Document:

exv10w7

Exhibit 10.7

ABM DEFERRED COMPENSATION PLAN

FOR NON-EMPLOYEE DIRECTORS

(Amended and Restated, Effective December 13, 2010)

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	Article I. DEFINITIONS
	 	 	1	 
	1.01 “Account”
	 	 	1	 
	1.02 “Administrative Committee” or “Committee”
	 	 	1	 
	1.03 “Beneficiary”
	 	 	1	 
	1.04 “Board”
	 	 	1	 
	1.05 “Change in Control”
	 	 	1	 
	1.06 “Code”
	 	 	1	 
	1.07 “Company”
	 	 	1	 
	1.08 “Compensation”
	 	 	1	 
	1.09 “Deferral”
	 	 	1	 
	1.10 “Director”
	 	 	1	 
	1.11 “Employer”
	 	 	1	 
	1.12 “ERISA”
	 	 	1	 
	1.13 “Identification Date”
	 	 	1	 
	1.14 “Key Service Provider”
	 	 	1	 
	1.15 “Participant”
	 	 	2	 
	1.16 “Person”
	 	 	2	 
	1.17 “Plan”
	 	 	2	 
	1.18 “Plan Year”
	 	 	2	 
	1.19 “Restricted Stock Unit”
	 	 	2	 
	1.20 “Scheduled Distribution Date”
	 	 	2	 
	1.21 “Separation from Service”
	 	 	2	 
	1.22 “Valuation Date”
	 	 	2	 
	 
	 	 	 	 
	Article II. ELIGIBILITY FOR PARTICIPATION
	 	 	3	 
	2.01 Eligibility Requirements
	 	 	3	 
	2.02 Change in Status
	 	 	3	 
	2.03 Determination of Eligibility
	 	 	3	 
	 
	 	 	 	 
	Article III. CONTRIBUTIONS
	 	 	4	 
	3.01 Deferrals
	 	 	4	 
	3.02 Elective Deferral Election
	 	 	4	 
	3.03 Deferral of Distribution of Restricted Stock Unit Awards Granted in 2007
	 	 	5	 
	 
	 	 	 	 
	Article IV. ACCOUNTS, FUNDING AND VALUATION
	 	 	6	 
	4.01 Establishment of Account
	 	 	6	 
	4.02 Valuation of Account
	 	 	6	 
	 
	 	 	 	 
	Article V. PARTICIPANTS’ VESTED INTERESTS
	 	 	7	 
	5.01 Vesting
	 	 	7	 
	 
	 	 	 	 
	Article VI. DISTRIBUTION OF BENEFITS
	 	 	8	 
	6.01 Distribution of Benefits
	 	 	8	 
	6.02 Unforeseeable Emergency Withdrawals
	 	 	10	 

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	6.03 Prohibition on Acceleration
	 	 	11	 
	6.04 Distributions to Key Service Providers
	 	 	11	 
	 
	 	 	 	 
	Article VII. DEATH
	 	 	12	 
	7.01 Death
	 	 	12	 
	 
	 	 	 	 
	Article VIII. THE ADMINISTRATIVE COMMITTEE
	 	 	13	 
	8.01 Duties and Responsibility
	 	 	13	 
	8.02 Allocation and Delegation of Responsibilities
	 	 	13	 
	8.03 Expenses and Compensation
	 	 	13	 
	8.04 Information from Company
	 	 	14	 
	8.05 Administrative Committee; Signature
	 	 	14	 
	 
	 	 	 	 
	Article IX. PARTICIPANTS’ RIGHTS
	 	 	15	 
	9.01 Disclosures
	 	 	15	 
	9.02 Filing a Claim for Benefits
	 	 	15	 
	9.03 Denial of a Claim
	 	 	15	 
	9.04 Limitation of Rights
	 	 	16	 
	 
	 	 	 	 
	Article X. AMENDMENT AND TERMINATION
	 	 	17	 
	10.01 Amendment or Termination
	 	 	17	 
	 
	 	 	 	 
	Article XI. MISCELLANEOUS
	 	 	18	 
	11.01 Execution of Receipts and Releases
	 	 	18	 
	11.02 Notice and Unclaimed Benefits
	 	 	18	 
	11.03 Non-Alienation of Benefits
	 	 	18	 
	11.04 Loans to Participants
	 	 	19	 
	11.05 Benefits Payable to Incompetents
	 	 	19	 
	11.06 Applicable Law
	 	 	19	 
	11.07 Headings as Guide
	 	 	19	 
	11.08 Pronouns
	 	 	19	 
	11.09 Reference to Laws
	 	 	19	 
	11.10 Participant’s Rights Unsecured
	 	 	19	 

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Article I.

DEFINITIONS

The following terms as used herein shall have the meaning hereinafter set forth unless the context
clearly indicates a different meaning is required. Whenever in these definitions a word or phrase
not previously defined is used, such word or phrase shall have the meaning thereafter given to it
in Article I unless otherwise specified.

	1.01	 	“Account” means the account established and maintained by the Administrative
Committee for each Participant.
	 
	1.02	 	“Administrative Committee” or “Committee” means the Governance Committee of
the Board of Directors of the Company.
	 
	1.03	 	“Beneficiary” means the Person last designated by a Participant on a form provided
by the Administrative Committee or by the terms of the Plan to receive any amounts payable
under the Plan following the death of the Participant. A Participant may change the
Beneficiary from time to time on a form provided by the Administrative Committee.
	 
