Document:

EX-10.4

 

Exhibit 10.4

COINMACH SERVICE CORP. 2004 LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

     THIS AGREEMENT, entered into as of the Grant Date (as defined in paragraph 1), by and between
the Participant and Coinmach Service Corp. (the “Company”);

WITNESSETH THAT:

     WHEREAS, the Company maintains the Coinmach Service Corp. 2004 Long-Term Incentive Plan (the
“Plan”), which is incorporated into and forms a part of this Agreement, and the Participant has
been selected by the committee administering the Plan (the “Committee”) to receive a Restricted
Stock Award under the Plan;

     NOW, THEREFORE, IT IS AGREED, by and between the Company and the Participant, as follows:

     1. Terms of Award. The following terms used in this Agreement shall have the meanings
set forth in this paragraph 1:

	(a)	 	The “Participant” is Michael E. Stanky.
	 
	(b)	 	The “Grant Date” is November 3, 2006.
	 
	(c)	 	“Covered Shares” are shares of Class A Stock granted under this Agreement and subject to the
terms of this Agreement and the Plan. The number of “Covered Shares” awarded under this
Agreement is 10,000 shares.
	 
	(d)	 	2,500 Covered Shares1 (representing 25% of all Covered Shares awarded
under this Agreement) shall be “Time Vesting Shares.”
	 
	(e)	 	7,500 Covered Shares 2 (representing 75% of all Covered Shares awarded
under this Agreement) shall be “Performance Vesting Shares.” The number of Covered Shares
representing 2/3 of Participant’s Performance Vesting Shares shall be “Pool I Performance
Vesting Shares”, and the number of Covered Shares representing 1/3 of Participant’s
Performance Vesting Shares shall be “Pool II Performance Vesting Shares.”

Other terms used in this Agreement are defined pursuant to paragraph 14 or elsewhere in this
Agreement.

     2. Award. The Participant is hereby granted the number of Covered Shares set forth in
paragraph 1.

 

			
	1	 	25% of the Covered Shares awarded shall be
subject to time vesting.
	 
	2	 	75% of the Covered Shares awarded shall be
subject to performance vesting.

 

 

     3. Section 83(b) Election. The parties agree that the Fair Market Value of each
Covered Share as of the Grant Date is $10.00. The Participant, in his sole discretion, may make a
Section 83(b) Election with the IRS in the form of Exhibit A attached hereto. The
Participant understands that under applicable law such election must be filed with the IRS no later
than 30 days after any grant of the Covered Shares is to be effective. If the Participant files an
effective 83(b) Election, the excess of the fair market value of the Covered Shares (which the IRS
may assert is different from the Fair Market Value determined by the parties) covered by such
election shall be treated as ordinary income received by the Participant, and the Company or one of
its Subsidiaries shall withhold from Participant’s compensation all amounts required to be withheld
under applicable law. If the Participant does not file an 83(b) Election, future appreciation on
the Covered Shares will generally be taxable as ordinary income when such Covered Shares vest
pursuant to this Agreement. (See Exhibit A for additional information about the tax consequences.)
The foregoing discussion as well as the discussion in Exhibit A is based on Federal tax laws and
regulations presently in effect, which are subject to change, and the discussion does not purport
to be a complete description of the Federal income tax aspects of the program or grants under it.
The Participant may also be subject to state and local taxes in connection with the grant of
Covered Shares under the program. The Company suggests that the Participant consult with his
individual tax advisor to determine the applicability of the tax rules to the awards granted to him
in his personal circumstances.

     4. Dividends and Voting Rights. The Participant shall be entitled to receive any
dividends paid with respect to the Time Vesting Shares that become payable during the Restricted
Period; provided, however, that no dividends shall be payable to or for the benefit
of the Participant for Time Vesting Shares with respect to record dates occurring prior to the
Grant Date, or with respect to record dates occurring on or after the date, if any, on which the
Participant has forfeited those Time Vesting Shares. The Participant shall not be paid any
dividends with respect to the Performance Vesting Shares until the Participant has become vested in
such shares. At the time of vesting, the Participant shall receive a cash payment equal to the
aggregate dividends (without interest) that the Participant would have received if the Participant
had owned all of the Performance Vesting Shares in which the Participant vested for the period
beginning on the date of grant of those shares and ending on the date of vesting. No dividends
shall be paid to the Participant with respect to any Time Vesting Shares or any Performance Vesting
Shares that are forfeited by the Participant. The Participant shall be entitled to vote the
Covered Shares (whether Time Vesting Shares or Performance Vesting Shares) during the Restricted
Period to the same extent as would have been applicable to the Participant if the Participant was
then vested in the shares; provided, however, that the Participant shall not be
entitled to vote the shares with respect to record dates for such voting rights arising prior to
the Grant Date, or with respect to record dates occurring on or after the date, if any, on which
the Participant has forfeited those Covered Shares.

     5. Deposit of Covered Shares. Each certificate issued in respect of the Covered
Shares granted under this Agreement shall be registered in the name of the Participant and shall be
deposited in a bank designated by the Committee. During the Restricted Period, all certificates
evidencing the Restricted Stock will be imprinted with the

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following legend: “The securities evidenced by this certificate are subject to the transfer
restrictions, forfeiture restrictions and other provisions of the Restricted Stock Agreement dated
November 3, 2006, between Coinmach Service Corp. and Michael E. Stanky.” Notwithstanding the
foregoing, the Committee may, in its sole discretion, cause the Covered Shares to be held in
book-entry form on behalf of the Participant without the issuance of certificates.

     6. Transfer and Forfeiture of Shares.

	(a)	 	Time Vesting Shares. If the Date of Termination (as defined below) does not occur
during the Restricted Period with respect to any Installment of the Time Vesting Shares, then,
at the end of the Restricted Period for such shares, the Participant shall become vested in
those Time Vesting Shares, and shall own the shares free of all restrictions otherwise imposed
by this Agreement. With respect to all Time Vesting Shares, the “Restricted Period” shall
begin on the Grant Date. The “Restricted Period” with respect to each Installment of Time
Vesting Shares shown on the schedule shall end on the Vesting Date applicable to such
Installment (but only if the Date of Termination has not occurred before the Vesting Date):

	 	 	 	 	 
	 	 	 	 	VESTING
DATE

	 	 	 	 	APPLICABLE
TO

	INSTALLMENT	 	INSTALLMENT

	 	833	 	 	One-Year Anniversary of Grant Date

	 	833	 	 	Two-Year Anniversary of Grant Date

	 	834	 	 	Three-Year Anniversary of Grant Date

	(b)	 	Performance Vesting Shares. If the Date of Termination does not occur during the
Performance Period with respect to the Performance Vesting Shares, then, at the end of the
Performance Period for such shares, the Participant shall become vested in those Performance
Vesting Shares, and shall own the shares free of all restrictions otherwise imposed by this
Agreement, but only to the extent expressly provided by this paragraph 6. Except as otherwise
provided in this paragraph 6, if the Date of Termination occurs at or prior to the end of the
Performance Period, the Performance Vesting Shares shall be forfeited. With respect to all
Performance Vesting Shares, the “Performance Period” shall begin on the Grant Date and shall
end on March 31, 2009.

