exv10w18



 





Exhibit 10.18




ABM INDUSTRIES INCORPORATED

STATEMENT OF TERMS AND CONDITIONS APPLICABLE TO

OPTIONS, RESTRICTED STOCK, RESTRICTED STOCK UNITS

AND PERFORMANCE SHARES GRANTED TO EMPLOYEES

PURSUANT TO THE 2006 EQUITY INCENTIVE PLAN

(As Adopted October __2, 2006)




I. INTRODUCTION




The following terms and conditions shall apply to each Award granted under the Plan to an Employee
eligible to participate in the Plan. This Statement of Terms and Conditions is subject to the terms
of the Plan and of any Award made pursuant to the Plan. In the event of any inconsistency between
this Statement of Terms and Conditions and the Plan, the Plan shall govern.



II. DEFINITIONS




Capitalized terms not otherwise defined in this Statement of Terms and Conditions shall have the
meaning set forth in the Plan. When capitalized in this Statement of Terms and Conditions, the
following additional terms shall have the meaning set forth below:



A. “Grant Date” means the date the Administrator grants the Award.



B. “Option Period” means the period commencing on the Grant Date of an Option and, except
at otherwise provided in Section III.E, ending on the Termination Date.



C. “Termination Date” means the date that an Option expires as set forth in the Option
Agreement.



III. OPTIONS




A. Option Notice and Agreement. An Option granted under the Plan shall be evidenced by an
Option Agreement setting forth the terms and conditions of the Option, including whether the Option
is an Incentive Stock Option or a Nonqualified Stock Option and the number of Shares subject to the
Option. Each Option Agreement shall incorporate by reference and be subject to this Statement of
Terms and Conditions and the terms and conditions of the Plan.



B. Exercise Price. The Exercise Price of an Option, as specified in the Option Agreement,
shall be equal to or greater than the Fair Market Value of the Shares underlying the Option on the
Grant Date.



C. Option Period. An Option shall be exercisable only during the applicable Option Period,
and during such Option Period the exercisability of the Option shall be subject to the vesting
provisions of Section III.D as modified by the rules set forth in Sections III.E, V and VI. The
Option Period shall be not more than seven years from the Grant Date.



 









 





D. Vesting of Right to Exercise Options.




1. Except as provided in Sections V and VI, an Option shall be exercisable during the
Option Period in accordance with the following vesting schedule: (i) 25 percent of the
Shares subject to the Option shall vest on the first anniversary of the Grant Date; (ii) an
additional 25 percent of the Shares shall vest on the second anniversary of the Grant Date;
(iii) an additional 25 percent of the Shares shall vest on the third anniversary of the
Grant Date; and (iv) the remaining 25 percent of the Shares subject to the Option shall
vest on the fourth anniversary of the Grant Date. Notwithstanding the foregoing, the
Administrator may specify a different vesting schedule at the time the Option is granted
and as specified in the Option Agreement.




2. Any vested portion of an Option not exercised hereunder shall accumulate and be
exercisable at any time on or before the Termination Date, subject to the rules set forth
in Sections III.E, V and VI. No Option may be exercised for less than 5 percent of the
total number of Shares then available for exercise under such Option. In no event shall the
Company be required to issue fractional shares.



E. Termination of Employment. In addition to the terms set forth in the Plan with respect
to termination of employment:




1. If a Participant ceases to be a bona fide employee of the Company or an Affiliate due
to his or her Retirement, Disability or death during the Option Period, in addition to any
Shares vested under the Option Agreement prior to the date of Disability or death, the
Option shall vest in the number of Shares equal to 25 percent of the number of Shares
originally subject to the Option, multiplied by the number of whole months between the most
recent anniversary date of the Option grant and the date of Retirement, Disability or
death, and divided by 12.




2. If a Participant who ceases to be a bona fide employee of the Company or an Affiliate
is subsequently rehired prior to the expiration of his or her Option, then the Option shall
continue to remain outstanding until such time as the Participant subsequently terminates
employment or the Option otherwise terminates pursuant to this Statement of Terms and
Conditions. Upon the Participant’s subsequent termination of employment, the
post-termination exercise period calculated pursuant to the terms and conditions of this
Section III.E shall be reduced by the number days between the date of the Participant’s
initial termination of employment and his or her rehire date; provided, however, that if
the rehired Participant continues to be employed by the Company or an Affiliate for at
least one year from his or her rehire date, then the post-termination exercise period for
the Option shall be determined in accordance with the Plan and shall not be adjusted as
described above.



