Document:

exv10w17

 

EXHIBIT 10.17

ABM

Executive Retiree

Healthcare and Dental Plan

Objective: To provide post-employment access to ABM group healthcare and dental plans
to certain former ABM Executive Group* employees and their eligible dependents.

Plan: The healthcare and dental plans offered to those eligible will be the same or similar
to those primary healthcare plans offered to active, staff / management employees.

Eligibility: Former members of the “ABM Executive Group” (as defined below) who were
recipients of healthcare benefits from any ABM sponsored group healthcare plan on October 31, 2004
and thereafter, who at separation from active employment (a) were at least 55 years of age, (b) had
at least 10 years of combined service with ABM Industries or any one of its subsidiaries, including
prior service with an acquired business, and (c) had not yet reached their 75th
birthday.

Premium: Each Plan participant will pay the full monthly premium for that coverage type
elected, by the first day of the coverage month. There shall be no contribution to your premium by
the Company.

Coverage: The former Executive may choose healthcare with or without dental coverage.
Coverage will commence immediately following separation from active employment with ABM or upon the
termination of coverage in an ABM healthcare plan. Participation must be continuous. The coverage
offered will be secondary coverage in the case of Medicare-eligible participants.

Termination of Coverage: Coverage for the former Executive and all covered dependents will
terminate at the end of the month following the earlier of (a) ten (10) years following Executive’s
termination of active employment, (b) the Executive’s 75th birthday, (c) the death of
the former employee, or (d) the failure to pay premium within 30 days following the due date.

	*	 	The “ABM Executive Group” shall be defined to include all officers of ABM Industries, Inc (the “Company”), all Company
subsidiary Presidents, Executive Vice Presidents and Senior Vice
Presidents, and all Regional Vice Presidents of the Company’s
Janitorial subsidiaries.

 

 

Administration of the Plan:

	 	•  	Premium payment must be remitted monthly by check to the ABM Industries’ Employee
Benefits Department, to be received by the 1st day of the coverage month.
	 
	 	•  	The Company, from time to time, may adjust participant’s premium levels as necessary,
change the provisions of the plan and change the carrier(s) and network providers.
	 
	 	•  	Dependent eligibility will be determined on the same basis on which dependent
eligibility is determined within the Executive’s state of residence in the then current
ABM healthcare plan for all other active employees.
	 
	 	•  	Dependents of the former Executive will not be permitted to participate in the Plan
unless the Executive is also participating.
	 
	 	•  	Dental coverage cannot be elected without healthcare coverage.
	 
	 	•  	Coverage must be continuous. Participants cannot opt out and back into the plan.

Notice: The Company reserves the right to modify, amend or terminate this Plan at any time.

	*	 	The “ABM Executive Group” shall be defined to include all officers of ABM Industries, Inc (the “Company”), all Company
subsidiary Presidents, Executive Vice Presidents and Senior Vice
Presidents, and all Regional Vice Presidents of the Company’s
Janitorial subsidiaries.exv10w23

 

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EXHIBIT 10.23

CORPORATE EXECUTIVE EMPLOYMENT AGREEMENT

THIS CORPORATE EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is made effective as of April 1, 2004,
by and between W.T. (Terry) Petty (“Executive”) and ABM Industries Incorporated (“Company”) for
itself and on behalf of its subsidiary corporations as applicable herein.

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

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

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

WHEREAS, Executive wishes to, or has been and desires to remain employed by Company, and to utilize
such proprietary trade secrets, other confidential business information and goodwill, and

WHEREAS, Company has disclosed or will disclose to Executive such proprietary trade secrets and
other confidential business information which Executive will utilize in the performance of this
Agreement;

NOW THEREFORE, Executive and Company agree as follows:

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

	B.  	TITLE: Executive’s title shall be Executive Vice President and Chief Operating Officer of
Company, subject to modification as determined by the Company in its sole discretion.

	C.  	DUTIES & RESPONSIBILITIES: Executive shall be expected to assume and perform such executive
or managerial duties and responsibilities as are assigned from time-to-time by the Company’s
Chief Executive Officer or his or her designee, to whom Executive shall report and be
accountable.

