Document:

exv10wm

EXHIBIT 10(M)

G&K SERVICES, INC.

2006 EQUITY INCENTIVE PLAN

TERMS OF NON-QUALIFIED

EMPLOYEE STOCK OPTION

Pursuant to a letter (the “Grant Letter”) addressed and delivered to you from G&K Services,
Inc. (the “Company”), and subject to your acceptance in accordance with paragraph 1 below,
the Compensation Committee (the “Committee”) of the Company’s Board of Directors has
granted you a non-qualified stock option (the “Option”) pursuant to the terms of the G&K
Services, Inc. 2006 Equity Incentive Plan (the “Plan”). A copy of the Plan is enclosed
herewith. The terms of your Option are governed by the provisions of the Plan generally and the
specific terms set forth below. Your Grant Letter and this statement of terms are your Award
Agreement under the Plan. In the event of any conflict or inconsistency between the terms set forth
below and the provisions of the Plan, the provisions of the Plan shall govern and control.

	1.	 	Number of Shares Subject to the Option. Upon your acceptance of the Option, the
Option entitles you to purchase all or any part of the aggregate number of shares of Class A
Common Stock of the Company (the “Common Stock”) set forth in the Grant Letter as “G&K
Stock Option shares,” in accordance with the Plan. You may accept the Option by logging into
your account at http://www.melloninvestor.com and selecting the ‘Acknowledge Grant’ button
associated with your grant.
	 
	2.	 	Purchase Price. The purchase price of each share of Common Stock covered by the
Option shall be the “Exercise Price” set forth in the Grant Letter.
	 
	3.	 	Exercise and Vesting of Option. The Option is exercisable only to the extent that
all, or any portion thereof, has vested. Except as provided in paragraph 4 below, the Option
shall vest in three (3) equal installments, such installments to begin on the first
anniversary of the “Grant Date” set forth in the in the Grant Letter and continuing on
each of the next two anniversaries thereof (each individually, a “Vesting Date”) until
the Option is fully vested. In the event that you cease to be an employee of the Company
prior to any Vesting Date, that portion of the Option scheduled to vest on such Vesting Date,
and all portions of the Option scheduled to vest in the future, shall not vest and all rights
to and under such non-vested portions of the Option will terminate.
	 
	4.	 	Term of Option.

	 	(a)	 	To the extent vested, and except as otherwise provided herein or in the
Plan, no Option is exercisable after the expiration of ten (10) years from the
Grant Date (such date to be hereinafter referred to as the “Expiration
Date”).

 

 

	 	(b)	 	In the event your employment is terminated for any reason other than
death or disability (other than for cause or voluntary on your part and without
written consent of the Company), the Option shall be exercisable by you (to the
extent that you shall have been entitled to do so at the termination of your
employment) at any time within three (3) months after such termination of
employment, but in no event later than the Expiration Date. In the event of any
termination of your employment that is either (i) for cause or (ii) voluntary on
your part and without the written consent of the Company, the Option, to the extent
not theretofore exercised, shall forthwith terminate.
	 
	 	(c)	 	In the event of your death while you are an employee of the Company or
any of its subsidiaries or within three (3) months after termination of employment
(other than for cause or voluntary on your part and without written consent of the
Company), the Option may be exercised (to the extent that you shall have been
entitled to do so at the date of death) by the person to whom the Option is
transferred by will or the applicable laws of descent and distribution at any time
within twelve (12) months after the date of death, but in no event later than the
Expiration Date.
	 
	 	(d)	 	In the event your employment is terminated by the Company as a result
of a disability, the Option shall be exercisable by you (to the extent that you
shall have been entitled to do so at the termination of your employment) at any
time within twelve (12) months after such termination of employment, but in no
event later than the Expiration Date. For purposes of this Option, you will be
considered to have a “disability” if you have physical, mental or emotional
limits caused by a current sickness or injury and, due to these limits, you are not
able to perform, on a full-time basis, the major duties of your own job (e.g., if
you are required, on average, to work more than 40 hours per week, you will not be
considered to have a “disability” if you are able to perform the major
duties of your employment for 40 hours per week); you will not be considered to
have a disability if you perform any work for wage or profit, and the loss of a
professional or occupational license will not, in and of itself, constitute a
“disability.”
	 
