Document:

Exhibit 10.3

 

 

January 5, 2006

 

Mr. Kevin Lilly

13515 Ballantyne Corporate
Place

Charlotte, North Carolina 28277

 

Dear Kevin:

 

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:

 

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(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

 

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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 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 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.

 

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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

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ Kevin L.
  Lilly

  	
   

  	
  By

  	
   /s/Christopher
  J. Kearney

  	
   

  
	
   

  	
  Kevin Lilly

  	
   

  	
  Christopher
  J. Kearney

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  President
  and

  
	
   

  	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Agreed to
  this 6th day

  
	
   

  	
   

  	
  of January,
  2006.

  
						

 

16Exhibit 10.4

 

	
   

  	
   

  	
  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  13515
  Ballantyne Corporate Place

  
	
   

  	
   

  	
  Charlotte,
  North Carolina 28277

  

 

December 31, 2005

 

Mr. Ross Bricker

13515 Ballantyne
Corporate Place

Charlotte, North Carolina
28277

 

Dear Ross:

 

As mutually agreed
between you and SPX Corporation (the “Company”), your employment with the
Company ended effective as of December 31, 2005 (your “Separation Date”).  At the conclusion of your employment, the
Company desires to retain your Services (as hereinafter defined in Section 3)
as a consultant for a specified time-period in order to make adequate
provisions for the orderly transition of your prior responsibilities, and to
assure that other personnel are identified and trained to assume responsibility
for, and to further insure the maintenance and integrity of, the Company’s
legal function, and your other prior responsibilities.  This letter (hereinafter the “Agreement”)
sets forth the terms and conditions applicable to your separation from the
Company and ongoing consulting services.

 

1.                                      Bonus and Equity Incentive Compensation

 

Based on your service with the Company, you will be
eligible to receive a bonus under the 2005 Executive Bonus Plan, based on full
year business performance and prorated according to the number of days you
worked for the Company in the 2005 plan year, and payable at the time such
bonuses are paid to participants generally. 
Restrictions lapse as of December 31, 2005 on 8,333 shares of your April 11,
2005 restricted stock award subject to confirmation by the Compensation Committee
of the Company’s Board of Directors that the performance criteria have been
met, and you will be entitled to those shares in accordance with the terms and
conditions contained in your 2005 Restricted Stock Award Agreement.  Other restricted stock shares granted to you
by the Company are not vested as of your Separation Date and will be forfeited.

 

2.                                      Employee
Benefits

 

The attached Exhibit A summarizes the status of
your employee benefits following your Separation Date.  Most of your employee benefits terminate as
of your last day of active work, although your medical, dental, and vision
coverage (if applicable) continue through the end of the month during which
your last day of active work occurred. 
Please be aware that you will be entitled to receive certain benefits as
noted in Exhibit A, provided you take the steps described in the
Exhibit.  It is important that you read
this information.

 

1

 

Except as expressly provided in this Agreement,
payments or reimbursements in respect of country club dues, fees or other costs
or allowances shall cease effective as of your Separation Date.  Subject to the terms and conditions contained
in this Agreement and your full compliance with all obligations hereunder, you
will not be obligated to repay relocation expenses previously paid or
reimbursed by the Company.

 

You acknowledge that the
payments and benefits specified in this Agreement exceed in value any payments
and benefits to which you may already be entitled, and that this Agreement
otherwise is supported by good and sufficient consideration.

 

3.                                      Consulting
Period

 

From January 1, 2006
through March 31, 2006, unless sooner terminated as provided below (the “2006
Consulting Period”), the Company agrees to retain, and you agree to provide,
your Services (as defined below), which are to be provided as an independent
contractor of the Company.  Throughout
the 2006 Consulting Period, you shall work for or on behalf of the Company and
its affiliates to provide such advice, counsel or other assistance as is
requested by the Company, and you shall remain available to do so at all
relevant times (the “Services”).  You
shall be compensated at the rate of $ 41,667.00 per month for each month of the
2006 Consulting Period, which shall constitute your total and exclusive
compensation for providing the Services during this period.  Unless agreed upon at the Company’s sole
discretion and confirmed in writing by the Company’s General Counsel or the
undersigned, you shall work solely and exclusively for the Company and its
affiliates during the 2006 Consulting Period.

