Document:

exv10w24

 

EXHIBIT 10.24

EXECUTIVE EMPLOYMENT AGREEMENT

THIS EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is effective (date), by and between (Executive
name) (“Executive”) and (Legal Company name) (“Company”) Corporate language: for itself and on
behalf of its subsidiary corporations as applicable herein.

WHEREAS, Company is engaged in the building maintenance and related service businesses, and

WHEREAS, Executive is experienced in the administration, finance, marketing, and/or operation of
such services, and

WHEREAS, Company has invested significant time and money to develop proprietary trade secrets and
other confidential business information, as well as invaluable goodwill among its customers, sales
prospects and employees, and

WHEREAS, Company has disclosed or will disclose to Executive such proprietary trade secrets and
other confidential business information which Executive will utilize in the performance of
Executive’s duties and responsibilities as (title) and under this Agreement; and

WHEREAS, Executive wishes to, or has been and desires to remain employed by Company, and to utilize
such proprietary trade secrets, other confidential business information and goodwill in connection
with Executive’s employment;

NOW THEREFORE, Executive and Company agree as follows:

	1.	 	EMPLOYMENT. Company hereby agrees to employ Executive, and Executive hereby accepts such
employment, on the terms and conditions set forth in this Agreement.

	2.	 	TITLE. Executive’s title shall be (title) of Company, subject to modification as determined
by the Company’s Board of Directors.

	3.	 	DEFINITIONS. The capitalized terms used in this agreement shall have the following
definitions:

	 	A.	 	“AAA” means the American Arbitration Association.
	 
	 	B.	 	“ABM” means ABM Industries Incorporated, its subsidiaries, successors, and
assigns.
	 
	 	C.	 	“Company” means (Company legal name) and its successors and assigns.
	 
	 	D.	 	“Base Salary” means the salary paid under Paragraph 7A for the applicable
Fiscal Year.
	 
	 	E.	 	“Board” means the Board of Directors of Company.

 

 

	 	F.	 	“Bonus” means a performance-based bonus payable under Paragraph 7B of this
Agreement.
	 
	 	G.	 	“Chief Executive Officer” means the Chief Executive Officer of Company.
	 
	 	H.	 	“Executive” means (Executive name).
	 
	 	I.	 	“Extended Term” means the period for which this agreement is extended under
Paragraph 15 of this Agreement.
	 
	 	J.	 	“Fiscal Year” means the period beginning on November 1 of a calendar year and
ending on October 31 of the following calendar year or such other period as shall be
designated by the Board as ABM’s fiscal year.
	 
	 	K.	 	“Initial Term” is the period beginning on (start date of term) and ending (end
date of term), unless sooner terminated under Paragraph 16 of this Agreement.
	 
	 	L.	 	“Insurance Contribution” means Company’s contribution to provide group health
and life insurance for Executive and excludes any payment by Executive for such
coverage.
	 
	 	M.	 	“Just Cause” means (i) theft or dishonesty; (ii) more than one instance of
neglect or failure to perform employment duties; (iii) more than one instance of
inability or unwillingness to perform employment duties; (iv) insubordination; (v)
abuse of alcohol or other drugs or substances affecting Executive’s performance of
Executive’s employment duties; (vi) material and willful breach of this Agreement;
(vii) other misconduct, unethical or unlawful activity; (viii) a conviction of or plea
of “guilty” or “no contest” to a felony under the laws of the United States or any
state thereof; or (ix) a conviction of or plea of “guilty” or “no contest” to a
misdemeanor involving a crime of moral turpitude under the laws of the United States or
any state thereof.
	 
	 	N.	 	“Managing Officer” means the officer designated by the Company to whom
Executive shall report and be accountable.
	 
	 	O.	 	“Modification Period” means the remainder of the Initial or the then current
Extended Term, as applicable, of this Agreement, following the change in Executive’s
employment status from that of a full-time employee to that of a part-time employee
under Paragraph 14 of this Agreement.
	 
	 	P.	 	“Performance Assessment” means the Managing Officer’s annual assessment of
Executive’s performance against the Performance Criteria.
	 
	 	Q.	 	“Performance Objectives” means the performance goals for Executive established
annually by the Managing Officer and approved by the Chief Executive Officer of Company
or designee, in accordance with Paragraph 7B of this Agreement.

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	 	R.	 	“Proprietary Information” means Company’s proprietary trade secrets and other
confidential information not in the public domain, including but not limited to
specific customer data such as: (i) the identity of Company’s customers and sales
prospects; (ii) the nature, extent, frequency, methodology, cost, price and profit
associated with services and products purchased from Company; (iii) any particular
needs or preferences regarding its service or supply requirements; (iv) the names,
office hours, telephone numbers and street addresses of its purchasing agents or other
buyers; (v) its billing procedures; (vi) its credit limits and payment practices; and
(vii) its organization structure.
	 
	 	S.	 	“Significant Transaction” means ABM Industries Incorporated’s acquisition or
disposition of a business or assets which ABM Industries Incorporated is required to
report under Item 2.01 of Form 8-K under the rules and regulations issued by the
Securities and Exchange Commission.
	 
	 	T.	 	“State of Employment” means (State).
	 
	 	U.	 	“Target Bonus” means (___)% of Executive’s Base Salary.
	 
	 	V.	 	“Total Disability” means Executive’s inability to perform Executive’s duties
under this Agreement and shall be deemed to occur on the 91st consecutive or
non-consecutive calendar day within any 12 month period that Executive is unable to
perform Executive’s duties under this Agreement because of any physical or mental
illness or disability.

4. DUTIES & RESPONSIBILITIES. Executive shall assume and perform such executive or managerial
duties and responsibilities as are assigned from time-to-time by the Managing Officer or such
other officer designated by the Managing Officer, to whom Executive shall report and be
accountable.

5. TERM OF AGREEMENT. This agreement shall end on (end date of term), unless sooner terminated
pursuant to Paragraph 16 or later extended to an Extended Term under Paragraph 15 of this
Agreement.

6. PRINCIPAL OFFICE. During the Initial Term and any Extended Term, as applicable, of this
Agreement, Executive shall be based at a Company office located in the State of Employment or
such other location as shall be mutually agreed upon by Company and Executive.

7. COMPENSATION. Company agrees to compensate Executive, and Executive agrees to accept as
compensation in full, for Executive’s assumption and performance of duties and
responsibilities pursuant to this Agreement:

	 	A.	 	SALARY. A salary paid in equal installments no less frequently than
semi-monthly. Executive shall be eligible, at the sole discretion of the Company, to
receive a merit increase based on Executive’s job performance or for any other reason
deemed appropriate by the Company.

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	 	B.	 	BONUS. Subject to subparagraphs (iii), (iv) and (v) below, Executive shall be
eligible to participate in the Company’s Bonus Plan for each Fiscal Year, as follows:

	 	i.	 	Executive’s Bonus may range from 0% to 150% of the Target Bonus
and shall be based on the Performance Assessment of Executive in terms of
Performance Objectives established for the Executive for the applicable Fiscal
Year. Performance Objectives will include both Company and individual
objectives, be both qualitative and quantitative in nature and shall be
established by the Managing Officer. The actual Bonus payout for each Fiscal
Year shall be approved by the Chief Executive Officer based upon the
Performance Assessment.
	 
	 	ii.	 	The Company reserves the right at any time to adjust the
Performance Objectives in the event of a Significant Transaction and/or for any
unanticipated and material events that are beyond the control of Company,
including but not limited to acts of god, nature, war or terrorism, or changes
in the rules for financial reporting set forth by the Financial Accounting
Standards Board, the Securities and Exchange Commission, rules of the New York
Stock Exchange and/or for any other reason which the Company determines, in
good faith, to be appropriate.
	 
	 	iii.	 	Company shall pay any Bonus to Executive for the Fiscal Year
following completion of the audit of ABM Industries Incorporated financial
statements, but no later than seventy-five (75) days after the end of each
Fiscal Year. The Company in its sole discretion may pay any prorated Target
Bonus earlier. In the event of modification of employment under Paragraph 14
or termination of employment hereunder other than (a) a termination under
Paragraph 16B, (b) a termination under Paragraph 16C for reasons other than
Executive’s health, or (c) Executive’s retiring at age 65 or more with less
than 10 years of employment at Company, Company shall pay Executive, within 75
days thereafter, a prorated portion of the Target Bonus based on the fraction
of the Fiscal Year that has been completed prior to the date of modification or
termination.
	 
	 	iv.	 	Absent bad faith or material error, any conclusions of the
Managing Officer, President and/or Chief Executive Officer with respect to the
Performance Assessment, Performance Objectives or the Bonus shall be final and
binding upon Executive and Company.
	 
	 	v.	 	Notwithstanding any other provision of this Agreement, the
Company may, prior to the beginning of any Fiscal Year, approve and notify the
Executive of a modification to the Target Bonus or the bonus range set forth in
subparagraph (i) above. The Company’s decision in this regard shall be deemed
final and binding on Executive. In addition, the Company may grant a
discretionary incentive bonus to Executive at any time in its sole discretion.

