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Exhibit 10.61  

 
 

INCENTIVE STOCK OPTION
  TERMS AND CONDITIONS    
    

DATE
OF GRANT: SEPTEMBER 26, 2006 

As
a participant in the 2003 Long-Term Incentive Plan (the Plan), you will be able to purchase shares of Common Stock of Fortune Brands, Inc. (Fortune). 

The
date of grant, the maximum number of shares the option entitles you to purchase, the option price per share and the date or dates on which the option will ordinarily first be exercisable are
identified in the electronic, on-line grant acceptance process administered by the Plan's third party administrator (the Stock Plans Administrator). The option is intended
(but not guaranteed) to be an incentive stock option within the meaning of Section 422 of the Internal Revenue Code. 

        1.    Exercise.

        (a)    Except
as provided in this paragraph 1 and paragraphs 3, 4, 5 and 9, the option shall be exercisable exercisable in three annual installments with
one-third of the shares covered by the grant becoming first exercisable on the first anniversary of the date of grant and an additional one-third becoming first exercisable on
each of the second and third anniversaries, respectively, and ending seven years from the date of grant (its expiration date). During this period, the option is exercisable in whole or in part
from time to time. 

        (b)    The
option shall not become exercisable unless you remain employed by Fortune or one of its subsidiaries for one year from the date of grant, except in the event of your
death and except as provided in paragraph 9. 

        2.    Transferability
of Option.    The option shall not be transferable by you other than in the event of your death, except that it may
be transferred pursuant to an approved domestic relations order. During your lifetime the option shall be exercisable only by you unless it has been transferred pursuant to an approved domestic
relations order, in which case it may be exercisable only by the transferee. With respect to any transfer pursuant to a domestic relations order, such order must be approved in writing by the
committee of the Board of Directors of Fortune administering the Plan (the Committee), or the Secretary of the Committee. 

        3.    Death.    If
your employment by Fortune or an entity in which Fortune has an equity interest terminates by reason of your death,
the option may immediately be exercised in full and shall continue to be exercisable in full for three years after death or until its expiration date, whichever is earlier, provided that the option
may be exercised within one year from the date of your death even if this one-year period extends beyond the expiration date. 

        4.    Retirement;
Disability.    If your employment by Fortune or an entity in which Fortune has an equity interest terminates by reason
of disability or Retirement (as defined below), provided that you have remained in the employ of Fortune or an entity in which Fortune has an equity interest for one year from the date of
grant, the option shall become immediately exercisable in full and shall continue to be exercisable in full for three years after your employment terminates or until its expiration date, whichever is
earlier. For purposes of this paragraph, Retirement means either (a) termination of employment on or after attaining age 55 and completion of at least five years of service with Fortune or an
entity in which Fortune has an equity interest, provided that Retirement shall not include termination of employment by reason of failure to maintain work performance standards, violation of company
policies or dishonesty or other misconduct prejudicial to the company, or (b) retirement under Section 3(b) of the Fortune Brands, Inc. Supplemental Plan. 

        5.    Termination
of Employment.    If your employment by Fortune or an entity in which Fortune has an equity interest terminates other
than in the circumstances referred to in paragraphs 3 and 4, any portion of the option that is not yet exercisable shall not thereafter become exercisable and any portion of the option
that is exercisable shall terminate and cease to be exercisable three months from the date of your termination from employment, except as otherwise provided in paragraph 9; provided that in no
event shall the option be exercisable after the expiration of seven years from the date of grant. For the purpose of these terms and conditions, your employment by an entity in which Fortune has an
equity interest shall be considered terminated on the date on which Fortune sells or otherwise divests its equity interest in your employer. 

 

        6.    Stock
Exchange Listing.    Fortune is not obligated to deliver any shares until they have been listed on each stock exchange on
which Fortune's common stock is listed and until Fortune is satisfied that all applicable laws and regulations have been met. Fortune agrees to use its best efforts to list the shares and meet all
legal requirements so that the shares can be delivered. No fractional shares will be delivered. 

