EX-10.2






Exhibit 10.2




409A Form




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 Amended and Restated December 9, 2008)





	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.	 	“Cause” means, with respect to a Participant:
	 
	 	 	(i) the willful and continued failure to substantially perform the Participant’s duties and
responsibilities for reasons other than death or disability, after a written demand for
substantial performance is delivered to him/her by the Company which specifically identifies
the manner in which the Company believes that the Participant has not substantially performed
the Participant’s duties;
	 
	 	 	(ii) the Participant’s conviction (or entry of a plea bargain admitting criminal guilt) of
any felony or a misdemeanor involving moral turpitude;
	 
	 	 	(iii) intentional breach by the Participant of his/her fiduciary obligations to the Company
or any securities laws applicable to the Company; or
	 
	 	 	(iv) intentional wrongful engagement by the Participant in any Competitive Activity; and, for
purposes of this subsection (iv), any such act shall have been demonstrably and materially
harmful to the Company. For purposes of the Plan, no act or failure to act on the part of
the Participant will be deemed “intentional” if it was due primarily to an error in judgment
or negligence, but will be deemed “intentional” only if done or omitted to be done by the
Participant not in good faith and without reasonable belief that the Participant’s action or
omission was in the best interest of the Company.
	 
	B.	 	“Competitive Activity” shall mean, with respect to a Participant, the Participant’s
participation, without the written consent signed by an officer of the Company and authorized
by the Board, in the management of any business enterprise if (i) such enterprise engages in
substantial and direct competition with the Company and such enterprise’s sales of any
product or service competitive with any product or service of the Company amounted to 10% of
such enterprise’s net sales for its most recently completed fiscal year and if the Company’s
net sales of said product or service amounted to 10% of the Company’s net sales for its most
recently completed fiscal year or (ii) the primary business done or intended to be done by
such enterprise is in direct competition with the business of providing facility services in
any geographic market in which the Company operates. “Competitive Activity” will not include
the mere ownership of securities in any such enterprise and the exercise of rights
appurtenant thereto, if such ownership is less than 5% of the outstanding voting securities
or units of such enterprise.
	 
	C.	 	“Grant Date” means the date the Administrator grants the Award.
	 
	D.	 	“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.
	 
	E.	 	“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.






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





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	 	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 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




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	 	 	 	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 experiences a “separation from service” (within the
meaning of Section 409A of the Code) from the Company or an Affiliate
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,




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	 	 	 	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 experiences a “separation from service” (within the
meaning of Section 409A of the Code) from 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, if the period of such leave does not exceed six
months (or if longer, so long as the individual retains a right to
reemployment with the Company under an applicable statute or by
contract), the Participant shall not be deemed during the period of
any such absence, by virtue of such absence alone, to have experienced
a “separation from service” (within the meaning of Section 409A of the
Code) from 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, which cessation constitutes a
“separation from service” under Section 409A of the Code and which is
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
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




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	 	 	 	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.






	 	1.	 	Subject to Section IV.F.2 below, upon the lapse of the restriction
imposed on Restricted Stock Unit Awards or Performance Share Award,
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 75 days following the date on which the
restrictions lapse. Payment shall be made in Shares in the form of a
stock




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	certificate. The foregoing notwithstanding, the Participant may elect to defer payment of the
Restricted Stock Units in the manner described in Section IV.G;






	 	2.	 	To the extent required in order to avoid accelerated taxation and/or
tax penalties under Code Section 409A, amounts that would otherwise be
payable pursuant to Section (IV)(F) of this Statement of Terms and
Conditions during the six-month period immediately following a
Participant’s termination of employment shall instead be paid on the
first business day after the date that is six months following the
Participant’s termination of employment (or upon the Participant’s
death, if earlier).






	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.




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	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 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. All Options assumed or continued by
the Acquiror in connection with a Change in Control will become fully
vested and exercisable if the Participant’s employment is terminated
without Cause at any time during the 12-month period following the
Change in Control.





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	 	 	Any Option 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, contingent on the Change in Control,
become fully vested and 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. All
Awards other than Options assumed or continued by the Acquiror in
connection with a Change in Control will become fully vested and all
restrictions on such Awards will lapse if the Participant’s employment
is terminated without Cause at any time during the 12-month period
following the Change in Control. Any Award 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, and all Restricted Unit Awards and Performance Share Awards
shall become immediately payable. Notwithstanding anything in this
Section VI.B to the contrary, if the Change in Control does not
constitute a “change in effective ownership or control” of the Company
within the meaning of Code Section 409A, the Restricted Stock Units
and Performance Shares granted pursuant to this Statement of Terms and
Conditions will vest as provided in this Section VI.B, but will be
payable to the Participant in accordance with the provisions of
Section IV.
	 
	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




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	 	 	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 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.





660442.03-New
York Server 5A - MSW



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