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F. Method of Exercise. A Participant may exercise an Option with respect to all or any
part of the exercisable Shares as follows:




1. By giving the Company, or its authorized representative designated for this purpose,
written notice of such exercise specifying the number of Shares as to which the Option is
so exercised. Such notice shall be accompanied by an amount equal to the Exercise Price of
such Shares, in the form of any one or combination of the following:




a. cash or certified check, bank draft, postal or express money order payable to
the order of the Company in lawful money of the United States;




b. if approved by the Company at the time of exercise, personal check of the
Participant;




c. if approved by the Company at the time of exercise, a “net exercise” pursuant
to which the Company will not require a payment of the exercise price from the
Participant but will reduce the number of Shares issued upon the exercise by the
largest number of whole Shares that has a Fair Market Value that does not exceed
the aggregate exercise price. With respect to any remaining balance of the
aggregate exercise price, the Company shall accept payment in a form identified in
(a) or (b) of this section;




d. if approved by the Company at the time of exercise, by tendering to the Company
or its authorized representative Shares which have been owned by the Participant
for at least six months prior to said tender, and having a Fair Market Value, as
determined by the Company, equal to the Exercise Price. In the event a Participant
tenders Shares to pay the Exercise Price, tender of Shares acquired through
exercise of an Incentive Stock Option may result in unfavorable income tax
consequences unless such Shares are held for at least two years from the Grant Date
of the Incentive Stock Option and one year from the date of exercise of the
Incentive Stock Option;




e. if approved by the Company at the time of exercise, delivery (including by FAX
transmission) to the Company or its authorized representative of an executed
irrevocable option exercise form together with irrevocable instructions to an
approved registered investment broker to sell Shares in an amount sufficient to pay
the Exercise Price plus any applicable withholding taxes and to transfer the
proceeds of such sale to the Company; and




2. If required by the Company, by giving satisfactory assurance in writing, signed by the
Participant, the Participant shall give his or her assurance that the Shares subject to the
Option are being purchased for investment and not with a view to



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the distribution thereof;
provided that such assurance shall be deemed
inapplicable to (i) any sale of the Shares by such Participant made in accordance with the
terms of a registration statement covering such sale, which has heretofore been (or may
hereafter be) filed and become effective under the Securities Act of 1933, as amended (the
“Securities Act”) and with respect to which no stop order suspending the effectiveness
thereof has been issued, and (ii) any other sale of the Shares with respect to which, in
the opinion of counsel for the Company, such assurance is not required to be given in order
to comply with the provisions of the Securities Act.



G. Limitations on Transfer. An Option shall, during a Participant’s lifetime, be
exercisable only by the Participant. No Option or any right granted thereunder shall be
transferable by the Participant by operation of law or otherwise, other than as set forth in the
Plan. In the event of any attempt by a Participant to alienate, assign, pledge, hypothecate, or
otherwise dispose of an Option or of any right thereunder, except as provided herein, or in the
event of the levy of any attachment, execution, or similar process upon the rights or interest
hereby conferred, the Company at its election may terminate the affected Option by notice to the
Participant and the Option shall thereupon become null and void.



H. No Shareholder Rights. Neither a Participant nor any person entitled to exercise a
Participant’s rights in the event of the Participant’s death shall have any of the rights of a
shareholder with respect to the Shares subject to an Option except to the extent that an Option has
been exercised.



IV. RESTRICTED STOCK, RESTRICTED STOCK UNITS, AND PERFORMANCE SHARES




A. Agreement. A Restricted Stock Award, Restricted Stock Unit Award, or Performance Share
Award granted under the Plan shall be evidenced by an Agreement to be executed by the Participant
and the Company setting forth the terms and conditions of the Award. Each Award Agreement shall
incorporate by reference and be subject to this Statement of Terms and Conditions and the terms and
conditions of the Plan.



B. Special Restrictions. Each Restricted Stock Award, Restricted Stock Unit Award, or
Performance Share Award made under the Plan shall contain the following terms, conditions and
restrictions and such additional terms, conditions and restrictions as may be determined by the
Administrator; provided, however, that no Award shall be subject to additional terms, conditions
and restrictions which are more favorable to a Participant than the terms, conditions and
restrictions set forth in the Plan, the Restricted Stock Agreement, Restricted Stock Unit Award
Agreement, Performance Share Award Agreement, or this Statement of Terms and Conditions.




