Document:

Exhibit 10.26

 

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT
AGREEMENT

 

This AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”)
dated as of December 10, 2007 is made and entered into by and between
Callisto Pharmaceuticals, Inc., a company incorporated under the laws of the
state of Delaware (the “Company”), and Bernard Denoyer, an individual
(the “Executive”).

 

WITNESSETH:

 

The Company desires to employ the Executive, and the Executive wishes
to accept such employment with the Company, upon the terms and conditions set
forth in this Agreement.

 

This Agreement hereby amends and restates in its entirety the Executive
Employment Agreement dated January 15, 2004, as amended October 19, 2005;
between the Company and the Executive.

 

In consideration of the mutual promises and agreements set forth herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound,
agree as follows:

 

1.                                       Employment.  The Company hereby agrees to employ
Executive, and Executive hereby accepts such employment and agrees to perform
Executive’s duties and responsibilities in accordance with the terms and
conditions hereinafter set forth.

 

1.1                                 Duties
and Responsibilities. Executive shall serve as Senior Vice President,
Finance.  During the Employment Term (as
defined below), Executive shall perform all duties and accept all
responsibilities incident to such position and other appropriate duties as may
be assigned to Executive by the Company’s Chief Executive Officer from time to
time. The Company shall retain full direction and control of the manner, means
and methods by which Executive performs the services for which he is employed
hereunder and of the place or places at which such services shall be
rendered.  The Executive also agrees that
he will sign various federal and state securities filings as the Company’s
principal accounting officer.  The
Executive acknowledges that the Company is headquartered in New York, New York,
that the Company’s normal business hours are 9:00 a.m. to 5:30 p.m.
Monday to Friday and that he is expected to be present in the Company’s New
York offices four (4) days per week, unless Executive is on approved
business travel or vacation.

 

1.2                                 Employment
Term.  The term of Executive’s
employment under this Agreement shall commence as of December 1, 2007 (the
“Effective Date”) and shall continue for 12 months, unless earlier
terminated in accordance with Section 4 hereof.  The term of Executive’s employment shall be
automatically renewed for successive one (1) year periods until the
Executive or the Company delivers to the other party a written notice of their
intent not to renew the “Employment Term,” such written notice to be delivered
at least sixty (60) days prior to the expiration of the then-effective “Employment
Term” as that term is defined below.  The
period commencing as of the Effective Date and ending 12 months thereafter or
such later date to 

 

 

which the term of Executive’s employment under the Agreement shall have
been extended by mutual written agreement is referred to herein as the “Employment
Term.”

 

1.3                                 Extent
of Service.  During the Employment
Term, Executive agrees to use Executive’s best efforts to carry out the duties
and responsibilities under Section 1.1 hereof and, subject to Section 1.1,
to devote substantially all Executive’s business time, attention and energy
thereto.  Executive further agrees not to
work either on a part-time or independent contracting basis as a financial
consultant for any other business or enterprise during the Employment Term
without the prior written consent of the Company’s Board of Directors (the “Board”),
which consent shall not be unreasonably withheld.  Executive may serve as a Director on up to
two Boards without prior approval.

 

1.4                                 Base
Salary.  The Company shall pay
Executive a base salary (the “Base Salary”) at the annual rate of $162,000
(U.S.), payable at such times as the Company customarily pays its other senior
level executives (but in any event no less often than monthly), which Base
Salary shall be retroactive to December 1, 2007.  The Base Salary shall be subject to all
state, federal, and local payroll tax withholding and any other withholdings
required by law.

 

1.5                                 Incentive
Compensation.  Executive shall be
eligible to earn a cash bonus of up to 15% of his base salary for each
twelve-month period during the Employment Term at the discretion of the Company’s
Board of Directors, or if the Board organizes a compensation committee, such
committee (the “Committee”).  Executive’s
bonus, if any, shall be subject to all applicable tax and payroll withholdings.

 

1.6                                 Other
Benefits.  During the Employment
Term, Executive shall be entitled to participate in all employee benefit plans
and programs made available to the Company’s senior level executives as a group
or to its employees generally, as such plans or programs may be in effect from
time to time (the “Benefit Coverages”), including, without limitation,
medical, dental, hospitalization, short-term and long-term disability and life
insurance plans, accidental death and dismemberment protection and travel
accident insurance.  Executive shall be
provided office space and staff assistance appropriate for Executive’s position
and adequate for the performance of his duties and responsibilities.

 

1.7                                 Reimbursement
of Expenses; Vacation; Sick Days and Personal Days.  Executive shall be provided with
reimbursement of expenses related to Executive’s employment by the Company on a
basis no less favorable than that which may be authorized from time to time by
the Board, in its sole discretion, for senior level executives as a group.  Executive shall be entitled to vacation and
holidays in accordance with the Company’s normal personnel policies for senior
level executives, but not less than three (3) weeks of vacation per
calendar year, provided Executive shall not utilize more than ten (10) consecutive
business days without the express consent of the Chief Executive Officer.  Unused vacation time will be forfeited as of December 31
of each calendar year of the Employment Term. 
Executive shall be entitled to no more than an aggregate of ten (10) sick
days and personal days per calendar year.

 

1.8                                 No
Other Compensation.  Except as
expressly provided in Sections 1.4 through 1.7, Executive shall not be entitled
to any other compensation or benefits.

