Document:

GK 2014.6.28-EX10(gg)

Exhibit 10(gg)
G&K SERVICES, INC.
RESTATED EQUITY INCENTIVE PLAN (2013)

TERMS OF CFO
RESTRICTED STOCK GRANT 

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 restricted shares of Class A Common Stock, $0.50 par value per share, of the Company (the “Stock”) pursuant to the terms of the G&K Services, Inc. Restated Equity Incentive Plan (2013) (the “Plan”). A copy of the Plan is enclosed herewith. The terms of your Stock 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.
	Grant of Stock

Subject to your acceptance in accordance with this paragraph 1, the Company grants you the aggregate number of shares of Stock set forth in the Grant Letter, in accordance with the Plan.  To accept the Stock, you must, within 14 days of the Grant Date, log into your account at http://www.cpushareownerservices.com/cpuportal/index.jsp and select the ‘Acknowledge Grant’ button associated with your grant.  Upon such acceptance, the Stock shall be issued of record in your name in “book-entry” form, without stock certificates, and shall be registered on the books of the Company maintained by the Company's transfer agent.  

		
	2.
	Rights of Employee

Upon the acceptance and issuance of the Stock, you will become a shareholder with respect to the Stock and shall have all of the rights of a shareholder with respect to such Stock, including the right to vote such Stock and to receive all dividends and other distributions paid with respect to such Stock; provided, however, that such Stock shall be subject to the restrictions set forth in paragraph 3 below.  

		
	3.
	Restrictions

You agree that at all times prior to the vesting of the Stock as contemplated by paragraph 4 below:

		
	a)
	You will not sell, transfer, pledge, hypothecate or otherwise encumber the Stock; and

		
	b)
	If your employment with the Company is voluntarily or involuntarily terminated for any reason whatsoever, or you violate the terms of any confidentiality agreement, non-solicitation covenant or covenant not to compete, however delineated, subject to paragraph 4 below, you will, for no consideration, forfeit and transfer to the Company all shares of Stock that remain subject to the restrictions set forth in this paragraph 3.

		
	c)
	Subject to the lapse of the restrictions set forth in subparagraphs (a) and (b) of this paragraph 3, the Stock registered on the books of the Company maintained by the Company's transfer agent shall bear such restrictive notations and be subject to such stop transfer instructions as the Company shall deem necessary or appropriate in light of such restrictions.

		
	1.
	Lapse of Restrictions

		
	a)
	Except as set forth in subparagraph 4(b) and 4(c) below, half of your grant will follow the restrictions set forth in paragraph 3 above shall lapse with respect to one-fifth of the Stock on the one year anniversary of the “Grant Date” set forth in the Grant Letter, and one-fifth of the Stock on each of the next four successive anniversaries of such date (each individually a “Vesting Date”) and half of your grant will follow the restrictions set forth in paragraph 3 above shall lapse with respect to one-third of the Stock on the one year anniversary of the “Grant Date” set forth in the Grant Letter, and one-third of the Stock on each of the next two successive anniversaries of such date (each individually a “Vesting Date”) .  In the event that you cease to be an employee of the Company prior to any Vesting Date, the Stock scheduled to vest on such Vesting Date, and all Stock scheduled to vest in the future, shall not vest and all rights to and under such non-vested Stock will terminate.

		
	b)
	If at the time that you terminate employment with the Company you have attained the age of 60 and have completed at least five years of continuous service with the Company, then the restrictions set forth in paragraph 3 above shall lapse with respect to that portion of the Stock that is not yet vested as set forth in subparagraph 4(a) above in two substantially equal installments, the first installment to vest on the first anniversary of your retirement date, as established by the Company, and the second installment to vest on the second anniversary of your retirement date.

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	c)
	If you should die or terminate employment as a result of a disability while you are an employee of the Company or any of its subsidiaries, then the restrictions set forth in paragraph 3 above shall lapse on the date of death or termination of employment. For purposes hereof, 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 with or without reasonable accommodation (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.”

		
	d)
	Within 30 days after the date that the restrictions set forth in subparagraphs (a) and (b) of paragraph 3 have lapsed with respect to shares of Stock and such shares have become vested, free and clear of all restrictions, except as provided in the Plan, the Company shall instruct its transfer agent to remove any restrictive notations and stop transfer instructions placed on the Stock register in connection with such restrictions.

		
	2.
	Copy of Plan

By the accepting the Stock, you acknowledge receipt of a copy of the Plan, the terms and conditions of which are hereby incorporated herein by reference and made a part hereof by reference as if set forth in full.

		
	3.
	Administration

The agreement and understanding regarding the Stock shall at all times be subject to the terms and conditions of the Plan.  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, the provisions of the Plan shall govern and control.

		
	4.
	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, with or without cause, for any reason or no reason, or to change your assignment or rate of compensation.

		
	5.
	Withholding of Tax

To the extent that the receipt of the Stock, the lapse of any restrictions thereon, or your attainment of age 60 with at least five years of continuous service results in income to you for federal or state income tax purposes, you shall deliver to the Company at the time of such receipt, lapse, or attainment, as the case may be, such amount of money or shares of unrestricted Stock, as permitted by the Plan, as the Company may require to meet its withholding obligation under applicable tax laws or regulations, and, if you fail to do so, the Company is authorized to withhold from any cash or Stock remuneration then or thereafter payable to you any tax required to be withheld by reason of such resulting compensation income, including accelerating lapse restrictions with respect to a sufficient number of shares of Stock to cover withholding obligations.