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	 	C.	 	PERQUISITES. Executive shall receive the then current perquisites generally
provided by Company to its executives. Such perquisites may include but not be limited
to car allowance, group health benefits, long-term disability benefits, group life
insurance, sick leave and vacation. Each of these perquisites is subject to the
applicable Company policy at all times. Executive expressly agrees that should
Executive terminate employment with Company for the purpose of being re-employed by an
ABM subsidiary or affiliate, Executive shall “carry-over” any previously accrued but
unused vacation balance to the books of the affiliate. Company reserves the right to
add, increase, reduce or eliminate any perquisites at any time, but no such benefit or
benefits shall be reduced or eliminated as to Executive unless generally reduced or
eliminated as to similarly-situated executives at Company.

	8.	 	PAYMENT OR REIMBURSEMENT OF BUSINESS EXPENSES. Company shall pay directly or reimburse
Executive for reasonable business expenses of Company incurred by Executive in connection with
Company business in accordance with the ABM Travel & Entertainment Policy. 

	9.	 	BUSINESS CONDUCT. Executive shall comply with all applicable laws pertaining to the
performance of this Agreement, and with all lawful and ethical rules, regulations, policies,
codes of conduct, procedures and instructions of Company, including but not limited to the
following:

	 	A.	 	GOOD FAITH. Executive shall not act in any way contrary to the best interest
of Company or ABM.
	 
	 	B.	 	BEST EFFORTS. During all full-time employment hereunder, Executive shall
devote full working time and attention to Company.
	 
	 	C.	 	VERACITY. Executive shall make no claims or promises to any employee,
supplier, contractor, customer or sales prospect of Company that are unauthorized by
Company or are in any way untrue.
	 
	 	D.	 	POSSIBLE CHANGE OF CONTROL. Executive agrees that if Executive is approached
by any person to discuss a possible acquisition or other transaction that could result
in a change of control of Company, Executive will immediately advise the Chief
Executive Officer, ABM’s General Counsel and the Chair of the Governance Committee of
the Board.
	 
	 	E.	 	CODE OF BUSINESS CONDUCT. Executive agrees to fully comply with and
annually execute a certification of compliance with ABM’s Code of Business Conduct and
Ethics.
	 
	 	F.	 	OTHER LAWS. Executive agrees to fully comply with the other laws and
regulations that govern Executive’s performance and receipt of compensation under this
Agreement.

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	10.	 	NO CONFLICT. Executive represents to Company that Executive is not bound by any contract
with a previous employer or with any other business that might prevent Executive from entering
into this Agreement. Executive further represents that Executive is not bound by any other
contracts or covenants that in any way restrict or limit Executive’s activities in relation to
Executive’s employment with Company that have not been fully disclosed to Company prior to the
signing of this Agreement.

	11.	 	COMPANY PROPERTY. Company shall, from time to time, entrust to the care, custody and control
of Executive certain of Company’s property, such as motor vehicles, equipment, supplies,
passwords and electronic and paper documents. Such documents may include, but shall not be
limited to, customer lists, financial statements, cost data, price lists, invoices, forms,
electronic files and media, mailing lists, contracts, reports, manuals, personnel files or
directories, correspondence, business cards, copies or notes made from Company documents and
documents compiled or prepared by Executive for Executive’s use in connection with Company
business. Executive specifically acknowledges that all such items, including passwords and
documents, are the property of Company, notwithstanding their preparation, care, custody,
control or possession by Executive at any time(s) whatsoever.

	12.	 	GOODWILL & PROPRIETARY INFORMATION. In connection with Executive’s employment hereunder:

	 	A.	 	PROPRIETARY INFORMATION. Executive agrees to utilize and further Company’s
goodwill among its customers, sales prospects and employees, and acknowledges that
Company may disclose to Executive and Executive may disclose to Company, Proprietary
Information.
	 
	 	B.	 	DUTY OF LOYALTY. Executive agrees that the Proprietary Information and
Company’s goodwill have unique value to Company, are not generally known or readily
available to Company’s competitors, and could only be developed by others after
investing significant time and money. Company makes the Proprietary Information and
Company’s goodwill available to Executive in reliance on Executive’s agreement to hold
the Proprietary Information and Company’s goodwill in trust and confidence. Executive
hereby acknowledges that to use this Proprietary Information and Company’s goodwill
other than for the benefit of Company would be a breach of such trust and confidence
and a violation of Executive’s duty of loyalty to Company.

	13.	 	RESTRICTIVE COVENANTS. In recognition of Paragraph 12 above, Executive hereby agrees that
during the term of this Agreement and thereafter as specifically agreed herein:

	 	A.	 	NON-SOLICITATION OF EMPLOYEES. While employed by Company and for a period of
one year following Executive’s termination of employment, Executive shall at no time
directly or indirectly solicit or otherwise encourage or arrange for any employee to
terminate employment with Company except in the proper performance of this Agreement.

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	 	B.	 	NON-DISCLOSURE. Except in the proper performance of this Agreement, Executive
shall not directly or indirectly disclose or deliver to any other person or business,
any Proprietary Information obtained directly or indirectly by Executive from, or for,
Company.
	 
	 	C.	 	NON-SOLICITATION OF CUSTOMERS. Executive agrees that for a reasonable time
after the termination of this Agreement, which Executive and Company hereby agree to be
one year, Executive shall not directly or indirectly, for Executive or for any other
person or business, seek, solicit, divert, take away, obtain or accept any customer
account or sales prospect with which Executive had direct business involvement on
behalf of Company or any other ABM subsidiary within one year prior to termination of
this Agreement. In addition, Executive agrees that at all times after the termination
of this Agreement, Executive shall not seek, solicit, divert, take away, obtain or
accept the patronage of any customer or sales prospect of Company or any other ABM
subsidiary through the direct or indirect use of any Proprietary Information or by any
other unfair or unlawful business practice.
	 
	 	D.	 	NON-DISPARAGEMENT. During Executive’s employment with Company and for a period
of two years following termination of employment (whether voluntary or involuntary),
Executive agrees not to make any comment or take any action which disparages, defames,
or places in a negative light ABM, its subsidiaries, its past and present officers,
directors, and employees. Company agrees that during this same period, its officers
and directors shall refrain from making any comment or taking any action to disparage,
defame, or place Executive in a negative public light.
	 
	 	E.	 	COOPERATION. Upon termination of employment hereunder, Executive shall
cooperate with Company, ABM and any ABM subsidiaries in its defense or prosecution of
any current or future matter in any forum, including but not limited to lawsuits,
federal, state or local agency claims, audits and investigations, and internal and
external investigations concerning any matter in which Executive was involved during
Executive’s employment with Company, ABM and any ABM subsidiaries or about which
Executive has or should have knowledge and information. Executive’s cooperation shall
include, but is not limited to, meeting with Company’s, ABM’s and any ABM subsidiaries’
in-house and/or outside attorneys, communicating Executive’s knowledge of relevant
facts to Company’s, ABM’s and any ABM subsidiaries’ attorneys, experts, consultants,
investigators, executives, management and human resources employees and other
representatives, reviewing and commenting on any relevant documents, preparing any
requested documentation and testifying at depositions, hearings, arbitrations, trials
and any other forum at which Executive’s participation and testimony is requested by
Company, ABM and any ABM subsidiaries. In performing the tasks outlined in this
Paragraph 13E, Executive shall be bound by the covenants of good faith and veracity set
forth in Paragraph 9 of this Agreement and as outlined in ABM’s Code of Business
Conduct and Ethics.

