Document:

EX-10.4

Exhibit 10.4

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

     AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) dated as of the 15th day of
July 2008, between Barr Pharmaceuticals, Inc. (the “Company”), a Delaware
corporation having its principal executive offices at 225 Summit Avenue, Montvale, New Jersey
07645-1523, and Frederick J. Killion (the “Employee”).

WITNESSETH:

     WHEREAS, the Company and the Employee entered into an employment agreement dated as of
February 8, 2002, which was amended and restated as of February 19, 2003, August 19, 2005 and
January 4, 2006 (as so amended and restated, the “Prior Agreement”);

     WHEREAS, the Company and the Employee wish to amend and restate the Prior Agreement;

     WHEREAS, the Company wishes to assure itself of the services of the Employee and provide an
inducement for the Employee to remain in its employ; and

     WHEREAS, the Employee is willing to remain in the employ of the Company on the terms and
conditions hereafter set forth;

     NOW, THEREFORE, the Company and the Employee hereby agree that, effective as of the date first
stated above, the Prior Agreement is amended and restated in its entirety to read as follows:

     1. Employment. The Company agrees to employ the Employee, and the Employee agrees to serve
in the employ of the Company, during the term of this Agreement on the terms and conditions
hereafter set forth.

     2. Term. The term of this Agreement shall commence on July 15, 2008 (the
“Commencement Date”) and shall terminate at 5 P.M. (E.S.T.) on December 31, 2009 unless
sooner terminated in accordance with the terms of this Agreement or extended as hereinafter
provided. The term of this Agreement shall be extended, without further action by the Company or
the Employee, on the date (the “Extension Effective Date”) that is six (6) months before
December 31, 2009 and on the date (also an “Extension Effective Date”) that is six (6)
months before each subsequent December 31, for successive periods of twelve (12) months each,
unless the Company shall have given written notice to the Employee, or the Employee shall have
given written notice to the Company, in the manner set forth in paragraph 13(e) or (f) below, prior
to the Extension Effective Date in question, that the term of this Agreement that is in effect at
the time such written notice is given is not to be extended or further extended, as the case may
be.

     3. Position and Responsibilities; Place of Performance.

          (a) Throughout the term of this Agreement, the Employee agrees to serve in the employ of the
Company, and the Company agrees to employ the Employee, as its Executive Vice President, General
Counsel and Secretary and as Executive Vice President, General Counsel and Secretary of Barr
Laboratories, Inc. (“BLI”), reporting to the Chairman of the Board of Directors and Chief
Executive Officer of the Company (the “CEO”). As the Company’s

 

 

Executive Vice President, General Counsel and Secretary and the Executive Vice President,
General Counsel and Secretary of BLI, the Employee shall be responsible for managing and
supervising, and shall have responsibility for the day-to-day conduct of, the Company’s legal
affairs, including managing and supervising internal and external counsel of the Company, BLI and
such other Subsidiaries as the Company shall determine from time to time, subject to the authority
of the Company’s Board of Directors (the “Board”), the CEO and the Chief Operating Officer
of BLI (the “COO”), and shall have all of the powers, authority, duties and
responsibilities usually incident to the position and role of Executive Vice President, General
Counsel and Secretary in public companies that are comparable in size, character and performance to
the Company (including the Company’s interests in BLI and other Affiliates) and shall perform such
other reasonable duties, consistent with the position of Executive Vice President, General Counsel
and Secretary, as may lawfully be assigned to the Employee by the Board, the CEO or the COO.

          (b) In connection with the Employee’s employment by the Company, the Employee shall be based
at the executive offices of the Company in the greater Washington, D.C., metropolitan area, and the
Employee agrees to travel, to the extent reasonably necessary to perform the Employee’s duties and
obligations under this Agreement, to Company facilities and other destinations elsewhere at the
Company’s expense.

          (c) During the term of this Agreement, the Employee shall serve the Company on an exclusive
basis (it being understood that the Employee’s engaging in activities on behalf of an Affiliate
shall be deemed serving the Company for this purpose) and shall devote all the Employee’s business
time, attention, skill and efforts to the faithful performance of the Employee’s duties hereunder;
provided that the Employee may engage in community service and charitable activities or such other
activities as approved by the CEO and the Board that do not materially interfere with the
performance of the Employee’s duties and responsibilities hereunder.

     4. Compensation. For all services rendered by the Employee in any capacity during the
term of this Agreement, and for the Employee’s undertakings with respect to confidential
information, non-solicitation and disparaging remarks set forth in Sections 6 and 7 below, the
Employee shall be entitled to the following:

          (a) a salary, payable in installments not less frequent than monthly, at the annual rate of
five hundred and seventy-five thousand dollars ($575,000), with such increases in such rate, if
any, as the Board or a committee of the Board may approve from time to time during the term of this
Agreement in accordance with the Company’s regular administrative practices applicable to senior
officers from time to time during the term of this Agreement (the Employee’s annual salary rate as
increased from time to time during the term of this Agreement being hereafter referred to as the
“Base Salary”);

          (b) participation in the Company’s annual executive incentive or bonus plan as in effect from
time to time, with the opportunity to receive, for each fiscal year of the Company that begins or
ends during the term of this Agreement, a target award of fifty percent (50%) of the Base Salary
earned during such year (or such higher amount as the Board or a committee of the Board may
determine, in its discretion, up to a maximum of the lesser of (i) one hundred percent (100%) of
Base Salary earned during such year or (ii) three percent (3%) of the

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Company’s pre-tax and pre-bonus net operating income for such year), in accordance with the
terms and conditions of such incentive or bonus plan, it being understood that any award for the
fiscal year of the Company in which the term of this Agreement terminates pursuant to the terms
hereof shall be prorated based on the portion of such fiscal year that coincides with the term of
this Agreement and shall be made at the same time as awards (if any) are made to other participants
with respect to such
fiscal year. The Company will pay the Employee’s annual incentive bonus for each year at the same
time as annual incentive bonus payments for such year (if any) are made to other participants with
respect to such fiscal year, and in all events within the two and one half (21/2) months following
the end of the calendar year in which the bonus is earned. Annual incentive bonuses are intended to
qualify for the short-term deferral exception to Section 409A of the Internal Revenue Code of 1986,
as amended (the “Code”);

          (c) participation in the stock incentive plan applicable to Company officers as from time to
time in effect, subject to the terms and conditions of such plan;

          (d) the business and personal use of an automobile at Company expense including, without
limitation, payment or reimbursement of automobile insurance and maintenance expenses, or a cash
allowance in lieu thereof, in accordance with the Company’s automobile policy applicable to
similarly situated senior officers; and

          (e) participation in all health, welfare, savings and other employee benefit and fringe
benefit plans (including vacation pay plans or policies and life and disability insurance plans) in
which other senior officers of the Company participate during the term of this Agreement, subject
in all events to the terms and conditions of such plans as in effect from time to time. Nothing in
this paragraph (e) shall preclude the Company or an Affiliate from amending or terminating any such
plan at any time prior to a Change in Control or Potential Change in Control; provided that in no
event shall the Employee be entitled to less than four (4) weeks of vacation with pay per year of
employment. The plans covered by this paragraph (e) shall not include the annual incentive or
stock incentive plans, which are covered by paragraphs (b) and
(c) above.

     5. Termination of Employment.

          (a) Termination by the Company without Good Cause or by the Employee for Good Reason;
Non-Renewal Termination.

     (i) If the Employee’s employment with the Company is terminated by the Company without
Good Cause (except as an incident of assigning the rights to Employee’s services to a
Permitted Assignee in accordance with paragraph 13(d) below) when the Employee is willing
and able to continue performing service, or is terminated by the Employee for Good Reason,
in either case during the term of this Agreement and other than at the expiration of the
term of this Agreement as the same may have been extended in accordance with the provisions
of Section 2 above (any such employment termination being hereafter referred to as a
“Compensable Termination”), the Company shall pay the Employee, in accordance with
normal payroll practices, the portion of the Employee’s Base Salary accrued through the date
of the Compensable Termination and any other amounts to which the Employee is entitled by
law or pursuant to the terms of any compensation or benefit plan or arrangement in which the
Employee participated

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prior to the Compensable Termination and, in addition, subject to all
of the provisions of this Section 5, Section 14 below, and further subject to compliance by
the Employee with the provisions of Sections 6 and 7 below, relating to confidential
information, non-solicitation and disparaging remarks, the Company shall, as liquidated
damages or severance pay or both (whichever characterization(s) will serve to validate the
payments), and as additional consideration for the Employee’s undertakings under Sections 6
and 7 below, pay the Employee the following:

     (A) the Employee’s annual bonus for the fiscal year of the Company preceding the fiscal year
of the Company in which the Compensable Termination occurs, if unpaid at the time of the
Compensable
Termination. Such annual bonus shall be paid at the same time as bonuses (if any) for such
preceding fiscal year are paid to other officers, and in all events within the first two and one
half (21/2) months of the fiscal year in which the Compensable Termination occurs. The amount of
such bonus shall be determined by the Board or a committee of the Board on a basis consistent with
the prior bonus determinations with respect to the Employee or, in the event a Change in Control or
Potential Change in Control (as defined in Section 11 below) occurred before the Compensable
Termination, consistent with the bonus determinations with respect to the Employee prior to the
Change in Control or Potential Change in Control. If the Board or a committee of the Board made no
bonus determinations with respect to the Employee before the Compensable Termination or, if
applicable, before the Change in Control or Potential Change in Control, the amount of such bonus
shall be determined on a basis consistent with the Board’s or Board committee’s bonus
determinations with respect to other Executive Vice Presidents before the Compensable Termination
or, if applicable, before the Change in Control or Potential Change in Control; and

     (B) a prorated annual bonus for the fiscal year of the Company in which the Compensable
Termination occurs, payable at the same time as bonuses (if any) for such fiscal year are paid to
other officers, and in all events within the first two and one half (21/2) months of the fiscal year
following the fiscal year in which the Compensable Termination occurs. Such prorated annual bonus
shall be determined by multiplying the “Applicable Average Bonus” as defined below in this
subparagraph 5(a)(i)(B) by a fraction, the numerator of which shall be the number of days elapsed
in such fiscal year through (and including) the date on which the Compensable Termination occurs
and the denominator of which shall be the number three hundred sixty-five (365). For purposes of
this Agreement, the “Applicable Average Bonus” means the highest of (I) the average annual
bonus (including any portion of the bonus that is deferred) awarded to the Employee during the
three (3)-year period immediately preceding the Compensable Termination or, if the Employee was
employed by the Company for less than three (3) years before the Compensable Termination, during
the period of the Employee’s employment by the Company prior to the Compensable Termination
(annualizing any bonus awarded for less than a full year of employment), (II) the average annual
bonus (including any portion of the bonus that is deferred) awarded to the Employee during the
three (3) fiscal years of the Company that precede the fiscal year in which the Compensable
Termination

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occurs or during the portion of such three (3) fiscal years in which the Employee was employed
by the Company (annualizing any bonus awarded for less than a full year of employment); provided
that, if the Compensable Termination occurs after a Change in Control or Potential Change in
Control, the Applicable Average Bonus shall not be less than the average annual bonus (including
any portion of the bonus that is deferred) awarded to the Employee during the three (3) years
preceding the date on which the Change in Control or Potential Change in Control occurred or during
the portion of such three (3) years in which the Employee was employed by the Company (annualizing
any bonus awarded for less than a full year of employment); or (III) the Employee’s target bonus
(based on the greatest of (i) the Employee’s target bonus percentage and Base Salary rate as
specified in Section 4 above, (ii) the Employee’s approved target bonus percentage and Base Salary
rate in effect on the date of the Compensable Termination, or (iii) the Employee’s approved target
bonus percentage and Base Salary rate in effect on the date of notice of such Compensable
Termination); and

     (C) an amount of money (the “Severance Payment”) equal to two (2) times the Employee’s
“Annual Cash Compensation” as hereafter defined, unless the Severance Payment is payable solely on
account of the Employee’s resignation for Good Reason pursuant to subparagraph 5(d)(v) below
(relating to the Company giving the Employee notice of non-extension), in which case the Severance
Payment shall be equal to one and one-quarter (11/4) times the Employee’s “Annual Cash Compensation”
as hereafter defined. Except as otherwise provided hereafter in this subparagraph 5(a)(i)(C) and
Section 14,
seventy-five percent (75%) of the Severance Payment shall be paid in a lump sum within ten (10)
days after the date of the Compensable Termination. The twenty-five percent (25%) balance of the
Severance Payment shall be paid in six (6) equal monthly installments, one (1) of which shall be
paid at the end of each of the first six (6) months after the date of the Compensable Termination,
provided, in the case of each of such six (6) installments, that the Employee has not accepted
full-time or regular part-time employment with or regularly served as a consultant to a for-profit
pharmaceutical company prior to the date for payment of such installment, it being understood and
agreed that the foregoing condition shall not be violated by the Employee’s serving as a member of
a board of directors of a for-profit pharmaceutical company or by his performing consulting
services on an ad hoc basis for such a company. If a Change in Control occurs that is a
“change in control event” within the meaning of Code Section 409A and Treasury Regulation
§1.409A-3(i)(5)(i) (or any similar or successor provisions) (either before or after the Compensable
Termination and in accordance with Treasury Regulation §1.409A-3(c)), the Severance Payment (or, in
the case of such a “change in control event” that occurs after the Compensable Termination, any
portion thereof that remains unpaid at the time such “change in control event” occurs) shall be
paid in a lump sum within ten (10) days after the Compensable Termination (or, in the case of such
a “change in control event” that occurs after the Compensable Termination, within ten (10) days
after the “change in control event” occurs), and the two (2) preceding sentences of this
subparagraph shall not apply. For twenty-four (24) months following a Compensable Termination, the

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Company shall also provide the Employee (and, as applicable, the Employee’s covered
dependents), at Company expense, with continuation coverage under the Company’s group health
plan(s) covering similarly situated executives. For purposes of this Section 5, the
Employee’s “Annual Cash Compensation” shall mean the sum of (I) the Employee’s
highest Base Salary (i.e., one (1) year’s salary at its highest rate), plus (II) the
“Applicable Average Bonus” as defined in subparagraph 5(a)(i)(B) above.

