Document:

exv10w8

 

EXHIBIT 10.8

ABM DEFERRED COMPENSATION PLAN

(Amended and Restated, Effective January 1, 2005)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	1.01 “401(k) Plan”
	 	 	1	 
	1.02 “Account”
	 	 	1	 
	1.03 “Administrative Committee” or “Committee”
	 	 	1	 
	1.04 “Beneficiary”
	 	 	1	 
	1.05 “Board”
	 	 	1	 
	1.06 “Change in Control”
	 	 	1	 
	1.07 “Code”
	 	 	1	 
	1.08 “Company”
	 	 	1	 
	1.09 “Compensation”
	 	 	1	 
	1.10 “Deferral”
	 	 	1	 
	1.11 “Disabled” or “Disability”
	 	 	1	 
	1.12 “Effective Date”
	 	 	1	 
	1.13 “Eligible Employee”
	 	 	2	 
	1.14 “Employer”
	 	 	2	 
	1.15 “ERISA”
	 	 	2	 
	1.16 “Highly Paid Participant”
	 	 	2	 
	1.17 “Identification Date”
	 	 	2	 
	1.18 “Key Employee”
	 	 	2	 
	1.19 “Participant”
	 	 	2	 
	1.20 “Performance-Based Bonus”
	 	 	2	 
	1.21 “Person”
	 	 	2	 
	1.22 “Plan”
	 	 	2	 
	1.23 “Plan Year”
	 	 	3	 
	1.24 “Separation from Service”
	 	 	3	 
	1.25 “Scheduled Withdrawal Date”
	 	 	3	 
	1.26 “Valuation Date”
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II ELIGIBILITY FOR PARTICIPATION
	 	 	3	 
	2.01 Eligibility Requirements
	 	 	3	 
	2.02 Change in Employment Status
	 	 	3	 
	2.03 Determination of Eligibility
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III DEFERRALS
	 	 	4	 
	3.01 Deferrals
	 	 	4	 
	3.02 Deferral Election
	 	 	4	 
	 
	 	 	 	 
	ARTICLE IV ACCOUNTS, FUNDING AND VALUATION
	 	 	4	 
	4.01 Establishment of Account
	 	 	4	 
	4.02 Valuation of Account Prior to the Implementation of a Supplemental Plan
	 	 	5	 
	4.03 Investment Elections After Implementation of a Supplemental 401(k) Plan
	 	 	5	 
	 
	 	 	 	 
	ARTICLE V PARTICIPANTS’ VESTED INTERESTS
	 	 	6	 
	5.01 Vesting
	 	 	6	 

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	ARTICLE VI DISTRIBUTION OF BENEFITS
	 	 	6	 
	6.01 Distribution of Benefits
	 	 	6	 
	6.02 Unforeseeable Emergency Withdrawals
	 	 	8	 
	6.03 Special Distribution Election on or before December 31, 2007
	 	 	9	 
	6.04 Prohibition on Acceleration
	 	 	9	 
	6.05 Distributions to Key Employees
	 	 	9	 
	 
	 	 	 	 
	ARTICLE VII DEATH
	 	 	9	 
	7.01 Death
	 	 	9	 
	 
	 	 	 	 
	ARTICLE VIII THE ADMINISTRATIVE COMMITTEE
	 	 	10	 
	8.01 Appointment of Administrative Committee
	 	 	10	 
	8.02 Committee Operating Rules
	 	 	10	 
	8.03 Allocation and Delegation of Responsibilities
	 	 	11	 
	8.04 Duties and Responsibilities
	 	 	11	 
	8.05 Expenses and Compensation
	 	 	12	 
	8.06 Information from Employer
	 	 	12	 
	8.07 Administrative Committee; Signature
	 	 	12	 
	 
	 	 	 	 
	ARTICLE IX PARTICIPANTS’ RIGHTS
	 	 	12	 
	9.01 Special Disclosures
	 	 	12	 
	9.02 Filing a Claim for Benefits
	 	 	12	 
	9.03 Denial of a Claim
	 	 	13	 
	9.04 Limitation of Rights
	 	 	13	 
	 
	 	 	 	 
	ARTICLE X AMENDMENT AND TERMINATION
	 	 	13	 
	10.01 Amendment
	 	 	13	 
	10.02 Termination of the Plan
	 	 	14	 
	10.03 Termination upon a Change in Control
	 	 	14	 
	10.04 Termination upon Dissolution or Bankruptcy
	 	 	14	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS
	 	 	14	 
	11.01 Execution of Receipts and Releases
	 	 	14	 
	11.02 Notice and Unclaimed Benefits
	 	 	15	 
	11.03 Non-Alienation of Benefits
	 	 	15	 
	11.04 Loans to Participants
	 	 	15	 
	11.05 Benefits Payable to Incompetents
	 	 	15	 
	11.06 Applicable Law
	 	 	16	 
	11.07 Headings as Guide
	 	 	16	 
	11.08 Pronouns
	 	 	16	 
	11.09 Reference to Laws
	 	 	16	 
	11.10 Agent Designated for Service of Process
	 	 	16	 
	11.11 Participant’s Rights Unsecured
	 	 	16	 

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ABM DEFERRED COMPENSATION PLAN

(Amended and Restated, Effective January 1, 2005)

ARTICLE I

DEFINITIONS

The following terms as used herein shall have the meaning hereinafter set forth unless the context
clearly indicates a different meaning is required. Whenever in these definitions a word or phrase
not previously defined is used, such word or phrase shall have the meaning thereafter given to it
in Article I unless otherwise specified.

	1.01	 	“401(k) Plan” means the ABM Industries Incorporated 401(k) Employee Savings Plan.
	 
	1.02	 	“Account” means the account established and maintained by the Administrative
Committee for each Participant.
	 
	1.03	 	“Administrative Committee” or “Committee” means those individuals designated
by the Board to administer the Plan, and any successors appointed in accordance with Section
8.02 of the Plan.
	 
	1.04	 	“Beneficiary” means the Person last designated by a Participant on a form provided by
the Administrative Committee or by the terms of the Plan to receive any amounts payable under
the Plan following the death of the Participant. A Participant may change the Beneficiary
from time to time on a form provided by the Administrative Committee.
	 
	1.05	 	“Board” means the Board of Directors of the Company.
	 
	1.06	 	“Change in Control” shall have the meaning given that term in Section 10.03.
	 
	1.07	 	“Code” means the Internal Revenue Code of 1986, as amended from time to time.
	 
	1.08	 	“Company” means ABM Industries Incorporated.
	 
	1.09	 	“Compensation” means all amounts (including Performance-Based Bonuses and other
bonuses) paid by the Employer to the Employee while a Participant with respect to services
rendered during the Plan Year, including all Deferrals elected by the Participant during the
Plan Year.
	 
	1.10	 	“Deferral” means an amount that a Participant has elected to defer under Article III.
	 
	1.11	 	“Disabled” or “Disability” means that an individual is eligible for
disability benefits under the Federal Social Security Act as determined by the Social Security
Administration.
	 
	1.12	 	“Effective Date” means January 1, 2005.

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	1.13	 	“Eligible Employee” means any individual, including an officer of the Employer, who
is (a) employed (other than as a director) by the Employer, (b) not either an hourly manual
employee or in a unit of employees covered by a collective bargaining agreement, and (c)
determined to be a Highly Paid Participant as defined in Section 1.16 during the Plan Year.
	 
	1.14	 	“Employer” means the Company, its subsidiaries (within the meaning of sections 414(b)
and (c) of the Code), and its successors or assigns.
	 
	1.15	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time.
	 
	1.16	 	“Highly Paid Participant” means any Participant whose base rate of pay is at least
$125,000 per year, effective January 1, 2008.
	 
	1.17	 	“Identification Date” means each December 31.
	 
	1.18	 	“Key Employee” means a Participant who, on an Identification Date, is:

	 	(a)	 	An officer of the Company having annual compensation greater than the
compensation limit in section 416(i)(1)(A)(i) of the Code, provided that no more than
50 officers of the Company shall be determined to be Key Employees as of any
Identification Date;
	 
	 	(b)	 	A 5% owner of the Company; or
	 
	 	(c)	 	A 1% owner of the Company having annual Compensation from the Company of more
than $150,000.