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	 	F.	 	LIMITATIONS. Nothing in this Agreement shall be binding upon the parties to
the extent it is void or unenforceable for any reason in the State of Employment,
including, without limitation, as a result of any law regulating competition or
proscribing unlawful business practices.

	14.	 	MODIFICATION OF EMPLOYMENT. At any time during the then current Initial or Extended Term, as
applicable, of this Agreement, upon approval of a majority of the non-management directors of
the Board, the Board shall have the absolute right, with or without cause and without
terminating this Agreement or Executive’s employment hereunder, to remove Executive from any
position in which Executive is then serving and to modify the nature of Executive’s
employment for the remainder of the then current Initial or Extended Term, as applicable, from
that of a full-time employee to that of a part-time employee. The Modification Period shall
commence immediately upon Company giving Executive written notice of such change.

	 	A.	 	MODIFICATION ACTIONS. Upon commencement of the Modification Period: (i)
Executive shall immediately resign as an officer and/or director of Company, ABM and/or
of any ABM subsidiaries, as applicable, (ii) Executive shall promptly return all
Company property in Executive’s possession to Company, including but not limited to any
motor vehicles, equipment, supplies and documents set forth in Paragraph 11 of this
Agreement, and (iii) Company shall pay Executive when due any and all previously
earned, but as yet unpaid, salary, Bonus pursuant to Paragraph 7B(iii), or other
contingent compensation, reimbursement of business expenses and perquisites.
	 
	 	B.	 	MODIFICATION OBLIGATIONS. During the Modification Period: (i) Executive shall
be deemed a part-time employee and not a full-time employee of Company; (ii) Executive
shall provide Company with such occasional executive or managerial services as
reasonably requested by the person(s) designated by the Managing Officer, except that
failure to render such services by reason of any physical or mental illness or
disability other than Total Disability or death, or unavailability because of absence
from the State of Employment, shall not affect Executive’s right to receive payments
under subparagraph 14B(iii); (iii) Company shall continue to pay Executive’s monthly
salary pursuant to Paragraph 7A of this Agreement and shall pay directly to Executive a
monthly amount equal to the Insurance Contribution immediately prior to the beginning
of the Modification Period; (iv) Executive shall not be eligible or entitled to receive
a Bonus with respect to the Modification Period or participate in any bonus or
perquisites other than the ABM Employee Stock Purchase Plan and 401(k) plan provided
that Executive continues to qualify under the terms of such plans; (v) Executive may
exercise rights under COBRA to obtain medical insurance coverage as may be available to
Executive; and (vi) Company shall pay directly or reimburse Executive in accordance
with the provisions of Paragraph 8 of this Agreement for reasonable business expenses
of Company incurred by Executive in connection with such services requested by the
person(s) designated by the Board.
	 
	 	C.	 	MODIFICATION PERIOD. The Modification Period shall continue until the earlier
of: (i) Total Disability or death, (ii) termination of this Agreement by

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	 	 	 	Company for Just Cause, (iii) Executive accepts employment or receives any other
compensation from operating, assisting or otherwise being involved or associated
with any business that is similar to or competitive with any business in which
Company is engaged on the commencement date of the Modification Period, or (iv)
expiration of the then current Initial or Extended Term, as applicable, of this
Agreement.

	15.	 	EXTENSION OF EMPLOYMENT.

	 	A.	 	RENEWAL. Absent at least 90 days written notice of termination of employment
or notice of non-renewal from Company to Executive prior to expiration of the then
current Initial or Extended Term, as applicable, of this Agreement, employment
hereunder shall continue for an Extended Term (or another Extended Term, as applicable)
of one year.
	 
	 	B.	 	NOTICE OF NON-RENEWAL. In the event that notice of non-renewal is given 90
days prior to the expiration of the then Initial or Extended Term, as applicable, of
this Agreement, employment shall continue on an “at will” basis following the
expiration of such Initial or Extended Term. In such event, Company shall have the
right to terminate Executive’s employment or to change the terms and conditions of
Executive’s employment, including but not limited to Executive’s position and/or
compensation .

16. TERMINATION OF EMPLOYMENT.

	 	A.	 	TERMINATION UPON EXPIRATION OF TERM. Subject to at least 90 days
prior written notice of termination of employment, Executive’s employment shall
terminate, with or without cause, at the expiration of the then current Initial or
Extended Term. Company has the option, without terminating this Agreement, of placing
Executive on a leave of absence at the full compensation set forth in Paragraph 7 of
this Agreement, for any or all of such notice period.
	 
	 	B.	 	TERMINATION FOR CAUSE. Company may terminate Executive’s employment
hereunder at any time during the then current Initial or Extended Term, as applicable,
of this Agreement, without notice subject only to a good faith determination by a
majority of the Board of Just Cause.
	 
	 	C.	 	VOLUNTARY TERMINATION BY EXECUTIVE. At any time during the
then current Initial or Extended Term, as applicable, of this Agreement and with or
without cause, Executive may terminate employment hereunder by giving Company 90 days
prior written notice. For a voluntary termination for reasons other than health,
Executive will not receive any prorated Bonus pursuant with Paragraph 7.B.iii.
	 
	 	D.	 	DISABILITY OR DEATH. Employment hereunder shall automatically terminate upon
the Total Disability or death of Executive. Company shall pay when due to Executive
or, upon death, Executive’s designated beneficiary or estate, as applicable, any and
all previously earned, but as yet unpaid, salary, Bonus, other

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	 	 	 	contingent compensation, reimbursement of business expenses and perquisites which
would have otherwise been payable to Executive under this Agreement, through the end
of the month in which Total Disability or death occurs.

	 	E.	 	ACTIONS UPON TERMINATION. Upon termination of employment hereunder, Executive
shall immediately resign as an officer and/or director of Company and of any Company
subsidiaries or affiliates, as applicable. Executive shall promptly return and release
all Company property in Executive’s possession to Company, including but not limited
to, any motor vehicles, equipment, supplies, passwords and documents set forth in
Paragraph 11 of this Agreement. Company shall pay Executive when due any and all
previously earned, but as yet unpaid, salary, Bonus, other contingent compensation,
reimbursement of business expenses and perquisites.

	17.	 	GOVERNING LAW. This Agreement shall be interpreted and enforced in accordance with the laws
of the State of Employment.

	18.	 	DISPUTE RESOLUTION.

	 	A.	 	ARBITRATION. Except as provided in Paragraph 18B below, any claim or dispute
related to or arising from this Agreement (whether based in contract, statute or tort,
in law or equity) including, but not limited to, claims or disputes between Executive
and Company or its directors, officers, employees and agents regarding Executive’s
employment or termination of employment hereunder, or any other business of Company,
shall be resolved by binding arbitration in accordance with the following procedures:

	 	i.	 	The arbitration shall be administered by AAA.
	 
	 	ii.	 	Except as modified herein, the arbitration proceeding shall be
administered pursuant to AAA’s Commercial Rules.
	 
	 	iii.	 	The parties will mutually agree upon two neutral arbitrators
who shall be respectively designated the “Pre-hearing Arbitrator” and the
“Hearing Arbitrator.” The Pre-hearing Arbitrator shall preside over all issues
or disputes arising prior to the hearing on the merits, including discovery
issues and pre-hearing motions. The Hearing Arbitrator shall preside over the
formal hearing on the merits and shall have the sole authority to issue a final
and binding award in the matter.
	 
	 	iv.	 	The parties may conduct the following discovery as a matter of
right: (a) two depositions per side; (b) 35 non-compound interrogatories per
side, which shall be answered under penalty of perjury by the responding party;
(c) 35 non-compound document requests, which shall be answered under penalty of
perjury by the responding party. Any additional discovery shall only take
place as stipulated by the parties, as provided by the AAA’s Commercial Rules,
or as ordered by the Pre-hearing Arbitrator.

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	 	v.	 	The Pre-hearing Arbitrator shall hear and rule upon such
motions for summary judgment or summary adjudication as might be made by either
party. Upon receipt of such a motion, the Pre-hearing Arbitrator shall consult
with the parties and establish both a hearing date and a briefing schedule
which allows an opposition and reply submission prior to the hearing.
	 
	 	vi.	 	The cost of such arbitration shall be borne by Company.
	 
	 	vii.	 	Any such arbitration must be requested in writing within one
year from the date the party initiating the arbitration knew or should have
known about the claim or dispute, or all claims arising from that dispute are
forever waived.
	 
	 	viii.	 	Any such arbitration shall be held in the city and/or county
of employment hereunder. Judgment upon the award rendered through such
arbitration may be entered and enforced in any court having proper
jurisdiction.

