Document:

Consulting Services Agreement

 Exhibit 10.2 
 CONSULTING SERVICES AGREEMENT 
 This Consulting Services Agreement (“Agreement”) is
executed to be effective as of June 1, 2009 by and between El Paso Electric Company, a Texas corporation (“EPE”), and Scott D. Wilson, a Florida resident (“Consultant”). 
  

	1.	Recitals. 

  

	 	1.1	EPE desires Consultant to perform certain services described in the statement of work (the “Statement of Work”) appended to and hereby incorporated into this Agreement by
reference as Appendix 1, all and in each instance in accordance with the provisions of this Agreement and such Statement of Work. 

  

	 	1.2	Consultant is ready, willing, and able to undertake the duties and obligations set forth in this Agreement. 

  

	 	1.3	In consideration of the foregoing recitals and the mutual covenants contained in this Agreement, EPE and Consultant agree as provided below. 

  

	2.	Services to Be Performed. 

  

	 	2.1	All services and deliverables to be performed and provided under this Agreement are described in the Statement of Work. Consultant, as an independent contractor, shall furnish all
necessary supervision, labor, materials, tools, and equipment to perform the services and provide the deliverables specified in and in the manner prescribed by this Agreement and the Statement of Work. Changes to the scope of services or
deliverables described in the Statement of Work (including any corresponding increase or decrease in pricing therefor) shall not be effective unless set forth in a written document executed by EPE and Consultant. 

  

	3.	Term and Termination of Agreement. 

  

	 	3.1	This Agreement shall be for a term of twelve (12) months beginning June 1, 2009 (the “Effective Date”) and continuing through May 31, 2010 (the
“Term”), unless earlier terminated in accordance with Sections 3.2 or 3.3. 

  

	 	3.2	Either party may upon written notice terminate this Agreement at any time if the other party breaches a material provision of this Agreement and such breach is not fully cured
within thirty (30) days following the non-performing party’s receipt of notice describing the nature of such breach in reasonable detail. In such event and subject to the restrictions and limitations prescribed by Section 7.3 and
Section 7.4, the non-breaching party may take such action to enforce any other rights or remedies available under this Agreement, applicable law, and/or principles of equity. 

  

	 	3.3	EPE shall also have the right and option to terminate this Agreement immediately upon notice to Consultant if, during the Term, (i) Consultant accepts full-time employment with
any person or entity, or (ii) Consultant interferes with the business of the Company or holds any position or accepts any engagement that results in a position adverse to that of the Company in any matter. 

  

	4.	Compliance with Applicable Laws. 

  

	 	4.1	Consultant shall perform all services in accordance and compliance with all federal, state, and local statutes, laws, ordinances, codes, rules, and regulations (collectively
“Laws”) including, without limitation, Laws governing workplace health and safety and the protection of the environment. 

 Consulting Services Agreement – Wilson 

	5.	Inspection, Acceptance, and Payment. 

  

	 	5.1	EPE shall pay Consultant compensation for services and deliverables in accordance with the provisions of this Agreement and the Statement of Work. EPE agrees to pay Consultant a
monthly retainer in the amount of Twenty Eight Thousand Three Hundred Fifty Dollars ($28,350.00), payable each month throughout the term of this Agreement. 

  

	 	5.2	Consultant shall deliver monthly invoices to EPE for services rendered. Each invoice shall be mailed or hand delivered to: 

 El Paso Electric Company 
 Attention: David W.
Stevens 
 100 N. Stanton 
 El
Paso, Texas 79901 
  

	 	5.3	All payments or reimbursements otherwise due Consultant under this Agreement shall be subject to EPE’s right to contractual setoff solely for a breach of Paragraph 5 of the
Employment Retirement Agreement and Release of even date which right of contractual setoff is hereby granted by Consultant to EPE to the fullest extent allowed by applicable law. 

  

	 	5.4	As set forth in the Statement of Work, EPE agrees to reimburse Consultant for reasonable out-of-pocket expenses incurred for out-of-town travel which was requested and approved in
advance by EPE and for other incremental expenses necessary for Consultant to perform his duties under this contract, such as overnight delivery services, long distance phone charges, etc. No reimbursement will be made, however, for
(i) alcoholic beverages, (ii) hotel pay-per-view movies or other entertainment expenses, or (iii) undocumented costs or expenses. Consultant shall use reasonable efforts to limit travel and living expenses by using coach airfare,
booked at least seven (7) days in advance (unless otherwise approved in advance by EPE), staying in housing identified by EPE as offering contractors a discounted rate, and sharing rental cars. 

  

	6.	Services, Deliverables, and Media Warranties. 

  

	 	6.1	All services and deliverables shall conform to all descriptions, specifications, and standards included or referenced in the Statement of Work and be performed in good faith and
with that level of care and skill ordinarily exercised by members of Consultant’s profession. 