	1.04	 	“Board” means the Board of Directors of the Company.
	 
	1.05	 	“Change in Control” shall have the meaning given that term in Section 5.01.
	 
	1.06	 	“Code” means the Internal Revenue Code of 1986, as amended from time to time.
	 
	1.07	 	“Company” means ABM Industries Incorporated.
	 
	1.08	 	“Compensation” means all of the annual retainer and board meeting fees paid by the
Company to the eligible Director while a Participant with respect to services rendered during
the Plan Year.
	 
	1.09	 	“Deferral” means an amount that a Participant has elected to defer under Article
III.
	 
	1.10	 	“Director” means any individual who is a member of the Board and who is not an
employee of the Company.
	 
	1.11	 	“Employer” means the Company, its subsidiaries (within the meaning of sections
414(b) and (c) of the Code), and its successors or assigns.
	 
	1.12	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time.
	 
	1.13	 	“Identification Date” means each December 31.
	 
	1.14	 	“Key Service Provider” means a Participant who, on an Identification Date, is:

	 	(a)	 	A 5% owner of the Employer; or

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	 	(b)	 	A 1% owner of the Employer having annual compensation from the Company of more
than $150,000.

	 	 	If a Participant is identified as a Key Service Provider on an Identification Date, then
such Participant shall be considered a Key Service Provider for purposes of the Plan during
the period beginning on the first April 1 following the Identification Date and ending on
the next March 31.
	 
	1.15	 	“Participant” means any Director or former Director who has satisfied the
eligibility requirements of Section 2.01 who is, or may become, eligible to receive a benefit
or whose Beneficiary may be eligible to receive a benefit under the Plan.
	 
	1.16	 	“Person” means any individual, partnership, joint venture, corporation, mutual
company, joint stock company, trust, estate, unincorporated organization, association, or
employee organization, and shall, where appropriate, include two or more of the above.
	 
	1.17	 	“Plan” means this ABM Deferred Compensation Plan for Non-Employee Directors, as
amended and restated, effective December 13, 2010.
	 
	1.18	 	“Plan Year” means the 12-month period commencing January 1 and ending on the
following December 31.
	 
	1.19	 	“Restricted Stock Unit” means a restricted stock unit award granted by the Company
to a Participant.
	 
	1.20	 	“Scheduled Withdrawal Date” means the month and year that the Participant elects;
provided, however, that a Scheduled Withdrawal Date must be no less than three years after the
Plan Year to which the election is made.
	 
	1.21	 	“Separation from Service” means termination of service as a Director, other than by
reason of death. A Participant shall not be deemed to have experienced a Separation from
Service if the Participant continues to provide services to the Employer at an annual rate
that is 50% or more of the services rendered, on average, during the immediately preceding
three full years of service as a Director with the Employer (or if providing services to the
Employer less than three years, such lesser period); provided, however, that a Separation from
Service will be deemed to have occurred if a Participant’s service with the Employer is
reduced to an annual rate that is less than 20% of the services rendered, on average, during
the immediately preceding three full years of service as a Director with the Employer (or if
providing services to the Employer less than three years, such lesser period).
	 
	1.22	 	“Valuation Date” means March 31, June 30, September 30 and December 31 of each Plan
Year.

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Article II.

ELIGIBILITY FOR PARTICIPATION 

	2.01	 	Eligibility Requirements
	 
	 	 	Each Director of the Company shall become a Participant under the Plan on the date he or she
makes an election to defer Compensation or shares subject to Restricted Stock Unit awards
(including dividend equivalents credited to such shares) under the Plan.
	 
	2.02	 	Change in Status
	 
	 	 	A Participant’s participation in the Plan shall terminate immediately as of the date on
which he or she Separates from Services as a Director, except that the Participant shall
retain the right to receive his or her Account in accordance with the terms and conditions
of the Plan.
	 
	2.03	 	Determination of Eligibility
	 
	 	 	The Administrative Committee shall determine whether each Director has satisfied the
eligibility requirements for participation in the Plan. The Committee’s determination shall
be conclusive and binding upon all Persons.

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Article III.

CONTRIBUTIONS 

	3.01	 	Deferrals

	 	(a)	 	For each Plan Year commencing with 2007, a Participant may elect to defer
receipt of all or any portion of his or her Compensation that he or she would otherwise
receive from the Company. In addition, in October 2006 each eligible Director who is a
party to a Director Retirement Plan benefit agreement may elect to have such benefit
converted to a credit to the Account established pursuant to this Plan, effective
November 1, 2006.
	 
	 	(b)	 	Each Participant who receives a Restricted Stock Unit award in a Plan Year may
elect to defer all or any percentage of any shares he or she may be entitled to receive
(including dividend equivalents credited to such shares) upon the lapse of any
restrictions or vesting period to which the Restricted Stock Unit award is subject.
This election shall be made by giving notice in a manner and within the time prescribed
by the Administrator and in compliance with section 409A of the Code.
	 
	 	(c)	 	The amount of the Deferral must equal a whole percentage. The elections
described in this Article III shall specify the form and time of distribution of
benefits as described in Article VI.

