Document:

Exhibit 10.9

 

FORM OF
RESTRICTED STOCK UNIT AGREEMENT

 

UNDER THE
MAC-GRAY CORPORATION

2009
STOCK OPTION AND INCENTIVE PLAN

 

Name
of Grantee:

No. of
Restricted Stock Units Granted:

Grant
Date:

Final
Acceptance Date:

 

Pursuant to the Mac-Gray Corporation 2009 Stock Option and Incentive
Plan as amended through the date hereof (the “Plan”), Mac-Gray Corporation (the
“Company”) hereby grants a deferred stock award consisting of the number of
Restricted Stock Units listed above (an “Award”) to the Grantee named above.  Each Restricted Stock Unit shall relate to
one share of Common Stock, par value $0.01 per share (the “Stock”) of the
Company specified above, subject to the restrictions and conditions set forth
herein and in the Plan.

 

1.                                       Acceptance of Award. 
The Grantee shall have no rights with respect to this Award unless he or
she shall have accepted this Award prior to the close of business on the Final
Acceptance Date specified above by signing and delivering to the Company a copy
of this Award Agreement.  Any
consideration due to the Company on the issuance of the Award has been deemed
to be satisfied by past services rendered by the Grantee to the Company.

 

2.                                       Restrictions on Transfer of Award.

 

(a)                                  The Award may not be sold, transferred,
pledged, assigned or otherwise encumbered or disposed of by the Grantee until (i) the
Restricted Stock Units have vested as provided in Section 3 of this
Agreement and (ii) shares of Stock have been issued to the Grantee.

 

(b)                                 If the Grantee’s employment with the
Company and its Subsidiaries is voluntarily or involuntarily terminated for any
reason prior to the satisfaction of the vesting conditions set forth in Section 3
below, any Restricted Stock Units that have not vested as of such date shall
automatically and without notice terminate, be forfeited and be and become null
and void, and neither the Grantee nor any of his or her successors, heirs,
assigns, or personal representatives will thereafter have any further rights or
interests in such unvested Restricted Stock Units.

 

3.                                       Vesting of Restricted Stock Units. 
The Restricted Stock Units shall vest in accordance with the schedule
set forth below, provided in each case that the Grantee is then, and since the
Grant Date has continuously been, employed by the Company or its Subsidiaries.

 

	
  Incremental (Aggregate)

  Number of

  Restricted Stock Units Vested

  	
   

  	
  Vesting Date

  
	
                  
  (       %)

  	
   

  	
   

  
	
                  
  (       %)

  	
   

  	
   

  
	
                  
  (       %)

  	
   

  	
   

  

 

 

The Administrator may at any
time accelerate the vesting schedule specified in this Paragraph 3.  Notwithstanding the foregoing, the Grantee
shall become vested in the Restricted Stock Units prior to the Vesting Date set
forth above in the following circumstances:

 

(a)                                  In the event
the Grantee’s employment terminates on account of death or disability, all
Restricted Stock Units that have not previously been forfeited shall
immediately vest; or

 

(b)                                 In the event
the Grantee attains the age of sixty (60) years and retires from the Company
having had five (5) consecutive years of service to the Company.

 

4.                                       Dividend Equivalents.

 

(a)                                  If on any date the Company shall pay any
dividend on shares of Stock of the Company, the number of Restricted Stock
Units credited to the Grantee shall, as of such date, be increased by an amount
determined by the following formula:

 

W = (X multiplied by Y) divided by Z, where:

 

W = the number of additional Restricted Stock Units to be credited to
the Grantee on such dividend payment date;

 

X = the aggregate number of Restricted Stock Units (whether vested or
unvested) credited to the Grantee as of the record date of the dividend;

 

Y = the cash dividend per share amount; and

 

Z = the Fair Market Value per share of Stock (as determined under the
Plan) on the dividend payment date.

 

(b)                                 In the case of a dividend paid on Stock
in the form of Stock, including without limitation a distribution of Stock by
reason of a stock dividend, stock split or otherwise, the number of Restricted
Stock Units credited to the Grantee shall be increased by a number equal to the
product of (i) the aggregate number of Restricted Stock Units that have
been awarded to the Grantee through the related dividend record date, and (ii) the
number of shares of Stock (including any fraction thereof) payable as dividend
on one share of Stock.  Any additional
Restricted Stock Units shall be subject to the vesting and restrictions of this
Agreement in the same manner and for so long as the Restricted Stock Units
granted pursuant to this Agreement to which they relate remain subject to such
vesting and restrictions, and shall be promptly forfeited to the Company if and
when such Restricted Stock Units are so forfeited.

