Document:

Exhibit
10.1

 

AMENDMENT
TO THE SPX CORPORATION

1997 NON-EMPLOYEE DIRECTORS’ COMPENSATION PLAN

 

Pursuant to the powers of amendment reserved in
Section 10 of the SPX Corporation 1997 Non-Employee Directors’ Compensation
Plan (the “Plan”), effective as of December 31, 2004, SPX Corporation hereby
amends the Plan in the following manner:

 

1.     Section 1.2 is amended to by replacing the first sentence with
the following:

 

“In conjunction with the
SPX Corporation 2005 Non-Employee Directors’ Compensation Plan, the purpose of
the Plan is to advance the interests of the Company and its shareholders by
providing a compensation program for Non-Employee Directors.”

 

2.     Section 8 is amended by inserting the current paragraph thereof
into a new subsection 8.1.

 

3.     Section
8.1 is amended by (i) replacing “on and after the Effective Date” with “on and
after the Effective Date, but before January 1, 2005”, and (ii) inserting “provided
hereunder” after each “Cash Payment”.

 

4.     Section 8.1 is amended to by adding the following:

 

“Nothing herein shall be
construed to prevent the amount payable for 2004 to the Non-Employee Director
with respect to the EVA Plan Bonus Multiple from being determined and paid in
2005.”

 

5.     Section 8 is amended by the addition of the following subsection
8.2:

 

“8.2
With respect to service during each calendar year (or portion thereof) after
December 31, 2004, each Non-Employee Director shall be entitled to receive a
flat fee retainer payment at an annual rate of $60,000 (prorated for partial
years of Board membership).  Payment of
all or a portion of the Cash Payment described hereunder otherwise payable to a
Non-Employee Director may be deferred as specified by a timely election filed
by the Non-Employee Director with the Company. 
The amount of Cash Payment so deferred shall be credited to an Account
established pursuant to Section 5 hereof as Deferred Mutual Fund Units as
provided in the Non-Employee Director’s deferral election based on the value of
the mutual fund shares or other security underlying such Deferred Mutual Fund
Units on the date of the deferred Cash Payment would otherwise
have been made.  Such amounts shall
thereafter be subject to the provisions of Section 5 and 6 hereof relating to
Deferred Mutual Fund Units, dividends thereon, and distribution thereof.  The deferral of Cash Payment provided under
this subsection 8.2 shall be subject to Code Section 409A.”

 

6.     Section 9.2(a) is amended by replacing “Section 8” with “subsection
8.1”.

 

 

7.     Section 11.2 is amended by revising the first sentence to read
as follows:

 

“Neither a Non-Employee
Director nor any other person shall have any interest in any fund or in any
specific asset of the Company by reason of amounts credited to the Account of
such Non-Employee Director, any Cash Payments entitled to pursuant to Section
8, or any Director Options granted to such Non-Employee Director under the
Plan, nor the right to exercise any of the rights or privileges of a
shareholder with respect to any Deferred Mutual Fund Units credited to such
Account or any granted Director Options, nor the right to receive any
distribution under the Plan except as expressly provided herein.”

 

8.     Section 11.6 is amended by adding the following:

 

“Without limiting the
foregoing, the election of any Non-Employee Director to defer cash payments,
including Cash Payments made pursuant to Section 8, shall be made and filed in
accordance with procedures and forms set by the Board, and the timeliness of
such elections shall be determined by the Board.  Any deferral elections shall be made in
accordance with the applicable requirements of Code Section 409A and guidance
promulgated thereunder.”Exhibit 10.2

SPX CORPORATION

2005 NON-EMPLOYEE DIRECTORS’

COMPENSATION PLAN

 

SECTION 1.  ESTABLISHMENT OF PLAN

 

1.1           Establishment.  SPX Corporation, a Delaware corporation,
hereby establishes the “SPX CORPORATION 2005 NON-EMPLOYEE DIRECTORS’
COMPENSATION PLAN” (the “Plan”).  The
Plan provides for compensation of the Company’s Non-Employee Directors.

 

1.2           Purpose.  In conjunction with the SPX Corporation 1997
Non-Employee Directors’ Compensation Plan, the purpose of the Plan is to
advance the interests of the Company and its shareholders by providing a
compensation program for Non-Employee Directors.  Such program utilizes, in part, Performance
Shares where the vesting of such Performance Shares depends on certain performance
thresholds, thereby presenting a strong incentive to enhance shareholder
value.  By thus compensating Non-Employee
Directors, the Company seeks to attract, retain, compensate and motivate those
highly competent individuals whose judgment, initiative, leadership, and
efforts are important to the continued success of the Company.