 

 

2.                                       Confidential
Information.  Executive recognizes
and acknowledges that by reason of Executive’s employment by and service to the
Company before, during and, if applicable, after the Employment Term, Executive
will have access to certain confidential and proprietary information relating
to the Company’s business, which may include, but is not limited to, trade
secrets, trade “know-how,” product development techniques and plans, formulas,
customer lists and addresses,  financing
services, funding programs, cost and pricing information, marketing and sales
techniques, strategy and programs, computer programs and software and financial
information (collectively referred to herein as “Confidential Information”).  Executive acknowledges that such Confidential
Information is a valuable and unique asset of the Company and Executive
covenants that he will not, unless expressly authorized in writing by the
Company, at any time during the course of Executive’s employment use any
Confidential Information or divulge or disclose any Confidential Information to
any person, firm or corporation except in connection with the performance of
Executive’s duties for and on behalf of the Company and in a manner consistent
with the Company’s policies regarding Confidential Information.  Executive also covenants that at any time
after the termination of such employment, directly or indirectly, he will not
use any Confidential Information or divulge or disclose any Confidential
Information to any person, firm or corporation, unless such information is in
the public domain through no fault of Executive or except when required to do
so by a court of law, by any governmental agency having supervisory authority
over the business of the Company or by any administrative or legislative body
(including a committee thereof) with apparent jurisdiction to order Executive
to divulge, disclose or make accessible such information.  All written Confidential Information
(including, without limitation, in any computer or other electronic format)
which comes into Executive’s possession during the course of Executive’s
employment shall remain the property of the Company. Unless expressly
authorized in writing by the Company, Executive shall not remove any written
Confidential Information from the Company’s premises, except in connection with
the performance of Executive’s duties for and on behalf of the Company and in a
manner consistent with the Company’s policies regarding Confidential
Information.  Upon termination of
Executive’s employment, the Executive agrees to immediately return to the
Company all written Confidential Information (including, without limitation, in
any computer or other electronic format) in Executive’s possession.  As a condition of Executive’s continued
employment with the Company and in order to protect the Company’s interest in
such proprietary information, the Company shall require Executive’s execution
of a Confidentiality Agreement and Inventions Agreement in the form attached
hereto as Exhibit “A”, and incorporated herein by this reference.

 

3.                                       Non-Competition; Non-Solicitation.

 

3.1                                 Non-Compete.  The
Executive hereby covenants and agrees that during the term of this Agreement
and for a period of one year following the end of the Employment Term, the
Executive will not, without the prior written consent of the Company, directly
or indirectly, on his own behalf or in the service or on behalf of others,
whether or not for compensation, engage in any business activity, or have any
interest in any person, firm, corporation or business, through a subsidiary or
parent entity or other entity (whether as a shareholder, agent, joint venturer,
security holder, trustee, partner, consultant, creditor lending credit or money
for the purpose of establishing or operating any such business, partner or 

 

 

otherwise) with any Competing Business in the Covered Area.  For the purpose of this Section 3.1, (i) “Competing
Business” means any biotechnology or pharmaceutical company, any contract
manufacturer, any research
laboratory or other company or entity (whether or not organized for profit)
that has, or is seeking to develop, one or more products or therapies that is
related to azaspiranes and guanylyl cyclase receptor agonists and (ii) “Covered
Area” means all geographical areas of the United States, Ireland, Germany and
other foreign jurisdictions where Company then has offices and/or sells its
products directly or indirectly through distributors and/or other sales
agents.  Notwithstanding the foregoing,
the Executive may own shares of companies whose securities are publicly traded,
so long as ownership of such securities do not constitute more than one percent
(1%) of the outstanding securities of any such company.

 

3.2                                 Non-Solicitation.  The Executive further agrees that as long as
the Agreement remains in effect and for a period of one (1) year from its
termination, the Executive will not divert any business of the Company and/or
its affiliates or any customers or suppliers of the Company and/or the Company’s
and/or its affiliates’ business to any other person, entity or competitor, or
induce or attempt to induce, directly or indirectly, any person to leave his or
her employment with the Company and/or its affiliates.

 

3.3                                 Remedies.  The Executive acknowledges and agrees that
his obligations provided herein are necessary and reasonable in order to
protect the Company and its affiliates and their respective business and the
Executive expressly agrees that monetary damages would be inadequate to
compensate the Company and/or its affiliates for any breach by the Executive of
his covenants and agreements set forth herein. 
Accordingly, the Executive agrees and acknowledges that any such
violation or threatened violation of this Section 3 will cause irreparable
injury to the Company and that, in addition to any other remedies that may be
available, in law, in equity or otherwise, the Company and its affiliates shall
be entitled to obtain injunctive relief against the threatened breach of this Section 3
or the continuation of any such breach by the Executive without the necessity
of proving actual damages.

 

4.                                       Termination.

 

4.1                                 By
Company.  The Company, acting by duly
adopted resolutions of the Board, may, in its discretion and at its option,
terminate the Executive’s employment with or without Cause, and without
prejudice to any other right or remedy to which the Company or Executive may be
entitled at law or in equity or under this Agreement.  In the event the Company desires to terminate
the Executive’s employment without Cause, the Company shall give the Executive
not less than thirty (30) days advance written notice of such termination.  Termination of Executive’s employment
hereunder shall be deemed to be “for Cause” in the event that Executive
violates any provisions of this Agreement, is guilty of any criminal act other
than minor traffic violations, is guilty of willful misconduct or gross
neglect, or gross dereliction of his duties hereunder or refuses to perform his
duties hereunder after notice of such refusal to perform such duties or
directions was given to Executive by the Board.