	 	B.	 	LITIGATION / COURT ACTION. Disputes involving the threatened or actual breach
of obligations set forth in Paragraphs 12 and 13 of this Agreement shall not be subject
to arbitration. Rather, any such disputes shall be resolved through civil litigation,
which may be filed in any court of competent jurisdiction.

	19.	 	REMEDIES & DAMAGES.

	 	A.	 	INJUNCTIVE RELIEF. The parties agree that compliance with Paragraphs 12 and 13
of this Agreement is necessary to protect the business and goodwill of Company, and
that any breach of such Paragraphs will result in irreparable and continuing harm to
Company, for which monetary damages may not provide adequate relief. Accordingly, in
the event of any actual or threatened breach of Paragraphs 12 and 13 of this Agreement
by Executive, Company and Executive agree that Company shall be entitled to all
appropriate remedies, including temporary restraining orders and injunctions enjoining
or restraining such actual or threatened breach. Executive hereby consents to the
issuance thereof forthwith by any court of competent jurisdiction.
	 
	 	B.	 	WITHHOLDING AUTHORIZATION. To the fullest extent permitted under the laws of
the State of Employment hereunder, Executive authorizes Company to withhold from any
severance payments otherwise due to Executive and from any other funds held for
Executive’s benefit by Company, any damages or losses sustained by Company as a result
of any material breach or other material violation of this Agreement by Executive,
pending resolution of the underlying dispute as provided in Paragraph 18 above.

	20.	 	NO WAIVER. Failure by either party to enforce any term or condition of this Agreement at any
time shall not preclude that party from enforcing that provision, or any other provision of
this Agreement, at any later time.

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	21.	 	SEVERABILITY. The provisions of this Agreement are severable. If any arbitrator (or court
as applicable hereunder) rules that any portion of this Agreement is invalid or unenforceable,
the arbitrator’s or court’s ruling shall not affect the validity and enforceability of other
provisions of this Agreement. It is the intent of the parties that if any provision of this
Agreement is ruled to be overly broad, the arbitrator or court shall interpret such provision
with as much permissible breadth as is allowable under law rather than consider such provision
void.

	22.	 	SURVIVAL. All terms and conditions of this Agreement which by reasonable implication are
meant to survive the termination of this Agreement, including but not limited to the
provisions of Paragraphs 13 and 18 of this Agreement, shall remain in full force and effect
after the termination of this Agreement.

	23.	 	REPRESENTATIONS. Executive represents and agrees that Executive has carefully read and fully
understands all of the provisions of this Agreement, that Executive is voluntarily entering
into this Agreement and has been given an opportunity to review all aspects of this Agreement
with an attorney, if Executive chooses to do so.

	24.	 	NOTICES.

	 	A.	 	ADDRESSES. Any notice required or permitted to be given pursuant to this
Agreement shall be in writing and delivered in person, or sent prepaid by certified
mail, bonded messenger or overnight express, or electronically to the party named at
the address set forth below or at such other address as either party may hereafter
designate in writing to the other party:

	 	 	 	 	 
	 

	 	 Executive:
	 	(Executive Name)

(Home address)

(Home city, state ZIP)

Email: (known email address, typically ABM address)
	 
	 	 	 	 
	 

	 	Company:
	 	(Legal Company Name)

160 Pacific Avenue, Suite 222

San Francisco, CA 94111

Attention: Chief Executive Officer
	 
	 	 	 	 
	 

	 	Copy:
	 	ABM Industries Incorporated

160 Pacific Avenue, Suite 222

San Francisco, CA 94111

Attention: Senior Vice President of Human Resources

	 	B.	 	RECEIPT. Any such notice shall be assumed to have been received when delivered
in person or 48 hours after being sent in the manner specified above.

	25.	 	ENTIRE AGREEMENT. Unless otherwise specified herein, this Agreement sets forth every
contract, understanding and arrangement as to the employment relationship

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     between Executive and Company, and may only be changed by a written amendment signed by both
Executive and Company.

	 	A.	 	NO EXTERNAL EVIDENCE. The parties intend that this Agreement speak for itself,
and that no evidence with respect to its terms and conditions other than this Agreement
itself may be introduced in any arbitration or judicial proceeding to interpret or
enforce this Agreement.
	 
	 	B.	 	SUPERSEDES OTHER AGREEMENTS. It is specifically understood and accepted that
this Agreement supersedes all oral and written employment agreements between Executive
and Company prior to the date of this Agreement as well as all conflicting provisions
of ABM’s Human Resources Manual, including but not limited to the termination,
discipline and discharge provisions contained therein.
	 
	 	C.	 	AMENDMENTS. This Agreement may not be amended except in a writing approved by
the Board and signed by the Executive and the Chief Executive Officer.

IN WITNESS WHEREOF, Executive and Company have executed this Agreement as of the date set forth
above.

	 	 	 	 	 	 	 
	 	 	Executive:	 	(Executive Name)
	 
	 	 	 	 	 	 
	 

	 	 	 	Signature:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Date:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Company:	 	(Legal Company Name)
	 
	 	 	 	 	 	 
	 

	 	 	 	Signature:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Date:	 	 
	 

	 	 	 	 	 	 

13exv10w25

 

EXHIBIT 10.25

SEVERANCE AGREEMENT

     This Severance Agreement (this “Agreement”), dated as of December 13, 2005, is made between
ABM Industries, Incorporated, a Delaware corporation (the “Company”), and the individual executing
this Agreement as the Executive on the signature page (the “Executive”).

RECITALS

     A. The Executive is a senior executive of the Company and has made and is expected to continue
to make major contributions to the short- and long-term profitability, growth and financial
strength of the Company;

     B. The Company recognizes that the possibility of a Change in Control exists and that such
possibility, and the uncertainty it may create among management, may result in the distraction or
departure of management personnel, to the detriment of the Company and its stockholders, including
a reduction of the value received by stockholders in a Change in Control transaction;

     C. The Company desires to assure itself of both present and future continuity of management
and to establish fixed severance benefits for certain of its senior executives, including the
Executive, applicable in the event of a Change in Control; and

     D. The Company desires to provide additional inducement for the Executive to continue to
remain in the employ of the Company.

     Accordingly, the Company and the Executive agree as follows:

     1. Certain Defined Terms. In addition to terms defined elsewhere herein, the
following terms have the following meanings when used in this Agreement with initial capital
letters:

          (a) “After-Tax Amount” means the amount to be received by an Executive determined on an
after-tax basis taking into account the excise tax imposed pursuant to Section 4999 of the Code, or
any successor provision thereto, any tax imposed by any comparable provision of state law and any
applicable federal, state and local income and employment taxes.

          (b) “Base Pay” means the Executive’s annual base salary rate as in effect at the time a
determination is required to be made under Section 4;

          (c) “Board” means the Board of Directors of the Company; any action of the Board herein
contemplated will be valid if adopted by a majority of the total number of directors then in office
or a majority of the Incumbent Directors and, for purposes of interpreting, amending or waiving any
portion of this Agreement, may be adopted by a majority of the Incumbent Directors by written
action, whether or not

 

 

unanimous, or may be delegated by specific action of the Board of Directors after the date
hereof to any directorate committee comprised solely of Incumbent Directors who are also
Independent Directors.

          (d) “Cause” means that, prior to any termination, the Executive shall have:

          (i) been charged with a crime involving fraud, embezzlement or theft in connection with
Executive’s duties or in the course of Executive’s employment with the Company or any
Subsidiary or been convicted of a felony;

          (ii) intentionally breached his fiduciary obligations to the Company or any securities
laws applicable to the Company; or

          (iii) committed intentional wrongful engagement in any Competitive Activity;

and any such act shall have been demonstrably and materially harmful to the Company. For purposes
of this Agreement, no act or failure to act on the part of the Executive 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 Executive not in good faith and without
reasonable belief that the Executive’s action or omission was in the best interest of the Company.
Notwithstanding the foregoing, the Executive will not be deemed to have been terminated for “Cause”
hereunder unless and until there shall have been delivered to the Executive a copy of a resolution
duly adopted by the Board at a meeting of the Board called and held for such purpose, after
reasonable notice to the Executive and an opportunity for the Executive, together with the
Executive’s counsel (if the Executive chooses to have counsel present at such meeting), to be heard
before the Board, finding that, in the good faith opinion of the Board after consultation with
outside counsel, there is clear and convincing evidence that the Executive had committed an act
constituting “Cause” as herein defined and specifying the particulars thereof in reasonable detail.
Nothing herein will limit the right of the Executive or Executive’s beneficiaries to contest the
validity or propriety of any such determination.

