Document:

Exhibit 10.2

Exhibit 10.2

ABM INDUSTRIES INCORPORATED

STATEMENT OF TERMS AND CONDITIONS APPLICABLE TO

OPTIONS, RESTRICTED STOCK, RESTRICTED STOCK UNITS

AND PERFORMANCE SHARES GRANTED TO EMPLOYEES

PURSUANT TO THE 2006 EQUITY INCENTIVE PLAN

(As Amended and Restated January 11, 2010)

I. INTRODUCTION

The following terms and conditions shall apply to each Award granted under the Plan to an Employee
eligible to participate in the Plan. 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.	 	“Cause” means, with respect to a Participant:

(i) serious misconduct, dishonesty, disloyalty or insubordination;

(ii) the Participant’s conviction (or entry of a plea bargain admitting criminal guilt) of
any felony or misdemeanor involving moral turpitude;

(iii) drug or alcohol abuse that has a material or potentially material effect on the
Company’s reputation and/or the performance of the Participant’s duties and
responsibilities under the Participant’s employment agreement;

(iv) failure to substantially perform the Participant’s duties or responsibilities under
the Participant’s employment agreement for reasons other than death or disability;

(v) repeated inattention to duty for reasons other than death or disability; or

(vi) any other material breach of the Participant’s employment agreement by the
Participant.

	B.	 	“Competitive Activity” shall mean, with respect to a Participant, the Participant’s
participation, without the written consent signed by an officer of the Company and authorized
by the Board, in the management of any business enterprise if (i) such enterprise engages in
substantial and direct competition with the Company and such enterprise’s sales of any product
or service competitive with any product or service of the Company amounted to 10% of such
enterprise’s net sales for its most recently completed fiscal year and if the Company’s net
sales of said product or service amounted to 10% of the Company’s net sales for its most
recently completed fiscal year or (ii) the primary business done or intended to be done by
such enterprise is in direct competition with the business of providing facility services in
any geographic market in which the Company operates. “Competitive Activity” will not include
the mere ownership of securities in any such enterprise and the exercise of rights appurtenant
thereto, if such ownership is less than 5% of the outstanding voting securities or units of
such enterprise.

 

 

 

	C.	 	“Excess Equity Award” means the positive difference, if any, between the value of the
Award granted to an Executive Officer and the Award that would have been made to such
Executive Officer had the amount of the Award been calculated based on the Company’s financial
statements as restated.

	D.	 	“Executive Officer” means any person who is an officer of the Company for purposes of
Section 16 of the Exchange Act.

	E.	 	“Fair Market Value” of a Share as of a specified date means the closing price at
which Shares are traded on such date as reported in the New York Stock Exchange composite
transactions published in the Wall Street Journal, or if no trading of Shares is reported for
that day, on the next following day on which trading is reported; provided
that for purposes of determining the exercise price of an Incentive Stock Option, the
Fair Market Value of a Share as of the date of grant means the average of the opening and
closing price at which Shares are traded on such date as reported in the New York Stock
Exchange composite transactions published in the Wall Street Journal, or if no trading of
Shares is reported for that day, on the next preceding day on which trading was reported.

	F.	 	“Grant Date” means the date the Administrator grants the Award.

	G.	 	“Independent Committee” means any committee consisting of independent Directors
designated by the independent members of the Board.

	H.	 	“Option Period” means the period commencing on the Grant Date of an Option and,
except as otherwise provided in Section III.E, ending on the Termination Date.

	I.	 	“Option Proceeds” means, with respect to any sale or other disposition of Shares
issued or issuable upon the exercise of an Option, an amount determined appropriate by the
independent members of the Board or the Independent Committee, in its sole judgment, to
reflect the effect of a restatement of the Company’s financial statements on the Company’s
stock price, up to an amount equal to the number of Shares sold or disposed of, multiplied by
a number equal to the difference between the Fair Market Value per Share at the time of sale
or disposition and the Exercise Price.

	J.	 	“Termination Date” means the date that an Option expires as set forth in the Option
Agreement.

III. OPTIONS

	A.	 	Option Notice and Agreement. An Option granted under the Plan shall be evidenced by
an Option Agreement setting forth the terms and conditions of the Option, including whether
the Option is an Incentive Stock Option or a Nonqualified Stock Option and the number of
Shares subject to the Option. Each Option Agreement shall incorporate by reference and be
subject to this Statement of Terms and Conditions and the terms and conditions of the Plan.

	B.	 	Exercise Price. The Exercise Price of an Option, as specified in the Option
Agreement, shall be equal to or greater than the Fair Market Value of the Shares underlying
the Option on the Grant Date.

	C.	 	Option Period. An Option shall be exercisable only during the applicable Option
Period, and during such Option Period the exercisability of the Option shall be subject to the
vesting provisions of Section III.D as modified by the rules set forth in Sections III.E, V
and VI. The Option Period shall be not more than seven years from the Grant Date.

 

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	D.	 	Vesting of Right to Exercise Options.

	 	1.	 	Except as provided in Sections V, VI and VII, an Option shall be
exercisable during the Option Period in accordance with the following vesting
schedule: (i) 25% of the Shares subject to the Option shall vest on the first
anniversary of the Grant Date; (ii) an additional 25% of the Shares shall vest on the
second anniversary of the Grant Date; (iii) an additional 25% of the Shares shall
vest on the third anniversary of the Grant Date; and (iv) the remaining 25% of the
Shares subject to the Option shall vest on the fourth anniversary of the Grant Date.
Notwithstanding the foregoing, the Administrator may specify a different vesting
schedule at the time the Option is granted and as specified in the Option Agreement.

	 	2.	 	Any vested portion of an Option not exercised hereunder shall accumulate
and be exercisable at any time on or before the Termination Date, subject to the
rules set forth in Sections III.E, V, VI and VII. No Option may be exercised for less
than 5% of the total number of Shares then available for exercise under such Option.
In no event shall the Company be required to issue fractional shares.

	E.	 	Termination of Employment. In addition to the terms set forth in the Plan with
respect to termination of employment:

	 	1.	 	If a Participant ceases to be a bona fide employee of the Company or an
Affiliate due to his or her Retirement, Disability or death during the Option Period,
in addition to any Shares vested under the Option Agreement prior to the date of
Disability or death, the Option shall vest in the number of Shares equal to 25% of
the number of Shares originally subject to the Option, multiplied by the number of
whole months between the most recent anniversary date of the Option grant and the
date of Retirement, Disability or death, and divided by 12.