        7.    Transfer
of Employment; Leave of Absence.    For the purposes of your option, (a) if you transfer between Fortune and an
entity in which Fortune has an equity interest or from one entity in which Fortune has an equity interest to another entity in which Fortune has an equity interest, without an intervening period, it
will not be considered a termination of employment, and (b) any leave of absence granted in writing will not constitute an interruption in your employment. 

        8.    Adjustments.

        (a)    In
the event of any merger, consolidation, stock or other non-cash dividend, extraordinary cash dividend, split-up, spin-off, combination or exchange of shares,
reorganization or recapitalization or change in capitalization, or any other similar corporate event, the number and kind of shares that are subject to the option and the option price per share
immediately prior to such event may be proportionately and appropriately adjusted, without increase or decrease in the aggregate option price. 

        (b)    The
determination of the Committee as to the terms of any adjustment is binding and conclusive upon you and any other person who is entitled to exercise
the option. 

        9.    Change
in Control of Fortune. 

        (a)    In
the event of a Change in Control (as defined in the attached Plan), your option, if it is not then immediately exercisable in full and provided that it has not
expired, shall become immediately exercisable in full and shall remain exercisable in full. In addition, under certain circumstances as described in Section 12(b) of the attached Plan, you may
have the right to receive cash instead of exercising your option. This right, called a Limited Right, may be automatically exercised under certain circumstances described in the attached Plan. You
will be informed of any Change in Control. 

        (b)    Notwithstanding
paragraphs 1(b), 3, 4 and 5, the provisions of this paragraph 9(b) will be applicable in the event of a termination of your
employment during the 60-day period following a Change in Control. Your option shall not terminate or cease to be exercisable as a result of the termination of your employment during this
period, but shall be exercisable in full throughout it; provided, however, that in no event shall your option be exercisable after seven years from its date of grant (except in the event of death as
provided in paragraph 3 above). However, in the event that on the date of termination you have not held your option for more than six (6) months, the preceding sentence shall apply only
if your employment has been terminated other than for just cause (as defined below) or you have voluntarily terminated your employment for certain reasons: (i) because you in good faith
believe that as a result of the Change in Control you are unable effectively to discharge your duties or the duties of the position you occupied immediately prior to the Change in Control, or
(ii) because of a reduction in your aggregate compensation or in your aggregate benefits below that in effect immediately prior to the Change in Control. For purposes of
this paragraph, termination shall be for "just cause" only if it is based on fraud, misappropriation or embezzlement on your part which results in a final conviction of a felony. Nothing in this
paragraph 9(b) limits any rights otherwise provided in the event of your death, disability or Retirement (as defined in paragraph 4 above), or your right to exercise your
option following a termination of employment as provided in paragraph 5. 

        10.    Stockholder
Rights.    Neither you nor any other person shall have any rights of a stockholder as to shares under the option
until, after proper exercise of the option, such shares shall have been recorded on Fortune's official stockholder records as having been issued or transferred. 

        11.    Notice
of Exercise.    Subject to these terms and conditions, the option may be exercised either electronically through the
on-line process administered by the Stock Plans Administrator or by telephone via a Stock Plans Administrator customer service representative or an automated telephone system. When
providing notice of exercise, you must indicate the number of shares as to which the option is being exercised. If notice of exercise is not given to the Stock Plans Administrator (or other
person or entity designated by Fortune), by the applicable expiration date specified in paragraphs 3, 4, 5 and 9, the notice will be deemed null and void and of 

2

 

no
effect. If notice of exercise of the option is given by a person other than you, Fortune may require as a condition to exercising the option that appropriate proof of the right of such person to
exercise the option be submitted to Fortune. Certificates for any shares purchased upon exercise will be issued and delivered as soon as practicable. 