	 	 	If a Participant is identified as a Key Employee on an Identification Date, then such
Participant shall be considered a Key Employee for purposes of the Plan during the period
beginning on the first April 1 following the Identification Date and ending on the next
March 31.
	 
	1.19	 	“Participant” means any Eligible Employee or former Employee who has satisfied the
eligibility requirements of Section 2.01 who is, or may become, eligible to receive a benefit
or whose Beneficiary may be eligible to receive a benefit under the Plan.
	 
	1.20	 	“Performance-Based Bonus” means the definition of performance-based compensation, as
defined in section 409A of the Code and the regulations promulgated thereunder.
	 
	1.21	 	“Person” means any individual, partnership, joint venture, corporation, mutual
company, joint stock company, trust, estate, unincorporated organization, association, or
employee organization, and shall, where appropriate, include two or more of the above.
	 
	1.22	 	“Plan” means this ABM Deferred Compensation Plan, as amended and restated effective
January 1, 2005. The Plan is intended to be an unfunded plan for the benefit of a select
group of management or highly compensated employees, as such are defined in ERISA.

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	1.23	 	“Plan Year” means the 12-month period commencing January 1 and ending on the
following December 31.
	 
	1.24	 	“Separation from Service” means termination of employment with the Company, other
than by reason of Disability or death, as defined under the regulations promulgated under
section 409A of the Code.
	 
	1.25	 	“Scheduled Withdrawal Date” means the month and year that the Participant elects;
provided, however, that a Scheduled Withdrawal Date must be no less than three years after the
Plan Year to which the election is made.
	 
	1.26	 	“Valuation Date” means March 31, June 30, September 30 and December 31 of each Plan
Year; provided, however, that after implementation of a supplemental 401(k) Plan, “Valuation
Date” shall mean any business day.

ARTICLE II

ELIGIBILITY FOR PARTICIPATION

	2.01	 	Eligibility Requirements
	 
	 	 	Subject to Section 2.02, each Eligible Employee of the Employer shall become a Participant
under the Plan on the later of (a) July 1, 1993, or (b) January 1 of the first Plan Year on
or after he or she becomes (or becomes again) an Eligible Employee.
	 
	2.02	 	Change in Employment Status
	 
	 	 	A Participant’s participation in the Plan shall terminate in the next Plan Year following
the date on which he or she ceases to be an Eligible Employee as defined under the terms of
the Plan, except that the Participant shall retain the right to receive his or her Account
in accordance with the terms and conditions of the Plan. He or she shall again become
eligible to participate in the Plan as of the January 1 coincident with or immediately
following the date on which he or she regains the status of an Eligible Employee under the
Plan.
	 
	2.03	 	Determination of Eligibility
	 
	 	 	The Administrative Committee shall determine whether each Eligible Employee has satisfied
the eligibility requirements for participation in the Plan. The Committee’s determination
shall be conclusive and binding upon all persons.

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ARTICLE III

DEFERRALS

	3.01	 	Deferrals
	 
	 	 	For each Plan Year, a Participant may elect to defer receipt of a portion of his or her
Compensation that he or she would otherwise receive from the Employer. The amount of the
Deferral must equal a whole percentage not exceeding 20% of the amount of the Participant’s
Compensation. The elections described in this Article III shall specify the form and time
of distribution of benefits as described in Section 6.01. Unless otherwise provided, an
election must be made each year in order to participate in this Plan.
	 
	3.02	 	Deferral Election

	 	(a)	 	Elections. For each Plan Year, a Participant (or any Eligible Employee
who is expected to become eligible to participate in the Plan) may make an election
described in Section 3.01 by filing an election form with the Administrative Committee
within a reasonable period of time, as specified by the Committee, before the beginning
of the Plan Year to which the Deferral election applies. Except as provided in this
Plan, a Deferral election shall be irrevocable on the December 31 preceding the Plan
Year and may not be changed or revoked during the Plan Year that it is effective;
provided, however, that a Participant’s election shall terminate if such Participant
receives a distribution on account of an Unforeseeable Emergency or hardship withdrawal
from the 401(k) Plan and thereafter the Participant must submit a new election during
the next enrollment period to resume participation in the Plan.
	 
	 	(b)	 	Elections to Defer Performance-Based Bonuses. The Company, in its
discretion, may permit a separate election to defer a Performance-Based Bonus, and such
election may be made and be irrevocable no later than six months prior to the end of
the applicable performance period; provided, however, that such election shall be made
prior to the date that the Performance-Based Bonus is readily ascertainable.

ARTICLE IV

ACCOUNTS, FUNDING AND VALUATION

	4.01	 	Establishment of Account
	 
	 	 	The Administrative Committee shall open and maintain a separate Account for each
Participant. Such Account shall be credited with all Deferrals for the Participant. As
soon as reasonably practicable after each Valuation Date, each Participant shall be notified
of the value of his or her Account.

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	4.02	 	Valuation of Account Prior to the Implementation of a Supplemental Plan 

	 	(a)	 	Until the date designated by the Administrative Committee for implementation of
a supplemental 401(k) Plan, as described in Section 4.03, interest shall be credited to
each Participant’s Account as of each Valuation Date equal to the product of

	 	(1)	 	the amount credited to the Participant’s Account as of the last
preceding Valuation Date, less any distributions or withdrawals and plus
one-half of Deferrals, if any, since the last preceding Valuation Date,
multiplied by
	 
	 	(2)	 	the applicable interest rate.

	 	(b)	 	On each Valuation Date, each Participant’s Account will be credited with
interest. The amount of interest will be derived from the prime interest rate
published in The Wall Street Journal on the last business day coinciding with or next
preceding the Valuation Date. Any prime rate up to 6% will be considered in full, and
one-half of any prime rate over 6% will be considered; provided, however, that
effective April 1, 2007, the interest rate will not exceed 120% of the long-term
applicable federal rate (compounded quarterly), as published by the Internal Revenue
Service for the applicable Plan Year. The amount credited will be a proration of the
interest rate applied taking into consideration the period of time elapsed since the
last Valuation Date.

	4.03	 	Investment Elections After Implementation of a Supplemental 401(k) Plan 

	 	(a)	 	Effective upon the date selected for implementation of a supplemental 401(k)
Plan by the Administrative Committee, each Participant shall make an investment
election in the manner prescribed by the Administrative Committee, indicating the
Participant’s election to have the value of his or her Account determined by crediting
it with such earnings, gains and losses as would have accrued to the Participant’s
Account had such funds actually been invested in one or more of the investment funds
maintained in the 401(k) Plan. Such investment election may be changed from time to
time by the Participant with respect to both past and future deferrals by following the
procedures prescribed by the Committee.
	 
	 	(b)	 	If an investment fund is eliminated from the 401(k) Plan, the value of the
portion of the Participant’s Account that the Participant previously had elected be
determined with reference to such investment fund shall thereafter be determined in the
manner determined by the Committee in its sole discretion.

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ARTICLE V

PARTICIPANTS’ VESTED INTERESTS

	5.01	 	Vesting
	 
	 	 	Each Participant shall always be 100% vested in the portion of his or her Account
attributable to Deferrals and interest or earnings credited pursuant to Section 4.

ARTICLE VI

DISTRIBUTION OF BENEFITS

	6.01	 	Distribution of Benefits
	 
	 	 	Except as otherwise provided in Article VI of the Plan, a Participant’s Account may not be
distributed to a Participant or his or her Beneficiary before the dates chosen pursuant to
the election made by the Participant.

	 	(a)	 	Form of Distribution. A Participant will elect, in writing, on a form
prescribed by the Administrative Committee, which of the distribution options described
below will govern the payment of the Participant’s Account upon a Separation from
Service. The Participant’s Account will be distributed to him (subject to the timing
requirements outlined in paragraphs (b) — (e) below) on any of the following schedules:

	 	(1)	 	A single lump sum,
	 
	 	(2)	 	Four annual installments, or
	 
	 	(3)	 	Ten annual installments.

	 	 	If the Participant made no election at the time specified in Section 3.02, his or her
benefit shall be paid as a single lump sum upon a Separation from Service. For purposes of
this Plan, installment payments shall be treated as a single distribution under section 409A
of the Code.