	 	2.	 	If a Participant who ceases to be a bona fide employee of the Company or an
Affiliate is subsequently rehired prior to the expiration of his or her Option, then
the Option shall continue to remain outstanding until such time as the Participant
subsequently terminates employment or the Option otherwise terminates pursuant to
this Statement of Terms and Conditions. Upon the Participant’s subsequent termination
of employment, the post-termination exercise period calculated pursuant to the terms
and conditions of this Section III.E shall be reduced by the number of days between
the date of the Participant’s initial termination of employment and his or her rehire
date; provided, however, that if the rehired Participant continues to be
employed by the Company or an Affiliate for at least one year from his or her rehire
date, then the post-termination exercise period for the Option shall be determined in
accordance with the Plan and shall not be adjusted as described above.

 

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	F.	 	Method of Exercise. A Participant may exercise an Option with respect to all or any
part of the exercisable Shares as follows:

	 	1.	 	By giving the Company, or its authorized representative designated for this
purpose, written notice of such exercise specifying the number of Shares as to which
the Option is so exercised. Such notice shall be accompanied by an amount equal to
the Exercise Price of such Shares, in the form of any one or combination of the
following:

	 	a.	 	cash or certified check, bank draft, postal or express
money order payable to the order of the Company in lawful money of the
United States;

	 	b.	 	if approved by the Company at the time of exercise,
personal check of the Participant;

	 	c.	 	if approved by the Company at the time of exercise, a
“net exercise” pursuant to which the Company will not require a payment of
the exercise price from the Participant but will reduce the number of Shares
issued upon the exercise by the largest number of whole Shares that has a
Fair Market Value that does not exceed the aggregate exercise price. With
respect to any remaining balance of the aggregate exercise price, the
Company shall accept payment in a form identified in (a) or (b) of this
section;

	 	d.	 	if approved by the Company at the time of exercise, by
tendering to the Company or its authorized representative Shares which have
been owned by the Participant for at least six months prior to said tender,
and having a Fair Market Value, as determined by the Company, equal to the
Exercise Price. In the event a Participant tenders Shares to pay the
Exercise Price, tender of Shares acquired through exercise of an Incentive
Stock Option may result in unfavorable income tax consequences unless such
Shares are held for at least two years from the Grant Date of the Incentive
Stock Option and one year from the date of exercise of the Incentive Stock
Option;

	 	e.	 	if approved by the Company at the time of exercise,
delivery (including by FAX transmission) to the Company or its authorized
representative of an executed irrevocable option exercise form together with
irrevocable instructions to an approved registered investment broker to sell
Shares in an amount sufficient to pay the Exercise Price plus any applicable
withholding taxes and to transfer the proceeds of such sale to the Company;
and

	 	2.	 	If required by the Company, by giving satisfactory assurance in writing,
signed by the Participant, the Participant shall give his or her assurance that the
Shares subject to the Option are being purchased for investment and not with a view
to the distribution thereof; provided that such assurance shall be deemed
inapplicable to (i) any sale of the Shares by such Participant made in accordance
with the terms of a registration statement covering such sale, which has heretofore
been (or may hereafter be) filed and become effective under the Securities Act of
1933, as amended (the “Securities Act”) and with respect to which no stop order
suspending the effectiveness thereof has been issued, and (ii) any other sale of the
Shares with respect to which, in the opinion of counsel for the Company, such
assurance is not required to be given in order to comply with the provisions of the
Securities Act.

	G.	 	Limitations on Transfer. An Option shall, during a Participant’s lifetime, be
exercisable only by the Participant. No Option or any right granted thereunder shall be
transferable by the Participant by operation of law or otherwise, other than as set forth in
the Plan. In the event of any attempt by a Participant to alienate, assign, pledge,
hypothecate, or otherwise dispose of an Option or of any right thereunder, except as provided
herein, or in the event of the levy of any attachment, execution, or similar process upon the
rights or
interest hereby conferred, the Company at its election may terminate the affected Option
by notice to the Participant and the Option shall thereupon become null and void.

 

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	H.	 	No Shareholder Rights. 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 Shares subject to an Option except to the extent that an
Option has been exercised.

IV. RESTRICTED STOCK, RESTRICTED STOCK UNITS, AND PERFORMANCE SHARES

	A.	 	Agreement. A Restricted Stock Award, Restricted Stock Unit Award, or Performance
Share Award granted under the Plan 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. Each Restricted Stock Award, Restricted Stock Unit Award, or
Performance Share Award made under the Plan shall contain the following terms, conditions and
restrictions and such additional terms, conditions and restrictions as may be determined by
the Administrator; 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 Agreement, Restricted
Stock Unit Award Agreement, Performance Share Award Agreement, or this Statement of Terms and
Conditions.

	 	1.	 	Restrictions. Until the restrictions imposed on any Restricted
Stock Award shall lapse, shares of Restricted Stock granted to a Participant: (a)
shall not be sold, assigned, transferred, pledged, hypothecated, or otherwise
disposed of, and (b) shall, if the Participant experiences a “separation from
service” (within the meaning of Section 409A of the Code) from the Company or an
Affiliate for any reason (except as otherwise provided in the Plan or in Section
IV.B.2) be returned to the Company forthwith, and all the rights of the Participant
to such Shares shall immediately terminate. A Participant shall not be permitted to
sell, transfer, pledge, assign or encumber such Restricted Stock Units or Performance
Shares, other than pursuant to a qualified domestic relations order as defined in the
Code or Title I of the Employee Retirement Income Security Act. If a Participant
experiences a “separation from service” (within the meaning of Section 409A of the
Code) from the Company or an Affiliate (except as otherwise provided in the Plan or
in Section IV.B.2) prior to the lapse of the restrictions imposed on a Restricted
Stock Unit Award or Performance Share Award, the unvested portion of the Restricted
Stock Unit Award or Performance Share Award shall be forfeited to the Company, and
all the rights of the Participant to such Award shall immediately terminate. If a
Participant is absent from work with the Company or an Affiliate because of his or
her short-term disability or because the Participant is on an approved leave of
absence, if the period of such leave does not exceed six months (or if longer, so
long as the individual retains a right to reemployment with the Company under an
applicable statute or by contract), the Participant shall not be deemed during the
period of any such absence, by virtue of such absence alone, to have experienced a
“separation from service” (within the meaning of Section 409A of the Code) from the
Company or an Affiliate except as the Administrator may otherwise expressly
determine. Notwithstanding the foregoing, if the Participant is on a voluntary leave
of absence for the purpose of serving the government of the country of which the
Participant is a citizen or in which the Participant’s
principal place of employment is located, such leave shall be considered an
approved leave of absence.