	 	(i)	 	Performance Goals. The vesting of Pool I Performance Vesting Shares
is not dependent on the satisfaction of the Performance Goal for Pool II Performance
Vesting Shares, and the vesting of Pool II Performance Vesting Shares is not dependent
on the satisfaction of the Performance Goal for Pool I Performance Vesting Shares.

	 	(A)	 	Pool I Performance Vesting Shares. The performance goal with
respect to Pool I Performance Vesting Shares shall be DCF of $48 million for the
fiscal year of the Company ending March 31, 2009.

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	 	 	 	If the Performance Goal described in the preceding sentence is met as of the
end of the Performance Period, all Pool I Performance Vesting Shares shall
vest, and Participant shall own such Pool I Performance Vesting Shares free
of all restrictions otherwise imposed by this Agreement. Pool I Performance
Vesting Shares that have not vested at or prior to the end of the Performance
Period shall be forfeited.
	 
	 	(B)	 	Pool II Performance Vesting Shares. The Performance Goal with
respect to Pool II Performance Vesting Shares shall be Consolidated EBITDA of
$174 million for any four consecutive fiscal quarters beginning on or after
October 1, 2006 and ending on or prior to March 31, 2009. If the Performance
Goal described in the preceding sentence is met at any time during the
Performance Period, all Pool II Performance Vesting Shares shall vest, and the
Participant shall own such Pool II Performance Vesting Shares free of all
restrictions otherwise imposed by this Agreement. If the Performance Goal
described above is not met as of the end of the Performance Period, but
Consolidated EBITDA as of the end of the Performance Period is at least $165
million, an amount (expressed as a percentage) of Pool II Performance Vesting
Shares shall vest in accordance with the following schedule:

	 	 	 	 	 
	Consolidated EBITDA	 	 
	for the fiscal year of the Company ending	 	Vested Percentage of Pool II
	March 31, 2009	 	Performance Vesting Shares
	Less than $165 million
	 	 	0	%
	At least $165 million but less than $166 million
	 	 	25	%
	At least $166 million but less than $167 million
	 	 	30	%
	At least $167 million but less than $168 million
	 	 	35	%
	At least $168 million but less than $169 million
	 	 	40	%
	At least $169 million but less than $170 million
	 	 	50	%
	At least $170 million but less than $171 million
	 	 	60	%
	At least $171 million but less than $172 million
	 	 	75	%
	At least $172 million but less than $173 million
	 	 	85	%
	At least $173 million but less than $174 million
	 	 	95	%
	$174 million or greater
	 	 	100	%

	 	 	Pool II Performance Vesting Shares that have not vested by the end of the Performance
Period shall be forfeited.

	 	(C)	 	Satisfaction of Performance Goals. The determination as to
whether a Performance Goal with respect to Pool I Performance Shares and Pool II
Performance Shares shall have been met shall be made by the Board of Directors
following the review and/or audit, as applicable, by the Company’s independent
certified public

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	 	 	 	accountants of the financial statements of the Company for the fiscal quarter
or fiscal year, as applicable, ending on the last day of the period during
which such Performance Goal is believed to have been met. Notwithstanding
any provision contained herein to the contrary, the Board of Directors shall
have the sole and absolute discretion to interpret the meaning of any
defined term contained herein used in the calculation of DCF and Consolidated
EBITDA, which interpretation shall be binding on Participant (whether or not
such interpretation is in accordance with GAAP or, for those term not defined
by GAAP, other commonly used definitions or measures). If and to the extent
Participant is a member on the Board of Directors at the time any such
determination described in this clause (C) is made, such Participant shall
abstain from taking part in such determination.

	(c)	 	Notwithstanding the foregoing provisions of this paragraph 6, the following provisions shall
apply to the Covered Shares, including both the Time Vesting Shares and the Performance
Vesting Shares:

	 	(i)	 	Change in Control. If the Participant’s Date of Termination does not
occur prior to a Change in Control, then as of the Change in Control, all Covered
Shares that have not previously vested shall vest and the Participant shall become the
owner of such shares free of all restrictions otherwise imposed by this Agreement.
	 
	 	(ii)	 	Death and Disability. If the Participant’s Date of Termination
occurs by reason of his death or Disability, then as of the Date of Termination, all
Covered Shares that have not previously vested shall vest and the Participant (or his
estate) shall become the owner of such shares free of all restrictions otherwise
imposed by this Agreement.
	 
	 	(iii)	 	Other Employment Termination. If the Participant’s Date of
Termination occurs for any reason other than the Participant’s death or Disability,
the Participant shall, as of a Date of Termination, forfeit the Covered Shares that
have not become vested as of that date.

	(d)	 	Transfer of Shares. Covered Shares may not be sold, assigned, transferred, pledged
or otherwise encumbered until the expiration of the Performance Period or, if earlier, until
the Participant is vested in the shares.

     7. Withholding. The grant and vesting of the Covered Shares under this Agreement are
subject to withholding of all applicable taxes. At the election of the Participant, and subject to
such rules and limitations as may be established by the Committee from time to time and subject to
any applicable loan commitments of the Company or its affiliates, such withholding obligations may
be satisfied through the surrender of shares of Class A common stock (i) which the Participant
already owns, or (ii) to which the Participant is otherwise entitled under the Plan;
provided, however, that

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shares described in this clause (ii) may be used to satisfy not more than the Company’s
minimum statutory withholding obligation (based on minimum statutory withholding rates for Federal
and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable
income).

