Document:

exv10w5

 

EXHIBIT 10.5

ABM INDUSTRIES INCORPORATED

RESTRICTED STOCK UNIT AGREEMENT FOR DIRECTORS

2006 EQUITY INCENTIVE PLAN

The Board of Directors of ABM Industries Incorporated has approved a grant to you (the “Grantee”)
of                      Restricted Stock Units (“RSUs”) pursuant to the ABM Industries Incorporated 2006 Equity
Incentive Plan (the “Plan”), as described below.

	 	 	 
	Grantee Name:
	 	 
	 

	 	 
	Grantee Address:
	 	 
	 

	 	 
	Number of RSUs Granted:
	 	 
	 

	 	 
	Date of Grant:
	 	 
	 

	 	 

Vesting Schedule: Provided you continue to provide services as a director of the Company through
the applicable vesting date, one-third of the RSUs will vest on the first anniversary date of this
grant; one-third of the RSUs will vest on the second anniversary date of this grant; and the
remaining RSUs will vest on the third anniversary date of this grant. The RSUs are subject to
earlier termination in certain circumstances, as set forth in the Plan and the Statement of Terms
and Conditions attached hereto.

By their signatures below, the Company and the Grantee agree that the RSUs are granted under and
governed by this Restricted Stock Unit Agreement and by the provisions of the Plan and the
Statement of Terms and Conditions attached hereto. The Plan and the Statement of Terms and
Conditions are incorporated herein by reference. Capitalized terms not defined herein shall have
the meanings ascribed to them in the Plan or in the Statement of Terms and Conditions, as
applicable.

The Grantee acknowledges receipt of a copy of the Plan, the Statement of Terms and Conditions and
the Plan Prospectus, represents that the Grantee has carefully read and is familiar with their
provisions, and hereby accepts the RSUs subject to all of their terms and conditions. The Grantee
acknowledges that there may be adverse tax consequences upon settlement of the RSUs or disposition
of the shares, if any, received in connection therewith and that Grantee should consult a tax
adviser prior to such settlement or disposition.

Please sign your name in the space provided below on this Restricted Stock Unit Agreement and
return an executed copy to Senior Vice President, Human Resources, ABM Industries Incorporated, 160
Pacific Ave., Ste. 222, San Francisco, CA 94111.

	 	 	 	 	 	 	 
	ABM INDUSTRIES INCORPORATED	 	GRANTEE
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Date:

	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 

ATTACHMENTS:

2006 Equity Incentive Plan

Statement of Terms and Conditions

Prospectusexv10w6

 

EXHIBIT 10.6

ABM INDUSTRIES INCORPORATED

STATEMENT OF TERMS AND CONDITIONS APPLICABLE

TO OPTIONS, RESTRICTED STOCK AND RESTRICTED STOCK UNITS

GRANTED TO DIRECTORS PURSUANT TO

THE 2006 EQUITY INCENTIVE PLAN

(As Adopted September 5, 2006)

I. INTRODUCTION

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

II. DEFINITIONS

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

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

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

C. “Retirement” means the voluntary termination of service by a non-employee Director at
(i) age 65 or older or (ii) age 55 or older at a time when age plus years of service equals or
exceeds 65.

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

III. OPTIONS

A. Option Notice and Agreement. An Option granted under the Plan shall be evidenced by an
Option Agreement setting forth the terms and conditions of the Option and the number of Shares
subject to the Option. Each Option Agreement shall incorporate by reference and be subject to this
Statement of Terms and Conditions and the terms and conditions of the Plan.

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

 

 

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

D. Vesting of Right to Exercise Options.

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

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

E. Termination of Service. If a Participant ceases to be a director of the Company due to
his or her Retirement, Disability or death during the Option Period, (i) in addition to any Shares
vested under the Option Agreement prior to the date of Retirement, Disability or death, the Option
shall vest in the number of Shares equal to one-third of the number of Shares originally subject to
the Option, multiplied by the number of whole months between the most recent anniversary date of
the Grant Date and the date of Retirement, Disability or death, and divided by 12.