        12.    Exercise
of Limited Right.    In the event a Limited Right referred to in paragraph 9 becomes exercisable, it shall be
exercised in whole or in part by giving notice of such exercise, in the manner described in paragraph 11, to the Stock Plans Administrator (or other person or entity designated by
Fortune). No written notice is required if the Limited Right is automatically exercised as provided in Section 12(b) of the attached Plan. The exercise will be effective as of the date of
exercise, but not earlier than the date notice is actually provided to the Stock Plans Administrator in the manner described in paragraph 11. The notice must be actually received by the Stock
Plans Administrator by no later than the close of business on the last day of the applicable Limited Right Exercise Period, as defined in the attached Plan (or the date the related option
expires, whichever is earlier). 

        13.    Payment
of Option Price.    Except for a "cashless exercise" described below, payment in full of the option price must be received
by the Stock Plans Administrator by the date of exercise. You may pay the option price for shares (i) in cash, (ii) by the delivery of shares of Fortune Common Stock that have been held
by you for at least one year and that have a total market value equal to the option price, or (iii) by a combination of cash and such shares that have been held by you for a period of at least
one year and that have a total market value which, together with such cash, equals the option price. The "market value" of shares or per share of Fortune Common Stock as of any date means the value
determined by reference to the closing price of a share of Fortune Common Stock as finally reported on the New York Stock Exchange for the trading day next preceding such date. You may also pay
the option price from the proceeds of the sale of shares covered by the option, called a cashless exercise, to the extent permitted under the "cashless exercise" process approved by
the Committee. 

        14.    Tax
Withholding.    You agree to notify the Stock Plans Administrator in the event the shares acquired by you upon exercise of any
portion of your option are sold or otherwise disposed of within one year from the date of exercise. If and to the extent Federal income tax withholding (and state and local income tax
withholding, if applicable) may be required by the Company in respect of taxes on income realized by you upon or after exercise of any portion of the option, or upon disposition of the shares acquired
thereby, the Company may withhold such required amounts from your future paychecks or may require that you deliver to the Company the amounts to be withheld. In addition, you may pay the minimum
required Federal income tax withholding (and state and local income tax withholding, if applicable) by electing either to have the Company withhold a portion of the shares of Common Stock
otherwise issuable upon exercise of the option, or to deliver other shares of Common Stock owned by you, in either case having a fair market value (on the date that the withholding amount is to
be determined) of the minimum amount required to be withheld, provided that the election shall be irrevocable and shall be subject to such rules as the Committee may adopt. You may also arrange to
have any tax (or taxes) paid directly to the Company on your behalf from the proceeds of the sale of Common Stock to the extent provided in the notice of exercise referred to in
paragraph 11. 

3

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Exhibit 10.64  

FEBRUARY 2007  

 
 

PERFORMANCE STOCK AWARD
  TERMS AND CONDITIONS  
    

You
have been granted a performance stock award under the Fortune Brands, Inc. 2003 Long-Term Incentive Plan (the "Plan"). 

The
date of the grant, the minimum performance award, the target performance award and the maximum performance award are listed at the top of your Notice of Performance Stock Award. The average per
share targets and the minimum and maximum ending annual return on invested capital and earnings per share targets for the performance period are set forth in the Matrix attached to your Notice of
Performance Stock Award. 

        1.
Number of Shares Payable Pursuant to Award. Subject to the provisions of paragraphs 5 through 13 below, the number of shares of Common Stock
of Fortune Brands, Inc. ("Fortune") payable to you pursuant to your award shall be determined as follows: 

        (a)
If the Ending Annual Return on Invested Capital and Cumulative Earnings Per Share (as determined pursuant to paragraph 2) of Fortune and its consolidated subsidiaries
(the "Company") for the performance period equals the minimum goal for that performance period as set forth in the attached Matrix, the number of shares payable to you will be your minimum
performance award set forth on the Notice of Performance Stock Award. 

        (b)
If the Ending Annual Return on Invested Capital and Cumulative Earnings Per Share (as determined pursuant to paragraph 2) of the Company for the performance period
equals or exceeds the maximum goal for that performance period as set forth in the attached Matrix, the number of shares payable to you will be your maximum performance award set forth on the Notice
of Performance Stock Award. 