 

4.2                                 By
Executive’s Death or Disability. 
This Agreement shall also be terminated upon the Executive’s death
and/or a finding of permanent physical or mental disability, such disability
expected to result in death or to be of a continuous duration of no less

 

 

than twelve (12) months, and the Executive is unable to perform his
usual and essential duties for the Company.

 

4.3                                 Compensation
on Termination.  In the event the
Company terminates Executive’s employment, all payments under this Agreement
shall cease, except for Base Salary to the extent already accrued.  In the event of termination by reason of
Executive’s death and/or permanent disability, Executive or his executors,
legal representatives or administrators, as applicable, shall be entitled to an
amount equal to Executive’s Base Salary accrued through the date of
termination, plus a pro rata share of any annual bonus to which Executive would
otherwise be entitled for the year during which death or permanent disability
occurs.  Upon termination of Executive,
if Executive executes a written release substantially in the form attached
hereto as Exhibit “B”, of any and all claims against the Company
and all related parties with respect to all matters arising out of Executive’s
employment by the Company (other than Executive’s entitlement under any
employee benefit plan or program sponsored by the Company in which Executive
participated), unless the Employment Term expires or termination is for Cause,
the Executive shall receive, in full settlement of any claims Executive may
have related to his employment by the Company, Base Salary for six (6) months
from the date of termination, provided Executive is in full compliance with the
provisions of Sections 2 and 3 of this Agreement.

 

4.4                                 Voluntary
Termination.  Executive may
voluntarily terminate the Employment Term upon sixty (60) days’ prior written
notice for any reason; provided, however, that no further
payments shall be due under this Agreement in that event except that Executive
shall be entitled to any benefits due under any compensation or benefit plan
provided by the Company for executives or otherwise outside of this Agreement.

 

5.                                       General
Provisions.

 

5.1                                 Modification;
No Waiver.  No modification,
amendment or discharge of this Agreement shall be valid unless the same is in
writing and signed by all parties hereto. 
Failure of any party at any time to enforce any provisions of this
Agreement or any rights or to exercise any elections shall in no way be
considered to be a waiver of such provisions, rights or elections and shall in
no way affect the validity of this Agreement. 
The exercise by any party of any of its rights or any of its elections
under this Agreement shall not preclude or prejudice such party from exercising
the same or any other right it may have under this Agreement irrespective of
any previous action taken.

 

5.2                                 Notices.  All notices and other communications required
or permitted hereunder or necessary or convenient in connection herewith shall
be in writing and shall be deemed to have been given when hand delivered or
mailed by registered or certified mail as follows (provided that notice of
change of address shall be deemed given only when received):

 

If to the Company, to:                          Callisto
Pharmaceuticals, Inc.

420 Lexington Avenue, Suite 2500

New York, NY 10170

 

 

If to Executive, to:                                 Bernard
Denoyer

109 Blackman Road

Ridgefield, CT 06877

 

Or to such other names or addresses as the Company or Executive, as the
case may be, shall designate by notice to each other person entitled to receive
notices in the manner specified in this Section.

 

5.3                                 Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New York.

 

5.4                                 Further
Assurances.  Each party to this
Agreement shall execute all instruments and documents and take all actions as
may be reasonably required to effectuate this Agreement.

 

5.5                                 Severability.  Should any one or more of the provisions of
this Agreement or of any agreement entered into pursuant to this Agreement be
determined to be illegal or unenforceable, then such illegal or unenforceable
provision shall be modified by the proper court or arbitrator to the extent
necessary and possible to make such provision enforceable, and such modified
provision and all other provisions of this Agreement and of each other
agreement entered into pursuant to this Agreement shall be given effect
separately from the provisions or portion thereof determined to be illegal or
unenforceable and shall not be affected thereby.

 

5.6                                 Successors
and Assigns.  Executive may not
assign this Agreement without the prior written consent of the Company.  The Company may assign its rights without the
written consent of Executive, so long as the Company or its assignee complies
with the other material terms of this Agreement.  The rights and obligations of the Company
under this Agreement shall inure to the benefit of and be binding upon the
successors and permitted assigns of the Company, and the Executive’s rights
under this Agreement shall inure to the benefit of and be binding upon his
heirs and executors.  The Company’s
subsidiaries and controlled affiliates shall be express third party beneficiaries
of this Agreement.

 

5.7                                 Entire
Agreement.  This Agreement supersedes
all prior agreements and understandings between the parties, oral or
written.  No modification, termination or
attempted waiver shall be valid unless in writing, signed by the party against
whom such modification, termination or waiver is sought to be enforced.

 

5.8                                 Counterparts;
Facsimile.  This Agreement may be
executed in one or more counterparts, each of which shall for all purposes be
deemed to be an original, and all of which taken together shall constitute one
and the same instrument.  This Agreement
may be executed by facsimile with original signatures to follow.

 

IN WITNESS WHEREOF, the undersigned, intending to be legally bound,
have executed this Agreement as of the date first written above.

 

 

	
   

  	
  CALLISTO PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary S. Jacob, Ph.D.

  
	
   

  	
   

  	
    Gary S. Jacob, Ph.D.

  
	
   

  	
   

  	
    Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Bernard Denoyer

  
	
   

  	
   

  	
    Bernard Denoyer

  

 

 

Exhibit A

 

Confidentiality Agreement and Inventions
Agreement

 

 

Exhibit B

 

ReleaseExhibit 10.30

 

SERVICEMASTER GLOBAL HOLDINGS, INC.

STOCK INCENTIVE PLAN

 

Article I

Purpose

 

ServiceMaster Global Holdings, Inc. has established
this stock incentive plan to foster and promote its long-term financial
success.  Capitalized terms have the meaning
given in Article XII.