	 	(b)	 	Time of Distribution

	 	(1)	 	Separation from Service. If a Participant Separates
from Service, his or her Account shall be distributed in the form elected by
the Participant pursuant to paragraph (a) above. Subject to the timing
requirements of paragraphs (c), a Participant’s Account shall be distributed
on the seventh month following his or her Separation from Service. The amount
in the Participant’s Account shall be determined as of the Valuation Date that
last precedes the date of distribution, plus Deferrals and less any

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	 	 	 	withdrawals or distributions, if any, for the period from the last preceding
Valuation Date to the date of distribution.
	 
	 	(2)	 	Disability. Effective January 1, 2007, if a
Participant becomes Disabled, his or her Account shall be distributed, in the
manner elected by the Participant pursuant to paragraph (a) above, as soon as
administratively feasible, but no later than 90 days, after the Participant
becomes Disabled. The amount in the Participant’s Account shall be determined
as of the Valuation Date that last precedes the date of distribution, plus
Deferrals and less any withdrawals or distributions, if any, for the period
from the last preceding Valuation Date to the date of distribution.
	 
	 	(3)	 	Scheduled Withdrawal Date. A Participant may elect to
have all or a portion of his or her Plan Year deferrals distributed to him or
her on up to three Scheduled Withdrawal Dates, while such Participant is an
employee, elected by the Participant, each a single lump sum.
	 
	 	 	 	Subject to the timing requirements outlined in paragraphs (c) below, a
Participant shall receive his or her distribution under this subparagraph
(3) as soon as administratively feasible, but no later than 90 days, after
the Scheduled Withdrawal Date. If a Participant elects a Scheduled
Withdrawal Date, his or her applicable deferral amount valued as of the last
Valuation Date preceding the elected Scheduled Withdrawal Date shall be
distributed as elected in this subparagraph (3).
	 
	 	 	 	Notwithstanding an election pursuant to this subparagraph (3), if a
Participant Separates from Service prior to the Scheduled Withdrawal Date,
the Participant’s Account shall be distributed pursuant to his or her
election under subparagraph (1) above.

	 	 	Notwithstanding the foregoing, upon a distribution of a Participant’s Account in
subparagraphs (1), (2) and (3) above, and after January 1, 2007 but prior to the
implementation of a supplemental 401(k) Plan as described in Section 4.03, the Company shall
credit to a Participant’s Account interest on the amount that is the difference of the value
of the Participant’s Account as of the last Valuation Date preceding the scheduled
distribution date. Interest shall be calculated using the principles set forth in Section
4.02.

	 	(c)	 	Changes to Distribution Elections
	 
	 	 	 	A Participant may change his or her Scheduled Withdrawal Date and/or the form of
distribution of his or her Account upon a Separation from Service by submitting a
form, as the Committee prescribes; provided that (1) any such change is not
effective for 12 months, (2) such form is submitted at least twelve months prior to
the date of the Scheduled Withdrawal Date or the Participant Separates from Service,
whichever is applicable, (3) the scheduled date of payment is at least five years
subsequent to the originally scheduled date of

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	 	 	 	payment, and (4) the form is accepted by the Committee, in its sole and absolute
discretion. The change may be modified or revoked until twelve months prior to the
time a Participant is scheduled to receive a payment, at which time such change
shall become irrevocable. The last valid form accepted by the Committee shall
govern the payout of a Participant’s Scheduled Withdrawal Date or Account, as
applicable.
	 
	 	 	 	Distributions made pursuant to this paragraph (c) will be made as soon as
administratively practicable, but no later than 90 days, after the scheduled date of
distribution.
	 
	 	(d)	 	No Cessation of Distribution for Rehired Participants
	 
	 	 	 	In addition, if a Participant Separates from Service and is later rehired by an
Employer, distributions shall not cease, but continue to be distributed as elected.

	6.02	 	Unforeseeable Emergency Withdrawals

	 	(a)	 	A Participant may withdraw up to 100% of the amount in his or her Deferral
Account in the event of an unforeseeable emergency to the extent provided in this
Section 6.02.
	 
	 	(b)	 	For purposes of this Section 6.02, unforeseeable emergency means a severe
financial hardship to the Participant resulting from a sudden and unexpected illness or
accident of the Participant or a dependent (as defined in section 152(a) of the Code)
of the Participant, loss of the Participant’s property due to casualty, or other
similar extraordinary and unforeseeable circumstances arising as a result of events
beyond the Participant’s control.
	 
	 	(c)	 	The withdrawal under this Section 6.02 may not exceed the amount reasonably
necessary to satisfy the financial need (including the amount of any federal, state or
local income taxes or penalties reasonably anticipated to result from the withdrawal).
The withdrawal may not be made to the extent the need may be satisfied (1) through
reimbursement or compensation by insurance or otherwise, (2) by liquidation of the
Participant’s assets, to the extent the liquidation of the assets would not itself
cause severe financial hardship, or (3) by ceasing Deferrals under the Plan.
	 
	 	(d)	 	A Participant who wishes to withdraw any amount pursuant to this Section 6.02
must submit, on a form provided by the Administrative Committee, a written request by
the Participant that states:

	 	(1)	 	The unforeseeable emergency for which the withdrawal is
requested;
	 
	 	(2)	 	The amount needed to satisfy the financial need, which amount
may include any federal, state, or local income taxes or penalties reasonably
anticipated to result from the withdrawal;

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	 	(3)	 	A representation that the need cannot be satisfied in any of
the ways stated in the second sentence of paragraph (c);
	 
	 	(4)	 	The date the funds are required; and
	 
	 	(5)	 	Any other information the Administrative Committee deems
necessary.

	 	(e)	 	The Administrative Committee will determine if an unforeseeable emergency
withdrawal will be allowed by applying the standards set forth in paragraphs (b) and
(c).
	 
	 	(f)	 	A withdrawal from a Participant’s Account under this Section 6.02 shall be paid
in a lump sum.

	6.03	 	Special Distribution Election on or before December 31, 2007
	 
	 	 	Participants who are identified by the Administrative Committee, in its sole discretion, may
make a special distribution election to receive a distribution of their Accounts in calendar
year 2008 or later, provided that the distribution election is made at least twelve months
in advance of the newly elected distribution date (and the previously scheduled distribution
date, if any) and the election is made no later than December 31, 2007. An election made
pursuant to this Section 6.03 shall be subject to any special administrative rules imposed
by the Committee including rules intended to comply with section 409A of the Code. No
election under this Section 6.03 shall (a) change the payment date of any distribution
otherwise scheduled to be paid in 2007 or cause a payment to be paid in 2007, or (b) be
permitted after December 31, 2007.
	 
	6.04	 	Prohibition on Acceleration
	 
	 	 	Notwithstanding any other provision of the Plan to the contrary, no distribution will be
made from the Plan that would constitute an impermissible acceleration of payment as defined
in section 409A(a)(3) of the Code and the regulations promulgated thereunder.
	 
	6.05	 	Distributions to Key Employees
	 
	 	 	Notwithstanding any other provision of the Plan to the contrary, distributions to a Key
Employee may not be made before the date that is six months after the date of his or her
Separation from Service.

ARTICLE VII

DEATH

	7.01	 	Death
	 
	 	 	If a Participant dies before distribution of his or her Account has begun or been completed,
the remaining portion of the Participant’s Account shall be payable in a single

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	 	 	lump sum to the Participant’s Beneficiary no later than 90 days after the date of the
Participant’s death. The value of the Participant’s Account shall be determined in
accordance with the rules set forth in Section 4.

ARTICLE VIII

THE ADMINISTRATIVE COMMITTEE

	8.01	 	Appointment of Administrative Committee
	 
	 	 	The Company shall designate the persons to serve as the Administrative Committee to manage
and administer this Plan in accordance with the provisions hereof, each member to serve for
such term as the Company may designate or until a successor member has been appointed or
until removed by the Company. Vacancies due to resignation, death, removal or other cause
shall be filled by the Company. In the event no successor is appointed, the remaining
member(s) or, if none, the Board will function as the Administrative Committee until
vacancies have been filled. Members shall serve without compensation for Committee service.
All reasonable expenses of the Committee shall be paid by the Company.
	 