        (c)
If the Ending Annual Return on Invested Capital and Cumulative Earnings Per Share (as determined pursuant to paragraph 2) of the Company for the performance period
exceeds the minimum goal for the performance period, but is less than the maximum goal for the performance period, the number of shares payable to you will be interpolated between the goals set forth
in the attached Matrix within the range in which the Ending Annual Return on Invested Capital and Cumulative Earnings Per Share fall. 

        (d)
No shares shall be payable for any performance period if the Ending Annual Return on Invested Capital and Cumulative Earnings Per Share (as determined pursuant to
paragraph 2) for the performance period is less than the minimum goal for that performance period. 

        Subject
to the provisions of paragraphs 5 through 13, the shares of Common Stock of Fortune payable to you pursuant to this performance award with respect to any
performance period shall be paid by Fortune as soon as practicable after the end of that performance period and after the committee of the Board of Directors of Fortune administering the Plan (which
is currently the Compensation and Stock Option Committee, or "Committee") certifies attainment of the performance goals. 

        2.
Determination of Ending Annual Return on Invested Capital and Cumulative Earnings Per Share. "Ending Annual Return on Invested Capital" for any
performance period means adjusted net income in the last year of the performance period divided by average invested capital for the same period. "Cumulative Earnings Per Share" means the cumulative
diluted earnings per share of Fortune during the performance period, adjusted to eliminate restructuring and other nonrecurring charges and credits (including all related costs and expenses). 

        3.
Dividend Equivalents. Subject to the provisions of paragraphs 5, 6, 7, 9, 11, 12 and 13, with respect to the performance period you shall be
paid, on the date of payment of any shares with respect to the performance period pursuant to paragraph 1, a cash Dividend Equivalent that is equal to the amount of the cash dividends that
would have been declared on that number of shares actually paid to you if such shares had been issued and 

1

 

outstanding
on any record date for the payment of any cash dividends on Common Stock of Fortune during the performance period and prior to the date of payment of such shares. Such Dividend Equivalent
shall be paid, subject to paragraph 16, on the date of payment of such shares pursuant to paragraph 1. Payment of any Dividend Equivalent shall be made by delivery to you of a check of
Fortune in the amount of such Dividend Equivalent or in such other manner as is determined by the Committee. 

        4.
Transferability of Award. This performance award shall not be transferable by you otherwise than by will or by the laws of descent and distribution. 

        5.
Termination of Employment for Death, Disability, Retirement or Elimination of Position. If your employment by the Company terminates during any
performance period by reason of your death, disability, retirement under a retirement plan of the Company or the elimination of your position, you will be entitled to receive as soon as practicable
after the end of that performance period and after the Committee certifies that performance goals have been attained for that performance period, a payment of the number of shares of Common Stock, if
any, that would otherwise be payable pursuant to paragraph 1. Also in the event of such a termination of employment, you will be paid, on the date of payment of any shares paid pursuant
to the preceding sentence, Dividend Equivalents pursuant to paragraph 3, and you will not be entitled to be credited with or to receive any other Dividend Equivalents. 

        6.
Termination of Employment for Other Reasons. Except as otherwise provided in paragraphs 9 through 13 below, if your employment by the
Company terminates during a performance period other than by reason of your death, disability, retirement under a retirement plan of the Company or the elimination of your position, you will not be
entitled to any payment of shares pursuant to paragraph 1 with respect to that performance period and will not be entitled to receive payment pursuant to paragraph 3 of any Dividend
Equivalent. 

        7.
Forfeiture of Award for Detrimental Activity. If you engage in detrimental activity at any time (whether before or after termination of your employment),
you will not be entitled to any payment of shares or Dividend Equivalents hereunder and you will forfeit all rights with respect to these payments. For purposes of this paragraph 7,
"detrimental activity" means willful, reckless or grossly negligent activity that is determined by the Committee to be detrimental to or destructive of the business or property of the Company. Any
such determination of the Committee shall be final and binding for all purposes. Notwithstanding the foregoing, no payment under the Plan shall be forfeited or become not payable by virtue of this
paragraph 7 on or after the date of a Change in Control (as defined in the Plan). 