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

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

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

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

c. if approved by the Company at the time of exercise, a “net exercise” pursuant to
which the Company will not require a payment of

2

 

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

d. if approved by the Company at the time of exercise, by tendering to the Company
or its authorized representative Shares which have been owned by the Participant
for at least six months prior to said tender, and having a fair market value, as
determined by the Company, equal to the Exercise Price; or

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

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

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

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

3

 

IV. RESTRICTED STOCK AND RESTRICTED STOCK UNITS

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

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

1. Restrictions. Until the restrictions imposed on any Restricted Stock Award or
Restricted Stock Unit Award shall lapse, shares of Restricted Stock or Restricted Stock
Units granted to a Participant: (a) shall not be sold, assigned, transferred, pledged,
hypothecated, or otherwise disposed of, and (b) shall, if the Participant’s service as a
director of the Company shall terminate for any reason (except as otherwise provided in the
Plan or in Sections IV.B.2 or V) be returned to the Company forthwith, and all the rights
of the Participant to such Shares or Restricted Stock Units shall immediately terminate. A
Participant shall not be permitted to sell, transfer, pledge, assign or encumber such
Restricted Stock or Restricted Stock Units, other than pursuant to a qualified domestic
relations order as defined in the Internal Revenue Code of 1986, as amended, or Title I of
the Employee Retirement Income Security Act. If a Participant ceases to be a director of
the Company (except as otherwise provided in the Plan or in Sections IV.B.2 or V prior to
the lapse of the restrictions imposed on Restricted Stock or a Restricted Stock Unit Award,
the unvested portion of the Restricted Stock or Restricted Stock Unit Award shall be
forfeited to the Company, and all the rights of the Participant to such Award shall
immediately terminate.

2. Termination of Service by Reason of Retirement, Disability or Death.
Notwithstanding any provision contained herein or in the Plan or the Restricted Stock
Agreement or Restricted Stock Unit Agreement to the contrary, if a Participant who has been
serving as a director of the Company since the Grant Date of a Restricted Stock Award or
Restricted Stock Unit Award ceases to be a director of the Company or as a result of
Retirement, Disability, or death, then the restrictions shall lapse as to the number of
Shares or Share Equivalents equal to: (i) one-third of the number of Shares or Share
Equivalents originally subject to the Award, multiplied by (ii) the number of whole months
between the most recent anniversary date of the Grant Date and the date of Retirement,
Disability or death, and divided by 12.

4

 

C. Dividends or Dividend Equivalents. Upon dividends being paid on outstanding shares of
ABM common stock, dividends shall be paid with respect to Restricted Stock during the Restriction
Period and shall be converted to additional shares of Restricted Stock at the Fair Market Value on
the date of payment, which shall be subject to the same restrictions as the original Award for the
duration of the Restricted Period. Upon dividends being paid on outstanding shares of ABM common
stock, dividend equivalents shall be credited in respect of Restricted Stock Units, which shall be
converted into additional Restricted Stock Units at the Fair Market Value on the date of payment,
which will be subject to all of the terms and conditions of the underlying Restricted Stock Unit
Award, including the same vesting restrictions as the underlying Award.

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

E. Time of Payment of Restricted Stock Units. Upon the lapse of the restriction imposed on
Restricted Stock Unit Awards, all Restricted Stock Units that were not forfeited pursuant to
Sections V.2.A or V shall be paid to the Participant as soon as reasonably practicable after the
restrictions lapse but not later than two and one-half months following the end of the calendar
year in which the restrictions lapse. Payment shall be made in Shares.

V. CHANGE IN CONTROL

In the event of a Change in Control, all Options that are outstanding at the time of such Change in
Control shall become 100% vested and immediately exercisable, all restrictions with respect to
outstanding shares of Restricted Stock shall lapse, such Shares shall become 100% vested, and all
outstanding Restricted Stock Unit Awards shall become 100% vested and immediately payable.

VI. MISCELLANEOUS

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

B. Information Notification. Any information required to be given under the terms of an
Award Agreement shall be addressed to the Company in care of Senior Vice President, Human
Resources, 160 Pacific Ave., Suite 222, San Francisco, CA 94111, and any notice to be given to a
Participant shall be addressed to him or her at the address indicated beneath his or her name on
the Award Agreement or such other address as either party may designate in writing to the other.
Any such notice shall be deemed to have been duly given when enclosed in a properly sealed envelope
or wrapper addressed as aforesaid,

5

 

registered or certified and deposited (postage or registration or certification fee prepaid) in a
post office or branch post office regularly maintained by the United States.

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

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

E. Tax Payments. Each Participant shall agree to satisfy any applicable federal, state or
local income taxes associated with an Award.

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

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

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]