 

The Company may terminate
the Services immediately upon written notice to you if you breach this
Agreement or fail to diligently perform under all assigned projects within the
time periods mutually agreed upon.  Upon
such termination the Company shall have no further obligation to you in
relation to the Services from and after the date of such breach or failure.

 

From and after February 14,
2006, the Company may terminate the Services for any or no reason upon 14 days’
written notice.  From and after the
effective date of such termination, the Company shall have no further
obligation to you in relation to the Services other than any compensation owed
for the period prior to the effective date (on a prorated per diem basis).

 

Except as provided in Exhibit A
to this agreement relating to the termination of your employment with the
Company, during the 2006 Consulting Period you will not be entitled to any of
the rights and benefits customarily extended to Company’s employees, including,
without limitation, pension, 401(k), deferred compensation and health and
welfare benefits.

 

4.                                      Release

 

By signing this
Agreement, you release the Company from any known or unknown, asserted
or unasserted claims that you may have against the Company.

 

2

 

You are giving this
release on behalf of yourself and your heirs, personal representatives, assigns
or any other person who could make a claim based upon your employment
relationship with the Company.

 

The release applies to
the Company and its subsidiaries, business units, divisions and affiliates, as
well as their current and former directors, board of directors, managers,
officers, shareholders, agents, representatives, attorneys, employees,
successors, predecessors and assigns. 
These parties are together called the “Released Parties” in this
Agreement.  Except to the extent provided
herein, the release also includes any employee benefit plans or funds sponsored
or administered by the Company (except that it does not apply to claims for
vested benefits, if any, arising from Company-sponsored retirement plans).

 

This is a general and
complete release that applies to any claim, known or unknown, asserted or
unasserted, and waives any claim to further compensation or benefits.  It includes claims relating to your
employment with and termination of employment with the Company.

 

This release specifically
applies to claims under Title VII of the Civil Rights Act of 1964, the Civil
Rights Act of 1991, the Americans with Disabilities Act, the Worker Adjustment
and Retraining Notification Act, the Employee Retirement Income Security Act of
1974, 42 U.S.C. § 1981 through 1988, as amended, the Age Discrimination in
Employment Act, as amended, the Older Workers Benefits Protection Act, the
Immigration Reform and Control Act, as amended, the Occupational Safety and
Health Act, as amended, the Equal Pay Act, any collective bargaining agreement,
any other federal, state, local civil or human rights law or any other local,
state or federal law, regulation or ordinance, any federal or state common law,
including claims in contract and tort or based upon public policy, and any
allegation for costs, fees, or other expenses including attorneys’ fees
incurred in these matters.  It does not
apply to any claim that arises after you sign this Agreement, and it does not
include claims that cannot be released as a matter of law.

 

You agree to permanently
withdraw with prejudice all claims, if any, you have filed against any Released
Party, including a request to the EEOC or any other employment discrimination
investigation agencies to withdraw any previously filed charges of
discrimination.  You further agree that
you shall not be entitled to receive any relief, recovery, or monies in
connection with any complaint or charge brought against the Company, without
regard as to who brought said complaint or charge.

 

5.                                      Employee
Affirmations

 

You affirm that you have
not assigned or transferred, or purported to assign or transfer, to any person
or entity, any claim against any of the Released Parties, or any portion
thereof or interest therein.  You also
affirm that you have not filed, caused to be filed, or presently are a party to
any claim, complaint, or action against any of the Released Parties in any
forum or form. You further affirm that you have been paid and/or have

 

3

 

received all leave (paid
or unpaid), compensation, wages, bonuses, commissions, and/or benefits to which
you may be entitled and that no other leave (paid or unpaid), compensation,
wages, bonuses, commissions, and/or benefits are due to you, except as provided
in this Agreement. You further affirm that you have no known workplace injuries
or occupational diseases and have been provided and/or have not been denied any
leave requested under the Family and Medical Leave Act.

 

6.                                      Employee
Covenants

 

You agree to resign from any appointments,
directorships or other offices you may hold on behalf of the Company or any of
its divisions or affiliates.  You
acknowledge that any employment or contractual relationship between you and the
Company will terminate by virtue of this Agreement, and that you have no future
employment or contractual relationship with the Company other than the
contractual relationship created by this Agreement.  In consideration of this Agreement, you
hereby waive any and all employment rights that you now have with the Company,
except as otherwise expressly provided in this Agreement.  You agree not to seek reinstatement,
reemployment, or future employment as a new employee, and the Company has no
obligation, contractual or otherwise, to employ or reemploy, hire or rehire, or
recall or reinstate you in the future.