1. Restrictions. Until the restrictions imposed on any Restricted Stock Award
shall lapse, shares of Restricted Stock granted to a Participant: (a) shall not be sold,
assigned, transferred, pledged, hypothecated, or otherwise disposed of, and (b) shall, if
the Participant’s continuous employment with the



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Company or an Affiliate shall terminate
for any reason (except as otherwise provided in the Plan
or in Section IV.B.2) be returned to the Company forthwith, and all the rights of the
Participant to such Shares shall immediately terminate. A Participant shall not be
permitted to sell, transfer, pledge, assign or encumber such Restricted Stock Units or
Performance Shares, other than pursuant to a qualified domestic relations order as defined
in the Code or Title I of the Employee Retirement Income Security Act. If a Participant
ceases to be a bona fide employee of the Company or an Affiliate (except as otherwise
provided in the Plan or in Section IV.B.2) prior to the lapse of the restrictions imposed
on a Restricted Stock Unit Award or Performance Share Award, the unvested portion of the
Restricted Stock Unit Award or Performance Share Award shall be forfeited to the Company,
and all the rights of the Participant to such Award shall immediately terminate. If a
Participant is absent from work with the Company or an Affiliate because of his or her
short-term disability or because the Participant is on an approved leave of absence, the
Participant shall not be deemed during the period of any such absence, by virtue of such
absence alone, to have terminated employment with the Company or an Affiliate except as the
Administrator may otherwise expressly determine. Notwithstanding the foregoing, if the
Participant is on a voluntary leave of absence for the purpose of serving the government of
the country of which the Participant is a citizen or in which the Participant’s principal
place of employment is located such leave shall be considered an approved leave of absence.




2. Termination of Employment by Reason of Retirement, Disability or Death.




a. Restricted Stock Awards and Restricted Stock Unit Awards.
Notwithstanding any provision contained herein or in the Plan or the Restricted
Stock Agreement or Restricted Stock Unit Agreement to the contrary, if a
Participant who has been in the continuous employment of the Company or an
Affiliate since the Grant Date of a Restricted Stock Award or Restricted Stock Unit
Award ceases to be a bona fide employee of the Company or an Affiliate as a result
of Retirement, Disability or death, then the restrictions shall lapse as to the
number of Shares or Share Equivalents equal to: (i) 50 percent of the number of
Shares or Share Equivalents originally subject to the Award, multiplied by (ii) the
number of whole months between the Grant Date (or if the Grant Date occurred more
than two years prior to the date of Retirement, Disability or death, the second
anniversary of the Grant Date) and the date of Retirement, Disability or death,
divided by (iii) 24.




b. Performance Share Awards. Notwithstanding any provision contained
herein or in the Plan or the Performance Share Agreement to the contrary, if a
Participant who has been in the continuous employment



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of the Company or an
Affiliate since the Grant Date of a Performance Share Award ceases to be a bona
fide employee of the Company or an Affiliate as a result of Retirement, Disability
or death, then at the end of the performance period the restrictions shall lapse as
to the number of Share
Equivalents equal to: (i) the number of Performance Shares vested in accordance
with the performance objectives established by the Administrator for the Award,
multiplied by (ii) the number of whole months between the Grant Date and the date
of Retirement, Disability or death, divided by (iii) the number of months in the
performance period.



C. Dividends, Dividend Equivalents, and Business Transactions. Upon cash dividends being
paid on outstanding shares of ABM common stock, dividends shall be paid with respect to Restricted
Stock during the Restriction Period and shall be converted to additional shares of Restricted
Stock, which shall be subject to the same restrictions as the original Award for the duration of
the Restricted Period. Upon cash dividends being paid on outstanding shares of ABM common stock,
dividend equivalents shall be credited in respect of Restricted Stock Units and Performance Shares,
which shall be converted into additional Restricted Stock Units or Performance Shares, which will
be subject to all of the terms and conditions of the underlying Restricted Stock Unit Award or
Performance Share Award, including the same vesting restrictions as the underlying Award. Upon
stock dividends being paid on outstanding shares of ABM common stock or a Business Transaction, the
Administrator is authorized to take such actions and make such changes with respect to outstanding
Awards, including the performance criteria for the termination of restrictions on Awards, as are
consistent with the Plan and this Statement of Terms and Conditions to effect the terms of the
Awards.



