Document:

Exhibit 10.7

 

Employment Agreement of Robert B. Foreman

 

This Employment Agreement (the “Agreement”) is
effective as of February 23, 2005 (the “Effective Date”), by and between SPX
Corporation (the “Company”), and Robert B. Foreman (the “Executive”).

 

WHEREAS, the Company desires to continue to employ the
Executive as its Senior Vice President Human Resources; and

 

WHEREAS, the Company and the Executive have reached
agreement concerning the terms and conditions of his continued employment and
wish to formalize that agreement;

 

NOW, THEREFORE, in consideration of the mutual terms,
covenants and conditions stated in this Agreement, the Company and the
Executive hereby agree as follows:

 

1.             Employment.  The Company employs the Executive and the
Executive hereby accepts continued employment with the Company as Senior Vice
President Human Resources.  During the
Employment Term (as hereinafter defined), the Executive will have the title,
status and duties of Senior Vice President Human Resources and will report directly
to the Company’s Chief Executive Officer. 
The Executive’s principal business office shall be at the Company’s
principal business office located in Charlotte, North Carolina, and Executive’s
principal family residence shall be located within 50 miles of the Company’s
principal business office for the duration of the Employment Term.   If domiciled elsewhere on the date of
Executive’s execution of this Agreement, Executive shall relocate his principal
family residence to the area specified in this Paragraph.  Executive’s failure to complete such
relocation on or before July 15, 2005 shall render this Agreement null and
void.

 

2.             Term of Employment.  The term of employment (“Employment Term”)
will commence on the Effective Date, and will continue thereafter until two (2)
years from the Effective Date and will be automatically extended for subsequent
one (1) day periods for each day of the Employment Term that passes after the
Effective Date, unless sooner terminated by either party in accordance with the
provisions of this Agreement.  The intent
of the foregoing provision is that the Agreement becomes “evergreen” on the
Effective Date so that on each passing day after the Effective Date the
Employment Term automatically extends to a full two-year period.

 

3.             Duties.  During the Employment Term:

 

(a)           The
Executive will perform duties assigned by the Company’s Chief Executive
Officer, or the Company’s Board of Directors (the “Board”), from time to time;
provided that the Executive shall not be assigned tasks inconsistent with those
of Senior Vice President Human Resources.

 

(b)           The
Executive will devote his full time and best efforts, talents, knowledge and
experience to serving as the Company’s Senior Vice President Human

 

 

Resources.  However, the Executive may devote reasonable
time to activities such as supervision of personal investments and activities
involving professional, charitable, educational, religious and similar types of
activities, speaking engagements and membership on other boards of directors,
provided such activities do not interfere in any material way with the business
of the Company; provided  that, the Executive cannot serve on the
board of directors of more than one publicly-traded company without the Board’s
written consent.  The time involved in
such activities shall not be treated as vacation time.  The Executive shall be entitled to keep any
amounts paid to him in connection with such activities (e.g.,
director fees and honoraria).

 

(c)           The
Executive will perform his duties diligently and competently and shall act in
conformity with the Company’s written and oral policies and within the limits,
budgets and business plans set by the Company. 
The Executive will at all times during the Employment Term strictly
adhere to and obey all of the rules and regulations in effect from time to time
relating to the conduct of executives of the Company.  Except as provided in (b) above, the
Executive shall not engage in consulting work or any trade or business for his
own account or for or on behalf of any other person, firm or company that
competes, conflicts or interferes with the performance of his duties hereunder
in any material way.

 

4.             Compensation and Benefits.  During the Executive’s employment hereunder,
the Company shall provide to the Executive, and the Executive shall accept from
the Company as full compensation for the Executive’s services hereunder,
compensation and benefits as follows:

 

(a)           Base
Salary.  The Company shall pay the
Executive at an annual base salary (“Base Salary”) of five hundred thousand
dollars ($500,000).  The Board, or such
committee of the Board as is responsible for setting the compensation of senior
executive officers, shall review the Executive’s performance and Base Salary
annually in January of each year, and determine whether to adjust the Executive’s
Base Salary on a prospective basis.  The
first review shall be in January 2006. 
Such adjusted annual salary then shall become the Executive’s “Base
Salary” for purposes of this Agreement. The Executive’s annual Base Salary
shall not be reduced after any increase, without the Executive’s consent.  The Company shall pay the Executive’s Base
Salary according to payroll practices in effect for all senior executive
officers of the Company.