	3.02	 	Elective Deferral Election
	 
	 	 	Upon becoming eligible to participate in the Plan, a newly eligible Director may make an
election described in Section 3.01 by filing an election form with the Administrative
Committee within 30 days (or earlier, as the form may provide) following the date the
Director becomes eligible to participate in the Plan (i.e., the later of the date of the
eligible Director’s election to the Board or October 31, 2006). Such election form shall be
irrevocable on the 31st day following the date the Director becomes eligible to
participate in the Plan unless the Company provides an earlier date. For each Plan Year
following the year in which a Participant becomes eligible to participate in the Plan, a
Participant may make an election described in Section 3.01 by filing an election form with
the Administrative Committee within a reasonable period of time, as specified by the
Committee, before the beginning of the Plan Year to which the Deferral election applies.
Except as provided in this Plan, a Deferral election shall be irrevocable on the December 31
preceding the Plan Year to which the Deferral election applies, or at such earlier time as
the Committee prescribes. A Deferral election may not be changed or revoked during the Plan
Year that it is effective; provided, that upon a showing of an unforeseeable emergency and
with the consent of the Administrative Committee, a Participant may at any time revoke his
or her Deferral election with respect to Compensation he or she has not yet earned and
shares subject to a Restricted Stock Unit award in which he or she has not yet become vested
during the Plan Year. A Participant who revokes his or her Deferral election may not again
make an election to defer the receipt of Compensation or shares subject to a Restricted
Stock Unit award (including

4

 

	 	 	dividend equivalents credited to such shares) effective before the beginning of the next
Plan Year. Notwithstanding anything in this Plan to the contrary, a Participant may make an
election in 2008 to defer shares subject to a Restricted Stock Unit award granted in 2008
(including dividend equivalents credited to such shares); provided that such election be
made no later than the date immediately prior to the date of grant of such award. Unless
otherwise provided, an election must be made each year in order to participate in this Plan.
	 
	3.03	 	Deferral of Distribution of Restricted Stock Unit Awards Granted in 2007
	 
	 	 	Notwithstanding anything in this Plan to the contrary, for the purposes of Restricted Stock
Unit awards granted in 2007, a Participant may defer the time of distribution of any
unvested portion of such Restricted Stock Unit awards (including dividend equivalents
credited to such shares); provided that (1) such deferral shall not become effective for 12
months and (2) the date of payment is at least five years subsequent to the originally
scheduled payment date, and (3) the form is accepted by the Committee, in its sole and
absolute discretion. The election may be modified or revoked until 12 months prior to the
originally scheduled vesting date, or such earlier time that the Committee determines in its
discretion, at which time such change shall become irrevocable. The last valid form
accepted by the Committee shall govern the payout of a Participant’s deferred shares subject
to Restricted Stock Unit awards granted in 2007 (including dividend equivalents credited to
such shares), as applicable.

5

 

Article IV.

ACCOUNTS, FUNDING AND VALUATION

	4.01	 	Establishment of Account
	 
	 	 	The Administrative Committee shall open and maintain a separate Account for each
Participant. Such Account shall be credited with all Deferrals for the Participant. In
addition, the Account of each eligible Director who has elected to convert his or her
Director Retirement Plan benefits to an Account credit under this Plan shall be credited on
November 1, 2006, with the amount approved by the Governance Committee pursuant to its
resolution adopted on September 5, 2006. As soon as reasonably possible after each
Valuation Date, each Participant shall be notified of the value of his or her Account.
	 
	4.02	 	Valuation of Account

	 	(a)	 	Interest shall be credited to each Participant’s Account as of each Valuation
Date equal to the product of

	 	(1)	 	the amount credited to the Participant’s Account as of the last
preceding Valuation Date, less any distributions or withdrawals and plus
one-half of Deferrals, if any, since the last preceding Valuation Date,
multiplied by
	 
	 	(2)	 	the applicable interest rate; provided, however, that for the
December 31, 2006 Valuation Date, interest shall be based on the Account
balance on November 1, 2006, if any.

	 	(b)	 	On each Valuation Date, each Participant’s Account will be credited with
interest. The amount of interest will be derived from the prime interest rate
published in The Wall Street Journal on the last business day coinciding with or next
preceding the Valuation Date. Any prime rate up to 6% will be considered in full, and
one-half of any prime rate over 6% will be considered; provided, however, after October
1, 2007, the interest rate will not exceed 120% of the long-term applicable federal
rate (compounded quarterly), as published by the Internal Revenue Service for the
applicable Plan Year. The amount credited will be a proration of the interest rate
applied taking into consideration the period of time elapsed since the last Valuation
Date (or since November 1, 2006, in the case of the December 31, 2006 Valuation Date).

	 	 	For example, if the Plan is valued quarterly and on March 31, the prime rate is 7%, the rate
credited will be (1/4 x 6%) + (1/4 x 1/2 x 1%) or 1.625%.

6

 

Article V.

PARTICIPANTS’ VESTED INTERESTS 

	5.01	 	Vesting
	 
	 	 	Each Participant shall always be 100% vested in his or her Account; provided, however, that
any amount credited to a Participant’s Account on November 1, 2006 pursuant to the election
described in Section 3.01 shall be forfeited if the Participant voluntarily resigns his or
her position as a Director before November 1, 2007 for any reason other than disability, as
determined pursuant to section 409A(a)(2)(C) of the Code, or in connection with a Change in
Control. A “Change in Control” shall be deemed to have occurred upon a change in the
ownership or effective control of the Company or a change in the ownership of a substantial
portion of the assets of the Company as defined in the regulations promulgated under section
409A of the Code. Notwithstanding anything to the contrary in this Article V, the vesting
of shares subject to a Restricted Stock Unit award granted to a Participant shall always be
subject to the vesting schedule as set forth in the Restricted Stock Unit award’s applicable
plan or agreement.

