Document:

exv10w10

 

EXHIBIT 10.10

ABM INDUSTRIES INCORPORATED

SERVICE AWARD BENEFIT PLAN

As amended and restated as of January 11, 2005

	 	 	 	 	 
	Article	 	 	 	Commencing
	Number	 	Description	 	on page
	 
	1.
	 	NAME, EFFECTIVE DATE, PURPOSE AND CONSTRUCTION	 	1-1
	 
	 	 	 	 
	2.
	 	DEFINITIONS	 	2-1
	 
	 	 	 	 
	3.
	 	ELIGIBILITY, PARTICIPATION AND BENEFICIARY DESIGNATION	 	3-1
	 
	 	 	 	 
	4.
	 	BENEFITS	 	4-1
	 
	 	 	 	 
	5.
	 	FORFEITURES OF BENEFITS	 	5-1
	 
	 	 	 	 
	6.
	 	PARTICIPANTS’ ACCOUNTS	 	6-1
	 
	 	 	 	 
	7.
	 	DISTRIBUTION OF BENEFITS	 	7-1
	 
	 	 	 	 
	8.
	 	FIDUCIARY RESPONSIBILITY	 	8-1
	 
	 	 	 	 
	9.
	 	ADMINISTRATIVE COMMITTEE	 	9-1
	 
	 	 	 	 
	10.
	 	AMENDMENT AND TERMINATION	 	10-1

 

 

1-1

ABM INDUSTRIES INCORPORATED

SERVICE AWARD BENEFIT PLAN

ARTICLE 1

NAME, EFFECTIVE DATE, PURPOSE AND CONSTRUCTION

	1.1  	Plan Name
	 
	   	The Plan set forth in this document shall be designated the ABM Industries Incorporated
Service Award Benefit Plan.
	 
	1.2  	Effective Date
	 
	   	The Effective Date of this Plan was November 1, 1989. This document reflects amendments and
changes made through January 1, 1991.
	 
	1.3  	Purpose
	 
	   	The Plan is intended to qualify as a severance pay plan described in Department of Labor
Regulations 2510.3-1 (a) (2) and 2510.3-2 (b) and is intended to be treated as a employee
welfare plan under ERISA. The Plan is intended to provide benefits to terminating employees
based upon their loyal and dedicated service to the Company and its Affiliates.
	 
	1.4  	Construction
	 
	   	The following miscellaneous provisions shall apply in the construction of this Plan
document:

	 	(a)  	State Jurisdiction
	 
	 	   	All matters respecting the validity, effect, interpretation and administration of
this Plan shall be determined in accordance with the laws of the State of California
except where preempted by ERISA or other federal statutes.
	 
	 	(b)  	Gender
	 
	 	   	Wherever appropriate, words used in the singular may include the plural or the
plural may be read as the singular, the masculine may include the feminine, and the
neuter may include both the masculine and the feminine.
	 
	 	(c)  	Application of References to Law
	 
	 	   	All references to sections of ERISA, or the Internal Revenue Code, other federal or
state statutes, any regulations or rulings thereunder, shall be deemed to refer to
such sections as they may subsequently be modified, amended, replaced or amplified
by any federal statutes, regulations or rulings of similar application and import
enacted by the Government of the United States, any duly authorized agency of the
United States Government, any State Government or duly authorized agency thereunder.

 

 

1-2

	 	(d)  	Enforceable Provisions Remain Effective
	 
	 	   	If any provision of this Plan shall be held by a court of competent jurisdiction to
be invalid or unenforceable, the remaining provisions of this Plan shall continue to
be fully effective.
	 
	 	(e)  	Headings
	 
	 	   	Headings are inserted for reference only and constitute no part of the construction
of this Plan.

	1.5  	Employment Relationship Not Affected
	 
	   	Nothing in this Plan document shall be deemed a contract between the Employer and any
Employee, nor shall the rights or obligations of the Employer or any Employee to continue or
terminate employment at any time be affected hereby.

 

 

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ARTICLE 2

DEFINITIONS

	2.1  	“Account” means the aggregate of all records maintained by the Committee for
purposes of determining a Participant’s or Beneficiary’s benefits under the Plan.
	 
	2.2  	“Affiliated Employer” means any corporation which is so designated by the
Board, which may include any corporation or business determined to be affiliated
under Code Section 414 or any other corporation or business which is affiliated to
some degree with the Employer.
	 
	2.3  	“Award Date” means October 31, 1990, each succeeding October 31 and any
other date elected by the Board at its discretion. Effective January 1, 1991,
	 
	   	“Award Date” shall mean December 31, 1991 and each succeeding December 31.
	 
	2.4  	“Beneficiary” means any person designated by a Participant.
	 
	2.5  	“Board” shall mean the Board of Directors of the Employer.
	 
	2.6  	“Code” means the Internal Revenue code of 1986, as amended (and regulations issued
thereunder).
	 
	2.7  	“Committee” means the Administrative Committee designated under Article 9.
	 