          (e) “Change in Control” means that during the Term any of the following events occurs:

          (i) any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act) (a “Person”) (A) is or becomes the beneficial owner (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of more than 35% of the combined voting
power of the then-outstanding Voting Stock of the Company or succeeds in having nominees as
directors elected in an “election contest” within the meaning of Rule 14a-12(c) under the
Exchange Act and (B) within 18 months after either such event, individuals who were members
of the Board of Directors of the Company

2

 

immediately prior to either such event cease to constitute a majority of the members of
the Board of Directors of the Company; or

          (ii) a majority of the Board ceases to be comprised of Incumbent Directors; or

          (iii) the consummation of a reorganization, merger, consolidation, plan of liquidation
or dissolution, recapitalization or sale or other disposition of all or substantially all of
the assets of the Company or the acquisition of the stock or assets of another corporation,
or other transaction (each, a “Business Transaction”), unless, in any such case, (A) no
Person (other than the Company, any entity resulting from such Business Transaction or any
employee benefit plan (or related trust) sponsored or maintained by the Company, any
Subsidiary or such entity resulting from such Business Transaction) beneficially owns,
directly or indirectly, 35% or more of the combined voting power of the then-outstanding
shares of Voting Stock of the entity resulting from such Business Transaction or, if it is
such entity, the Company and (B) at least one-half of the members of the Board of Directors
of the entity resulting from such Business Transaction were Incumbent Directors at the time
of the execution of the initial agreement providing for such Business Transaction.

          (f) “Code” means the Internal Revenue Code of 1986, as amended.

          (g) “Competitive Activity” means the Executive’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.

          (h) “Employee Benefits” means the benefits and service credit for benefits as provided under
any and all employee retirement income and welfare benefit policies, plans, programs or
arrangements in which the Executive is entitled to participate, including without limitation any
stock option, performance share, performance unit, stock purchase, stock appreciation, savings,
pension, supplemental executive retirement, or other retirement income or welfare benefit, deferred
compensation, incentive compensation, group or other life, health, medical/hospital or other
insurance (whether funded by actual insurance or self-insured by the Company or a Subsidiary),
disability, salary continuation, expense reimbursement and other

3

 

employee benefit policies, plans, programs or arrangements that may now exist or any
equivalent successor policies, plans, programs or arrangements that may be adopted hereafter by the
Company or a Subsidiary, providing benefits and service credit for benefits at least as great in
the aggregate as are payable thereunder immediately prior to a Change in Control.

          (i) “ERISA” means the Employee Retirement Income Security Act of 1976, as amended

          (j) “Excess Parachute Payment” means a payment that creates an obligation for Executive to pay
excise taxes under Section 280G of the Code or any successor provision thereto.

          (k) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (l) “Good Reason” means the occurrence of one or more of the following events:

          (i) Failure to elect or reelect or otherwise to maintain the Executive in the office or
the position he had with the Company immediately prior to a Change in Control, or a
substantially equivalent or better office or position than that which he had with the
Company immediately prior to the Change in Control, in either such case with the Company,
any legal successor to the Company or, if the Company merges with or into another entity
with substantial operations, with respect to the business of the Company and its
Subsidiaries substantially as conducted immediately prior to the Change in Control;

          (ii) Failure of the Company to remedy any of the following within 10 calendar days
after receipt by the Company of written notice thereof from the Executive: (A) A
significant adverse change in the nature or scope of the authorities, powers or functions
attached to the position with the Company which the Executive held immediately prior to the
Change in Control, (B) a reduction in the Executive’s Base Pay, (C) a reduction in the
Executive’s Incentive Pay Opportunity or Incentive Pay Target, or (D) the termination or
denial of the Executive’s rights to Employee Benefits or a reduction in the scope or value
thereof, unless such termination or reduction referred to in clauses (B), (C) or (D) applies
on a substantially similar basis to all executives of the Company and its parent entities;

          (iii) The liquidation, dissolution, merger, consolidation or reorganization of the
Company or the transfer of all or substantially all of its business and/or assets, unless
the successor or successors (by liquidation, merger, consolidation, reorganization, transfer
or otherwise) to which all or substantially all of its business and/or assets have been
transferred (by operation of law or otherwise) assumed all duties and obligations of the
Company under this Agreement pursuant to Section 11(a);

4

 

          (iv) If the Executive’s principal residence at the time in question is within 35 miles
of the Company’s headquarters or the headquarters of the Subsidiary that is Executive’s
employer, the Company requires the Executive to have Executive’s principal location of work
changed to any location that is in excess of 50 miles from such residence without
Executive’s prior written consent; or

          (v) Without limiting the generality or effect of the foregoing, any material breach of
this Agreement or any Other Employment Agreement (as defined in Section 6) by the Company or
any successor thereto which is not remedied by the Company within 10 calendar days after
receipt by the Company of written notice from the Executive of such breach.

A termination of employment by the Executive for one of the reasons set forth in clauses (i) — (v),
above, will not constitute “Good Reason” unless, within the 60-day period immediately following the
occurrence of such Good Reason event, the Executive has given written notice to the Company
specifying in reasonable detail the event or events relied upon for such termination and the
Company has not remedied such event or events within 10 days of the receipt of such notice. The
Company and the Executive may mutually waive in writing any of the foregoing provisions with
respect to an event or events that otherwise would constitute Good Reason.

          (m) “Incumbent Directors” means the individuals who, as of the date hereof, are Directors of
the Company and any individual becoming a Director subsequent to the date hereof whose election,
nomination for election by the Company’s shareholders or appointment was approved by a vote of at
least two-thirds of the then Incumbent Directors (either by a specific vote or by approval of the
proxy statement of the Company in which such person is named as a nominee for director, without
objection to such nomination); provided, however, that an individual shall not be an Incumbent
Director if such individual’s election or appointment to the Board occurs as a result of an actual
or threatened election contest (as described in Rule 14a-12(c) of the Exchange Act) with respect to
the election or removal of Directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board.

          (n) “Incentive Pay” means compensation in addition to Base Pay determined by reference to one
or more performance measures, whether payable in cash, securities or otherwise.

          (o) “Incentive Pay Opportunity” means the maximum amount of Incentive Pay that the Executive
would receive pursuant to any Incentive Pay Plan in existence immediately prior to a Change in
Control (disregarding the effects of the Change in Control, including without limitation increased
depreciation or amortization, financing expense and transaction costs), assuming satisfaction of
all thresholds or other conditions thereto established (i) prior to the Change in Control or (ii)
after the Change in Control either (A) with the Executive’s specific prior written approval or (B)
by action of a committee of the Board comprised solely of Independent Directors.

5

 

          (p) “Incentive Pay Plan” means any plan, program, agreement or arrangement (excluding employee
stock options, restricted stock or other rights the value of which is determined solely by
reference to the value of the Company’s common stock).

          (q) “Incentive Pay Target” means the amount or value of Incentive Pay the Executive would have
received assuming that the Incentive Pay Plans in effect immediately prior to the Change in Control
continue unchanged and are satisfied at the target level and, if applicable, any conditions to
entitlement to payment at the target level thereunder that are not measured by the Company’s
results of operation are satisfied at the target level.

          (r) “Independent Directors” means directors who qualify as “independent” directors under
then-applicable New York Stock Exchange rules applicable to compensation committees (whether or not
the Company’s securities continue to be listed for trading thereon).

          (s) “Other Agreement” means an agreement, contract or understanding (including any option or
equity plan or agreement) other than this Agreement, heretofore or hereafter entered into by the
Executive with the Company or any Subsidiary.