	D.  	TERM OF AGREEMENT: Employment hereunder shall be deemed effective as of April 1, 2004, for a
term of two years and seven months ending October 31, 2006 (“Initial Term”), unless sooner
terminated pursuant to Paragraph O hereof, or later extended pursuant to Paragraph N hereof
(“Extended Term”).

	E.  	PRINCIPAL OFFICE: During the Initial Term and any Extended Term, as applicable, of this
Agreement, Executive shall be based at a Company office located in San Francisco in the state
of California (“State of Employment”), or such other location as shall be mutually agreed upon
by Company and Executive. Executive expressly agrees as a condition of his continued
employment by Company, to relocate his principal residence to the San Francisco Bay area on or
before August 1, 2004.

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

	 	1.  	SALARY: A salary paid in equal installments of no less frequently than
semi-monthly at the annual rate set forth in Paragraph X.1 hereof.
	 
	 	2.  	BONUS: A bonus or other incentive or contingent compensation, if any, pursuant
to Paragraph X.2 hereof.

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	 	3.  	FRINGE BENEFITS: Executive shall receive the then current fringe benefits
generally provided by Company to all of its Executives. Such benefits may include but
not be limited to the use of a Company-leased car or a car allowance, group health
benefits, long-term disability benefits, group life insurance, sick leave and vacation.
Each of these fringe benefits is subject to the applicable Company policy at all
times. Executive expressly agrees that should he or she terminate employment with
Company for the purpose of being re-employed by a Company affiliate, he or she shall
“carry-over” any previously accrued but unused vacation balance to the books of the
affiliate.
	 
	 	   	Company reserves the right to add, increase, reduce or eliminate any fringe benefit at
any time, but no such benefit or benefits shall be reduced or eliminated as to
Executive unless generally reduced or eliminated as to comparable executives within
the Company.
	 
	 	4.  	LIMIT: To the extent that any compensation to be paid to Executive under this
Agreement would be non-deductible by the Company as a result of the $1 million
compensation limit provisions of Section 162(m) of the Internal Revenue Code of 1986,
as amended (the “Code”), then such compensation shall not be paid out to Executive at
that time but shall instead be deferred and paid without interest to Executive (subject
to applicable withholding and only to the extent that payment of such deferred amount
is fully deductible under Code Section 162(m)) in the first month of the taxable year
following the taxable year of deferral. If the subsequent payment of the deferral is
itself subject to further deferral pursuant to this Paragraph F.4, then such further
deferred amount shall instead be paid in the first month of the next following taxable
year.

	G.  	PAYMENT OR REIMBURSEMENT OF BUSINESS EXPENSES: Company shall pay directly or reimburse
Executive for reasonable business expenses of Company incurred by Executive in connection with
Company business, and approved in writing by the person(s) to whom Executive reports pursuant
to Paragraph C hereof, upon presentation to such person(s) by Executive within sixty (60) days
after incurring such expense of an itemized request for payment including the date, nature,
recipient, purpose and amount of each such expense, accompanied by receipts for all such
expenses in accordance with Company policy.

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

	 	1.  	GOOD FAITH: Executive shall not act in any way contrary to the best interest
of Company.
	 
	 	   	Executive agrees that if he or she is approached by any person to discuss a possible
acquisition or other transaction that could result in a change of control of the
Company, Executive will immediately advise the Company’s General Counsel and Chair of
the Nominating, Governance and Succession Committee of the Board of Directors.
	 
	 	2.  	BEST EFFORTS: During all full-time employment hereunder, Executive shall
devote full working time and attention to Company. Notwithstanding any other agreement
to the contrary, Executive shall not at any time be directly or indirectly employed by,
own, operate, assist or otherwise be involved, invested or associated in any business
that is similar or competitive to any business of Company; except that Executive may
own up to five percent (5%) of such publicly-held business(es), provided that
Executive: (a) shall give Company notice(s) of any such ownership exceeding two
percent (2%), in accordance with Paragraph W hereof, and (b) shall not at any time be
directly or indirectly employed by or operate, assist, or otherwise be involved or
associated with any such business(es).
	 
	 	3.  	VERACITY: Executive shall make no claims or promises to any employee,
supplier, contractor, customer or sales prospect of Company that are unauthorized by
Company or are in any way untrue.