 

1.3           Effective Date.  The effective date of the Plan is February 28, 2005.

 

SECTION 2.  DEFINITIONS

 

As used
herein, the following terms shall have the meanings hereinafter set forth:

 

(a)           “Board” means the board of directors
of the Company.  

 

(b)           “Change of Control” means the
occurrence of one of the following:

 

(i)            any person, entity or group (within
the meaning of Sections 13(d) and 14(d) of the Exchange Act), excluding, for
this purpose, the Company or any subsidiaries, any employee benefit plan of the
Company or its subsidiaries which acquires beneficial ownership of voting
securities of the Company, is or becomes the “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly of securities of the
Company representing fifteen percent (15%) or more of the combined voting power
of the Company’s then outstanding securities; provided, however, that no Change
of Control shall be deemed to have occurred as the result of an acquisition of
securities of the Company by the Company which, by reducing the number of
voting securities outstanding, increases the direct or indirect beneficial
ownership interest of any person to fifteen percent (15%) or more of the
combined voting power of the Company’s then outstanding securities, but any
subsequent increase in the direct or indirect beneficial ownership interest of
such/a person in the Company shall be deemed a Change of Control; and provided
further that if the Board determines in good faith

 

1

 

that a person who has become the beneficial
owner directly or indirectly of securities of the Company representing fifteen
percent (15%) or more of the combined voting power of the Company’s then
outstanding securities has inadvertently reached that level of ownership
interest, and if such person divests as promptly as practicable a sufficient
amount of securities of the Company so that the person no longer has a direct
or indirect beneficial ownership interest in fifteen percent (15%) or more of
the combined voting power of the Company’s then outstanding securities, then no
Change of Control shall be deemed to have occurred; or

 

(ii)           during any period of two (2)
consecutive years (not including any period prior to the Effective Date),
individuals who at the beginning of such two-year period constitute the Board
and any new director (except for a director designated by a person who has
entered into an agreement to effect a transaction described elsewhere in this
subsection (b)) whose election by the Board or nomination for election by the
Company’s shareholders was approved by a vote of at least two-thirds (2/3) of
the directors then still in office who either were directors at the beginning
of the period or whose election or nomination of election was previously so
approved, cease for any reason to constitute at least a majority thereof; or 

 

(iii)          the shareholders of the Company
approve a plan of complete liquidation of the Company, an agreement for the
sale or other disposition by the Company of all or substantially all of the
Company’s assets, or a plan of reorganization, merger or consolidation of the
Company with any other corporation, except for a reorganization, merger or
consolidation in which the security owners of the Company immediately prior to
the reorganization, merger or consolidation continue to own at least
eighty-five percent (85%) of the voting securities of the new (or continuing)
entity immediately after such reorganization, merger or consolidation.

 

(c)           “Code” means the Internal Revenue
Code of 1986, as amended. References to any Section of the Code shall include
any successor provision thereto and applicable regulations or guidance
thereunder.  

 

(d)           “Company” means SPX Corporation, a
Delaware corporation.

 

(e)           “Effective Date” means February 28, 2005.

 

(f)            “Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

(g)           “Fair Market Value” means, as to any
date, the closing price of a share of SPX Common Stock as reported in the “NYSE-Composite
Transactions” Section of the Midwest Edition of The Wall Street Journal for
such date or, if no prices are quoted for such date, on the next preceding date
on which such prices of SPX Common Stock are so quoted.

 

2

 

(h)           “Non-Employee Director” means any
person who is a member of the Board and who is not, as of the date of an award
under the Plan, an employee of the Company or any of its subsidiaries.

 

(i)            “Performance Share” means the
expression on the Company’s books which is equivalent to one SPX Share.

 

(j)            “Return Condition” means, for the
applicable measurement period, that the Total Shareholder Return exceeds the
S&P Return.  

 

(k)           “S&P Return” means the percentage
return of the S&P 500 Composite Index (using total shareholder return of
the S&P 500 Composite Index as reported by Interactive Data Corporation)
during the applicable measurement period.