 

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	 	2.	 	Termination of Employment by Reason of Retirement, Disability or
Death.

	 	a.	 	Restricted Stock Awards and Restricted Stock Unit
Awards. Notwithstanding any provision contained herein or in the Plan or
the Restricted Stock Agreement or Restricted Stock Unit Agreement to the
contrary, if a Participant who has been in the continuous employment of the
Company or an Affiliate since the Grant Date of a Restricted Stock Award or
Restricted Stock Unit Award ceases to be a bona fide employee of the Company
or an Affiliate, which cessation constitutes a “separation from service”
under Section 409A of the Code and which is a result of Retirement,
Disability or death, then the restrictions shall lapse as to the number of
Shares or Share Equivalents equal to: (i) 50% of the number of Shares or
Share Equivalents originally subject to the Award, multiplied by (ii) the
number of whole months between the Grant Date (or if the Grant Date occurred
more than two years prior to the date of Retirement, Disability or death,
the second anniversary of the Grant Date) and the date of Retirement,
Disability or death, divided by (iii) 24.

	 	b.	 	Performance Share Awards. Notwithstanding any
provision contained herein or in the Plan or the Performance Share Agreement
to the contrary, if a Participant who has been in the continuous employment
of the Company or an Affiliate since the Grant Date of a Performance Share
Award ceases to be a bona fide employee of the Company or an Affiliate as a
result of Retirement, Disability or death, then at the end of the
performance period the restrictions shall lapse as to the number of Share
Equivalents equal to: (i) the number of Performance Shares vested in
accordance with the performance objectives established by the Administrator
for the Award, multiplied by (ii) the number of whole months between the
Grant Date and the date of Retirement, Disability or death, divided by (iii)
the number of months in the performance period.

	C.	 	Dividends, Dividend Equivalents, and Business Transactions. Upon cash dividends being
paid on outstanding shares of ABM common stock, dividends shall be paid with respect to
Restricted Stock during the Restriction Period and shall be converted to additional shares of
Restricted Stock, which shall be subject to the same restrictions as the original Award for
the duration of the Restricted Period. Upon cash dividends being paid on outstanding shares of
ABM common stock, dividend equivalents shall be credited in respect of Restricted Stock Units
and Performance Shares, which shall be converted into additional Restricted Stock Units or
Performance Shares, which will be subject to all of the terms and conditions of the underlying
Restricted Stock Unit Award or Performance Share Award, including the same vesting
restrictions as the underlying Award. Upon stock dividends being paid on outstanding shares of
ABM common stock or a Business Transaction, the Administrator is authorized to take such
actions and make such changes with respect to outstanding Awards, including the performance
criteria for the termination of restrictions on Awards, as are consistent with the Plan and
this Statement of Terms and Conditions to effect the terms of the Awards.

 

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	D.	 	Election to Recognize Gross Income in the Year of Grant. If any Participant validly
elects within thirty days of the Grant Date to include in gross income for federal income tax
purposes an amount equal to the Fair Market Value of the Shares of Restricted Stock
granted on the Grant Date, such Participant shall pay to the Company, or make arrangements
satisfactory to the Administrator to pay to the Company in the year of such grant, any
federal, state or local taxes required to be withheld with respect to such shares in
accordance with Section VIII.F.

	E.	 	No Shareholder Rights for Restricted Stock Units or Performance Shares. 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 or Performance Share Award except to the
extent that a stock certificate has been issued with respect to such Shares upon the payment
of any vested Restricted Stock Unit Award or Performance Share Award.
	 
	F.	 	Time of Payment of Restricted Stock Units and Performance Shares.

	 	1.	 	Subject to Section IV.F.2 below, upon the lapse of the restriction imposed
on Restricted Stock Unit Awards or Performance Share Awards, all Restricted Stock
Units and Performance Shares that were not forfeited pursuant to Sections IV.B.1, V
or VI shall be paid to the Participant as soon as reasonably practicable after the
restrictions lapse but not later than 75 days following the date on which the
restrictions lapse. Payment shall be made in Shares in the form of a stock
certificate. The foregoing notwithstanding, the Participant may elect to defer
payment of the Restricted Stock Units in the manner described in Section IV.G;

	 	2.	 	To the extent required in order to avoid accelerated taxation and/or tax
penalties under Code Section 409A, amounts that would otherwise be payable pursuant
to Section IV.F of this Statement of Terms and Conditions during the six-month period
immediately following a Participant’s termination of employment shall instead be paid
on the first business day after the date that is six months following the
Participant’s termination of employment (or upon the Participant’s death, if
earlier).

	G.	 	Deferral Election. Each Participant, pursuant to rules established by the
Administrator, may be entitled to elect to defer all or a percentage of any payment in respect
of a Restricted Stock Unit Award or Performance Shares that he or she may be entitled to
receive as determined pursuant to Section IV.F. This election shall be made by giving notice
in a manner and within the time prescribed by the Administrator and in compliance with Code
Section 409A. Each Participant must indicate the percentage (expressed in whole percentages)
he or she chooses to defer of any payment he or she may be entitled to receive. If no notice
is given, the Participant shall be deemed to have made no deferral election. Each deferral
election filed with the Company shall become irrevocable in accordance with the terms and
conditions of the Company’s Deferred Compensation Plan (or any successor plan) and in
compliance with Code Section 409A.

V. SPECIAL FORFEITURE AND REPAYMENT RULES IN THE EVENT OF CONDUCT CONSTITUTING CAUSE

Any other provision of this Statement of Terms and Conditions to the contrary notwithstanding, if
the independent members of the Board or the Independent Committee determines that a Participant has
engaged in conduct which constitutes Cause, the following provisions shall apply:

	A.	 	Any outstanding Option shall immediately and automatically terminate, be forfeited and shall
cease to be exercisable, without limitation. In addition, any shares of Restricted Stock,
Restricted Stock Units or Performance Shares as to which the restrictions have not lapsed
shall immediately and automatically be forfeited, all of the rights of the Participant
to such shares or share equivalents shall immediately terminate, and any Restricted Stock
shall be returned to the Company.

 

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	B.	 	The lapse of restrictions on or vesting of Restricted Stock, Restricted Stock Units, or
Performance Shares that have vested or upon which the restrictions have lapsed within the
36-month period immediately prior to the date it is determined that the Participant engaged in
conduct constituting Cause (the “Determination Date”) shall be rescinded and all outstanding
Awards shall be cancelled. The Participant shall deliver to the Company the Shares delivered
upon vesting or lapse of restrictions if such vesting or lapse of restrictions has been
rescinded and the Shares retained by the Participant.

	C.	 	The independent members of the Board or the Independent Committee may, to the extent
permitted by applicable law, rescind any Awards made to the Participant within the 36-month
period immediately prior to the Determination Date.

	D.	 	The independent members of the Board or the Independent Committee may, to the extent
permitted by applicable law, recover any gains realized from the sale of vested Shares or the
sale or other disposition of any Shares issued or issuable upon the exercise of an Option, in
the case of any such sale or other disposition during the 36-month period immediately prior to
the Determination Date.

The independent members of the Board or the Independent Committee shall determine in such body’s
sole discretion whether the Participant has engaged in conduct that constitutes Cause.