     8. Heirs and Successors. This Agreement shall be binding upon, and inure to the
benefit of, the Company and its successors and assigns, and upon any person acquiring, whether by
merger, consolidation, purchase of assets or otherwise, all or substantially all of the Company’s
assets and business. If any rights of the Participant or benefits distributable to the Participant
under this Agreement have not been exercised or distributed, respectively, at the time of the
Participant’s death, such rights shall be exercisable by the Designated Beneficiary, and such
benefits shall be distributed to the Designated Beneficiary, in accordance with the provisions of
this Agreement and the Plan. The “Designated Beneficiary” shall be the beneficiary or
beneficiaries designated by the Participant in a writing filed with the Committee in such form and
at such time as the Committee shall require. If a Participant fails to designate a beneficiary, or
if the Designated Beneficiary does not survive the Participant, any rights that would have been
exercisable by the Participant and any benefits distributable to the Participant shall be exercised
by or distributed to the legal representative of the estate of the Participant. If a Participant
designates a beneficiary and the Designated Beneficiary survives the Participant but dies before
the Designated Beneficiary’s exercise of all rights under this Agreement or before the complete
distribution of benefits to the Designated Beneficiary under this Agreement, then any rights that
would have been exercisable by the Designated Beneficiary shall be exercised by the legal
representative of the estate of the Designated Beneficiary, and any benefits distributable to the
Designated Beneficiary shall be distributed to the legal representative of the estate of the
Designated Beneficiary.

     9. Administration. The authority to manage and control the operation and
administration of this Agreement shall be vested in the Committee, and the Committee shall have all
powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of
the Agreement by the Committee and any decision made by it with respect to the Agreement is final
and binding.

     10. Plan Governs. Notwithstanding anything in this Agreement to the contrary, the
terms of this Agreement shall be subject to the terms of the Plan, a copy of which may be obtained
by the Participant from the office of the Secretary of the Company.

     11. Fractional Shares. In lieu of issuing a fraction of a share pursuant to paragraph
5.2(f) of the Plan or otherwise, the Company will be entitled to pay to the Participant an amount
equal to the Fair Market Value of such fractional share.

     12. Amendment. This Agreement may be amended in accordance with the provisions of the
Plan, and may otherwise be amended by written agreement of the Participant and the Company without
the consent of any other person.

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     13. Applicable Law. The provisions of this Agreement shall be construed in accordance
with the laws of the State of New York, without regard to the conflict of law provisions of any
jurisdiction.

     14. Definitions. For purposes of this Agreement, the terms used in this Agreement
shall be subject to the following:

	(a)	 	Board of Directors. “Board of Directors” means the Board of Directors of the
Company.
	 
	(b)	 	Capital Expenditures. “Capital Expenditures” means, for any period, without
duplication, the sum of:

	 	(i)	 	the aggregate amount of all expenditures of the Company for property, plant
and equipment (excluding any property, plant and equipment acquired in connection with
acquisitions, including advance location payments to location owners and excluding
expenditures relating to additions to net assets related to acquisitions of
businesses) that are recorded as fixed or capital assets made during such period
which, in accordance with GAAP, would be classified as capital expenditures, and
	 
	 	(ii)	 	the aggregate amount of all cash payments made during such period in respect
of any capitalized lease obligation allocable to the principal component thereof;

	 	 	provided that the term “Capital Expenditures” shall not include (A) expenditures made in
connection with the replacement, substitution or restoration of assets (I) to the extent
financed from insurance proceeds paid on account of the loss of or damage to the assets
being replaced or restored or (II) with awards of compensation arising from the taking by
eminent domain or condemnation of the assets being replaced; (B) the purchase price of
equipment that is purchased simultaneously with the trade-in of existing equipment to the
extent that the gross amount of such purchase price is reduced by the credit granted by the
seller of such equipment for the equipment being traded in at such time; (C) a capitalized
lease obligation paid in respect of equipment that is leased in substitution for, or as
replacement in connection with the trade-in of, existing similar equipment; (D) the
purchase of plant, property or equipment made within one year of the sale of any asset in
replacement of such asset to the extent purchased with the proceeds of such sale, and a
capitalized lease obligation paid in respect of such replaced asset; and (E) expenditures
for property, plant and equipment that are financed to the extent of such financing,
provided that all cash payments made during such period in respect of such financing and
allocable to the principal component thereof shall be treated as a Capital Expenditure for
such period.
	 
	(c)	 	Cause. The term “Cause” means (i) if the applicable Participant is party to an
effective employment agreement with the Company or any of its Subsidiaries, “Cause” shall have
the same meaning as such term is defined therein; (ii) if the

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	 	 	applicable Participant is not a party to an effective employment agreement but is a party
to an effective equity award agreement pursuant to any stock incentive plan of the Company,
“Cause” shall have the same meaning as such term is defined therein; and (iii) if the
applicable Participant (A) commits an intentional act of fraud, embezzlement or theft in
connection with his duties or in the course of his employment, (B) commits intentional,
wrongful damage to property of the Company or its affiliates, (C) fails to perform the
material duties of his position after receipt of a written warning from the Company, (D) is
convicted of a felony, (E) violates Company policy, or (F) intentionally and wrongfully
discloses confidential information of the Company or its affiliates that has been harmful
to or has adversely affected the Company or its affiliates. For purposes of this letter,
no act on the Participant’s part shall be considered “intentional” if it was due primarily
to an error in judgment or negligence, but shall be considered intentional only if done by
the Participant not in good faith and without reasonable belief that such action or
omission was in the best interests of the Company; provided, however, that
if the Participant’s employment is subject to an employment agreement that contains a
definition of “Cause” or “Termination for Cause,” then, notwithstanding the foregoing
provisions of this definition or the provisions of this Agreement, the definition of
“Cause” or “Termination for Cause” in such employment agreement, rather than the foregoing
definition in this Agreement, shall apply to the Participant.

	(d)	 	Change in Control. “Change in Control” has the meaning ascribed to such term in the
Plan.
	 
	(e)	 	Consolidated EBITDA. The term “Consolidated EBITDA” means, for any period, the sum
(without duplication) of:

	 	(i)	 	Consolidated Net Income, and
	 
	 	(ii)	 	to the extent Consolidated Net Income has been reduced thereby (A) all income
taxes of the Company paid or accrued in accordance with GAAP for such period (other
than income taxes attributable to extraordinary, unusual or nonrecurring gains or
losses or taxes attributable to sales or dispositions of assets outside the ordinary
course of business), (B) consolidated interest expense, and (C) consolidated non-cash
charges less any non-cash items increasing Consolidated Net Income for such period,

	 	 	all as determined on a consolidated basis for the Company in accordance with GAAP. In
addition to and without limitation of the foregoing, for purposes of this definition,
“Consolidated EBITDA” shall be calculated after giving effect on a pro forma basis for the
applicable period of such calculation to any asset sales, acquisitions or other
dispositions occurring during such applicable period as if such asset sale, acquisition or
disposition occurred on the first day of such applicable period, and including any pro
forma expense and cost reductions calculated on a basis consistent with Regulation S-X
under the Securities Exchange Act of 1934, as amended.