 

(b)           Incentive
Compensation.  The Executive shall be
eligible to participate in any annual performance bonus plans, long-term
incentive plans, and/or equity-based compensation plans established or
maintained by the Company for its senior executive officers, including, but not
limited to, the Executive EVA Compensation Plan (“EVA Plan”) and the SPX
Corporation Stock Compensation Plan.  For
the 2005 bonus plan year, the Executive shall be eligible for a target bonus
under the Company’s EVA Plan equal to 100% of his Base Salary provided that all
performance goals set by the Company are met. 
The Board (or appropriate Board committee) will determine and
communicate to the Executive his annual incentive plan participation for
subsequent bonus plan years, no later than March 31 of such bonus plan year.

 

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(c)           Executive
Benefit Plans.  The Executive will be
eligible to participate on substantially the same basis as the Company’s other
senior executive officers in any executive benefit plans offered by the Company
including, without limitation, medical, dental, short-term and long-term
disability, life, pension, profit sharing and nonqualified deferred
compensation arrangements.  The Company
reserves the right to modify, suspend or discontinue any and all of the plans,
practices, policies and programs at any time without recourse by the Executive,
so long as the Company takes such action generally with respect to other
similarly situated senior executive officers.

 

(d)           Business
Expenses.  The Company shall
reimburse the Executive for all reasonable and necessary business expenses
incurred in the performance of services with the Company, according to the
Company’s policies and upon Executive’s presentation of an itemized written
statement and such verification as the Company may require.

 

(e)           Perquisites.  The Company will provide the Executive with
all perquisites it provides to other senior executive officers.  Such perquisites shall not be less than those
provided to the Executive on the Effective Date.  The Company will also reimburse the Executive
for annual income tax return preparation and financial planning up to $20,000
per year.

 

(f)            Vacation.  The Executive will be entitled to vacation in
accordance with the Company’s vacation policy for senior executive officers,
but in no event less than 5 weeks per calendar year.  Unused vacation shall be carried over for a
period not in excess of twelve (12) months.

 

5.             Payments on Termination of
Employment.

 

(a)           Termination
of Employment for any Reason.  The
following payments will be made upon the Executive’s termination of employment
for any reason:

 

(i)            Earned
but unpaid Base Salary through the date of termination;

 

(ii)           Any
annual incentive plan bonus, for which the performance measurement period has
ended, but which is unpaid at the time of termination;

 

(iii)          Any
accrued but unpaid vacation;

 

(iv)          Any
amounts payable under any of the Company’s benefit plans in accordance with the
terms of those plans, except as may be required under Code Section 401(a)(13);
and

 

(v)           Unreimbursed
business expenses incurred by the Executive on the Company’s behalf.

 

(b)           Termination
of Employment for Death or Disability. 
In addition to the amounts determined under (a) above, if the Executive’s
termination of employment occurs by reason of death or disability, the
Executive (or his estate) will receive a pro rata portion of any bonus payable
under the Company’s annual incentive plan for the year in

 