	8.02	 	Committee Operating Rules
	 
	 	 	The Committee shall act by agreement of a majority of its members, either by vote at a
meeting or in writing without a meeting. The signature of one member of the Administrative
Committee may be accepted by any interested party as conclusive evidence that the
Administrative Committee has duly authorized the action therein set forth. No person
receiving documents or written instructions and acting in good faith and in reliance thereon
shall be obliged to ascertain the validity of such action under the terms of this Agreement.
A member of the Committee, who is also a Participant hereunder, shall not vote or act upon
any matter relating solely to him. In the event of a deadlock or other situation which
prevents agreement of a majority of the Committee members, the matter shall be decided by
the Compensation Committee of the Board.

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	8.03	 	Allocation and Delegation of Responsibilities
	 
	 	 	The Administrative Committee may engage agents to assist in carrying out the Administrative
Committee’s functions hereunder. The Committee shall administer the Plan and shall have full
discretionary authority to construe this Plan and to determine all questions of
interpretation or policy in a manner not inconsistent with the Plan and the Administrative
Committee’s construction or determination in good faith shall be final and conclusive and
binding on all parties including but not limited to the Employer and any Participant or
Beneficiary, except as otherwise provided by law. The Administrative Committee may correct
any defect, supply any omission, or reconcile any inconsistency in such manner and to such
extent as shall be deemed necessary or advisable to carry out the purpose of the Plan,
provided, however, that any interpretation or construction shall be done in a
nondiscriminatory manner and shall be consistent with the intent that the Plan shall be for
the benefit of a select group of management or highly compensated employees. The
Administrative Committee shall have all powers necessary or appropriate to accomplish its
duties under this Plan.
	 
	8.04	 	Duties and Responsibilities
	 
	 	 	The Administrative Committee shall be charged with the duties of the general administration
of the Plan, including but not limited to, the following:

	 	(a)	 	To determine all questions relating to the eligibility of employees to
participate in or remain a Participant hereunder;
	 
	 	(b)	 	To maintain all the necessary records for the administration of the Plan;
	 
	 	(c)	 	To interpret the provisions of the Plan and to make and publish such rules for
regulation of the Plan as are not inconsistent with the terms hereof;
	 
	 	(d)	 	To make any adjustments in the allocations to Accounts under the Plan necessary
to comply with any provision of law;
	 
	 	(e)	 	To compute and certify to the Employer initially and from time to time the sums
of money necessary to be contributed to the trust; and
	 
	 	(f)	 	To advise, counsel and assist any Participant regarding any rights, benefits or
elections available under the Plan.

	 	 	The Administrative Committee shall also be responsible for preparing and filing such annual
disclosure reports as may be required by law.
	 
	 	 	Whenever it is determined by the Administrative Committee to be in the best interest of the
Plan and its Participants and Beneficiaries, the Administrative Committee may request such
variances, deferrals, extensions, or exemptions or make such elections for the Plan as may
be available under the law.

11

 

	8.05	 	Expenses and Compensation
	 
	 	 	The expenses necessary to administer the Plan and the expenses incurred by the
Administrative Committee shall be paid by the Employer.
	 
	8.06	 	Information from Employer
	 
	 	 	The Employer shall supply full and timely information to the Administrative Committee on all
matters relating to the Compensation of all Participants, their continuous regular
employment, their retirement, death, the fact of their Disability or Separation from
Service, and such other pertinent facts as the Administrative Committee may require.
	 
	8.07	 	Administrative Committee; Signature
	 
	 	 	The Committee shall act, consistent with the its charter, by agreement of a majority of its
members, either by vote at a meeting or in writing without a meeting. The signature of one
member of the Administrative Committee may be accepted by any interested party as conclusive
evidence that the Administrative Committee has duly authorized the action therein set forth.
No person receiving documents or written instructions and acting in good faith and in
reliance thereon shall be obliged to ascertain the validity of such action under the terms
of this Agreement.

ARTICLE IX

PARTICIPANTS’ RIGHTS

	9.01	 	Special Disclosures
	 
	 	 	The Company shall furnish at least every six months each Participant or Beneficiary with a
written statement, based on the latest available information, indicating his or her total
benefits accrued.
	 
	 	 	Upon a Separation from Service, a Participant in the Plan is entitled to a written
explanation of and accounting for his or her Account and of any applicable options regarding
the disposition of such Account.
	 
	9.02	 	Filing a Claim for Benefits
	 
	 	 	A Participant or Beneficiary or the Employer acting in his or her behalf shall notify the
Administrative Committee of a claim for benefits under the Plan. Such request may be in any
form acceptable to the Administrative Committee and shall set forth the basis of such claim
and shall authorize the Administrative Committee to conduct such examinations as may be
necessary to determine the validity of the claim and to take such steps as may be necessary
to facilitate the payment of any benefits to which the Participant or Beneficiary may be
entitled under the terms of the Plan. The Administrative Committee shall review the claim
and may require additional information if necessary to process the claim. The
Administrative Committee shall issue its decision, in writing, no later than 90 days after

12

 

	 	 	the date the claim is received, unless circumstances require an extension of time. If such
an extension is required, written notice of the extension shall be furnished to the person
making the claim within the initial 90-day period, and the notice shall state the
circumstances requiring the extension and the date by which the Administrative Committee
expects to reach a decision on the claim. In no event shall the extension exceed a period
of 90 days from the end of the initial period.

	9.03	 	Denial of a Claim
	 
	 	 	Whenever a claim for benefits by any Participant or Beneficiary has been denied, in whole or
in part, a written notice of the denial will be provided to the Participant or Beneficiary
within the period specified in Section 9.02 above. The notice shall set forth, in a manner
calculated to be understood by the claimant, (i) the specific reason or reasons for the
denial; (ii) reference to the specific Plan provisions upon which the denial is based; (iii)
a description of any additional material or information necessary for the claimant to
perfect the claim and an explanation of why such information is necessary; and (iv) an
explanation of the Plan’s appeal procedures and the time limits applicable to such
procedures, including a statement of the claimant’s right to bring a civil action under
Section 502(a) of ERISA following an adverse benefit determination on review.
	 
	9.04	 	Limitation of Rights
	 
	 	 	Participation hereunder shall not grant any Participant the right to be retained in the
service of the Employer or any rights or interest other than those specifically herein set
forth.

ARTICLE X

AMENDMENT AND TERMINATION

	10.01	 	Amendment
	 
	 	 	The Board may at any time and from time to time amend this Plan in whole or in part
(including retroactively). The Board shall promptly deliver to the Administrative Committee
a written copy of the document amending the Plan. The Board shall not have the right to
amend the Plan retroactively in such a manner as to deprive any Participant or Beneficiary
of any benefit to which he or she was entitled under the Plan by reason of Deferrals
credited prior to the amendment.
	 
	 	 	The Committee may amend the Plan to bring the Plan into compliance with applicable law
(including changes required in order to avoid penalty taxes applied to Participants under
Section 409A of the Code), to admit additional employees to the Plan in connection with the
acquisition of assets or additional business operations by the Employer, or to make such
other changes as the Committee deems desirable; provided that such changes do not materially
increase the cost of the Plan to the Employer or take the Plan out of compliance with
applicable law, and provided further that the Committee may not amend this Article X.

13

 

	10.02	 	Termination of the Plan

	 	(a)	 	General. The Board may terminate the Plan at any time and in the
Board’s discretion the Accounts of Participants may be distributed within the period
beginning twelve months after the date the Plan was terminated and ending twenty-four
months after the date the Plan was terminated. If the Plan is terminated and Accounts
are distributed, the Company shall terminate all account balance non-qualified deferred
compensation plans with respect to all participants and shall not adopt a new account
balance non-qualified deferred compensation plan for at least five years after the date
the Plan was terminated.

	10.03	 	Termination upon a Change in Control

	 	(a)	 	“Change in Control” shall be deemed to have occurred upon a change in
the ownership or effective control of the Company or a change in the ownership of a
substantial portion of the assets of the Company as defined in the regulations
promulgated under section 409A of the Code.
	 
	 	(b)	 	Discretionary Distribution of Accounts
	 
	 	 	 	The Board, in its discretion may terminate the Plan 30 days prior to, or twelve
months following, a Change in Control and distribute the Accounts of the
Participants within the 12-month period following the termination of the Plan. If
the Plan is terminated and Accounts are distributed, the Company shall terminate all
substantially similar non-qualified deferred compensation plans sponsored by the
Company and all of the benefits of the terminated plans shall be distributed within
twelve months following the termination of the plans.