	2.8  	“Compensation” for any calendar year means all amounts paid to the Employee and
reported as wages on the Employee’s form W-2 for the year for services rendered for the
Employer or Affiliated Employers during the calendar year, and all amounts which an Employee
elected to have the Employer or Affiliated Employer contribute on his behalf to the ABM 401(k)
and Profit Sharing Plan or the ABM Deferred Compensation Plan for the calendar year.
Compensation in excess of $175,000 shall not be considered in the calculation of benefits;
provided, however, the $175,000 limit shall not replace any limit in place for any year prior
to 1996 under this Plan.
	 
	2.9  	“Date of Eligibility” shall mean (1) for Eligible Employees hired after October 31,
1989, the date on which the Employee first performs any service for the Employer, (2) for
Eligible Employees employed on or before October 31, 1989, November 1, 1989. Effective
January 1, 1992, “Date of Eligibility” shall mean the January 1 following the date on which
the Employee has Compensation in excess of $50,000, or such other dollar amount as the
Committee may from time to time announce.
	 
	2.10  	“Date of Hire” shall mean the date on which the Employee becomes an employee of the
Employer or an Affiliated Employer within the meaning of Code Section 3121(d).

 

 

2-2

	2.11  	“Disability” shall mean the permanent incapacity of a Participant, by reason of
physical or mental illness, to perform his usual duties for the Employer, resulting in
termination of his service with the Employer or any Affiliated Employer. Disability shall be
determined by the Committee in a uniform and nondiscriminatory manner after consideration of
such evidence as it may require, which shall include a report of such physician or physicians
as it may designate.
	 
	2.12  	“Eligible Employee” shall have the meaning as defined in Article 3.
	 
	2.13  	“Eligible Participant” shall mean:

	 	(a)  	An Eligible Employee who was employed continuously throughout the
Fiscal Year, or
	 
	 	(b)  	an Eligible Employee who terminated employment during the Fiscal Year due to
death, disability or after having reached his Normal Retirement Date.

	2.14  	“Employee” means any person considered under the rules of common law or appropriate
statute to be employed by the Employer or an Affiliated Employer, except:

	 	(a)  	Employees whose wages are determined by collective bargaining agreements,
	 
	 	(b)  	Employee Employees who are receiving pension contributions
under a union retirement plan, and
	 
	 	(c)  	Contract workers of the Employer or an Affiliated Employer who are
employed to perform principally manual work, including but not limited
to elevator operator, janitor, security worker, guard, window washer,
stationary engineer, painter, warehouseman, driver, parking attendant,
mechanic, electrician, laundry worker or service technician.

	2.15  	“Employer” means ABM Industries Incorporated, a Delaware corporation, and
such of its successors or assigns as may expressly adopt this Plan and agree in
writing to continue this Plan.
	 
	2.16  	“Entry Date” means November 1, 1989, and each succeeding November 1.
Effective January 1, 1991, “Entry Date” means January 1 and each succeeding
January 1.
	 
	2.17  	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
	 
	2.18  	“Fiscal Year” means the accounting year of the Plan, which is the 12-month period
ending October 31. Effective January 1, 1991, “Fiscal year” means the 12-month period
ending December 31.
	 
	2.19  	“Normal Retirement Date” means the date of the Participant’s 62nd
birthday.
	 
	2.20  	“Participant” means any Employee who has entered the Plan and been credited
with Service Award Benefits but has not yet had such benefits distributed.

 

 

2-3

	2.21  	“Plan” means the arrangement created by this document.
	 
	2.22  	“Plan Administrator” means the Administrative Committee, discussed in
Article 9.
	 
	2.23  	“Restricted Employee” shall mean all officers, managers and sales persons of the
Employer or an Affiliated Employer.
	 
	2.24  	“Service Award Benefit” means the benefit calculated under Section 4.2.

 

 

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ARTICLE 3

ELIGIBILITY, PARTICIPATION AND BENEFICIARY DESIGNATION

	3.1  	Definitions

	 	(a)  	“Eligible Employee” means any Employee of the Employer or an
Affiliated Employer whose Compensation is $50,000 or greater in any calendar year.
The $50,000 dollar amount may be adjusted from time to time as the Plan
Administrator may deem necessary. The foregoing notwithstanding, an Employee shall
not be an Eligible Employee during any Fiscal Year the Employee is also eligible to
receive contributions under or make 401(k) contributions to the ABM 401(k) and
Profit Sharing Plan.
	 
	 	(b)  	There shall be no additional Eligible Employees designated after December 31,
2001.

	3.2  	Participation

	 	(a)  	Initial Participants
	 
	 	   	Employees who are Eligible Employees as of October 31, 1989 shall become
Participants as of November 1, 1989.
	 
	 	(b)  	Newly Hired Employees
	 
	 	   	Employees who are hired after October 31, 1989, shall become Participants as of the
first November 1, or such earlier date, after certification by the Committee that
the Employee is an Eligible Employee. Employees hired after January 1, 1991 shall
become Participants as of the first January 1, or such earlier date, after
certification by the Committee that the Employee is an Eligible Employee.
	 