  

	 	6.2	If, during the one (1) year period following EPE’s acceptance (as described in Section 5.3) of all services and deliverables to be provided under this Agreement, any
service or deliverable fails to conform to the warranty prescribed by Section 6.1, Consultant shall at its sole cost and expense and within thirty (30) days following its receipt of written notice describing such nonconformity in
reasonable detail, re-perform such service or repair or replace such deliverable to correct such nonconformity. 

  

	 	6.3	THE REMEDY PRESCRIBED BY SECTION 6.2 SHALL BE EPE’S SOLE AND EXCLUSIVE REMEDY FOR CONSULTANT’S BREACH OF THE LIMITED WARRANTIES PRESCRIBED BY SECTION 6.1.

  

	 	6.4	EXCEPT AS PROVIDED IN SECTION 6.1, CONSULTANT DISCLAIMS ALL OTHER WARRANTIES WITH RESPECT TO THE SERVICES AND DELIVERABLES, INCLUDING WITHOUT LIMITATION, WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 

  

	7.	Indemnification and Limitation of Liability. 

  

	 	7.1	 Each party shall indemnify and hold harmless the other party and its respective owners, directors, officers, and employees for, against, and from any and all
claims, liabilities, damages, losses, costs, and expenses of any kind or nature (including reasonable attorneys’ 

  

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	Consulting Services Agreement – Wilson	 		 	

	 	 
fees) for personal injury (including mental anguish) to or death of any person or for destruction or loss of or damage to the property of any third person or
entity in each instance to the extent determined to be proportionately attributable to the (i) negligence (including strict liability in tort), gross negligence, or willful misconduct of the indemnitor, its owners, directors, officers,
employees, agents, or contractors arising from, in connection with, or in any way related to this Agreement (including the performance or nonperformance thereof), or (ii) breach of this Agreement by the indemnitor, its owners, directors,
officers, employees, agents, or contractors. It is the intention of the parties that the indemnitees shall be entitled to reciprocal and comparative indemnification under this Section 7.1. 

  

	 	7.2	Consultant shall indemnify, defend, and hold EPE harmless against any loss, cost, or expense arising out of any claim that Consultant’s services or deliverables or EPE’s
use of the deliverables under this Agreement infringes any United States patent, copyright, or trade secret. Should Consultant’s services or deliverables be determined to have infringed, or, if in Consultant’s judgment such use is likely
to infringe, any such patent, copyright, or trade secret, Consultant may, at its option and at its sole cost and expense (i) obtain for EPE the right to continue to use the affected services and deliverables, or (ii) replace or modify the
affected services and deliverables to make such use non-infringing and substantially equivalent in function. This indemnity does not cover infringement claims arising from or caused by modifications to Consultant’s services or the deliverables
that are not made by Consultant, its agents, affiliates or subcontractors or that result from the combination of such matters with products or services not provided by Consultant. Consultant’s obligations under this Section 7.2 are
conditioned upon: 

  

	 	(i)	EPE promptly notifying Consultant in writing of any such claim; 

  

	 	(ii)	Consultant being able to control the defense and settlement of such claim; and 

  

	 	(iii)	EPE cooperating with all reasonable requests of Consultant (at Consultant’s expense) in defending or settling such claim. EPE shall have the right, at its option and expense,
to participate in the defense of any action, suit or proceeding relative to such claims through counsel of its own choosing. 

  

	 	7.3	EXCEPT FOR CLAIMS FOR (i) INDEMNIFICATION UNDER SECTION 7.1 OR SECTION 7.2 OR BREACH OF THE CONFIDENTIALITY PROVISIONS OF SECTION 9, EACH TO WHICH THE PROVISIONS AND
LIMITATIONS OF THIS SECTION 7.3 SHALL NOT APPLY, OR (ii) DAMAGE TO OR DESTRUCTION OF THE REAL PROPERTY OR TANGIBLE PERSONAL PROPERTY OF A PARTY, WHICH SHALL BE LIMITED TO THE AMOUNTS REQUIRED TO FULLY ABATE OR REPAIR SUCH DAMAGE TO OR TO
REPLACE SUCH PROPERTY, NOT TO EXCEED THE AGGREGATE AMOUNT OF $1,000,000 REGARDLESS OF WHETHER SUCH AMOUNTS ARE CONSIDERED SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR SPECIAL, INCIDENTAL,
CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES, LOSS OF PROFITS OR REVENUE, LOSS OF USE OF PROPERTY, OR OTHER ECONOMIC DAMAGES. ALL PAYMENTS DUE CONSULTANT UNDER THIS AGREEMENT FOR SERVICES, DELIVERABLES, COSTS, AND EXPENSES SHALL BE DEEMED TO
CONSTITUTE DIRECT DAMAGES (AND NOT SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES) FOR THE PURPOSES OF THIS SECTION 7.3. 