          (t) “Retirement Plans” means the benefit plans of the Company that are intended to be
qualified under Section 401(a) of the Code and any supplemental executive retirement benefit plan
or any other plan that is a successor thereto as such Retirement Plans were in effect immediately
prior to the Change in Control and if the Executive was a participant in such Retirement Plan
immediately prior to the Change in Control.

          (u) “Severance Period” means the period of time commencing on the date of the first occurrence
of a Change in Control and continuing until the earlier of (i) the second anniversary of the
occurrence of the Change in Control and (ii) the Executive’s death.

          (v) “Subsidiary” means an entity in which the Company directly or indirectly beneficially owns
50% or more of the outstanding Voting Stock.

          (w) “Term” means the period commencing as of the date hereof and expiring on the close of
business on December 31, 2008; provided, however, that (i) commencing on January 1, 2009 and each
January 1 thereafter, the term of this Agreement will automatically be extended for an additional
year unless, not later than September 30 of the immediately preceding year, the Company or the
Executive shall have given notice that it or the Executive, as the case may be, does not wish to
have the Term extended; (ii) if a Change in Control occurs during the Term, the Term will expire on
the last day of the Severance Period; and (iii) subject to Section 3(c), if, prior to a Change in
Control, the Executive ceases for any reason to be a full-time employee of the Company, thereupon
without further action the Term shall be deemed to have expired and this Agreement will immediately
terminate and be of no further effect.

6

 

          (x) “Termination Date” means the date on which the Executive’s employment is terminated (the
effective date of which will be the date of termination, or such other date that may be specified
by the Executive if the termination is pursuant to Section 3(b)).

          (y) “Voting Stock” means securities entitled to vote generally in the election of directors.

          (z) “Welfare Benefits” means Employee Benefits that are provided under any “welfare plan”
(within the meaning of Section 3(1) of ERISA) of the Company, and fringe benefits and other
perquisites of employment, such as car allowances, club dues, financial planning and product
discounts.

     2. Operation of Agreement. This Agreement will be effective and binding immediately
upon its execution, but, anything in this Agreement to the contrary notwithstanding, except as
provided in Section 3(c), this Agreement will not be operative unless and until a Change in Control
occurs. Upon the occurrence of a Change in Control at any time during the Term, without further
action, this Agreement will become immediately operative.

     3. Termination Following a Change in Control. (a) In the event of the occurrence of
a Change in Control, the Executive’s employment may be terminated by the Company during the
Severance Period (or pursuant to Section 3(c)) and the Executive will be entitled to the benefits
provided by Section 4 unless such termination is the result of the occurrence of one or more of the
following events:

          (i) The Executive’s death;

          (ii) if the Executive becomes permanently disabled within the meaning of, and begins
actually to receive disability benefits pursuant to, the long-term disability plan in effect
for, or applicable to, the Executive immediately prior to the Change in Control; or

          (iii) Cause.

If, during the Severance Period, the Executive’s employment is terminated by the Company other than
pursuant to Section 3(a)(i), 3(a)(ii) or 3(a)(iii), the Executive will be entitled to the benefits
provided by Section 4.

          (b) In the event of the occurrence of a Change in Control, the Executive may terminate
employment with the Company during the Severance Period for Good Reason with the right to severance
compensation as provided in Section 4 regardless of whether any other reason, other than Cause, for
such termination exists or has occurred, including without limitation other employment.

          (c) Anything in this Agreement to the contrary notwithstanding, if a Change in Control occurs
and not more than 90 days prior to the date on which the Change in Control occurs, the Executive’s
employment with the Company is terminated

7

 

by the Company other than for Cause or the Executive terminates Executive’s employment for
Good Reason and Cause does not exist, such termination of employment will be deemed to be a
termination of employment after a Change in Control for purposes of this Agreement if the Executive
has reasonably demonstrated that such termination of employment (i) was at the request of a third
party who has taken steps reasonably calculated to effect a Change in Control or (ii) otherwise
arose in connection with or in anticipation of a Change in Control.

          (d) Nothing in this Agreement will (i) be construed as creating an express or implied contract
of employment, changing the status of Executive as an employee at will, giving Executive any right
to be retained in the employ of the Company, or giving Executive the right to any particular level
of compensation or benefits or (ii) interfere in any way with the right of the Company to terminate
the employment of the Executive at any time with or without Cause, subject in either case to the
obligations of the Company under this Agreement.

     4. Severance Compensation. (a) If, following the occurrence of a Change in Control,
the Company terminates the Executive’s employment during the Severance Period other than pursuant
to Section 3(a)(i), 3(a)(ii) or 3(a)(iii), or if the Executive terminates Executive’s employment
pursuant to Section 3(b) (any such termination, a “Triggering Termination”), the Company will pay
to the Executive the amounts described in Annex A within five business days after the Termination
Date and will continue to provide to the Executive the benefits described in Annex A for the
periods described therein; provided, however, that if payment would occur at a time that is later
than two and one half months after the year in which such payment became no longer subject to a
substantial risk of forfeiture, the Executive will receive payment of the amounts described in
Annex A upon the earlier of (i) six months following the Executive’s “separation from service” with
the Company (as such phrase is defined in Section 409A of the Code) and (ii) the Executive’s death.

          (b) Without limiting the rights of the Executive at law or in equity, if the Company fails to
make any payment or provide any benefit required to be made or provided hereunder on a timely
basis, the Company will pay interest on the amount or value thereof at an annualized rate of
interest equal to the “prime rate” as set forth from time to time during the relevant period in The
Wall Street Journal “Money Rates” column, plus 200 basis points, compounded monthly, or, if less,
the maximum rate legally allowed. Such interest will be payable as it accrues on demand. Any
change in such prime rate will be effective on and as of the date of such change.

          (c) Unless otherwise expressly provided by the applicable plan, program or agreement, after
the occurrence of a Change in Control, the Company will pay in cash to the Executive a lump sum
amount equal to the sum of (i) any unpaid Incentive Pay that has been earned, accrued, allocated or
awarded to the Executive for any performance period that by its terms as in effect prior to a
Triggering Termination has been completed (any such period, a “Completed Performance Period”)
(regardless of whether payment of such compensation would otherwise be contingent on the continuing
performance of services by the Executive) and (ii) the Pro Rata Portion of the

8

 

Incentive Pay Target in effect for any subsequent performance period. For this purpose, “Pro
Rata Portion” means (x) the number of days from and including the first day immediately following
the last day of the immediately preceding Completed Performance Period to and including the
Termination Date, divided by (y) the total number of days in such subsequent performance period.
Such payments will be made at the earlier of (x) the date prescribed for payment pursuant to the
applicable plan, program or agreement and (y) within five business days after the Termination Date,
and will be payable and calculated disregarding any otherwise applicable vesting requirements.

     5. Limitations on Payments and Benefits. Notwithstanding any provision of this
Agreement or any Other Agreement to the contrary, if any amount or benefit to be paid or provided
under this Agreement or any Other Agreement would be an Excess Parachute Payment (including after
taking into account the value, to the maximum extent permitted by Section 280G of the Code, of the
covenants in Section 8 hereof), but for the application of this sentence, then the payments and
benefits to be paid or provided under this Agreement 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; provided, however, that the
foregoing reduction will not be made if such reduction would result in Executive receiving an
After-Tax Amount less than 90% of the After-Tax Amount of the severance payments he or she would
have received under Section 4 or under any Other Agreement without regard to this clause. Whether
requested by the Executive or the Company, the determination of whether any reduction in such
payments or benefits to be provided under this Agreement or otherwise is required pursuant to the
preceding sentence, and the value to be assigned to the Executive’s covenants in Section 8 hereof
for purposes of determining the amount, if any, of the Excess Parachute Payment will be made at the
expense of the Company by the Company’s independent accountants or benefits consultant. The fact
that the Executive’s right to payments or benefits may be reduced by reason of the limitations
contained in this Section 5 will not of itself limit or otherwise affect any other rights of the
Executive pursuant to this Agreement or any Other Agreement. In the event that any payment or
benefit intended to be provided is required to be reduced pursuant to this Section 5, the Executive
will be entitled to designate the payments and/or benefits to be so reduced in order to give effect
to this Section 5. The Company will provide the Executive with all information reasonably
requested by the Executive to permit the Executive to make such designation. In the event that the
Executive fails to make such designation within 10 business days after receiving notice from the
Company of a reduction under this Section 5, the Company may effect such reduction in any manner it
deems appropriate.