 

5.                                       Receipt of Shares of Stock.

 

(a)                                  As soon as practicable following each
Vesting Date, the Company shall issue to the Grantee the number of shares of
Stock equal to the aggregate number of Restricted Stock Units credited to the
Grantee that have vested pursuant to Section 3 of this Agreement on

 

2

 

such
date and the Grantee shall thereafter have all the rights of a stockholder of
the Company with respect to such shares, including voting and dividend rights,
and such shares of Stock shall not be restricted by the provisions hereof.

 

(b)                                 Upon a Sale Event, the Company shall issue
to the Grantee the number of shares of Stock equal to the aggregate number of
Restricted Stock Units credited to the Grantee on such date in full
satisfaction of such Restricted Stock Units; provided, however, that in the
event the Company is involved in a transaction in which shares of Stock will be
exchanged for cash or other consideration, the Grantee shall receive cash or
other consideration equal in value to the aggregate number of Restricted Stock
Units credited to the Grantee on the date of the Sale Event.

 

6.                                       Incorporation of Plan. 
Notwithstanding anything herein to the contrary, this Agreement shall be
subject to and governed by all the terms and conditions of the Plan, including
the powers of the Administrator set forth in Section 2(b) of the
Plan.  Capitalized terms in this
Agreement shall have the meaning specified in the Plan, unless a different
meaning is specified herein.

 

7.                                       Tax Withholding. 
The Grantee shall, not later than the date as of which the receipt of
this Award becomes a taxable event for Federal income tax purposes, pay to the
Company or make arrangements satisfactory to the Administrator for payment of
any Federal, state, and local taxes required by law to be withheld on account
of such taxable event.  The Grantee may
elect to have such minimum tax withholding obligation satisfied, in whole or in
part, by authorizing the Company to withhold from shares of Stock to be issued
a number of shares of Stock with an aggregate Fair Market Value that would
satisfy the withholding amount due.

 

8.                                       No Obligation to Continue Employment. 
Neither the Company nor any Subsidiary is obligated by or as a result of
the Plan or this Agreement to continue the Grantee in employment and neither
the Plan nor this Agreement shall interfere in any way with the right of the
Company or any Subsidiary to terminate the employment of the Grantee at any
time.

 

9.                                       Notices.  Notices
hereunder shall be mailed or delivered to the Company at its principal place of
business and shall be mailed or delivered to the Grantee at the address on file
with the Company or, in either case, at such other address as one party may
subsequently furnish to the other party in writing.

 

	
   

  	
  MAC-GRAY
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

3

 

The foregoing Agreement is hereby accepted and the
terms and conditions thereof hereby agreed to by the undersigned.

 

 

	
   

  	
   

  
	
   

  	
  Grantee’s
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Grantee’s name:

  
	
   

  	
   

  
	
   

  	
   

  

 

4Exhibit 10.10

 

MAC-GRAY CORPORATION

NON-EMPLOYEE DIRECTOR COMPENSATION POLICY

 

The
following summarizes the compensation arrangements established between Mac-Gray
Corporation (the “Company”) and its directors to be effective as of July 1,
2009:

 

Directors
who are also employees of the Company do not receive compensation for their
services on the Board or any committee thereof. 
Each director who is not an employee of the Company receives:

 

·                  An annual fee
of $30,000, paid in quarterly installments, 50% of which is paid in shares of
common stock and the balance of which, at the discretion of the director, is
paid in cash, shares of common stock or any combination thereof; and

·                  An additional fee
of $1,600 for each Board meeting attended in person and $500 per meeting
attended by teleconference.

 

Committee
members receive $1,600 per meeting of the Compensation Committee, the Audit
Committee and the Governance and Nominating Committee.  Committee members receive $300 per meeting
attended by teleconference.  In addition,
the Chairman of each of the Compensation Committee, the Audit Committee and the
Governance and Nominating Committee is paid an $8,000 annual retainer, paid
semi-annually in July and January.  The independent Board Chairman shall receive a
$40,000 annual retainer, paid quarterly. 
The independent Board Chairman may elect, on an annual basis, to receive
0% to 100% of the retainer in shares of the Company’s common stock.

 

The
shares of the Company’s common stock that a director elects to receive in lieu
of cash fees will be valued based on the fair market value of the common stock
on the date of issuance.

 

Each
newly elected non-employee director receives an option to purchase 5,000 shares
of common stock on the fifth business day after his or her election to the
Board, and each non-employee director who is serving as a director on the fifth
business day after each annual meeting of stockholders automatically receives
an option to purchase shares of common stock valued at $60,000 based on the
Black-Scholes option-pricing model.  All
of such options granted to non-employee directors become fully exercisable as
of May 1 of the year following the date of grant, have an exercise price
equal to the fair market value of the common stock on the date of the grant,
and terminate upon the tenth anniversary of the date of grant.  All directors are reimbursed for significant
travel expenses, if any, incurred in attending meetings of the Board and its
committees.

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