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which
such termination occurs determined based on the highest of (i) the actual
annual bonus paid for the bonus plan year immediately preceding such
termination, or (ii) the target bonus for the bonus plan year in which such
termination occurs.  The Executive also
will receive the Executive’s bonus bank amount, if positive, as of the date of
such termination.  The Executive will be deemed to be
disabled upon the earlier of (i) the end of a six (6) consecutive month period
during which, by reason of physical or mental injury or disease, the Executive
has been unable to perform substantially all of his usual and customary duties
under this Agreement or (ii) the date that a reputable physician selected by
the Board, and as to whom the Executive has no reasonable objection, determines
in writing that the Executive will, by reason of physical or mental injury or
disease, be unable to perform substantially all of the Executive’s usual and
customary duties under this Agreement for a period of at least six (6)
consecutive months.  If any question
arises as to whether the Executive is disabled, upon reasonable request
therefore by the Board, the Executive shall submit to reasonable medical
examination for the purpose of determining the existence, nature and extent of
any such disability.  In accordance with
Paragraph 10, the Board shall promptly give the Executive written notice of any
such determination of the Executive’s disability and of any decision of the
Board to terminate the Executive’s employment by reason thereof.  In the event of disability, until the date of
termination, the base salary payable to the Executive under Paragraph 4 hereof
shall be reduced dollar-for-dollar by the amount of disability benefits paid to
the Executive in accordance with any disability policy or program of the
Corporation.

 

(c)           Termination
by the Company Without Cause, or Voluntary Termination by the Executive for
Good Reason.  If the Company
terminates the Executive’s employment other than for Cause, or the Executive
voluntarily terminates his employment for Good Reason, in addition to the
benefits payable under (a), the Company will pay the following amounts and
provide the following benefits:

 

(i)            The
Base Salary and annual bonus that the Company would have paid under the
Agreement had the Executive’s employment continued to the end of the Employment
Term.  For this purpose, annual bonus
will be determined as the highest of (A) the actual bonus paid for the bonus
plan year immediately preceding such termination, or (B) the target bonus for
the bonus plan year in which such termination occurs.

 

(ii)           Continued
coverage under the Company’s medical, dental, life, disability, pension, profit
sharing and other executive benefit plans through the end of the Employment
Term, at the same cost to the Executive as in effect on the date of the
Executive’s termination.  If the Company
determines that the Executive cannot participate in any benefit plan because he
is not actively performing services for the Company, the Company may provide
such benefits under an alternate arrangement, such as through the purchase of
an individual insurance policy that provides similar benefits or, if
applicable, through a nonqualified pension or profit sharing plan.  To the extent that the Executive’s
compensation is necessary for determining the amount of any such continued
coverage or benefits, such compensation (Base Salary and annual bonus) through

 

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the
end of the Employment Term shall be at the highest rate in effect during the
12-month period immediately preceding the Executive’s termination of
employment.

 

(iii)          Executive
perquisites on the same basis on which the Executive was receiving such
perquisites prior to his employment termination, including: (A) reimbursement
for club dues through the end of the Employment Term; and (B) reimbursement of
expenses relating to financial planning services, tax return preparation and
annual physicals through December 31 of the calendar year that includes the
second anniversary of the Executive’s employment termination.  The Company will bear the cost of such
perquisites, at the same level in effect immediately prior to the Executive’s
employment termination.  Perquisites
otherwise receivable by the Executive pursuant to this Paragraph shall be reduced
to the extent comparable perquisites are actually received by or made available
to the Executive without cost during the period following the Executive’s
employment termination covered by this Paragraph.  The Executive shall report to the Company any
such perquisites actually received by or made available to the Executive.

 

(iv)          The
period through the end of the Employment Term shall continue to count for
purposes of determining the Executive’s age and service with the Company with
respect to eligibility, vesting and the amount of benefits under the Company’s
benefit plans to the maximum extent permitted by applicable law.

 

(v)           Any
outstanding stock options, restricted stock or other equity-based compensation
awards shall immediately vest upon such termination date, and any such stock
options shall be immediately exercisable at any time prior to the earlier
of:  (A) two years; or (B) the stock
option expiration or other termination date.

 

(vi)          The
Executive’s bonus bank amount, if positive, as of the date of such termination.

 

(vii)         Outplacement
services, as elected by the Executive (and with a firm elected by the
Executive), not to exceed $50,000 in total.

