successor.

 

XI.          PLAN INTERPRETATION

 

The Compensation Committee  shall have full discretion and authority to answer questions or make
interpretations that may arise in the final administration of this Plan.

 

XII.         FRAUD, MANIPULATION OR NEGLIGENCE

 

Any Participant who falsifies, manipulates or is
negligent in the processing of information in connection with the computation
of performance measures or payments under the Plan forfeits all outstanding
awards and will be subject to disciplinary action up to and including
termination.

 

XIII.        SECTION 409A

 

To the extent any provision of the Plan or action by
the Compensation Committee or Company would subject the Plan to Section 409A
of the Internal Revenue Code of 1986, as amended, or any successor provision
thereto, and all regulations issued thereunder and applicable guidance thereto
(“Section 409A”), it will be deemed null and void, to the extent permitted
by law and deemed advisable by the Compensation Committee.  It is intended that the Plan be exempt from Section 409A
coverage, and the Plan shall be interpreted and construed on a basis consistent
with such intent.  The Plan may be
amended in any respect deemed necessary (including retroactively) by the
Compensation Committee in order to maintain Section 409A exemption.  The preceding shall not be construed as a
guarantee of any particular tax effect for Plan benefits.

 

10

 

ATTACHMENT A

 

Change of Control of SPX
Corporation

 

A.           “Change of Control” shall be
deemed to have occurred if:

 

(a)           Any “Person” (as defined below),
excluding for this purpose SPX Corporation (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.

 

(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:

 

11

 

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

 

12

 

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, 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.

 

A
“Change of Control” shall not include any transaction described in paragraph (a) or
(c), above, where, in connection with such transaction, a Participant and/or
any party acting in concert with that Participant shall substantially increase
their, his/her 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).

 

13

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