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Article VI.

DISTRIBUTION OF BENEFITS

	6.01	 	Distribution of Benefits
	 
	 	 	Except as otherwise provided in Article VI of the Plan, a Participant’s Account may not be
distributed to a Participant or his or her Beneficiary before the dates chosen pursuant to
the election made by the Participant.

	 	(a)	 	Form of Distribution. A Participant will elect, in writing, on a form
prescribed by the Administrative Committee, which of the distribution options described
below will govern the payment of the Participant’s Account upon a Separation from
Service. The Participant’s Account will be distributed to him (subject to the timing
requirements outlined in paragraphs (b) and (c) below) on either of the following
schedules:

	 	(1)	 	A single lump sum,
	 
	 	(2)	 	Four annual installments, or
	 
	 	(3)	 	Substantially equal annual installments over a 10-year period.

	 	 	 	If the Participant made no election at the time specified in Section 3.02, his or
her benefit shall be paid as a single lump sum upon a Separation from Service. For
purposes of this Plan, installment payments shall be treated as a single
distribution under section 409A of the Code.
	 
	 	(b)	 	Time of Distribution

	 	(1)	 	Separation from Service. If a Participant Separates
from Service, his or her Account shall be distributed in the form elected by
the Participant pursuant to paragraph (a) above. Subject to the timing
requirements of paragraph (c), the vested portion of a Participant’s Account
shall be distributed, or distribution shall commence, within 90 days following
his or her Separation from Service as a Director. The amount in the
Participant’s Account shall be determined as of the Valuation Date that last
precedes the date of distribution, plus Deferrals and less any withdrawals or
distributions, if any, for the period from the last preceding Valuation Date to
the date of distribution.
	 
	 	 	 	Notwithstanding anything in this Article VI to the contrary, if a
Participant elects to defer the receipt of shares subject to Restricted
Stock Unit awards granted in 2007, then such shares (including dividend
equivalents credited to such shares) shall be distributed in the year in
which the Participant elects; provided that such distribution shall not
occur at any time prior to the five-year anniversary of the originally
scheduled payment date of such shares; provided further that if the
Participant experiences a Separation

8

 

	 	 	 	from Service as a Director at any time prior to such elected distribution
date, the vested portion of any shares subject to such Restricted Stock Unit
awards granted in 2007 (and associated dividend equivalents) shall be
distributed in a lump sum within 90 days following his or her Separation
from Service as a Director.

	 	(2)	 	Scheduled Withdrawal Date. A Participant may elect to
have all or a portion of his or her Account distributed to him or her on up to
three Scheduled Withdrawal Dates, while such Participant is a Director.
	 
	 	 	 	Subject to the timing requirements outlined in paragraphs (c) below, a
Participant shall receive his or her distribution under this subparagraph
(2) as soon as administratively feasible after the Scheduled Withdrawal
Date. If a Participant elects a Scheduled Withdrawal Date, his or her
Account valued as of the last Valuation Date preceding the elected Scheduled
Withdrawal Date shall be distributed as elected in this subparagraph (2).
Any subsequent Deferrals, including interest or earnings credited thereon,
shall be distributed pursuant to subparagraph (1) above.
	 
	 	 	 	Notwithstanding an election pursuant to this subparagraph (2), if a
Participant Separates from Service prior to the Scheduled Withdrawal Date,
the Participant’s Account shall be distributed pursuant to his or her
election under subparagraph (1) above.

	 	 	 	Notwithstanding the foregoing, upon a distribution of a Participant’s Account in
subparagraphs (1) and (2) above, the Company shall credit to a Participant’s Account
interest on the amount that is the difference of the value of the Participant’s
Account as of the last Valuation Date preceding the scheduled distribution date.
Interest shall be calculated using the principles set forth in Section 4.02.

	 	(c)	 	Changes to Distribution Elections
	 
	 	 	 	A Participant may change his or her form of distribution of his or her Account upon
a Separation from Service or Scheduled Withdrawal Date by submitting a form, as the
Committee prescribes; provided that (1) any such change is not effective for 12
months and (2) the date of payment is at least five years subsequent to the
originally scheduled date of payment, and (3) the form is accepted by the Committee,
in its sole and absolute discretion. The change may be modified or revoked until 12
months prior to the time a Participant is originally scheduled to receive a payment,
at which time such change shall become irrevocable. The last valid form accepted by
the Committee shall govern the payout of a Participant’s Account, as applicable.
	 
	 	 	 	Distributions made pursuant to this paragraph (c) will be made as soon as
administratively practicable, but no later than 90 days, after the newly scheduled
date of distribution.

9

 

	6.02	 	Unforeseeable Emergency Withdrawals

	 	(a)	 	A Participant may withdraw up to 100% of the amount in his or her Account in
the event of an unforeseeable emergency to the extent provided in this Section 6.02.
	 
	 	(b)	 	For purposes of this Section 6.02, unforeseeable emergency means a severe
financial hardship to the Participant resulting from a sudden and unexpected illness or
accident of the Participant or a dependent (as defined in section 152(a) of the Code)
of the Participant, loss of the Participant’s property due to casualty, or other
similar extraordinary and unforeseeable circumstances arising as a result of events
beyond the Participant’s control.
	 