 

(l)            “SPX Common Stock” or “SPX Share”
means the common stock, par value $10.00 per share, of the Company.

 

(m)          “Total Shareholder Return” means the
percentage change in the Fair Market Value of one SPX Share (using total
shareholder return of the SPX Common Stock as reported by Interactive Data
Corporation) during the applicable measurement period.

 

SECTION 3.  ELIGIBILITY

 

Each
Non-Employee Director as of the Effective Date and each person who becomes a
Non-Employee Director after the Effective Date shall be eligible to participate
in the Plan.  Upon the date on which any
such person ceases to be a Non-Employee Director, such person shall not be
eligible to participate in the Plan thereafter.

 

SECTION 4.  PERFORMANCE SHARES

 

4.1           Grant & Vesting Schedule.  With respect to service during each calendar
year after December 31, 2004, each Non-Employee Director shall receive a grant
of 2,500 Performance Shares on January 1 of each calendar year (or such other
date as the Board may provide) that shall vest (provided the Non-Employee
Director is still a member of the Board as of the applicable date) as follows:

 

(a)           One-third (1/3) of the Performance
Shares granted shall vest on:

 

(i)                                   the
first anniversary of the grant date if the Return Condition is met for the
measurement period dating from the grant date to the day immediately preceding
such first anniversary date; or, if such Return Condition is not met,

 

3

 

(ii)                                the
second anniversary of the grant date if the Return Condition is met for the
measurement period dating from the grant date to the day immediately preceding
such second anniversary date; or, if such Return Condition is not met,

 

(iii)                             the
third anniversary of the grant date if the Return Condition is met for the
measurement period dating from the grant date to the day immediately preceding
such third anniversary date.

 

(b)           One-third (1/3) of the Performance
Shares granted shall vest on:

 

(i)                                     the
second anniversary of the grant date if the Return Condition is met for the
measurement period dating from the first anniversary of the grant date to the
day immediately preceding such second anniversary date; or, if such Return
Condition is not met,

 

(ii)                                  the
third anniversary of the grant date if the Return Condition is met for the
measurement period dating from the first anniversary of the grant date to the
day immediately preceding such third anniversary date.

 

(c)                                  One-third
(1/3) of the Performance Shares granted shall vest on the third anniversary of
the grant date if the Return Condition is met for the measurement period dating
from the second anniversary of the grant date to the day immediately preceding
such third anniversary date.

 

Notwithstanding
the foregoing, for purposes of determining the vesting measurement periods (and
applicable vesting dates, if any) of any Performance Shares granted to Non-Employee
Directors in 2005, the grant date of such Performance Shares shall be deemed to
be January 1, 2005.

 

4.2           Forfeiture.  Any unvested Performance Shares shall be
forfeited and cancelled upon the earlier of (i) the date on which the
Non-Employee Director ceases to be a member of the Board for any reason other
than death or disability, or (ii) the third anniversary of the applicable grant
date if the applicable Return Condition(s) was not met as provided above.  Notwithstanding the foregoing, any unvested
Performance Shares (which have not been forfeited and cancelled pursuant to the
preceding sentence) shall vest upon the earlier of (i) the death or disability
of the Non-Employee Director, or (ii) a Change of Control.

 

4.3           Payout.  Upon the vesting of any Performance Shares,
the Performance Shares shall be paid out in cash on the applicable vesting date
(or as soon as administratively feasible thereafter).  The cash payment shall equal the Fair Market
Value, determined as of the applicable vesting date, of the number of SPX
Shares that are equal to the applicable number of Performance Shares that are
vesting on such vesting date.

 

4.4           Adjustment in Capitalization.  In the event of any change in the outstanding
shares of SPX Common Stock that occurs after the Effective Date by reason of a
SPX Common Stock dividend or split, recapitalization, merger, consolidation,
combination, exchange of shares,

 

4

 

or other similar corporate
change, the aggregate number of Performance Shares to be granted or outstanding
pursuant to Section 4 hereof shall be appropriately adjusted by the Board,
whose determination shall be conclusive; provided, however, that fractional
Performance Shares shall be rounded to the nearest whole Performance Share.

 

4.5           Dividends.  No dividends or dividend equivalents are
payable on Performance Shares.

 

SECTION 5.  AMENDMENT AND TERMINATION

 

The Board
reserves the right to modify, amend or terminate this Plan in whole or in part,
effective as of any specified date.  The
Plan shall continue in effect without limit unless and until the Board
otherwise determines.