 

Article II

Powers of the Board

 

Section 2.1            Power
to Grant Awards.  The Board shall
select Employees to receive Awards.  The
Board shall also determine from time to time whether Eligible Directors (or
classes or categories of Eligible Directors) shall receive Director Share
Awards.  The Board shall determine the
terms of each Award, consistent with the Plan.

 

Section 2.2            Administration.  The Board shall be responsible for the
administration of the Plan.  The Board
may prescribe, amend and rescind rules and regulations relating to the
administration of the Plan, provide for conditions and assurances it deems
necessary or advisable to protect the interests of the Company and make all
other determinations necessary or advisable for the administration and
interpretation of the Plan.  Any
authority exercised by the Board under the Plan shall be exercised by the Board
in its sole discretion.  Determinations,
interpretations or other actions made or taken by the Board under the Plan
shall be final, binding and conclusive for all purposes and upon all persons.

 

Section 2.3            Delegation
by the Board.  All of the powers,
duties and responsibilities of the Board specified in this Plan may be
exercised and performed by any duly constituted committee thereof to the extent
authorized by the Board to exercise and perform such powers, duties and
responsibilities, and any determination, interpretation or other action taken
by such committee shall have the same effect hereunder as if made or taken by the
Board.

 

 

Article III

Shares Subject to Plan

 

Section 3.1            Number.  The
maximum number of shares of Common Stock that may be issued under the Plan or
be subject to Awards may not exceed 12,445,000 shares.  The shares of Common Stock to be delivered
under the Plan may consist, in whole or in part, of authorized but unissued
Common Stock that are not reserved for any other purpose.

 

Section 3.2            Canceled,
Terminated or Forfeited Awards.  If
any Award or portion thereof is for any reason forfeited, canceled or otherwise
terminated without exercise, the Common Stock subject to such Award or portion
thereof shall again be available for grant under the Plan.

 

Section 3.3            Adjustment
in Capitalization.  If and to the
extent necessary or appropriate to reflect any Common Stock dividend,
extraordinary dividend, stock split or share combination or any
recapitalization, merger, consolidation, exchange of shares, spin-off
liquidation or dissolution of the Company or other similar transaction
affecting the Common Stock, the Board shall proportionately adjust the number
of shares of Common Stock available for issuance under the Plan and the number,
class, exercise price or other terms of any outstanding Award and/or make other
provisions with respect to the holder or holders of an outstanding Award.

 

Article IV

Stock Purchase or Grant

 

Section 4.1            Awards
and Administration.  The Board may
offer and sell or otherwise grant Common Stock to Participants at such time or
times and subject to such conditions as it shall determine, the terms of which
shall be set forth in a Subscription Agreement.

 

Section 4.2            Minimum
Purchase Price.  Unless otherwise
determined by the Board, the purchase price for any Common Stock to be offered
and sold pursuant to this Article IV shall not be less than the Fair
Market Value on the Grant Date.

 

Section 4.3            Payment.  Unless otherwise determined by the Board, the
purchase price with respect to any Common Stock offered and sold pursuant to
this Article IV shall be paid in cash or other readily available funds
simultaneously with the closing of the purchase of such Common Stock.

 

2

 

Article V

Terms of Options

 

Section 5.1            Grant
of Options.  The Board may grant
Options to Participants at such time or times as it shall determine.  Options granted pursuant to the Plan will not
be “incentive stock options” as defined in the Code.  Each Option granted to a Participant shall be
evidenced by an Option Agreement that shall specify the number of shares of
Common Stock that may be purchased pursuant to such Option, the exercise price
at which shares of Common Stock may be purchased pursuant to such Option, the
duration of such Option (not to exceed the tenth anniversary of the Grant
Date), and such other terms as the Board shall determine.

 

Section 5.2            Exercise
Price.  The exercise price per share
of Common Stock to be purchased upon exercise of an Option shall not be less
than the Fair Market Value on the Grant Date.

 

Section 5.3            Vesting
and Exercise of Options.  Options
shall become vested or exercisable in accordance with the vesting schedule or
upon the attainment of such performance criteria as shall be specified by the
Board on or before the Grant Date.  The
Board may accelerate the vesting or exercisability of any Option, all Options
or any class of Options at any time and from time to time.

 

Section 5.4            Payment.  The Board shall establish procedures
governing the exercise of Options, which procedures shall generally require
that prior written notice of exercise be given and that the exercise price
(together with any required withholding taxes or other similar taxes, charges
or fees) be paid in full in cash, cash equivalents or other readily available
funds at the time of exercise. 
Notwithstanding the foregoing, on such terms as the Board may establish
from time to time following a Public Offering (i) the Board may
permit a Participant to tender any Common Stock such Participant has owned for
at least six months and one day for all or a portion of the applicable exercise
price or minimum required withholding taxes, and (ii) the Board may
authorize the Company to establish a broker-assisted exercise program.  In connection with any Option exercise, the
Company may require the Participant to furnish or execute such other documents
as it shall reasonably deem necessary to (a) evidence such
exercise, (b) determine whether registration is then required under
the U.S. federal securities laws or similar non-U.S. laws, or (c) comply
with or satisfy the requirements of the U.S. federal securities laws,
applicable state or non-U.S. securities laws or any other law.  As a condition to the exercise of any Option
before a Public Offering, a Participant shall enter into a Subscription Agreement.