        8.
Stock Exchange Listing; Fractional Shares. Fortune shall not be obligated to deliver any shares until they have been listed (or authorized for
listing upon official notice of issuance) upon each stock exchange upon
which are listed outstanding shares of the same class as that of the shares subject to the award and until there has been compliance with such laws or regulations as Fortune may deem applicable.
Fortune agrees to use its best efforts to effect such listing and compliance. No fractional shares (or any cash payment in lieu thereof) will be delivered and the number of shares to be
delivered will be rounded up or down to the nearest whole share. 

        9.
Transfer of Employment; Leave of Absence. For the purposes of this Agreement, (a) a transfer of your employment from Fortune to a subsidiary or
vice versa, or from one subsidiary to another, without an intervening period, shall not be deemed a termination of employment, and (b) if you are granted in writing a leave of absence, you
shall be deemed to have remained in the employ of Fortune or a subsidiary during such leave of absence. 

        10.
Investment Representations. Prior to each issuance of shares of Common Stock payable hereunder, you shall make such representations as may be required
that such shares are to be held for investment purposes and not with a view to or for resale or distribution except in compliance with the Securities Act of 1933, as amended
(the "Securities Act"), and shall, if required by the Committee, give a written undertaking to Fortune in form and substance satisfactory to the Committee that you will not publicly offer or
sell or otherwise distribute such shares other than (a) in the manner and to the extent permitted by Rule 144 promulgated by the Securities and Exchange Commission under the Securities
Act, (b) pursuant to any other exemption from the registration provisions of the Securities Act or (c) pursuant to an effective registration statement under the Securities Act. 

        11.
Adjustments. (a) In the event of any merger, consolidation, stock or other non-cash dividend, extraordinary cash dividend,
split-up, spin-off, combination or exchange of shares, reorganization or 

2

 

recapitalization
or change in capitalization, changes in accounting, tax or legal rules, or any other similar corporate event, the number and kind of shares that are covered by your award (including,
in the case of any such event other than an extraordinary cash dividend, the number of shares in respect of which Dividend Equivalents may be credited and paid pursuant to paragraph 3)
immediately prior to such event may be proportionately and appropriately adjusted. 

        (b)
Adjustments (which may be increases or decreases) may be made by the Committee in the Ending Annual Return on Invested Capital and Cumulative Earnings Per Share targets to take into
account changes in law and accounting and tax rules and to make such adjustments as the Committee deems necessary or appropriate to reflect the inclusion or exclusion of the impact of extraordinary or
unusual items, events or circumstances, including, without limitation, acquisitions or divestitures by or other material changes in the Company, provided that no adjustment shall be made which would
result in an increase in your compensation if your compensation is subject to the limitation on deductibility under Section 162(m) of the Internal Revenue Code, as amended, or any successor
provision, for the year with respect to which the adjustment occurs. The Committee also may adjust the performance goals and measurements applicable to Performance Awards and thereby reduce the amount
to be received by any Participant pursuant to such Awards if and to the extent that the Committee deems it appropriate, provided that no such reduction shall be made on or after the date of a Change
in Control (as defined the Plan). 

        (c)
The determination of the Committee as to the terms of any adjustment made pursuant to this paragraph 11 shall be binding and conclusive upon you and any other person or
persons who are at any time entitled to receipt of any payment pursuant to the award. 

