EXHIBIT 10.1
AMENDMENT NO. 1
TO
AMENDED AND RESTATED CREDIT AGREEMENT
     THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT (“Amendment”)
is entered into as of May 30 2007, in connection with the Amended and Restated
Credit Agreement dated as of August 31, 2005 (as amended, restated or otherwise
modified from time to time, the “Credit Agreement”) by and among G&K Services,
Inc. (the “Domestic Borrower”), G&K Services Canada Inc. (the “Canadian
Borrower”, and together with the Domestic Borrower, the “Borrowers”), the
financial institutions party thereto, as lenders (the “Lenders”), and JPMorgan
Chase Bank, National Association, as Administrative Agent (the “Administrative
Agent”). Each capitalized term used herein and not defined herein shall have the
meaning ascribed thereto in the Credit Agreement.
WITNESSETH
     WHEREAS, the Borrowers wish to amend the Credit Agreement in certain
respects and the Lenders and the Administrative Agent are willing to amend the
Credit Agreement pursuant to the terms of this Amendment;
     NOW, THEREFORE, in consideration of the premises set forth above, the terms
and conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Borrowers, the
Lenders and the Administrative Agent agree as follows.
     1. Amendments to Credit Agreement. Subject to the satisfaction of the
conditions precedent set forth in Section 2 below, the Borrowers, the Lenders
and the Administrative Agent agree that the Credit Agreement is hereby amended
as follows:
     1.1 Section 10.3 of the Credit Agreement is hereby amended in its entirety
as follows:
     Section 10.3 Net Worth. At any time, permit Net Worth to be less than the
sum of (a) $278,057,000 plus (b) thirty-five percent (35%) of Net Income (if
positive) for each fiscal year ending on or after June 29, 2007.
     1.2 Section 11.6(c) of the Credit Agreement is hereby amended in its
entirety as follows:
     (c) the Domestic Borrower may pay cash dividends on its capital stock or
repurchase its capital stock at any time so long as no Default or Event of
Default is then outstanding or would result therefrom.

 

--------------------------------------------------------------------------------

 

     2. Conditions to Effectiveness. This Amendment shall not become effective
unless:
     2.1 the Administrative Agent shall have received counterparts of this
Amendment executed by each Borrower, the Administrative Agent and the Required
Lenders;
     2.2 the Administrative Agent shall have received an Affirmation of
Guarantees in substantially the form attached hereto as Exhibit A.
     3. Representations and Warranties of Each Borrower. Each Borrower
represents and warrants as follows:
     3.1 Such Borrower has the legal power and authority to execute and deliver
this Amendment and the officers of such Borrower executing this Amendment have
been duly authorized to execute and deliver the same and bind such Borrower with
respect to the provisions hereof.
     3.2 This Amendment and the Credit Agreement as previously executed and as
amended hereby constitute legal, valid and binding obligations of such Borrower,
enforceable against it in accordance with their terms (except as enforceability
may be limited by bankruptcy, insolvency or similar laws affecting the
enforcement of creditor’s rights generally).
     3.3 Such Borrower hereby reaffirms all covenants, representations and
warranties made in the Credit Agreement and the other Loan Documents and agrees
and confirms that all such representations and warranties are true and correct
in all material respects as of the date of this Amendment except for changes
thereto reflecting events, conditions or transactions permitted or not
prohibited by the Credit Agreement or the other Loan Documents; provided, that
the words “in all material respects” in this Section 3.3 shall, as to any
representation or warranty that contains a materiality standard, operate without
duplication of such standard.
     3.4 Such Borrower has caused to be conducted a thorough review of the terms
of the Credit Agreement and the other Loan Documents and such Borrower’s and its
Subsidiaries’ operations since the Closing Date and, as of the date hereof,
there are no Defaults or Events of Default thereunder.
     4. Reference to the Effect on the Credit Agreement.
     4.1 Upon the effectiveness of this Amendment pursuant to Section 2 above,
on and after the date hereof, each reference in the Credit Agreement to “this
Credit Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall
mean and be a reference to the Credit Agreement as modified hereby.
     4.2 Except as specifically waived or modified above, the Credit Agreement
and all other documents, instruments and agreements executed and/or delivered in
connection therewith, shall remain in full force and effect, and are hereby
ratified and confirmed.