 

3

 

Article VI

Termination of Employment

 

Section 6.1            Expiration
of Options Following Termination of Employment.  Unless otherwise determined by the Board on
or before the Grant Date, if a Participant’s employment with the Company
terminates, such Participant’s Options shall be treated as follows:

 

(a)           any unvested Options shall terminate
effective as of such termination of employment (determined without regard to
any statutory or deemed or express contractual notice period); provided
that if the Employee’s employment with the Company is terminated in a Special
Termination (i.e., by reason of the Employee’s death or Disability), any
unvested Options held by the Employee that by their terms would vest solely
based on continued employment shall immediately vest as of the effective date
of such Special Termination;

 

(b)           except in the case of a termination
for Cause, vested Options shall remain exercisable through the earliest of (i) the
normal expiration date, (ii) the three-month anniversary of the
effective date of the Participant’s termination of employment (determined
without regard to any statutory or deemed or express contractual notice
period), (iii) the one-year anniversary in the case of a Special
Termination or a retirement at normal retirement age or later), and (iv) any cancellation pursuant to Section 7.1;
and

 

(c)           in the case of a termination for
Cause, any and all Options held by such Participant (whether or not then vested
or exercisable) shall terminate immediately upon such termination of
employment.

 

Section 6.2            Certain
Rights upon Termination of Employment Prior to a Public Offering.  Each Subscription Agreement shall provide
that the Company and one or more of the Investors shall have successive rights
prior to a Public Offering to purchase all or any portion of a Participant’s
Common Stock upon any termination of employment (determined without regard to
any statutory or deemed or express contractual notice period), at such time and
at a purchase price per share equal to the Fair Market Value as of the date
specified in the Subscription Agreement (or, if the Participant’s employment
termination qualifies as a termination for Cause, for a purchase price per
share equal to the lesser of (i) the Fair Market Value as of the
date specified in the Subscription Agreement and (ii) such
Participant’s per share purchase price). 
The Board may provide in a Subscription Agreement that following a
Participant’s Special Termination, 

 

4

 

retirement at or after normal retirement age or termination of
employment by the Company without Cause in each case prior to a Public
Offering, such Participant may require the Company to repurchase all (but not
less than all) of such Participant’s Common Stock (but excluding any shares
acquired on exercise of an Option), at such time and at a purchase price per
share equal to the Fair Market Value as of the date specified in the
Subscription Agreement, subject to the Company having the ability to do so
under the terms of its financing agreements.

 

Article VII

Change in Control

 

Section 7.1            Accelerated
Vesting and Payment.  Except as
otherwise provided in this Article VII, and unless otherwise provided in
the Award Agreement, upon a Change in Control, (a) each Award that
by its terms would otherwise vest based solely on continued employment shall
vest in full in connection with such Change in Control and each other Award
shall, to the extent it has not or will not by its terms vest before or in
connection with such Change in Control, be canceled, and (b) the
holder of any vested Award (including any Award that vests in connection with
such Change in Control) shall be entitled to receive, in complete satisfaction
of such Award, a payment in cash or readily marketable securities in an amount
or with a value equal to the number of shares of Common Stock covered by such
vested Award times the excess, if any, of the Change in Control Price over any
applicable exercise price or reference price, if any, for such Award.

 

Section 7.2            Alternative
Award.  No cancellation, acceleration
or other payment shall occur with respect to any Award or class or type of
Award if the Board reasonably determines in good faith, prior to the occurrence
of a Change in Control, that such Award shall be honored or assumed, or new
rights substituted therefor following the Change in Control (such honored,
assumed or substituted award, an “Alternative Award”); provided
that any Alternative Award must:

 

(a)           give the Participant who held such
Award rights and entitlements substantially equivalent to or better than the
rights and terms applicable under such Award, including, but not limited to, an
identical or better exercise and vesting schedule, identical or better timing
and methods of payment and, if the Alternative Award or the securities
underlying it are not publicly-traded, identical or better rights following a
termination of employment to require the Company or the acquiror in such Change
in 

 

5

 

Control to repurchase the
Alternative Award or securities underlying such Alternative Award; and

 

(b)           have terms such that if, within two
years following a Change in Control, a Participant’s employment is
involuntarily or constructively terminated (other than for Cause), such
Alternative Award shall immediately vest in full and such Participant shall
receive a cash payment equal to the excess (if any) of the fair market value of
the stock subject to the Alternative Award on the date of surrender over the
price that such Participant would be required to pay to exercise such
Alternative Award or shall have an immediate right to exercise such Alternative
Award and receive shares that are then publicly traded.

 

Section 7.3            Limitation
of Benefits.  If, whether as a result
of accelerated vesting, the grant of an Alternative Award or otherwise, a
Participant would receive any payment, deemed payment or other benefit as a
result of the operation of Section 7.1 or Section 7.2 that, together
with any other payment, deemed payment or other benefit a Participant may
receive under any other plan, program, policy or arrangement, would constitute
an “excess parachute payment” under section 280G of the Code, then,
notwithstanding anything in this Plan to the contrary, the payments, deemed
payments or other benefits such Participant would otherwise receive under Section 7.1
or Section 7.2 shall be reduced to the extent necessary to eliminate any
such excess parachute payment and such Participant shall have no further rights
or claims with respect thereto.  If the
preceding sentence would result in a reduction of the payments, deemed payments
or other benefits a Participant would otherwise receive in more than an
immaterial amount, the Company will use its commercially reasonable best efforts
to seek the approval of the Company’s shareholders in the manner provided for
in section 280G(b)(5) of the Code and the regulations thereunder with
respect to such reduced payments or other benefits (if the Company is eligible
to do so), so that such payments would not be treated as “parachute payments”
for these purposes (and therefore would cease to be subject to reduction
pursuant to this Section 7.3), and, if seeking such approval, the Company
shall submit all Participants for whom such approval is sought as a single
slate to the shareholders and not individually. 
This Section 7.3 shall cease to apply if the stock of the Company
or any direct or indirect parent or subsidiary of the Company becomes readily
tradable on an established securities market or otherwise within the meaning of
26 CFR 1.280G-1, Q/A-6.