     6. No Mitigation Obligation; Other Agreements. (a) The Company hereby acknowledges
that it will be difficult and may be impossible for the Executive to find reasonably comparable
employment following the Termination Date. Accordingly, the payment of the severance compensation
by the Company to the Executive in accordance with the terms of this Agreement is hereby
acknowledged by the Company to be reasonable, and the Executive will not be required to mitigate
the amount of any

9

 

payment provided for in this Agreement by seeking other employment or otherwise, nor will any
profits, income, earnings or other benefits from any source whatsoever create any mitigation,
offset, reduction or any other obligation on the part of the Executive hereunder or otherwise,
except as expressly provided in Paragraph 2(E) of Annex A.

          (b) A termination of employment pursuant to Section 3(a), 3(b) or 3(c) will not affect any
rights that the Executive may have pursuant to any agreement, policy, plan, program or arrangement
of the Company or Subsidiary providing Employee Benefits, which rights will be governed by the
terms thereof. To the extent that the Executive receives payments by reason of his or her
termination of employment pursuant to any other employment or severance agreement or employee plan
(collectively, “Other Employment Agreements”), the amounts otherwise receivable under Section 4
will be reduced by the amounts actually paid pursuant to the Other Employment Agreements, but not
below zero, to avoid duplication of payments so that the total amount payable or value of benefits
receivable hereunder and under the Other Employment Agreements is not less than the amounts so
payable or value so receivable had such benefits been paid in full hereunder.

     7. Legal Fees and Expenses. It is the intent of the Company that the Executive not be
required to incur legal fees and the related expenses associated with the interpretation,
enforcement or defense of Executive’s rights in connection with any dispute arising under this
Agreement because the cost and expense thereof would substantially detract from the benefits
intended to be extended to the Executive hereunder. Accordingly, if it should appear to the
Executive that the Company has failed to comply with any of its obligations under this Agreement or
in the event that the Company or any other person takes or threatens to take any action to declare
this Agreement void or unenforceable, or institutes any proceeding designed to deny, or to recover
from, the Executive the benefits provided or intended to be provided to the Executive hereunder,
the Company irrevocably authorizes the Executive from time to time to retain counsel of
Executive’s choice, at the expense of the Company as hereafter provided, to advise and represent
the Executive in connection with any such dispute or proceeding. Without respect to whether the
Executive prevails, in whole or in part, in connection with any of the foregoing, the Company will
pay and be solely financially responsible for any and all reasonable attorneys’ and related fees
and expenses incurred by the Executive in connection with any of the foregoing; provided that, in
regard to such matters, the Executive has not acted in bad faith or with no colorable claim of
success. Such payments will be made within five business days after delivery of the Executive’s
written requests for payment, accompanied by such evidence of fees and expenses incurred as the
Company may reasonably require.

10

 

     8. Competitive Activity; Confidentiality; Nonsolicitation. (a) For the period
following the Termination Date specified in Paragraph (3) of Annex A (the “Non-Competition
Period”), subject to the Executive’s receipt of benefits under Section 4, the Executive will not,
without the prior written consent of the Company, which consent will not be unreasonably withheld,
engage in any Competitive Activity.

          (b) During the Term, the Company agrees that it will disclose to Executive its confidential or
proprietary information (as defined in this Section 8(b)) to the extent necessary for Executive to
carry out Executive’s obligations to the Company. The Executive hereby covenants and agrees that
Executive will not, without the prior written consent of the Company, during the Term and two years
thereafter disclose to any person not employed by the Company, or use in connection with engaging
in competition with the Company, any confidential or proprietary information of the Company. For
purposes of this Agreement, the term “confidential or proprietary information” will include all
information of any nature and in any form that is owned by the Company and that is not publicly
available (other than by Executive’s breach of this Section 8(b)) or generally known to persons
engaged in businesses similar or related to those of the Company. Confidential or proprietary
information will include, without limitation, the Company’s financial matters, customers,
employees, industry contracts, strategic business plans, product development (or other proprietary
product data), marketing plans, and all other secrets and all other information of a confidential
or proprietary nature. For purposes of the preceding two sentences, the term “Company” will also
include any Subsidiary (collectively, the “Restricted Group”). The obligations imposed by this
Section 8(b) will not apply (i) during the Term, in the course of the business of and for the
benefit of the Company, (ii) if such confidential or proprietary information has become, through no
fault of the Executive, generally known to the public or (iii) if the Executive is required by law
to make disclosure (after giving the Company notice and an opportunity to contest such
requirement).

          (c) The Executive hereby covenants and agrees that for a period ending one year after the
Termination Date Executive will not, without the prior written consent of the Company, which
consent will not unreasonably be withheld as to Executive’s personal assistant, on behalf of
Executive or on behalf of any person, firm or company, directly or indirectly, attempt to
influence, persuade or induce, or assist any other person in so persuading or inducing, any
employee of the Restricted Group to give up, or to not commence, employment or a business
relationship with the Restricted Group.

          (d) Executive and the Company agree that the covenants contained in this Section 8 are
reasonable under the circumstances and subject to the provisions of Section 14 of this Agreement.
Executive acknowledges and agrees that the remedy at law available to the Company for breach of any
of Executive’s obligations under this Section 8 would be inadequate and that damages flowing from
such a breach may not readily be susceptible to being measured in monetary terms. Accordingly,
Executive acknowledges, consents and agrees that, in addition to any other rights or remedies that
the Company may have at law, in equity or under this Agreement, upon adequate proof of Executive’s
violation of any such provision of this Agreement, the Company will

11

 

be entitled to immediate injunctive relief and may obtain a temporary order restraining any
threatened or further breach, without the necessity of proof of actual damage.

     9. Employment Rights. Nothing expressed or implied in this Agreement will create any
right or duty on the part of the Company or the Executive to have the Executive remain in the
employment of the Company or any Subsidiary prior to or following any Change in Control.

     10. Withholding of Taxes. The Company may withhold from any amounts payable under
this Agreement all federal, state, city or other taxes as the Company is required to withhold
pursuant to any applicable law, regulation or ruling.

     11. Successors and Binding Agreement. (a) The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to
all or substantially all of the business or assets of the Company, by agreement in form and
substance reasonably satisfactory to the Executive, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent the Company would be required to perform if no
such succession had taken place. This Agreement will be binding upon and inure to the benefit of
the Company and any successor to the Company, including without limitation any persons acquiring
directly or indirectly all or substantially all of the business or assets of the Company whether by
purchase, merger, consolidation, reorganization or otherwise (and such successor will thereafter be
deemed the “Company” for the purposes of this Agreement), but will not otherwise be assignable,
transferable or delegable by the Company.

          (b) This Agreement will inure to the benefit of and be enforceable by the Executive’s personal
or legal representatives, executors, administrators, successors, heirs, distributees and legatees.

          (c) This Agreement is personal in nature and neither of the parties hereto will, without the
consent of the other, assign, transfer or delegate this Agreement or any rights or obligations
hereunder except as expressly provided in Sections 11(a) and 11(b). Without limiting the
generality or effect of the foregoing, the Executive’s right to receive payments hereunder will not
be assignable, transferable or delegable, whether by pledge, creation of a security interest, or
otherwise, other than by a transfer by Executive’s will or by the laws of descent and distribution
and, in the event of any attempted assignment or transfer contrary to this Section 11(c), the
Company will have no liability to pay any amount so attempted to be assigned, transferred or
delegated.

     12. Notices. For all purposes of this Agreement, all communications, including
without limitation notices, consents, requests or approvals, required or permitted to be given
hereunder will be in writing and will be deemed to have been duly given when hand delivered or
dispatched by electronic facsimile transmission (with receipt thereof orally confirmed), or five
business days after having been mailed by United States registered or certified mail, return
receipt requested, postage prepaid, or three business days after having been sent by a nationally
recognized overnight courier

12

 

service such as FedEx or UPS, addressed to the Company (to the attention of the Secretary of
the Company) at its principal executive office and to the Executive at Executive’s principal
residence, or to such other address as any party may have furnished to the other in writing and in
accordance herewith, except that notices of changes of address will be effective only upon receipt.