  

	 	7.4	EXCEPT FOR CLAIMS FOR (i) INDEMNIFICATION UNDER SECTION 7.1 OR SECTION 7.2 OR BREACH OF THE CONFIDENTIALITY PROVISIONS OF SECTION 9, EACH TO WHICH THE PROVISIONS OF THIS
SECTION 7.4 SHALL NOT APPLY, OR (ii) DAMAGE TO OR DESTRUCTION OF REAL PROPERTY OR TANGIBLE PERSONAL PROPERTY OF EPE, WHICH SHALL BE SUBJECT TO THE PROVISIONS AND LIMITATIONS PRESCRIBED BY SECTION 7.3, CONSULTANT SHALL IN NO EVENT BE LIABLE TO
EPE FOR AN AMOUNT EXCEEDING THE AGGREGATE AMOUNT TO BE PAID TO CONSULTANT FOR SERVICES AND DELIVERABLES UNDER THIS AGREEMENT. 

  

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	8.	Force Majeure. 

  

	 	8.1	Neither party shall be liable to the other for failure to perform or delay in performance of its obligations under this Agreement if and to the extent that such failure or delay is
caused by or results from causes beyond its control, including, without limitation, any act (including delay, failure to act, or priority) of the other party or any governmental authority, civil disturbances, fire, acts of God, acts of public enemy,
compliance with any regulation, order, or requirement of any governmental body or agency, or inability to obtain transportation or necessary materials in the open market. 

  

	 	8.2	As a condition precedent to any extension of time otherwise prescribed by Section 8.3, the party seeking an extension of time shall, not later than ten (10) days following
the occurrence of the event giving rise to such delay, provide the other party written notice of the occurrence and nature of such event. 

  

	 	8.3	In the event of a delay in performance excusable under Section 8, the date of delivery or time for performance of the work will be extended by a period of time reasonably
necessary to overcome the effect of such delay. 

  

	9.	Confidentiality and Nondisclosure. 

  

	 	9.1	For purposes of Section 9, “Confidential Information” shall mean all: 

  

	 	(i)	financial, statistical, marketing, customer, and personnel data and information furnished by or obtained from EPE; 

  

	 	(ii)	deliverables, output data, and information prepared for EPE under this Agreement; 

  

	 	(iii)	working papers, proprietary software, tools, and other methodologies of each party; 

  

	 	(iv)	software or other intellectual property licensed to EPE by any third party; 

  

	 	(v)	other data or information identified in writing as confidential or proprietary by either party; and 

  

	 	(vi)	oral information which is designated as confidential or proprietary at the time of disclosure and which is summarized and reduced to a writing otherwise conforming to
Section 9.1(v) within ten (10) business days following disclosure. 

  

	 	9.2	Each party receiving Confidential Information (a “Recipient”) shall use its best efforts and take all reasonable steps to ensure that Confidential Information is not
disclosed or transmitted to any person or entity other than such Recipient’s consultants, officers and employees (collectively “Representatives”) who (i) have a need to review or know such Confidential Information in order to
perform the services or provide the deliverables described in the Statement of Work, (ii) are informed of the confidential nature of the Confidential Information, and (iii) agree to be bound by the terms of Section 9. Recipient shall
not be required to hold confidential any Confidential Information which (i) becomes publicly available other than through Recipient, (ii) is required to be disclosed by a governmental or judicial order, rule or regulation, (iii) is
independently developed by Recipient, or (iv) becomes available to Recipient without restriction from a third party. Recipient shall be responsible for any breach of Section 9 by its Representatives. 

  

	 	9.3	 Should any person or entity seek to legally compel Recipient (by oral or written questions, interrogatories, request for information or documents, subpoena, civil
investigative demands, regulation, statute, or otherwise) to disclose any Confidential Information, Recipient will provide the disclosing party prompt written notice so that the disclosing party may seek a protective order or other appropriate
remedy (including participating in any proceeding to which Recipient is a party, which Recipient will use its reasonable business and legal efforts 

  

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to permit). If, in the absence of a protective order, Recipient is, in the opinion of its legal counsel, compelled to disclose the Confidential Information,
Recipient may disclose only such of the Confidential Information to the person or entity compelling disclosure as is required by applicable law, order, rule, or regulation. 

  

	 	9.4	Recipient acknowledges that the disclosing party would be irreparably injured by any breach of Section 9 and that remedies at law may be inadequate to protect the disclosing
party against such injury. Accordingly, Recipient agrees that the disclosing party shall be entitled to equitable relief including, without limitation, injunctive relief and specific performance, without proof of actual damages in the event of any
actual or threatened breach of any provision of Section 9 by Recipient, and any requirement for the posting of a bond or similar security as a condition precedent to such relief is hereby waived. Such remedies shall not be deemed to be the
exclusive remedies for a breach of Section 9 by Recipient, but shall be in addition to all other remedies available at law or in equity. 

  

	 	9.5	Recipient shall return all Confidential Information within ten (10) days following receipt of the disclosing party’s written request for the return of such information.