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	(f)	 	Consolidated Interest Expense. “Consolidated Interest Expense” means, for any
period, the aggregate of interest expense of the Company for such period on a consolidated
basis as determined in accordance with GAAP, excluding amortization or write-off of deferred
financing costs and debt issuance costs during such period and any premium or penalty paid in
connection with redeeming or retiring indebtedness of the Company and its Subsidiaries prior
to the stated maturity thereof pursuant to the agreements governing such indebtedness and
including, without duplication, (a) all amortization of original issue discount; (b) the
interest component of capitalized lease obligations paid, accrued and/or scheduled to be paid
or accrued during such period; (c) net cash costs under all interest rate swaps, caps, floors,
collars or similar obligations or agreements (including amortization of fees); (d) all
capitalized interest; and (e) the interest portion of any deferred payment obligations for
such period.
	 
	(g)	 	Consolidated Net Income. “Consolidated Net Income” means, for any period, the
aggregate net income (or loss) of the Company for such period on a consolidated basis,
determined in accordance with GAAP; provided that there shall be excluded therefrom (A)
after-tax gains and losses from asset sales or abandonments or reserves relating thereto, (B)
after-tax items classified as extraordinary or nonrecurring gains, (C) the net income (but not
loss) of any Subsidiary of the Company to the extent that the declaration of dividends or
similar distributions by that Subsidiary of that income is restricted by a contract, operation
of law or otherwise, (D) any restoration to income of any material contingency reserve, except
to the extent that provision for such reserve was made out of Consolidated Net Income accrued,
(E) income or loss attributable to discontinued operations (including, without limitation,
operations disposed of during such period whether or not such operations were classified as
discontinued), (F) all gains and losses realized on or because of the purchase or other
acquisition by the Company of any securities of the Company, (G) amortization charges
resulting from purchase accounting adjustments, (H) in the case of a successor to the Company
by consolidation or merger or as a transferee of the Company’s assets, any earnings of the
successor corporation prior to such consolidation, merger or transfer of assets, (I) write
downs resulting from the impairment of intangible assets, (J) the amount of amortization or
write-off of deferred financing costs and debt issuance costs of Company during such period
and any premium or penalty paid in connection with redeeming or retiring indebtedness of the
Company prior to the stated maturity thereof pursuant to the agreements governing such
indebtedness, (K) costs paid to unwind interest rate swaps, caps, floors, collars or similar
obligations agreements, and (L) non-cash charges related to employee compensation.
	 
	(h)	 	Date of Termination. The term “Date of Termination” means the first day occurring on
or after the Grant Date on which the Participant is not employed by the Company or any
Subsidiary, regardless of the reason for the termination of employment; provided that
a termination of employment shall not be deemed to occur by reason of a transfer of the
Participant between the Company and a

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	 	 	Subsidiary or between two Subsidiaries; and further provided that the Participant’s
employment shall not be considered terminated while the Participant is on a leave of
absence from the Company or a Subsidiary approved by the Participant’s employer. If the
Participant is employed by a Subsidiary and if, as a result of a sale or other transaction,
the Participant’s employer ceases to be a Subsidiary (and the Participant’s employer is or
becomes an entity that is separate from the Company), and the Participant is not, at the
end of the 30-day period following the transaction, employed by the Company or an entity
that is then a Subsidiary, then the occurrence of such transaction shall be treated as the
Participant’s Date of Termination caused by the Participant being discharged by the
employer.
	 
	(i)	 	DCF. The term “DCF” means Consolidated EBITDA of the Company for the consecutive
twelve month period ending March 31, 2009 minus

	 	(i)	 	the sum, without duplication, of:

	 	(A)	 	Consolidated Interest Expense,
	 
	 	(B)	 	Capital Expenditures,
	 
	 	(C)	 	cash tax payments in respect of federal and state income taxes,
	 
	 	(D)	 	net changes in Working Capital and
	 
	 	(E)	 	extraordinary cash charges,

	 	 	 	plus
	 
	 	(ii)	 	the sum of:

	 	(A)	 	cash tax refunds in respect of federal and state income taxes and
	 
	 	(B)	 	extraordinary cash gains,

	 	 	 	in each case of the Company on a consolidated basis for or in such period.

	(j)	 	Disability. The Participant shall be considered to have a “Disability” during the
period in which the Participant is unable, by reason of a medically determinable physical or
mental impairment, to engage in any substantial gainful activity, which condition, in the
opinion of a physician selected by the Committee, is expected to have a duration of not less
than 120 days; provided, however, that if the Participant’s employment is
subject to an employment agreement that contains a definition of “Disability” or “Disabled,”
then, notwithstanding the foregoing provisions of this definition or the provisions of this
Agreement, the definition of “Disability” or “Disabled” in such employment agreement, rather
than the foregoing definition in this Agreement, shall apply to the Participant.

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	(k)	 	GAAP. The term “GAAP” means generally accepted accounting principles in the United
States of America.
	 
	(l)	 	IRS. The term “IRS” means the Internal Revenue Service.
	 
	(m)	 	Plan Definitions. Except where the context clearly implies or indicates the
contrary, a word, term, or phrase used in the Plan is similarly used in this Agreement.
	 
	(n)	 	Section 83(b) Election. The term “Section 83(b) Election” means an election made with
the IRS under Section 83(b) of the Code and the regulations promulgated thereunder.
	 
	(o)	 	Working Capital. The term “Working Capital” means, at any date of determination, the
consolidated assets of the Company that are classified as current assets in accordance with
GAAP, less the consolidated liabilities of the Company which are classified as current
liabilities in accordance with GAAP.

     IN WITNESS WHEREOF, the Participant has executed this Agreement, and the Company has caused
these presents to be executed in its name and on its behalf, all as of the Grant Date.

	 	 	 	 	 
	 

	 	Participant
	 	 
	 
	 	 	 	 
	 

	 	/s/ Michael E. Stanky	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	COINMACH SERVICE CORP.	 	 
	 