 

6

 

Article VIII

Deferred Share Units

 

The Board may provide for the grant of Deferred Share Units to
Participants at such time or times and subject to such conditions as it shall
determine.  No shares of Common Stock
will be issued at the time an award of Deferred Share Units is made and the
Company shall not be required to set aside a fund for the payment of any such
award.

 

Article IX

Director Share Awards

 

Director Share Awards may have such terms as the Board
shall determine from time to time, and may be granted as part of the retainer
or other fees payable to an Eligible Director or as part of an arrangement that
permits the deferral of payment of such fees, on a mandatory or elective basis,
into the right to receive Common Stock and distributions thereon in the future
(or a cash payment measured by reference to the value thereof).

 

Article X

Authority to Vary Terms or Establish Local Jurisdiction
Plans

 

The Board may vary the terms of Awards to be granted under
the Plan, or establish sub-plans under this Plan to authorize the grant of
awards that have additional or different terms or features from those otherwise
provided for in the Plan, if and to the extent the Board determines necessary
or appropriate to permit the grant of awards that are best suited to further
the purposes of the Plan and to comply with applicable securities laws in a
particular jurisdiction or provide terms appropriately suited for Employees in
such jurisdiction in light of the tax laws of such jurisdiction while being as
consistent as otherwise possible with the terms of Awards under the Plan; provided
that this Article X shall not be deemed to authorize any increase in the
number of Common Stock available for issuance under the Plan set forth in Section 3.1.

 

7

 

Article XI

Amendment, Modification, and Termination of the Plan

 

The Board may terminate or suspend the Plan at any time,
and may amend or modify the Plan from time to time.  No amendment, modification, termination or
suspension of the Plan shall in any manner adversely affect any Award
theretofore granted under the Plan without the consent of the Participant
holding such Award or the consent of a majority of Participants holding similar
Awards (such majority to be determined based on the number of shares covered by
such Awards).  Shareholder approval of
any such amendment, modification, termination or suspension shall be obtained
to the extent mandated by applicable law, or if otherwise deemed appropriate by
the Board.

 

Article XII

Definitions

 

Section 12.1          Definitions.  Whenever used herein, the following terms
shall have the respective meanings set forth below:

 

“Affiliate” means, with respect to any Person, any other Person
directly or indirectly controlling, controlled by or under common control with
such first Person; provided that a director, member of management or
other Employee of the Company or any of its Subsidiaries shall not be deemed to
be an Affiliate of the Investors.  For
these purposes, “control” (including the terms “controlled by” and “under
common control with”) means the possession, directly or indirectly, of the
power to direct or cause the direction of the management policies of a Person
by reason of ownership of voting securities, by contract or otherwise.

 

“Alternative Award” has the meaning given in Section 7.2.

 

“Award” means an Option, a Deferred Share Unit, a Director Share
Award or an offer and sale or grant of Common Stock pursuant to Article IV,
in each case granted pursuant to the terms of the Plan.

 

8

 

“Award Agreement” means a Subscription Agreement, an Option
Agreement or any other agreement evidencing an Award.

 

“Board” means the Board of Directors of the Company.

 

“Cause” means, unless
otherwise provided in the Award Agreement, any of the following:  (i) the Participant’s commission
of a crime involving fraud, theft, false statements or other similar acts or
commission of any crime that is a felony (or a comparable classification in a
jurisdiction that does not use these terms); (ii) the Participant’s
willful and material or grossly negligent failure to perform his or her
material employment-related duties for the Company and its Subsidiaries; (iii) the
Participant’s material violation of any material Company policy as in effect
from time to time; (iv) the Participant’s engaging in any willful
act or making any public statement that impairs, impugns, denigrates,
disparages or negatively reflects upon the name, reputation or business
interests of the Company or its Subsidiaries; (v) the Participant’s
material breach of any Award Agreement, employment agreement, or
noncompetition, nondisclosure or nonsolicitation agreement to which the
Participant is a party or by which the Participant is bound or (vi) the
Participant’s engaging in any wrongful conduct injurious or detrimental to the
Company or its any of its Subsidiaries. The determination as to whether “Cause”
has occurred shall be made by the Board, which shall have the authority to
waive the consequences under the Plan of the existence or occurrence of any of
the events, acts or omissions constituting “Cause.”  A termination for Cause shall be deemed to
include a determination following a Participant’s termination of employment for
any reason if the circumstances existing prior to such termination would have
entitled the Company or one of its Subsidiaries to have terminated such
Participant’s employment for Cause.

 

“CD&R Investors” means, collectively, (i) Clayton,
Dubilier & Rice Fund VII, L.P., (ii) Clayton, Dubilier &
Rice Fund VII (Co-Investment), L.P., (iii) CDR SVM Co-Investor
L.P., (iv) CD&R Parallel Fund VII, L.P., and (v) CDR
SVM Co-Investor No. 2 L.P.