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	 	4.  	DRIVER’S LICENSE: Executive shall have a driver’s permit issued by Company and
shall carry a valid driver’s license issued by his or her state of domicile or the
State of Employment hereunder whenever Executive is driving any motor vehicle in
connection with Company business. Executive
agrees to immediately notify Company in writing if Executive’s driver’s license is
lost, expired, restricted, suspended or revoked for any reason whatsoever.
	 
	 	5.  	CODE OF CONDUCT: Executive agrees to fully comply with and annually
execute a certification of compliance with the Company’s Code of Business Conduct and
Ethics.

	I.  	NO CONFLICT: Executive represents to Company that Executive is not bound by any contract
with a previous employer or with any other business that might prevent Executive from entering
into this Agreement. Executive further represents that he or she is not bound by any other
contracts or covenants that in any way restrict or limit Executive’s activities in relation to
his or her employment with Company that have not been fully disclosed to Company prior to the
signing of this Agreement.
	 
	J.  	COMPANY PROPERTY: Company shall, from time to time, entrust to the care, custody and control
of Executive certain of Company’s property, such as motor vehicles, equipment, supplies,
passwords and documents. Such documents may include, but shall not be limited to customer
lists, financial statements, cost data, price lists, invoices, forms, electronic files and
media, mailing lists, contracts, reports, manuals, personnel files or directories,
correspondence, business cards, copies or notes made from Company documents and documents
compiled or prepared by Executive for Executive’s use in connection with Company business.
Executive specifically acknowledges that all such items, including passwords and documents,
are the property of Company, notwithstanding their preparation, care, custody, control or
possession by Executive at any time(s) whatsoever.
	 
	K.  	GOODWILL & PROPRIETARY INFORMATION: In connection with Executive’s employment hereunder:

	 	1.  	Executive agrees to utilize and further Company’s goodwill (“Goodwill”) among
its customers, sales prospects and employees, and acknowledges that Company may
disclose to Executive and Executive may disclose to Company, proprietary trade secrets
and other confidential information not in the public domain (“Proprietary Information”)
including but not limited to specific customer data such as: (a) the identity of
Company’s customers and sales prospects, (b) the nature, extent, frequency,
methodology, cost, price and profit associated with its services and products purchased
from Company, (c) any particular needs or preferences regarding its service or supply
requirements, (d) the names, office hours, telephone numbers and street addresses of
its purchasing agents or other buyers, (e) its billing procedures, (f) its credit
limits and payment practices, and (g) its organization structure.
	 
	 	2.  	Executive agrees that such Proprietary Information and Goodwill have unique
value to Company, are not generally known or readily available to Company’s
competitors, and could only be developed by others after investing significant time and
money. Company would not make such Proprietary Information and Goodwill available to
Executive unless Company is assured that all such Proprietary Information and Goodwill
will be held in trust and confidence by Executive. Executive hereby acknowledges that
to use this Proprietary Information and Goodwill except for the benefit of Company
would be a breach of such trust and confidence and in violation of Executive’s common
law Duty of Loyalty to the Company.

	L.  	RESTRICTIVE COVENANTS: In recognition of Paragraph K, above, Executive hereby agrees that
during the Initial Term and the Extended Term, if any, of this Agreement, and thereafter as
specifically agreed herein:

	 	1.  	Except in the proper performance of this Agreement, Executive shall at no time
directly or indirectly solicit or otherwise encourage or arrange for any employee to
terminate employment with Company while employed by the Company and for a period of one
(1) year following Executive’s termination of employment.

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	 	2.  	Except in the proper performance of this Agreement, Executive shall not
directly or indirectly disclose or deliver to any other person or business, any
Proprietary Information obtained directly or indirectly by Executive from, or for,
Company.
	 
	 	3.  	Executive agrees that at all times after the termination of this Agreement,
Executive shall not seek, solicit, divert, take away, obtain or accept the patronage of
any customer or sales prospect of Company through the direct or indirect use of any
Proprietary Information of Company, or by any other unfair or unlawful business
practice.
	 
	 	4.  	Executive agrees that for a reasonable time after the termination of this
Agreement, which Executive and Company hereby agree to be one (1) year, Executive shall
not directly or indirectly, for Executive or for any other person or business, seek,
solicit, divert, take away, obtain or accept any customer account or sales prospect
with which Executive had direct business involvement on behalf of Company within the
one (1) year period prior to termination of this Agreement.
	 