	 	 	 	 
	 

	 	/s/ Stephen R. Kerrigan	 	 
	 

	 	 	 	 
	 

	 	By: Stephen R. Kerrigan	 	 
	 

	 	Its: President and Chief Executive Officer	 	 

11EX-10.5

 

Exhibit 10.5

COINMACH SERVICE CORP. 2004 LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

     THIS AGREEMENT, entered into as of the Grant Date (as defined in paragraph 1), by and between
the Participant and Coinmach Service Corp. (the “Company”);

WITNESSETH THAT:

     WHEREAS, the Company maintains the Coinmach Service Corp. 2004 Long-Term Incentive Plan (the
“Plan”), which is incorporated into and forms a part of this Agreement, and the Participant has
been selected by the committee administering the Plan (the “Committee”) to receive a Restricted
Stock Award under the Plan;

     NOW, THEREFORE, IT IS AGREED, by and between the Company and the Participant, as follows:

     1. Terms of Award. The following terms used in this Agreement shall have the meanings
set forth in this paragraph 1:

	(a)	 	The “Participant” is Ramon Norniella.
	 
	(b)	 	The “Grant Date” is November 3, 2006.
	 
	(c)	 	“Covered Shares” are shares of Class A Stock granted under this Agreement and subject to the
terms of this Agreement and the Plan. The number of “Covered Shares” awarded under this
Agreement is 10,000 shares.
	 
	(d)	 	2,500 Covered Shares1 (representing 25% of all Covered Shares awarded
under this Agreement) shall be “Time Vesting Shares.”
	 
	(e)	 	7,500 Covered Shares 2 (representing 75% of all Covered Shares awarded
under this Agreement) shall be “Performance Vesting Shares.” The number of Covered Shares
representing 2/3 of Participant’s Performance Vesting Shares shall be “Pool I Performance
Vesting Shares”, and the number of Covered Shares representing 1/3 of Participant’s
Performance Vesting Shares shall be “Pool II Performance Vesting Shares.”

Other terms used in this Agreement are defined pursuant to paragraph 14 or elsewhere in this
Agreement.

     2. Award. The Participant is hereby granted the number of Covered Shares set forth in
paragraph 1.

 

			
	1	 	25% of the Covered Shares awarded shall be
subject to time vesting.
	 
	2	 	75% of the Covered Shares awarded shall be
subject to performance vesting.

 

 

     3. Section 83(b) Election. The parties agree that the Fair Market Value of each
Covered Share as of the Grant Date is $10.00. The Participant, in his sole discretion, may make a
Section 83(b) Election with the IRS in the form of Exhibit A attached hereto. The
Participant understands that under applicable law such election must be filed with the IRS no later
than 30 days after any grant of the Covered Shares is to be effective. If the Participant files an
effective 83(b) Election, the excess of the fair market value of the Covered Shares (which the IRS
may assert is different from the Fair Market Value determined by the parties) covered by such
election shall be treated as ordinary income received by the Participant, and the Company or one of
its Subsidiaries shall withhold from Participant’s compensation all amounts required to be withheld
under applicable law. If the Participant does not file an 83(b) Election, future appreciation on
the Covered Shares will generally be taxable as ordinary income when such Covered Shares vest
pursuant to this Agreement. (See Exhibit A for additional information about the tax consequences.)
The foregoing discussion as well as the discussion in Exhibit A is based on Federal tax laws and
regulations presently in effect, which are subject to change, and the discussion does not purport
to be a complete description of the Federal income tax aspects of the program or grants under it.
The Participant may also be subject to state and local taxes in connection with the grant of
Covered Shares under the program. The Company suggests that the Participant consult with his
individual tax advisor to determine the applicability of the tax rules to the awards granted to him
in his personal circumstances.

     4. Dividends and Voting Rights. The Participant shall be entitled to receive any
dividends paid with respect to the Time Vesting Shares that become payable during the Restricted
Period; provided, however, that no dividends shall be payable to or for the benefit
of the Participant for Time Vesting Shares with respect to record dates occurring prior to the
Grant Date, or with respect to record dates occurring on or after the date, if any, on which the
Participant has forfeited those Time Vesting Shares. The Participant shall not be paid any
dividends with respect to the Performance Vesting Shares until the Participant has become vested in
such shares. At the time of vesting, the Participant shall receive a cash payment equal to the
aggregate dividends (without interest) that the Participant would have received if the Participant
had owned all of the Performance Vesting Shares in which the Participant vested for the period
beginning on the date of grant of those shares and ending on the date of vesting. No dividends
shall be paid to the Participant with respect to any Time Vesting Shares or any Performance Vesting
Shares that are forfeited by the Participant. The Participant shall be entitled to vote the
Covered Shares (whether Time Vesting Shares or Performance Vesting Shares) during the Restricted
Period to the same extent as would have been applicable to the Participant if the Participant was
then vested in the shares; provided, however, that the Participant shall not be
entitled to vote the shares with respect to record dates for such voting rights arising prior to
the Grant Date, or with respect to record dates occurring on or after the date, if any, on which
the Participant has forfeited those Covered Shares.

     5. Deposit of Covered Shares. Each certificate issued in respect of the Covered
Shares granted under this Agreement shall be registered in the name of the Participant and shall be
deposited in a bank designated by the Committee. During the Restricted Period, all certificates
evidencing the Restricted Stock will be imprinted with the

2

 

following legend: “The securities evidenced by this certificate are subject to the transfer
restrictions, forfeiture restrictions and other provisions of the Restricted Stock Agreement dated
November 3, 2006, between Coinmach Service Corp. and Ramon Norniella.” Notwithstanding the
foregoing, the Committee may, in its sole discretion, cause the Covered Shares to be held in
book-entry form on behalf of the Participant without the issuance of certificates.

     6. Transfer and Forfeiture of Shares.

	(a)	 	Time Vesting Shares. If the Date of Termination (as defined below) does not occur
during the Restricted Period with respect to any Installment of the Time Vesting Shares, then,
at the end of the Restricted Period for such shares, the Participant shall become vested in
those Time Vesting Shares, and shall own the shares free of all restrictions otherwise imposed
by this Agreement. With respect to all Time Vesting Shares, the “Restricted Period” shall
begin on the Grant Date. The “Restricted Period” with respect to each Installment of Time
Vesting Shares shown on the schedule shall end on the Vesting Date applicable to such
Installment (but only if the Date of Termination has not occurred before the Vesting Date):

	 	 	 	 	 
	 	 	 	 	VESTING
DATE

	 	 	 	 	APPLICABLE
TO

	INSTALLMENT	 	INSTALLMENT

	 	833	 	 	One-Year Anniversary of Grant Date

	 	833	 	 	Two-Year Anniversary of Grant Date

	 	834	 	 	Three-Year Anniversary of Grant Date

	(b)	 	Performance Vesting Shares. If the Date of Termination does not occur during the
Performance Period with respect to the Performance Vesting Shares, then, at the end of the
Performance Period for such shares, the Participant shall become vested in those Performance
Vesting Shares, and shall own the shares free of all restrictions otherwise imposed by this
Agreement, but only to the extent expressly provided by this paragraph 6. Except as otherwise
provided in this paragraph 6, if the Date of Termination occurs at or prior to the end of the
Performance Period, the Performance Vesting Shares shall be forfeited. With respect to all
Performance Vesting Shares, the “Performance Period” shall begin on the Grant Date and shall
end on March 31, 2009.