 

“Change in Control” means the first to occur of the following
events after the Effective Date:

 

9

 

(i)  the acquisition by any person, entity or “group”
(as defined in Section 13(d) of the Securities Exchange Act of 1934,
as amended) of beneficial ownership of 50% or more of the combined voting power
of the Company’s then outstanding voting securities, other than any such
acquisition by the Company, any of its Subsidiaries, any employee benefit plan
of the Company or any of its Subsidiaries, or by the Investors, or any
Affiliates of any of the foregoing;

 

(ii)  the merger, consolidation or other similar
transaction involving the Company, as a result of which persons who were
stockholders of the Company immediately prior to such merger, consolidation, or
other similar transaction do not, immediately thereafter, own, directly or
indirectly, more than 50% of the combined voting power entitled to vote
generally in the election of directors of the merged or consolidated company;

 

(iii)  within any 24-month period, the persons who were
directors of the Company at the beginning of such period (the “Incumbent Directors”)
shall cease to constitute at least a majority of the Board, provided
that any director elected or nominated for election  to the Board by any Investor or a majority of
the Incumbent Directors then still in office shall be deemed to be an Incumbent
Director for purposes of this clause (iii); or

 

(iv)  the sale, transfer or other disposition of all or
substantially all of the assets of the Company to one or more persons or
entities that are not, immediately prior to such sale, transfer or other disposition,
Affiliates of the Company.

 

10

 

Notwithstanding
the foregoing, a Public Offering shall not constitute a Change in Control.

 

“Change in Control Price” means the price per share of Common Stock
offered in conjunction with any transaction resulting in a Change in
Control.  If any part of the offered
price is payable other than in cash, the Change in Control price shall be
determined in good faith by the Board as constituted immediately prior to the
Change in Control.

 

“Code” means the United States Internal Revenue Code of 1986, as
amended, and any successor thereto.

 

“Common Stock” means the common stock, par value U.S. $.01 per
share, of the Company.

 

“Company” means ServiceMaster Global Holdings, Inc., a
Delaware corporation, and any successor thereto, and, for purposes of
determining the status of a Participant’s employment with the “Company” shall
include the Company’s Subsidiaries.

 

“Deferred Share Unit” means the right granted pursuant to the Plan
to receive a share of Common Stock and distributions thereon in the future.

 

“Director Share Award” means an award pursuant to Article IX
to an Eligible Director of Common Stock, an Option or similar Award, a right to
receive Common Stock or a payment measured by reference thereto and
distributions thereon.

 

“Disability” means, unless otherwise provided in an Award
Agreement, a Participant’s long-term disability within the meaning of the
long-term disability insurance plan or program of the Company or any Subsidiary
then covering the Participant, or in the absence of such a plan or program, as
determined by the Board.  The Board’s
reasoned and good faith judgment of Disability shall be final and shall be
based on such competent medical evidence as shall be presented to it by the
Participant or by any 

 

11

 

physician or group of physicians or other competent
medical expert employed by the Participant or the Company to advise the Board.

 

“Effective Date” has the meaning given in Section 13.10.

 

“Eligible Director” means a member of the Board other than an
employee or officer of the Company or any of its Subsidiaries.

 

“Employee” means any executive, officer or other employee of the
Company or any Subsidiary.

 

“Fair Market Value” means, as of any date of determination prior to
a Public Offering, the per share fair market value on such date of a share of
Common Stock as determined in good faith by the Board.  In making a determination of Fair Market
Value, the Board shall give due consideration to such factors as it deems
appropriate, including, but not limited to, the earnings and other financial
and operating information of the Company in recent periods, the potential value
of the Company as a whole, the future prospects of the Company and the
industries in which it competes, the history and management of the Company, the
general condition of the securities markets, the fair market value of
securities of companies engaged in businesses similar to those of the Company,
and any recent valuation of the Common Stock that shall have been performed by
an independent valuation firm (although nothing herein shall obligate the Board
to obtain any such independent valuation). 
The determination of Fair Market Value will not give effect to any
restrictions on transfer of the Common Stock or take into account any control
premium, but shall be determined taking into account the fact that such shares
would represent a minority interest in the Company and are illiquid.  Following a Public Offering, “Fair Market
Value” shall mean, as of any date of determination, the mid-point between the
high and the low trading prices for such date per share of Common Stock as
reported on the principal stock exchange on which the shares of Common Stock
are then listed.

 

“Grant Date” means, with respect to any Award, the date as of which
such Award is granted pursuant to the Plan.

 

12

 

“Investor” means any of (i) BAS Capital Funding
Corporation, BACSVM-A, L.P. and Bank of America Capital Investors V, L.P., (ii) Citigroup
Capital Partners II 2007 Citigroup Investment, L.P., Citigroup Capital Partners
II Employee Master Fund, L.P., Citigroup Capital Partners II Onshore, L.P.,
Citigroup Capital Partners II Cayman Holdings, L.P. and CPE Co-Investment
(ServiceMaster) LLC, (iii) the CD&R Investors, (iv) J.P.
Morgan Ventures Corporation, (vi) any Affiliate of any of the
foregoing that acquires shares of Common Stock, and (vii) any
successor in interest to any thereof.

 

“Option” means the right granted pursuant to the Plan to purchase
one share of Common Stock.

 

“Option Agreement” means an agreement between the Company and a
Participant embodying the terms of any Options granted pursuant to the Plan and
in the form approved by the Board from time to time for such purpose.

 

“Participant”
means any Employee or Eligible Director who is granted an Award.

 

“Person” means any natural person, firm, partnership, limited
liability company, association, corporation, company, trust, business trust,
governmental authority or other entity.

 

“Plan” means this ServiceMaster Global Holdings, Inc. Stock
Incentive Plan.