	 	(c)  	Other Employees
	 
	 	   	Other Employees shall become Participants as of the first November 1, or such
earlier date, after certification by the Committee that the Employee is an Eligible
Employee. Effective January 1, 1991,the November 1 participation date in this
Article shall be changed to January 1.
	 
	 	(d)  	Rehired Employees
	 
	 	   	A rehired Employee shall be treated as an Employee hired after October 31, 1989,
unless the Employee was a Participant in the Plan. Section 2.16 of the Plan
notwithstanding, former Plan Participants shall renew their participation in the
Plan as of the July 1 or January 1 coinciding with or next following their date of
rehire provided they are otherwise eligible for the Plan.

	3.3  	Beneficiary Designation

	 	(a)  	Designation Procedure
	 
	 	   	Each Eligible Employee, upon becoming a Participant shall designate a Beneficiary or
Beneficiaries to receive benefits under the Plan after his death. A Participant may
change his beneficiary designation at any time. Each beneficiary designation shall
be in a form prescribed by the Committee and will be effective

 

 

3-2

	 	  	only when filed with the Committee during the Participant’s lifetime. Each
beneficiary designation filed with the Committee will cancel all previously filed
Beneficiary designations.
	 
	 	(b)  	Lack of Designation
	 
	 	   	In the absence of a valid designation, the Participant’s benefits under the Plan
shall be distributed to the Participant’s surviving spouse, or if there is no
surviving spouse to the Participant’s estate.

	3.4  	Committee Determines Eligibility
	 
	   	Compliance with the eligibility requirements shall be determined by the Committee, which
shall also inform each Eligible Employee of his becoming a Participant. The Committee shall
provide each participant with a summary plan description in compliance with ERISA and
regulations thereunder.

 

 

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ARTICLE 4

BENEFITS

	4.1  	Credits for Service Award Benefits

	 	(a)  	On each Award Date, commencing October 31, 1990, the Board shall
Credit the Account of each Eligible Participant with 7 days, to be used in the
calculation of Benefits under Article 4.2. For the short Fiscal Year beginning
October 1, 1991 and ending December 31, 1991, the Board shall determine the number
of days to be credited to each Eligible Participant, if any.
	 
	 	(b)  	In addition to (a) above, on each Award Date, commencing October 31, 1990, the
Board may, in it’s sole discretion, designate an additional number of days to be
credited to the Account of each Eligible Participant.
	 
	 	(c)  	If an employee reenters the Plan on July 1 of any year, the
Employee/Participant shall be to 1/2 the number of days awarded under (a) and (b) above
to other Employees who participated for the entire year.

	4.2  	Calculation of Service Award Benefit
	 
	   	Upon termination of employment, the Committee shall determine the benefit payable to the
Participant. The benefit shall be equal to the number of days credited to the Account of
the eligible Employee multiplied by the average annual Compensation received in the three
full calendar years of full-time employment preceding the year of termination converted to a
daily rate of pay. For purposes of this calculation, a year shall consist of 260 days.

	4.3  	Limitation on Benefits
	 
	   	In no event shall the benefits payable under this Plan combined with the benefits under the
severance pay plan of the Employer, as described in Chapter 3, III, (b) of the ABMI
Personnel Policy and Procedure Manual, as it may be amended or revised from time to time,
exceed two times the Compensation received by the Participant in the twelve month period
preceding the Participant’s termination from employment.

 

 

5-1

ARTICLE 5

FORFEITURES OF BENEFITS

	5.1  	Forfeiture for Short Service
	 
	   	A Participant who terminates employment prior to completing 5 full years of service,
measured from the Employee’s Date of Hire, for the Employer or an Affiliated Employer shall
forfeit all benefits under this Plan. A Participant will be credited with one year of
service for each 12 month period of continuous employment wit the Employer or an Affiliated
Employer.
	 
	5.2  	Exceptions

	 	(a)  	Death
	 
	 	   	Notwithstanding Article 5.1 above, a Participant’s benefits under this Plan shall
not be forfeitable if the termination of employment is due to the death of the
Participant.
	 
	 	(b)  	Disability
	 
	 	   	Notwithstanding Article 5.1 above, a Participant’s benefits under this Plan shall
not be forfeitable upon a finding by the Committee that the Participant’s
termination of employment is due to Disability defined in Article 2.11.
	 
	 	(c)  	Normal Retirement
	 
	 	   	Notwithstanding Article 5.1 above, a Participant’s benefits under this Plan shall
not be forfeited if the Participant’s termination occurs after the Participant’s
Normal Retirement Date under this Plan.
	 
	 	(d)  	Notwithstanding Article 5.1 above, if a Participant’s employment is terminated
by action of the Employer as part of the divestiture of Amtech Elevator Services, the
Participant’s Account under the Plan shall become fully vested on the closing of the
divestiture transaction.

	5.3  	Unallocatable Participants
	 
	   	If all or any portion of a Participant’s benefits become payable under this Plan,
and the Committee after a reasonable search cannot locate the Participant or his
Beneficiary (if such Beneficiary is entitled to payment) the Account shall be
Forfeited as of the end of the third Fiscal Year following the Participant’s
termination from employment.
	 
