Document:

Exhibit 10.1

 

Employment Agreement of Lee
S. Powell

 

This Employment Agreement (the “Agreement”) is effective as of January 31,
2008 (the “Effective Date”), by and between SPX Corporation (the “Company”) and
Leslie (“Lee”) S. Powell (the “Executive”).

 

WHEREAS, the Company desires to employ the Executive as its Segment
President, Industrial Products and Services; 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 and appointment as its Segment President, Industrial Products and
Services. During the Term (as hereinafter defined), the Executive will have the
title, status and duties of the Segment President, Industrial Products and
Services and will report directly to the Company’s Chief Executive Officer or
other senior executive officer. The Executive’s principal business office shall
be 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 Term.

 

2.                                       Term. The term of employment under this
Agreement (“Term”) will commence on the Effective Date, and will continue
thereafter until December 31, 2009; provided, however, that this Agreement
shall remain in effect and the Term shall be extended from year to year
thereafter unless, not less than one hundred eighty (180) days prior to December 31,
2009, or any subsequent December 31, either the Executive or the Company
delivers to the other written notice of his or its intention not to continue
this Agreement in effect, in which case this Agreement shall terminate as of December 31
of the year in which such notice is given; and provided further that, if a
Change in Control (as defined below) shall have occurred during the Term, this
Agreement shall continue in effect and the Term shall be extended until at
least the second anniversary of such Change in Control.

 

3.                                       Duties. During the 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 the
Segment President, Industrial Products and Services .

 

(b)                                 The Executive will
devote his full time and best efforts, talents, knowledge and experience to
serving as the Company’s Segment President, Industrial Products and Services. 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
Term strictly adhere to and obey all of the rules, regulations and policies 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. The Executive shall not
engage in consulting work or any trade or business on behalf of any other
person, firm or company that competes, conflicts or interferes with the
performance of his duties hereunder in any way.

 

4.                                       Compensation and Benefits. During the
Term, 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
Four Hundred Thousand Dollars ($400,000) effective as of January 1, 2008. The
Board, or such committee of the Board as is responsible for setting the
compensation of 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 2009. 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 written consent. The Company shall pay the Executive’s Base Salary
according to payroll practices in effect for all 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 officers,
including, but not limited to, the 2008 executive bonus plan (“Bonus Plan”) and
the SPX Corporation Stock Compensation Plan, all as the Board (or appropriate
Board committee) may determine from time to time in its discretion. For
the 2008 bonus plan year, the Executive shall be eligible for a target bonus
under the Company’s Bonus Plan equal to eighty percent (80%) 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 bonus plan participation and the applicable performance goals for
subsequent bonus plan years, no later than March 31 of such bonus plan
year.

 

(c)                                  Executive Benefit
Plans. The Executive will be eligible to participate 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, as the
Board may determine in its discretion. 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
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
similarly situated 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 officers, but in no event less than 5 weeks per calendar year. The
maximum vacation accrual allowed from year to year and at any given time will
equal Executive’s annual entitlement. Once the maximum accrual is reached,
Executive will no longer accrue vacation until the unused amount accrued is
below the maximum level allowed.

 

(g)                                 Retiree Medical.
The Executive shall be entitled to receive retiree medical benefits in
accordance with the eligibility requirements and plan offerings for access to
retiree medical benefits provided generally to full-time employees of the
Company. The Executive may cover his spouse or dependents eligible at the
time of retirement. The cost of such benefits for the Executive, his spouse and
eligible dependents, will be 100% of the premiums and shall be reimbursed by
the Company on an annual basis up to the date the Executive reaches Medicare
eligibility due to age, at which point such reimbursement shall cease. Depending
on the plan, all or a portion of the reimbursement may be taxable. Such
benefits shall include prescription drug coverage, but not dental or vision
benefits unless included in the medical plan. Upon reaching Medicare
eligibility due to age, Medicare shall become the primary payor of
medical/prescription benefits for the Executive, his spouse or eligible
dependents as applicable, and the reimbursement of premiums for such coverage
by the Company shall cease. The Company reserves the right to modify, suspend
or discontinue any and all retiree medical 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 officers;
provided that, if the Company terminates retiree access to medical and/or
prescription benefits generally for retirees, the Executive shall be entitled
to an annual reimbursement from the Company upon proof of continued coverage
for comparable medical and/or prescription coverage under an individual policy
or other group policy, subject to a maximum total reimbursement of one and
one-half times the applicable premium of the plan in effect at the time retiree
access is terminated at the applicable coverage level, and

 

 

subject to maximum annual inflation adjustment thereafter of five
percent (5%). Upon the death of the Executive, a surviving spouse will continue
eligibility and reimbursement as described above. Surviving dependent children
will not receive premium reimbursement beyond the COBRA continuation period. For
all other COBRA qualifying events other than the death of the Executive,
reimbursement will cease upon commencement of the COBRA continuation period.