  

	10.	Insurance. 

  

	 	10.1	Consultant shall at all times during the term of this Agreement carry and maintain at his sole cost and expense personal automobile liability coverage with limit of liability of not
less than that required by the State of Texas. 

  

	 	10.2	On or before the commencement of services or conveyance of deliverables under this Agreement, Consultant shall provide EPE a certificate of insurance evidencing the coverage
required by Section 10.1 if requested by EPE. 

  

	11.	Notices. 

  

	 	11.1	Except as otherwise provided in this Agreement, all notices under this Agreement shall be in writing and be effective upon delivery if delivered by (i) hand,
(ii) certified or registered United States Mail postage prepaid, or (iii) facsimile, provided that service by facsimile after 5:00 p.m. local time of the recipient shall be deemed delivered on the following business day, as follows:

  

	 	(i)	if notice is to Consultant: 

 Scott D. Wilson 

6400 Jamaica Court 
 Tallahassee, FL
32309 
 Facsimile (850) 906-9257 
  

	 	(ii)	if notice is to EPE: 

 El Paso Electric Company

 Attention David W. Stevens 
 100 N. Stanton 
 El Paso, Texas 79901 
 Facsimile (915) 521-4728; and 
  

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	Consulting Services Agreement – Wilson	 		 	

 if the notice is sent for the purposes described in Section 3.3, Section 8.2, Section 9.4,
or Section 11.2, with a copy to: 
 El Paso Electric Company 
 Office of the General Counsel 
 100 N.
Stanton 
 El Paso, Texas 79901 
 Facsimile (915) 521-4747. 
  

	 	11.2	Each party may change its address for purposes of notice under this Agreement by notice complying with Section 11.1. 

  

	12.	Taxes. 

  

	 	12.1	EPE agrees to pay the amount of any sales, use, excise, or similar taxes (other than franchise taxes or taxes based on Consultant’s income) applicable to the performance of the
services, if any, or, in lieu thereof, EPE shall provide Consultant a valid certificate exempting EPE from payment of such taxes. 

  

	 	12.2	EPE shall have no responsibility with respect to withholding, deductions, or payment of any federal or state income or employment-related taxes on behalf of Consultant or any of
Consultant’s employees. Consultant agrees to pay and comply with and hold EPE harmless from and against the payment of all income and employment-related taxes which may be payable by Consultant under federal, state, or local laws arising out of
the performance of this Agreement, including any interest or penalties. Consultant waives any and all claims for compensation because of any increase in the aforementioned taxes. 

  

	13.	Subcontracts. 

  

	 	13.1	Consultant may not subcontract all or any part of the services or deliverables without the prior written approval of EPE, and such subcontracting shall not relieve Consultant of any
of his duties or obligations under this Agreement. 

  

	14.	Independent Contractors. 

  

	 	14.1	Consultant is an independent contractor and nothing in this Agreement shall be construed or deemed to create the relationship of employer and employee, joint venturers, or
partnership between the parties. Subject to the provisions of this Agreement, Consultant shall be solely responsible for and shall wholly control the details of the services to be performed under this Agreement including, but not limited to,
(i) the means and methods of performing the services, (ii) when to start and stop work and to take breaks and to control the progress of the services, (iii) coordination of Consultant’s services with the efforts of EPE’s
employees and other contractors retained by EPE, and (iv) the duty and obligation to select and furnish the personal protective gear, transportation, tools, implements, and supplies necessary to accomplish Consultant’s duties and
obligations under this Agreement. 

  

	15.	[SECTION INTENTIONALLY OMITTED] 

  

	16.	Entire Agreement. 

  

	 	16.1	This Agreement constitutes the entire agreement between the parties with respect to the services and deliverables and supersedes, except to the extent expressly incorporated herein,
all prior negotiations, representations, or agreements relating thereto, whether written or oral. No amendments, changes, alterations, or modifications of this Agreement shall be effective unless in writing and executed by EPE and Consultant.

  

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	Consulting Services Agreement – Wilson	 		 	

	17.	Captions. 

  

	 	17.1	Headings of particular paragraphs are inserted for convenience only and in no way constitute a limitation of the scope of the paragraphs to which they refer.

  

	18.	Partial Invalidity. 

  

	 	18.1	If any term or provision of this Agreement is determined to be invalid, void, or unenforceable, the remaining terms and provisions of this Agreement shall, to the extent reasonable
and practicable, continue in full force and effect. 

  

	19.	Waiver. 

  

	 	19.1	No waiver of the terms, conditions, and covenants of this Agreement shall be binding and effective unless the same shall be in writing signed by the parties. A waiver of any breach
of the terms, conditions, and covenants of this Agreement shall be for that one time only and shall not apply to any subsequent breach. 

  

	20.	Assignment. 

  

	 	20.1	Consultant shall not assign this Agreement to any person or entity without the prior written consent of EPE. Any attempted assignment in violation of this Section 20.1 shall be
null and void. 