     (ii) If the term of this Agreement as the same may have been extended in accordance with the
provisions of Section 2 above is not extended or further extended because the Company gives written
notice of non-extension to the Employee as provided in Section 2 above, and there is not Good Cause
for termination of the Employee’s employment at the time of giving such notice, and the Employee
does not thereafter resign for Good Reason during the term of this Agreement as permitted by
paragraph 5(d)(v) below, and the Employee is willing and able to renew or execute a new agreement
providing terms and conditions substantially similar to those in this Agreement and to continue
providing such services, then the Company shall pay the Employee, subject to fulfillment by the
Employee of the Employee’s obligations under this Agreement during the balance of the term and the
Employee’s compliance with the provisions of Sections 6 and 7 below, relating to confidential
information, non-solicitation and disparaging remarks, as non-renewal compensation, and as
additional consideration for the Employee’s undertakings under this Agreement, including Sections 6
and 7 below, an amount of money (the “Non-Renewal Payment”) equal to one and one-quarter
(11/4) times the Employee’s Annual Cash Compensation as defined in subparagraph 5(a)(i)(C) above, in
addition to any other amounts to which the Employee may be entitled hereunder (including without
limitation the Employee’s annual bonus pursuant to paragraph 4(b) above for the fiscal year of the
Company in which the Employee’s employment terminates and any amounts to which the Employee may be
entitled under Section 8, 9 or 10 below) or by law or pursuant to the terms of any compensation or
benefit plan or arrangement in which the Employee participated before the Employee’s employment
terminated. Except as otherwise provided hereafter in this subparagraph 5(a)(ii), seventy-five
percent (75%) of the Non-Renewal Payment shall be paid in a lump sum within ten
(10) days after the date on which the Employee’s employment terminates, subject to paragraph
5(f) and Section 14. The twenty-five percent (25%) balance of the Non-Renewal Payment shall be paid
in six (6) equal monthly installments one (1) of which shall be paid at the end of each of the
first six (6) months after the date on which the Employee’s employment terminates. If a Change in
Control occurs that is a “change in control event” within the meaning of Code Section 409A and
Treasury Regulation §1.409A-3(i)(5)(i) (or any similar or successor provisions) (either before or
after the Employee’s termination and in accordance with Treasury Regulation §1.409A-3(c)), the
Non-Renewal Payment (or, in the case of such a “change in control event” that occurs after the
Employee’s termination, any portion thereof that remains unpaid at the time such “change in control
event” occurs) shall be paid in a lump sum within ten (10) days after the date on which the
Employee’s employment terminates (or, in the case of such a “change in control event” that occurs
after the Employee’s termination, within ten (10) days after the “change in control event” occurs),
and the two (2) preceding sentences of this subparagraph shall not apply. For twenty-four (24)
months following the Employee’s

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termination, the Company shall also provide the Employee (and, as applicable, the Employee’s
covered dependents), at Company expense, with continuation coverage under the Company’s
group health plan(s) covering similarly situated executives.

     (iii) The foregoing provisions of (including any payments under) this paragraph 5(a)
shall be in lieu of any severance pay that may be payable under any plan or practice of the
Company, any other Subsidiary or Affiliate (as such terms are defined in Section 11 below),
or by law (including the WARN Act or any similar state or foreign law), but shall be in
addition to (and not in lieu of) any payments to which the Employee may be entitled under
Sections 8, 9 and 10 below. Subparagraphs 5(a)(i)(C) and 5(a)(ii) above are intended to be
mutually exclusive, and in no event shall such subparagraphs, either individually or
collectively, be construed to require the Company to pay an amount of money in excess of two
(2) times the Employee’s Annual Cash Compensation under such subparagraphs, either
individually or collectively, in addition to continuation coverage under the Company’s group
health plan(s) covering similarly situated executives provided by the Company to the
Employee (and, as applicable, the Employee’s covered dependents), at Company expense, for
twenty-four (24) months.

     (iv) The Employee shall not be required to mitigate the amount of any payment or benefit
provided for in this Agreement (including but not limited to any payment provided for above in this
paragraph 5(a)) by seeking other employment or otherwise, nor shall any compensation earned by the
Employee in other employment or otherwise reduce the amount of any payment or benefit provided for
in this Agreement, except as provided in subparagraphs 5(a)(i)(C) and 5(a)(ii) above.

     (v) A Compensable Termination shall not include a termination of employment by reason of the
Employee’s death.

          (b) Termination by the Company for Good Cause or by the Employee without Good Reason.
If, during the term of this Agreement, the Employee’s employment by the Company is terminated by
the Company for Good Cause or by the Employee without Good Reason, the Employee shall not be
entitled to receive any compensation under Section 4 above accruing after the date of such
termination or any payment under paragraph 5(a) above. However, any obligations of the Company
under Sections 8, 9 and 10 shall not be affected by such termination of employment. The provisions
of this paragraph 5(b) shall be in addition to, and not in lieu of, any other rights and remedies
the Company may have at law or in equity or under any other provision of this Agreement in respect
of such termination of employment. However, if during the term of this Agreement the Employee’s employment is terminated by the
Employee without Good Reason and the Employee gives the Company at least one hundred twenty (120)
days’ advance notice of such termination, then the Employee shall not have any obligation or
liability under this Agreement on account of such termination of employment, but the Employee’s
obligations under Section 6 and 7 hereof shall not be affected by such termination of employment.

          (c) Good Cause Defined. For purposes of this Agreement, the Company and the Affiliates
shall have “Good Cause” to terminate the Employee’s employment by the Company during the
term of this Agreement only if:

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     (i) (A) the Employee fails to substantially perform the Employee’s duties hereunder for any
reason or to devote substantially all the Employee’s business time exclusively to the affairs of
the Company (including Company activities on behalf of the other Affiliates), other than by reason
of a medical condition that prevents the Employee from substantially performing the Employee’s
duties hereunder even with a reasonable accommodation by the Company, and (B) such failure is not
discontinued within a reasonable period of time, in no event to exceed thirty (30) days, after the
Employee receives written notice from the Company of such failure; or

     (ii) the Employee commits an act of dishonesty resulting or intended to result directly or
indirectly in gain or personal enrichment at the expense of the Company, or engages in conduct that
constitutes a felony in the jurisdiction in which the Employee engages in such conduct; or

     (iii) the Employee is grossly negligent or engages in willful misconduct or
insubordination in the performance of the Employee’s duties hereunder; or

     (iv) the Employee materially breaches the Employee’s obligations under Section 6 or
paragraph 7(a) below, relating to confidential information and non-solicitation.

     In addition, the Employee’s employment shall be deemed to have terminated for Good Cause if,
after the Employee’s employment has terminated, facts and circumstances arising during the course
of the Employee’s employment are discovered that would have justified a termination for Good Cause
under subparagraphs 5(c)(ii) or (iv) above.

     Any foregoing provision of this paragraph 5(c) to the contrary notwithstanding, the Company
and the Affiliates shall not have “Good Cause” to terminate the Employee’s employment within three
(3) years after a Change in Control or Potential Change in Control (as such terms are defined in
Section 11 below) unless (A) the Employee’s act or omission is willful and has a material adverse
effect upon the Company, (B) the Board gives the Employee (I) written notice warning of its
intention to terminate the Employee for Good Cause if the specified act or omission alleged to
constitute Good Cause is not discontinued and, if curable, cured, and
(II) a reasonable opportunity after receipt of such written notice, but in no event less than
two (2) weeks, to discontinue and, if curable, cure the conduct alleged to constitute Good Cause,
and (C) the Employee fails to discontinue and, if curable, cure the act or omission in question;
provided that clauses (B) and (C) of this sentence shall not apply with respect to conduct on the
part of the Employee that constitutes a felony in the jurisdiction in which the Employee engages in
such conduct, and, provided further, that this sentence shall not apply to conduct involving moral
turpitude. For all purposes of this Agreement, no act, or failure to act, on the Employee’s part
shall be deemed “willful” unless done, or omitted to be done, by the Employee intentionally and in
bad faith (i.e., without reasonable belief that the Employee’s action or omission was in
furtherance of the interests of the Company, another
Subsidiary or Affiliate).

          (d) Good Reason Defined. For purposes of this Agreement, the Employee shall have
“Good Reason” to terminate employment during the term of this Agreement only if:

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     (i) the Company fails to pay or provide any amount or benefit that the Company is obligated to
pay or provide under Section 4 above or Section 8, 9, or 10 below and the failure is not remedied
within thirty (30) days after the Company receives written notice from the Employee of such
failure; or

     (ii) the Employee is assigned duties, responsibilities, or reporting relationships not
contemplated by Section 3 above without the Employee’s consent, or the Employee’s duties or
responsibilities or power or authority contemplated by Section 3 above are limited in any respect
materially detrimental to the Employee, and in either case the situation is not remedied within
thirty (30) days after the Company receives written notice from the Employee of the situation; or

     (iii) the Employee is removed from, or not elected or reelected to, the office, title or
position of Executive Vice President, General Counsel and Secretary of the Company and Executive
Vice President, General Counsel and Secretary of BLI, and the Company and the Affiliates do not
have Good Cause for doing so; or

     (iv) the Company relocates the Employee’s office outside of either the principal executive
offices of the Company in Washington, D.C., in either case without the Employee’s written consent
(given in a personal rather than representative capacity) and the situation is not remedied within
thirty (30) days after the Company receives written notice from the Employee of the situation; or

     (v) the Company gives the Employee written notice, in the manner set forth in paragraph 13(f)
below, prior to any Extension Effective Date, that the term of this Agreement that is in effect at
the time such written notice is given is not to be extended or further extended, as the case may
be; provided that the giving of such written notice to the Employee shall constitute Good Reason
only if and when the Employee shall have performed such of the Employee’s duties and
responsibilities for such period of time, in no event to exceed ninety (90) days after the giving
of such notice, as the CEO, another officer to whom the Employee reports in accordance with
paragraph 3(a) above, or the Board, may reasonably request in writing to transition the Employee’s
duties and responsibilities; or

     (vi) a Change in Control occurs and as a result thereof either (A) equity securities of the
Company cease to be publicly-traded, or (B) the Employee is not elected or designated to serve as
the sole Executive Vice President, General Counsel and Secretary of the Company or its survivor in
the Change in Control and sole Executive Vice President, General Counsel and Secretary of BLI or
its survivor in the Change in Control; or

     (vii) a Change in Control or Potential Change in Control occurs and (A) the dollar value of
the stock optioned to the Employee annually thereafter is less than the average annual dollar value
of the stock that was optioned to the Employee during the four (4) years prior to the Change in
Control or Potential Change in Control, or (B) the material terms of such options (including
without limitation vesting schedules) are less favorable to the Employee than the material terms of
the options that were granted to the Employee during the four (4) years prior to the Change in Control or Potential Change in

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Control, and in either case (A) or (B) the situation is not remedied
within thirty (30) days after the Company receives written notice from the Employee of the
situation. For purposes of (A) and (B) of this subparagraph 5(d)(vii), if free-standing stock
appreciation rights are granted to the Employee, the stock subject to such rights shall be
considered stock that is optioned to the Employee, and if alternative stock appreciation rights
(a/k/a tandem stock appreciation rights) are granted to the Employee, the stock
appreciation rights shall be considered terms of the options to which they are
alternative/tandem; or

     (viii) the Company or a Permitted Assignee attempts to assign any of its rights or
obligations under this Agreement other than in accordance with paragraph 13(d) below and
does not remedy the situation within thirty (30) days after the Company receives written
notice from the Employee of the situation; or

     (ix) the Company or any Subsidiary or Affiliate materially breaches the terms of this
Agreement.