	 	5.  	Nothing in this Agreement shall be binding upon the parties to the extent it is
void or unenforceable for any reason in the State of Employment, including, without
limitation, as a result of any law regulating competition or proscribing unlawful
business practices.

	M.  	MODIFICATION OF EMPLOYMENT: At any time during the then current Initial or Extended Term, as
applicable, of this Agreement, a majority of the Board of Directors of Company shall have the
absolute right, with or without cause and without terminating this Agreement or Executive’s
employment hereunder, to modify the nature of Executive’s employment for the remainder of the
then current Initial or Extended Term, as applicable, of this Agreement, from that of a
full-time employee to that of a part-time employee (“Modification Period”). The Modification
Period shall commence immediately upon Company giving Executive written notice of such change.

	 	1.  	Upon commencement of the Modification Period: (a) Executive shall immediately
resign as a full-time employee of Company and as an officer and/or director of Company
and of any Company subsidiaries, as applicable, (b) Executive shall promptly return all
Company property in Executive’s possession to Company, including but not limited to any
motor vehicles, equipment, supplies and documents set forth in Paragraph J hereof, and
(c) Company shall pay Executive when due all previously earned and vested but as yet
unpaid, salary, prorated Target Bonus as determined pursuant to Paragraph X.2. or other
contingent compensation, reimbursement of business expenses and fringe benefits.
	 
	 	2.  	During the Modification Period: (a) Company shall continue to pay Executive’s
monthly salary pursuant to Paragraph F.1 hereof, and to the extent available under the
Company’s group insurance policies, continue to provide Executive with the same group
health and life insurance (subject to Executive continuing to pay the employee portion
of any such premium) to which Executive would be entitled as a full-time employee, with
the understanding and agreement that such monthly salary and group insurance, if
available, shall constitute the full extent of Company’s obligation to compensate
Executive, (b) Executive shall not be eligible or entitled to receive or participate in
any bonus or fringe benefits other than the aforementioned group insurance, if
available, (c) in the alternative, Executive may exercise rights under COBRA to obtain
medical insurance coverage as may be available to Executive, (d) Executive shall be
deemed a part-time employee and not a full-time employee of Company, (e) Executive
shall provide Company with such occasional executive or managerial services as
reasonably requested by the person(s) to whom Executive reports pursuant to Paragraph
C hereof, except that failure to render such services by reason of any physical or
mental illness or disability other than Total Disability or death as set forth in
Paragraph O.2 hereof, or unavailability because of absence from the State of Employment
hereunder, shall not affect Executive’s right to receive such salary and (f) Company
shall pay directly or reimburse Executive in accordance with the provisions of
Paragraph G hereof for

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	 	   	reasonable business expenses of Company incurred by Executive in
connection with such services requested by the person(s) to whom Executive reports
pursuant to Paragraph C hereof.
	 
	 	3.  	The Modification Period shall continue until the earlier of: (a) Total
Disability or death as set forth in Paragraph O.2 hereof, (b) termination of this
Agreement by Company for “just cause” as hereinafter defined, (c) Executive accepting
employment or receiving any other compensation from operating, assisting or otherwise
being involved, invested or associated with any business that is
similar to or competitive with any business in which Company is engaged on the
commencement date of the Modification Period, or (d) expiration of the then current
Term of this Agreement.

	N.  	EXTENSION OF EMPLOYMENT:

	 	1.  	Absent at least ninety (90) days written Notice of Termination of Employment or
Notice of Non-Renewal from Company to Executive prior to expiration of the then current
Initial or Extended Term, as applicable, of this Agreement, employment hereunder shall
continue for an Extended Term (or another Extended Term, as applicable) of one year, by
which Executive and Company intend that all terms and conditions of this Agreement
shall remain in full force and effect for another twelve (12) months, except that the
base salary specified in Paragraph X.1.a may be increased as set forth in Paragraph
X.1.b during the Extended Term.
	 
	 	2.  	In the event that Notice of Non-Renewal is given ninety (90) days prior to the
expiration of the then Initial or Extended Term, as applicable, of this Agreement,
employment shall continue on an “at will” basis following the expiration of such
Initial or Extended Term. In such event, Company shall have the right to change the
terms and conditions of Executive’s employment, including but not limited to
Executive’s position and/or compensation.