2

--------------------------------------------------------------------------------

 

     4.3 The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power of
remedy of the Administrative Agent or the Lenders, nor constitute a waiver of
any provision of the Credit Agreement or any other documents, instruments and
agreements executed and/or delivered in connection therewith.
     5. Costs and Expenses. The Borrowers jointly and severally agree to pay all
reasonable costs, fees and out-of-pocket expenses (including reasonable
attorneys’ fees and expenses charged to the Administrative Agent) incurred by
the Administrative Agent in connection with the preparation, arrangement,
execution and enforcement of this Amendment.
     6. Governing Law. THIS AMENDMENT SHALL BE GOVERNED IN ACCORDANCE WITH THE
INTERNAL LAWS, AS OPPOSED TO THE CONFLICTS OF LAW PROVISIONS, OF THE STATE OF
NEW YORK.
     7. Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.
     8. Counterparts. This Amendment may be executed in any number of
counterparts, all of which taken together shall constitute one agreement, and
any of the parties hereto may execute this Amendment by signing any such
counterpart. A facsimile signature page hereto sent to the Administrative Agent
or the Administrative Agent’s counsel shall be effective as a counterpart
signature provided each party executing such a facsimile counterpart agrees, if
requested, to deliver originals thereof to the Administrative Agent.
     9. No Strict Construction. The parties hereto have participated jointly in
the negotiation and drafting of this Amendment, the Credit Agreement and the
other Loan Documents. In the event an ambiguity or question of intent or
interpretation arises, this Amendment, the Credit Agreement and the other Loan
Documents shall be construed as if drafted jointly by the parties hereto and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Amendment, the Credit
Agreement or any of the other Loan Documents.
The remainder of this page is intentionally blank.

3

--------------------------------------------------------------------------------

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed under seal by their duly authorized officers, all as of the day and
year first written above.

            DOMESTIC BORROWER:

G&K SERVICES, INC., as Domestic Borrower
      By /s/ Glenn L. Stolt       Name:   Glenn L. Stolt      Title:   Vice
President and Treasurer     

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

            CANADIAN BORROWER:

G&K SERVICES CANADA INC., as Canadian Borrower
      By /s/ Glenn L. Stolt       Name:   Glenn L. Stolt      Title:   Vice
President and Treasurer     

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

            JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as Administrative Agent
and Lender
      By /s/ Suzanne Ergastolo       Name:   Suzanne Ergastolo      Title:  
Vice President     

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

            WELLS FARGO BANK, NATIONAL ASSOCIATION, as Syndication Agent and
Lender
      By /s/ Michael J. McGroarty       Name:   Michael J. McGroarty     
Title:   Vice President     

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

            BANK OF AMERICA, N.A.,
as Lender
      By /s/ Charles R. Dickerson       Name:   Charles R. Dickerson     
Title:   Managing Director     

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

            HARRIS, N.A., as Lender
      By /s/ Kathleen Collins       Name:  Kathleen Collins   Title:  Director  
   

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

            SUNTRUST BANK, as Lender
      By /s/ William Humphries       Name:   William Humphries      Title:  
Managing Director     

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

            BANK OF TOKYO-MITSUBISHI, LTD.,
Chicago Branch, as Lender
      By /s/ Matthew A. Ross       Name:   Matthew A. Ross      Title:   Vice
President and Treasurer     

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

            U.S. BANK NATIONAL ASSOCIATION,
as Lender
      By /s/ Peter I. Bystol       Name:  Peter I. Bystol   Title:  Assistant
Vice President  

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

            COMERICA BANK, as Lender
      By /s/ Timothy O’Rourke       Name:   Timothy O’Rourke      Title:   Vice
President     

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

            THE NORTHERN TRUST COMPANY, as Lender
      By       Name:         Title:        

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

            REGIONS BANK,
as Lender
      By /s/ Jay Ingram       Name:   Jay Ingram      Title:   Vice President   
 

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

            WACHOVIA BANK, NATIONAL ASSOCIATION, as Lender
      By: /s/ John G. Taylor         Name:  John G. Taylor     Title:  Director
 

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

            BANK HAPOALIM B.M., as Lender
      By:   /s/ Marc Bosc         Name:   Marc Bosc        Title:   Vice
President     

                  By:   /s/ Lenroy Hackett         Name:   Lenroy Hackett       
Title:   First Vice President     

Signature Page to
Amendment No. 1 to Amended and Restated Credit Agreement

 

--------------------------------------------------------------------------------

 

EXHIBIT A
AFFIRMATION OF GUARANTEES
[Filed separately]