 

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 Section 401(a)(13) of the Internal Revenue
Code of 1986, as amended (the “Code”); 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 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 will be deemed to be disabled upon the
earlier of (x) 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 (y) the date that a reputable physician selected
by the Company’s Chief Executive Officer, 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 request therefore
by the Chief Executive Officer, the Executive shall submit to medical
examination for the purpose of determining the existence, nature and extent of
any such disability. In accordance with Section 11, the Chief Executive
Officer shall promptly give the Executive written notice of any such
determination of the Executive’s disability and of any decision of the Chief
Executive Officer to terminate the Executive’s employment by reason thereof. In
the event of disability, until the date of

 

 

termination, the amount of Base Salary payable to the Executive under Section 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 death or disability, 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 Executive’s
Base Salary through the one-year anniversary of the employment termination and
annual incentive bonus, which will be determined as the highest of (A) the
actual incentive bonus paid for the bonus plan year immediately preceding such
termination, or (B) the target annual incentive bonus for the bonus plan
year in which such termination occurs.

 

(ii)                                  Continued coverage
under the Company’s medical, dental, vision, key manager life insurance and
pension through the one-year anniversary of the employment termination, 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 incentive bonus) through
the one-year anniversary of the employment termination 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 one year anniversary of the employment termination; 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 first 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 Section 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 Section. The Executive shall report to
the Company any such perquisites actually received by or made available to the
Executive.

 

 

(iv)                              The period through the
one-year anniversary of the Executive’s employment termination 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 pension plans to the maximum extent permitted by applicable law.

 

(v)                                 Any outstanding stock
options, restricted stock or other equity-based compensation awards that would
have vested during the period through the one year anniversary of the Executive’s
employment termination shall immediately vest upon such termination date, and
any Company stock options shall be immediately exercisable at any time prior to
the earlier of:  (A) one year; or (B) the
stock option expiration or other termination date, subject to applicable
insider trading policies and regulations.

 

(vi)                              Outplacement services, as
elected by the Executive (and with a firm selected by the Executive), not to
exceed $35,000 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) a material diminution in the Executive’s base compensation; (ii) a
material diminution in the Executive’s authority, duties, or responsibilities; (iii) a
material diminution in the budget over which the Executive retains authority; (iv) a
material change in the geographic location at which the Executive’s must perform the
services; or (v) any other action or inaction that constitutes a material
breach by the Company of this Agreement. The Executive’s must provide notice to
the Company of the existence of the condition described in above within a
period not to exceed ninety (90) days of the initial existence of the
condition, and the Company will have a period of at least thirty (30) days
following the notice during which it may remedy the condition. Any
termination for Good Reason must occur within two years following the initial
existence of one or more of the foregoing conditions.

 

(e)                                  Cause.
For purposes of this Agreement, “Cause” shall mean:  (i) the Executive’s willful and continued
failure to satisfactorily 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 performance is delivered to the
Executive, which demand specifically identifies the manner in which the
Executive has not satisfactorily performed his duties, and which gives the
Executive at least 30 days to cure such alleged deficiencies, (ii) the
Executive’s willful misconduct or dishonesty, which is demonstrably and
materially injurious to the Company, monetarily, reputationally, or otherwise, (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 officers of the Company, (iv) the Executive’s refusal or
failure to substantially comply with the Company’s human resources rules,
policies, directions and/or restrictions relating to harassment and/or
discrimination, or to substantially comply with the Company’s compliance or
risk management rules, policies, directions and/or restrictions (including,
without limitation, the Company’s Code of Business Conduct); (v) the
Executive’s loss of any license or registration that is necessary

 

 

for the Executive to perform his or her duties, or commits any act
that could result in the legal disqualification of the Executive from being
employed by the Company or a subsidiary; (vi) the Executive’s failure to
cooperate with the Company or a subsidiary in any internal investigation or
administrative, regulatory or judicial proceeding. The Executive’s employment
shall be deemed to have terminated for Cause if, after the Executive’s
employment has terminated, facts and circumstances are discovered that would have
justified a termination for Cause.

 

(f)                                    Non-Renewal.
If the Company gives written notice to the Executive of its intention not to
continue this Agreement in effect, in accordance with Section 2, and the
Executive remains employed until the December 31 termination of the
Agreement (and a Change in Control has not occurred that would extend the
Agreement), the Executive may deliver his written resignation to the
Company effective December 31, and the Company will continue the Executive’s
Base Salary for six (6) months following the December 31 effective
date of the Executive’s resignation.