     In no event shall the Employee’s continued employment after any of the foregoing constitute
the Employee’s consent to the act or omission in question, or a waiver of the Employee’s right to
terminate employment for Good Reason hereunder on account of such act or omission, except as
provided in the following sentence. With respect to any act, omission, or occurrence that is
alleged to occur after the Commencement Date and prior to a Change in Control or Potential Change
in Control, the Employee must provide the Company with written notice of any one (1) or more of the
conditions set forth in this definition of Good Reason within six (6) months of the initial
existence of the condition for such condition to constitute Good Reason. Such notice shall not
excuse the Employee from continuing to perform the duties and responsibilities assigned to the
Employee until such time as the Employee terminates employment. Notwithstanding the foregoing,
this notice requirement shall not apply to acts or omissions alleged to constitute Good Reason that
arise after a Change in Control or Potential Change in Control.

          (e) Disability 

     (i) Notwithstanding any provision of this Agreement to the contrary, (A) if during the term of
this Agreement as the same may be extended from time to time pursuant to Section 2 above, a medical
condition prevents the Employee, even with a reasonable accommodation by the Company, from
substantially performing the Employee’s duties hereunder (it being understood that a transitory
illness, such as a cold or flu, that prevents the Employee from substantially performing the
Employee’s duties hereunder during a brief period is not such a medical condition), then until the
date, if any, on which the Employee recovers from such medical condition (the “Evaluation
Period”), the Company may terminate the Employee’s employment only pursuant to subparagraph
5(e)(ii) below (a “Disability Termination”) or for willful misconduct constituting Good
Cause under paragraph 5(c) above, and (B) if any notice of non-extension of the term of this
Agreement was given before the Evaluation Period, or is given during the Evaluation Period, whether
by the Company or the Employee, pursuant to Section 2 above, and, but for this clause (B), the term
of this Agreement would expire during the Evaluation Period as a result of such notice of
non-extension having been given, then the term of this Agreement will automatically be extended
without action by

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any party until the Employee recovers from such medical condition. For purposes of this
paragraph 5(e), the Employee will be deemed to recover from a medical condition only if and when
the Employee both (I) has been able to substantially perform the Employee’s duties hereunder
(either with or without a reasonable accommodation by the Company) for more than six (6) months,
consecutive or non-consecutive, within any period of twelve (12) or fewer consecutive months
commencing on or after the commencement of the Evaluation Period, and (II) is not entitled to
receive long-term disability (“LTD”) benefits under a LTD plan of the Company or a
Subsidiary.

     (ii) Except as otherwise provided in subparagraph 5(e)(i) above, during the Evaluation Period,
the Company may terminate the Employee’s employment only in the event of a “Disability,”
which for this
purpose means that a medical condition either (A) has prevented the Employee, even with a
reasonable accommodation by the Company, from substantially performing the Employee’s duties
hereunder for six (6) months, consecutive or non-consecutive, in any period of twelve (12) or fewer
consecutive months, or (B) entitles the Employee to receive LTD benefits under a LTD plan of the
Company or any Subsidiary. The Company will give the Employee at least ten (10) days advance
written notice of a Disability Termination. Notwithstanding any provision of this Agreement to the
contrary, a Disability Termination will not be treated as a termination to which the provisions of
paragraph 5(a) or 5(b) apply.

     (iii) In the event of a Disability Termination, the Company will pay or provide the Employee
with the following:

     (A) With respect to the period ending on the date of the Disability Termination, the Employee
will receive all of the compensation and benefits provided by Section 4 above. The amount of any
compensation payable to the Employee with respect to the period ending on the date of the
Disability Termination may be reduced by (I) any payments which the Employee receives with respect
to the same period because of short- or long-term disability under any disability plan of the
Company or any Subsidiary, and (II) any income (whether from Social Security, workers compensation
or any other source) that is deducted in computing the amount of such payments under any disability
plan of the Company or any Subsidiary;

     (B) An amount of money equal to the Severance Payment. Except as otherwise provided hereafter
in this subparagraph 5(e)(iii)(B) and Section 14, seventy-five percent (75%) of the Severance
Payment shall be paid in a lump sum within ten (10) days after the date of the Disability
Termination. The twenty-five percent (25%) balance of the Severance Payment shall be paid in six
(6) equal monthly installments, one (1) of which shall be paid at the end of each of the first six
(6) months after the date of the Disability Termination. If a Change in Control occurs that is a
“change in control event” within the meaning of Code Section 409A and Treasury Regulation
§1.409A-3(i)(5)(i) (or any similar or successor provisions) (either before or after the Disability
Termination and in accordance with Treasury Regulation §1.409A-3(c)), the Severance Payment (or, in
the case of such a “change in control event” that occurs after the Disability Termination, any
portion thereof that remains unpaid at the time such “change in

- 11 -

 

control event” occurs) shall be paid in a lump sum within ten (10) days after the Disability
Termination (or, in the case of such a “change in control event” that occurs after the Disability
Termination, within ten (10) days after the “change in control event” occurs), and the two (2)
preceding sentences of this subparagraph shall not apply; and

     (C) During the period from the date of the Disability Termination until the first to occur of
(I) the date, if any, on which the Employee recovers from the disabling medical condition, (II) the
Employee’s attainment of age 65, and (III) the death of the Employee, the Company will pay the
Employee a monthly amount of money (the “Supplemental LTD Payments”) equal to the excess, if any,
of (aa) over (bb) where (aa) is 60% of one-twelfth (1/12th) of the Employee’s Base
Salary (as defined in paragraph 4(a) above) immediately before the Disability Termination (i.e.,
60% of the Employee’s monthly salary at its highest rate), and (bb) is the sum of (1) the monthly
LTD benefit (if any) which the Employee receives with respect to the same month under a LTD plan of
the Company or any Subsidiary, plus (2) any income (whether from Social Security, workers
compensation or any other source) that is deducted in computing the amount of such monthly LTD
benefit; provided, however, that the Employee will be entitled to a Supplemental
LTD Payment for a given month only to the extent that the Employee’s cumulative Supplemental LTD
Payments (determined without regard to this proviso) through the end of that month exceed the
Severance Payment.

     The payments and benefits provided by the foregoing provisions of this subparagraph
5(e)(iii) are in addition to and not in lieu of any other amounts to which the Employee is
entitled by law or pursuant to the terms of any compensation or benefit plan or arrangement
in which the Employee participated prior to the Disability Termination, and any amounts
payable pursuant to Section 8, 9 or 10 below.

          (f) Release. Any and all amounts payable and benefits or additional rights provided
pursuant to this Agreement after Separation from Service beyond any accrued, vested amounts shall
only be payable if the Employee (i) signs after a Separation from Service a general release
prepared by the Company of all claims of the Employee occurring up to and including the date of
Separation from Service excluding claims under this Agreement, claims for compensation and benefits
that are vested as of such date, and claims for indemnification or advancement of expenses related
to the Employee’s service or status as an officer or employee (the “Release”), (ii) delivers the
signed Release to the Company within forty-five (45) calendar days of presentation thereof by the
Company to the Employee, which presentation shall be made no later than ten (10) calendar days
following the Employee’s Separation from Service, and (iii) does not revoke the Release during the
seven (7) calendar days following the date on which the Employee signs the Release. Subject to the
preceding sentence, any amounts that otherwise would be paid or provided pursuant to this Agreement
during the sixty-two (62) calendar days following the Employee’s Separation from Service shall be
paid or provided between the sixty-third (63rd) and seventy-fourth (74th) calendar days following
the Separation from Service.

          (g) Code Section 409A. All payments to be made pursuant to this Section 5 are subject
to Section 14 of this Agreement, including the Six Month Delay Rule, if applicable. To the extent
of any conflict between Section 14 and this Section 5, Section 14 will control. For

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purposes of this Agreement, the Employee’s employment shall be deemed to be terminated when the
Employee has a “Separation from Service” within the meaning of Code Section 409A, and
references to termination of employment shall be deemed to refer to a Separation from Service. For
purposes of this Section 5, and in accordance with Treasury Regulation §1.409A-1(h)(1)(ii) (or any
similar or successor provisions), a termination of employment shall be deemed to occur, without
limitation, if the Company and the Employee reasonably anticipate that the level of bona fide
services the Employee will perform after a certain date (whether as an employee or as an
independent contractor) will permanently decrease to less than fifty percent (50%) of the average
level of bona fide services provided in the immediately preceding thirty-six (36) months.

     6. Confidential Information.

          (a) The Employee agrees not to disclose, either while in the employ of the Company, an
Affiliate or Subsidiary or at any time thereafter, to any person not employed by the Company or an
Affiliate, or not engaged to render services to the Company or an Affiliate, except with the prior
written consent of an authorized officer of the Company or an Affiliate or as necessary or
appropriate for the performance of the Employee’s duties hereunder, any confidential information
obtained by the Employee while in the employ of the Company, including, without limitation,
information relating to any of the inventions, processes, formulae, plans, devices, compilations of
information, research, methods of distribution, suppliers, customers, client relationships,
marketing strategies or trade secrets of the Company, another Subsidiary or Affiliate; provided,
however, that this provision shall not preclude the Employee from use or disclosure of information
known generally to the public or of information not considered confidential by persons engaged in
the businesses conducted by the Company, another Subsidiary or Affiliate, or
from disclosure required by law or court order. The Employee also agrees that upon leaving the
Company’s employ the Employee will not take with the Employee, without the prior written consent of
an authorized officer of the Company or an Affiliate, and the Employee will surrender to the
Company, any record, list, drawing, blueprint, specification or other document or property of the
Company, another Subsidiary or Affiliate, together with any copy or reproduction thereof,
mechanical or otherwise, which is of a confidential nature relating to the Company, another
Subsidiary or Affiliate, or without limitation, relating to its or their methods of distribution,
suppliers, customers, client relationships, marketing strategies or any description of any formulae
or secret processes, or which was obtained by the Employee or entrusted to the Employee during the
course of the Employee’s employment with the Company.

          (b) The Employee agrees that the Company retains all rights to any and all intellectual or
proprietary properties created by the Employee during the Employee’s employment with the Company,
an Affiliate or Subsidiary, including but not limited to all concepts, discoveries and inventions
(whether or not patentable and whether or not reduced to practice); all copyrights (including all
copyrights covering notebooks, presentations, publications, advertising, promotional and/or
educational materials, labels, inserts and packaging materials); all trademarks, trade names and
other similar designations of origin; and all trade secrets, confidential information and ideas,
including but not limited to promotion and marketing plans, customer, supplier and other lists
(collectively “Intellectual Property”). To the extent that any right, title or interest in
or to any Intellectual Property vests in the Employee in a manner contrary to this paragraph 6(b),
the Employee agrees to, and hereby does, irrevocably assign to

- 13 -

 

the Company any and all such rights, titles, and interests in and to such Intellectual Property
without the need for any further action by the Company. The Employee agrees to assist the Company,
its Affiliates and Subsidiaries, including following the Employee’s employment with the Company, an
Affiliate or Subsidiary, in the transfer or assignment of such Intellectual Property.

     7. Restrictive Covenants

          (a) Non-Solicitation. Employee covenants and agrees that, during the Employee’s
employment by the Company and during the one (1)-year period immediately following the termination
of the Employee’s employment with the Company for any reason (including, without limitation, a
termination of employment by the Company or an Affiliate without Cause and a voluntary termination
of employment by the Employee, in either case whether during the term of this Agreement, at the
expiration of the term of this Agreement or at any time thereafter), the Employee will not solicit
or attempt to persuade any employee of the Company, any other Subsidiary or Affiliate (except the
Employee’s personal secretary or administrative assistant), or any other person who performs
services for the Company, any other Subsidiary or Affiliate at the time the Employee’s employment
terminates or at any time within one (1) year thereafter, to terminate or reduce or refrain from
engaging in his or her employment or other service relationship with the Company, any other
Subsidiary or Affiliate; provided, however, that responding to inquiries from any such employees or
other persons that are not initiated by the Employee, and subsequently hiring such employees or
other persons following the termination of their employment with the Company, the other
Subsidiaries and Affiliates, shall be permitted.