Any provision of this Section V which is determined by a court of competent jurisdiction to be
invalid or unenforceable should be construed or limited in a manner that is valid and enforceable
and that comes closest to the business objectives intended by such invalid or unenforceable
provision, without invalidating or rendering unenforceable the remaining provisions of this Section
V.

VI. RECOUPMENT IN THE EVENT OF A RESTATEMENT

Any other provision of this Statement of Terms and Conditions to the contrary notwithstanding, if
the Company’s financial statements are the subject of a restatement due to misconduct, fraud or
malfeasance, then the following shall apply:

	A.	 	To the extent permitted by governing law, the independent members of the Board or the
Independent Committee may, in its discretion, (1) rescind any Excess Equity Award or portion
thereof made to an Executive Officer within the 36-month period immediately prior to the date
such material restatement is first publicly disclosed and (2) in the event that an Executive
Officer has sold or otherwise disposed of some or all of the Shares subject to the Excess
Equity Award, recover any gains made from the sale or other disposition of such Shares that
was effected during the 36-month period immediately prior to the date such material
restatement is first publicly disclosed. In no event shall the Company be required to award an
Executive Officer additional equity incentive compensation should the restated financial
statements result in a higher equity incentive payment.

	B.	 	In addition to the foregoing, the independent members of the Board or the Independent
Committee may, in its discretion, require that an Executive Officer pay the Company, in cash
and upon demand, Option Proceeds resulting from the sale or other disposition of Shares issued
or issuable upon the exercise of an Option if the sale or disposition was effected during the
36-month period immediately prior to the date such material restatement is first publicly
disclosed.

 

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Any provision of this Section VI which is determined by a court of competent jurisdiction to be
invalid or unenforceable should be construed or limited in a manner that is valid and enforceable
and that comes closest to the business objectives intended by such invalid or unenforceable
provision, without invalidating or rendering unenforceable the remaining provisions of this Section
VI.

VII. CHANGE IN CONTROL

	A.	 	Effect of Change in Control on Options. Subject to the limitations set forth in
Section VII.C, in the event of a Change in Control, the surviving, continuing, successor, or
purchasing Company or other business entity or parent thereof, as the case may be (the
“Acquiror”) may, without the consent of any Participant, either assume or continue the
Company’s rights and obligations under outstanding Options or substitute for outstanding
Options substantially equivalent options covering the Acquiror’s stock. All Options assumed
or continued by the Acquiror in connection with a Change in Control will become fully vested
and exercisable if the Participant’s employment is terminated without Cause at any time during
the 12-month period following the Change in Control.
	 
	 	 	Any Option granted one year or more prior to the Change in Control that is neither assumed
nor continued by the Acquiror in connection with the Change in Control shall, contingent
on the Change in Control, become fully vested and exercisable immediately prior to the
Change in Control. Any Option granted less than one year prior to the Change in Control
that is neither assumed nor continued by the Acquiror in connection with the Change in
Control shall, to the extent not previously vested and exercisable, immediately prior to
the Change in Control become vested and exercisable as to the number of Shares subject to
such Option equal to (i) the number of Shares originally subject to such Option,
multiplied by (ii) the number of whole months between the Grant Date and the Change in
Control, divided by (iii) the number of months between the Grant Date and the date on
which all Shares originally subject to such Option would have been fully vested and
exercisable; and such Option shall terminate with respect to all remaining Shares subject
to such Option.

	B.	 	Effect of Change in Control on Awards Other than Options. Subject to the limitations
set forth in Section VII.C, in the event of a Change in Control, the Acquiror may, without the
consent of any Participant, either assume or continue the Company’s rights and obligations
under outstanding Awards other than Options or substitute for such Awards substantially
equivalent awards covering the Acquiror’s stock. All Awards other than Options assumed or
continued by the Acquiror in connection with a Change in Control will become fully vested and
all restrictions on such Awards will lapse if the Participant’s employment is terminated
without Cause at any time during the 12-month period following the Change in Control. Any
Award that is neither assumed nor continued by the Acquiror in connection with the Change in
Control shall, upon the Change in Control, become fully vested and all restrictions shall be
released immediately prior to the Change in Control, and all Restricted Unit Awards and
Performance Share Awards shall become immediately payable. Notwithstanding anything in this
Section VII.B to the contrary, if the Change in Control does not constitute a “change in
effective ownership or control” of the Company within the meaning of Code Section 409A, the
Restricted Stock Units and Performance Shares granted pursuant to this Statement of Terms and
Conditions will vest as provided in this Section VII.B, but will be payable to the Participant
in accordance with the provisions of Section IV.

 

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	C.	 	Excess Parachute Payments. Subject to a Severance Agreement between the Participant
and the Company approved by the Board of Directors or the Compensation Committee, if any
amount or benefit to be paid or provided under an Award or any other agreement between a
Participant and the Company would be an Excess Parachute Payment but for
the application of this sentence, then
the payments and benefits to be paid
or provided under the Award and any
other agreement will be reduced to the
minimum extent necessary (but in no
event to less than zero) so that no
portion of any such payment or
benefit, as so reduced, constitutes an
Excess Parachute Payment. The
determination of whether any reduction
in such payments or benefits to be
provided under the Award or any other
agreement or otherwise is required
pursuant to the preceding sentence
will be made at the expense of the
Company by independent accountants or
the Company’s benefits consultant. The
fact that the Participant’s right to
payments or benefits may be reduced by
reason of the limitations contained in
this paragraph will not of itself
limit or otherwise affect any other
rights of the Participant under any
other agreement. In the event that any
payment or benefit intended to be
provided is required to be reduced
pursuant to this paragraph, the
Participant will be entitled to
designate the payments and/or benefits
to be so reduced in order to give
effect to this paragraph. The Company
will provide the Participant with all
information reasonably requested by
the Participant to permit the
Participant to make such designation.
In the event that the Participant
fails to make such designation within
10 business days after receiving
notice from the Company of a reduction
under this paragraph, the Company may
effect such reduction in any manner it
deems appropriate.

VIII. MISCELLANEOUS

	A.	 	No Effect on Terms of Employment. Subject to the terms of any employment contract
entered into by the Company and a Participant to the contrary, the Company (or an Affiliate
which employs him or her) shall have the right to terminate or change the terms of employment
of a Participant at any time and for any reason whatsoever.

	B.	 	Grants to Participants in Foreign Countries. In making grants to Participants in
foreign countries, the Administrator has the full discretion to deviate from this Statement of
Terms and Conditions in order to adjust Awards under the Plan to prevailing local conditions,
including custom and legal and tax requirements.

	C.	 	Information Notification. Any information required to be given under the terms of an
Award Agreement shall be addressed to the Company in writing by mail, overnight delivery
service, or by electronic transmission to the Senior Vice President, Human Resources and the
Assistant Vice President & Director of Compensation. Any notice to be given to a Participant
shall be given in writing by mail, overnight delivery service, or by electronic transmission.