	O.  	TERMINATION OF EMPLOYMENT:

	1.	a.	Termination Upon Expiration Of Term. Subject to at least ninety (90) days
prior written Notice of Termination of Employment, Executive’s employment shall
terminate, with or without cause, at the expiration of the then current Initial or
Extended Term. Company has the option, without terminating this Agreement,of placing
Executive on a leave of absence at the full compensation set forth in Paragraph F
hereof, for any or all of such notice period.
	 
	 	b.  	Termination For Cause. Except as provided in Paragraph O.1.a, the
Company shall have the right to terminate Executive’s employment hereunder at
any time during the then current Initial or Extended Term, as applicable, of
this Agreement, without notice subject only to a good faith determination by a
majority of the Board of Directors of Company of “just cause.” “Just cause”
includes but is not limited to any (i) theft or dishonesty (ii) more than one
instance of neglect or failure to perform employment duties, (iii) more than one
instance of inability or unwillingness to perform employment duties, (iv)
insubordination, (v) abuse of alcohol or other drugs or substances affecting
Executive’s performance of his or her employment duties, (vi) material and
willful breach of this Agreement; (vii) other misconduct, unethical or unlawful
activity, or for (vii) a conviction of or plea of “guilty” or “no contest” to a
felony under the laws of the United States or any state thereof.
	 
	 	c.  	Voluntary Termination By Executive. At any time during
the then current Initial or Extended Term, as applicable, of this Agreement and
with or without cause, Executive may terminate employment hereunder by giving
Company ninety (90) days prior written notice.

	 	2.  	Employment hereunder shall automatically terminate upon the total disability
(“Total Disability”) or death of Executive. Total Disability shall be deemed to occur
on the ninetieth (90th) consecutive or non-consecutive calendar day within any twelve
(12) month period that Executive is unable to

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	 	   	perform the duties set forth in Paragraph
C hereof because of any physical or mental illness or disability. Company shall pay
when due to Executive or, upon death, Executive’s designated beneficiary or estate, as
applicable, all prorated salary, prorated Target Bonus as determined pursuant to
Paragraph X.2. or other contingent compensation, reimbursement of business expenses and
fringe benefits which would have otherwise been payable to Executive under this
Agreement, through the end of the month in which Total Disability or death occurs.
	 
	 	3.  	Upon termination of employment hereunder, Executive shall immediately resign as
an employee of Company and as an officer and/or director of Company and of any Company
subsidiaries, as
applicable. Executive shall promptly return and release all Company property in
Executive’s possession to Company, including but not limited to, any motor vehicles,
equipment, supplies, passwords and documents set forth in Paragraph J hereof.
Company shall pay Executive, when due, all previously earned and vested but as yet
unpaid, salary, prorated Target Bonus, as determined pursuant to Paragraph X.2. or
other contingent compensation, reimbursement of business expenses and fringe
benefits.

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

	Q.  	ARBITRATION CLAUSE:

	 	1.  	Except for the interpretation and enforcement of injunctive relief pursuant to
Paragraph R hereof (which shall be subject to litigation in any court having proper
jurisdiction), any claim or dispute related to or arising from this Agreement (whether
based in contract or tort, in law or equity) including, but not limited to, claims or
disputes between Executive and Company or its directors, officers, employees and agents
regarding Executive’s employment or termination of employment hereunder, or any other
business of Company, shall be resolved by a neutral arbitrator agreed upon by both
parties, through mandatory, final, binding arbitration in accordance with the
procedural and discovery rules of the American Arbitration Association.
	 
	 	2.  	The cost of such arbitration shall be borne by the Company. Any such
arbitration must be requested in writing within one (1) year from the date the party
initiating the arbitration knew or should have known about the claim or dispute, or all
claims arising from that dispute are forever waived. Any such arbitration (or court
proceeding as applicable hereunder) shall be held in the city and/or county of
employment hereunder. Judgment upon the award rendered through such arbitration may be
entered and enforced in any court having proper jurisdiction.