  

	21.	Attorneys’ Fees. 

  

	 	21.1	If legal action is filed to enforce the terms of this Agreement, the prevailing party shall be entitled to court costs, collection costs, and reasonable attorneys’ fees in
addition to any other relief to which that party may be entitled. 

  

	22.	Governing Law. 

  

	 	22.1	This Agreement shall be governed by and construed under the laws of the State of Texas without reference to its rules governing conflicts of law or choice of laws.

  

	23.	Non-Solicitation of Employees. 

  

	 	23.1	Absent prior written consent of the other party in each instance, neither party nor any of its related or affiliated persons or organizations, will, for so long as this Agreement is
in effect, solicit for hire, hire or in any way employ or engage the services of or otherwise compensate any person who, in the preceding twelve (12) month period, was an employee of the other party or its related or affiliated persons or
organizations, until a period beginning twelve (12) months after such person’s employment with the other party terminated. In the event of a breach of the provisions of this Section 23.1, the non-breaching party shall provide written
notice to the other party of the alleged violation hereof and shall provide a cure period of thirty (30) days for the breaching party to remedy the violation if it is able and so chooses or to obtain the written consent of the non-breaching
party to the hiring or solicitation of such employee or former employee. In the event that the breaching party fails to cure the violation or obtain the written consent of the non-breaching party within the cure period specified above, the
non-breaching party shall be entitled to collect liquidated damages from the breaching party in an amount equal to the first year’s salary for the employee at issue. The liquidated damages specified above shall be the exclusive remedy for a
violation of this Section 23.1 and the non-breaching party shall not seek or collect any additional damages or remedies (including equitable relief) in connection with the violation. 

  

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	24.	Survival. 

  

	 	24.1	The provisions of Sections 3, 5, 6, 7, 9, 11, 12, 13, 14, 16, 17, 18, 19, 20, 21, 22, 23, 24 and 25 shall survive the termination of this Agreement; provided, however, the
provisions of Sections 6.1 and 6.2 shall not survive the termination of this Agreement under Section 3.2 or Section 3.3. 

  

	25.	Multiple Counterparts. 

  

	 	25.1	This Agreement may be signed in two or more counterparts, each of which shall be treated as an original but which, when taken together, shall constitute one and the same instrument.

  

	26.	Cross Default. 

  

	 	26.1	Any default under the terms and conditions of that certain Employee Separation Agreement and Release entered into of even date herewith between Consultant and EPE shall be construed
to be a default under the terms and conditions of this Agreement. 

  

					
	Scott D. Wilson	 	El Paso Electric Company
			
	 /s/ Scott D. Wilson
	 	By:	 	 /s/ David W. Stevens

	Signature	 		 	David W. Stevens
		 		 	Chief Executive Officer

  

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	Consulting Services Agreement – Wilson	 		 	

 STATEMENT OF WORK 
 I. Description of Consulting Services: 
 Consultant shall make himself available from time to time to provide advice, expert
or factual testimony, preparation or review of testimony, preparation of analyses or other work product, attend hearings or other meetings, or otherwise assist EPE, as directed by David Stevens, David Carpenter or their designee, in connection with
state and federal regulatory matters, including, but not limited to, matters before the New Mexico Public Regulation Commission, the Public Utility Commission of Texas and the Federal Energy Regulatory Commission, or provide such other services
within the scope of Consultant’s prior job responsibilities as the Chief Financial Officer of EPE as may be reasonably requested by EPE from time to time. 
 II. Consultant agrees to devote a reasonable amount of time each month, not to exceed 80 hours, though by the mutual consent of EPE and the Consultant such hours may be increased to a total not to exceed 100 hours per month, in the
performance of the services described above 
 III. Consultant shall be responsible for out-of-pocket expenses incurred in the performance of his duties
hereunder unless such expenses are reasonable and have been approved in advance by EPE. EPE agrees to reimburse Consultant for reasonable out-of-pocket expenses incurred for out-of-town travel which was requested by EPE and for other incremental
expenses necessary for Consultant to perform his duties under this contract, such as overnight delivery services, long distance phone charges, etc. 
  

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	Consulting Services Agreement – WilsonForm of Performance Award Notice and Terms and Conditions for 2009-2011 awards

 Exhibit 10.1 
 NOTICE OF PERFORMANCE STOCK AWARD 
 February 23, 2009 
 Company: «Company» 
 Minimum Performance Award (2009 - 2011
Period): 0 Shares* 
 Target Performance Award (2009 - 2011 Period): _____ Shares 
 Maximum Performance Award (2009 - 2011 Period): _____ Shares** 
 Date of Grant: February 23, 2009 
 PERSONAL AND CONFIDENTIAL 
 (Name and Address) 
 Dear (Salutation): 
 We are pleased to inform you that, as a key employee of
the company referred to above, you have been granted a performance award by the Compensation and Stock Option Committee of the Board of Directors under the Fortune Brands, Inc. 2007 Long-Term Incentive Plan (the “Plan”). 
 The award is granted under and governed by the Plan and the February 2009 Performance Stock Award Terms and Conditions (the “Terms”). Your performance award
will be comprised of shares of Common Stock of Fortune Brands, Inc. 
 Your award is based on the achievement by Fortune Brands and its consolidated
subsidiaries of certain performance goals established by the Fortune Brands Board of Directors Compensation and Stock Option Committee. Goals are set for each year in the three-year performance period, and are based on return on invested capital and
earnings per share performance. The target goals for 2009 are set forth in the attached Matrix. The minimum and maximum goals for 2009 are also set forth in the attached Matrix. 
  