 

You acknowledge that you will remain bound by any
confidentiality, nondisclosure or noncompetition agreements you have with the
Company.

 

You further acknowledge
that you may possess secret, confidential or proprietary information or trade secrets
concerning the operations, future plans or business methods of the
Company.  You agree never to use or
disclose any such information.

 

You further
acknowledge that for a one-year period immediately after termination of your
employment, you will not directly or indirectly accept employment with or
render services on behalf of a competitor of any SPX business unit at which you
have been employed, or any other third party, in any capacity where the
confidential information of an SPX business unit acquired by you during your
employment with an SPX business unit would reasonably be considered to be
useful to the competitor or to such other third party to become a competitor
based in whole or in part on such information.

 

You agree that, for a
period of one (1) year after the date of execution of this Agreement, you
will not interfere with the Company’s relationship with, or endeavor to entice
away from the Company, or hire any person who at the time of the execution of
this Agreement is an employee of the Company. 
You agree that, for a period of one (1) year after the date of
execution of this Agreement, you will not interfere with the Company’s
relationship with, or endeavor to entice away from the Company, any customer of
the Company who, during your employment at the Company, you serviced, solicited
on behalf of the Company or gained knowledge about through your employment at
the Company.

 

You also agree not to
criticize the Company or any of its officers, directors, employees,
shareholders, affiliates or agents.

 

4

 

You agree that the
Company would be irreparably harmed by any actual or threatened violation of
the Employee Covenants described in this section, and that the Company will be
entitled to an injunction prohibiting you from committing such violation.

 

7.                                      Tender
Back

 

You agree that in the event of any breach of this
Agreement, including but not limited to, your bringing any claim against any
Released Party, you will immediately repay all or any portion of the payments
made to you and the Company will have no obligation to make any further
payments to you under this Agreement, provided, however, that these provisions
do not apply to any claims brought pursuant to the Age Discrimination in
Employment Act or the Older Workers Benefit Protection Act.

 

8.                                      Expenses

 

The Company will reimburse you for all reasonable
business expenses incurred through your Separation Date, upon proper
presentation of supporting documentation, provided that appropriate expense
reports have been submitted by your Separation Date.  Effective on your Separation Date, the
Company will no longer pay for or reimburse you for any charges or fees
incurred in connection with your cellular phone.  Should you decide to retain the cellular
phone, you agree that all expenses incurred in connection with the phone will
be paid by you.

 

9.                                      Company
Property

 

You agree that all Company property, including but not
limited to, automobiles, credit cards, keys, documents, software, computer
data, records, or any other materials, will be returned by your Separation
Date.

 

10.                               Non-Admission

 

You agree that this
Agreement is not an admission of guilt or wrongdoing by the Released
Parties, and acknowledge that the Released Parties do not believe or admit that
any of them has done anything wrong.

 

11.                               Cooperation

 

Both during and after the 2006 Consulting Period,
you shall cooperate fully and voluntarily with the Company and with the Company’s
counsel in connection with any past, present or future, actual or threatened,
litigation, claims, investigations, hearings, actions, or administrative
proceeding involving the Company that relate to events, occurrences or conduct
occurring (or claimed to have occurred) during the period of your employment by
the Company.  This cooperation by you
shall include, but not be limited to, (i) being reasonably available for
interviews and discussions with the Company’s counsel as well as for
depositions and trial testimony;  (ii) if
depositions or trial testimony are to occur, being reasonably available and
cooperating in the preparation therefore as

 

5

 

and to the extent that the Company or its counsel
request; (iii) refraining from impeding in any way the Company’s
prosecution or defense of any such litigation, claims, investigations,
hearings, actions, or administrative proceeding; (iv) cooperating fully in
the development and presentation of prosecution or defense of any such
litigation, claims, investigations, hearings, actions, or administrative
proceeding;  (v) providing, on a
timely basis, advice and consultations as reasonably requested by the Company; (vi) attending
depositions (whether or not you are deposed), hearings, investigations, trials
or arbitrations, assisting in response to discovery requests, meeting with
counsel for the Company, and providing written statements and/or affidavits,
all as requested by the Company’s General Counsel, or his or her designee; and (vii) promptly
notifying the Company’s General Counsel or his or her designee, if you are
contacted by any party, third party or by counsel or a representative
representing parties with respect to claims or litigation adverse to the
Company, and avoiding discussions with or otherwise providing information to
such party, third party, counsel or representative prior to discussions with
General Counsel, or his or her designee, or his or her representatives, and
then only in the presence of the Company’s representatives (unless otherwise
required by court order).