	 	(i)	 	Performance Goals. The vesting of Pool I Performance Vesting Shares
is not dependent on the satisfaction of the Performance Goal for Pool II Performance
Vesting Shares, and the vesting of Pool II Performance Vesting Shares is not dependent
on the satisfaction of the Performance Goal for Pool I Performance Vesting Shares.

	 	(A)	 	Pool I Performance Vesting Shares. The performance goal with
respect to Pool I Performance Vesting Shares shall be DCF of $48 million for the
fiscal year of the Company ending March 31, 2009.

3

 

	 	 	 	If the Performance Goal described in the preceding sentence is met as of the
end of the Performance Period, all Pool I Performance Vesting Shares shall
vest, and Participant shall own such Pool I Performance Vesting Shares free
of all restrictions otherwise imposed by this Agreement. Pool I Performance
Vesting Shares that have not vested at or prior to the end of the Performance
Period shall be forfeited.
	 
	 	(B)	 	Pool II Performance Vesting Shares. The Performance Goal with
respect to Pool II Performance Vesting Shares shall be Consolidated EBITDA of
$174 million for any four consecutive fiscal quarters beginning on or after
October 1, 2006 and ending on or prior to March 31, 2009. If the Performance
Goal described in the preceding sentence is met at any time during the
Performance Period, all Pool II Performance Vesting Shares shall vest, and the
Participant shall own such Pool II Performance Vesting Shares free of all
restrictions otherwise imposed by this Agreement. If the Performance Goal
described above is not met as of the end of the Performance Period, but
Consolidated EBITDA as of the end of the Performance Period is at least $165
million, an amount (expressed as a percentage) of Pool II Performance Vesting
Shares shall vest in accordance with the following schedule:

	 	 	 	 	 
	Consolidated EBITDA	 	 
	for the fiscal year of the Company ending	 	Vested Percentage of Pool II
	March 31, 2009	 	Performance Vesting Shares
	Less than $165 million
	 	 	0	%
	At least $165 million but less than $166 million
	 	 	25	%
	At least $166 million but less than $167 million
	 	 	30	%
	At least $167 million but less than $168 million
	 	 	35	%
	At least $168 million but less than $169 million
	 	 	40	%
	At least $169 million but less than $170 million
	 	 	50	%
	At least $170 million but less than $171 million
	 	 	60	%
	At least $171 million but less than $172 million
	 	 	75	%
	At least $172 million but less than $173 million
	 	 	85	%
	At least $173 million but less than $174 million
	 	 	95	%
	$174 million or greater
	 	 	100	%

	 	 	Pool II Performance Vesting Shares that have not vested by the end of the Performance
Period shall be forfeited.

	 	(C)	 	Satisfaction of Performance Goals. The determination as to
whether a Performance Goal with respect to Pool I Performance Shares and Pool II
Performance Shares shall have been met shall be made by the Board of Directors
following the review and/or audit, as applicable, by the Company’s independent
certified public

4

 

	 	 	 	accountants of the financial statements of the Company for the fiscal quarter
or fiscal year, as applicable, ending on the last day of the period during
which such Performance Goal is believed to have been met. Notwithstanding
any provision contained herein to the contrary, the Board of Directors shall
have the sole and absolute discretion to interpret the meaning of any
defined term contained herein used in the calculation of DCF and Consolidated
EBITDA, which interpretation shall be binding on Participant (whether or not
such interpretation is in accordance with GAAP or, for those term not defined
by GAAP, other commonly used definitions or measures). If and to the extent
Participant is a member on the Board of Directors at the time any such
determination described in this clause (C) is made, such Participant shall
abstain from taking part in such determination.

	(c)	 	Notwithstanding the foregoing provisions of this paragraph 6, the following provisions shall
apply to the Covered Shares, including both the Time Vesting Shares and the Performance
Vesting Shares:

	 	(i)	 	Change in Control. If the Participant’s Date of Termination does not
occur prior to a Change in Control, then as of the Change in Control, all Covered
Shares that have not previously vested shall vest and the Participant shall become the
owner of such shares free of all restrictions otherwise imposed by this Agreement.
	 
	 	(ii)	 	Death and Disability. If the Participant’s Date of Termination
occurs by reason of his death or Disability, then as of the Date of Termination, all
Covered Shares that have not previously vested shall vest and the Participant (or his
estate) shall become the owner of such shares free of all restrictions otherwise
imposed by this Agreement.
	 
	 	(iii)	 	Other Employment Termination. If the Participant’s Date of
Termination occurs for any reason other than the Participant’s death or Disability,
the Participant shall, as of a Date of Termination, forfeit the Covered Shares that
have not become vested as of that date.

	(d)	 	Transfer of Shares. Covered Shares may not be sold, assigned, transferred, pledged
or otherwise encumbered until the expiration of the Performance Period or, if earlier, until
the Participant is vested in the shares.

     7. Withholding. The grant and vesting of the Covered Shares under this Agreement are
subject to withholding of all applicable taxes. At the election of the Participant, and subject to
such rules and limitations as may be established by the Committee from time to time and subject to
any applicable loan commitments of the Company or its affiliates, such withholding obligations may
be satisfied through the surrender of shares of Class A common stock (i) which the Participant
already owns, or (ii) to which the Participant is otherwise entitled under the Plan;
provided, however, that

5

 

shares described in this clause (ii) may be used to satisfy not more than the Company’s
minimum statutory withholding obligation (based on minimum statutory withholding rates for Federal
and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable
income).

