EXHIBIT 10.34
Amended and Restated Employment Agreement of Robert B.
Foreman
This Employment Agreement (the
“Agreement”) is effective as of November 20,
2008 (the “Effective Date”), by and between SPX
Corporation (the “Company”), and Robert B. Foreman (the
“Executive”).
WHEREAS, the Company and the
Executive previously entered into an employment agreement,
effective as of February 23, 2005, as amended (the
“Previous Employment Agreement”);
WHEREAS, the Company desires to
continue to employ the Executive as its Executive Vice President
Global Business Systems & Services and President
Asia-Pacific;
WHEREAS, the Company and the
Executive desire to amend and restate the Previous Employment
Agreement as set forth below; and
WHEREAS, the Company and the
Executive have reached agreement concerning the terms and
conditions of his continued employment and wish to formalize that
agreement.
NOW, THEREFORE, in consideration of
the mutual terms, covenants and conditions stated in this
Agreement, the Company and the Executive hereby agree as
follows:
1.
Employment.
The Company employs the
Executive and the Executive hereby accepts continued employment
with the Company as Executive Vice President, Global Business
Systems & Services and President, Asia-Pacific.
During the Employment Term (as hereinafter defined), the Executive
will have the title, status and duties of Executive Vice President,
Global Business Systems & Services and President,
Asia-Pacific and will report directly to the Company’s Chief
Executive Officer. The Executive’s principal business
office shall be at the Company’s principal business office
located in Charlotte, North Carolina, and Executive’s
principal family residence shall be located within 50 miles of the
Company’s principal business office for the duration of the
Employment Term.
2.
Term of Employment.
The term of employment
(“Employment Term”) will commence on the Effective
Date, and will continue thereafter until two (2) years from
the Effective Date and will be automatically extended for
subsequent one (1) day periods for each day of the Employment
Term that passes after the Effective Date, unless sooner terminated
by either party in accordance with the provisions of this
Agreement. The intent of the foregoing provision is that the
Agreement becomes “evergreen” on the Effective Date so
that on each passing day after the Effective Date the Employment
Term automatically extends to a full two-year period.
3.
Duties. During the Employment Term:
(a)
The Executive will perform duties
assigned by the Company’s Chief Executive Officer, or the
Company’s Board of Directors (the “Board”), from
time to time; provided that the Executive shall not be assigned
tasks inconsistent with those of Executive Vice President, Global
Business Systems & Services and President,
Asia-Pacific.
(b)
The Executive will devote his full
time and best efforts, talents, knowledge and experience to serving
as the Company’s Executive Vice President Global Business
Systems & Services and President Asia-Pacific.
However, the Executive may devote reasonable time to activities
such as supervision of personal investments and activities
involving professional, charitable, educational, religious and
similar types of activities, speaking engagements and membership on
other boards of directors, provided such activities do not
interfere in any material way with the business of the Company;
provided that, the Executive cannot serve on the board of directors
of more than one publicly-traded company without the Board’s
written consent. The time involved in such activities shall
not be treated as vacation time. The Executive shall be
entitled to keep any amounts paid to him in connection with such
activities ( e.g. , director fees and honoraria).
(c)
The Executive will perform his
duties diligently and competently and shall act in conformity with
the Company’s written and oral policies and within the
limits, budgets and business plans set by the Company. The
Executive will at all times during the Employment Term strictly
adhere to and obey all of the rules and regulations in effect
from time to time relating to the conduct of executives of the
Company. Except as provided in (b) above, the Executive
shall not engage in consulting work or any trade or business for
his own account or for or on behalf of any other person, firm or
company that competes, conflicts or interferes with the performance
of his duties hereunder in any material way.
4.
Compensation and
Benefits. During
the Executive’s employment hereunder, the Company shall
provide to the Executive, and the Executive shall accept from the
Company as full compensation for the Executive’s services
hereunder, compensation and benefits as follows:
(a)
Base Salary
. The Company shall pay the
Executive at an annual base salary (“Base Salary”) of
seven hundred, twenty five thousand dollars ($725,000). The
Board, or such committee of the Board as is responsible for setting
the compensation of senior executive officers, shall review the
Executive’s performance and Base Salary annually in
January of each year, and determine whether to adjust the
Executive’s Base Salary on a prospective basis. Such
adjusted annual salary then shall become the Executive’s
“Base Salary” for purposes of this Agreement. The
Executive’s annual Base Salary shall not be reduced after any
increase, without the Executive’s consent. The Company
shall pay the Executive’s Base Salary according to payroll
practices in effect for all senior executive officers of the
Company.