	*	Minimum performance goals for performance period must be exceeded in order for performance award to be paid. 

  

	**	Maximum performance goals for performance period must be met in order for maximum performance award to be paid. 

 For your information, we have attached to this notice the following documents: (1) the Terms, (2) the Plan, and
(3) the Matrix. You should review these documents carefully in order to fully understand how your award operates and your rights as an award recipient. 
 Under the terms of the Plan, you do not need to sign and return, or otherwise acknowledge your receiving, this notice. If you have any questions about your award, please contact Barb Brisinte, Benefits & Compensation
Analyst, at (847) 484-4212. 
  

	
	 Sincerely yours,
  
 FORTUNE BRANDS, INC.

	
	  
	Vice President - Human Resources

 FEBRUARY 2009 
 PERFORMANCE STOCK AWARD 
 TERMS AND CONDITIONS 
 You have been granted a performance stock award under the Fortune Brands, Inc. 2007 Long-Term Incentive Plan (the “Plan”). 
 The date of the grant, the minimum performance award, the target performance award and the maximum performance award are listed at the top of your Notice of Performance
Stock Award. The average per share targets and the minimum and maximum average return on invested capital and earnings per share targets are established by the Fortune Brands Board of Directors’ Compensation and Stock Option Committee (the
“Committee”) on an annual basis for each year in the performance period. The 2009 performance targets are set forth in the Matrix attached to your Notice of Performance Stock Award. You will be notified in subsequent years of the annual
targets for 2010 and 2011. 
 1. Number of Shares Payable Pursuant to Award. Subject to the provisions of paragraphs 5 through 13
below, the number of shares of Common Stock of Fortune Brands, Inc. (“Fortune”) payable to you pursuant to your award shall be determined as follows: 
 (a) If the Average Return on Invested Capital and Cumulative Earnings Per Share (as determined pursuant to paragraph 2) of Fortune and its
consolidated subsidiaries (the “Company”) for the performance period equals the minimum goals for each year of the three-year performance period as established by the Committee, the number of shares payable to you will be your minimum
performance award set forth on the Notice of Performance Stock Award. 
 (b) If the Average Return on Invested Capital and
Cumulative Earnings Per Share (as determined pursuant to paragraph 2) of the Company for each year of the three-year performance period equals or exceeds the maximum goal for that performance period as set forth in the attached Matrix, the number of
shares payable to you will be your maximum performance award set forth on the Notice of Performance Stock Award. 
 (c) If the
Average Return on Invested Capital and Cumulative Earnings Per Share (as determined pursuant to paragraph 2) of the Company for the performance period exceeds the minimum goals for some or all of the years in the performance period, but is less than
the maximum goals for some or all of the years in the performance period, the number of shares payable to you will be interpolated between the goals established for each year in the performance period. 
  

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 (d) No shares shall be payable for any performance period if the Average Return on
Invested Capital and Cumulative Earnings Per Share (as determined pursuant to paragraph 2) for the performance period is less than the minimum goals for each year within the performance period. 
 Subject to the provisions of paragraphs 5 through 13, the shares of Common Stock of Fortune payable to you pursuant to this performance award with
respect to any performance period shall be paid by Fortune as soon as practicable after the end of that performance period and after the Committee certifies attainment of the performance goals. 
 2. Determination of Net Income, Return on Invested Capital and Cumulative Earnings Per Share. “Return on Invested Capital” for any
performance period means Net Income during the performance period divided by average invested capital for the same period. Net Income, Return on Invested Capital and Earnings Per Share shall be adjusted to eliminate non-recurring income or expense
items and significant items not considered in determining the initial performance measures; such adjustments may include, but are not limited to, restructuring and restructuring related charges; the impact of actual foreign exchange rates varying
from planned foreign exchange rates; significant share repurchase activity; significant nonrecurring income tax credits or charges; and the impact of significant acquisitions and divestitures of businesses. 
 3. Dividend Equivalents. Subject to the provisions of paragraphs 5, 6, 7, 9, 11, 12 and 13, with respect to the performance period you shall be
paid, on the date of payment of any shares with respect to the performance period pursuant to paragraph 1, a cash Dividend Equivalent that is equal to the amount of the cash dividends that would have been declared on that number of shares actually
paid to you if such shares had been issued and outstanding on any record date for the payment of any cash dividends on Common Stock of Fortune during the performance period and prior to the date of payment of such shares. Such Dividend Equivalent
shall be paid, subject to paragraph 16, on the date of payment of such shares pursuant to paragraph 1. Payment of any Dividend Equivalent shall be made by delivery to you of a check of Fortune in the amount of such Dividend Equivalent or in such
other manner as is determined by the Committee. 
 4. Transferability of Award. This performance award shall not be transferable by
you otherwise than by will or by the laws of descent and distribution. 
 5. Termination of Employment for Death, Disability, Retirement
or Elimination of Position. If your employment by the Company terminates during any performance period by reason of your death, disability, retirement under a retirement plan of the Company (or retirement after age 55 and 5 years of service) or
the elimination of your position, you will be entitled to receive as soon as practicable after the end of that performance period and after the Committee certifies that performance goals have been attained for that performance period, a payment of
the number of shares of Common Stock, if any, that would otherwise be payable pursuant to paragraph 1. Also in the event of such a termination of employment, you will be paid, on the date of payment of any shares paid pursuant to the preceding
sentence, Dividend Equivalents pursuant to paragraph 3, and you will not be entitled to be credited with or to receive any other Dividend Equivalents. 
  