	 	(e)	 	In the event your employment is terminated as a result of a qualified
retirement from the Company, the Option shall be exercisable by you (to the extent
that you shall have been entitled to do so on the date of your retirement) at any
time within the three (3) year period following the date of such qualified
retirement, but in no event later than the Expiration Date. For purposes of this
Option, your retirement from the Company shall be considered a “qualified
retirement” if such retirement is voluntary and, at the time of such
retirement, you are at least 60 years of age and have been employed by the Company
on a continuous basis for a period of at least five years.

	5.	 	Method of Exercise. Subject to the terms and conditions set forth herein and in the
Plan, the Option may be exercised, in whole or in part, by logging into your account at
http://www.melloninvestor.com or calling 1-866-4GK-SERV and specifying the number of shares to
be purchased and by paying in full the Purchase Price for the number of

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shares of Common Stock with respect to which the Option is exercised. Subject to the
provisions of the Plan, such Purchase Price shall be paid in cash and/or in shares of Common
Stock of the Company or other property. In addition, you shall, on or about notification to
you of the amount due, pay promptly an amount sufficient to satisfy applicable federal,
state and local tax requirements. In the event the Option shall be exercised by any person
other than you, such notice shall be accompanied by appropriate proof of the right of such
person to exercise the Option. The Company has no obligation to deliver shares or cash upon
exercise of the Option until all applicable withholding taxes have been paid or provided for
payment and until such shares are qualified for delivery under such laws and regulations as
may be deemed by the Company to be applicable thereto. Prior to the issuance of shares of
Common Stock upon the exercise of the Option, you will have no rights as a shareholder.

	6.	 	Non Transferability. No stock Option may be transferred, pledged or assigned
otherwise than by will or the laws of descent and distribution. An Option may be exercised,
during your lifetime, only by you, or by your guardian or legal representative. Any attempted
assignment, transfer, pledge, hypothecation, or other disposition of the Option contrary to
the provisions of the Plan or the provisions hereof, and the levy of any execution,
attachment, or similar process upon the Option, will be null and void and without effect.
	 
	7.	 	Reservation of Right to Terminate Employment. Your employment, subject to the
provisions of any agreement between you and the Company, shall be at the pleasure of the Board
of Directors of the Company or other employing corporation, and nothing contained herein shall
restrict any right of the Company or any other employing corporation to terminate your
employment at any time, with or without cause.
	 
	8.	 	Adjustment. In the event that the number of shares of Common Stock shall be
increased or decreased through a reorganization, reclassification, combination of shares,
stock split, reverse stock split, spin-off, dividend (other than regular, quarterly cash
dividends), or otherwise, then the Option shall be appropriately adjusted by the Committee, in
number of shares or Purchase Price or both to reflect such increase or decrease, unless the
Company provides otherwise under the terms of such transaction. In the event there shall be
any other change in the number or kind of outstanding shares of Common Stock, or any stock or
other securities into which such shares of Common Stock shall have been changed, or for which
it shall have been exchanged, whether by reason of a merger, consolidation or otherwise, then
the Committee shall, in its sole discretion, determine the appropriate adjustment, if any, to
be effected.
	 
	9.	 	Withholding. Pursuant to the provisions of the Plan, and as described in greater
detail therein, the Company will have the right to withhold from any payments made in
connection with the Option, or to collect as a condition of payment or delivery, any taxes
required by law to be withheld.

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	10.	 	Further Assurances. By accepting the Option, you agree to execute such papers,
agreements, assignments, or documents of title as may be necessary or desirable to effect the
purposes described herein and carry out its provisions.
	 
	11.	 	Third Party Beneficiaries. Nothing contained herein is intended or shall be
construed as conferring upon or giving to any person, firm or corporation other than you and
the Company any rights or benefits.
	 