	5.4  	Forfeiture for Cause
	 
	   	A Participant who is terminated from employment because of theft, defalcation, or
embezzlement from the Employer, an Affiliated Employer, or a customer or client of either
the Employer or an Affiliated Employer, shall forfeit all benefits under this Plan.

 

 

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ARTICLE 6

PARTICIPANTS ACCOUNTS

	6.1  	Service Award Account
	 
	   	The Committee shall maintain an accounting of the number of days and weeks, or portions
thereof, awarded to each Participant along with a record of the Compensation received by the
Participant for the current calendar year and the two preceding calendar years.
	 
	6.2  	Statement of Accounts
	 
	   	At least annually, the Committee will provide the Participant with a statement of the status
of the Participant’s Account and the record of Compensation in that Account. In the event
of any error, the Participant is entitled to request the Committee to correct either the
number of days or weeks credited, or the Compensation credited.

 

 

7-1

ARTICLE 7

DISTRIBUTION OF BENEFITS

	7.1  	General
	 
	   	Benefits under the Plan are paid solely from the assets of the Employer. This Plan document
grants the Participants no greater right to the assets of the Employer and Affiliated
Employers than that enjoyed by any unsecured creditor of the Employer and Affiliated
employers.
	 
	7.2  	Administrative Rules

	 	(a)  	Authority
	 
	 	   	Distributions to Participants shall be made only in accordance with the directions
of the Committee, which shall be governed by the terms of this Plan documents.
	 
	 	(b)  	Claims
	 
	 	   	A Participant’s Beneficiary has the right to file a claim for benefits as set forth
in Article 9.7.

	7.3  	Timing and Amount of Distributions

	 	(a)  	Restricted Employees
	 
	 	   	A Participant who is a Restricted Employee shall receive his benefits in two
payments from the Plan. The first payment, equal to 1/2 of the total benefit due,
will be made in the eleventh month following the Participant’s termination from
employment. The second payment, equal to 1/2 of the total benefit due, will be made
no later than the last day of the 23rd month following the Participant’s
termination from employment. In the event the Employer or Affiliated Employer
sells, closes or otherwise disposes of a subsidiary, division or other operating
unit which is engaged in a type or line of business in which the Employer or an
Affiliated Employer no longer wishes to engage, the Committee shall direct that the
Accounts of Restricted Employees shall be payable in one lump sum as soon as
administratively possible after the close of the transaction, provided that such
payments will not violate any provision of the Code.
	 
	 	(b)  	Other Participants
	 
	 	   	A participant, who is not a Restricted Employee, shall receive his benefits
in two payments from the Plan. The first payment, equal to 1/2 of the total
benefits, will be paid as soon as administratively possible following the
termination of employment by the Participant. The second payment, equal
to 1/2 of the total benefits, will be paid in the thirteenth month following the
Participant’s termination from employment.
	 
	 	(c)  	Exceptions
	 
	 	   	The Committee, in its sole discretion, may waive the rules in (a) and (b) in the
event of death or Disability of the Participant, or if the Participant, whether a
Restricted Employee or not, retires after attaining his Normal Retirement Date.
Notwithstanding the foregoing, if the benefit is $5000 or less, the Committee may

 

 

7-2

	 	   	make a single lump sum payment to the Participant as soon as administratively
feasible.

 

 

8-1

ARTICLE 8

FIDUCIARY RESPONSIBILITY

	8.1  	Named Fiduciary
	 
	   	The authority to control and manage the operation and administration of the Plan shall be
allocated between the Employer, the Affiliated Employer and the Committee, all of whom are
named fiduciaries under ERISA.
	 
	8.2  	Fiduciary Standards
	 
	   	Each fiduciary shall discharge its duties with respect to the Plan solely in the interest of
the Participants and Beneficiaries as follows:

	 	(1)  	For the exclusive purpose of providing benefits to Participants
and their Beneficiaries;
	 
	 	(2)  	With the care, skill, prudence and diligence under the
circumstances then prevailing that a prudent man acting in a like capacity and
familiar with such matters would use in the conduct of an enterprise of a like
character and with like aims;
	 
	 	(3)  	In accordance with the Plan document.

	8.3  	Fiduciaries Liable for Breach of Duty
	 
	   	A fiduciary shall be liable, as provided in ERISA, for any breach of his fiduciary
responsibilities. In addition, a fiduciary under this Plan shall be liable for a breach of
fiduciary responsibility of another fiduciary under this Plan as provided under ERISA
Section 405.
	 
	8.4  	Fiduciary May Employ Agents
	 
	   	Any person or group of persons may serve in more than one fiduciary capacity with regard to
the Plan. A fiduciary, with the consent of the Employer, may employ one or more persons to
render advice and assistance with regard to any function such fiduciary has under the Plan.
The expenses of such persons shall be paid by the Employer.
	 
	8.5  	Authority Outlined

	 	(a)  	Employer Authority
	 
	 	   	The Employer has the authority to amend and terminate the Plan, and to appoint and
remove members of the Committee.
	 