 

(d)           Good
Reason.  For purposes of this
Agreement, “Good Reason” shall mean the occurrence of any of the following
without the Executive’s consent (i) assigning duties to the Executive that are
inconsistent with those of the position of Senior Vice President Human
Resources for similar companies in similar industries (except to the extent the
Company promotes the Executive to a higher executive position); (ii) requiring
the Executive to report to other than the Company’s Chief Executive Officer, or
the Company’s Board; (iii) the failure of the Company to pay any portion of the
Executive’s compensation within 10 days of the date such compensation is due;
(iv) the Company requires the Executive to relocate his principal business
office to a location not within 50 miles of the Company’s principal business
office located in the Charlotte, North Carolina

 

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metropolitan
area, or (v) the Company’s failure to continue in effect any cash or
stock-based incentive or bonus plan, pension plan, welfare benefit plan or
other benefit plan, program or arrangement, unless the aggregate value of all
such arrangements provided to the Executive after such discontinuance is not
materially less than the aggregate value as of the Effective Date (using, for
purposes of bonus plan comparisons, the target bonus potential before and after
any such discontinuance).

 

(e)           Cause.  For purposes of this Agreement, “Cause” shall
mean:  (i) the Executive’s willful and
continued failure to substantially perform his duties as an executive of the
Company (other than any such failure resulting from incapacity due to physical
or mental illness) after a written demand for substantial performance is
delivered to the Executive by the Board, which demand specifically identifies
the manner in which the Board believes that the Executive has not substantially
performed his duties, and which gives the Executive at least 30 days to cure
such alleged deficiencies, (ii) the Executive’s willful misconduct, which is
demonstrably and materially injurious to the Company, monetarily or otherwise,
or (iii) the Executive’s engaging in egregious misconduct involving serious
moral turpitude to the extent that his credibility and reputation no longer
conforms to the standard of senior executive officers of the Company.

 

(f)            Timing
of Payments.  All payments described
above shall be made in a lump sum cash payment as soon as practicable (but in
no event more than 10 days unless prohibited by applicable law or plan
documents) following the Executive’s 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.

 

6.             Assignment; Successors.  This Agreement shall inure to the benefit of
and be binding upon the Company and its successors.  The Company may not assign this Agreement
without the Executive’s written consent, except that the Company’s obligations
under this Agreement shall be the binding legal obligations of any successor to
the Company by sale, and in the event of any transaction that results in the
transfer of substantially all of the assets or business of the Company, the
Company will use its best efforts to cause the transferee to assume the
obligations of the Company under this Agreement.  The Executive may not assign this Agreement
during his life.  Upon the Executive’s
death this Agreement will inure to the benefit of the Executive’s heirs,
legatees and legal representatives of the Executive’s estate.

 

7.             Interpretation.  The laws of the State of Delaware shall
govern the validity, interpretation, construction and performance of this
Agreement, without regard to the conflict of laws principles thereof.

 

8.             Withholding.  The Company may withhold from any payment that
it is required to make under this Agreement amounts sufficient to satisfy
applicable withholding requirements under any federal, state or local law.

 

9.             Amendment or Termination.  This Agreement may be amended at any time by
written agreement between the Company and the Executive.

 

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10.           Notices.  Notices given pursuant to this Agreement
shall be in writing and shall be deemed received when personally delivered, or
on the date of written confirmation of receipt by (i) overnight carrier, (ii)
telecopy, (iii) registered or certified mail, return receipt requested,
addressee only, postage prepaid, or (iv) such other method of delivery that
provides a written confirmation of delivery. 
Notice to the Company shall be directed to:

 

SPX
Corporation

13515
Ballantyne Corporate Place

Charlotte,
NC 28277

Attention:
General Counsel

 

The Company may change the person and/or address to
whom the Executive must give notice under this Section by giving the Executive
written notice of such change, in accordance with the procedures described
above.  Notices to or with respect to the
Executive will be directed to the Executive, or to the Executive’s executors,
personal representatives or distributees, if the Executive is deceased, or the
assignees of the Executive, at the Executive’s home address on the records of
the Company.