	10.04	 	Termination upon Dissolution or Bankruptcy
	 
	 	 	The Board, in its discretion, may terminate the Plan upon a corporate dissolution of the
Company that is taxed under section 331 of the Code or with the approval of a bankruptcy
court pursuant to 11 U.S.C. section 503(b)(1)(A), provided that the Participants’ Accounts
are distributed and included in the gross income of the Participants by the latest of (i)
the calendar year in which the Plan terminates or (ii) the first calendar year in which
payment of the Accounts is administratively practicable.

ARTICLE XI

MISCELLANEOUS

	11.01	 	Execution of Receipts and Releases
	 
	 	 	Any payment to any Participant or Beneficiary, in accordance with the provisions of this
Plan, shall, to the extent thereof, be in full satisfaction of all claims hereunder against
the Plan, and the Administrative Committee may require such Participant or Beneficiary, as a

14

 

	 	 	condition precedent to such payment, to execute a receipt and release therefor in such form
as the Administrative Committee shall determine.
	 
	11.02	 	Notice and Unclaimed Benefits
	 
	 	 	Each Participant and Beneficiary must file with the Employer from time to time in writing
his or her post office address and each change of post office address. Any communication,
statement, or notice addressed to a Participant or Beneficiary at his or her last post
office address filed with the Employer (or if no address was filed with the Employer, then
at his or her last post office address shown on his or her “Employer’s Records”) will be
binding on the Participant and his or her Beneficiary for all purposes of the Plan. Neither
the Employer, Administrative Committee, nor any insurance company providing annuity
contracts under the Plan shall be obliged to search for or ascertain the whereabouts of any
Participant or Beneficiary. For the purpose of this Section, “Employer Records” means the
payroll records maintained by an Employer. Such records shall be conclusive, unless shown
to the Employer’s satisfaction to be incorrect.
	 
	 	 	The Committee shall notify any Participant or Beneficiary when a distribution is required
under the Plan. The Committee may also request the Social Security Administration to notify
the Participant or Beneficiary in accordance with any procedures the Administration has
established for this purpose. In the event that the Participant or Beneficiary shall fail
to respond to any notice from the Committee, the amount in his or her Account shall be
forfeited.
	 
	11.03	 	Non-Alienation of Benefits
	 
	 	 	Except in the case of a qualified domestic relations order, as defined in section 414(p) of
the Code:

	 	(a)	 	No Participant or Beneficiary, and no creditor of a Participant or Beneficiary
shall have any right to assign, pledge, sell, hypothecate, anticipate or in any way
create a lien upon his or her benefits under the Plan by operation of law or otherwise,
and any attempt to do so shall be void; nor shall any such benefits in any manner be
liable for or subject to the debts, contracts, liabilities, engagements or torts of the
person entitled to such benefits.
	 
	 	(b)	 	No interest in the Plan shall be subject to assignment or transfer or otherwise
be alienable, either by voluntary or involuntary act or by operation of law or equity,
or subject to attachment, execution, garnishment, sequestration, levy or other seizure
under any legal, equitable or other process, or be liable in any way for the debts or
defaults of Participants and Beneficiaries.

	11.04	 	Loans to Participants
	 
	 	 	A Participant may not receive a loan from the Plan of any portion of his or her Account.
	 
	11.05	 	Benefits Payable to Incompetents

15

 

	 	 	Each individual receiving benefit payments under the Plan shall be conclusively presumed to
have been legally competent until the date upon which the Administrative Committee shall
have received written notice in the form and manner acceptable to it that such individual is
an incompetent for whom a guardian or other person legally vested with his or her care shall
have been appointed. From and after the date of receipt of such notice by the
Administrative Committee, all future benefit payments to which such individual is entitled
under the Plan shall be payable to his or her guardian or other person legally vested with
his or her care, until such time as the Administrative Committee shall be furnished with
evidence satisfactory to it that such individual is legally competent.
	 
	11.06	 	Applicable Law
	 
	 	 	This Plan shall be governed and construed under the laws of the State of California and, to
the extent applicable, ERISA and regulations thereunder.
	 
	11.07	 	Headings as Guide
	 
	 	 	The headings of this Plan are inserted for convenience of reference only and are not to be
considered in construction of the provisions hereof.
	 
	11.08	 	Pronouns
	 
	 	 	When necessary to the meaning hereof, either the masculine or the neuter pronoun shall be
deemed to include the masculine, the feminine, and the neuter, and the singular shall be
deemed to include the plural.
	 
	11.09	 	Reference to Laws
	 
	 	 	Any reference to any section or regulation under the Code or ERISA or to any other statute
or law shall be deemed to include any successor law of similar import.
	 
	11.10	 	Agent Designated for Service of Process
	 
	 	 	The designated person upon whom service of process may be made in any action involving the
Plan shall be any current member of the Administrative Committee.
	 
	11.11	 	Participant’s Rights Unsecured
	 
	 	 	The right of the Participant or his or her designated Beneficiary to receive a distribution
hereunder shall be an unsecured claim against the general assets of the Company, and neither
the Participant nor his or her designated Beneficiary shall have any rights in or against
any amount credited to his or her Account or any other specific assets of the Company. All
amounts credited to an Account shall constitute general assets of the Company and may be
disposed of by the Company at such time and for such purposes as it may deem appropriate.
An Account may not be encumbered or assigned by a Participant or any Beneficiary, as
provided in Section 11.03.

16

 

    
 Executed at this
10th day
of September, 2007.

	 	 	 	 	 
	 	ABM INDUSTRIES INCORPORATED

 	 
	 	By  	/s/ Erin M. Andre
 	 
	 	 	    Erin M. Andre 	 
	 	 	    Senior Vice President — Human Resources 	 
	 

17exv10w16

 

EXHIBIT 10.16

ABM DEFERRED COMPENSATION PLAN

FOR NON-EMPLOYEE DIRECTORS

As Amended and Restated as of September 5, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ArArticle I DEFINITIONS

	 	 	1	 
	1.01 “Account”

	 	 	1	 
	1.02 “Administrative Committee” or
“Committee”

	 	 	1	 
	1.03 “Beneficiary”

	 	 	1	 
	1.04 “Board”

	 	 	1	 
	1.05 “Company”

	 	 	1	 
	1.06 “Compensation”

	 	 	1	 
	1.07 “Deferral”

	 	 	1	 
	1.08 “Director”

	 	 	1	 
	1.09 “Effective Date”

	 	 	1	 
	1.10 “Internal Revenue Code” or “Code”

	 	 	1	 
	1.11 “Participant”

	 	 	1	 
	1.12 “Person”

	 	 	1	 
	1.13 “Plan”

	 	 	1	 
	1.14 “Plan Administrator”

	 	 	2	 
	1.15 “Plan Year”

	 	 	2	 
	1.16 “Unforeseeable Emergency”

	 	 	2	 
	1.17 “Valuation Date”

	 	 	2	 
	 
	 	 	 	 
	ArArticle II ELIGIBILITY FOR PARTICIPATION

	 	 	3	 
	2.01 Eligibility Requirements

	 	 	3	 
	2.02 Change in Status

	 	 	3	 
	2.03 Determination of Eligibility

	 	 	3	 
	 
	 	 	 	 
	ArArticle III CONTRIBUTIONS

	 	 	4	 
	3.01 Deferrals

	 	 	4	 
	3.02 Elective Deferral Election

	 	 	4	 
	 
	 	 	 	 
	ArArticle IV ACCOUNTS. FUNDING AND VALUATION
	 	 	 	 
	 

	 	 	5	 
	4.01 Establishment of Account

	 	 	5	 
	4.02 Valuation of Account

	 	 	5	 
	 
	 	 	 	 
	ArArticle V PARTICIPANTS’ VESTED INTERESTS

	 	 	6	 
	5.01 Vesting

	 	 	6	 
	 
	 	 	 	 
	ArArticle VI DISTRIBUTION OF BENEFITS

	 	 	7	 
	6.01 Distribution of Benefits

	 	 	7	 
	6.02 Retirement and Termination

	 	 	7	 
	6.03 Unforeseeable Emergency Withdrawals

	 	 	7	 
	6.04 Form of Distribution

	 	 	8	 
	 
	 	 	 	 
	ArArticle VII DEATH

	 	 	9	 
	7.01 Death

	 	 	9	 

i  

 