	 	(c)	 	The withdrawal under this Section 6.02 may not exceed the amount reasonably
necessary to satisfy the financial need (including the amount of any federal, state or
local income taxes or penalties reasonably anticipated to result from the withdrawal).
The withdrawal may not be made to the extent the need may be satisfied (1) through
reimbursement or compensation by insurance or otherwise, (2) by liquidation of the
Participant’s assets, to the extent the liquidation of the assets would not itself
cause severe financial hardship, or (3) by ceasing Deferrals under the Plan.
	 
	 	(d)	 	A Participant who wishes to withdraw any amount pursuant to this Section 6.02
must submit, on a form provided by the Administrative Committee, a written request by
the Participant that states:

	 	(1)	 	The unforeseeable emergency for which the withdrawal is
requested;
	 
	 	(2)	 	The amount needed to satisfy the financial need, which amount
may include any federal, state, or local income taxes or penalties reasonably
anticipated to result from the withdrawal;
	 
	 	(3)	 	A representation that the need cannot be satisfied in any of
the ways stated in the second sentence of paragraph (c);
	 
	 	(4)	 	The date the funds are required; and
	 
	 	(5)	 	Any other information the Administrative Committee deems
necessary.

	 	(e)	 	The Administrative Committee will determine if an unforeseeable emergency
withdrawal will be allowed by applying the standards set forth in paragraphs (b) and
(c).
	 
	 	(f)	 	A withdrawal from a Participant’s Account under Section 6.02 shall be paid in a
lump sum.

10

 

	6.03	 	Prohibition on Acceleration
	 
	 	 	Notwithstanding any other provision of the Plan to the contrary, no distribution will be
made from the Plan that would constitute an impermissible acceleration of payment as defined
in section 409A(a)(3) of the Code and the regulations promulgated thereunder.
	 
	6.04	 	Distributions to Key Service Providers
	 
	 	 	Notwithstanding any other provision of the Plan to the contrary, distributions to a Key
Service Provider may not be made before the date that is six months after the date of his or
her Separation from Service.

11

 

Article VII.

DEATH 

	7.01	 	Death
	 
	 	 	If a Participant dies before distribution of his or her Account has begun or been completed,
the remaining portion of the Participant’s Account shall be payable in a single lump sum to
the Participant’s Beneficiary no later than 90 days after the date of the Participant’s
death. The value of the Participant’s Account shall be determined in accordance with the
rules set forth in Section 4.02.

12

 

Article VIII.

THE ADMINISTRATIVE COMMITTEE 

	8.01	 	Duties and Responsibility
	 
	 	 	The Administrative Committee may engage agents to assist in carrying out the Administrative
Committee’s functions hereunder. The Committee shall administer the Plan and shall have
full discretionary authority to construe this Plan and to determine all questions of
interpretation or policy in a manner not inconsistent with the Plan and the Administrative
Committee’s construction or determination in good faith shall be final and conclusive and
binding on all parties including but not limited to the Company and any Participant or
Beneficiary, except as otherwise provided by law. The Administrative Committee may correct
any defect, supply any omission, or reconcile any inconsistency in such manner and to such
extent as shall be deemed necessary or advisable to carry out the purpose of the Plan,
provided, however, that any interpretation or construction shall be done in a
nondiscriminatory manner and shall be consistent with the intent that the Plan shall be an
unfunded plan. The Administrative Committee shall have all powers necessary or appropriate
to accomplish its duties under this Plan.
	 
	 	 	The Administrative Committee shall be charged with the duties of the general administration
of the Plan, including but not limited to, the following:

	 	(a)	 	To determine all questions relating to the eligibility of Directors to
participate in or remain a Participant hereunder;
	 
	 	(b)	 	To maintain all the necessary records for the administration of the Plan;
	 
	 	(c)	 	To interpret the provisions of the Plan and to make and publish such rules for
regulation of the Plan as are not inconsistent with the terms hereof;
	 
	 	(d)	 	To make any adjustments in the allocations, to Accounts under the Plan
necessary to comply with any provision of law; and
	 
	 	(e)	 	To advise, counsel and assist any Participant regarding any rights, benefits or
elections available under the Plan.

	 	 	The Administrative Committee shall also be responsible for preparing and filing such annual
disclosure reports as may be required by law.
	 
	 	 	Whenever it is determined by the Administrative Committee to be in the best interest of the
Plan and its Participants and Beneficiaries, the Administrative Committee may request such
variances, deferrals, extensions, or exemptions or make such elections for the Plan as may
be available under the law.
	 
	8.02	 	Expenses and Compensation
	 
	 	 	The expenses necessary to administer the Plan and the expenses incurred by the
Administrative Committee shall be paid by the Company.

13

 

	8.03	 	Information from Company
	 
	 	 	The Company shall supply full and timely information to the Administrative Committee on all
matters relating to the Compensation of all Participants, their continuous regular service
to the Company, their retirement, death, disability or Separation from Service, and such
other pertinent facts as the Administrative Committee may require.
	 
	8.04	 	Administrative Committee; Signature
	 
	 	 	The Committee shall act by agreement of a majority of its members, either by vote at a
meeting or in writing without a meeting. The signature of one member of the Administrative
Committee may be accepted by any interested party as conclusive evidence that the
Administrative Committee has duly authorized the action therein set forth. No Person
receiving documents or written instructions and acting in good faith and in reliance thereon
shall be obliged to ascertain the validity of such action under the terms of this Agreement.