 

You agree to provide, on a timely basis, advice and
consultation upon the reasonable request of the Company’s senior management
team with respect to business, operational, financial, personnel and other
matters relating to the period of your employment by the Company.

 

You shall be reimbursed
by the Company for pre-approved and reasonable travel, lodging, telephone and
similar expenses incurred in connection with such cooperation and in connection
with the Services, except to the extent that such reimbursement may be
prohibited, or may jeopardize the Company’s legal interests, as determined by
the Company.

 

12.                               Full
Disclosure of Claims

 

You represent and affirm
that (i) you have not filed or caused to be filed on your behalf any claim
for relief against the Company or any Released Parties and, to the best of your
knowledge and belief, no outstanding claims for relief have been filed or
asserted against the Company or any Released Parties on your behalf; and (ii) you
have not reported any purported improper, unethical or illegal conduct or
activities to any supervisor, manager, department head, Human Resources
representative, agent or other representative of the Company, to any member of
the Company’s legal department, and have no knowledge of any such improper,
unethical, or illegal conduct or activities and have disclosed to the Company
any information you might have had concerning any conduct involving the Company
that you had reason to believe may be unlawful or involve any false claims to
the United States or any other government having jurisdiction over the Company;
and (iii) you will not file, commence, prosecute or participate in any
judicial or arbitral action or proceeding against the Company or its
representatives based upon or arising out of any act, omission, transaction,
occurrence, contract, claim or event existing or occurring on or before the
date of this Agreement except as otherwise provided for in this Agreement. You
agree that you will not voluntarily aid or assist, either directly or indirectly,
any individual or entity in either the assertion or pursuit of any private
claim or prosecution of

 

6

 

any private lawsuit,
action, arbitration or judicial or administrative proceeding, now existing or
hereafter arising, relating to any matters in which you were either involved or
for which you rendered services to the Company. 
Notwithstanding the above, nothing in this Agreement shall prohibit or
restrict you from: (i) making any disclosure of information required by
law; (ii) providing information to, or testifying or otherwise assisting
in any investigation or proceeding brought by any federal, state or local
government agency, law enforcement agency or legislative body, any
self-regulatory organization, or the Company’s legal department; (iii) cooperating
with any other U.S. government investigation; or (iv) testifying,
participating in or otherwise assisting in a proceeding relating to an alleged
violation of Sarbanes-Oxley Act or any federal, state or municipal law relating
to fraud or any rule or regulation of the Securities and Exchange
Commission or any self-regulatory organization.

 

13.                               Testimony
and Production of Documents

 

Nothing in Paragraphs 11 and 12 herein shall give
the Company the right to control or dictate the content of any testimony given
by you, it being understood that you would be required to testify
truthfully.  Moreover, nothing in this section shall
give the Company the right to control or dictate any documents required to be produced
by you pursuant to court order and by doing so, you will not be deemed to have
violated any provision of this Agreement.

 

14.                               Action
on Behalf of Employer

 

You shall not take any action on behalf of the
Company except as expressly required by the Company’s General Counsel, or his
or her designee.

 

15.                               Joint
Representation

 

In the event you are named in a lawsuit arising out
of any alleged acts or omissions committed by the Company or by you within the
scope of your employment with the Company, the Company at the Company’s cost
will agree to provide you with representation either jointly, provided you
execute a separate agreement in a form to be provided by the Company, or
separately.  In either event, counsel for
you shall be selected by the Company in its sole discretion.  In the event the Company determines at any
point in the matter that there exists a conflict of interest or if
representation of you jeopardizes the Company’s interests, then the Company
may, in its sole discretion, decline to provide or continue any such
representation.

 

16.                               Indemnification
and Insurance

 

The Company shall
continue to indemnify you and provide applicable directors’ and officers’
liability insurance coverage (including, where required, legal defense) for
actions prior to the effective date of your employment termination to the same
extent it indemnifies and provides liability insurance coverage to officers and
directors and former officers and directors of the Company.