	 	(b)  	Committee Authority
	 
	 	   	The Committee has the authority to:

	 	(1)  	Maintain the records of Accounts of the Participants;
	 
	 	(2)  	Furnish and correct errors in statements of Accounts;
	 
	 	(3)  	Establish the standards for determining Disability under the
Plan;
	 
	 	(4)  	Construe the Plan document and questions thereunder; and
	 
	 	(5)  	Employ advisors and assistants.

 

 

8-2

	8.6  	Fiduciaries Not to Engage in Prohibited Transactions
	 
	   	A fiduciary shall not cause the Plan to engage in a transaction if he knows or should know
that such transaction constitutes a prohibited transaction under ERISA Section 406 or code
Section 4975, unless such transaction is exempted under ERISA Section 408 or Code Section
4975.

 

 

9-1

ARTICLE 9

ADMINISTRATIVE COMMITTEE

	9.1  	Appointment of Administrative Committee
	 
	   	The Compensation Committee of the Board of Directors of Employer shall appoint an
Administrative Committee to manage and administer this Plan in accordance with the
provisions hereof, each member to serve for such term as the Compensation Committee of the
Board of Directors of Employer may designate or until a successor member has been appointed
or until removed by the Compensation Committee of the Board of Directors of Employer.
Members shall serve without compensation for committee services. All reasonable expenses of
the Committee shall be paid by the Employer.
	 
	9.2  	Committee Operating Rules
	 
	   	The Committee shall act by agreement of a majority of its members, either by vote at a
meeting or in writing without a meeting. By such action, the Committee may authorize one or
more members to execute documents on its behalf. In the event of a deadlock or other
situation which prevents agreement of a majority of the Committee members, the matter shall
be decided by the Employer.
	 
	9.3  	Duties of Plan Administrator
	 
	   	The Committee is the Plan Administrator under ERISA and shall have the duty and authority to
comply with the reporting and disclosure requirements of ERISA which are specifically
required of the Plan Administrator.
	 
	9.4  	Duties of the Committee
	 
	   	The Committee shall keep on file a copy of this Plan, including any subsequent amendments
and the latest annual report required under Title I of ERISA for examination by Participants
during the business hours.
	 
	9.5  	Committee Powers
	 
	   	The Committee has the power and duty to do all things necessary or convenient to effect the
intent and purpose of this Plan, whether or not such powers and duties are specifically set
forth herein. Not in limitation but in amplification of the foregoing, the Committee shall
have the power to construe the Plan document and to determine all questions hereunder.
Decisions of the Committee made in good faith upon any matters within the scope or its
authority shall be final and binding on the Employer, the Affiliated Employers, the
Participants, their Beneficiaries and all others. The Committee shall at all times act in a
uniform and nondiscriminatory manner in making and carrying out its decisions, and may from
time to time prescribe and modify uniform rules of interpretation and administration.

 

 

9-2

	9.6  	Committee May Retain Advisors
	 
	   	With the approval of the Employer, the Committee may from time to time or on a continuing
basis, retain such agents and advisors including, specifically, attorneys, accountants,
actuaries, consultants and administrative assistants, as it considers necessary to assist it
in the proper performance of its duties. The expenses of such agents or advisors shall be
paid by the Employer.
	 
	9.7  	Claims Procedure

	 	(a)  	Claims Must Be Submitted Within 60 Days
	 
	 	   	The Committee shall determine Participants’ and Beneficiaries’ rights and benefits
under the Plan. In the event of a dispute over benefits, a Participant or
Beneficiary may file a written claim for benefits with the Committee, provided that
such claim is filed within 60 days of the date the Participant or Beneficiary
receives notification of the Committee’s determination.
	 
	 	(b)  	Requirements for Notice of Denial
	 
	 	   	If a claim is wholly or partially denied, the Committee shall provide the claimant,
setting forth:

	 	(i)  	The specific reason for the denial;
	 
	 	(ii)  	Specific references to the pertinent provisions on which the
denial is based;
	 
	 	(iii)  	A description of any additional material or information
necessary for the claimant to perfect the claim with an explanation of why such
material or information is necessary; and
	 
	 	(iv)  	Appropriate information as to the steps to be taken if the
claimant wishes to submit his or her claim for review.

	 	   	The notice of denial shall be given within a reasonable time period but not later
than 90 days of the date the claim is filed, unless special circumstances require an
extension of time for processing the claim. If such extension is required, written
notice shall be furnished to the claimant within 90 days of the date the claim was
filed stating the special circumstances requiring an extension of time and the date
by which a decision on the claim can be expected, which shall be no more than 180
days from the date the claim was filed. If no notice of denial is provided as
herein described, the claimant may appeal the claim as though the claim had been
denied.
	 
	 	(c)  	Claimant’s Rights if Claim Denied
	 
	 	   	The claimant and/or his representative may appeal the denied claim and may;

	 	(i)  	Request a review upon written request to the Committee;
	 
	 	(ii)  	Review pertinent documents; and
	 
	 	(iii)  	Submit issues and comments in writing; provided that such
appeal is made within 60 days of the date the claimant received notification of
the denied claim.