 

11.           Severability.  If any provisions(s) of this Agreement shall
be found invalid or unenforceable by a court of competent jurisdiction, in
whole or in part, then it is the parties’ mutual desire that such court modify
such provision(s) to the extent and in the manner necessary to render the same
valid and enforceable, and this Agreement shall be construed and enforced to
the maximum extent permitted by law, as if such provision(s) had been
originally incorporated herein as so modified or restricted, or as if such
provision(s) had not been originally incorporated herein, as the case may be.

 

12.           Entire Agreement.  This Agreement sets forth the entire agreement
and understanding between the Company and the Executive and supersedes all
prior agreements and understandings, written or oral, relating to the subject
matter hereof; provided, however, that: (i) the Executive’s Change in Control
Agreement dated May 10, 1999 shall remain in full force and effect, and
payments and benefits provided thereunder shall replace those provided in this
Agreement to the extent that such payments or benefits would otherwise clearly
be duplicative; and (ii) the Executive’s non-compete, non-solicitation,
confidentiality or similar restrictive covenants shall remain in full force and
effect.

 

13.           Consultation With Counsel.  The Executive acknowledges that he has had a
full and complete opportunity to consult with counsel of the Executive’s own
choosing concerning the terms, enforceability and implications of this
Agreement, and the Company has made no representations or warranties to the
Executive concerning the terms, enforceability or implications of this
Agreement other than as are reflected in this Agreement.

 

14.           No Waiver.  No failure or delay by the Company or the
Executive in enforcing or exercising any right or remedy hereunder shall
operate as a waiver thereof.  No
modification, amendment or waiver of this Agreement nor consent to any
departure by the Executive from any of the terms or conditions thereof, shall
be effective unless in writing and signed by the Chairman of the Company’s
Board.  Any such waiver or consent shall
be effective only in the specific instance and for the purpose for which given.

 

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15.           Effect on Other Obligations.  Payments and benefits herein provided to be
paid to the Executive by the Company shall be made without regard to and in
addition to any other payments or benefits required to be paid the Executive at
any time hereafter under the terms of any other agreement between the Executive
and the Company or under any other policy of the Company relating to
compensation, or retirement or other benefits. 
Except as otherwise expressly provided herein, payments or benefits
provided the Executive hereunder shall be reduced by any amount the Executive
may earn or receive from employment with another employer or from any other
source.

 

16.           Survival.  All Sections of this Agreement survive beyond
the Employment Term except as otherwise specifically stated.

 

17.           Headings. 
The headings in this Agreement are for convenience of reference only and
shall not limit or otherwise affect the meaning thereof.

 

18.           Counterparts.  The parties may execute this Agreement in one
or more counterparts, all of which together shall constitute but one Agreement.

 

IN WITNESS WHEREOF, the parties have executed this Agreement effective as
of the date first above written.

 

	
  EXECUTIVE ACCEPTANCE

  	
  SPX CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Robert B. Foreman

  	
   

  	
  By:

  	
  /s/ Christopher J. Kearney

  	
   

  
	
  Robert B. Foreman

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  President and Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  February 28, 2005

  	
   

  
							

 

8Exhibit 10.8

 

SPX
Corporation

 

2002
STOCK COMPENSATION PLAN

 

SUPPLEMENTAL
RESTRICTED STOCK AGREEMENT

20     AWARD

 

Recipient:

 

Award Date:                              

 

Effective Date for Start of Vesting:                              

 

Number of Shares:

 

THIS AGREEMENT is made
between SPX CORPORATION, a Delaware corporation (the “Company”), and the
Recipient pursuant to the SPX Corporation 2002 Stock Compensation Plan and
related plan documents (the “Plan”) on and as of the Award Date.  The parties hereto agree as follows:

 

1.             Grant of
Restricted Stock.  The Company hereby
grants to the Recipient, pursuant to Section 9 of the Plan, the number of
shares of Company common stock (the “Common Stock”) specified above (the “Restricted
Stock”), subject to the terms and conditions of the Plan and this
Agreement.  The Recipient must accept the
Restricted Stock award within 90 days after the Award Date in accordance with
the instructions provided by the Company. 
The award automatically will be rescinded upon the action of the
Company, in its discretion, if the award is not accepted within 90 days after
the Award Date.