14

 

Article IX.

PARTICIPANTS’ RIGHTS 

	9.01	 	Disclosures
	 
	 	 	The Administrative Committee shall furnish at least every six months each Participant or
Beneficiary with a written statement, based on the latest available information, indicating
the value of his or her Account.
	 
	 	 	Upon a Separation from Service, a Participant is entitled to a written explanation of and
accounting for his or her Account and of any applicable options regarding the disposition of
such Account.
	 
	9.02	 	Filing a Claim for Benefits
	 
	 	 	A Participant or Beneficiary or the Company acting on his or her behalf shall notify the
Administrative Committee of a claim for benefits under the Plan. Such request may be in any
form acceptable to the Administrative Committee and shall set forth the basis of such claim
and shall authorize the Administrative Committee to conduct such examinations as may be
necessary to determine the validity of the claim and to take such steps as may be necessary
to facilitate the payment of any benefits to which the Participant or Beneficiary may be
entitled under the terms of the Plan. The Administrative Committee shall review the claim
and may require additional information if necessary to process the claim. The
Administrative Committee shall issue its decision, in writing, no later than 90 days after
the date the claim is received, unless circumstances require an extension of time. If such
an extension is required, written notice of the extension shall be furnished to the Person
making the claim within the initial 90-day period, and the notice shall state the
circumstances requiring the extension and the date by which the Administrative Committee
expects to reach a decision on the claim. In no event shall the extension exceed a period
of 90 days from the end of the initial period.
	 
	9.03	 	Denial of a Claim
	 
	 	 	Whenever a claim for benefits by any Participant or Beneficiary has been denied, in whole or
in part, a written notice of the denial will be provided to the Participant or Beneficiary
within the period specified in Section 9.02. The notice shall set forth, in a manner
calculated to be understood by the claimant, (i) the specific reason or reasons for the
denial; (ii) reference to the specific Plan provisions upon which the denial is based; (iii)
a description of any additional material or information necessary for the claimant to
perfect the claim and an explanation of why such information is necessary; and (iv) an
explanation of the Plan’s appeal procedures and the time limits applicable to such
procedures, including a statement of the claimant’s right to bring a civil action under
section 502(a) of ERISA following an adverse benefit determination on review.

15

 

	9.04	 	Limitation of Rights
	 
	 	 	Participation hereunder shall not grant any Participant the right to be retained as a member
of the Board of Directors of the Company or any rights or interest other than those
specifically herein set forth.

16

 

Article X.

AMENDMENT AND TERMINATION 

	10.01	 	Amendment
	 
	 	 	The Board may at any time and from time to time amend this Plan in whole or in part
(including retroactively). The Board shall promptly deliver to the Administrative Committee
a written copy of the document amending the Plan. The Board shall not have the right to
amend the Plan retroactively in such a manner as to deprive any Participant or Beneficiary
of any benefit to which he or she was entitled under the Plan by reason of Deferrals
credited prior to the amendment.
	 
	 	 	The Committee may amend the Plan to bring the Plan into compliance with applicable law
(including changes required in order to avoid penalty taxes applied to Participants under
section 409A of the Code) or to make such other changes as the Committee deems desirable;
provided that such changes do not materially increase the cost of the Plan to the Company or
take the Plan out of compliance with applicable law, and provided further that the Committee
may not amend this Article X.
	 
	10.02	 	Termination of the Plan
	 
	 	 	The Board may terminate the Plan at any time and in the Board’s discretion the Accounts of
Participants may be distributed within the period beginning 12 months after the date the
Plan was terminated and ending 24 months after the date the Plan was terminated. If the
Plan is terminated and Accounts are distributed, the Company shall terminate all account
balance non-qualified deferred compensation plans with respect to all Participants and shall
not adopt a new account balance non-qualified deferred compensation plan for at least three
years after the date the Plan was terminated.
	 
	10.03	 	Termination upon a Change in Control
	 
	 	 	The Board, in its discretion may terminate the Plan 30 days prior to, or 12 months
following, a Change in Control and distribute the Accounts of the Participants within the
12-month period following the termination of the Plan. If the Plan is terminated and
Accounts are distributed, the Company shall terminate all substantially similar
non-qualified deferred compensation plans sponsored by the Company and all of the benefits
of the terminated plans shall be distributed within 12 months following the termination of
the plans.
	 
	10.04	 	Termination upon Dissolution or Bankruptcy
	 
	 	 	The Board, in its discretion, may terminate the Plan upon a corporate dissolution of the
Company that is taxed under section 331 of the Code or with the approval of a bankruptcy
court pursuant to 11 U.S.C. section 503(b)(1)(A), provided that the Participants’ Accounts
are distributed and included in the gross income of the Participants by the latest of (i)
the calendar year in which the Plan terminates or (ii) the first calendar year in which
payment of the Accounts is administratively practicable.

17

 

Article XI.

MISCELLANEOUS

	11.01	 	Execution of Receipts and Releases
	 
	 	 	Any payment to any Participant or Beneficiary, in accordance with the provisions of this
Plan, shall, to the extent thereof, be in full satisfaction of all claims hereunder against
the Plan, and the Administrative Committee may require such Participant or Beneficiary, as a
condition precedent to such payment, to execute a receipt and release therefor in such form
as the Administrative Committee shall determine.
	 