D. Election to Recognize Gross Income in the Year of Grant. If any Participant validly
elects within thirty days of the Grant Date, to include in gross income for federal income tax
purposes an amount equal to the Fair Market Value of the Shares of Restricted Stock granted on the
Grant Date, such Participant shall pay to the Company, or make arrangements satisfactory to the
Administrator to pay to the Company in the year of such grant, any federal, state or local taxes
required to be withheld with respect to such shares in accordance with Section VII.F.



E. No Shareholder Rights for Restricted Stock Units or Performance Shares. Neither a
Participant nor any person entitled to exercise a Participant’s rights in the event of the
Participant’s death shall have any of the rights of a shareholder with respect to the Share
Equivalents subject to a Restricted Stock Unit Award or Performance Share Award except to the
extent that a stock certificate has been issued with respect to such Shares upon the payment of any
vested Restricted Stock Unit Award or Performance Share Award.



F. Time of Payment of Restricted Stock Units and Performance Shares. Upon the lapse of the
restriction imposed on Restricted Stock Unit Awards or Performance Share Award,



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all Restricted
Stock Units and Performance Shares that were not forfeited pursuant to Sections IV.B.1 or V shall
be paid to the Participant as soon as reasonably practicable after the restrictions lapse but not
later than two and one-half months following the end of the calendar year in which the restrictions
lapse. Payment shall be made in Shares in the form of a stock certificate. The foregoing
notwithstanding, the Participant may elect to defer payment of the Restricted Stock Units in the
manner described in Section IV.G.



G. Deferral Election. Each Participant, pursuant to rules established by the
Administrator, may be entitled to elect to defer all or a percentage of any payment in respect of a
Restricted Stock Unit Award or Performance Shares that he or she may be entitled to receive as
determined pursuant to Section IV.F. This election shall be made by giving notice in a manner and
within the time prescribed by the Administrator and in compliance with Code Section 409A. Each
Participant must indicate the percentage (expressed in whole percentages) he or she chooses to
defer of any payment he or she may be entitled to receive. If no notice is given, the Participant
shall be deemed to have made no deferral election. Each deferral election filed with the Company
shall become irrevocable in accordance with the terms and conditions of the Company’s Deferred
Compensation Plan (or any successor plan) and in compliance with Code Section 409A.



V. SPECIAL FORFEITURE AND REPAYMENT RULES




Any other provision of this Statement of Terms and Conditions to the contrary notwithstanding, if
the Administrator determines that a Participant has engaged in conduct which constitutes Cause
prior to, or during the 12 month period following, the exercise of an Option or the vesting of an
Award, the consequences set forth in Section 16 of the Plan govern and the following consequences
shall apply:



A. Any outstanding Option shall immediately and automatically terminate, be forfeited and shall
cease to be exercisable, without limitation. In addition, any shares of Restricted Stock,
Restricted Stock Units or Performance Shares as to which the restrictions have not lapsed shall
immediately and automatically be forfeited, all of the rights of the Participant to such shares or
share equivalents shall immediately terminate, and any Restricted Stock shall be returned to the
Company.



B. Any exercise of an Option during the period beginning 12 months prior to through 24 months
after the Participant’s termination of employment with the Company or an Affiliate shall be
rescinded and all outstanding Awards shall be canceled up to 24 months after the Participant’s
termination of employment with the Company or an Affiliate. The Participant shall deliver to the
Company the Shares received by the Participant upon exercise of an Option if such exercise has been
rescinded and the Shares retained by the Participant.



C. The lapse of restrictions on or vesting of Restricted Stock, Restricted Stock Units, or
Performance Shares that have vested or upon which the restrictions have lapsed during the period
beginning 12 months prior to through 24 months after the Participant’s termination of employment
with the Company or an Affiliate



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shall be rescinded and all outstanding Awards shall be cancelled
up to 24 months after the Participant’s termination of employment with the Company or an Affiliate.
The Participant shall deliver to the Company the Shares delivered upon vesting or lapse of
restrictions if such vesting or lapse of restrictions has been rescinded and the Shares retained by
the Participant.



