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                                                                   EXHIBIT 10.16

                             CERIDIAN CORPORATION

                         STOCK OPTION AWARD AGREEMENT

                   2001 DIRECTOR PERFORMANCE INCENTIVE PLAN

This Agreement is between Ceridian Corporation, a Delaware corporation (the
"Company"), and ____________ (the "Participant") as of May __, _______ (the
"Date of Grant") pursuant to the 2001 Director Performance Incentive Plan of the
Company (the "Plan") to evidence the granting of an Option to the Participant
pursuant to the Plan. Any capitalized term used and not otherwise defined herein
shall have the same meaning as set forth therein.

1.       Effective as of the Date of Grant, the Company has granted to the
         Participant the option to purchase from the Company, and the Company
         has agreed to sell to the Participant, 4,000 shares of Common Stock at
         a price of $______ per share (the "Option").

2.       Subject to the provisions of paragraph 3, this Option shall become
         exercisable in full on November __, _____ (six months from the Date of
         Grant), and shall become void and expire at midnight (Minneapolis time)
         on the tenth anniversary of the Date of Grant and may not be exercised
         after that time.

3.       If the Participant's service as a director of the Company ceases by
         reason of death or Disability, the Option shall become immediately
         exercisable in full and remain exercisable for the period specified in
         paragraph 2 of this Agreement. If the Participant voluntarily resigns
         from the Board (which does not include the submission of an offer not
         to stand for re-election as a director in accordance with Company
         policies), the Participant shall have three months following the date
         of such cessation of service as a director to exercise this Option (but
         in no event after the time it becomes void and expires as set forth in
         paragraph 2), but only to the extent that the Participant was entitled
         to exercise it as of the date of such cessation. If the Participant's
         service as a director of the Company ceases for any reason other than
         those specified earlier in this paragraph, this Option shall remain
         exercisable until the time it becomes void and expires as set forth in
         paragraph 2, but only to the extent that the Participant was entitled
         to exercise it as of the date of such cessation.

4.       This Option grant and the Option forming a part hereof, shall be
         nontransferable (i.e., it may not be sold, pledged, donated or
         otherwise assigned or transferred) by the Participant, either
         voluntarily or involuntarily, except by will or in accordance with
         applicable laws of descent and distribution. This Option shall be
         exercisable during the Participant's lifetime only by the Participant
         or by the Participant's guardian or other legal representative.


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5.       Any notice of Option exercise must specify the number of shares with
         respect to which the Option is being exercised and be accompanied by
         either (i) payment in full of the purchase price for the shares
         exercised or (ii) a properly completed and executed Broker Exercise
         Notice. The exercise of the Option shall be deemed effective upon
         receipt by the Company (Attn: Corporate Treasury) of such items at its
         headquarters at 3311 East Old Shakopee Road, Minneapolis, MN 55425,
         Facsimile No. 952-853-3932.

6.       In the event of any reorganization, merger, consolidation,
         recapitalization, liquidation, reclassification, stock dividend, stock
         split, combination of shares, rights offering, divestiture or
         extraordinary dividend (including a spin-off) or any other change in
         the corporate structure or shares of the Company, the Committee (or, if
         the Company is not the surviving corporation in any such transaction,
         the board of directors of the surviving corporation) will make
         appropriate adjustments (which determination will be conclusive) as to
         the number and kind of securities or other property (including cash)
         available for issuance or payment under the Plan and, in order to
         prevent dilution or enlargement of the Participant's rights, (a) the
         number and kind of securities or other property (including cash)
         subject to the Option, and (b) the exercise price of the Option.

7.       This Option grant is subject to all of the terms and conditions of the
         Plan and, where any questions or matters of interpretation arise, the
         terms and conditions of the Plan shall control.

8.       Any notice to be given with respect to this Agreement, including
         without limitation a notice of Option exercise, shall be addressed to
         the Company, Attention: Corporate Treasury, at the address listed in
         paragraph 5, and any notice to be given to the Participant shall be
         addressed to the Participant at address given beneath the Participant's
         signature hereto, or at such other address as either party may
         hereafter designate in writing to the other.

IN WITNESS WHEREOF, Ceridian Corporation and the Participant have executed this
Agreement as of the Date of Grant.


CERIDIAN CORPORATION                        PARTICIPANT


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Deputy Secretary                            [Typed name of Participant]

                                            PARTICIPANT'S MAILING ADDRESS

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                                            Social Security Number:
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