(b)
Incentive Compensation
. The Executive shall be
eligible to participate in any annual performance bonus plans,
long-term incentive plans, and/or equity-based compensation plans
established or maintained by the Company for its senior
executive
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officers, including, but not limited
to the SPX Corporation Stock Compensation Plan. For the 2008
bonus plan year, the Executive shall be eligible for a target bonus
under the Company’s bonus plan equal to one hundred percent
(100%) of his Base Salary provided that all performance goals set
by the Company are met. The Board (or appropriate Board
committee) will determine and communicate to the Executive his
annual incentive plan participation for subsequent bonus plan
years, no later than March 31 of such bonus plan year.
The Company will pay the Executive’s annual performance bonus
at the same time as annual performance bonus payments for such year
(if any) are made to other participants with respect to such fiscal
year, and in all events within the two and one-half (2½)
months following the end of the calendar year in which the bonus is
earned. Annual performance bonuses are intended to qualify
for the short-term deferral exception to Section 409A of the
Internal Revenue Code of 1986, as amended (the
“Code”).
(c)
Executive Benefit
Plans . The
Executive will be eligible to participate on substantially the same
basis as the Company’s other senior executive officers in any
executive benefit plans offered by the Company including, without
limitation, medical, dental, short-term and long-term disability,
life, pension, profit sharing and nonqualified deferred
compensation arrangements. The Company reserves the right to
modify, suspend or discontinue any and all of the plans, practices,
policies and programs at any time without recourse by the
Executive, so long as the Company takes such action generally with
respect to other similarly situated senior executive
officers.
(d)
Business Expenses
. The Company shall reimburse
the Executive for all reasonable and necessary business expenses
incurred in the performance of services with the Company, according
to the Company’s policies and upon Executive’s
presentation of an itemized written statement and such verification
as the Company may require, provided that such expenses shall be
reimbursed no later than December 31 of the year following the
year in which the expenses were incurred.
(e)
Perquisites
. The Company will provide the
Executive with all perquisites it provides to other senior
executive officers. Such perquisites shall not be less than
those provided to the Executive on the Effective Date. The
Company will also reimburse the Executive for annual income tax
return preparation and financial planning up to $20,000 per
year. The Company will make such reimbursements in accordance
with the Company’s reimbursement practices, and in all events
no later than December 31 of the year following the year in
which the expense was incurred.
(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.
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(g)
Retiree Medical
.
(i)
The Executive shall be entitled to
receive retiree medical benefits during his lifetime in accordance
with the eligibility requirements and plan offerings for access to
retiree medical benefits provided generally to full-time employees
of the Company. The Executive may cover his spouse or
dependents eligible at the time of retirement. The cost of
such benefits for the Executive, his spouse and eligible
dependents, will be 100% of the premiums and shall be reimbursed by
the Company in accordance with the Company’s reimbursement
practices, and in all events no later than December 31 of the
year following the year in which the premiums were incurred, and in
accordance with the other requirements of Code Section 409A
and Treasury Regulation §1.409A-3(i)(1)(iv) (or any
similar or successor provisions). 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.
(ii)
Upon reaching Medicare eligibility
due to age, Medicare shall become the primary payor of
medical/prescription benefits for the Executive, his spouse or
eligible dependents as applicable.
(iii)
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 annual reimbursement of one and one-half times the applicable
premium of the plan in effect at the time retiree access is
terminated at the appropriate coverage level, and subject to
maximum annual inflation adjustment thereafter of five
(5) percent.
(iv)
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.
(v)
The Executive acknowledges and
agrees that the benefit provided under this
Section 4(g) replaces any and all benefits the Executive
may have been entitled to under the SPX Corporation Retirement
Health Plan for Top Management, if applicable.
5.
Payments on Termination of
Employment.
(a)
Definition of Termination of
Employment . For
purposes of this Agreement, the Executive’s employment with
the Company shall be deemed to be terminated when the Executive has
a “Separation from Service” within the meaning
of
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Code Section 409A, and
references to termination of employment shall be deemed to refer to
a Separation from Service.
(b)
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.
(c)
Termination of Employment for
Death or Disability . In addition to the amounts determined
under (b) above, if the Executive’s termination of
employment occurs by reason of death or disability, the Executive
(or his estate) will receive a pro rata portion of any bonus
payable under the Company’s annual incentive plan for the
year in which such termination occurs determined based on the
highest of (i) the actual annual bonus paid for the bonus plan
year immediately preceding such termination, or (ii) the
target bonus for the bonus plan year in which such termination
occurs. The Executive will be deemed to be disabled upon the
earlier of (i) the end of a six (6) consecutive month
period during which, by reason of physical or mental injury or
disease, the Executive has been unable to perform substantially all
of his usual and customary duties under this Agreement or
(ii) the date that a reputable physician selected by the
Board, and as to whom the Executive has no reasonable objection,
determines in writing that the Executive will, by reason of
physical or mental injury or disease, be unable to perform
substantially all of the Executive’s usual and customary
duties under this Agreement for a period of at least six
(6) consecutive months. If any question arises as to
whether the Executive is disabled, upon reasonable request
therefore by the Board, the Executive shall sub