          (b) Specific Enforcement. Employee recognizes and agrees that, by reason of the
Employee’s knowledge, experience, skill and abilities, the Employee’s services are extraordinary
and unique, that the breach or attempted breach of any of the restrictions set forth above in this
Section 7 will result in immediate and irreparable injury for which the Company will not have an
adequate remedy at law, and that the Company shall be entitled to a decree of specific performance
of those restrictions and to a
temporary and permanent injunction enjoining the breach thereof, and to seek any and all other
remedies to which the Company may be entitled, including, without limitation, monetary damages,
without posting bond or furnishing security of any kind.

          (c) Restrictions Reasonable. Employee specifically and expressly represents and
warrants that (i) the Employee has reviewed and agreed to the restrictive covenants contained in
this Section 7 and their contemplated operation after receiving the advice of counsel of the
Employee’s choosing; (ii) the Employee believes, after receiving such advice, that the restrictive
covenants and their contemplated operation are fair and reasonable; (iii) the Employee will not
seek or attempt to seek to have the restrictive covenants declared invalid, and, after receiving
the advice of counsel, expressly waives any right to do so; and (iv) if the full breadth of any
restrictive covenant and/or its contemplated operation shall be held in any fashion to be too
broad, such covenant or its contemplated operation, as the case may be, shall be interpreted in a
manner as broadly in favor of the beneficiary of such covenant as is legally permissible. Employee
recognizes and agrees that the restrictions on the Employee’s activities contained in this Section
7 are required for the reasonable protection of the Company and its investments; and

- 14 -

 

that the restriction on the Employee’s activities set forth in paragraph 7(a) will not deprive
the Employee of the ability to earn a livelihood.

          (d) Non-Disparagement. Employee covenants and agrees that, during the one (1)-year
period immediately following the termination of the Employee’s employment with the Company for any
reason (including, without limitation, a termination of employment by the Company without Cause and
a voluntary termination of employment by the Employee, in either case whether during the term of
this Agreement, at the expiration of the term of this Agreement or at any time thereafter), the
Employee will not make disparaging remarks about the Company, any other Subsidiary or Affiliate, or
any of their officers, directors or employees, unless required by law or reasonably necessary to
assert or defend the Employee’s position in a bona fide dispute arising out of or relating to this
Agreement or the breach thereof.

          (e) Effect on Termination Payments. The Employee recognizes and agrees that the
Company shall not be obligated to make any payments provided for in paragraph 5(a) or 5(e) above if
the Employee violates the provisions of Section 6 or paragraph 7(a) or 7(d) above during the one
(1)-year period immediately following the termination for any reason of the Employee’s employment
with the Company. In addition, the Employee recognizes and agrees that, if the Employee violates
such provisions, the Company may recoup any payments the Company may have theretofore made pursuant
to paragraph 5(a) or 5(e) above and any payments the Company may thereafter make under paragraph
5(a) or 5(e). The foregoing provisions of this paragraph 7(e) shall be in addition to and not by
way of limitation of any other rights and remedies the Company may have in respect of the violation
in question.

     8. Indemnification. To the fullest extent permitted by applicable law, the Company
shall indemnify, defend and hold harmless the Employee from and against any and all claims,
demands, actions, causes of action, liabilities, losses, judgments, fines, costs and expenses
(including reasonable attorneys’ fees and settlement expenses) arising from or relating to the
Employee’s service or status as an officer, director, employee, agent or representative of the
Company, any other Subsidiary or Affiliate, or in any other capacity in which the Employee serves
or has served at the request of, or for the benefit of, the Company, another Subsidiary or
Affiliate. The Company’s obligations under this Section 8 shall be in addition to, and not in
derogation of, any other rights the Employee may have against the Company, any other Subsidiary or
Affiliate to indemnification or advancement of expenses, whether by statute, contract or otherwise.

     9. Certain Additional Payments by the Company.

          (a) Anything in this Agreement (other than the second sentence of this paragraph 9(a)) to the
contrary notwithstanding, in the event it shall be determined that any payment or distribution by
the Company, another Subsidiary or Affiliate, to or for the benefit of the Employee (whether paid
or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise,
but determined without regard to any additional payments required under this Section 9) (a
“Payment”), would be subject to the excise tax imposed by Code Section 4999 or any interest
or penalties are incurred by the Employee with respect to such excise tax (such excise tax,
together with any such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), then the Employee shall be entitled to receive an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by the Employee of all

- 15 -

 

taxes and any benefits that result from the deductibility by the Employee of such taxes
(including, in each case, any interest or penalties imposed with respect to such taxes), including,
without limitation, any income taxes (and any interest and penalties imposed with respect thereto)
and Excise Tax imposed upon the Gross-Up Payment, the Employee retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments. However, if it shall be determined that
none of the Payments would be subject to the Excise Tax if the total Payments were reduced in the
aggregate by twenty five thousand dollars ($25,000) or less, then in that event the total Payments
shall be reduced by the smallest amount (in no event to exceed twenty-five thousand dollars
($25,000) in the aggregate) necessary to ensure that none of the Payments will be subject to the
Excise Tax. Cash Payments shall be reduced first, and in the chronological order in which they are
payable to or on behalf of the Employee.

          (b) Subject to the provisions of paragraph 9(a) above and 9(c) below, all determinations
required to be made under this Section 9, including whether and when a Gross-Up Payment is required
and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such
determination, and whether Payments are to be reduced pursuant to the second sentence of paragraph
9(a) above, shall be made by Deloitte & Touche or such other certified public accounting firm as
may be designated by the Employee (the “Accounting Firm”) which shall provide detailed
supporting calculations both to the Company and the Employee within fifteen (15) business days of
the receipt of notice from the Employee that there has been a Payment, or such earlier time as is
requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the “change in ownership or effective
control” or “change in the ownership of a substantial portion of assets” (within the meaning of
Code Section 280G(b)(2)(A)) that gives rise to the Excise Tax, or in the event that the Accounting
Firm for any reason is unable or unwilling to make the determinations required hereunder, the
Employee shall appoint another nationally recognized accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the Accounting Firm
hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company.
Any Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by the Company to the
Employee within five business (5) days of the receipt of the Accounting Firm’s determination. Any
determination by the Accounting Firm shall be binding upon the Company and the Employee. As a
result of the uncertainty in the application of Code Section 4999 at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not
have been made by the Company should have been made (an “Underpayment”), consistent with
the calculations required to be made hereunder. In the event that the Company exhausts its remedies
pursuant to paragraph 9(c) and the Employee thereafter is required to make a payment of any Excise
Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any
such Underpayment, along with any penalty and interest imposed with respect to such Underpayment,
shall be promptly paid by the Company to or for the benefit of the Employee.

          (c) The Employee shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require either the payment by the Company of the Gross-Up
Payment or the reduction of Payments pursuant to the second sentence of paragraph 9(a) above. Such
notification shall be given as soon as practicable but no later than ten (10) business days after
the Employee is informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be

- 16 -

 

paid. The Employee shall not pay such claim prior to the expiration of the thirty (30)-day period
following the date on which the Employee gives such notice to the Company (or such shorter period
ending on the date that any payment of taxes with respect to such claim is due). If the Company
notifies the Employee in writing prior to the expiration of such period that it desires to contest
such claim, the Employee shall:

     (i) give the Company any information reasonably requested by the Company relating to such
claim,

     (ii) take such action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

     (iii) cooperate with the Company in good faith in order effectively to contest such
claim, and

     (iv) permit the Company to participate in any proceedings relating to such claim;

     provided, however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest and shall
indemnify and hold the Employee harmless, on an after-tax basis, for any Excise Tax or income tax
(including interest and penalties with respect thereto) imposed as a result of such representation
and payment of costs and expenses. Without limitation on the foregoing provisions of this
paragraph 9(c), the Company shall control all proceedings taken in connection with such contest
and, at its sole option, may pursue or forgo any and all administrative appeals, proceedings,
hearings and conferences with the taxing authority in respect of such claim and may, at its sole
option, either direct the Employee to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Employee agrees to prosecute such contest to a determination
before any administrative tribunal, in a court of initial jurisdiction and in one
(1) or more appellate courts, as the Company shall determine, provided, however, that if the
Company directs the Employee to pay such claim and sue for a refund, the Company shall, if
permissible under Section 402 of the Sarbanes-Oxley Act of 2002, advance the amount of such payment
to the Employee on an interest-free basis or, if such an advance is not permissible thereunder, pay
the amount of such payment to the Employee as additional compensation, and shall indemnify and hold
the Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest
or penalties with respect thereto) imposed with respect to such advance or additional compensation;
and further provided that any extension of the statute of limitations relating to payment of taxes
for the taxable year of the Employee with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. Furthermore, the Company’s control of the contest
shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and
the Employee shall be entitled to settle or contest, as the case may be, any other issue raised by
the Internal Revenue Service or any other taxing authority.

          (d) If, after the receipt by the Employee of an amount advanced or paid by the Company
pursuant to paragraph 9(a) or 9(c), the Employee becomes entitled to receive any

- 17 -

 

refund with respect to such claim, the Employee shall (subject to the Company’s complying with
the requirements of paragraph 9(c)) promptly pay to the Company the amount of such refund (together
with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt
by the Employee of an amount advanced by the Company pursuant to paragraph 9(c), a determination is
made that the Employee shall not be entitled to any refund with respect to such claim and the
Company does not notify the Employee in writing of its intent to contest such denial of refund
prior to the expiration of thirty (30) days after such determination, then such advance shall be
forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.

          (e) Notwithstanding the foregoing provisions of this Section 9, the determination of the
amount necessary to indemnify the Employee shall be made taking into account all other payments
made to the Employee under any plans, agreements or arrangements aside from this Agreement that are
intended to indemnify the Employee with respect to excise taxes on “excess parachute payments.”
The Company shall reimburse any fees and expenses provided for under this Section 9 on or before
the last day of the Employee’s taxable year following the taxable year in which the fee or expense
was incurred, and in accordance with the other requirements of Code Section 409A and Treasury
Regulation §1.409A-3(i)(1)(v) (or any similar or successor provisions).

     10. Certain Enforcement Matters 

     (a) If, after a Change in Control or Potential Change in Control, a dispute arises (i) with
respect to this Agreement or the breach thereof, or (ii) with respect to the Employee’s or the
Company’s rights or obligations under this Agreement, including but not limited to any such dispute
between the Employee and the Company, the Company shall pay or reimburse the Employee for all
reasonable costs and expenses (including court costs, arbitrators’ fees and reasonable attorneys’
fees and disbursements) the Employee incurs in connection with such dispute, including without
limitation costs and expenses the Employee incurs to obtain payment or otherwise enforce the
Employee’s rights under this Agreement, or to obtain payment of costs and expenses due under this
paragraph 10(a). In addition, the Company shall pay the Employee such additional amount (a
“Gross Up”) as will be sufficient, after the Employee pays the Employee’s tax liability
with respect to the Gross Up from the Gross Up, to pay all of the Employee’s federal, state and
local tax liability with respect to any costs and expenses that are paid by the Company pursuant to
this paragraph 10(a). The Company shall promptly pay or reimburse the Employee for all such costs
and expenses as the Employee incurs them, upon presentation of reasonable documentation of such
costs and expenses, and shall promptly pay the related Gross Up as and when it pays or reimburses
costs and expenses. The Employee shall not be obligated to repay any such costs, expenses or Gross
Up unless it is finally determined by the trier of fact in a non-appealable judicial or arbitral
decision or ruling (as applicable) that the Employee’s principal positions with respect to the
principal matter(s) in dispute were unreasonable and pursued in bad faith. The following provisions
apply to any costs and expenses that are to be paid or reimbursed pursuant to the preceding
provisions of this paragraph 10(a) but that are not covered by the exclusion from the term
“deferral of compensation” that is set forth in Treasury Regulation §1.409A-1(b)(11) (or any
similar or successor provisions). Any such reasonable costs and expenses are hereafter referred to
as “Non-Excluded Expenses.” Non-Excluded Expenses may consist of court costs, arbitration costs,
arbitrators’ fees, attorneys’ fees

- 18 -

 

and disbursements (including without limitation disbursements for transportation, printing,
document production, consultants and experts), and transportation, hotel, food and other
out-of-pocket expenses (such as telecommunications charges) the Employee incurs in preparing for and
attending depositions, hearings and meetings with attorneys and witnesses and in preparing for and
giving
testimony. Non-Excluded Expenses will be paid or reimbursed if they are incurred during the ten
(10)-year period following a Change in Control. Non-Excluded Expenses shall be paid or reimbursed
on or before the last day of the year following the year in which the expense was incurred, may not
be liquidated or exchanged for another benefit, and may not affect the expenses eligible for
reimbursement, or in-kind benefits to be provided, in any other year.