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 6. Termination of Employment for Other Reasons. Except as otherwise provided in paragraphs 9
through 13 below, if your employment by the Company terminates during a performance period other than by reason of your death, disability, retirement under a retirement plan of the Company (or retirement after age 55 and 5 years of service) or the
elimination of your position, you will not be entitled to any payment of shares pursuant to paragraph 1 with respect to that performance period and will not be entitled to receive payment pursuant to paragraph 3 of any Dividend Equivalent.

 7. Forfeiture of Award for Detrimental Activity. If you engage in detrimental activity at any time (whether before or after
termination of your employment), you will not be entitled to any payment of shares or Dividend Equivalents hereunder and you will forfeit all rights with respect to these payments. For purposes of this paragraph 7, “detrimental activity”
means willful, reckless or grossly negligent activity that is determined by the Committee to be detrimental to or destructive of the business or property of the Company. Any such determination of the Committee shall be final and binding for all
purposes. Notwithstanding the foregoing, no payment under the Plan shall be forfeited or become not payable by virtue of this paragraph 7 on or after the date of a Change in Control (as defined in the Plan). 
 8. Stock Exchange Listing; Fractional Shares. Fortune shall not be obligated to deliver any shares until they have been listed (or authorized for
listing upon official notice of issuance) upon each stock exchange upon which are listed outstanding shares of the same class as that of the shares subject to the award and until there has been compliance with such laws or regulations as Fortune may
deem applicable. Fortune agrees to use its best efforts to effect such listing and compliance. No fractional shares (or any cash payment in lieu thereof) will be delivered and the number of shares to be delivered will be rounded up or down to the
nearest whole share. 
 9. Transfer of Employment; Leave of Absence. For the purposes of this Agreement, (a) a transfer of your
employment from Fortune to a subsidiary or vice versa, or from one subsidiary to another, without an intervening period, shall not be deemed a termination of employment, and (b) if you are granted in writing a leave of absence, you shall be
deemed to have remained in the employ of Fortune or a subsidiary during such leave of absence. 
 10. Investment Representations.
Prior to each issuance of shares of Common Stock payable hereunder, you shall make such representations as may be required that such shares are to be held for investment purposes and not with a view to or for resale or distribution except in
compliance with the Securities Act of 1933, as amended (the “Securities Act”), and shall, if required by the Committee, give a written undertaking to Fortune in form and substance satisfactory to the Committee that you will not publicly
offer or sell or otherwise distribute such shares other than (a) in the manner and to the 

  