	D.	 	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.

	E.	 	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.

 

10

 

	F.	 	Withholding. Each Participant shall agree to make appropriate arrangements with the
Company and his or her employer for satisfaction of any applicable federal, state or local
income tax withholding requirements or payroll tax requirements. If approved by the Company at
the time of exercise, such arrangements may include an election by a Participant to have the
Company retain some portion of the Stock acquired pursuant to exercise of an Option to satisfy
such withholding requirements. The election must be made prior to the date on which the amount
to be withheld is determined. If a qualifying election is made, then upon exercise of an
Option, in whole or in part, the Company will
retain the number of Shares having a value equal to the amount necessary to satisfy any
withholding requirements. Calculation of the number of Shares to be withheld shall be made
based on the Fair Market Value of the Stock. In no event, however, shall the Company be
required to issue fractional shares of Stock. The Administrator shall be authorized to
establish such rules, forms and procedures as it deems necessary to implement the
foregoing.

With respect to the vesting of an Award other than an Option, if the Participant does not make an
arrangement with the Company and his or her employer for satisfaction of the applicable income and
withholding requirements or social security requirements in advance of the vesting date, the
Company shall retain the number of Shares (that otherwise would have been payable to the
Participant) having a value equal to the amount necessary to satisfy any withholding requirements.
Calculation of the number of such Shares shall be as described above.

	G.	 	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.

	H.	 	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.

 

11Exhibit 10.3

Exhibit 10.3

EXECUTION COPY

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is effective as of December
16, 2009 (the “Effective Date”), by and between Henrik C. Slipsager (“Executive”) and ABM
Industries Incorporated for itself and on behalf of its subsidiary corporations as applicable
herein.

WHEREAS, the subsidiaries of ABM (as hereinafter defined) are engaged in the building maintenance
and related service businesses, and

WHEREAS, Executive is experienced in the administration, finance, marketing, and/or operation of
such services, and

WHEREAS, Executive and ABM are party to an Amended and Restated Employment Agreement dated July 15,
2008 (the “Prior Agreement”),

WHEREAS, the parties desire to amend and restate the Prior Agreement,

WHEREAS, ABM and its subsidiaries have invested significant time and money to develop proprietary
trade secrets and other confidential business information, as well as invaluable goodwill among its
customers, sales prospects and employees, and

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

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

NOW THEREFORE, Executive and ABM agree as follows:

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

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

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

 

 

	 	A.	 	“ABM” means ABM Industries Incorporated, its successors, and assigns.

	 	B.	 	“Base Salary” means the salary paid under Paragraph 7A for the applicable
Fiscal Year.

	 	C.	 	“Board” means the Board of Directors of ABM.

	 	D.	 	“Bonus” means a performance-based bonus payable under Paragraph 7B of this
Agreement.

	 	E.	 	“CEO Committee” means a committee designated by the Board which shall
constitute all of the Independent Directors.

	 	F.	 	“Company” means ABM and its subsidiaries.

	 	G.	 	“Compensation Committee” means the Compensation Committee of the Board.

	 	H.	 	“EOIP” means the ABM Executive Officer Incentive Plan adopted by the Board on
January 10, 2006, as such plan may be amended from time to time, or any successor plan.

	 	I.	 	“Executive” means Henrik C. Slipsager.

	 	J.	 	“Extended Term” means the period for which this agreement is extended under
Paragraph 14 of this Agreement.

	 	K.	 	“Fiscal Year” means the period beginning on November 1 of a calendar year and
ending on October 31 of the following calendar year or such other period as shall be
designated by the Board as ABM’s fiscal year.

	 	L.	 	“Independent Directors” means the directors designated by the Board as
independent directors, which persons shall qualify both as independent under the rules
and regulations of the New York Stock Exchange and as outside directors under Section
162(m).

	 	M.	 	“Initial Term” is the period beginning on the Effective Date and ending on
October 31, 2013, unless sooner terminated under Paragraph 15 of this Agreement.

	 	N.	 	“Just Cause” means (i) theft or dishonesty, (ii) more than one instance of
neglect or failure to perform employment duties, (iii) more than one instance of
inability or unwillingness to perform employment duties, (iv) insubordination, (v)
abuse of alcohol or other drugs or substances affecting Executive’s performance of his
employment duties, (vi) material and willful breach of this Agreement, (vii) other

 

2

 

misconduct, unethical or unlawful activity, (viii) a conviction of or plea of
“guilty” or “no contest” to a felony under the laws of the United States or any
state thereof, or (ix) a conviction of or plea of “guilty” or “no contest” to a
misdemeanor involving a crime of moral turpitude under the laws of the United States
or any state thereof.

	 	O.	 	“Performance Assessment” means the Compensation Committee’s annual assessment,
after consultation with the CEO Committee, of Executive’s performance against the
Performance Criteria.

	 	P.	 	“Performance Criteria” means the performance criteria for Executive established
annually by the Compensation Committee, after consultation with the CEO Committee, in
accordance with Paragraph 7B of this Agreement.

	 	Q.	 	“Section 162(m)” means Section 162(m) of the Internal Revenue Code of 1986, as
amended, and the regulations and guidance promulgated thereunder, or any successor
statute.

	 	R.	 	“Section 409A” means Section 409A of the Internal Revenue Code of 1986, as
amended, and the regulations and guidance promulgated thereunder, or any successor
statute.

	 	S.	 	“Significant Transaction” means the Company’s acquisition or disposition of a
business or assets which ABM is required to report under Item 2.01 of Form 8-K under
the rules and regulations issued by the Securities and Exchange Commission.

	 	T.	 	“State of Employment” means New York.

	 	U.	 	“Target Bonus” means 100% of Executive’s Base Salary.

	 	V.	 	“Total Disability” means Executive’s inability to perform his duties under this
Agreement and shall be deemed to occur on the 91st consecutive or nonconsecutive
calendar day within any 12 month period that Executive is unable to perform his duties
under this Agreement because of any physical or mental illness or disability.

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

 

3

 

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

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

	7.	 	COMPENSATION. ABM agrees to compensate Executive, and Executive agrees to accept as
compensation in full, for Executive’s assumption and performance of duties and
responsibilities pursuant to this Agreement:

	 	A.	 	SALARY. Executive shall be entitled to a Base Salary in an amount to be
determined by the CEO Committee in its sole discretion, provided that Executive’s
initial Base Salary shall be $765,000.