        12.
Change in Control of Fortune. (a) Notwithstanding any other provision hereof, in the event that your employment is terminated on or after a
Change in Control (as defined in the Plan) (i) by the Company other than for just cause (as defined in paragraph 12(b)) or (ii) by you because you in good
faith believe that as a result of the Change in Control you are unable effectively to discharge your duties or the duties of the position you occupied immediately prior to the Change in Control
or because of a diminution in your aggregate annual compensation or in your aggregate benefits below that in effect immediately prior to the Change in Control, your award shall become nonforfeitable
and shall be paid out on the date your employment is so terminated (x) as if each performance period hereunder had been completed or satisfied and as if the Ending Annual Return on Invested
Capital and Cumulative Earnings Per Share for the Company for each performance period were sufficient to enable a payment to you pursuant to paragraph 1(c) of the number of shares that is equal
to the mean of the minimum and maximum performance award set forth herein with respect to that performance period, but (y) pro-rated for the portion of the performance period that
elapsed prior to the termination of employment. Also in the event of such a termination of your employment, you will be entitled to receive payment pursuant to paragraph 3 of any Dividend
Equivalent that would have been declared, in respect of the shares you receive, during the performance period and prior to the date of payment of such shares, but will not be entitled to be credited
with or to receive any other Dividend Equivalents. 

        (b)
For purposes of paragraph 12(a), termination shall be for "just cause" only if such termination is based on fraud, misappropriation or embezzlement on your part which results
in a final conviction of a felony. 

        13.
Divestiture; Termination of Plan. (a) In the event that your principal employer is a subsidiary of Fortune that ceases to be such, then your employment
shall be deemed to be terminated for all purposes hereof as of the date on which your principal employer ceases to be a subsidiary of Fortune (called the Divestiture Date) and your award shall become
nonforfeitable and shall be paid out on the Divestiture Date (x) as if the performance period hereunder had been completed or satisfied and as if the Ending Annual Return on Invested Capital
and Cumulative Earnings Per Share for the Company for that performance period were sufficient to enable a payment to you pursuant to paragraph 1(c) of the number of shares that is equal to the
mean of the minimum and maximum performance award set forth herein with respect to the performance period, but (y) pro-rated for the portion of the performance period that elapsed
prior to the Divestiture Date, all as determined by the Committee. Also in the event of such a deemed termination of employment, you will be entitled to receive payment pursuant to paragraph 3
of any Dividend Equivalent that would have been declared, in respect of the 

3

 

shares
you receive, during the performance period and prior to the Divestiture Date, but will not be entitled to be credited with or to receive any other Dividend Equivalents. 

        (b)
In the event of a termination of the Plan, then your employment shall be deemed to be terminated for all purposes under the Plan as of the date of termination of the Plan and
the provisions of paragraph 13(a)
will apply to your award with the same effect as if the date of termination of the Plan were a Divestiture Date. 

        14.
Accountants' Letter. As soon as practicable after the end of each performance period, a letter shall be obtained from the independent certified public
accountants who have performed procedures to assist in evaluating compliance with the calculation of the Ending Annual Return on Invested Capital and Cumulative Earning Per Share of the Company for
the performance period. 

        15.
Stockholder Rights. Neither you nor any other person shall have any rights of a stockholder as to shares until such shares shall have been recorded on
Fortune's official stockholder records as having been issued or transferred. 

        16.
Tax Withholding. Upon any payment to you of shares of Common Stock hereunder or upon any payment to you of any Dividend Equivalents hereunder, Federal
income and other tax withholding (and state and local income tax withholding, if applicable) may be required by the Company in respect of taxes on income realized by you. The Company may
withhold such required amounts from your future paychecks or from, if applicable, such Dividend Equivalents or may require that you deliver to the Company the amounts to be withheld. In addition, upon
any payment to you of shares hereunder, you may pay any Federal income and other tax withholding (and any state and local income tax withholding, if applicable) by electing either to have the
Company withhold a portion of the shares of Common Stock otherwise deliverable to you, or to deliver other shares of Common Stock owned by you, in either case having a fair market value (on the
date that the amount of tax you have elected to have withheld is to be determined) of the amount to be withheld, provided that the election shall be irrevocable and shall be subject to such rules as
the Committee may adopt. 

        17.
Governing Law. This agreement and the award provided for hereunder shall be governed by and construed in accordance with the laws of the State
of Delaware. 

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PERFORMANCE STOCK AWARD TERMS AND CONDITIONS

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