 

7

 

17.                               Review
Period

 

You acknowledge that, before signing this Agreement,
you were given a period of at least 21 calendar days to consider this
Agreement.  If the 21-day period has not
elapsed at the time you sign this Agreement, you acknowledge that you have
knowingly and voluntarily chosen to sign this Agreement before the expiration
of that period.  You acknowledge that (a) you
took advantage of this period to consider this Agreement before signing it; (b) you
carefully read this Agreement; (c) you fully understand it; and (d) you
are signing it voluntarily.  You further
acknowledge that the Company encouraged you to discuss this Agreement with your
attorney (at your own expense) before signing it and that you did so to the
extent you deemed necessary.

 

18.                               Revocation
of Agreement

 

You understand that you may revoke this Agreement in
writing within seven (7) calendar days after you sign it, and the
Agreement shall not become effective or enforceable until the end of the
seven-day period.  To be effective, your
written revocation must be submitted, in writing, and state “I hereby revoke
acceptance of our Separation Agreement and General Release.”  The revocation must be personally delivered
to Douglas Hardy, or mailed to him at 13515 Ballantyne Corporate Place,
Charlotte North Carolina 28277 and postmarked within seven (7) calendar
days of execution of this Agreement. 
This Agreement shall not become effective or enforceable until the
revocation period has expired.  If the
last day of the revocation period is a Saturday, Sunday, or legal holiday in
the state where you reside, then the revocation period shall not expire until
the next following day that is not a Saturday, Sunday, or legal holiday.  If you revoke this Agreement, the Company
shall have no obligations under this Agreement.

 

19.                               Miscellaneous

 

This is the entire agreement between you and the
Company.  This Agreement may not be
modified in any manner except in writing signed by both you and an authorized
Company official.  You acknowledge that
the Company has made no representations or promises to you other than those in
this Agreement.  Should any provision of
this Agreement be declared illegal or unenforceable by any court of competent
jurisdiction or by any arbitrator and cannot be modified to be enforceable,
such provision shall immediately become null and void, leaving the remainder of
the Agreement in full force and effect. 
Notwithstanding this provision, however, the parties agree that the
general release language of paragraph 5 cannot be modified by any court or by
any arbitrator and shall remain in full force and effect.

 

This Agreement binds your
heirs, administrators, personal representatives, executors, successors and
assigns, and will apply to the benefit of all Released Parties and their
respective heirs, administrators, personal representatives, executors,
successors and assigns.

 

This Agreement shall be
construed as a whole according to its fair meaning.  It shall not be construed strictly for or
against you or any Released Party.  This
Agreement shall be

 

8

 

governed by the statutes
and common law of the State of North Carolina, without regard to that state’s rules regarding
conflict of laws.

 

YOU HAVE BEEN
ADVISED THAT YOU HAVE UP TO TWENTY-ONE (21) CALENDAR DAYS TO REVIEW THIS
SEPARATION AGREEMENT AND GENERAL RELEASE AND HAVE BEEN ADVISED THAT YOU HAVE
THE RIGHT TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTION OF THIS SEPARATION
AGREEMENT AND GENERAL RELEASE. YOU AGREE THAT ANY MODIFICATIONS, MATERIAL OR
OTHERWISE, MADE TO THIS AGREEMENT AND GENERAL RELEASE DO NOT RESTART OR AFFECT
IN ANY MANNER THE ORIGINAL TWENTY-ONE (21) CALENDAR DAY CONSIDERATION PERIOD.

 

HAVING
ELECTED TO EXECUTE THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE PROMISES
AND TO RECEIVE THE SUMS AND BENEFITS IN PARAGRAPH 1 ABOVE, YOU FREELY AND
KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTER INTO THIS SEPARATION AGREEMENT
AND GENERAL RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS YOU HAVE
OR MIGHT HAVE AGAINST THE COMPANY.

 

 

	
  ACCEPTED
  AND AGREED TO:

  	
  SPX
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/Ross B.
  Bricker

  	
   

  	
  /s/Christopher
  J. Kearney

  	
   

  
	
  Ross B. Bricker

  	
  Christopher J.
  Kearney

  
	
   

  	
  President and
  Chief Executive Officer

  
	
   

  	
   

  
	
  Date:
  January 6, 2006

  	
  Date:
  January 6, 2006

  
				

 

9

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