 

2.             Restrictions.  The Restricted Stock may not be sold,
transferred, pledged, assigned or otherwise alienated or hypothecated, whether
voluntarily or involuntarily or by operation of law, until the termination of
the applicable Period of Restriction (as defined in Section 4 below) or as
otherwise provided in the Plan or this Agreement.  Except for such restrictions, the Recipient
will be treated as the owner of the shares of Restricted Stock and shall have
all of the rights of a shareholder, including, but not limited to, the right to
vote such shares and the right to receive all dividends, if any, paid on such
shares.  If any dividends are paid in
shares of Common Stock, the dividend shares shall be subject to the same
restrictions as the shares of Restricted Stock with respect to which they were
paid.

 

 

3.             Restricted
Stock Certificates.  The stock
certificate(s) representing the Restricted Stock shall be issued or held in
book entry form promptly following the acceptance of this Agreement.  If a stock certificate is issued, it shall be
delivered to the Secretary of the Company or such other custodian as may be designated
by the Company, to be held until the end of the Period of Restriction or until
the Restricted Stock is forfeited.  The
certificates representing shares of Restricted Stock granted pursuant to this
Agreement shall bear a legend in substantially the form set forth below:

 

The sale or other
transfer of the shares of stock represented by this certificate, whether
voluntary, involuntary or by operation of law, is subject to certain
restrictions on transfer set forth in the SPX Corporation 2002 Stock
Compensation Plan, rules and administration adopted pursuant to such Plan, and
a Restricted Stock award agreement with an Award Date of                              .  A copy of the Plan, such rules and such
Restricted Stock award agreement may be obtained from the Secretary of SPX
Corporation.

 

4.             Period of
Restriction.  Subject to the
provisions of the Plan and this Agreement, unless it is vested or forfeited
earlier as described in Section 5, 6, or 7 of this Agreement, as applicable,
the Restricted Stock shall become vested and freely transferable on June 30, 20    .  Upon vesting, all vested shares shall cease
to be considered Restricted Stock, subject to the terms and conditions of the
Plan and this Agreement, and the Recipient shall be entitled to have the legend
removed from his or her Common Stock certificate(s).  The period prior to the vesting date with
respect to a share of Restricted Stock is referred to as the “Period of
Restriction.”

 

5.             Vesting upon
Termination due to Retirement, Disability or Death.  If, while the Restricted Stock is subject to
a Period of Restriction, the Recipient terminates employment with the Company
(or a Subsidiary of the Company if the Recipient is then in the employ of such
Subsidiary) by reason of retirement, disability (as determined by the Company)
or death, then the portion of the Restricted Stock subject to a Period of
Restriction shall become fully vested as of the date of employment termination
without regard to the Period of Restriction set forth in Section 4 of this
Agreement.  A Recipient will be eligible
for “retirement” treatment for purposes of this Agreement if, at the time of
employment termination, he/she is age 55 or older, he/she has completed five
years of service with the Company or a Subsidiary (provided that the Subsidiary
has been directly or indirectly owned by the Company for at least three years),
and he/she voluntarily elects to retire. 
The term “Subsidiary” is defined in the Plan and means a corporation
with respect to which the Company directly or indirectly owns 50% or more of
the voting power.

 

6.             Forfeiture
upon Termination due to Reason other than Retirement, Disability or Death.  If, while the Restricted Stock is subject to
a Period of Restriction, the Recipient’s employment with the Company (or a
Subsidiary of the Company if the Recipient is then in the employ of such
Subsidiary) terminates for a reason other than the Recipient’s retirement,
disability or death, then the Recipient shall forfeit any portion of the
Restricted Stock that is subject to a Period of Restriction on the date of such
employment termination.