     (b) Any payments to which the Employee may be entitled under this Agreement, including,
without limitation, under Section 5, 8, 9 or 10 hereof, shall be made forthwith on the applicable
date(s) for payment specified in this Agreement. If for any reason the amount of any payment due
to the Employee cannot be finally determined on that date, such amount shall be estimated on a good
faith basis by the Company and the estimated amount shall be paid no later than ten (10) days after
such date. As soon as practicable thereafter, the final determination of the amount due shall be
made and any adjustment requiring a payment to or from the Employee shall be made as promptly as
practicable.

     (c) Any controversy or claim arising, after a Change in Control or Potential Change in
Control, out of or related to this Agreement or the breach thereof, shall be settled by binding
arbitration in the City of New York, in accordance with the employment dispute arbitration rules of
the American Arbitration Association then in effect, and the arbitrator’s decision shall be binding
and final and judgment upon the award rendered may be entered in any court having jurisdiction
thereof, except that the Employee may elect to have any such controversy or claim settled by
judicial determination in lieu of arbitration by bringing a court action, if the Employee is the
plaintiff or, if the Employee is not the plaintiff, demanding such judicial determination within
the time to answer any complaint in any arbitration action that may be commenced.

     11. Change in Control 

          (a) The term “Change in Control” as used in this Agreement means a change of control
of the Company of a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), whether or not the Company is then subject to such reporting
requirement; provided that, whether or not any of the following events would constitute a change of
control of such a nature, a Change in Control shall be deemed to occur for purposes of this
Agreement if and when any of the following events occur:

     (i) any “person” (as such term is used in Sections 13(d) and 14(d)(2) of the Exchange
Act) (a “Person”), other than—

     (A) the Company,

     (B) a Subsidiary,

     (C) a trustee or other fiduciary holding securities under an employee benefit plan of the
Company or a Subsidiary, or

- 19 -

 

     (D) an underwriter engaged in a distribution of Company stock to the public with the Company’s
written consent,

becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of Voting Securities that represent more than thirty percent (30%) of the combined
voting power of the then outstanding Voting Securities. However, if the Person in question is an
institutional investor whose investment in Voting Securities is purely passive when such Person
becomes such a more than thirty percent (30%) beneficial owner of Voting Securities, then such
event (i.e., such Person’s becoming a more than thirty percent (30%) beneficial owner of Voting
Securities) shall not be deemed to constitute a
Change in Control under this subparagraph 11(a)(i) for so long as (and only for so long as) such
Person’s investment in Voting Securities remains purely passive; or

     (ii) the stockholders of the Company approve a merger, consolidation, recapitalization or
reorganization of the Company or a Subsidiary, reverse split of any class of Voting Securities, or
an acquisition of securities or assets by the Company or a Subsidiary, or consummation of any such
transaction if stockholder approval is not obtained, other than (A) any such transaction in which
the holders of outstanding Voting Securities immediately prior to the transaction receive, with
respect to such Voting Securities (or, in the case of a transaction in which the Company is the
surviving corporation or a transaction involving a Subsidiary, retain), voting securities of the
surviving or transferee entity representing more than fifty percent (50%) of the total voting power
outstanding immediately after such transaction, with the voting power of each such continuing
holder relative to other such continuing holders not substantially altered in the transaction, or
(B) any such transaction which would result in the Company or a Related Party beneficially owning
more than fifty percent (50%) of the voting securities of the surviving entity outstanding
immediately after such transaction; or

     (iii) the stockholders of the Company approve a plan of complete liquidation of the Company or
an agreement for the sale or disposition by the Company of all or substantially all of the
Company’s assets other than any such transaction which would result in a Related Party owning or
acquiring more than fifty percent (50%) of the assets owned by the Company immediately prior to the
transaction; or

     (iv) the persons who were members of the Board immediately before a tender or exchange offer
for shares of Common Stock of the Company by any person other than the Company or a Related Party,
or before a merger or consolidation of the Company or a Subsidiary, or contested election of the
Board, or before any combination of such transactions, cease to constitute a majority of the Board
as a result of such transaction or transactions.

          (b) For purposes of this Agreement, including paragraph 11(a) above:

     (i) the term “Related Party” shall mean (A) a Subsidiary, (B) an employee or group of
employees of the Company or any Subsidiary, (C) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any Subsidiary, or
(D) a corporation or other form of business entity owned directly or indirectly by the

- 20 -

 

stockholders of the Company in substantially the same proportion as their ownership of Voting
Securities;

     (ii) the term “Subsidiary” means a corporation or other form of business association
of which shares (or other ownership interests) having more than fifty percent (50%) of the voting
power are, or in the future become, owned or controlled, directly or indirectly, by the Company;

     (iii) the term “Affiliate” means a Person that directly, or indirectly through one
(1) or more intermediaries, controls, or is controlled by, or is under common control with,
the Company. For the purposes of the preceding sentence, the word “control” (by itself and
as used in the terms “controlling”, “controlled by” and “under common control with”) means the
possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities, by contract, or
otherwise; and

     (iv) the term “Voting Securities” shall mean any securities of the Company that carry
the right to vote generally in the election of directors.

          (c) For purposes of this Agreement, a “Potential Change in Control” means that (i) the
Company or a Subsidiary enters into an agreement, the consummation of which would result in the
occurrence of a
Change in Control; or (ii) the Board adopts a resolution to the effect that, for purposes of this
Agreement, a potential change in control has occurred.

          (d) A “Change in Control” as such term is used in this Agreement shall also be deemed
to occur if BLI as defined in this Agreement (including paragraph 13(d) below) ceases to be an
Affiliate.

     12. Severability; Survival 

          (a) In the event that any provision of this Agreement shall be determined to be invalid or
unenforceable for any reason, the remaining provisions of this Agreement not so invalid or
unenforceable shall be unaffected thereby and shall remain in full force and effect to the fullest
extent permitted by law; and

          (b) Any provision of this Agreement that may be invalid for any reason or unenforceable in any
jurisdiction shall remain in effect and be enforceable in any jurisdiction in which such provision
shall be valid and enforceable.

          (c) The provisions of Sections 6, 7, 8, 9 and 10 and paragraphs 5(e), (f) and
(g) of this Agreement, and any other provision of this Agreement that is intended to apply,
operate or have effect after the expiration or termination of the term of this Agreement, or at a
time when the term of this Agreement may have expired or terminated, shall survive the expiration
or termination of the term of this Agreement for any reason.

     13. General Provisions 

          (a) No right or interest to or in any payments to be made under this Agreement shall be
subject to anticipation, alienation, sale, assignment, encumbrance, pledge,

- 21 -

 

charge or hypothecation or to execution, attachment, levy or similar process, or assignment by
operation of law. All payments to be made by the Company hereunder shall be subject to the
withholding of such amounts as the Company may determine it is required to withhold under the laws
or regulations of any governmental authority, whether foreign, federal, state or local.

          (b) To the extent that the Employee acquires a right to receive payments from the Company
under this Agreement, such right shall be no greater than the right of an unsecured general
creditor of the Company. All payments to be made hereunder shall be paid from the general funds of
the Company and no special or separate fund shall be established and no segregation of assets shall
be made to assure payment of any amount hereunder.

          (c) This Agreement shall be governed by and construed and enforced in accordance with the laws
of the State of New York, without giving effect to the principles of conflicts of laws of that
State.

          (d) This Agreement shall be binding upon and inure to the benefit of the Company, its
successors and permitted assigns, and the Employee, the Employee’s heirs, devisees, distributees
and legal representatives. The Company may assign any or all of its rights and obligations under
this Agreement to any other Subsidiary or Affiliate (collectively, “Permitted Assignees”),
and, if any rights or obligations are assigned pursuant to this sentence, the assignee may
thereafter assign any or all of such rights and obligations to any other Permitted Assignee;
provided that (i) the Employee’s title, authority, duties and responsibilities, reporting level,
reporting relationships and office location immediately before any such assignment are not changed
in any respect detrimental to the Employee in connection with such assignment without the written
consent of the Employee (given in a personal capacity rather than a representative capacity), (ii)
no such assignment shall relieve the Company of any past, present or future payment or benefit
obligations hereunder without the express written consent of the Employee (also given in a personal
capacity), and (iii) no assignment may be made after a Change in Control or Potential Change in
Control without the express written consent of the Employee (also given in a personal capacity).
In the event of an assignment in accordance with this paragraph, the term “Company” as used
in this Agreement shall be deemed to refer, with respect to the period commencing on the effective
date of such assignment, to the Permitted Assignee to which such rights or obligations are assigned
and, with
respect to any obligations that are assigned hereunder, to the Company and such Permitted Assignee
jointly and severally. The foregoing provisions of this paragraph are intended to enable the
Company to assign its right to employ the Employee under this Agreement to a Permitted Assignee but
only if (A) such assignment does not change to the detriment of the Employee his title, authority,
duties, responsibilities, reporting level, reporting relationships, office location or
compensation, (B) such assignment does not result in any Permitted Assignee replacing the Company
as an obligor under this Agreement, and (C) the Employee expressly consents in writing to any
assignment that is to occur after a Change in Control or Potential Change in Control. For the
avoidance of doubt, as an example, in the event of an assignment in accordance with this paragraph,
from the effective date of such assignment the term “Company” as used in subparagraphs
5(d)(ii) and (iii) above (relating to Good Reason for a change in duties or in office, title or
position) shall be deemed to refer to such Permitted Assignee. Thus, the Employee would not have
Good Reason under those subparagraphs if as a result of the assignment the Employee were to cease
to serve as the Executive Vice President, General Counsel and Secretary of the assignor, the
Employee were

- 22 -

 

appointed to serve as the Executive Vice President, General Counsel and Secretary of the
Permitted Assignee, and the Employee’s authority, duties and responsibilities, reporting level,
reporting relationships and office location were to continue to be those described in paragraph
3(a) above as in effect immediately before the assignment. The term “Company” as used in
this Agreement shall include any successor to the Company by merger or operation of law. The
rights and obligations of the Employee hereunder are personal to the Employee and may not be
assigned by the Employee; provided that nothing herein shall prevent the Employee from assigning
the right to any amount that may be payable under this Agreement after the death of the Employee by
will or the laws of descent and distribution or to a beneficiary designated by the Employee with
the written consent of the Company or an Affiliate.

          (e) Any notice or other communication to the Company pursuant to any provision of this
Agreement shall be given in writing and will be deemed to have been delivered:

     (i) when delivered in person to the Company’s CEO or the BLI’s COO; or

     (ii) one (1) week after it is deposited in the United States certified or registered mail,
postage prepaid, addressed to the Company’s CEO or the BLI’s COO at 225 Summit Avenue, Montvale,
New Jersey 07645-1523, or at such other address of which the Company may from time to time give
the Employee written notice in accordance with paragraph 13(f) below.

          (f) Any notice or other communication to the Employee pursuant to any provision of the
Agreement shall be given in writing and will be deemed to have been delivered:

     (i) when delivered to the Employee in person, or

     (ii) one (1) week after it is deposited in the United States certified or registered mail,
postage prepaid, addressed to the Employee at the Employee’s address as it appears on the records
of the Company or at such other address of which the Employee may from time to time give the
Company written notice in accordance with paragraph 13(e) above.

          (g) No provision of this Agreement may be amended, modified or waived unless such amendment,
modification or waiver shall be agreed to in a writing signed by the Employee and an authorized
officer of the Company.

          (h) This instrument contains the entire agreement of the parties relating to the subject
matter of this Agreement and supersedes and replaces all prior agreements and understandings with
respect to such subject matter (including any employment agreement between the Employee and the
Company or an Affiliate that was entered into before the date of this Agreement), and the parties
have made no agreements, representations or warranties relating to the subject matter of this
Agreement which are not set forth herein. If this Agreement supersedes an employment agreement
between the Employee and the
Company or an Affiliate that was entered into before the date of this Agreement and that, but for
the preceding sentence, would remain in effect after the date of this Agreement, then no provision
of this Agreement shall cause an amount to be paid in 2008 that otherwise would not have been paid
in 2008 or

- 23 -

 

postpone a payment beyond 2008 that otherwise would have been paid in 2008 in accordance with the
transition rules under Code Section 409A.