	 	(d)  	Time Limit on Review of Denied Claim
	 
	 	   	Upon receipt of a request for review, the committee shall provide written
notification of its decision to the claimant stating the specific reasons and
referencing specific Plan provisions on which its decision is based, within a
reasonable time period but not later than 60 days after receiving the request,

 

 

9-3

	 	   	unless special circumstances require an extension for processing the review. If
such an extension is required, the Committee shall notify the claimant of such
special circumstances and of the date, no later than 120 days after the original
date the review was requested, on which the Committee will notify the claimant of
its decision.
	 
	 	(e)  	No Legal Recourse Until Claims Procedure Exhausted.
	 
	 	   	In the event of any dispute over benefits under this Plan, all remedies available to
the disputing individual under this Article 9.7 must be exhausted before legal
recourse of any type is sought.

	9.8  	Committee Indemnification
	 
	   	To the fullest extent permitted by law, the Employer agrees to indemnify, to defend, and
hold harmless the members of the Committee, individually and collectively, against any
liability whatsoever for any (1) action taken or omitted by them in good faith in connection
with this Plan or their duties hereunder, and (2) expenses or losses for which they may
become liable as a result of any such actions or non-actions, unless resultant from their
own willful misconduct. The Employer may purchase insurance for the Committee to cover any
of their potential liabilities with regard to the Plan.

 

 

10-1

ARTICLE 10

AMENDMENT AND TERMINATION

	10.1  	Employer May Amend Plan
	 
	   	The Compensation Committee of the Board of Directors of Employer or to the extent provided
below, the Administrative Committee, may at any time modify or amend any or all of the
provisions of the Plan. The Administrative Committee may amend the Plan to bring the Plan
into compliance with applicable law or, to make such other changes as the Administrative
Committee deems desirable, provided that such changes do not materially increase the cost of
the Plan to Employer or take the Plan out of compliance with applicable law; and provided
further that the Committee may not admit new participants to the Plan or amend this Article
10.
	 
	10.2  	Employer May Terminate Plan
	 
	   	The Employer has established the Plan with the bona fide intention and expectation that the
Plan will continue indefinitely, but the Employer shall be under no obligation to maintain
the Plan for any given length of time and the Compensation Committee of the Board of
Directors of Employer may, in its sole discretion, terminate the Plan at any time without
any liability, except as to the payment of benefits earned under this Plan prior to the date
this Plan is terminated.exv10w13

 

EXHIBIT 10.13

INDEMNIFICATION AGREEMENT

     THIS AGREEMENT is made ___, 2005 between ABM INDUSTRIES INCORPORATED, a Delaware
corporation, (“Corporation”), and ___(“Director”).

RECITALS

	 	A.  	Director, a member of the Board of Directors of Corporation, performs
valuable services for Corporation.
	 
	 	B.  	The By-laws of Corporation (the “By-laws”) provide for the indemnification of
the directors, officers, agents and employees of Corporation under the authority of
Section 145 of the Delaware Corporations Code, as amended (the “Code”).
	 
	 	C.  	The By-laws and the Code are non-exclusive and permit contracts between
Corporation and directors with respect to indemnification.

NOW, THEREFORE, in consideration of Director’s continued service as a director, Corporation
and Director agree:

	 	1.  	Indemnity of Director. Corporation will hold harmless and indemnify
Director to the fullest extent authorized or permitted by the By-laws and by the Code,
as may be amended from time to time.
	 
	 	2.  	Additional Indemnity. Corporation will hold harmless and indemnify
Director against any and all expenses (including attorneys’ fees), judgments, fines
and amounts paid in settlement actually and reasonably incurred by Director in
connection with any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (including an action by or in
the right of Corporation) to which Director is, was or at any time becomes a party, or
is threatened to be made a party, by reason of the fact that Director is, was or at
any time becomes a director, officer, employee or agent of Corporation, or is or was
serving or at any time serves at the request of Corporation as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other
enterprise.
	 
	 	3.  	Specific Indemnity. Without limiting or affecting in any way the
generality of the indemnity provided in Sections 1 and 2 of this Agreement,
Corporation shall hold harmless and indemnify Director

 

 

	 	   	against any and all expenses (including attorneys’ fees), judgments, fines and
amounts paid in settlement; including but not limited to:

	 	(a)  	in excess of any insurance coverages;
	 
	 	(b)  	representing deductible amounts under insurance coverages;
	 
	 	(c)  	in any claim or claims brought by or on behalf of any firm,
corporation or individual that owns beneficially or directly, five per cent
(5%) or more of the common shares outstanding;
	 
	 	(d)  	in any claim or claims alleging libel or slander;
	 
	 	(e)  	in any claim or claims for the return by Director of any
remuneration paid to him/her without the previous approval of the stockholders
of the Corporation;
	 
	 	(f)  	in any claim or claims based upon or attributable to Director
having gained any personal profit or advantage to which he was not legally
entitled;
	 
	 	(g)  	in any action or suit by or in the right of the corporation.