 

7.             Vesting upon
Change of Control.  In the event of a
“Change of Control” of the Company as defined in this Section, the Restricted
Stock shall cease to be subject to the Period

 

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of Restriction set forth
in Section 4 of this Agreement.  A “Change
of Control” shall be deemed to have occurred if:

 

(a)           Any “Person” (as defined below),
excluding for this purpose (i) the Company or any Subsidiary of the Company,
(ii) any employee benefit plan of the Company or any Subsidiary of the Company,
and (iii) any entity organized, appointed or established for or pursuant to the
terms of any such plan that 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:

 

(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

 

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rights, exchange
rights, rights (other than rights under the Company’s Rights Agreement dated
June 25, 1996 with The Bank of New York, as amended), 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.

 

Notwithstanding
anything in this “Beneficial Ownership” definition 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 acceptance 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

 

4

 

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.

 

Notwithstanding any
provision of this Agreement to the contrary, a “Change of Control” shall not
include any transaction described in paragraph (a) or (c), above, where, in
connection with such transaction, the Recipient and/or any party acting in
concert with the Recipient substantially increases 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).

 

8.             Settlement
Following Change of Control. 
Notwithstanding any provision of this Agreement to the contrary, in
connection with or after the occurrence of a Change of Control as defined in
Section 7 of this Agreement, the Company may, in its sole discretion, fulfill
its obligation with respect to all or any portion of the Restricted Stock that
ceases to be subject to a Period of Restriction in conjunction with the Change
of Control by:

 

(a)           delivery of (i) the number of shares of
Common Stock that have ceased to be subject to a Period of Restriction or (ii)
such other ownership interest as such shares of Common Stock may be converted
into by virtue of the Change of Control transaction;

 

(b)           payment of cash in an amount equal to
the fair market value of the Common Stock at that time; or

 

(c)           delivery of any combination of shares of
Common Stock (or other converted ownership interest) and cash having an aggregate
fair market value equal to the fair market value of the Common Stock at that
time.

 

9.             Adjustment in
Capitalization.  In the event of any
change in the Common Stock of the Company through stock dividends or stock
splits, a corporate split-off or split-up, or recapitalization, merger,
consolidation, exchange of shares, or a similar event, the number of shares of
Restricted Stock subject to this Agreement may be equitably adjusted by the
Committee, in its sole discretion.

 

10.          Delivery of Stock
Certificates.  Subject to the
requirements of Sections 11 and 12 below, as promptly as practicable after
shares of Restricted Stock cease to be subject to a Period of Restriction in
accordance with Section 4, 5, or 7 of this Agreement, the Company shall cause
to be issued and delivered to the Recipient, the Recipient’s legal
representative, or a brokerage account for the benefit of the Recipient, as the
case may be, certificates for the vested shares of Common Stock.

 

5

 

11.          Tax Withholding.  Whenever a Period of Restriction applicable
to the Recipient’s rights to some or all of the Restricted Stock lapses as
provided in Section 4, 5, or 7 of this Agreement, the Company or its agent
shall notify the Recipient of the related amount of tax that must be withheld
under applicable tax laws. Regardless of any action the Company, any Subsidiary
of the Company, or the Recipient’s employer takes with respect to any or all
income tax, social security, payroll tax, payment on account or other
tax-related withholding (“Tax”) that the Recipient is required to bear pursuant
to all applicable laws, the Recipient hereby acknowledges and agrees that the
ultimate liability for all Tax is and remains the responsibility of the
Recipient.

 

Prior to receipt of any
shares that correspond to Restricted Stock that vests in accordance with this
Agreement, the Recipient shall pay or make adequate arrangements satisfactory
to the Company and/or any Subsidiary of the Company to satisfy all withholding and
payment on account obligations of the Company and/or any Subsidiary of the
Company.  In this regard, the Recipient
authorizes the Company and/or any Subsidiary of the Company to withhold all
applicable Tax legally payable by the Recipient from the Recipient’s wages or
other cash compensation paid to the Recipient by the Company and/or any
Subsidiary of the Company or from the proceeds of the sale of shares.  Alternatively, or in addition, the Company
may sell or arrange for the sale of Common Stock that the Recipient is due to
acquire to satisfy the withholding obligation for Tax and/or withhold any
Common Stock, provided that the Company sells or withholds only the amount of
Common Stock necessary to satisfy the minimum withholding amount.  Finally, the Recipient agrees to pay the
Company or any Subsidiary of the Company any amount of any Tax that the Company
or any Subsidiary of the Company may be required to withhold as a result of the
Recipient’s participation in the Plan that cannot be satisfied by the means
previously described.  The Company may
refuse to deliver Common Stock if the Recipient fails to comply with its
obligations in connection with the tax as described in this section.