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extent permitted by Rule 144 promulgated by the Securities and Exchange Commission under the Securities Act, (b) pursuant to any other exemption from
the registration provisions of the Securities Act or (c) pursuant to an effective registration statement under the Securities Act. 
 11. Adjustments. (a) In the event of any merger, consolidation, stock or other non-cash dividend, extraordinary cash dividend, split-up, spin-off, combination or exchange of shares, reorganization or recapitalization or change
in capitalization, changes in accounting, tax or legal rules, or any other similar corporate event, the number and kind of shares that are covered by your award (including, in the case of any such event other than an extraordinary cash dividend, the
number of shares in respect of which Dividend Equivalents may be credited and paid pursuant to paragraph 3) immediately prior to such event may be proportionately and appropriately adjusted. 
 (b) Adjustments (which may be increases or decreases) may be made by the Committee in the Average Return on Invested Capital and Cumulative Earnings Per
Share targets to take into account changes in law and accounting and tax rules and to make such adjustments as the Committee deems necessary or appropriate to reflect the inclusion or exclusion of the impact of extraordinary or unusual items, events
or circumstances, including, without limitation, acquisitions or divestitures by or other material changes in the Company, provided that no adjustment shall be made which would result in an increase in your compensation if your compensation is
subject to the limitation on deductibility under Section 162(m) of the Internal Revenue Code, as amended, or any successor provision, for the year with respect to which the adjustment occurs. The Committee also may adjust the performance goals
and measurements applicable to Performance Awards and thereby reduce the amount to be received by any Participant pursuant to such Awards if and to the extent that the Committee deems it appropriate, provided that no such reduction shall be made on
or after the date of a Change in Control (as defined the Plan). 
 (c) The determination of the Committee as to the terms of any adjustment
made pursuant to this paragraph 11 shall be binding and conclusive upon you and any other person or persons who are at any time entitled to receipt of any payment pursuant to the award. 
 12. Change in Control of Fortune. Notwithstanding any other provision hereof, in the event that your employment is terminated on or after a Change
in Control (as defined in the Plan) (i) by the Company other than for just cause (as defined in the Plan) or (ii) by you because you in good faith believe that as a result of the Change in Control you are unable effectively to discharge
your duties or the duties of the position you occupied immediately prior to the Change in Control or because of a diminution in your aggregate annual compensation or in your aggregate benefits below that in effect immediately prior to the Change in
Control, your award shall become nonforfeitable and shall be paid out on the date your employment is so terminated (x) as if each performance period hereunder had been completed or satisfied and as if the Average Return on Invested Capital and
Cumulative Earnings Per Share for the Company for each performance period were sufficient to enable a 

  

 4 

 
payment to you pursuant to paragraph 1(c) of the number of shares that is equal to the target performance award set forth herein with respect to that
performance period, but (y) pro-rated for the portion of the performance period that elapsed prior to the termination of employment. Also in the event of such a termination of your employment, you will be entitled to receive payment pursuant to
paragraph 3 of any Dividend Equivalent that would have been declared, in respect of the shares you receive, during the performance period and prior to the date of payment of such shares, but will not be entitled to be credited with or to receive any
other Dividend Equivalents. 
 13. Divestiture; Termination of Plan. (a) In the event that your principal employer is a
subsidiary of Fortune that ceases to be such, then your employment shall be deemed to be terminated for all purposes hereof as of the date on which your principal employer ceases to be a subsidiary of Fortune (called the Divestiture Date) and your
award shall become nonforfeitable and shall be paid out on the Divestiture Date (x) as if the performance period hereunder had been completed or satisfied and as if the Average Return on Invested Capital and Cumulative Earnings Per Share for
the Company for that performance period were sufficient to enable a payment to you pursuant to paragraph 1(c) of the number of shares that is equal to target performance award set forth herein with respect to the performance period, but
(y) pro-rated for the portion of the performance period that elapsed prior to the Divestiture Date, all as determined by the Committee. Also in the event of such a deemed termination of employment, you will be entitled to receive payment
pursuant to paragraph 3 of any Dividend Equivalent that would have been declared, in respect of the shares you receive, during the performance period and prior to the Divestiture Date, but will not be entitled to be credited with or to receive any
other Dividend Equivalents. 
 (b) In the event of a termination of the Plan, then your employment shall be deemed to be terminated for all
purposes under the Plan as of the date of termination of the Plan and the provisions of paragraph 13(a) will apply to your award with the same effect as if the date of termination of the Plan were a Divestiture Date. 
 14. Accountants’ Letter. As soon as practicable after the end of each performance period, a letter shall be obtained from the independent
certified public accountants who have performed procedures to assist in evaluating compliance with the calculation of the Average Return on Invested Capital and Cumulative Earning Per Share of the Company for the performance period. 
 15. Stockholder Rights. Neither you nor any other person shall have any rights of a stockholder as to shares until such shares shall have been
recorded on Fortune’s official stockholder records as having been issued or transferred. 
 16. Tax Withholding. Upon any payment
to you of shares of Common Stock hereunder or upon any payment to you of any Dividend Equivalents hereunder, Federal income and other tax withholding (and state and local income tax withholding, if applicable) may be required by the Company in
respect of taxes on income realized by you. 

  

 5 

 
The Company may withhold such required amounts from your future paychecks or from, if applicable, such Dividend Equivalents or may require that you deliver
to the Company the amounts to be withheld. In addition, upon any payment to you of shares hereunder, you may pay any Federal income and other tax withholding (and any state and local income tax withholding, if applicable) by electing either to have
the Company withhold a portion of the shares of Common Stock otherwise deliverable to you, or to deliver other shares of Common Stock owned by you, in either case having a fair market value (on the date that the amount of tax you have elected to
have withheld is to be determined) of the amount to be withheld, provided that the election shall be irrevocable and shall be subject to such rules as the Committee may adopt. 
 17. Governing Law. This agreement and the award provided for hereunder shall be governed by and construed in accordance with the laws of the State
of Illinois. 
  

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