	 	B.	 	BONUS. Subject to the provisions of the EOIP, the provisions of Paragraph 15
and subparagraphs (iii), (iv) and (v) below, Executive shall be entitled to a Bonus for
each Fiscal Year, as follows:

	 	i.	 	Executive’s Bonus may range from 0% to 180% of the Target Bonus
and shall be based on the Performance Assessment of Executive for the
applicable Fiscal Year evaluated on the basis of the Performance Criteria.
Performance Criteria may include both ABM and individual objectives, may be
both qualitative and quantitative in nature and shall be established and
communicated to Executive within 90 days after the beginning of the Fiscal Year
for which they apply. The Compensation Committee or the CEO Committee (or
members of such committees) may seek the views of members of the Board with
respect to whether the Performance Criteria have been achieved, provided that
the Performance Assessment shall be solely determined by the Compensation
Committee. The determination of the Bonus amount for each Fiscal Year shall be
determined by the CEO Committee.

	 	ii.	 	The Performance Criteria may be adjusted by the Compensation
Committee, after consultation with the CEO Committee, in the event of a
Significant Transaction and/or for any unanticipated and material events that
are beyond the control of ABM, including but not limited to acts of god,
nature, war or terrorism, or changes in the rules for financial reporting set
forth by the Financial Accounting Standards Board, the Securities and Exchange
Commission, rules of the New York Stock Exchange and/or for any other reason
which the Compensation Committee determines, in good faith, to be appropriate,
provided that no adjustment

 

4

 

shall be permitted to the extent it would result in the nondeductibility of
any portion of the Bonus under Section 162(m).

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

	 	iv.	 	Absent bad faith or material error, any conclusions of the
Compensation Committee or the CEO Committee with respect to the Performance
Criteria, the Performance Assessment, or the actual Bonus shall be final and
binding upon Executive and ABM.

	 	v.	 	Except as may otherwise be determined by the CEO Committee in
the event of extraordinary circumstances affecting the financial performance of
the Company, no Bonus for any Fiscal Year of ABM shall be payable unless ABM’s
EPS for the Fiscal Year then ending is equal to or greater than 80% of ABM’s
EPS for the previous Fiscal Year of ABM. Notwithstanding the above, no
determination by the Committee to pay Executive a Bonus pursuant to this
Paragraph shall result in the nondeductibility of any portion of such Bonus
under Section 162(m).

	 	vi.	 	Notwithstanding any other provision of this Agreement, the CEO
Committee may, no later than 90 days after the beginning of any Fiscal Year
(but in no event later than the date required for the Bonus to qualify as
performance-based compensation within the meaning of Section 162(m)), approve
and notify the Executive of a modification to the Target Bonus or the bonus
range set forth in subparagraph (i) above. The CEO Committee’s decision in
this regard shall be deemed final and binding on Executive. In addition, the
CEO Committee may grant a discretionary incentive bonus to Executive at any
time in its sole discretion.

	 	C.	 	FRINGE BENEFITS. Executive shall receive the then current fringe benefits
generally provided by ABM to its executives. Such benefits may include but not

 

5

 

be limited to the use of an ABM-leased car or a car allowance, group health
benefits, long-term disability benefits, group life insurance, sick leave and
vacation. Each of these fringe benefits is subject to the applicable ABM policy at
all times. Executive expressly agrees that should he terminate employment with ABM
for the purpose of being re-employed by an ABM subsidiary or affiliate, he shall
“carry-over” any previously accrued but unused vacation balance to the books of the
affiliate. ABM reserves the right to add, increase, reduce or eliminate any fringe
benefit at any time, but no such benefit or benefits shall be reduced or eliminated
as to Executive unless generally reduced or eliminated as to senior executives at
ABM.

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

	8.	 	PAYMENT OR REIMBURSEMENT OF BUSINESS EXPENSES. ABM shall pay directly or reimburse Executive
for reasonable business expenses of ABM incurred by Executive in connection with ABM business
in accordance with the ABM Travel & Entertainment Policy, in effect from time to time.

	9.	 	BUSINESS CONDUCT. Executive shall dedicate his full business time and attention to the
performance of duties hereunder, perform his duties in good faith and to a professional
standard, and fully comply with all laws and regulations pertaining to the performance of this
Agreement, all ethical rules, and ABM’s Code of Business Conduct, as well as any and all of
policies, procedures and instructions of Company including but not limited to the provisions
of Section 304 of the Sarbanes-Oxley Act of 2002. Executive agrees that if he is approached
by any person to discuss a possible acquisition or other transaction that could reasonably
result in a change of control of ABM, Executive will immediately advise ABM’s General Counsel
and Chairman of the Board.

	10.	 	NO CONFLICT. Executive represents to ABM that Executive is not bound by any contract with a
previous employer or with any other business that might prevent Executive from entering into
this Agreement. Executive further represents that he is not bound by any other contracts or
covenants that in any way restrict or limit Executive’s activities in relation to his or her
employment with ABM that have not been fully disclosed to ABM prior to the signing of this
Agreement.

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

 

6

 

may include, but shall not be limited to, customer lists, financial statements, cost data,
price lists, invoices, forms, electronic files and media, mailing lists, contracts, reports,
manuals, personnel files or directories, correspondence, business cards, copies or notes
made from Company documents and documents compiled or prepared by Executive for Executive’s
use in connection with Company business. Executive specifically acknowledges that all such
items, including passwords and documents, are the property of the Company, notwithstanding
their preparation, care, custody, control or possession by Executive at any time(s)
whatsoever.

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

	 	A.	 	PROPRIETARY INFORMATION. Executive agrees to utilize and further the Company’s
goodwill among its customers, sales prospects and employees, and acknowledges that the
Company may disclose to Executive and Executive may disclose to the Company Proprietary
Information (as hereinafter defined).

	 	B.	 	DUTY OF LOYALTY. Executive agrees that the Proprietary Information and the
Company’s goodwill have unique value to the Company, are not generally known or readily
available to the Company’s competitors, and could only be developed by others after
investing significant time and money. ABM makes the Proprietary Information and the
Company’s goodwill available to Executive in reliance on Executive’s agreement to hold
the Proprietary Information and the Company’s goodwill in trust and confidence.
Executive hereby acknowledges that to use this Proprietary Information and the
Company’s goodwill other than for the benefit of the Company would be a breach of such
trust and confidence and a violation of Executive’s duty of loyalty to the Company.

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

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

 

7

 

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

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

	 	C.	 	NON-SOLICITATION OF CUSTOMERS. Executive agrees that during and for one year
following the termination of Executive’s employment with ABM (whether such termination
is voluntary or involuntary), Executive shall not, directly or indirectly, for the
benefit of any person or entity other than the Company, seek, solicit, divert, take
away, obtain or accept work from any

 

8

 

customer or prospective customer of the Company. In addition, Executive agrees that
at all times after the voluntary or involuntary termination of Executive’s
employment, Executive shall not seek, solicit, divert, take away, obtain, or accept
work from any customer or sales prospect of Company or any other Company-affiliated
entity through the direct or indirect use of any Proprietary Information or by any
other unfair or unlawful business practice.