		
	6.
	Section 83(b) Election

You understand that you (and not the Company) shall be responsible for your own federal, state, local or foreign tax liability and any of your other tax consequences that may arise as a result of the transactions contemplated herein.  You shall rely solely on the determinations of your tax advisors or your own determinations, and not on any statements or representations by the Company or any of its agents, with regard to all such tax matters.  You understand that Section 83 of the Internal Revenue Code of 1986, as amended (the “Code”), taxes as ordinary income the difference between the amount paid for the Stock and the fair market value of the Stock as of the date restrictions on the Stock lapse.  In this context, “restriction” includes, without limitation, the vesting restrictions set forth in paragraph 3 hereof.  You understand that you may elect to be taxed at the time the Award of restricted Stock is made rather than when and as the restrictions on the Stock lapse or expire by filing an election under Section 83(b) of the Code with the Internal Revenue Service within thirty (30) days from the Grant Date, as defined in your Grant Letter. In the event you file an election under Section 83(b) of the Code, such election shall contain all information required under the applicable treasury regulation(s) and you shall deliver a copy of such election to the Company contemporaneously with filing such election with the Internal Revenue Service. YOU ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b) OF THE CODE, EVEN IF YOU REQUEST THAT THE COMPANY OR ITS REPRESENTATIVES MAKE THIS FILING ON YOUR BEHALF.

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	7.
	Further Assurances

By accepting the Stock discussed herein, 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.

		
	8.
	Governing Law

The agreement and understanding regarding the Stock, 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.

		
	9.
	Amendments

Except as provided in the Plan, this Award Agreement may be amended only by a written agreement executed by the Company and you.

		
	10.
	Entire Agreement

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.

3GK 2014.6.28-EX10(x)

Exhibit 10(x)
G&K SERVICES, INC.
RESTATED EQUITY INCENTIVE PLAN (2013)
TERMS OF NON-QUALIFIED
NON-EMPLOYEE DIRECTOR STOCK OPTION (For Use On or After January 1, 2015)
INITIAL GRANT

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 Company has granted you a non-qualified stock option (the “Option”) pursuant to the terms of the G&K Services, Inc. Restated Equity Incentive Plan (2013) (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.  To accept the Option, within 14 days of the Grant Date, you must log into your account at www.computershare.com/employee/us and select 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. 

(a) The Option is exercisable only to the extent that all, or any portion thereof, has vested. Except as provided in subparagraph 3 (b) and 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 Grant Letter and continuing on each of the next two anniversaries thereof (each individually a “Vesting Date”) until the Option is fully vested.  Except as provided in subparagraph 3 (b) below, in the event that you cease to be a Director of the Company prior to any Vesting Date, that portion of the Option scheduled to vest on the 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. 
(b) If your ceasing to be a Director of the Company constitutes a Qualified Retirement as a Director of the Company, as defined below, then the Option shall become exercisable with respect to that portion that is not yet vested (as set forth in subparagraph 3(a) above) in two substantially equal installments, the first installment to vest on the first anniversary of the date you cease to be a Director, as established by the Company, and the second installment to vest on the second anniversary of the date you cease to be a Director.  Provided, however, that any installment that would otherwise vest after the Expiration Date, as defined in subparagraph 4(a) below, shall not vest, but shall instead be forfeited at the time you cease to be a Director of the Company. For purposes of this Grant Letter, Qualified Retirement as a Director of the Company shall mean voluntary termination of service as a Director on attaining age 70, the mandatory retirement age, or, if earlier, after completing at least twelve consecutive years of service as a Director.
		
	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) 
	Notwithstanding anything to the contrary herein, an Option shall automatically become immediately exercisable in full upon the death of a Non-Employee Director.

		
	(c) 
	A Non-Employee Director of the Company who shall cease to be such a Non-Employee Director for any reason, including death, while holding an Option that has not expired and has not been fully exercised, may, at any time within one year of the date the Non-Employee Director ceased to be a Non-Employee Director (but in no event after the Option has expired under the provisions of subparagraph 4(a) above), exercise the Option with respect to any Common Stock as to which the Non-Employee Director could have exercised on the date he or she ceased to be such a Non-Employee Director.

If your ceasing to be a Director of the Company constitutes a Qualified Retirement as a Director of the Company, the Option shall be exercisable by you (to the extent the Option is vested on the date of your Qualified Retirement as a Director of the Company or becomes vested in accordance with subparagraph 3(b) above) 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. In the event of your death during the time period that the Option is vested and exercisable (or becomes vested and is exercisable), the Option may be exercised (to the extent that you shall have been entitled if you had lived to exercise the Option on 

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the date it is exercised) by the person to whom the Option is transferred by will or the applicable laws of descent and distribution.
		
	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 www.computershare.com/employee/us 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, if any. 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.
	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, stock dividend, 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 of a dividend in kind or distribution (other than normal cash dividends) to shareholders of the Company, then the price, number of shares, other terms or a combination of the foregoing with respect to the Option shall be equitably adjusted in order to prevent dilution or enlargement of your rights under the Plan, in such manner as determined by the Committee in its sole discretion.  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. 

		
	8.
	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.

		
	9.
	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.

		
	10.
	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.

		
	11.
	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.

		
	12.
	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.

		
	13.
	Amendments.  Except as otherwise provided in the Plan, this Award Agreement may be amended only by a written agreement executed by the Company and you.

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