	 	 	 	 	 
	ArArticle VIII THE ADMINISTRATIVE COMMITTEE

	 	 	10	 
	8.01 Duties and Responsibility

	 	 	10	 
	8.02 Allocation and Delegation of
Responsibilities

	 	 	10	 
	8.03 Expenses and Compensation

	 	 	11	 
	8.04 Information from Company

	 	 	11	 
	8.05 Administrative Committee; Signature

	 	 	11	 
	 
	 	 	 	 
	ArArticle IX PARTICIPANTS’ RIGHTS

	 	 	12	 
	9.01 Disclosures

	 	 	12	 
	9.02 Filing a Claim for Benefits

	 	 	12	 
	9.03 Denial of a Claim

	 	 	12	 
	9.04 Limitation of Rights

	 	 	12	 
	 
	 	 	 	 
	ArArticle X AMENDMENT AND TERMINATION

	 	 	13	 
	10.01 Amendment or Termination

	 	 	13	 
	10.02 Procedure Upon Termination of the Plan

	 	 	13	 
	 
	 	 	 	 
	ArArticle XI MISCELLANEOUS

	 	 	14	 
	11.01 Execution of Receipts and Releases

	 	 	14	 
	11.02 Notice and Unclaimed Benefits

	 	 	14	 
	11.03 Non-Alienation of Benefits

	 	 	14	 
	11.04 Loans to Participants

	 	 	15	 
	11.05 Benefits Payable to Incompetents

	 	 	15	 
	11.06 Applicable Law

	 	 	15	 
	11.07 Headings as Guide

	 	 	15	 
	11.08 Pronouns

	 	 	15	 
	11.09 Reference to Laws

	 	 	15	 
	11.10 Participant’s Rights Unsecured

	 	 	15	 

ii  

 

Article I

DEFINITIONS

     The following terms as used herein shall have the meaning hereinafter set forth unless the
context clearly indicates a different meaning is required. Whenever in these definitions a word or
phrase not previously defined is used, such word or phrase shall have the meaning thereafter given
to it in Article I unless otherwise specified.

	1.01	 	“Account” means the account established and maintained by the Administrative Committee for
each Participant.
	 
	1.02	 	“Administrative Committee” or “Committee” means the Governance Committee of the Board of
Directors of the Company.
	 
	1.03	 	“Beneficiary” means the Person last designated by a Participant on a form provided by the
Administrative Committee or by the terms of the Plan to receive any amounts payable under the
Plan following the death of the Participant. A Participant may change the Beneficiary from
time to time on a form provided by the Administrative Committee.
	 
	1.04	 	“Board” means the Board of Directors of the
Company.
	 
	1.05	 	“Company” means ABM Industries Incorporated,
and, where appropriate, its successors or assigns.
	 
	1.06	 	“Compensation” means all the annual retainer and board meeting fees paid by the Company to the
Eligible Director while a Participant with respect to services
rendered during the Plan Year.
	 
	1.07	 	“Deferral” means an amount that a
Participant has elected to defer under Article III.
	 
	1.08	 	“Director” means any individual who is a member of the Board and who is not an employee of the
Company.
	 
	1.09	 	“Effective Date” means October 31, 2006.
	 
	1.10	 	“Internal Revenue Code” or “Code” means the Internal Revenue Code of 1986, as amended from
time to time.
	 
	1.11	 	“Participant” means any Director or former Director who has satisfied the eligibility
requirements of Section 2.01 who is, or may become, eligible to receive a benefit or whose
Beneficiary may be eligible to receive a benefit under the Plan.
	 
	1.12	 	“Person” means any individual, partnership, joint venture, corporation, mutual company, joint
stock company, trust, estate, unincorporated organization, association, or employee
organization, and shall, where appropriate, include two or more of the above.
	 
	1.13	 	“Plan” means the ABM Deferred Compensation Plan for Non-Employee Directors.

1 

 

	1.14	 	“Plan Administrator” means the Company.
	1.15	 	“Plan Year” means the calendar year.
	 
	1.16	 	“Unforeseeable Emergency” means shall mean a severe financial hardship to the
Participant or his or her Beneficiary resulting from: (i) an illness or accident of the
Participant or Beneficiary, the Participant’s or Beneficiary’s spouse, or the
Participant’s or Beneficiary’s dependent (as defined in Code section 152(a)); (ii) loss
of the Participant’s or Beneficiary’s property due to casualty (including the need to
rebuild a home following damage to a home not otherwise covered by insurance); or (iii)
other similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant or Beneficiary. Hardship shall not
constitute an Unforeseeable Emergency to the extent that it is, or may be, relieved by:
(a) reimbursement or compensation, by insurance or otherwise; (b) liquidation of the
Participant’s or Beneficiary’s assets to the extent that the liquidation of such assets
would not itself cause severe financial hardship; or (c) cessation of deferrals under
the Plan. An Unforeseeable Emergency does not include (among other events): (y) sending
a child to college; or (z) purchasing a home.

1.17 “Valuation Date” means March 31, June 30, September 30 and December 31 of each Plan Year.
	 
	 
	1.17	 	 “Valuation Date” means March 31, June 30, September 30 and December 31 of each Plan Year.

2 

 

Article II

ELIGIBILITY FOR PARTICIPATION

	2.01	 	Eligibility Requirements
	 
	 	 	Each Director of the Company shall become a Participant
under the Plan on the date he or she makes an election to
defer Compensation under the Plan.
	 
	2.02	 	Change in Status
	 
	 	 	A Participant’s participation in the Plan shall terminate
immediately as of the date on which he or she ceases to be
a Director, except that the Participant shall retain the
right to receive his or her Account.
	 
	2.03	 	Determination of Eligibility
	 
	 	 	The Administrative Committee shall determine whether each
Director has satisfied the eligibility requirements for
participation in the Plan. The Committee’s determination
shall be conclusive and binding upon all persons.

3 

 

Article III

CONTRIBUTIONS

	3.01	 	Deferrals
	 
	 	 	For each Plan Year commencing with 2007, a Participant may
elect to defer receipt of all or any portion of his or her
Compensation that he or she would otherwise receive from
the Company. In addition, in October 2006 each Eligible
Director who is a party to a Director Retirement Plan
benefit agreement may elect to have such benefit converted
to a credit to the Account established pursuant to this
Plan, effective November 1, 2006.
	 
	3.02	 	Elective Deferral Election
	 
	 	 	For each Plan Year, a Participant may make an election
described in Section 3.01 by filing an election form with
the Administrative Committee within a reasonable period of
time, as specified by the Committee, before the beginning
of the Plan Year to which the Deferral election applies. A
Deferral election may not be changed during the Plan Year
that it is effective; provided, that upon a showing of an
Unforeseeable Emergency and with the consent of the
Administrative Committee, a Participant may at any time
revoke his or her Deferral election with respect to
Compensation he or she has not yet earned during the Plan
Year. A Participant who revokes his or her Deferral
election may not again make an election to defer the
receipt of Compensation effective before the beginning of
the next Plan Year.

4 

 

Article IV

ACCOUNTS. FUNDING AND VALUATION

	4.01	 	Establishment of Account
	 
	 	 	The Administrative Committee shall open and
maintain a separate Account for each
Participant. Such Account shall be credited
with all Deferrals for the Participant. In
addition, the Account of each Eligible
Director who has elected to convert his or
her Director Retirement Plan benefits to an
Account credit under this Plan shall be
credited on November 1, 2006, with the
amount approved by the Governance Committee
pursuant to its resolution adopted on
September 5, 2006. As soon as reasonably
possible after each Valuation Date, each
Participant shall be notified of the value
of his or her Account.

	4.02	 	Valuation of Account

	 	(a)	 	Interest shall be
credited to each
Participant’s
Account as of each
Valuation Date
equal to the
product of

	 	(1)	 	the amount credited
to the
Participant’s
Account as of the
last preceding
Valuation Date,
less any
distributions or
withdrawals and
plus one-half (1/2)
of Deferrals, if
any, since the last
preceding Valuation
Date, multiplied by
	 
	 	(2)	 	the applicable
interest rate;
provided, however,
that for the
December 31, 2006
Valuation Date,
interest shall be
based on the
Account balance on
November 1, 2006,
if any.