	11.02	 	Notice and Unclaimed Benefits
	 
	 	 	Each Participant and Beneficiary must file with the Company from time to time in writing his
or her post office address and each change of post office address. Any communication,
statement, or notice addressed to a Participant or Beneficiary at his or her last post
office address filed with the Company (or if no address was filed with the Company, then at
his or her last post office address shown on his or her “Company Records”) will be binding
on the Participant and his or her Beneficiary for all purposes of the Plan. Neither the
Company, Administrative Committee, nor any insurance company providing annuity contracts
under the Plan shall be obliged to search for or ascertain the whereabouts of any
Participant or Beneficiary. For the purpose of this Section 11.02, “Company Records” means
the records maintained by an Company. Such records shall be conclusive, unless shown to the
Company’s satisfaction to be incorrect.
	 
	 	 	The Committee shall notify any Participant or Beneficiary when a distribution is required
under the Plan. The Committee may also request the Social Security Administration to notify
the Participant or Beneficiary in accordance with any procedures the Administration has
established for this purpose. In the event that the Participant or Beneficiary shall fail
to respond to any notice from the Committee, the amount in his or her Account shall be
forfeited.
	 
	11.03	 	Non-Alienation of Benefits
	 
	 	 	Except in the case of a qualified domestic relations order, as defined in section 414(p) of
the Code:

	 	(a)	 	No Participant or Beneficiary, and no creditor of a Participant or Beneficiary
shall have any right to assign, pledge, sell, hypothecate, anticipate or in any way
create a lien upon his or her benefits under the Plan by operation of law or otherwise,
and any attempt to do so shall be void; nor shall any such benefits in any manner be
liable for or subject to the debts, contracts, liabilities, engagements or torts of the
Person entitled to such benefits.
	 
	 	(b)	 	No interest in the Plan shall be subject to assignment or transfer or otherwise
be alienable, either by voluntary or involuntary act or by operation of law or equity,
or subject to attachment, execution, garnishment, sequestration, levy or other

18

 

	 	 	 	seizure under any legal, equitable or other process, or be liable in any way for the
debts or defaults of Participants and Beneficiaries.

	11.04	 	Loans to Participants
	 
	 	 	A Participant may not receive a loan from the Plan of any portion of his or her Account.
	 
	11.05	 	Benefits Payable to Incompetents
	 
	 	 	Each individual receiving benefit payments under the Plan shall be conclusively presumed to
have been legally competent until the date upon which the Administrative Committee shall
have received written notice in the form and manner acceptable to it that such individual is
an incompetent for whom a guardian or other Person legally vested with his or her care shall
have been appointed. From and after the date of receipt of such notice by Administrative
Committee, all future benefit payments to which such individual is entitled under the Plan
shall be payable to his or her guardian or other Person legally vested with his or her care,
until such time as the Administrative, Committee shall be furnished with evidence
satisfactory to it that such individual is legally competent.
	 
	11.06	 	Applicable Law
	 
	 	 	This Plan shall be governed and construed under Federal laws and the laws of the State of
New York.
	 
	11.07	 	Headings as Guide
	 
	 	 	The headings of this Plan are inserted for convenience of reference only and are not to be
considered in construction of the provisions hereof.
	 
	11.08	 	Pronouns
	 
	 	 	When necessary to the meaning hereof, either the masculine or the neuter pronoun shall be
deemed to include the masculine, the feminine, and the neuter, and the singular shall be
deemed to include the plural.
	 
	11.09	 	Reference to Laws
	 
	 	 	Any reference to any section or regulation under the Code or ERISA or to any other statute
or law shall be deemed to include any successor law of similar import.
	 
	11.10	 	Agent Designated for Service of Process
	 
	 	 	The designated person upon whom service of process may be made in any action involving the
Plan shall be any current member of the Administrative Committee.
	 
	11.11	 	Participant’s Rights Unsecured
	 
	 	 	The right of the Participant or his or her designated Beneficiary to receive a distribution
hereunder shall be an unsecured claim against the general assets of the Company, and

19

 

	 	 	neither the Participant nor his or her designated Beneficiary shall have any rights in or
against any amount credited to his or her Account or any other specific assets of the
Company. All amounts credited to an Account shall constitute general assets of the Company
and may be disposed of by the Company at such time and for such purposes as it may deem
appropriate. An Account may not be encumbered or assigned by a Participant or any
Beneficiary, as provided in Section 11.03.

Executed at this 13th day of December, 2010 to be effective December 13, 2010.

ABM INDUSTRIES INCORPORATED

20exv10w13

Exhibit 10.13

ABM INDUSTRIES INCORPORATED

STATEMENT OF TERMS AND CONDITIONS APPLICABLE

TO RESTRICTED STOCK UNITS

GRANTED PURSUANT TO

THE 2006 EQUITY INCENTIVE PLAN

TO DIRECTORS WHO ELECT TO RELINQUISH THEIR

RETIREMENT BENEFITS EFFECTIVE NOVEMBER 1, 2006

(As Amended and Restated September 8, 2010)

I. INTRODUCTION

The following terms and conditions shall apply to each Restricted Stock Unit Award granted under
the Plan to a Director who elects, prior to November 1, 2006, to relinquish his retirement
benefits. This Statement of Terms and Conditions is subject to the terms of the Plan and of any
Award made pursuant to the Plan. In the event of any inconsistency between this Statement of Terms
and Conditions and the Plan, the Plan shall govern.