	12.	 	Entire Understanding. The provisions set forth herein and those contained in the
Grant Letter and the Plan embody the entire agreement and understanding between you and the
Company with respect to the matters covered herein, in the Grant Letter and in the Plan, and
such provisions may only be modified pursuant to a written agreement signed by the party to be
charged.
	 
	13.	 	Governing Law. The agreement and understanding regarding the Option, and its
interpretation and effect, shall be governed by the laws of the State of Minnesota applicable
to contracts executed and to be performed therein.

4exv10wn

EXHIBIT 10(N)

G&K SERVICES, INC.

2006 EQUITY INCENTIVE PLAN — FOR CHAIRMAN AND CEO

TERMS OF NON-QUALIFIED

EMPLOYEE STOCK OPTION

Pursuant to your Compensation Statement (the “Compensation Statement”) delivered to you
from G&K Services, Inc. (the “Company”), the Board of Directors (the “Board”) of
the Company has granted you a non-qualified stock option (the “Option”) pursuant to the
terms of the G&K Services, Inc. 2006 Equity Incentive Plan (the “Plan”), and in accordance
with your Executive Employment Agreement dated December 22, 2006 (the “Employment
Agreement”). A copy of the Plan is enclosed herewith. The terms of your Option are governed by
the provisions of the Plan generally and the specific terms of the Employment Agreement. Your
Option grant is subject to the following:

	1.	 	Number of Shares Subject to the Option. After your acknowledgment of the Option, the
Option entitles you to purchase all or any part of the aggregate number of shares of Class A
Common Stock of the Company (the “Common Stock”) set forth in the Compensation
Statement as “G&K Stock Option shares,” in accordance with the Plan and the Employment
Agreement. You may acknowledge the Option by logging into your account at
http://www.melloninvestor.com and selecting the ‘Acknowledge Grant’ button associated with
your grant.
	 
	2.	 	Purchase Price. The purchase price of each share of Common Stock covered by the
Option shall be the “Exercise Price” set forth in the Compensation Statement.
	 
	3.	 	Exercise and Vesting of Option. The Option is exercisable only to the extent that
all, or any portion thereof, has vested. Except as provided in the Employment Agreement , the
Option shall vest in three (3) equal installments, such installments to begin on the first
anniversary of the “Grant Date” set forth in the in the Compensation Statement and
continuing on each of the next two anniversaries thereof (each individually, a “Vesting
Date”) until the Option is fully vested. In the event that you cease to be an employee of
the Company prior to any Vesting Date, then, except as otherwise specifically provided herein
and in the Employment Agreement, that portion of the Option scheduled to vest on such Vesting
Date, and all portions of the Option scheduled to vest in the future, shall not vest and all
rights to and under such non-vested portions of the Option will terminate.

However, if you (i) shall have reached the age of 591/2, (ii) shall have given the Company a
written Notice of Termination at least six months in advance of the Date of Termination
stated in the Notice, and (iii) thereafter shall retire from your employment with the
Company on a Date of Termination that is consistent with such notice, then effective as of
that Date of Termination all restrictions on exercise will automatically lapse. The
restrictions shall also lapse if you are terminated by the Company without Cause or due

 

 

to your Disability. Capitalized terms used in this paragraph that are not defined in this
agreement are defined in the Employment Agreement.

	4.	 	Term of Option. To the extent vested, and except as otherwise provided in the
Employment Agreement, no Option is exercisable after the expiration of ten (10) years from the
Grant Date (such date to be hereinafter referred to as the “Expiration Date”).
	 