     13. Governing Law. The validity, interpretation, construction and performance of this
Agreement will be governed by and construed in accordance with the substantive laws of the State of
Delaware and federal law, without giving effect to the principles of conflict of laws of such
State, except as expressly provided herein. In the event the Company exercises its discretion
under Section 8(d) to bring an action to enforce the covenants contained in Section 8 in a court of
competent jurisdiction where the Executive has breached or threatened to breach such covenants, and
in no other event, the parties agree that the court may apply the law of the jurisdiction in which
such action is pending in order to enforce the covenants to the fullest extent permissible.

     14. Validity. If any provision of this Agreement or the application of any provision
hereof to any person or circumstance is held invalid, unenforceable or otherwise illegal, including
without limitation Section 8 hereof, the remainder of this Agreement and the application of such
provision to any other person or circumstance will not be affected, and the provision so held to be
invalid, unenforceable or otherwise illegal will be reformed to the extent (and only to the extent)
necessary to make it enforceable, valid or legal. If any covenant in Section 8 should be deemed
invalid, illegal or unenforceable because its time, geographical area, or restricted activity, is
considered excessive, such covenant will be modified to the minimum extent necessary to render the
modified covenant valid, legal and enforceable.

     15. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing signed by the
Executive and the Company. No waiver by either party hereto at any time of any breach by the other
party hereto or compliance with any condition or provision of this Agreement to be performed by
such other party will be deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior or subsequent time. No agreements or representations, oral or otherwise,
expressed or implied with respect to the subject matter hereof have been made by either party that
are not set forth expressly in this Agreement. The headings used in this Agreement are intended
for convenience or reference only and will not in any manner amplify, limit, modify or otherwise be
used in the construction or interpretation of any provision of this Agreement. References to
Sections are to Sections of this Agreement. References to Paragraphs are to Paragraphs of an Annex
to this Agreement. Any reference in this Agreement to a provision of a statute, rule or regulation
will also include any successor provision thereto.

     16. Survival. Notwithstanding any provision of this Agreement to the contrary, the
parties’ respective rights and obligations under Sections 3(c), 4, 5, 7, 8, 9, 10, 11(b), 16 and 18
will survive any termination or expiration of this Agreement or the termination

13

 

of the Executive’s employment following a Change in Control for any reason whatsoever.

     17. Beneficiaries. The Executive will be entitled to select (and change, to the
extent permitted under any applicable law) a beneficiary or beneficiaries to receive any
compensation or benefit payable hereunder following the Executive’s death, and may change such
election, in either case by giving the Company written notice thereof in accordance with Section
12. In the event of the Executive’s death or a judicial determination of the Executive’s
incompetence, reference in this Agreement to the “Executive” will be deemed, where appropriate, to
the Executive’s beneficiary, estate or other legal representative.

     18. Counterparts. This Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original but all of which together will constitute one and the same
agreement.

     19. Section 409A of the Code. To the extent applicable, it is intended that this
Agreement comply with the provisions of Section 409A of the Code. This Agreement will be
administered in a manner consistent with this intent, and any provision that would cause the
Agreement to fail to satisfy Section 409A of the Code will have no force and effect until amended
to comply with Section 409A of the Code (which amendment may be retroactive to the extent permitted
by Section 409A of the Code and may be made by the Company without the consent of the Executive).
Prior to any Change in Control, the Company and the Executive will agree to any amendment of this
Agreement approved by the Board based on the advice of Jones Day or any other nationally recognized
law firm designated by the Board that such amendment, if implemented, is or is reasonably likely to
reduce any adverse effect on the Company or the Executive of any rule, regulation or IRS
interpretation of Section 409A of the Code and that such firm is recommending similar changes or
provisions to its other clients that have change-in-control, severance or employment agreements or
plans.

14

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered
as of the date first above written.

	 	 	 	 	 
	 	 	ABM INDUSTRIES, INCORPORATED
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Maryellen C. Herringer
	 

	 	 	 	 
	 

	 	 	 	Maryellen C. Herringer
	 
	 	 	 	 
	 

	 	Title:
	 	Chair, Compensation Committee
	 

	 	 	 	of the Board of Directors
	 
	 	 	 	 
	 	 	EXECUTIVE
	 
	 	 	 	 
	 	 	/s/ Henrik C. Slipsager
	 

	 	 
	 	 
	 	 	Henrik C. Slipsager

15

 

Annex A

SEVERANCE COMPENSATION, ETC.

     (1) A lump sum payment in an amount equal to three times the sum of (A) Base Pay (at the rate
in effect for the year in which the Termination Date occurs), plus (B) Incentive Pay Target (or,
if the Incentive Pay Target shall not have been established or shall be reduced after a Change in
Control, the highest aggregate Incentive Pay Target as in effect for any of the three fiscal years
immediately preceding the year in which the Change in Control occurred).

     (2) (A) For any Welfare Benefits that the Executive was receiving or entitled to receive
immediately prior to the Termination Date (or, if greater, immediately prior to the reduction,
termination or denial described in Section 1(l)(ii)) that are considered to be “reimbursement
arrangements” covered under Section 1.409A-1(b)(9)(iv)(A) of the Code:

	 	(i)	 	for a period of 18 months following the Termination Date (the
“Continuation Period”), the Company will arrange to provide the Executive with
Welfare Benefits substantially similar to those that the Executive was
receiving or entitled to receive immediately prior to the Termination Date (or,
if greater, immediately prior to the reduction, termination, or denial
described in Section 1(l)(ii)) except that the level of any such Welfare
Benefits to be provided to the Executive may be reduced in the event of a
corresponding reduction generally applicable to all similarly situated
recipients of or participants in such Welfare Benefits. If and to the extent
that any benefit described in this Paragraph 2 is not or cannot be paid or
provided under any policy, plan, program or arrangement of the Company or any
Subsidiary, as the case may be, then the Company will itself pay or provide for
the payment to the Executive, Executive’s dependents and beneficiaries, of such
Welfare Benefits along with, in the case of any benefit described in this
Paragraph 2 that is subject to tax because it is not or cannot be paid or
provided under any such policy, plan, program or arrangement of the Company or
any Subsidiary, an additional amount such that after payment by the Executive,
or Executive’s dependents or beneficiaries, as the case may be, of all taxes so
imposed, the recipient retains an amount equal to such taxes.
	 
	 	(ii)	 	the Company will pay to the Executive, in a lump sum within the
time period described in Section 4(a), an amount equal to the difference
between (1) the present value of the continuation of such benefits for 18
months and (2) the present value of the benefits the Executive will receive
under Paragraph 2(A)(i).

16

 

          (B) Notwithstanding the foregoing, or any other provision of the Agreement, for purposes of
determining the period of continuation coverage to which the Executive or any of Executive’s
dependents is entitled pursuant to Section 4980B of the Code under the Company’s medical, dental
and other group health plans, or successor plans, the Executive’s “qualifying event” will be the
termination of the Continuation Period and the Executive will be considered to have remained
actively employed on a full-time basis through that date, provided, however, that (1) with respect
to health benefits the continuation period will in all events terminate on the 18-month anniversary
of the termination date as so determined and (2) the Company will pay, or reimburse the Executive
for, all COBRA continuation costs during such period.

          (C) For purposes of the immediately preceding sentence and for purposes of calculating service
or age to determine the Executive’s eligibility for welfare benefits, including benefits under any
retiree medical benefits or life insurance plan or policy, the Executive will be considered to have
remained actively employed on a full-time basis through the termination of the Continuation Period.

          (D) For any Welfare Benefits that the Executive was receiving or entitled to receive
immediately prior to the Termination Date (or, if greater, immediately prior to the reduction,
termination, or denial described in Section 1(l)(ii)) that are not considered to be “reimbursement
arrangements” covered under Section 1.409A-1(b)(9)(iv)(A) of the Code, the Company shall pay to the
Executive, within the time period described in Section 4(a), in a lump sum, an amount equal to the
present value of the continuation of such benefits for 18 months following the Termination Date.

          (E) Welfare Benefits otherwise receivable by the Executive pursuant to this Paragraph 2 will
be reduced to the extent comparable Welfare Benefits are actually received by the Executive from
another employer during the Continuation Period following the Executive’s Termination Date, and any
such Welfare Benefits actually received by the Executive will be reported by the Executive to the
Company.

     (3) The Non-Competition Period contemplated by Section 8(a) will be 12 months from the
Termination Date.

17

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