 

“Public Offering” means the first day as of which (i) sales
of Common Stock are made to the public in the United States pursuant to an
underwritten public offering of the Common Stock, (ii) Common Stock
is otherwise listed for trading on a nationally recognized securities exchange,
or (iii) the Board has determined that shares of the Common Stock
otherwise have become publicly-traded for this purpose.

 

13

 

“Special Termination” means a termination by reason of the
Participant’s death or Disability.

 

“Subscription Agreement” means a stock subscription agreement
between the Company and a Participant embodying the terms of any stock purchase
made pursuant to the Plan and in the form approved by the Board from time to
time for such purpose.

 

“Subsidiary” means any corporation, limited liability company or
other entity, a majority of whose outstanding voting securities is owned,
directly or indirectly, by the Company.

 

Section 12.2           Gender and Number.  Except when otherwise indicated by the
context, words in the masculine gender used in the Plan shall include the
feminine gender, the singular shall include the plural, and the plural shall
include the singular.

 

Article XIII

Miscellaneous Provisions

 

Section 13.1           Nontransferability of Awards.  Except as otherwise provided herein or as the
Board may permit on such terms as it shall determine, no Awards granted under
the Plan may be sold, transferred, pledged, assigned, hedged, encumbered or
otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution.  All rights
with respect to Awards granted to a Participant under the Plan shall be
exercisable during the Participant’s lifetime by such Participant only (or, in
the event of the Participant’s Disability, such Participant’s legal
representative).  Following a Participant’s
death, all rights with respect to Awards that were outstanding at the time of
such Participant’s death and have not terminated shall be exercised by his
designated beneficiary or by his estate in the absence of a designated
beneficiary.

 

Section 13.2           Tax Withholding.  The Company or the Subsidiary employing a
Participant shall have the power to withhold up to the minimum statutory
requirement, or to require such Participant to remit to the Company or such
Subsidiary, an amount sufficient to satisfy all U.S. federal, state, local and any
non-U.S. withholding tax or other governmental tax, charge or fee requirements
in respect of any Award granted under the Plan.

 

14

 

Section 13.3           Beneficiary Designation.  Pursuant to such rules and procedures as
the Board may from time to time establish, a Participant may name a beneficiary
or beneficiaries (who may be named contingently or successively) by whom any
right under the Plan is to be exercised in case of such Participant’s
death.  Each designation will revoke all
prior designations by the same Participant, shall be in a form reasonably
prescribed by the Board, and will be effective only when filed by the
Participant in writing with the Board during his lifetime.

 

Section 13.4           No Guarantee of Employment or
Participation.  Nothing in the Plan
or in any agreement granted hereunder shall interfere with or limit in any way
the right of the Company or any Subsidiary to terminate any Participant’s
employment or retention at any time, or confer upon any Participant any right
to continue in the employ or retention of the Company or any Subsidiary.  No Employee or Eligible Director shall have a
right to be selected as a Participant or, having been so selected, to receive
any Awards.

 

Section 13.5           No Limitation on Compensation; No
Impact on Benefits.  Nothing in the
Plan shall be construed to limit the right of the Company or any Subsidiary to
establish other plans or to pay compensation to its Employees or Eligible
Directors, in cash or property, in a manner that is not expressly authorized
under the Plan.  Except as may otherwise
be specifically and unequivocally stated under any employee benefit plan,
policy or program, no amount payable in respect of any Award shall be treated
as compensation for purposes of calculating a Participant’s rights under any
such plan, policy or program.  The
selection of an Employee as a Participant shall neither entitle such Employee
to, nor disqualify such Employee from, participation in any other award or
incentive plan.

 

Section 13.6           No Voting Rights.  Except as otherwise required by law, no
Participant holding any Awards granted under the Plan shall have any right in
respect of such Awards to vote on any matter submitted to the Company’s
stockholders until such time as the shares of Common Stock underlying such
Awards have been issued, and then, subject to the voting restrictions contained
in the Subscription Agreement.

 

Section 13.7           Requirements of Law.  The granting of Awards and the issuance of
shares of Common Stock pursuant to the Plan shall be subject to all applicable
laws, rules and regulations, and to such approvals by any governmental
agencies or national securities exchanges as may be required.  No Awards shall be granted under the Plan,
and no Common Stock shall be issued under the Plan, if such grant or issuance
would result in a violation of applicable law, including U.S. federal
securities laws and any applicable state or non-U.S. securities laws.

 

15

 

Section 13.8           Freedom of Action.  Nothing in the Plan or any Award Agreement
evidencing an Award shall be construed as limiting or preventing the Company or
any Subsidiary from taking any action that it deems appropriate or in its best
interest (as determined in its sole and absolute discretion) and no Participant
(or person claiming by or through a Participant) shall have any right relating
to the diminishment in the value of any Award as a result of any such action.

 

Section 13.9           Unfunded Plan; Plan Not Subject to
ERISA.  The Plan is an unfunded plan
and Participants shall have the status of unsecured creditors of the
Company.  The Plan is not intended to be
subject to the Employee Retirement Income and Security Act of 1974, as amended.

 

Section 13.10         Term of Plan.  The Plan shall be effective as of November 20,
2007, (the “Effective Date”) and shall continue in effect, unless sooner
terminated pursuant to Article XI, until the tenth anniversary of such
date.  The provisions of the Plan shall
continue thereafter to govern all outstanding Awards.

 

Section 13.11         Governing Law.  The Plan, and all agreements hereunder, shall
be governed by and construed in accordance with the law of the State of
Delaware regardless of the application of rules of conflict of law that
would apply the laws of any other jurisdiction.

 

16

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