 

The Company advises the
Recipient to consult his or her lawyer or accountant with respect to the tax
consequences for the Recipient under the Plan.

 

The Company and/or any
Subsidiary of the Company: (a) make no representations or undertakings
regarding the tax treatment in connection with the Plan; and (b) do not commit
to structure the Plan to reduce or eliminate the Recipient’s liability for Tax.

 

12.          Securities Laws.  This award is a private offer that may be
accepted only by a Recipient who is an employee or director of the Company or a
Subsidiary of the Company and who satisfies the eligibility requirements
outlined in the Plan and the Committee’s administrative procedures.  If a Registration Statement under the
Securities Act of 1933, as amended, is not in effect with respect to the shares
of Common Stock to be issued pursuant to this Agreement, the Recipient hereby
represents that he or she is acquiring the shares of Common Stock for
investment and with no present intention of selling or transferring them and
that he or she will not sell or otherwise transfer the shares except in
compliance with all applicable securities laws and requirements of any stock
exchange on which the shares of Common Stock may then be listed.

 

6

 

13.          No Employment or
Compensation Rights.  Participation
in the Plan is permitted only on the basis that the Recipient accepts all of
the terms and conditions of the Plan and this Agreement, as well as the
administrative rules established by the Committee.  This Agreement shall not confer upon the Recipient
any right to continuation of employment by the Company or its Subsidiaries, nor
shall this Agreement interfere in any way with the Company’s or its
Subsidiaries’ right to terminate Recipient’s employment at any time.  Neither the Plan nor this Agreement forms any
part of any contract of employment between the Company or any Subsidiary and
the Recipient, and neither the Plan nor this Agreement confers on the Recipient
any legal or equitable rights (other than those related to the Restricted Stock
award) against the Company or any Subsidiary or directly or indirectly gives
rise to any cause of action in law or in equity against the Company or any
Subsidiary.

 

The Restricted Stock
granted pursuant to this Agreement does not constitute part of the Recipient’s
wages or remuneration or count as pay or remuneration for pension or other
purposes.  If the Recipient terminates
employment with the Company or any Subsidiary, in no circumstances will the
Recipient be entitled to any compensation for any loss of any right or benefit
or any prospective right or benefit under the Plan or this Agreement that he or
she might otherwise have enjoyed had such employment continued, whether such
compensation is claimed by way of damages for wrongful dismissal, breach of
contract or otherwise.

 

14.          Plan Terms and
Committee Authority.  This Agreement
and the rights of the Recipient hereunder are subject to all of the terms and
conditions of the Plan, as it may be amended from time to time, as well as to
such rules and regulations as the Committee (meaning the Compensation Committee
of the Board of Directors of the Company, as defined in the Plan) may adopt for
administration of the Plan.  It is
expressly understood that the Committee is authorized to administer, construe
and make all determinations necessary or appropriate for the administration of
the Plan and this Agreement, all of which shall be binding upon Recipient.  Any inconsistency between this Agreement and
the Plan shall be resolved in favor of the Plan.  The Recipient hereby acknowledges receipt of
a copy of the Plan and this Agreement.

 

15.          Governing Law and
Jurisdiction.  This Agreement is
governed by the substantive and procedural laws of the state of Michigan.  The Recipient and the Company agree to submit
to the exclusive jurisdiction of, and venue in, the courts in Michigan in any
dispute relating to this Agreement.

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed as of the Award Date.

 

 

[signature page
follows]

 

7

 

	
   

  	
  SPX CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RECIPIENT

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

8

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