	 	D.	 	POST EMPLOYMENT COMPETITION. Executive agrees that while employed by ABM and,
to the fullest extent allowed by law, for a period of one year following Executive’s
termination of employment (whether such termination is voluntary or involuntary),
Executive shall not engage in any business activity which competes directly or
indirectly with the Company or the operations of any Company-affiliated entity. The
Executive acknowledges that the Company is engaged in business in various states
throughout the U.S. and that the Company intends to expand the geographic scope of its
activities. Accordingly and in view of the nature of Executive’s position and
responsibilities, the Executive agrees that the provisions of this Paragraph shall be
applicable to each state and each foreign country in which the Company may be engaged
in business within the twelve-month period preceding the effective date of Executive’s
termination of employment.

	 	E.	 	NON-DISPARAGEMENT. During Executive’s employment with ABM and thereafter,
Executive agrees not to make any statement or take any action which disparages,
defames, or places in a negative light Company, Company-affiliated entities, or its or
their reputation, goodwill, commercial interests or past and present officers,
directors and employees.

	 	F.	 	COOPERATION WITH LEGAL MATTERS IN SUPPORT OF COMPANY. During Executive’s
employment with ABM and thereafter, Executive shall cooperate with Company and any
Company-affiliated entity in its or their investigation, defense or prosecution of any
potential, current or future legal matter in any forum, including but not limited to
lawsuits, administrative charges, audits, arbitrations, and internal and external
investigations. Executive’s cooperation shall include, but is not limited to,
reviewing and preparing documents and reports, meeting with attorneys representing
Company or any Company-affiliated entity, providing truthful testimony, and
communicating Executive’s knowledge of relevant facts to any attorneys, experts,
consultants, investigators, employees or other representatives working on behalf of
Company or any Company-affiliated entity. Except as required by law, Executive agrees
to treat all information regarding any such actual or potential investigation or claim
as confidential. Executive also agrees not to discuss or assist in any litigation,
potential litigation, claim, or potential claim with any individual (or their attorney
or investigator) who is pursuing, or considering pursuing, any claims against Company
or any Company-affiliated entity unless required by law. In performing the tasks
outlined in this Paragraph, Executive shall be bound by the covenants of good faith and
veracity set forth in ABM’s Code of Business Conduct and Ethics

 

9

 

and by all legal obligations. Nothing herein is intended to prevent Executive from
complying in good faith with any subpoena or other affirmative legal obligation.
Executive agrees to notify Company immediately in the event there is a request for
information or inquiry pertaining to Company, any Company-affiliated entity, or
Executive’s knowledge of or employment with the Company. In performing
responsibilities under this Paragraph at the request or for the benefit of the
Company, Executive shall be compensated for Executive’s time at an hourly rate of
$400 per hour. However, during any period in which Executive is an employee of ABM
or is receiving payments pursuant to Paragraph 15 of this Agreement or pursuant to
the terms of any Other Severance Agreement (as hereinafter defined), Executive shall
not be so compensated.

	 	G.	 	REMEDIES AND DAMAGES. The parties agree that compliance with Paragraph 13 of
the Agreement is necessary to protect the business and goodwill of Company, that the
restrictions contained herein are reasonable and that any breach of this Paragraph will
result in irreparable and continuing harm to Company, for which monetary damages may
not provide adequate relief. Accordingly, in the event of any actual or threatened
breach of this Paragraph by Executive, Company and Executive agree that Company shall
be entitled to all appropriate remedies, including temporary restraining orders and
injunctions enjoining or restraining such actual or threatened breach. Executive
hereby consents to the issuance thereof forthwith by any court of competent
jurisdiction.

	 	H.	 	LIMITATIONS. Nothing in this Agreement shall be binding upon the parties to
the extent it is void or unenforceable for any reason in the State of Employment,
including, without limitation, as a result of any law regulating competition or
proscribing unlawful business practices.

	14.	 	EXTENSION OF EMPLOYMENT.

	 	A.	 	RENEWAL. Absent at least 90 days written notice of termination of employment
or notice of non-renewal from ABM to Executive prior to expiration of the then current
Initial or Extended Term, as applicable, of this Agreement, employment hereunder shall
continue for an Extended Term (or another Extended Term, as applicable) of one year.

	 	B.	 	NOTICE OF NON-RENEWAL. In the event that notice of non-renewal is given at
least 90 days prior to the expiration of the then Initial or Extended Term, as
applicable, of this Agreement, employment shall continue on an “at will” basis
following the expiration of such Initial or Extended Term. In such event, ABM shall
have the right to terminate Executive’s employment or to change the terms and
conditions of Executive’s employment, including but not limited to Executive’s position
and/or compensation. For the avoidance of doubt, Executive will not be entitled to
receive any payments under this Agreement or any policy or plan of the Company as in
effect from time to time that provides for payment of

 

10

 

amounts on termination of employment, by reason of the Company electing not to renew
this Agreement.

	15.	 	TERMINATION OF EMPLOYMENT.

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

	 	B.	 	TERMINATION FOR CAUSE. ABM may terminate Executive’s employment hereunder at
any time during the then current Initial or Extended Term, as applicable, of this
Agreement, without notice, subject only to a good faith determination by a majority of
the Board of Just Cause. Upon such termination, Executive shall not be entitled to any
payments under this Agreement other than the Accrued Compensation.

	 	C.	 	VOLUNTARY TERMINATION BY EXECUTIVE. At any time during the Initial or then
current Extended Term, as applicable, of this Agreement and with or without Just Cause,
Executive may terminate employment hereunder by giving ABM 90 days’ prior written
notice, and Executive shall not be entitled to any payments under this Agreement other
than Accrued Compensation and those payments provided under Paragraph 7D.

	 	D.	 	DISABILITY OR DEATH. Employment hereunder shall automatically terminate upon
the Total Disability or death of Executive. ABM shall pay when due to Executive or,
upon death, Executive’s designated beneficiary or estate, as applicable, (i) the
Accrued Compensation, and (ii) a prorated portion of the Bonus for the fraction of the
Fiscal Year that has been completed through the end of the month in which death or
Total Disability occurs, based on the Company’s actual performance for the entire
Fiscal Year, such prorated portion to be paid at the

 

11

 

time set forth in Paragraph 7B(iii). Upon such termination, Executive shall not be
entitled to any other payments under this Agreement other than those provided under
Paragraph 7D.

	 	E.	 	TERMINATION WITHOUT CAUSE. ABM may terminate Executive’s employment hereunder
without Just Cause at any time during the Initial or then current Extended Term of this
Agreement, as applicable, by giving Executive 90 days written notice. Upon such
termination without Just Cause, in addition to the Accrued Compensation, Executive
shall be entitled to receive two times the sum of Executive’s Base Salary and Target
Bonus payable, subject to Paragraph 16 of this Agreement, in equal installments in
accordance with the Company’s normal payroll practice over the twenty-four month period
following Executive’s termination of employment. Upon such termination, Executive
shall not be entitled to any other payments under this Agreement other than those
provided under Paragraph 7D.