	5.	 	Method of Exercise. Subject to the terms and conditions set forth herein and in the
Plan and the Employment Agreement, the Option may be exercised, in whole or in part, by
logging into your account at http://www.melloninvestor.com or calling 1-800-851-1982 and
specifying the number of shares to be purchased and by paying in full the Purchase Price for
the number of shares of Common Stock with respect to which the Option is exercised. Subject
to the provisions of the Plan, such Purchase Price shall be paid in cash and/or in shares of
Common Stock of the Company or other property. In addition, you shall, on or about
notification to you of the amount due, pay promptly an amount sufficient to satisfy applicable
federal, state and local tax requirements. In the event the Option shall be exercised by any
person other than you, such notice shall be accompanied by appropriate proof of the right of
such person to exercise the Option. The Company has no obligation to deliver shares or cash
upon exercise of the Option until all applicable withholding taxes have been paid or provided
for payment and until such shares are qualified for delivery under such laws and regulations
as may be deemed by the Company to be applicable thereto. Prior to the issuance of shares of
Common Stock upon the exercise of the Option, you will have no rights as a shareholder.
	 
	6.	 	Non Transferability. No stock Option may be transferred, pledged or assigned
otherwise than by will or the laws of descent and distribution. An Option may be exercised,
during your lifetime, only by you, or by your guardian or legal representative. Any attempted
assignment, transfer, pledge, hypothecation, or other disposition of the Option contrary to
the provisions of the Plan or the provisions hereof, and the levy of any execution,
attachment, or similar process upon the Option, will be null and void and without effect.
	 
	7.	 	Administration. The agreement and understanding regarding the Stock shall
at all times be subject to the terms and conditions of the Plan and the Employment Agreement.
The Committee shall have the sole and complete discretion with respect to all matters reserved
to it by the Plan and decisions of the Committee with respect thereto and to the terms set
forth herein shall be final and binding upon you. In the event of any conflict between the
provisions set forth herein and those set forth in the Plan and the Employment Agreement, the
provisions of the Plan and the Employment Agreement shall govern and control.
	 
	8.	 	Continuation of Employment. The agreement and understanding regarding the Stock
shall not confer upon you, and shall not be construed to confer upon you, any right to
continue in the employ of the Company for any period of time, and shall not limit the rights
of the Company in its sole discretion, to terminate your employment at any time,

2

 

with or without cause, for any reason or no reason, or to change your assignment or rate of
compensation, consistent with the Employment Agreement.

	9.	 	Adjustment. In the event that the number of shares of Common Stock shall be
increased or decreased through a reorganization, reclassification, combination of shares,
stock split, reverse stock split, spin-off, dividend (other than regular, quarterly cash
dividends), or otherwise, then the Option shall be appropriately adjusted by the Committee, in
number of shares or Purchase Price or both to reflect such increase or decrease. In the event
there shall be any other change in the number or kind of outstanding shares of Common Stock,
or any stock or other securities into which such shares of Common Stock shall have been
changed, or for which it shall have been exchanged, whether by reason of a merger,
consolidation or otherwise, then the Committee shall, in its sole discretion, determine the
appropriate adjustment, if any, to be effected.
	 
	10.	 	Withholding. Pursuant to the provisions of the Plan, and as described in greater
detail therein, the Company will have the right to withhold from any payments made in
connection with the Option, or to collect as a condition of payment or delivery, any taxes
required by law to be withheld.
	 
	11.	 	Further Assurances. By accepting the Option, you agree to execute such papers,
agreements, assignments, or documents of title as may be necessary or desirable to effect the
purposes described herein and carry out its provisions.
	 
	12.	 	Third Party Beneficiaries. Nothing contained herein is intended or shall be
construed as conferring upon or giving to any person, firm or corporation other than you and
the Company any rights or benefits.
	 
	13.	 	Entire Understanding. The provisions set forth herein and those contained in the
Compensation Statement, the Plan, and the Employment Agreement embody the entire agreement and
understanding between you and the Company with respect to the matters covered herein, in the
Compensation Statement and in the Plan, the Employment Agreement and such provisions may only
be modified pursuant to a written agreement signed by the party to be charged.
	 
	14.	 	Governing Law. The agreement and understanding regarding the Option, and its
interpretation and effect, shall be governed by the laws of the State of Minnesota applicable
to contracts executed and to be performed therein.

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