	R.  	REMEDIES & DAMAGES:

	 	1.  	The parties agree that, in the event of a material breach or threatened
material breach of Paragraphs K and/or L hereof, the damage or imminent damage to the
value of Company’s business shall be impractical and/or impossible to estimate or
ascertain, and therefore any remedy at law or in damages shall be inadequate.
Accordingly, the parties hereto agree that Company shall be entitled to the immediate
issuance of a restraining order or an injunction against Executive in the event of such
breach or threatened breach, in addition to any other relief available to Company
pursuant to this Agreement or under law.
	 
	 	2.  	Executive agrees that damages resulting from any such breach which involves any
customer of Company shall be the actual damages according to proof, as determined
by an arbitrator pursuant to Paragraph Q, above.
	 
	 	3.  	To the full extent permitted under the laws of the State of Employment
hereunder, Executive authorizes Company to withhold from any severance payments
otherwise due to Executive and from any other funds (other than wages) held for
Executive’s benefit by Company, any damages or

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	 	   	losses sustained by Company as a result
of any material breach or other material violation of this Agreement by Executive,
pending arbitration between the parties as provided for herein.

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

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

	U.  	SURVIVAL: All terms and conditions of this Agreement which by reasonable implication are
meant to survive the termination of this Agreement, including but not limited to the
Restrictive Covenants and Arbitration Clause herein, shall remain in full force and effect
after the termination of this Agreement.

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

	W.  	NOTICES:

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

	 	 	 	 	 
	

	 	Executive:
	 	W.T. (Terry) Petty
	

	 	 	 	11110 Cripplegate Road
	

	 	 	 	Potomac, MD 20854
	 
	 	 	 	 
	

	 	Company:
	 	ABM Industries Incorporated
	

	 	 	 	160 Pacific Avenue, Suite 222
	

	 	 	 	San Francisco, CA 94111
	

	 	 	 	Attention: Chief Executive Officer
	 
	 	 	 	 
	

	 	Copy:
	 	ABM Industries Incorporated
	

	 	 	 	160 Pacific Avenue, Suite 222
	

	 	 	 	San Francisco, CA 94111
	

	 	 	 	Attention: Chief Employment Counsel

	 	2.  	Any such Notice shall be assumed to have been received when delivered in
person, or forty-eight (48) hours after being sent in the manner specified above.

	X.  	SPECIAL PROVISIONS:

	 	1.  	BASE SALARY:

	 	a.  	Four Hundred Fifty Thousand Dollars ($450,000) per year effective
April 1, 2004 through October 31, 2004 at the monthly rate of $37,500 payable
semi-monthly.

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	 	b.  	Effective November 1, 2004 and at the beginning of each Fiscal
Year thereafter, Executive shall be eligible, at the sole discretion of the
Company, to receive a merit increase based on Executive’s job performance.
	 
	 	c.  	At the sole discretion of the Board of Directors of the Company
(the “Board”), the Company may grant a salary adjustment at any time for reasons
deemed appropriate by the Board, including but not limited to a change in
Executive’s duties resulting in a material increase in responsibility.

	 	2.  	BONUS: Subject to pro-ration in the event of modification or termination of
employment hereunder and further subject to the requirement set forth under
Subparagraph b.v., below, Executive shall be entitled to participate in the Company’s
incentive compensation plan which provides for a performance-based bonus (“Bonus”)
contingent on the achievement of corporate objectives for each Fiscal Year, or
partial Fiscal Year, of employment hereunder during the Initial term, and during the
Extended Term, if any, of this Agreement, as follows:

	 	a.  	Executive shall be entitled to a guaranteed bonus in the amount of $131,250 for
the remaining period of Company’s Fiscal Year, from April 1, 2004 through October 31, 2004.
Such bonus shall be paid as soon as administratively feasible, but no later than
seventy-five (75) days after the end of the Company’s Fiscal Year.
	 
	 	b.  	A target bonus for the Fiscal Year beginning November 1, 2004 and
each subsequent Fiscal Year thereafter (“Target Bonus”) shall be established
equal to 50% of the Executive’s Base Salary for the Fiscal Year. Executive’s
Target Bonus shall be further subject to a Performance Bonus Modifier adjustment
of 0% to 150% of Target Bonus to determine Executive’s Actual Bonus. Such
adjustment shall be based on the Performance Criteria for each such Fiscal Year,
as recommended by the person(s) to whom Executive reports and reviewed and
approved by the Committee. A draft of the Performance Criteria for the Fiscal
Year beginning November 1, 2004 is attached as Exhibit I. Performance Criteria
for each year will be finalized and delivered to Executive within 30 days after
the beginning of each Fiscal Year.