	 	F.	 	OTHER OBLIGATIONS. A termination of employment pursuant to Paragraph 15 of
this Agreement will not affect any rights that Executive may have pursuant to any
agreement, policy, plan, program or arrangement of the Company or Subsidiary providing
employee benefits, which rights will be governed by the terms thereof. To the extent
that Executive receives payments or benefits by reason of his termination of employment
pursuant to any other severance agreement or employee plan (collectively, “Other
Severance Agreements”), the amounts otherwise receivable under Paragraph 15 will be
reduced by the amounts actually paid pursuant to the Other Severance Agreements, but
not below zero, to avoid duplication of payments so that the total amount payable or
value of benefits receivable hereunder and under the Other Severance Agreements is not
any more or less than the amounts so payable or value so receivable had such benefits
been paid in full hereunder.

	 	G.	 	PAYMENTS AND BENEFITS WITH RESPECT TO A CHANGE IN CONTROL. Notwithstanding
anything to the contrary in this Agreement or otherwise, if Executive employment is
terminated during the “Severance Period” (as defined in the Change-in-Control Agreement
entered into between Executive and the Company on December 30, 2008, as amended from
time to time), Executive shall not be entitled to payments and benefits under Paragraph
15 of this Agreement and, alternatively, Executive’s entitlement to payments and
benefits, if any, shall be governed by the terms of such Severance Agreement.

	 	H.	 	ACTIONS UPON TERMINATION. Upon termination of employment hereunder, Executive
shall immediately resign as an officer and/or director of Company and of any Company
subsidiaries or affiliates, as applicable. Executive shall promptly return and release
all Company property in Executive’s possession to Company, including but not limited
to, any motor vehicles, equipment, supplies, passwords and documents set forth in
Paragraph 11 of this Agreement.

 

12

 

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

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

 
	18.	 	REMEDIES & DAMAGES.

	 	A.	 	INJUNCTIVE RELIEF. The parties agree that compliance with Paragraphs 12 and 13
of this Agreement is necessary to protect the business and goodwill of the Company, and
that any breach of such Paragraphs will result in irreparable and continuing harm to
Company, for which monetary damages may not provide adequate relief. Accordingly, in
the event of any actual or threatened breach of Paragraphs 12 and 13 of this Agreement
by Executive, ABM and Executive agree that ABM shall be entitled to all appropriate
remedies, including temporary restraining orders and injunctions enjoining or
restraining such actual or threatened breach. Executive hereby consents to the
issuance thereof forthwith by any court of competent jurisdiction.

	 	B.	 	WITHHOLDING AUTHORIZATION. To the fullest extent permitted under the laws of
the State of Employment hereunder, Executive authorizes ABM to withhold from any
severance payments otherwise due to Executive and from any other funds held for
Executive’s benefit by ABM, any damages or losses

 

13

 

sustained by Company as a result of any material breach or other material violation
of this Agreement by Executive, pending resolution of the underlying dispute.

	19.	 	NO WAIVER. Failure by either party to enforce any term or condition of this Agreement at any
time shall not preclude that party from enforcing that provision, or any other provision of
this Agreement, at any later time.

	20.	 	SEVERABILITY. The provisions of this Agreement are severable. If any arbitrator (or court
as applicable hereunder) rules that any portion of this Agreement is invalid or unenforceable,
the arbitrator’s or court’s ruling shall not affect the validity and enforceability of other
provisions of this Agreement. It is the intent of the parties that if any provision of this
Agreement is ruled to be overly broad, the arbitrator or court shall interpret such provision
with as much permissible breadth as is allowable under law rather than consider such provision
void.

	21.	 	SURVIVAL. All terms and conditions of this Agreement which by reasonable implication are
meant to survive the termination of this Agreement, including but not limited to the
provisions of Paragraph 13 of this Agreement, shall remain in full force and effect after the
termination of this Agreement.

	22.	 	REPRESENTATIONS. Executive represents and agrees that he has carefully read and fully
understands all of the provisions of this Agreement, that he is voluntarily entering into this
Agreement and has been given an opportunity to review all aspects of this Agreement with an
attorney, if he chooses to do so.

	23.	 	NOTICES.

	 	A.	 	ADDRESSES. Any notice required or permitted to be given pursuant to this
Agreement shall be in writing and delivered in person, or sent prepaid by certified
mail, bonded messenger or overnight express, to the party named at the address set
forth below or at such other address as either party may hereafter designate in writing
to the other party:

	 	 	 
	Executive:

	 	Henrik C. Slipsager
	 

	 	[Redacted]
	 
	 	 
	ABM:

	 	ABM Industries Incorporated
	 

	 	551 Fifth Avenue
	 

	 	New York, New York 10176
	 

	 	Attention: Board of Directors
	 
	 	 
	Copy:

	 	ABM Industries Incorporated
	 

	 	551 Fifth Avenue

 

14

 

	 	 	 
	 

	 	New York, New York 10176
	 

	 	Attention: General Counsel

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

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

	 	A.	 	NO EXTERNAL EVIDENCE. The parties intend that this Agreement speak for itself,
and that no evidence with respect to its terms and conditions other than this Agreement
itself may be introduced in any arbitration or judicial proceeding to interpret or
enforce this Agreement.

	 	B.	 	SUPERSEDES OTHER AGREEMENTS. It is specifically understood and accepted that
this Agreement supersedes all oral and written employment agreements between Executive
and ABM prior to the date of this Agreement as well as all conflicting provisions of
Company’s Human Resources Manual, including but not limited to the termination,
discipline and discharge provisions contained therein.

	 	C.	 	AMENDMENTS. This Agreement may not be amended except in a writing approved by
the Board and signed by the Executive and the Chair of the Compensation Committee.

[Remainder of this page is intentionally left blank]

 

15

 

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

Executive: Henrik C. Slipsager

	 	 	 	 	 	 	 	 	 
	 

	 	Signature:	 	/s/ Henrik C. Slipsager	 	 	 	 
	 

	 	 	 	 

	 	 	 	 
	 

	 	Date:
	 	December 16, 2009	 	 	 	 

ABM: ABM Industries Incorporated

	 	 	 	 	 	 	 	 	 
	 

	 	Signature:	 	/s/ Linda Chavez	 	 	 	 
	 

	 	 	 	 

	 	 	 	 
	 	 	Title:	 	Chair of the Compensation Committee of the	 	 
	 	 	 	 	Board of Directors	 	 
	 
	 	 	Date:	 	December 16, 2009	 	 

 

16

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