	 	(b)	 	On each Valuation Date, each Participant’s Account will
be credited with interest. The amount of interest will be
derived from the prime interest rate published in The
Wall Street Journal on the last business day coinciding
with or next preceding the Valuation Date. Any prime rate
up to 6% will be considered in full and 1/2 of any prime
rate over 6% will be considered; provided, however, that
effective October 1, 2007, the interest rate will not
exceed 120% of the long-term applicable federal rate
(compounded quarterly) as published by the Internal
Revenue Service for the applicable Plan year. The amount
credited will be a proration of the prime rate considered
taking into consideration the period of time elapsed
since the last Valuation Date (or since November 1, 2006,
in the case of the December 31, 2006 Valuation Date).

For example, if the Plan is valued quarterly and on March 31, the prime rate is 7%, the rate
credited will be (1/4 x 6%) + (1/4 x 1/2 x 1%) or 1.625%.

5 

 

Article V

PARTICIPANTS’ VESTED INTERESTS

	5.01	 	Vesting

Each Participant shall always be one hundred percent (100%) vested in his or her Account; provided,
however, that any amount credited to a Participant’s Account on November 1, 2006 pursuant to the
election described in Section 3.01 shall be forfeited if the Participant voluntarily resigns his or
her position as a Director before November 1, 2007 for any reason other than disability, as
determined pursuant to Section 409A(a)(2)(C) of the Code or in connection with a Change in Control.
A “Change in Control” means that 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 thereafter, individuals who were members of the Board of Directors of the Company
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 Company, 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 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.

6 

 

Article VI

DISTRIBUTION OF BENEFITS

	6.01	 	Distribution of Benefits
	 
	 	 	Except as provided in Article 6.03 below, a
Participant’s Account may not be distributed
to a Participant or his or her Beneficiary
before the date the Participant ceases to be
a member of the Board.
	 
	6.02	 	Retirement and Termination

	 	(a)	 	When a
Participant’s
status as a
Director
terminates, the
vested portion of
his or her Account
shall be
distributed, or
distribution shall
commence within 90
days following
termination of
Director status.
The amount in his
or her Account
shall be determined
as of the Valuation
Date that last
precedes the date
of distribution,
plus Deferrals and
less any
withdrawals or
distributions, if
any, for the period
from the last
preceding Valuation
to the date of
distribution.
	 
	 	(b)	 	The distribution
shall be made in
the form elected by
the Participant
under Section 6.04.
If the Participant
made no election at
the time specified
in Section 6.04,
his or her benefit
shall be paid as a
lump sum.

	6.03	 	Unforeseeable Emergency Withdrawals

	 	(a)	 	A Participant may
withdraw up to one
hundred percent
(100%) of the
amount in his or
her Deferral
Account in the
event of an
Unforeseeable
Emergency to the
extent provided in
this Section 6.03.
	 
	 	(b)	 	A Participant who
wishes to withdraw
any amount pursuant
to this Section
6.03 must submit,
on a form provided
by the
Administrative
Committee, a
written request by
the Participant
that states:

	 	(1)	 	The Unforeseeable Emergency for which the withdrawal is requested;
	 
	 	(2)	 	The amount needed to satisfy the financial need, which amount may
include any federal, state, or local income taxes or penalties
reasonably anticipated to result from the withdrawal;
	 
	 	(3)	 	A representation that the need cannot be satisfied in any of the
ways stated in the definition of Substantial Hardship;
	 
	 	(4)	 	The date the funds are required; and
	 
	 	(5)	 	Any other information the Administrative Committee deems necessary.

7 

 

	 	(c)	 	The Administrative Committee will determine if an Unforeseeable Emergency withdrawal
will be allowed by applying the standards set forth in the definition of Substantial
Hardship.
	 
	 	(d)	 	A withdrawal from a Participant’s Account under Section 6.03 shall be paid in a lump sum.

	6.04	 	Form of Distribution
	 
	 	 	A Participant may elect in writing, on a form prescribed by
the Administrative Committee, to have his or her benefit
(other than an Unforeseeable Emergency withdrawal) paid (a) as
a lump sum, or (b) in substantially equal annual installments
over a ten (10) year period. Such election must be made within
30 days following the date the Eligible Director becomes
eligible to participate in the Plan (i.e., the later of the
date of the Eligible Director’s election to the Board or
October 31, 2006). If the Participant fails to make such
election or later wishes to change such election, he or she
may make a later election, subject to the following
restrictions: (i) The later election must be made no later
than 12 months before the date payment is scheduled to be made
or commence; (ii) The later election must defer the payment
date for a minimum of five years from the previously scheduled
payment date; and (iii) The later election must not accelerate
the date of any payment or distribution. For purposes of the
Plan, installment payments shall be treated as a single
distribution under Code section 409A.

8 

 

Article VII

DEATH

	7.01	 	Death
	 
	 	 	If a Participant dies before distribution of his or her
Account has begun or been completed, the remaining portion of
the Participant’s Account shall constitute a Death Benefit and
shall be payable to the Participant’s Beneficiary in a lump
sum within six months after the date of death. The value of
the Participant’s Account shall be determined in accordance
with the rules set forth in Section 6.02. If the Participant
has not designated a Beneficiary or if the named Beneficiary
does not survive the Participant, payment shall be made to the
Participant’s surviving spouse, if any, or if none to the
Participant’s surviving children, if any, in equal shares or
if none to the Participant’s estate.

9 

 

Article VIII

THE ADMINISTRATIVE COMMITTEE

	8.01	 	Duties and Responsibility
	 
	 	 	The Committee shall administer the Plan and shall have full discretionary authority to construe
this Plan and to determine all questions of interpretation or policy in a manner not inconsistent
with the Plan and the Administrative Committee’s construction or determination in good faith
shall be final and conclusive and binding on all parties including but not limited to the Company
and any Participant or Beneficiary, except as otherwise provided by law. The Administrative
Committee may correct any defect, supply any omission, or reconcile any inconsistency in such
manner and to such extent as shall be deemed necessary or advisable to carry out the purpose of
the Plan, provided, however, that any interpretation or construction shall be done in a
nondiscriminatory manner and shall be consistent with the intent that the Plan shall be an
unfunded plan. The Administrative Committee shall have all powers necessary or appropriate to
accomplish its duties under this Plan.
	 
	 	 	The Administrative Committee shall be charged with the duties of the general administration of
the Plan, including but not limited to, the following:

	 	      (a)	 	To determine all questions relating to the eligibility of Directors to
participate in or remain a Participant hereunder;
	 
	 	      (b)	 	To maintain all the necessary records for the administration of the Plan;
	 
	 	      (c)	 	To interpret the provisions of the Plan and to make and publish such
rules for regulation of the Plan as are not inconsistent with the terms
hereof;
	 
	 	      (d)	 	To make any adjustments in the allocations, to Accounts under the Plan
necessary to comply with any provision of law; and
	 
	 	      (e)	 	To advise, counsel and assist any Participant regarding any rights,
benefits or elections available under the Plan.

The Administrative Committee shall also be responsible for preparing and filing such annual
disclosure reports as may be required by law.

Whenever it is determined by the Administrative Committee to be in the best interest of the
Plan and its Participants and Beneficiaries, the Administrative Committee may request such
variances, deferrals, extensions, or exemptions or make such elections for the Plan as may be
available under the law.

	8.02	 	Allocation and Delegation of Responsibilities
	 
	 	 	The Administrative
Committee may engage agents
to assist in carrying out
the Administrative
Committee’s functions
hereunder.

10 

 

	8.03	 	Expenses and Compensation
	 
	 	 	The expenses necessary to administer the Plan and the
expenses incurred by the Administrative Committee shall be
paid by the Company.
	 
	8.04	 	Information from Company
	 
	 	 	The Company shall supply full and timely information to
the Administrative Committee on all matters relating to
the compensation of all Participants, their continuous
regular employment, their retirement, death, disability or
termination of employment, and such other pertinent facts
as the Administrative Committee may require.
	 
	8.05	 	Administrative Committee; Signature
	 
	 	 	The signature of one member of the Administrative
Committee may be accepted by any interested party as
conclusive evidence that the Administrative Committee has
duly authorized the action therein set forth. No person
receiving documents or written instructions and acting in
good faith and in reliance thereon shall be obliged to
ascertain the validity of such action under the terms of
this Agreement. The Administrative Committee shall act by
a majority of its members at the time in office and such
action may be taken either by a vote at a meeting or in
writing without a meeting.