     8. Heirs and Successors. This Agreement shall be binding upon, and inure to the
benefit of, the Company and its successors and assigns, and upon any person acquiring, whether by
merger, consolidation, purchase of assets or otherwise, all or substantially all of the Company’s
assets and business. If any rights of the Participant or benefits distributable to the Participant
under this Agreement have not been exercised or distributed, respectively, at the time of the
Participant’s death, such rights shall be exercisable by the Designated Beneficiary, and such
benefits shall be distributed to the Designated Beneficiary, in accordance with the provisions of
this Agreement and the Plan. The “Designated Beneficiary” shall be the beneficiary or
beneficiaries designated by the Participant in a writing filed with the Committee in such form and
at such time as the Committee shall require. If a Participant fails to designate a beneficiary, or
if the Designated Beneficiary does not survive the Participant, any rights that would have been
exercisable by the Participant and any benefits distributable to the Participant shall be exercised
by or distributed to the legal representative of the estate of the Participant. If a Participant
designates a beneficiary and the Designated Beneficiary survives the Participant but dies before
the Designated Beneficiary’s exercise of all rights under this Agreement or before the complete
distribution of benefits to the Designated Beneficiary under this Agreement, then any rights that
would have been exercisable by the Designated Beneficiary shall be exercised by the legal
representative of the estate of the Designated Beneficiary, and any benefits distributable to the
Designated Beneficiary shall be distributed to the legal representative of the estate of the
Designated Beneficiary.

     9. Administration. The authority to manage and control the operation and
administration of this Agreement shall be vested in the Committee, and the Committee shall have all
powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of
the Agreement by the Committee and any decision made by it with respect to the Agreement is final
and binding.

     10. Plan Governs. Notwithstanding anything in this Agreement to the contrary, the
terms of this Agreement shall be subject to the terms of the Plan, a copy of which may be obtained
by the Participant from the office of the Secretary of the Company.

     11. Fractional Shares. In lieu of issuing a fraction of a share pursuant to paragraph
5.2(f) of the Plan or otherwise, the Company will be entitled to pay to the Participant an amount
equal to the Fair Market Value of such fractional share.

     12. Amendment. This Agreement may be amended in accordance with the provisions of the
Plan, and may otherwise be amended by written agreement of the Participant and the Company without
the consent of any other person.

6

 

     13. Applicable Law. The provisions of this Agreement shall be construed in accordance
with the laws of the State of New York, without regard to the conflict of law provisions of any
jurisdiction.

     14. Definitions. For purposes of this Agreement, the terms used in this Agreement
shall be subject to the following:

	(a)	 	Board of Directors. “Board of Directors” means the Board of Directors of the
Company.
	 
	(b)	 	Capital Expenditures. “Capital Expenditures” means, for any period, without
duplication, the sum of:

	 	(i)	 	the aggregate amount of all expenditures of the Company for property, plant
and equipment (excluding any property, plant and equipment acquired in connection with
acquisitions, including advance location payments to location owners and excluding
expenditures relating to additions to net assets related to acquisitions of
businesses) that are recorded as fixed or capital assets made during such period
which, in accordance with GAAP, would be classified as capital expenditures, and
	 
	 	(ii)	 	the aggregate amount of all cash payments made during such period in respect
of any capitalized lease obligation allocable to the principal component thereof;

	 	 	provided that the term “Capital Expenditures” shall not include (A) expenditures made in
connection with the replacement, substitution or restoration of assets (I) to the extent
financed from insurance proceeds paid on account of the loss of or damage to the assets
being replaced or restored or (II) with awards of compensation arising from the taking by
eminent domain or condemnation of the assets being replaced; (B) the purchase price of
equipment that is purchased simultaneously with the trade-in of existing equipment to the
extent that the gross amount of such purchase price is reduced by the credit granted by the
seller of such equipment for the equipment being traded in at such time; (C) a capitalized
lease obligation paid in respect of equipment that is leased in substitution for, or as
replacement in connection with the trade-in of, existing similar equipment; (D) the
purchase of plant, property or equipment made within one year of the sale of any asset in
replacement of such asset to the extent purchased with the proceeds of such sale, and a
capitalized lease obligation paid in respect of such replaced asset; and (E) expenditures
for property, plant and equipment that are financed to the extent of such financing,
provided that all cash payments made during such period in respect of such financing and
allocable to the principal component thereof shall be treated as a Capital Expenditure for
such period.
	 
	(c)	 	Cause. The term “Cause” means (i) if the applicable Participant is party to an
effective employment agreement with the Company or any of its Subsidiaries, “Cause” shall have
the same meaning as such term is defined therein; (ii) if the

7

 

	 	 	applicable Participant is not a party to an effective employment agreement but is a party
to an effective equity award agreement pursuant to any stock incentive plan of the Company,
“Cause” shall have the same meaning as such term is defined therein; and (iii) if the
applicable Participant (A) commits an intentional act of fraud, embezzlement or theft in
connection with his duties or in the course of his employment, (B) commits intentional,
wrongful damage to property of the Company or its affiliates, (C) fails to perform the
material duties of his position after receipt of a written warning from the Company, (D) is
convicted of a felony, (E) violates Company policy, or (F) intentionally and wrongfully
discloses confidential information of the Company or its affiliates that has been harmful
to or has adversely affected the Company or its affiliates. For purposes of this letter,
no act on the Participant’s part shall be considered “intentional” if it was due primarily
to an error in judgment or negligence, but shall be considered intentional only if done by
the Participant not in good faith and without reasonable belief that such action or
omission was in the best interests of the Company; provided, however, that
if the Participant’s employment is subject to an employment agreement that contains a
definition of “Cause” or “Termination for Cause,” then, notwithstanding the foregoing
provisions of this definition or the provisions of this Agreement, the definition of
“Cause” or “Termination for Cause” in such employment agreement, rather than the foregoing
definition in this Agreement, shall apply to the Participant.
	 
	(d)	 	Change in Control. “Change in Control” has the meaning ascribed to such term in the
Plan.
	 
	(e)	 	Consolidated EBITDA. The term “Consolidated EBITDA” means, for any period, the sum
(without duplication) of:

	 	(i)	 	Consolidated Net Income, and
	 
	 	(ii)	 	to the extent Consolidated Net Income has been reduced thereby (A) all income
taxes of the Company paid or accrued in accordance with GAAP for such period (other
than income taxes attributable to extraordinary, unusual or nonrecurring gains or
losses or taxes attributable to sales or dispositions of assets outside the ordinary
course of business), (B) consolidated interest expense, and (C) consolidated non-cash
charges less any non-cash items increasing Consolidated Net Income for such period,

	 	 	all as determined on a consolidated basis for the Company in accordance with GAAP. In
addition to and without limitation of the foregoing, for purposes of this definition,
“Consolidated EBITDA” shall be calculated after giving effect on a pro forma basis for the
applicable period of such calculation to any asset sales, acquisitions or other
dispositions occurring during such applicable period as if such asset sale, acquisition or
disposition occurred on the first day of such applicable period, and including any pro
forma expense and cost reductions calculated on a basis consistent with Regulation S-X
under the Securities Exchange Act of 1934, as amended.

