Document:

Exhibit
10.1

Employment Agreement of Sharon Jenkins

This Employment Agreement (the “Agreement”) is
effective as of the date of execution shown below (the “Effective Date”), by
and between SPX Corporation (the “Company”), and Sharon Jenkins (the “Executive”).

WHEREAS, the Company desires to employ the Executive
as its Vice President, Chief Marketing Officer; and

WHEREAS, the Company and the Executive have reached
agreement concerning the terms and conditions of her 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 Vice President, Chief Marketing
Officer.  During the Employment Term (as
hereinafter defined), the Executive will have the title, status and duties of the
Vice President, Chief Marketing Officer and will report directly to the Company’s
Chief Executive Officer or other designated senior 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
her principal family residence to the area specified in this Paragraph.  Executive’s failure to complete such
relocation on or before February 28, 2007 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 one (1) year 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 one-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 the
Vice President, Chief Marketing Officer.

 

(b)                                 The
Executive will devote her full time and best efforts, talents, knowledge and
experience to serving as the Company’s Vice President, Chief Marketing
Officer.  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 her in connection with such activities (e.g., director fees and honoraria).

(c)                                  The
Executive will perform her 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 her own
account or for or on behalf of any other person, firm or company that competes,
conflicts or interferes with the performance of her 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 Three Hundred Twenty Five
Thousand Dollars ($325,000).  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 2007.  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 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
2006 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 2006 bonus plan year, the Executive shall be eligible for a
target bonus under the Company’s Bonus Plan equal to 80% of her 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 

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Executive her
annual bonus plan participation 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.  The Company will also provide 80%
reimbursement of up to $20,000 per year for annual income tax return
preparation and financial planning cost up.

(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 her spouse or
dependents eligible at the time of retirement. 
The cost of such benefits for the Executive, her 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, her spouse or
eligible dependents as applicable, and the reimbursement of premiums for such
coverage by the Company shall cease.  In
the event that 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 

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is terminated at
the appropriate coverage level, and subject to maximum annual inflation
adjustment thereafter of five (5) percent. 
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 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 her 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 (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 her 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, 

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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 her 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
she 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 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 her 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
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 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.

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(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) one year; or (B) the stock
option expiration or other termination date.

(vi)                              Outplacement
services, as elected by the Executive (and with a firm elected 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) assigning duties to the Executive that are
inconsistent with those of the position of Vice President, Chief Marketing
Officer 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,
other senior 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; or (iv) 
the Company’s failure to continue in effect any applicable 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 her 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 her 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 her
credibility and reputation no longer conforms to the standard of 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 

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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 her 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.

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 

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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 October 2, 2006 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 she 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.

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.

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IN WITNESS WHEREOF, the parties have executed this Agreement effective as
of the date shown below.

 

	
  EXECUTIVE ACCEPTANCE

  	
                          SPX CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/Sharon
  Jenkins

  	
   

  	
  By: 

  	
  /s/Christopher J.
  Kearney

  	
   

  
	
  Sharon Jenkins

  	
   

  	
   

  	
  Christopher J. Kearney

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its: President and
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  Date:

  	
  10/3/06

  	
   

  
							

 

 9Exhibit 10.2

 

October 2, 2006

 

Mr. Sharon Jenkins

106 Alexander Circle

Columbia, South Carolina 29206

Dear Sharon:

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:

(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);

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(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 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.

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(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, her or its, as the case may be, ownership interest in the
Company or a successor to the Company (other than through conversion of prior
ownership interests in the Company and/or through equity awards received entirely
as compensation for past or future personal services).

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

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

 4
 

 

(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;

(iv)                              The
failure by the Company to continue in effect the Company’s Pension Plan,
Retirement Savings Plan, 

 5
 

 

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.

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.

 6
 

 

(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 for which
the Executive EVA Incentive Compensation Plan (the “EVA Plan”) is in effect
prior to the year during which a Change of Control occurs, your “Earned Bonus
Amount” means your Declared Bonus for that year (as determined under the
applicable EVA Plan).  For the year
during which a Change of Control occurs and any year in which the EVA Plan was
not in effect, your “Earned Bonus Amount” means your total potential bonus for
the year as determined under the 2006 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
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 

 8
 

 

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 normally computed under the terms of
the Plan.  Health care benefits otherwise
receivable by you pursuant to this subparagraph (iii) shall be 

 9
 

 

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, as determined in good faith by such tax counsel, of the
minimum amount of 

 11
 

 

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 amounts of
such payments cannot be finally determined on or before such 

 12
 

 

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 expressly assume and agree to perform this Agreement in the same manner
and to the 

 13
 

 

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.

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 

 14
 

 

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

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/Sharon
  Jenkins

  	
   

  	
  By

  	
  /s/Christopher J.
  Kearney

  	
   

  
	
   

  	
      Sharon Jenkins

  	
   

  	
   

  	
  Christopher J. Kearney

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
         President and

  
	
   

  	
   

  	
         Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
            Agreed
  to this 3rd day

  
	
   

  	
   

  	
            of October 2006.

  

 

 16

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