11 

 

Article IX

PARTICIPANTS’ RIGHTS

	9.01	 	Disclosures
	 
	 	 	The Administrative Committee shall furnish at least every
six (6) months each Participant or Beneficiary with a
written statement, based on the latest available
information, indicating the value of his or her Account.
Upon termination of his or her status as a Director, a
Participant is entitled to a written explanation of and
accounting for his or her Account.

	 
	 
	 	 	
Upon termination of his or her status as a Director, a
Participant is entitled to a written explanation of and
accounting for his or her Account.

	 
	9.02	 	 Filing a Claim for Benefits
	 
	 	 	A Participant or Beneficiary or the Company acting in his
or her behalf shall notify the Administrative Committee of
a claim for benefits under the Plan. Such request may be
in any form acceptable to the Administrative Committee and
shall set forth the basis of such claim and shall
authorize the Administrative Committee to conduct such
examinations as may be necessary to determine the validity
of the claim and to take such steps as may be necessary to
facilitate the payment of any benefits to which the
Participant or Beneficiary may be entitled under the terms
of the Plan.

	 
	9.03	 	 Denial of a Claim
	 
	 	 	Whenever a claim for benefits by any Participant or
Beneficiary has been denied, a written notice, prepared in
a manner calculated to be understood by the Participant or
Beneficiary must be provided, setting forth the specific
reasons for the denial and explaining the procedure for an
appeal and review of the decision by the Administrative
Committee.

	 
	9.04	 	 Limitation of Rights
	 
	 	 	Participation hereunder shall not grant any Participant
the right to be retained as a member of the Board of
Directors of the Company or any rights or interest other
than those specifically herein set forth.

12 

 

Article X

AMENDMENT AND TERMINATION

	10.01	 	Amendment or Termination
	 
	 	 	The Company, by action of the Board, may at any time and from
time to time amend or terminate this Plan in whole or in part
(including retroactively). The Company shall not have the right
to amend or terminate the Plan retroactively in such a manner
as to deprive any Participant or Beneficiary of any benefit to
which he or she was entitled under the Plan by reason of
Deferrals prior to the amendment or termination.
	 
	10.02	 	Procedure Upon Termination of the Plan
	 
	 	 	Upon complete termination of the Plan, Participants’ Accounts
shall be paid at the form and time determined pursuant to
Articles VI and VII; provided, however, that Participants’
Accounts may, in the discretion of the Board, be distributed
within the period beginning 12 months after the date the Plan
was terminated and ending 24 months after the date the Plan was
terminated (or, if earlier, pursuant to Articles VI or VII), in
which case the Board shall terminate all account balance
non-qualified deferred compensation plans with respect to all
Directors and shall not adopt a new account balance
non-qualified deferred compensation plan for Directors for at
least five years after the date the Plan was terminated;
provided, further, that the Board may terminate the Plan upon a
corporate dissolution of the Company that is taxed under
Section 331 of the Code or with the approval of a bankruptcy
court pursuant to 11 U.S.C. section 503(D)(1)(A), provided the
Participants’ Accounts are distributed and included in the
gross income of the Participants by the later of (i) the year
in which the Plan terminates, or (ii) the first calendar year
in which distribution of Participants’ Accounts is
administratively practicable; provided, further, that the
Board, in its discretion, may terminate the Plan 30 days prior
to or 12 months following a “change in the ownership or
effective control or a change in the ownership of a substantial
portion of the assets” of the Company, as defined in
regulations promulgated under Section 409A of the Code and
distribute the Accounts of the Participants within the 12-month
period following termination of the Plan, in which case the
Board shall terminate all account balance non-qualified
deferred compensation plans with respect to all Directors and
shall not adopt a new account balance non-qualified plan for
Directors for at least five years after the Plan was
terminated.

13

 

Article XI

MISCELLANEOUS

	11.01	 	 Execution of Receipts and Releases
	 
	 	 	Any payment to any Participant or Beneficiary, in accordance with the provisions of this
Plan, shall, to the extent thereof, be in full satisfaction of all claims hereunder against
the Plan, and the Administrative Committee may require such Participant or Beneficiary, as a
condition precedent to such payment, to execute a receipt and release therefor in such form
as the Administrative Committee shall determine.
	 
	11.02	 	Notice and Unclaimed Benefits
	 
	 	 	Each Participant and Beneficiary must file with the Company from time to time in writing his
or her post office address and each change of post office address. Any communication,
statement, or notice addressed to a Participant or Beneficiary at his or her last post office
address filed with the Company will be binding on the Participant and his or her Beneficiary
for all purposes of the Plan. Neither the Company nor the Administrative Committee shall be
obliged to search for or ascertain the whereabouts of any Participant or Beneficiary.
	 
	 	 	The Committee shall notify any Participant or Beneficiary when a distribution is required
under the Plan. The Committee may also request the Social Security Administration to notify
the Participant or Beneficiary in accordance with any procedures the Administration has
established for this purpose. In the event that the Participant or Beneficiary shall fail to
respond to any notice from the Committee, the amount in his or her Account shall be
forfeited.
	 
	11.03	 	Non-Alienation of Benefits
	 
	 	 	Except in the case of a qualified domestic relations order, as defined in Code § 414(p):

	 	(a) 	 	No Participant or Beneficiary, and no
creditor of a Participant or Beneficiary
shall have any right to assign, pledge,
sell, hypothecate, anticipate or in any way
create a lien upon his or her benefits
under the Plan by operation of law or
otherwise, and any attempt to do so shall
be void; nor shall any such benefits in any
manner be liable for or subject to the
debts, contracts, liabilities, engagements
or torts of the person entitled to such
benefits.
	 
	 	(b) 	 	No interest in the Plan shall be subject to
assignment or transfer or otherwise be
alienable, either by voluntary or
involuntary act or by operation of law or
equity, or subject to attachment,
execution, garnishment, sequestration, levy
or other seizure under any legal, equitable
or other process, or be liable in any way
for the debts or defaults of Participants
and Beneficiaries.

14

 

	11.04	 	Loans to Participants
	 
	 	 	A Participant may not receive a loan from the Plan of any portion of his or her Account.
	 
	11.05	 	Benefits Payable to Incompetents
	 
	 	 	Each individual receiving benefit payments under the Plan shall be conclusively
presumed to have been legally competent until the date upon which the Administrative
Committee shall have received written notice in the form and manner acceptable to it
that such individual is an incompetent for whom a guardian or other person legally
vested with his or her care shall have been appointed. From and after the date of
receipt of such notice by Administrative Committee, all future benefit payments to
which such individual is entitled under the Plan shall be payable to his or her
guardian or other person legally vested with his or her care, until such time as the
Administrative, Committee shall be furnished with evidence satisfactory to it that such
individual is legally competent.
	 
	11.06	 	Applicable Law
	 
	 	 	This Plan shall be governed and construed under the laws of the State of California.
	 
	11.07	 	Headings as Guide
	 
	 	 	The headings of this Plan are inserted for convenience of reference only and are not to
be considered in construction of the provisions hereof.
	 
	11.08	 	Pronouns
	 
	 	 	When necessary to the meaning hereof, either the masculine or the neuter pronoun shall
be deemed to include the masculine, the feminine, and the neuter, and the singular
shall be deemed to include the plural.
	 
	11.09	 	Reference to Laws
	 
	 	 	Any reference to any section or regulation under the Internal Revenue Code or to any
other statute or law shall be deemed to include any successor law of similar import.
	 
	11.10	 	Participant’s Rights Unsecured
	 
	 	 	The right of the Participant or his or her designated Beneficiary to receive a
distribution hereunder shall be an unsecured claim against the general assets of the
Corporation, and neither the Participant nor his or her designated beneficiary shall
have any rights in or against any amount credited to his or her Account or any other
specific assets of the Corporation. All amounts credited to an Account shall constitute
general assets of the Corporation and may be disposed of by the Corporation at such
time and for such purposes as it may deem appropriate. An Account may not be encumbered
or assigned by a Participant or any Beneficiary.

15

 

    
 Executed at this
10th day
of September, 2007.

	 	 	 	 	 
	 	COMPANY:

ABM INDUSTRIES INCORPORATED

 	 
	 	By  	/s/ Erin M. Andre
 	 
	 	 	    Erin M. Andre 	 
	 	 	    Senior Vice President — Human Resources 	 
	 

16

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