	 	i.  	At any time the Committee reserves the right to further
adjust the Performance Criteria in the event of a Significant Transaction (as
defined below) during a Fiscal Year and/or for any unanticipated and material
events that are beyond the control of the Company, including but not limited
to acts of god, nature, war or terrorism, or changes in the rules for
financial reporting set forth by the Financial Accounting Standards Board,
the Securities and Exchange Commission, and/or the New York Stock Exchange or
for any other reason which the Committee determines, in good faith, to be
appropriate. For purposes of this Agreement, the term “Significant
Transaction” shall mean the Company’s acquisition or disposition of a
business or assets which the Company is required to report under Item 2 of
the SEC Form 8-K.
	 
	 	ii.  	The Company shall pay Executive the Actual Bonus for the
Fiscal Year following completion of the audit of the Company’s financial
statements and approval by the Committee, but no later than seventy-five (75)
days after the end of each Fiscal Year.
The Company in its sole discretion may pay any Actual Bonus or prorated Target
Bonus earlier. In the event of Modification or Termination of employment
hereunder, the Company shall pay Executive the prorated portion of the Target
Bonus based on the fraction of the Fiscal Year that has been completed prior
to the date of Modification or Termination.
	 
	 	iii.  	Absent bad faith or material error, the conclusions of the
Committee with respect to the Performance Criteria or the Actual Bonus, shall
be final and binding upon Executive and Company.

	Corp Exec Officer	 	INITIALS: EXECUTIVE
WTP COMPANY DMD

 

Page 9 of 11

	 	iv.  	Executive’s maximum Actual Bonus for each Fiscal Year shall
be one hundred percent (100%) of the Base Salary as determined pursuant to
this Agreement. In the event of modification or termination of employment
hereunder, Executive’s prorated Target Bonus shall not exceed such percent of
prorated Base Salary.
	 
	 	v.  	Notwithstanding the foregoing, no Bonus for any Fiscal Year
of the Company shall be payable unless the Company’s EPS for the Fiscal Year
then ending is equal to or greater than eighty percent (80%) of the Company’s
EPS for the previous Fiscal Year of the Company, in each case excluding gains
and losses from sales of discontinued operations and any income included in
the Company’s receipt of insurance proceeds or other compensation or damages
due to the Company’s loss of property, business or profits as a result of the
destruction of the World Trade Center on September 11, 2001.

	 	c.  	Nothing contained in this Agreement shall entitle Executive to
receive a bonus or other incentive or contingent compensation from Company based
on any sales or profits made by
Company after termination of the Initial or Extended Term of this Agreement or of
employment hereunder.
	 
	 	d.  	Notwithstanding any other provision hereof, the Committee may,
prior to the beginning of any Fiscal Year, approve and notify the Executive of a
modification to the Target Bonus or the Performance Bonus Modifier (either
higher or lower), based on such performance and financial measures and other
factors as the Committee shall determine in its sole discretion. The Committee’s
decision in this regard shall be deemed final and binding on Executive
regardless of the amount of Target or Actual Bonus otherwise calculated pursuant
to the foregoing provisions. In addition, the Committee reserves the option at
any time to grant a discretionary incentive bonus, which shall not be subject to
the maximum Bonus provisions described in paragraph X.2.b.iv. above.

	Y.  	SCOPE OF CERTAIN PROVISIONS: All references to Company in Paragraphs H, J, K, L, O.3 and R in
this Agreement shall include Company, and its subsidiary corporations and other Company
affiliates.

	Z.  	ENTIRE AGREEMENT: Unless otherwise specified herein, this Agreement and Executive’s Offer
Letter dated March 8, 2004 set forth every contract, understanding and arrangement as to the
employment relationship between Executive and Company, and may only be changed by a written
amendment signed by both Executive and Company.

	 	1.  	The parties intend that this Agreement speak for itself, and that no evidence
with respect to its terms and conditions other than this Agreement itself may be
introduced in any arbitration or judicial proceeding to interpret or enforce this
Agreement.
	 