 

(g)                                 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 30 days after the Executive has
signed the release required below in this Section 5, unless a longer
period is required 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.

 

(h)                                 Code Section 409A.
Each payment under Section 5(c) of this Agreement or any Company plan
is intended to be treated as one of a series of separate payments for
purposes of Code Section 409A and Treas. Reg. §1.409A-2(b)(2)(iii). Any
payment under Section 5(c) or the applicable Company plan that does
not qualify as a short-term deferral under Code Section 409A and Treas.
Reg. §1.409A-1(b)(4) or a limited payment under Treas. Reg.
§1.409A-1(b)(9)(v)(D) (or any similar or successor provisions) will be
subject to the Six-Month Delay Rule if the Executive is a Specified
Employee as of his Separation from Service. Payments to which the Executive
otherwise would be entitled during the Six-Month Delay will be accumulated and
paid on the first day of the seventh month following his Separation from
Service. Notwithstanding the Six-Month Delay Rule, to the maximum extent
permitted under Code Section 409A and Treas. Reg. §1.409A-1(b)(9)(iii) (or
any similar or successor provisions), during the Six-Month Delay, the Company
will pay the Executive an amount equal the lesser of (A) the total
severance scheduled to be provided under Section 5(c) above, or (B) two
times the lesser of (1) the maximum amount that may be taken into
account under a qualified plan pursuant to Code Section 401(a)(17) for the
year in which the Executive’s Separation from Service occurs, and (2) the
sum of the Executive’s annualized compensation based upon the annual rate of
pay for services provided to the Company for the taxable year of the Executive
preceding the taxable year of the Executive in which his Separation from
Service occurs; provided that amounts paid under this sentence will count
toward, and will not be in addition to, the total payment amount required to be
made to the Executive

 

 

by the Company under Section 5(c) above and any applicable
Company plan. For purposes of this Agreement:

 

(i)                                     “Separation from
Service” or “Separates from Service” means the Executive’s death, retirement or
termination of employment from the Company within the meaning of 409A. For
purposes of determining whether a Separation from Service has occurred,
subsidiaries and affiliates of the Company are only those included by using the
language “at least eighty percent (80%)” to define the controlled group under
Code Section 1563(a) in lieu of the fifty percent (50%) default rule stated
in Treasury Regulation §1.409A-1(h)(3). A Separation from Service is deemed to
include a reasonably anticipated permanent reduction in the level of services
performed by the Executive, to less than fifty percent (50%) of the average
level of services performed by the Executive during the immediately preceding
36-month period.

 

(ii)                                  “Specified Employee”
has the meaning given that term in Code Section 409A and Treas. Reg.
1.409A-1(c)(i) (or any similar or successor provisions). The Company’s “specified
employee identification date” (as described in Treas. Reg. 1.409A-1(c)(i)(3))
will be December 31 of each year, and the Company’s “specified employee
effective date” (as described in Treas. Reg. 1.409A-1(c)(i)(4) or any
similar or successor provisions) will be April 1 of each succeeding year.

 

(i)                                     Change in
Control. For purposes of this Agreement, “Change in Control” shall have the
meaning given to such term in the SPX Corporation Stock Compensation Plan, or
any similar or successor plan.

 

(j)                                     Release. As
a condition of receiving the payments and benefits provided for in this Section 5,
the Executive shall be required to execute (and not revoke during any
legally-required revocation period), prior to receiving any such payments and
benefits, a release in a form provided by the Company, of all claims
against the Company, including but not limited to any and all claims arising
out of contract (written, oral, or implied in law or in fact), tort (including
negligent and intentional acts), or state, federal or local law (including discrimination
on any basis whatsoever). For the avoidance of doubt, such release will not
adversely affect the Executive’s ability to enforce the terms of this
Agreement, his indemnification rights under the Company’s by-laws [and
Agreement], his rights to coverage under the Company’s directors and officers
liability insurance, his and his covered dependents’ rights to COBRA
continuation coverage, and his rights to vested employee benefits.

 

6.                                       Recapture of Certain Incentive Compensation. If the Company is required to prepare an accounting
restatement due to the material noncompliance of the Company, during the Term,
as a result of misconduct, with any financial reporting requirement under the
securities laws, the Executive shall reimburse the Company, promptly upon
notice and demand, for (a) any bonus or other incentive-based or
equity-based compensation received from the Company during the twelve (12-)
month period following the first public issuance or filing with the Securities
and Exchange Commission, whichever occurs first, of the financial document
embodying such

 

 

financial reporting
requirement; and (b) any profits realized from the sale of securities of
the Company during that twelve (12-) month period.

 

7.                                       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.

 

8.                                       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.

 

9.                                       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.

 

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

 

11.                                 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 which 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.