D. The Participant shall pay over to the Company the proceeds (less the Participant’s purchase
price, if any) received by the Participant upon (1) the sale, transfer or other transaction
involving the Shares acquired upon the exercise of any Option exercised during the period beginning
12 months prior to through 24 months after the Participant’s termination of employment with the
Company or an Affiliate or (2) the sale, transfer or other transaction involving the Shares
acquired upon the vesting of any Award or lapse of restrictions on any Award within 12 months
prior to through 24 months after the Participant’s termination of employment with the Company or an
Affiliate in such manner and on such terms and conditions as may be required, and, without
limiting any other remedy the Company or an Affiliate may have, the Company shall be entitled to
set-off against the amount of any such proceeds any amount owed the Participant by the Company or
an Affiliate to the fullest extent permitted by law.



The Administrator shall determine in its sole discretion whether the Participant has engaged in
conduct that constitutes Cause.



Any provision of Section 16 of the Plan and this Section V which is determined by a court of
competent jurisdiction to be invalid or unenforceable should be construed or limited in a manner
that is valid and enforceable and that comes closest to the business objectives intended by such
invalid or unenforceable provision, without invalidating or rendering unenforceable the remaining
provisions of this Section V.



VI. CHANGE IN CONTROL




A. Effect of Change in Control on Options. Subject to the limitations set forth
in Section VI.C, in the event of a Change in Control, the surviving, continuing,
successor, or purchasing Company or other business entity or parent thereof, as the case
may be (the “Acquiror”) may, without the consent of any Participant, either assume or
continue the Company’s rights and obligations under outstanding Options or substitute for
outstanding Options substantially equivalent options covering the Acquiror’s stock.
Options that are assumed or continued in connection with a Change in Control shall be
subject to such additional accelerated vesting and/or exercisability in connection with
the Participant’s subsequent termination of employment (i) as are set forth in a Severance
Agreement between the Participant and the Company approved by the Board of Directors or
the Compensation Committee, or (ii) as the Board may determine. Any Options granted one
year or more prior to the Change in Control that are neither assumed nor continued by the
Acquiror in connection with the Change in Control shall, contingent on the Change in
Control, become fully vested and



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exercisable immediately prior to the Change in Control.
Any Option granted less than one year prior to the Change of Control that is neither
assumed nor continued by the Acquiror in connection with the Change in Control shall, to
the extent not previously vested and exercisable, immediately prior to the Change in
Control become vested and exercisable as to the number of Shares subject to such Option
equal to (i) the number of Shares originally subject to such Option, multiplied by (ii)
the number of whole months between the Grant Date and the Change in
Control, divided by (iii) the number of months between the Grant Date and the date on
which all Shares originally subject to such Option would have been fully vested and
exercisable; and such Option shall terminate with respect to all remaining Shares subject
to such Option.



B. Effect of Change in Control on Awards Other than Options. Subject to the limitations
set forth in Section VI.C, in the event of a Change in Control, the Acquiror may, without the
consent of any Participant, either assume or continue the Company’s rights and obligations under
outstanding Awards other than Options or substitute for such Awards substantially equivalent awards
covering the Acquiror’s stock. Awards that are assumed or continued in connection with a Change in
Control shall be subject to such additional accelerated vesting or lapse of restrictions in
connection with the Participant’s subsequent termination of employment without Cause (i) as are set
forth in a Severance Agreement between the Participant and the Company approved by the Board of
Directors or the Compensation Committee; or (ii) as the Board may determine. Any Award granted one
year or more prior to the Change in Control that is neither assumed nor continued by the Acquiror
in connection with the Change in Control shall, upon the Change in Control, become fully vested and
all restrictions shall be released immediately prior to the Change in Control. Restricted Unit
Awards and Performance Share Awards granted one year or more prior to such Change in Control also
shall become immediately payable. Subject to the limitations set forth in Section VI.C, in the
event of a Change in Control outstanding Awards other than Options granted less than one year prior
to the Change in Control, shall, immediately prior to the Change of Control, become vested and all
restrictions shall to the extent not previously released be released with respect to the number of
Shares equal to (i) the number of Shares originally subject to such Award, multiplied by (ii) the
number of whole months between the Grant Date and the Change in Control, divided by (iii) the
number of months between the Grant Date and the date on which the restrictions on such Award would
otherwise have terminated. To the extent such restrictions are released, Restricted Unit Awards
and Performance Share Awards also shall become immediately payable. Awards shall terminate to the
extent such Awards do not become vested and restrictions do not terminate.