     14. Code Section 409A. This Agreement is intended to comply with Code Section 409A and
the interpretative guidance thereunder, including the exceptions for short-term deferrals,
separation pay arrangements, reimbursements, and in-kind distributions, and shall be administered
accordingly. The Agreement shall be construed and interpreted with such intent. Each payment under
Section 5 of this Agreement or any Company benefit plan is intended to be treated as one (1) of a
series of separate payments for purposes of Code Section 409A and Treasury Regulation
§1.409A-2(b)(2)(iii) (or any similar or successor provisions). To the extent that payments under
the Agreement are subject to Code Section 409A and are on account of a Separation from Service and
the Employee is a “Specified Employee” (as defined below) as of the date of termination,
distributions to the Employee may not be made before the date that is six
(6) months after the date of Separation from Service or, if earlier, the date of the
Employee’s death (the “Six Month Delay Rule”). Payments to which the Employee would otherwise be
entitled during the first six (6) months following the date of termination (the “Six Month Delay”)
will be accumulated and paid on the first day of the seventh month following the date of
termination (or the Employee’s death, if earlier).

          (a) During the Six-Month Delay, the Company will pay to the Employee the applicable payments
set forth in Section 5 above, to the extent any of the following exceptions to the Six-Month Delay
Rule apply:

     (i) the short-term deferral rule of Code Section 409A and Treasury Regulation §1.409A-1(b)(4)
(or any similar or successor provisions) (including with the treatment of each payment as one (1)
of a series of separate payments for purposes of Code Section 409A and Treasury Regulation
§1.409A-2(b)(2)(iii)) (or any similar or successor provisions),

     (ii) payments permitted under the separation pay exception of Code Section 409A and Treasury
Regulation §1.409A-1(b)(9)(iii) (or any similar or successor provisions), and

     (iii) payments permitted under the limited payments exception of Code Section
409A and Treasury Regulation §1.409A-1(b)(9)(v)(D) (or any similar or successor
provisions),

provided that the amount paid under this paragraph will count toward, and will not be in addition
to, the total payment amount required to be made to the Employee by the Company under Section 5
above on account of the Separation from Service and any applicable Company benefit plan. The
Employee’s right to the compensation and benefits provided under Section 5 above is to be treated
as a right to a series of separate payments under Treasury Regulation §1.409A-2(b)(2)(iii) (or any
similar or successor provisions).

          (b) For purposes of this Agreement, the term “Specified Employee” has the meaning given to
that term in Code Section 409A and Treasury Regulation §1.409A-1(i) (or any similar or successor
provisions). The Company’s “specified employee identification date” (as described in Treasury
Regulation §1.409A-1(i)(3) (or any similar or successor provisions)) will

- 24 -

 

be December 31 of each year, and the Company’s “specified employee effective date” (as
described in Treasury Regulation §1.409A-1(i)(4) (or any similar or successor provisions)) will be
April 1 of each succeeding year.

          (c) Following a Change in Control, if any payment made pursuant to this Agreement shall cause
the Employee or the Employee’s beneficiaries to incur any penalty tax under Code Section 409A
(including any interest or penalties imposed with respect to such penalty) (a “409A Tax”),
the Employee or the Employee’s beneficiaries shall be entitled to receive an additional payment (a
“409A Gross-Up Payment”) in an amount such that, after payment by the Employee of all taxes
(including any interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with respect thereto) and tax
imposed upon the 409A Gross-Up Payment, the Employee retains an amount of the 409A Gross-Up Payment
equal to the 409A Tax imposed as a result of such payment.

          (d) If any payment made pursuant to paragraph 5(e) of this Agreement shall cause the Employee
or the Employee’s beneficiaries to incur a 409A Tax, the Employee or the Employee’s beneficiaries
shall be entitled to receive a 409A Gross-Up Payment in an amount such that, after payment by the
Employee of all taxes (including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest and penalties imposed with
respect thereto) and tax imposed upon the 409A Gross-Up Payment, the Employee retains an amount of
the 409A Gross-Up Payment equal to the 409A Tax imposed as a result of such payment.

     15. Consent to Certain Amendments. The Employee agrees that the Company may amend this
Agreement to the minimum extent necessary to satisfy the applicable provisions of Code Section 409A
and the Treasury Regulations or other guidance issued thereunder. The Company cannot guarantee
that the payments and benefits that may be paid or provided pursuant to this Agreement will satisfy
all applicable provisions of Code Section 409A.

[This space left intentionally blank.]

- 25 -

 

     IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date
first above written.

	 	 	 	 	 	 	 	 	 
	BARR PHARMACEUTICALS, INC.,	 	 	 	 	 	 
	a Delaware corporation	 	 	 	 	 	 
	 

	 	 	 	 	 	/s/ Frederick J. Killion
 

Frederick J. Killion
	 	 
	By:

	 	/s/ Jane F. Greenman
 

	 	 	 	 	 	 
	Its:

	 	Executive VP, Global Human Resources
 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	[SEAL]	 	 	 	 	 	 
	Attest

	 	:	 	 	 	 	 	 

/s/ Sheldon Hirt                    

Asst. Secretary

- 26 -EX-10.1

Exhibit 10.1

EXECUTION COPY

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is effective as of July 15,
2008 (the “Effective Date”), by and between Henrik C. Slipsager (“Executive”) and ABM Industries
Incorporated for itself and on behalf of its subsidiary corporations as applicable herein.

WHEREAS, the subsidiaries of ABM (as hereinafter defined) are 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, Executive and ABM are party to an Executive Employment Agreement dated June 7, 2005 (the
“Prior Agreement”),

WHEREAS, the parties desire to amend and restate the Prior Agreement to, among other things,
reflect changes required to comply with Section 409A and Section 162(m) of the Internal Revenue
Code,

WHEREAS, ABM and its subsidiaries have 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, ABM and its subsidiaries have disclosed or will disclose to Executive such proprietary
trade secrets and other confidential business information which Executive will utilize in the
performance of his duties and responsibilities as Chief Executive Officer and under this Agreement,
and

WHEREAS, Executive wishes to, or has been and desires to remain employed by ABM, and to utilize
such proprietary trade secrets, other confidential business information and goodwill in connection
with his employment,

NOW THEREFORE, Executive and ABM agree as follows:

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

 

 

	2.	 	TITLE. Executive’s title shall be President and Chief Executive Officer of ABM, subject to
modification as mutually agreed upon by ABM and Executive.

	3.	 	DEFINITIONS. The capitalized terms used in this agreement shall have the following
definitions:

	 	A.	 	“ABM” means ABM Industries Incorporated, its successors, and assigns.
	 
	 	B.	 	“Base Salary” means the salary paid under Paragraph 7A for the applicable
Fiscal Year.
	 
	 	C.	 	“Board” means the Board of Directors of ABM.
	 
	 	D.	 	“Bonus” means a performance-based bonus payable under Paragraph 7B of this
Agreement.
	 
	 	E.	 	“CEO Committee” means a committee designated by the Board which shall
constitute all of the Independent Directors.
	 
	 	F.	 	“Company” means ABM and its subsidiaries.
	 
	 	G.	 	“Compensation Committee” means the Compensation Committee of the Board.
	 
	 	H.	 	“EOIP” means the ABM Executive Officer Incentive Plan adopted by the Board on
January 10, 2006, as such plan may be amended from time to time, or any successor plan.
	 
	 	I.	 	“Executive” means Henrik C. Slipsager.
	 
	 	J.	 	“Extended Term” means the period for which this agreement is extended under
Paragraph 14 of this Agreement.
	 
	 	K.	 	“Fiscal Year” means the period beginning on November 1 of a calendar year and
ending on October 31 of the following calendar year or such other period as shall be
designated by the Board as ABM’s fiscal year.

2

 

	 	L.	 	“Independent Directors” means the directors designated by the Board as
independent directors, which persons shall qualify both as independent under the rules
and regulations of the New York Stock Exchange and as outside directors under Section
162(m).
	 
	 	M.	 	“Initial Term” is the period beginning on the Effective Date and ending on
October 31, 2013, unless sooner terminated under Paragraph 15 of this Agreement.
	 
	 	N.	 	“Just Cause” means (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
employment duties, (vi) material and willful breach of this Agreement, (vii) other
misconduct, unethical or unlawful activity, (viii) a conviction of or plea of “guilty”
or “no contest” to a felony under the laws of the United States or any state thereof,
or (ix) a conviction of or plea of “guilty” or “no contest” to a misdemeanor involving
a crime of moral turpitude under the laws of the United States or any state thereof.
	 
	 	O.	 	“Performance Assessment” means the Compensation Committee’s annual assessment,
after consultation with the CEO Committee, of Executive’s performance against the
Performance Criteria.
	 
	 	P.	 	“Performance Criteria” means the performance criteria for Executive established
annually by the Compensation Committee, after consultation with the CEO Committee, in
accordance with Paragraph 7B of this Agreement.
	 
	 	Q.	 	“Section 162(m)” means Section 162(m) of the Internal Revenue Code of 1986, as
amended, and the regulations and guidance promulgated thereunder, or any successor
statute.
	 
	 	R.	 	“Section 409A” means Section 409A of the Internal Revenue Code of 1986, as
amended, and the regulations and guidance promulgated thereunder, or any successor
statute.
	 
	 	S.	 	“Significant Transaction” means the Company’s acquisition or disposition of a
business or assets which ABM is required to report under Item 2.01 of Form 8-K under
the rules and regulations issued by the Securities and Exchange Commission.

3

 

	 	T.	 	“State of Employment” means New York.
	 
	 	U.	 	“Target Bonus” means 100% of Executive’s Base Salary.
	 
	 	V.	 	“Total Disability” means Executive’s inability to perform his duties under this
Agreement and shall be deemed to occur on the 91st consecutive or non-consecutive
calendar day within any 12 month period that Executive is unable to perform his duties
under this Agreement because of any physical or mental illness or disability.

	4.	 	DUTIES & RESPONSIBILITIES. Executive shall assume and perform such executive or managerial
duties and responsibilities as are assigned from time-to-time by the Board, to which Executive
shall report and be accountable.

	5.	 	TERM OF AGREEMENT. This agreement shall end on October 31, 2013, unless sooner terminated
pursuant to Paragraph 15 or later extended to an Extended Term under Paragraph 14 of this
Agreement.

	6.	 	PRINCIPAL OFFICE. During the Initial Term and any Extended Term, as applicable, of this
Agreement, Executive shall be based at an ABM office located in the State of Employment or
such other location as shall be mutually agreed upon by the Board and Executive.

	7.	 	COMPENSATION. ABM 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:

	 	A.	 	SALARY. Executive shall be entitled to a Base Salary in an amount to be
determined by the CEO Committee in its sole discretion, provided that Executive’s
initial Base Salary shall be $765,000.
	 
	 	B.	 	BONUS. Subject to the provisions of the EOIP, the provisions of Paragraph 15
and subparagraphs (iii), (iv) and (v) below, Executive shall be entitled to a Bonus for
each Fiscal Year, as follows:

	 	i.	 	Executive’s Bonus may range from 0% to 180% of the Target Bonus
and shall be based on the Performance Assessment of Executive for the
applicable Fiscal Year evaluated on the basis of the Performance Criteria.