 

SECTION 6.  MISCELLANEOUS

 

6.1           Administration.  The Board shall have complete power and
discretionary authority to interpret and administer the Plan, and make factual
determinations thereunder, including the power to determine the rights or
eligibility of Non-Employee Directors and any other persons, and the amounts of
their benefits under the Plan, and to remedy ambiguities, inconsistencies or omissions,
and any such interpretations and determinations shall be conclusive and binding
on all parties.  The Board may establish
such rules and regulations with respect to the proper administration of the
Plan as it may determine, and may amend or revoke any rule or regulation so
established.  No benefits shall be
payable from this Plan if the Board determines in its sole discretion that such
person is not entitled to such benefits.

 

6.2           Delegation.  The Board has the authority to delegate any
of its powers under this Plan to any other person, persons, or committee.  This person, persons, or committee may
further delegate its reserved powers to another person, persons, or committee
as they see fit.  Any delegation or
subsequent delegation shall include the same full, final and discretionary
authority that the Board has listed herein and any decisions, actions or
interpretations made by any delegate shall have the same ultimate binding
effect as if made by the Board.

 

6.3           Rights of Directors.  Neither the Plan nor any action taken
hereunder shall be construed as giving any Non-Employee Director any right to
continue to serve as a member of the Board or otherwise to be retained in the
service of the Company.

 

6.4           Funding Not Required.

 

(a)           Neither a Non-Employee Director nor
any other person shall have any interest in any fund or in any specific asset
of the Company by reason of any Performance Shares granted to such Non-Employee
Director, nor the right to exercise any of the rights or privileges of a
shareholder with respect to any Performance Share

 

5

 

granted to a Non-Employee Director, nor the
right to receive any distribution under the Plan except as expressly provided
herein.

 

(b)           Distributions hereunder shall be made
from the general funds of the Company or from a grantor trust established (at
the Company’s discretion) for purposes of assuring that funds will be available
to satisfy the obligations of the Company with respect to the payments
hereunder, and the rights of the Non-Employee Director (or any other person)
shall be those of an unsecured general creditor of the Company.  If such grantor trust is established,
however, individuals entitled to benefits hereunder shall not have any
identifiable interest in any such funds, accounts or assets of such trust nor
shall such individuals be entitled to any preference or priority with respect
to the assets of such trust.  The assets
of the grantor trust would still be available to judgment creditors of the
Company and to all creditors in the event of the Company’s insolvency or
bankruptcy.

 

6.5           Non-Alienation.  Performance Shares may not be sold,
transferred, pledged, assigned, encumbered or otherwise alienated or
hypothecated, whether voluntarily or involuntarily or by operation of law;  any attempt to anticipate, alienate, sell,
transfer, assign, pledge, or encumber in contradiction of this provision shall
be void.

 

6.6           Tax Withholding.  The Company may withhold from the
distribution of any payment hereunder the amount necessary to satisfy the
participant’s federal, state and local withholding tax requirements.

 

6.7           Indemnification.  Each person who is or shall have been a
member of the Board shall be indemnified and held harmless by the Company
against and from any loss, cost, liability or expense that may be imposed upon
or reasonably incurred by him in connection with or resulting from any claim,
action, suit or proceeding to which he may be a party or in which he may be
involved by reason of any action taken or failure to act under the Plan and
against and from any and all amounts paid by him in settlement thereof, with
the Company’s approval, or paid by him in satisfaction of any judgment in any
such action, suit or proceeding against him, provided he shall give the Company
an opportunity, at its expense, to handle and defend the same before he
undertakes to handle and defend it on his own behalf.  The foregoing right of indemnification shall
not be exclusive of any other rights of indemnification to which such persons
may be entitled under the Company’s Certificate of Incorporation or Bylaws, as
a matter of law or otherwise, or any power that the Company may have to
indemnify them or hold them harmless.

 

6.8           Requirements of Law.  The Plan and any Performance Share grants
shall be subject to all applicable laws, rules and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may
be required.

 

6.9           Governing Law.  The Plan shall be construed in accordance
with and governed by the laws of the State of Delaware.

 

6.10         Construction.  In the construction of the Plan, the
masculine shall include the feminine and the singular shall include the plural
in all cases where such meanings would be appropriate.

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]