II. DEFINITIONS

Capitalized terms not otherwise defined in this Statement of Terms and Conditions shall have the
meaning set forth in the Plan. When capitalized in this Statement of Terms and Conditions, the
following additional terms shall have the meaning set forth below:

A. “Grant Date” means the date of the 2007 annual meeting of the stockholders of the
Company.

B. “Retirement” means the voluntary termination of service by a non-employee Director at
(i) age 65 or older or (ii) age 55 or older at a time when age plus years of service equals or
exceeds 65.

III. RESTRICTED STOCK UNITS

A. Agreement. The Restricted Stock Unit Award shall be evidenced by an Agreement to be
executed by the Participant and the Company setting forth the terms and conditions of the Award.
Each Award Agreement shall incorporate by reference and be subject to this Statement of Terms and
Conditions and the terms and conditions of the Plan.

B. Special Restrictions. The Restricted Stock Unit Award shall contain the following
terms, conditions and restrictions and such additional terms, conditions and restrictions as may be
determined by the Administrator prior to the adoption of this Statement of Terms and Conditions;
provided, however, that no Award shall be subject to additional terms, conditions and restrictions
which are more favorable to a Participant than the terms, conditions and restrictions set forth in
the Plan, the Restricted Stock Unit Award Agreement, or this Statement of Terms and Conditions.

 

 

     1. Forfeiture Restrictions. Until November 1, 2007, the Restricted Stock Units
granted to a Participant shall, if the Participant voluntarily resigns his or her position as a
Director of the Company for any reason other than Disability, as determined pursuant to Section
409A(a)(2)(C) of the Code, as amended, or in connection with a Change in Control be returned to the
Company forthwith, and all the rights of the Participant to such Shares or Restricted Stock Units
shall immediately terminate. Notwithstanding the foregoing, if a Director ceases to be a Director
on account of his or her death, disability or failure to be nominated to Board for election at the
2007 annual meeting or a Change in Control, such Director shall be deemed to have elected to
receive his or her retirement benefits as a credit to a deferred compensation account under the
Company’s Deferred Compensation Plan for Non-Employee Directors.

     2. Transfer Restriction. Until the time of payment of Restricted Stock Units as
provided in Section III.E, the Restricted Stock Units shall not be sold, assigned, transferred,
pledged, hypothecated, or otherwise disposed of. A Participant shall not be permitted to sell,
transfer, pledge, assign or encumber such Restricted Stock Units, other than pursuant to a
qualified domestic relations order as defined in the Internal Revenue Code of 1986, as amended.

C. Dividends or Dividend Equivalents. Dividend equivalents credited in respect of
Restricted Stock Units shall be converted into additional Restricted Stock Units, which will be
subject to all of the terms and conditions of the underlying Restricted Stock Unit Award, including
the same vesting restrictions as the underlying Award.

D. No Shareholder Rights for Restricted Stock Units. Neither a Participant nor any person
entitled to exercise a Participant’s rights in the event of the Participant’s death shall have any
of the rights of a shareholder with respect to the Share Equivalents subject to a Restricted Stock
Unit Award except to the extent that restrictions have lapsed and Shares have been issued upon the
payment of any vested Restricted Stock Unit Award.

E. Time of Payment of Restricted Stock Units. On the date when the Participant ceases to
be a Director for any reason, which cessation constitutes a “separation from service” within the
meaning of Section 409A of the Code, all Restricted Stock Units that were not forfeited pursuant to
Section III.B shall be paid to the Participant as soon as reasonably practicable after the date of
such separation from service but not later than 75 days following the date of such separation from
service. Payment shall be made in Shares.

IV. CHANGE IN CONTROL

In the event of a Change in Control, all outstanding Restricted Stock Unit Awards shall become 100%
vested and immediately payable, provided that such Change in Control constitutes a “change in
effective ownership or control” of the Company within the meaning of Section 409A of the Code.

V. MISCELLANEOUS

A. Information Notification. Any information required to be given under the terms of an
Award Agreement shall be addressed to the Company in care of Senior Vice President, Human
Resources, ABM Industries Incorporated, 160 Pacific Avenue, Suite 222, San Francisco, CA 94111 and
any notice to be given to a Participant shall be addressed to him or her at the address

2

 

indicated beneath his or her name on the Award Agreement or such other address as either party may
designate in writing to the other. Any such notice shall be deemed to have been duly given when
enclosed in a properly sealed envelope or wrapper addressed as aforesaid, registered or certified
and deposited (postage or registration or certification fee prepaid) in a post office or branch
post office regularly maintained by the United States.

B. Administrator Decisions Conclusive. All decisions of the Administrator administering
the Plan upon any questions arising under the Plan, under this Statement of Terms and Conditions,
or under an Award Agreement, shall be conclusive.

C. No Effect on Other Benefit Plans. Nothing herein contained shall affect a Participant’s
right to participate in and receive benefits from and in accordance with the then current
provisions of any pensions, insurance or other employment welfare plan or program offered by the
Company to its non-employee directors.

D. Tax Payments. Each Participant shall agree to satisfy any applicable federal, state or
local income taxes associated with an Award.

E. Successors. This Statement of Terms and Conditions and the Award Agreements shall be
binding upon and inure to the benefit of any successor or successors of the Company. “Participant”
as used herein shall include the Participant’s Beneficiary.

F. Governing Law. The interpretation, performance, and enforcement of this Statement of
Terms and Conditions and all Award Agreements shall be governed by the laws of the State of
Delaware.

3

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