	 	4.  	Limitations on Indemnity. However, notwithstanding the provisions of
Sections 1, 2 and 3 of this Agreement, no indemnity pursuant to this Agreement shall
be made by Corporation;

	 	(a)  	in respect of any amounts as to which Director shall have
been adjudged to be liable to the Corporation unless and only to the extent
that the Court of Chancery or the court in which such action or suit was
brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, Director is fairly
and reasonably entitled to indemnity for such amounts which the Court of
Chancery or such other court shall deem proper;
	 
	 	(b)  	on account of any suit in which judgment is rendered against
Director for an accounting of profits made from the purchase or sale by
Director of securities of Corporation pursuant to the provisions of Section
16(b) of the Securities Exchange Act of 1934 and amendments thereto or
dissimilar provisions of any federal or state or statutory law;
	 
	 	(c)  	if a final decision by a Court having jurisdiction in the
matter shall determine that indemnification is not lawful;

2

 

	 	(d)  	on account of any action, suit or proceeding commenced by the
Director in his individual right against Corporation or against any officer,
director or stockholder of Corporation unless authorized in the specific case
by a majority of disinterested members of the Board of Directors.

	 	5.  	Standard of Conduct. In meeting the applicable good faith standard
of conduct for indemnification, Director shall be entitled to rely on information,
opinions, reports or statements, including financial statements and other financial
data, in each case prepared to presented by any of the following:

	 	(a)  	Officers or employees of the Corporation.
	 
	 	(b)  	Counsel, independent accountants, investment bankers,
financial advisers, or other persons as to matters which Director believes to
be within such person’s professional or expert competence.
	 
	 	(c)  	A committee of the Board upon which Direct or does not serve,
as to matters within its designated authority, which committee the Director
believes merits confidence, so long as, in any such case, Director acts, after
reasonable inquiry when the need therefore is indicated by the circumstances
and acts without knowledge that would cause such reliance to be unwarranted.

	 	6.  	Contribution. If indemnification is not paid to Director, then in
respect of any threatened, pending or completed action, suit or proceeding in which
Corporation is jointly liable with Director (or would be if joined in such action,
suit or proceeding), Corporation shall contribute to the amount of expenses (including
attorneys’ fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred and paid or payable by Director in such proportion as is
appropriate to reflect (i) the relative benefits received by Corporation on the one
hand and Director on the other hand from the transaction from which such action, suit
or proceeding arose, and (ii) the relative fault of Corporation on the one hand and of
Director on the other in connection with the events which resulted in such expenses,
judgments, fines or settlement amounts, as well as any other relevant equitable
considerations. The relative fault of Corporation on the one hand and of Director on
the other shall be determined by reference to, among other things, the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent the circumstances resulting in such expenses, judgments, fines or settlement
amounts. Corporation agrees that it would not be just and equitable if contribution
pursuant to this Section 5 were determined by pro rata allocation or any other method
of allocation which does not take account of the foregoing equitable considerations.

3

 

	 	7.  	Continuation of Obligations. All agreements and obligations of
Corporation contained in this Agreement shall continue during the period Director is a
director, officer, employee or agent of Corporation (or is or was serving at the
request of Corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise) and
notwithstanding any change of control of Corporation, shall continue thereafter so
long as Director shall be subject to any possible claim, suit or proceeding, whether
civil, criminal or investigative. “Change of control” means (1) merger,
reorganization, or sale of assets of the Corporation, (2) a majority of the existing
members of the Board of Directors, shall resign, retire, die not be elected, or be
removed, or (3) a transfer of fifty per cent (50%) or more of the voting stock of the
Corporation.
	 
	 	8.  	Advancement of Expenses.

	 	(a)  	Promptly after notice of any claim, action, suit or
proceeding, Director will, if a claim for indemnity or advance of expenses is
to be made against Corporation, so notify the Corporation in writing. Failure
to notify Corporation will not relieve Corporation from its obligations to
indemnify Director under this Agreement, the By-laws or the Code.
	 
	 	(b)  	Corporation shall advance to Director, from time to time,
prior to any disposition of any threatened or pending action, suit or
proceeding, whether civil, criminal, administrative or investigative, any and
all reasonable expenses (including legal fees and expenses) incurred in
investigating or defending any such action, suit or proceeding within ten (10)
days after receiving copies of invoices presented to Director for such
expenses.
	 
	 	(c)  	Notwithstanding the foregoing, Corporation shall not advance
expenses to Director (i) in any action, suit or proceeding by Director as a
plaintiff in his individual right unless specifically approved by a majority
of disinterested members of the Board of Directors or (ii) in an action, suit
or proceeding brought by Corporation and approved by a majority of the Board
of Directors which alleges breach of the Director’s duty of loyalty to the
Corporation or its stockholders, (iii) acts or omissions not in good faith or
which involve intentional misconduct or a knowing violation of law, (iv) under
Section 174 of the Code or (v) any transaction from which the Director derived
an improper personal benefit.

4

 

	 	9.  	Undertaking. Director will reimburse Corporation for all expenses
paid by Corporation in defending any civil or criminal action, suit or proceeding
against Director in the event and only to the extent it shall ultimately be determined
that the Director is not entitled, under the provisions of the Code, the By-laws, this
Agreement or otherwise, to be indemnified by Corporation for such expenses.
	 