	 	2.  	It is specifically understood and accepted that this Agreement and the
above-referenced Offer Letter supersede all oral and written employment agreements
between Executive and Company prior to the date hereof, as well as all conflicting
provisions of Company’s Guidelines for Corporate Approval and its Human Resources
Manual, including but not limited to the termination, discipline and discharge
provisions contained therein.
	 
	 	3.  	This Agreement may not be amended except in a writing signed by the Executive
and Chief Executive Officer and approved by the Company’s Board of Directors.

FULL KNOWLEDGE & UNDERSTANDING: Executive and Company hereby acknowledge that they have carefully
read and fully understand all terms and conditions of this Agreement, that they have been given an
opportunity to review all aspects of this Agreement with an attorney if they so choose, and that
they are voluntarily entering into this Agreement with full knowledge of the benefits and burdens,
and the risks and rewards, contained herein.

	Corp Exec Officer	 	INITIALS: EXECUTIVE
WTP COMPANY DMD

 

Page 10 of 11

IN WITNESS WHEREOF, Executive and an officer and Director of the Company have executed this
Agreement as of the date set forth above:

	 	 	 	 	 	 	 	 	 
	

	 	Executive:
	 	Signature:
	 	/s/ W. T. Petty	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	Date:
	 	4/1/04	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	Company:
	 	 	 	ABM Industries Incorporated	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	Date:
	 	5/3/04	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 
	

	 	 	 	Signature:
	 	/s/ Henrik C. Slipsager	 	 
	

	 	 	 	 	 	

 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	Title:
	 	CEO	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	Signature:
	 	/s/ Donna M. Dell	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Sr. V.P. of Human Resources	 	 
	

	 	 	 	 	 	 	 	 

	Corp Exec Officer	 	INITIALS: EXECUTIVE
WTP COMPANY DMD

 

Page 11 of 11

Exhibit I

Name of Executive:                 W.T. (Terry) Petty               

2004 EXECUTIVE PERFORMANCE BONUS MODIFIERS

RATINGS AND CALCULATION SHEET

ABM EXECUTIVE OFFICERS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Circle one rating in each category	 	Unsatisfactory	 	Needs Improvement	 	Meets Requirements	 	Exceeds Requirements	 	Superior Performance
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	COMPANY OBJECTIVES

	 	 	1	 	 	 	2	 	 	 	3	 	 	 	4	 	 	 	5	 	 	 	6	 	 	 	7	 	 	 	8	 	 	 	9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I. FINANCIAL RESULTS AND
BUDGETING
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II. INTERNAL CONTROLS AND
PROCEDURES

	 	 	1	 	 	 	2	 	 	 	3	 	 	 	4	 	 	 	5	 	 	 	6	 	 	 	7	 	 	 	8	 	 	 	9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	III. DIVISIONAL OPERATIONS
PERSONAL OBJECTIVES

	 	 	1	 	 	 	2	 	 	 	3	 	 	 	4	 	 	 	5	 	 	 	6	 	 	 	7	 	 	 	8	 	 	 	9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IV. LEADERSHIP

	 	 	1	 	 	 	2	 	 	 	3	 	 	 	4	 	 	 	5	 	 	 	6	 	 	 	7	 	 	 	8	 	 	 	9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	V. MANAGEMENT SUCCESSION
PLANNING

	 	 	1	 	 	 	2	 	 	 	3	 	 	 	4	 	 	 	5	 	 	 	6	 	 	 	7	 	 	 	8	 	 	 	9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL RATING SCORE:

	 	 	o	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	42 — 45 points = 150% of Target Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	39 — 41 points = 140% of Target Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	36 — 38 points = 130% of Target Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	33 — 35 points = 120% of Target Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	30 — 32 points = 110% of Target Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	27 — 29 points = 100% of Target Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	24 — 26 points = 90% of Target Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	21 — 23 points = 80% of Target Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	19 — 20 points = 70% of Target Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	17 — 18 points = 60% of Target Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	15 — 16 points = 50% of Target Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	>15 points = 0% of Target Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

                                                                                

Reviewer’s Signature

	Corp Exec Officer	 	INITIALS: EXECUTIVE
WTP COMPANY DMD

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]