 

12.                                 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.

 

13.                                 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 February 21, 2008 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.

 

14.                                 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.

 

15.                                 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 or 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.

 

16.                                 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 another source

 

17.                                 Code Section 409A. It is intended
that any amounts payable under this Agreement and the Company’s and the
Executive’s exercise of authority or discretion hereunder shall comply with the
provisions of Code Section 409A and the treasury regulations relating
thereto so as not to subject the Executive to the payment of interest and tax
penalty that may be imposed under Code Section 409A. In furtherance
of this interest, (a) the parties intend that the terms and provisions of
this Agreement be interpreted and applied in a manner that satisfies the
requirements and exemptions of Code Section 409A, and (b) to the extent
that any regulations or other guidance issued under Code Section 409A
after the date of this Agreement would result in the Executive being subject to
payment of interest and tax penalty under Code Section 409A, the parties
agree to amend this Agreement in order to bring this Agreement into compliance
with Code Section 409A.

 

 

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

 

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

 

20.                                 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 as of the date shown below.

 

 

	
  EXECUTIVE
  ACCEPTANCE

  	
  SPX
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/

  	
  Lee
  S. Powell

  	
   

  	
  By:

  	
   

  	
  /s/
  Christopher J. Kearney

  
	
   

  	
  Lee
  S. Powell

  	
   

  	
   

  	
  Christopher
  J. Kearney

  
	
   

  	
   

  	
  Its: 

  	
  Chairman, President and

  
	
   

  	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  26
  February 2008Exhibit
10.2

 

 

 

February 21, 2008

 

Mr. Leslie S. Powell

13515 Ballantyne Corporate Place

Charlotte, NC 28277

 

Dear Lee:

 

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 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 (“Agreement”) in the event that your employment is terminated
due to a Change of Control.

 

1.                                       Term
of Agreement. This Agreement will become effective on the date hereof (the “Commencement
Date”) 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.

 

(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:

 

2

 

(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 (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 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

 

3

 

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).

 

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

 

4

 

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;

 

(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;

 

5

 

(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.

 

(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.

 

6

 

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 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.

 

7

 

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

 

(viii)                      The payments
provided for in paragraphs (i), (ii), (iii), (iv) and (v), above, shall be
made not later than the tenth (10th) business day following the Date

 

8

 

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 the Company, 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 Internal Revenue Code
of 1986, as amended (the “Code”)) as soon as the amount thereof can be
determined but in no event later than the thirtieth (30th) calendar day after
the Date of Termination. In the event that the amount of the estimated payments
exceeds the amount subsequently determined to have been due, such excess shall
constitute a loan by the Company to you payable on the tenth (10th) business
day after demand by the Company (together with interest at the rate provided in
Section 1274(b)(2)(B) of the Code).

 

(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

 

9

 

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 Termination, and any such
benefits actually received by you shall be reported to the Company;

 

(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;

 

(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 through an additional unfunded
arrangement at the same time and in the same manner as you have elected under
the Pension Plan;

 

(vi)                            Under
the Company’s Supplemental Retirement Savings Plan, you will receive a cash
lump sum payment of the full balance (vested and unvested);

 

(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;

 

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

 

10

 

(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.

 

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,

 

11

 

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 constitute a loan by the Company to you
payable on the twentieth (20th) calendar day after demand by the Company
(together with interest at the rate provided in Section 1274(b)(2)(B) of
the Code). 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.

 

(xi)                            You
will be entitled to receive outplacement services, at the expense of the
Company, from a provider reasonably selected by you.

 

(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); and

 

(xiii)                      The payments provided in
paragraphs (i), (ii), (v) if a lump sum is elected, (vi) and (xii),
above, shall be made not later than the tenth (10th) business day following the
Date of Termination, provided, however, that if the

 

12

 

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 the Company, 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 the thirtieth (30th) day after the Date of Termination. In the event that
the amount of the estimated payments exceeds the amount subsequently determined
to have been due, such excess shall constitute a loan by the Company to you
payable on the tenth (10th) business day after demand by the Company (together
with interest at the rate provided in Section 1274(b)(2)(B) of the
Code). 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 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).

 

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

 

13

 

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.

 

(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.

 

14

 

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.

 

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.

 

15

 

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.

 

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  SPX CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/

  	
  Lee S. Powell

  	
   

  	
   

  	
  By:

  	
  /s/ Christopher J.
  Kearney

  
	
   

  	
  Lee S. Powell

  	
   

  	
   Christopher J.
  Kearney

  
	
   

  	
   

  	
   

  	
  Chairman, President and

  
	
   

  	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Agreed to this 26th day

  
	
   

  	
   

  	
   

  	
  of February, 2008.

  
							

 

16

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