	 	10.  	Procedure.

	 	(a)  	Director shall request indemnification or contribution by a
written claim (“Claim”) delivered to the Corporation on the manner set forth
in Section 11 of this Agreement. The Claim shall set forth the circumstances
and state the amount which is requested. Within thirty (30) days of delivery
of the Claim, the Claim shall be paid unless, with respect to a claim for
indemnity, the Board of Directors shall determine by a majority vote of quorum
consisting of Directors who are not parties to the action, suit or proceeding,
or, if such a quorum is not obtainable, or, even if obtainable, a quorum of
disinterested Directors so direct y independent legal counsel in a written
opinion, that indemnification is not proper because, in respect of the matters
for which indemnification is requested, the Director did not act in good faith
and in a manner he/she reasonable believed to be in or not opposed to the best
interests of the Corporation and, in a criminal case, he/she did not have
reasonable cause to believe his/her conduct was unlawful.
	 
	 	(b)  	If a Claim for indemnity is not specifically disapproved in
writing within thirty (30) days of delivery of the Claim by the Director, then
the Claim shall be deemed to have been approved.
	 
	 	(c)  	If Director’s claim is not paid in full within thirty (30)
days after the Claim has been delivered to the Corporation, Director may at
any time thereafter bring suit against the Corporation in the Court of
Chancery of Delaware to recover the unpaid amount of the Claim and, if
successful in whole or in part, the Director shall also be entitled to be paid
the costs and expenses, including attorneys’ fees, of prosecuting the Claim.
	 
	 	(d)  	If Director’s Claim is not paid in full within thirty (30)
days after the Claim has been delivered to the Corporation, Director shall
receive interest on the unpaid amount claimed at twelve per cent (12%) per
year in the event it is ultimately determined that he/she is entitled to be
indemnified, or that the Corporation must contribute to a judgment.

5

 

	 	11.  	Notice. Any Claim, notice or other communication in connection with
indemnity of this Agreement shall be deemed to be delivered and received if in
writing, addressed as provided below, and if either (i) actually delivered personally,
or (ii) three (3) business days shall have elapsed after the same shall have been
deposited in the United States Mail, postage prepaid, and registered or certified,
return receipt requested:

	 	 	 
	To Corporation:

	 	ABM Industries Incorporated
	

	 	160 Pacific Avenue, Suite 222
	

	 	San Francisco, CA 94111
	

	 	Attention: General Counsel
	 
	 	 
	To Director:

	 	

	

	 	

	

	 	

	

	 	

     and in any case at such other address as the addressee shall have specified by written
notice. All periods of notice shall be measured from the date of delivery.

	 	12.  	Insurance. The Corporation agrees to maintain a policy or policies
of D & O liability insurance having at least $5,000,000 policy limits in which
Director is a named insured, and which covers liabilities whether or not Director may
be indemnified by the Corporation, provided, however, that the Board of Directors by
vote of a majority of the entire Board may determine in good faith that D & O
liability insurance is unavailable on commercially reasonable terms.
	 
	 	13.  	Enforcement. In the event Director is required to bring any action
to enforce rights or to collect monies due under this Agreement, and is successful in
such action, Corporation shall reimburse Director for all Director’s fees and
expenses, including attorneys’ fees, in bringing and pursuing such action.
	 
	 	14.  	Separability. Each of the provisions of this Agreement is a separate
and distinct agreement and independent of the others, so that if any provision hereof
shall be held to be invalid or unenforceable for any reason, such invalidity or
unenforceability shall not affect the validity or enforceability of the other
provisions hereof.
	 
	 	15.  	Savings Clause. If any term, clause, phrase, section or any position
of any section of this Agreement or of the By-laws shall be invalidated on any ground
by any court, then the Corporation shall nevertheless indemnify Director as to costs,
charges and expenses (including attorneys’ fees), judgments, fines and amounts paid in
settlement with respect to any

6

 

	 	   	action, suit or proceeding, whether civil, criminal, administrative or
investigative, including an action by or in the right of the Corporation, to the
full extent permitted by any applicable portion of this Agreement, by By-laws, or
the Code, that shall not have been invalidated.
	 
	 	16.  	Interpretation. If there shall be any inconsistency between this
Agreement and the B y-laws, or if there shall be any ambiquity in this Agreement or in
the By-laws, then the inconsistency or ambiguity shall be resolved in a manner which
will require the indemnity of Director to the fullest extent allowed by law.
	 
	 	17.  	Binding Effect. This Agreement shall be binding upon Director and
upon Corporation, its successors and assigns, and shall inure to the benefit of
Director, his/her heirs, personal representatives and assigns and to the benefit of
Corporation, its successors and assigns.
	 
	 	18.  	Amendment and Termination. No amendment, modification, termination
or cancellation of this Agreement shall be effective unless in writing signed by both
parties hereto.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the day
and year first above written.

	 	 	 
	 

	 	

	 
	 	 
	 

	 	

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