4

 

	 	 	 	Performance Criteria may include both ABM and individual objectives, may be
both qualitative and quantitative in nature and shall be established and
communicated to Executive within 90 days after the beginning of the Fiscal Year
for which they apply. The Compensation Committee or the CEO Committee (or
members of such committees) may seek the views of members of the Board with respect to whether the Performance Criteria have
been achieved, provided that the Performance Assessment shall be solely
determined by the Compensation Committee. The determination of the Bonus
amount for each Fiscal Year shall be determined by the CEO Committee.
	 
	 	ii.	 	The Performance Criteria may be adjusted by the Compensation
Committee, after consultation with the CEO Committee, in the event of a
Significant Transaction and/or for any unanticipated and material events that
are beyond the control of ABM, 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, rules of the New York Stock Exchange and/or for any other reason
which the Compensation Committee determines, in good faith, to be appropriate,
provided that no adjustment shall be permitted to the extent it would result in
the nondeductibility of any portion of the Bonus under 

Section 162(m).
	 
	 	iii.	 	ABM shall pay Executive the Bonus for each Fiscal Year as soon
as practicable following completion of the audit of ABM’s financial statements
for such Fiscal Year and within 10 days after determination of the Bonus by the
CEO Committee. Notwithstanding the foregoing, the Bonus shall be paid no later
than March 15th of the year following the end of the calendar year
in which the Bonus is earned. In the event of termination of employment
hereunder other than a termination under Paragraph 15B or a termination under
Paragraph 15C, ABM shall pay Executive a prorated portion of the Bonus, for the
fraction of the Fiscal Year that has been completed prior to the date of
termination, based on the Company’s actual performance for the entire Fiscal
Year. The prorated portion of the Bonus shall be paid at such time as bonuses
are paid to employees generally, but in no event later than March
15th of the year following the end of the calendar year in which the
bonus is no longer subject to a substantial risk of forfeiture.
	 
	 	iv.	 	Absent bad faith or material error, any conclusions of the
Compensation Committee or the CEO Committee with respect to the Performance
Criteria, the Performance Assessment, or the actual Bonus shall be final and
binding upon Executive and ABM.

5

 

	 	v.	 	Except as may otherwise be determined by the CEO Committee in
the event of extraordinary circumstances affecting the financial performance of
the Company, no Bonus for any Fiscal Year of ABM  shall be payable unless ABM’s
EPS for the Fiscal Year then ending is equal to or greater than 80% of ABM’s
EPS for the previous Fiscal Year of ABM.  Notwithstanding the above, no
determination by the Committee to pay Executive a Bonus pursuant to this
Paragraph shall result in the nondeductibility of any portion of such Bonus
under Section 162(m).
	 
	 	vi.	 	Notwithstanding any other provision of this Agreement, the CEO
Committee may, no later than 90 days after the beginning of any Fiscal Year
(but in no event later than the date required for the Bonus to qualify as
performance-based compensation within the meaning of Section 162(m)), approve
and notify the Executive of a modification to the Target Bonus or the bonus
range set forth in subparagraph (i) above. The CEO Committee’s decision in this
regard shall be deemed final and binding on Executive. In addition, the CEO
Committee may grant a discretionary incentive bonus to Executive at any time in
its sole discretion.

	 	C.	 	FRINGE BENEFITS. Executive shall receive the then current fringe benefits
generally provided by ABM to its executives. Such benefits may include but not be
limited to the use of an ABM-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 ABM policy at all times. Executive
expressly agrees that should he terminate employment with ABM for the purpose of being
re-employed by an ABM subsidiary or affiliate, he shall “carry-over” any previously
accrued but unused vacation balance to the books of the affiliate. ABM 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 senior executives at ABM.
	 
	 	D.	 	LIMIT. To the extent that any compensation to be paid to Executive under this
Agreement would cause compensation payable to Executive to be non-deductible by ABM as
a result of the compensation limit provisions of Section 162(m), Executive agrees that
any such amount in excess of such compensation limit shall not be paid out to Executive
but shall be deferred by Executive under the ABM Deferred Compensation Plan to the
extent permitted by Treas. Reg. 1.409A-2(b) (7) (i). The distribution of such deferred
amounts will be made during the first calendar year in which ABM reasonably anticipates
that, if the payment is made during that year, the deduction of the payment will not be
barred by Section 162(m) or, if sooner, upon the later of the end of the Fiscal Year
in which Executive incurs a “separation from service” within the meaning of Section
409A

6

 

	 	 	 	or the date which is two-and-one-half months following the date of such “separation
from service.” Amounts deferred by Executive will be credited with interest or gains
and losses in accordance with the ABM Deferred Compensation Plan.

	 	E.	 	POST EMPLOYMENT HEALTH INSURANCE ASSISTANCE. Subject to Paragraph 16 of this
Agreement, upon Executive’s termination of employment for any reason other than for
Just Cause and concluding no later than 10 years after such termination, ABM shall pay
Executive $10,000 per year to assist Executive in purchasing health insurance for
Executive and his spouse. In the event that Executive dies prior to the expiration of
such ten-year period, ABM shall pay Executive’s surviving spouse $5,000 per year until
the first to occur of (i) the death of Executive’s spouse or (ii) the end of the
ten-year period.

	8.	 	PAYMENT OR REIMBURSEMENT OF BUSINESS EXPENSES. ABM shall pay directly or reimburse Executive
for reasonable business expenses of ABM incurred by Executive in connection with ABM business
in accordance with the ABM Travel & Entertainment Policy, in effect from time to time.
	 
	9.	 	BUSINESS CONDUCT. Executive shall dedicate his full business time and attention to the
performance of duties hereunder, perform his duties in good faith and to a professional
standard, and fully comply with all laws and regulations pertaining to the performance of this
Agreement, all ethical rules, and ABM’s Code of Business Conduct, as well as any and all of
policies, procedures and instructions of Company including but not limited to the provisions
of Section 304 of the Sarbanes-Oxley Act of 2002. Executive agrees that if he is approached
by any person to discuss a possible acquisition or other transaction that could reasonably
result in a change of control of ABM, Executive will immediately advise ABM’s General Counsel
and Chairman of the Board.
	 
	10.	 	NO CONFLICT. Executive represents to ABM 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 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 ABM that have not been fully disclosed to ABM prior to the signing of this
Agreement.

	11.	 	COMPANY PROPERTY. ABM shall, from time to time, entrust to the care, custody and control of
Executive certain of the Company’s property, such as motor vehicles, equipment, supplies,
passwords and electronic and paper 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,

7

 

	 	 	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 the Company, notwithstanding
their preparation, care, custody, control or possession by Executive at any time(s)
whatsoever.

12. GOODWILL & PROPRIETARY INFORMATION. In connection with Executive’s employment hereunder:

	 	A.	 	PROPRIETARY INFORMATION. Executive agrees to utilize and further the Company’s
goodwill among its customers, sales prospects and employees, and acknowledges that the
Company may disclose to Executive and Executive may disclose to the Company Proprietary
Information (as hereinafter defined).
	 
	 	B.	 	DUTY OF LOYALTY. Executive agrees that the Proprietary Information and the
Company’s goodwill have unique value to the Company, are not generally known or readily
available to the Company’s competitors, and could only be developed by others after
investing significant time and money. ABM makes the Proprietary Information and the
Company’s goodwill available to Executive in reliance on Executive’s agreement to hold
the Proprietary Information and the Company’s goodwill in trust and confidence.
Executive hereby acknowledges that to use this Proprietary Information and the
Company’s goodwill other than for the benefit of the Company would be a breach of such
trust and confidence and a violation of Executive’s duty of loyalty to the Company.

	13.	 	RESTRICTIVE COVENANTS. In consideration of the compensation, contract term, potential
severance benefits, continued employment provided by ABM, and access to Proprietary
Information, as defined below, necessary to the performance of Executive’s duties hereunder,
Executive hereby agrees to the following during his employment and thereafter as provided:

	 	A.	 	NON-SOLICITATION OF EMPLOYEES. Executive acknowledges and agrees that during
the course of Executive’s employment with ABM, Executive will come into contact with
Company employees and acquire information regarding their knowledge, skills, abilities,
salaries, commissions, benefits, and other matters that are not generally known to the
public. Executive further acknowledges and agrees that hiring, recruiting, soliciting,
or inducing the termination of such employees will be detrimental and harmful to
Company’s business. Accordingly, Executive agrees that while employed by ABM and for a
period of one year following the termination of Executive’s employment (whether

8

 

	 	 	 	termination is voluntary or involuntary), Executive will not directly or indirectly
solicit, hire, recruit or otherwise encourage or arrange for any executive or
employee to terminate employment with Company or any other Company-affiliated entity
except in the proper performance of this Agreement. This prohibition against
solicitation shall include but not be limited to: (i) identifying to other employers
or their agents, recruiting or staffing firms, or other third parties the Company
employee(s) who have specialized knowledge concerning inventions, processes,
methods, or other confidential affairs or who have contacts, experience, or
relationships with particular customers; (ii) disclosing or commenting to other
employers or their agents, recruiting or staffing firms, or other third parties
regarding the quality or quantity of work, specialized knowledge, or personal
characteristics of any person still employed by Company or any other
Company-affiliated entity; and (iii) providing such information to prospective
employers or their agents, recruiting or staffing firms, or other third parties
preceding possible employment.

	 	B.	 	NON-DISCLOSURE. Except in the proper performance of this Agreement, Executive
agrees to hold all Proprietary Information in the strictest confidence, and to refrain
from making any unauthorized use or disclosure of such information both during
Executive’s employment and at all times thereafter. Executive shall not directly or
indirectly disclose, reveal, transfer or deliver to any other person or business, any
Proprietary Information which was obtained directly or indirectly by Executive from, or
for, Company or by virtue of Executive’s employment with Company. “Proprietary
Information” means Company’s trade secrets, ideas, processes and other confidential
information not generally known that could have value to a third party such as plans
for business development, marketing, business plans, budgets and financial statements
of any kind, costs and suppliers, and information regarding the skills and compensation
of other employees of the Company or employees of any company that contracts to provide
services to the Company. Proprietary Information also includes information of third
parties to which Executive had access by virtue of employment with the Company,
including, but not limited to, information regarding customers such as: (i) the
identity of Company’s customers, customer contacts, and sales prospects; (ii) the
nature, extent, frequency, methodology, cost, price and profit associated with services
and products purchased by customers from Company; (iii) the names, office hours,
telephone numbers and street addresses of its purchasing agents or other buyers or
customer contacts; (iv) Company and customer billing procedures; (v) Company and
customer credit limits and payment practices; (vi) Company and customer organizational
structure; and (vii) any information related to past, current or future acquisitions
between Company or Company-affiliated entities including Company information used or
relied upon for said acquisition.

9

 

	 	C.	 	NON-SOLICITATION OF CUSTOMERS. Executive agrees that during and for one year
following the termination of Executive’s employment with ABM (whether such termination
is voluntary or involuntary), Executive shall not, directly or indirectly, for the
benefit of any person or entity other than the Company, seek, solicit, divert, take
away, obtain or accept work from any customer or prospective customer of the Company.
In addition, Executive agrees that at all times after the voluntary or involuntary
termination of Executive’s employment, Executive shall not seek, solicit, divert, take
away, obtain, or accept work from any customer or sales prospect of Company or any
other Company-affiliated entity through the direct or indirect use of any Proprietary
Information or by any other unfair or unlawful business practice.
	 
	 	D.	 	POST EMPLOYMENT COMPETITION. Executive agrees that while employed by ABM and,
to the fullest extent allowed by law, for a period of one year following Executive’s
termination of employment (whether such termination is voluntary or involuntary),
Executive shall not engage in any business activity which competes directly or
indirectly with the Company or the operations of any Company-affiliated entity. The
Executive acknowledges that the Company is engaged in business in various states
throughout the U.S. and that the Company intends to expand the geographic scope of its
activities. Accordingly and in view of the nature of Executive’s position and
responsibilities, the Executive agrees that the provisions of this Paragraph shall be
applicable to each state and each foreign country in which the Company may be engaged
in business within the twelve-month period preceding the effective date of Executive’s
termination of employment.
	 
	 	E.	 	NON-DISPARAGEMENT. During Executive’s employment with ABM and thereafter,
Executive agrees not to make any statement or take any action which disparages,
defames, or places in a negative light Company, Company-affiliated entities, or its or
their reputation, goodwill, commercial interests or past and present officers,
directors and employees.
	 
	 	F.	 	COOPERATION WITH LEGAL MATTERS IN SUPPORT OF COMPANY. During Executive’s
employment with ABM and thereafter, Executive shall cooperate with Company and any
Company-affiliated entity in its or their investigation, defense or prosecution of any
potential, current or future legal matter in any forum, including but not limited to
lawsuits, administrative charges, audits, arbitrations, and internal and external
investigations. Executive’s cooperation shall include, but is not limited to,
reviewing and preparing documents and reports, meeting with attorneys representing
Company or any Company-affiliated entity, providing truthful testimony, and
communicating Executive’s knowledge of relevant facts to any attorneys, experts,
consultants, investigators, employees or other representatives working on behalf of
Company

10

 

	 	 	 	or any Company-affiliated entity. Except as required by law, Executive agrees to
treat all information regarding any such actual or potential investigation or claim
as confidential. Executive also agrees not to discuss or assist in any litigation,
potential litigation, claim, or potential claim with any individual (or their
attorney or investigator) who is pursuing, or considering pursuing, any claims
against Company or any Company-affiliated entity unless required by law. In
performing the tasks outlined in this Paragraph, Executive shall be bound by the
covenants of good faith and veracity set forth in ABM’s Code of Business Conduct and
Ethics and by all legal obligations. Nothing herein is intended to prevent
Executive from complying in good faith with any subpoena or other affirmative legal
obligation. Executive agrees to notify Company immediately in the event there is a
request for information or inquiry pertaining to Company, any Company-affiliated
entity, or Executive’s knowledge of or employment with the Company. In performing
responsibilities under this Paragraph at the request or for the benefit of the
Company, Executive shall be compensated for Executive’s time at an hourly rate of
$400 per hour. However, during any period in which Executive is an employee of ABM
or is receiving payments pursuant to Paragraph 15 of this Agreement or pursuant to
the terms of any Other Severance Agreement (as hereinafter defined), Executive shall
not be so compensated.
	 