8

 

	(f)	 	Consolidated Interest Expense. “Consolidated Interest Expense” means, for any
period, the aggregate of interest expense of the Company for such period on a consolidated
basis as determined in accordance with GAAP, excluding amortization or write-off of deferred
financing costs and debt issuance costs during such period and any premium or penalty paid in
connection with redeeming or retiring indebtedness of the Company and its Subsidiaries prior
to the stated maturity thereof pursuant to the agreements governing such indebtedness and
including, without duplication, (a) all amortization of original issue discount; (b) the
interest component of capitalized lease obligations paid, accrued and/or scheduled to be paid
or accrued during such period; (c) net cash costs under all interest rate swaps, caps, floors,
collars or similar obligations or agreements (including amortization of fees); (d) all
capitalized interest; and (e) the interest portion of any deferred payment obligations for
such period.
	 
	(g)	 	Consolidated Net Income. “Consolidated Net Income” means, for any period, the
aggregate net income (or loss) of the Company for such period on a consolidated basis,
determined in accordance with GAAP; provided that there shall be excluded therefrom (A)
after-tax gains and losses from asset sales or abandonments or reserves relating thereto, (B)
after-tax items classified as extraordinary or nonrecurring gains, (C) the net income (but not
loss) of any Subsidiary of the Company to the extent that the declaration of dividends or
similar distributions by that Subsidiary of that income is restricted by a contract, operation
of law or otherwise, (D) any restoration to income of any material contingency reserve, except
to the extent that provision for such reserve was made out of Consolidated Net Income accrued,
(E) income or loss attributable to discontinued operations (including, without limitation,
operations disposed of during such period whether or not such operations were classified as
discontinued), (F) all gains and losses realized on or because of the purchase or other
acquisition by the Company of any securities of the Company, (G) amortization charges
resulting from purchase accounting adjustments, (H) in the case of a successor to the Company
by consolidation or merger or as a transferee of the Company’s assets, any earnings of the
successor corporation prior to such consolidation, merger or transfer of assets, (I) write
downs resulting from the impairment of intangible assets, (J) the amount of amortization or
write-off of deferred financing costs and debt issuance costs of Company during such period
and any premium or penalty paid in connection with redeeming or retiring indebtedness of the
Company prior to the stated maturity thereof pursuant to the agreements governing such
indebtedness, (K) costs paid to unwind interest rate swaps, caps, floors, collars or similar
obligations agreements, and (L) non-cash charges related to employee compensation.
	 
	(h)	 	Date of Termination. The term “Date of Termination” means the first day occurring on
or after the Grant Date on which the Participant is not employed by the Company or any
Subsidiary, regardless of the reason for the termination of employment; provided that
a termination of employment shall not be deemed to occur by reason of a transfer of the
Participant between the Company and a

9

 

	 	 	Subsidiary or between two Subsidiaries; and further provided that the Participant’s
employment shall not be considered terminated while the Participant is on a leave of
absence from the Company or a Subsidiary approved by the Participant’s employer. If the
Participant is employed by a Subsidiary and if, as a result of a sale or other transaction,
the Participant’s employer ceases to be a Subsidiary (and the Participant’s employer is or
becomes an entity that is separate from the Company), and the Participant is not, at the
end of the 30-day period following the transaction, employed by the Company or an entity
that is then a Subsidiary, then the occurrence of such transaction shall be treated as the
Participant’s Date of Termination caused by the Participant being discharged by the
employer.
	 
	(i)	 	DCF. The term “DCF” means Consolidated EBITDA of the Company for the consecutive
twelve month period ending March 31, 2009 minus

	 	(i)	 	the sum, without duplication, of:

	 	(A)	 	Consolidated Interest Expense,
	 
	 	(B)	 	Capital Expenditures,
	 
	 	(C)	 	cash tax payments in respect of federal and state income taxes,
	 
	 	(D)	 	net changes in Working Capital and
	 
	 	(E)	 	extraordinary cash charges,

	 	 	 	plus
	 
	 	(ii)	 	the sum of:

	 	(A)	 	cash tax refunds in respect of federal and state income taxes and
	 
	 	(B)	 	extraordinary cash gains,

	 	 	 	in each case of the Company on a consolidated basis for or in such period.

	(j)	 	Disability. The Participant shall be considered to have a “Disability” during the
period in which the Participant is unable, by reason of a medically determinable physical or
mental impairment, to engage in any substantial gainful activity, which condition, in the
opinion of a physician selected by the Committee, is expected to have a duration of not less
than 120 days; provided, however, that if the Participant’s employment is
subject to an employment agreement that contains a definition of “Disability” or “Disabled,”
then, notwithstanding the foregoing provisions of this definition or the provisions of this
Agreement, the definition of “Disability” or “Disabled” in such employment agreement, rather
than the foregoing definition in this Agreement, shall apply to the Participant.

10

 

	(k)	 	GAAP. The term “GAAP” means generally accepted accounting principles in the United
States of America.
	 
	(l)	 	IRS. The term “IRS” means the Internal Revenue Service.
	 
	(m)	 	Plan Definitions. Except where the context clearly implies or indicates the
contrary, a word, term, or phrase used in the Plan is similarly used in this Agreement.
	 
	(n)	 	Section 83(b) Election. The term “Section 83(b) Election” means an election made with
the IRS under Section 83(b) of the Code and the regulations promulgated thereunder.
	 
	(o)	 	Working Capital. The term “Working Capital” means, at any date of determination, the
consolidated assets of the Company that are classified as current assets in accordance with
GAAP, less the consolidated liabilities of the Company which are classified as current
liabilities in accordance with GAAP.

     IN WITNESS WHEREOF, the Participant has executed this Agreement, and the Company has caused
these presents to be executed in its name and on its behalf, all as of the Grant Date.

	 	 	 	 	 
	 

	 	Participant
	 	 
	 
	 	 	 	 
	 

	 	/s/ Ramon Norniella	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	COINMACH SERVICE CORP.	 	 
	 
	 	 	 	 
	 

	 	/s/ Stephen R. Kerrigan	 	 
	 

	 	 	 	 
	 

	 	By: Stephen R. Kerrigan	 	 
	 

	 	Its: President and Chief Executive Officer	 	 

11

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