C. Excess Parachute Payments. Subject to a Severance Agreement between the Participant
and the Company approved by the Board of Directors or the Compensation Committee, if any amount or
benefit to be paid or provided under an Award or any other agreement between a Participant and the
Company would be an Excess Parachute Payment but for the application of this sentence, then the
payments and benefits to be paid or provided under the Award and any other agreement will be
reduced to the minimum extent necessary (but in no event to less than zero) so that no portion of



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any such payment or benefit, as so reduced, constitutes an Excess Parachute Payment. The
determination of whether any reduction in such payments or benefits to be provided under the Award
or any other agreement or otherwise is required pursuant to the preceding sentence will be made at
the expense of the Company by independent accountants or the Company’s benefits consultant. The
fact that the Participant’s right to payments or benefits may be reduced by reason of the
limitations contained in this paragraph will not of itself limit or otherwise affect any other
rights of the Participant
under any other agreement. In the event that any payment or benefit intended to be provided is
required to be reduced pursuant to this paragraph, the Participant will be entitled to designate
the payments and/or benefits to be so reduced in order to give effect to this paragraph. The
Company will provide the Participant with all information reasonably requested by the Participant
to permit the Participant to make such designation. In the event that the Participant fails to make
such designation within 10 business days after receiving notice from the Company of a reduction
under this paragraph, the Company may effect such reduction in any manner it deems appropriate.



VII. MISCELLANEOUS




A. No Effect on Terms of Employment. Subject to the terms of any employment contract
entered into by the Company and a Participant to the contrary, the Company (or an Affiliate which
employs him or her) shall have the right to terminate or change the terms of employment of a
Participant at any time and for any reason whatsoever.



B. Grants to Participants in Foreign Countries. In making grants to Participants in
foreign countries, the Administrator has the full discretion to deviate from this Statement of
Terms and Conditions in order to adjust Awards under the Plan to prevailing local conditions,
including custom and legal and tax requirements.



C. Information Notification. Any information required to be given under the terms of an
Award Agreement shall be addressed to the Company in writing by mail, overnight delivery service,
or by electronic transmission to the Senior Vice President, Human Resources and the Assistant Vice
President & Director of Compensation. Any notice to be given to a Participant shall be given in
writing by mail, overnight delivery service, or by electronic transmission.



D. Administrator Decisions Conclusive. All decisions of the Administrator administering
the Plan upon any questions arising under the Plan, under this Statement of Terms and Conditions,
or under an Award Agreement, shall be conclusive.



E. No Effect on Other Benefit Plans. Nothing herein contained shall affect a Participant’s
right to participate in and receive benefits from and in accordance with the then current
provisions of any pensions, insurance or other employment welfare plan or program offered by the
Company.



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F. Withholding. Each Participant shall agree to make appropriate arrangements with the
Company and his or her employer for satisfaction of any applicable federal, state or local income
tax withholding requirements or payroll tax requirements. If approved by the Company at the time
of exercise, such arrangements may include an election by a Participant to have the Company retain
some portion of the Stock acquired pursuant to exercise of an Option to satisfy such withholding
requirements. The election must be made prior to the date on which the amount to be withheld is
determined. If a qualifying election is made, then upon exercise of an Option, in whole or in
part, the Company will retain the number of Shares having a value equal to the amount necessary to
satisfy any
withholding requirements. Calculation of the number of Shares to be withheld shall be made based on
the Fair Market Value of the Stock. In no event, however, shall the Company be required to issue
fractional shares of Stock. The Administrator shall be authorized to establish such rules, forms
and procedures as it deems necessary to implement the foregoing.



With respect the vesting of an Award other than an Option, if the Participant does not make an
arrangement with Company and his or her employer for satisfaction of the applicable income and
withholding requirements or social security requirements in advance of the vesting date, the
Company shall retain the number of Shares (that otherwise would have been payable to the
Participant) having a value equal to the amount necessary to satisfy any withholding requirements.
Calculation of the number of such Shares shall be as described above.



G. Successors. This Statement of Terms and Conditions and the Award Agreements shall be
binding upon and inure to the benefit of any successor or successors of the Company. “Participant”
as used herein shall include the Participant’s Beneficiary.



H. Governing Law. The interpretation, performance, and enforcement of this Statement of
Terms and Conditions and all Award Agreements shall be governed by the laws of the State of
Delaware.




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