	 	G.	 	REMEDIES AND DAMAGES. The parties agree that compliance with Paragraph 13 of
the Agreement is necessary to protect the business and goodwill of Company, that the
restrictions contained herein are reasonable and that any breach of this Paragraph will
result in irreparable and continuing harm to Company, for which monetary damages may
not provide adequate relief. Accordingly, in the event of any actual or threatened
breach of this Paragraph by Executive, Company and Executive agree that Company shall
be entitled to all appropriate remedies, including temporary restraining orders and
injunctions enjoining or restraining such actual or threatened breach. Executive
hereby consents to the issuance thereof forthwith by any court of competent
jurisdiction.
	 
	 	H.	 	LIMITATIONS. 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.

	14.	 	EXTENSION OF EMPLOYMENT.

	 	A.	 	RENEWAL. Absent at least 90 days written notice of termination of employment
or notice of non-renewal from ABM to Executive prior to expiration of the then current
Initial or Extended Term, as applicable, of this Agreement, employment

11

 

	 	 	 	hereunder shall continue for an Extended Term (or another Extended Term, as
applicable) of one year.
	 
	 	B.	 	NOTICE OF NON-RENEWAL. In the event that notice of non-renewal is given at
least 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, ABM shall
have the right to terminate Executive’s employment or to change the terms and
conditions of Executive’s employment, including but not limited to Executive’s position
and/or compensation. For the avoidance of doubt, Executive will not be entitled to
receive any payments under this Agreement or any policy or plan of the Company as in
effect from time to time that provides for payment of amounts on termination of
employment, by reason of the Company electing not to renew this Agreement.

15. TERMINATION OF EMPLOYMENT.

	 	A.	 	TERMINATION UPON EXPIRATION OF TERM. Either the Company or the Executive may
elect to terminate Executive’s employment upon the Company providing Executive with a
notice of non-renewal pursuant to Paragraph 14B above, in which event Executive’s
employment shall terminate at the expiration of the then current Initial or Extended
Term. Upon termination pursuant to this Paragraph, Executive shall not be entitled to
any payments under the Agreement other than (i) the payment when due of any and all
previously earned, but as yet unpaid, salary, and reimbursement of business expenses
and fringe benefits (“Accrued Compensation”), (ii) any payments to be made pursuant to
Paragraph 7E, and (iii) an amount with respect to Bonus (if any) as determined by the
CEO Committee pursuant to Paragraph 7B; provided, however, that if the expiration of
the term is in connection with a termination of employment for Just Cause or a
voluntary termination of employment by Executive, such termination will be governed by
the provisions of Paragraphs 15B and 15C, respectively. The prorated portion of the
Bonus (if any) shall be paid at such time as bonuses are paid to employees generally,
but in no event later than March 15th of the year following the end of the calendar
year in which the bonus is no longer subject to a substantial risk of forfeiture.
	 
	 	B.	 	TERMINATION FOR CAUSE. ABM may 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 Just Cause. Upon such termination, Executive shall not be entitled to any
payments under this Agreement other than the Accrued Compensation.

12

 

	 	C.	 	VOLUNTARY TERMINATION BY EXECUTIVE. At any time during the Initial or then
current Extended Term, as applicable, of this Agreement and with or without Just Cause,
Executive may terminate employment hereunder by giving ABM 90 days’ prior written
notice, and Executive shall not be entitled to any payments under this Agreement other
than Accrued Compensation and those payments provided under Paragraph 7E.
	 
	 	D.	 	DISABILITY OR DEATH. Employment hereunder shall automatically terminate upon
the Total Disability or death of Executive. ABM shall pay when due to Executive or,
upon death, Executive’s designated beneficiary or estate, as applicable, (i) the
Accrued Compensation, and (ii) a prorated portion of the Bonus for the fraction of the
Fiscal Year that has been completed through the end of the month in which death or
Total Disability occurs, based on the Company’s actual performance for the entire
Fiscal Year, such prorated portion to be paid at the time set forth in Paragraph
7B(iii). Upon such termination, Executive shall not be entitled to any other payments
under this Agreement other than those provided under Paragraph 7E.
	 
	 	E.	 	TERMINATION WITHOUT CAUSE. ABM may terminate Executive’s employment hereunder
without Just Cause at any time during the Initial or then current Extended Term of this
Agreement, as applicable, by giving Executive 90 days written notice. Upon such
termination without Just Cause, in addition to the Accrued Compensation, Executive
shall be entitled to receive two times the sum of Executive’s Base Salary and Target
Bonus payable, subject to Paragraph 16 of this Agreement, in equal installments in
accordance with the Company’s normal payroll practice over the twenty-four month period
following Executive’s termination of employment. Upon such termination, Executive
shall not be entitled to any other payments under this Agreement other than those
provided under Paragraph 7E.
	 
	 	F.	 	OTHER OBLIGATIONS. A termination of employment pursuant to Paragraph 15 of
this Agreement will not affect any rights that Executive may have pursuant to any
agreement, policy, plan, program or arrangement of the Company or Subsidiary providing
employee benefits, which rights will be governed by the terms thereof. To the extent
that Executive receives payments or benefits by reason of his termination of employment
pursuant to any other severance agreement or employee plan (collectively, “Other
Severance Agreements”), the amounts otherwise receivable under Paragraph 15 will be
reduced by the amounts actually paid pursuant to the Other Severance Agreements, but
not below zero, to avoid duplication of payments so that the total amount payable or
value of benefits receivable hereunder and under the Other Severance Agreements is not
any more or less than the amounts so payable or value so receivable had such benefits
been paid in full hereunder.

13

 

	 	G.	 	PAYMENTS AND BENEFITS WITH RESPECT TO A CHANGE IN CONTROL. Notwithstanding
anything to the contrary in this Agreement or otherwise, if Executive employment is
terminated during the “Severance Period” (as defined in the Severance Agreement entered
into between Executive and the Company on December 13, 2005, as amended from time to
time), Executive shall not be entitled to payments and benefits under Paragraph 15 of
this Agreement and, alternatively, Executive’s entitlement to payments and benefits, if
any, shall be governed by the terms of such Severance Agreement.
	 
	 	H.	 	ACTIONS UPON TERMINATION. Upon termination of employment hereunder, Executive
shall immediately resign as an officer and/or director of Company and of any Company
subsidiaries or affiliates, 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 11 of this Agreement.

	16.	 	CONDITIONS TO PAYMENT AND ACCELERATION; CODE SECTION 409A. Notwithstanding anything contained
herein to the contrary, Executive shall not be considered to have terminated employment with
ABM for purposes of this Agreement and no payments shall be due to Executive under this
Agreement or any policy or plan of ABM as in effect from time to time, providing for payment
of amounts on termination of employment, unless Executive would be considered to have incurred
a “separation from service” from ABM within the meaning of Section 409A. Each amount to be
paid or benefit to be provided under this Agreement shall be construed as a separate
identified payment for purposes of Section 409A, and any payments described in Paragraph 15E
of this Agreement that are due within the “short term deferral period” as defined in Section
409A shall not be treated as deferred compensation unless applicable law requires otherwise.
To the extent required in order to avoid accelerated taxation and/or tax penalties under
Section 409A, amounts that would otherwise be payable and benefits that would otherwise be
provided pursuant to this Agreement during the six-month period immediately following
Executive’s termination of employment shall instead be paid on the first business day after
the date that is six months following Executive’s termination of employment (or upon
Executive’s death, if earlier). In addition, to the extent required in order to avoid
accelerated taxation and/or tax penalties under Section 409A, if Executive terminates
employment after October 15th of any year, amounts that would otherwise be payable
and benefits that would otherwise be provided pursuant to this policy prior to December
31st of the year in which the termination of employment occurs shall, subject to
the previous sentence of this Paragraph, instead be paid on the first business day following
January 1st of the year following Executive’s termination of employment.

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

14

 

	18.	 	REMEDIES & DAMAGES.

	 	A.	 	INJUNCTIVE RELIEF. The parties agree that compliance with Paragraphs 12 and 13
of this Agreement is necessary to protect the business and goodwill of the Company, and
that any breach of such Paragraphs will result in irreparable and continuing harm to
Company, for which monetary damages may not provide adequate relief. Accordingly, in
the event of any actual or threatened breach of Paragraphs 12 and 13 of this Agreement
by Executive, ABM and Executive agree that ABM shall be entitled to all appropriate
remedies, including temporary restraining orders and injunctions enjoining or
restraining such actual or threatened breach. Executive hereby consents to the issuance
thereof forthwith by any court of competent jurisdiction.
	 
	 	B.	 	WITHHOLDING AUTHORIZATION. To the fullest extent permitted under the laws of
the State of Employment hereunder, Executive authorizes ABM to withhold from any
severance payments otherwise due to Executive and from any other funds held for
Executive’s benefit by ABM, any damages or losses sustained by Company as a result of
any material breach or other material violation of this Agreement by Executive, pending
resolution of the underlying dispute.

	19.	 	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.

	20.	 	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 consider such provision
void.

	21.	 	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
provisions of Paragraph 13 of this Agreement, shall remain in full force and effect after the
termination of this Agreement.

	22.	 	REPRESENTATIONS. Executive represents and agrees that he has carefully read and fully
understands all of the provisions of this Agreement, that he is voluntarily entering

15

 

     into this Agreement and has been given an opportunity to review all aspects of this
Agreement with an attorney, if he chooses to do so.

	23.	 	NOTICES.

	 	A.	 	ADDRESSES. 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:
	 	Henrik C. Slipsager
	 

	 	 	 	17 Stratton Road
	 

	 	 	 	Purchase, NY 10577
	 
	 	 	 	 
	 

	 	ABM:
	 	ABM Industries Incorporated
	 

	 	 	 	551 Fifth Avenue
	 

	 	 	 	New York, New York 10176
	 

	 	 	 	Attention: Board of Directors
	 
	 	 	 	 
	 

	 	Copy:
	 	ABM Industries Incorporated
	 

	 	 	 	551 Fifth Avenue
	 

	 	 	 	New York, New York 10176
	 

	 	 	 	Attention: General Counsel

	 	B.	 	RECEIPT. Any such notice shall be assumed to have been received when delivered
in person or 48 hours after being sent in the manner specified above.

	24.	 	ENTIRE AGREEMENT. Unless otherwise specified herein, this Agreement sets forth every
contract, understanding and arrangement as to the employment relationship between Executive
and ABM.

	 	A.	 	NO EXTERNAL EVIDENCE. 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.
	 
	 	B.	 	SUPERSEDES OTHER AGREEMENTS. It is specifically understood and accepted that
this Agreement supersedes all oral and written employment agreements between Executive
and ABM prior to the date of this Agreement as well as all conflicting provisions of
Company’s Human Resources Manual,

16

 

	 	 	including but not limited to the termination, discipline and discharge provisions
contained therein.
	 
	C.	 	AMENDMENTS. This Agreement may not be amended except in a writing approved by
the Board and signed by the Executive and the Chair of the Compensation Committee.

[Remainder of this page is intentionally left blank]

17

 

               IN WITNESS WHEREOF, Executive and the Chair of the Compensation Committee of the Board have
executed this Agreement as of the date set forth above.

Executive: Henrik C. Slipsager

	 	 	 	 	 
	 

	 	Signature:
	 	/s/ Henrik C. Slipsager
	 
	 	 	 	 
	 

	 	Date:
	 	July 15, 2008

ABM: ABM Industries Incorporated

	 	 	 	 	 
	 

	 	Signature:
	 	/s/ Linda Chavez
	 
	 	 	 	 
	 

	 	Title:
	 	Chair of the Compensation Committee of the
Board of Directors
	 
	 	 	 	 
	 

	 	Date:
	 	July 15, 2008

18

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