Document:

Stock Bonus Plan

 

 

UQM TECHNOLOGIES, INC.

STOCK BONUS PLAN

(amended and restated

effective July 28, 2005)

 

 

Table of Contents

  
                       
    ARTICLE I INTRODUCTION

  

  
    
      
        
          1.1 Establishment.

          1.2 Purposes

          1.3 Effective Date; Amendment and Restatement

        

      

      
        ARTICLE II DEFINITIONS

        
          2.1 Definitions

          2.2 Gender and Number

        

        ARTICLE III PLAN ADMINISTRATION

        
          3.1 General

          3.2 Delegation by Committee

          3.3 Non-Employee Directors

        

        ARTICLE IV STOCK SUBJECT TO THE PLAN

        
          4.1 Number of Shares

          4.2 Other Shares of Stock

          4.3 Adjustments for Stock Split, Stock Dividend, Etc.

          4.4 Other Distributions and Changes in the Stock

          4.5 General Adjustment Rules

          4.6 Determination by the Committee, Etc.

        

        ARTICLE V CORPORATE REORGANIZATION; CHANGE IN CONTROL

        
          5.1 Vesting of Awards

          5.2 Assumption or Substitution of Awards

          5.3 Corporate Transaction

        

        ARTICLE VI PARTICIPATION

        ARTICLE VII RESTRICTED STOCK AWARDS

        
          7.1 Grant of Restricted Stock Awards

          7.2 Restrictions

          7.3 Privileges of a Stockholder, Transferability

          7.4 Enforcement of Restrictions

        

        ARTICLE VIII STOCK BONUSES

        ARTICLE IX RIGHTS OF PARTICIPANTS

        
          9.1 Service

          9.2 Nontransferability of Awards

          9.3 No Plan Funding

        

        ARTICLE X GENERAL RESTRICTIONS

        
          10.1 Investment Representations

          10.2 Compliance with Securities Laws

          10.3 Changes in Accounting Rules

          10.4 Tax Laws.

        

        ARTICLE XI OTHER EMPLOYEE BENEFITS

        ARTICLE XII PLAN AMENDMENT, MODIFICATION AND TERMINATION

        ARTICLE XIII WITHHOLDING

        
          13.1 Withholding Requirement

          13.2 Withholding With Stock

        

        ARTICLE XIV REQUIREMENTS OF LAW

        
          14.1 Requirements of Law

          14.2 Federal Securities Law Requirements

          14.3 Governing Law

        

        ARTICLE XV DURATION OF THE PLAN

      

    

  

 

UQM TECHNOLOGIES, INC.

STOCK BONUS PLAN

ARTICLE I

INTRODUCTION

1.1  Establishment. UQM
Technologies, Inc., formerly known as Unique Mobility, Inc., a Colorado corporation,
previously established the Unique Mobility Stock Bonus Plan (the "Plan") for
certain employees of the Company (as defined in subsection 0). The Plan permits the grant
of restricted stock awards and stock bonuses to employees of the Company and was
previously amended and restated to permit grants of restricted stock awards to eligible
consultants and non-employee directors.

1.2  Purposes. The purposes of
the Plan are to provide those who are selected for participation in the Plan with added
incentives to continue in the long-term service of the Company and to create in such
persons a more direct interest in the future success of the operations of the Company by
relating incentive compensation to increases in shareholder value, so that the income of
those participating in the Plan is more closely aligned with the income of the
Company’s shareholders. The Plan, as amended and restated, is also designed to
provide a financial incentive that will help the Company attract, retain and motivate the
most qualified employees, consultants, and directors.

1.3  Effective Date; Amendment and
Restatement. The Plan is hereby amended and restated to
increase the number of shares eligible for the grant of restricted stock awards and stock
bonuses and to provide that awards will vest upon retirement. The amendment and
restatement shall become effective upon approval by the stockholders of the Company at the
annual meeting on July 28, 2005.

ARTICLE II 

DEFINITIONS

2.1  Definitions. The
following terms shall have the meanings set forth below:

"Affiliated Corporation" means any corporation or
other entity that is affiliated with UQM Technologies, Inc. through stock ownership or
otherwise and is designated as an "Affiliated Corporation" by the Board.

"Award" means a Restricted
Stock Award or other issuances of Stock hereunder.

"Board" means the Board of Directors of UQM
Technologies, Inc.

"Code" means the Internal Revenue Code of 1986, as it
may be amended from time to time.

"Committee" means a committee consisting of members
of the Board who are empowered hereunder to take actions in the administration of the
Plan. If applicable, the Committee shall be so constituted at all times as to permit the
Plan to comply with Rule 16b-3 or any successor rule promulgated under the Exchange Act.
Except as provided in Section 0 and 0, the Committee shall select Participants from
Eligible Employees, Eligible Consultants, and Non-Employee Directors of the Company and
shall determine the awards to be made pursuant to the Plan and the terms and conditions
thereof.

"Company" means UQM
Technologies, Inc. and the Affiliated Corporations.

"Disabled" or "Disability"
shall have the meaning given to such terms in Section 22(e)(3) of the Code.

"Effective Date" means the date the shareholders of
the Company approve the amended and restated Plan at the annual meeting in 2005.

"Eligible Consultants" means those consultants to the
Company who are determined, by the Committee, to be individuals whose services are
important to the Company and who are eligible to receive Awards under the Plan.

"Eligible Employees" means those employees
(including, without limitation, officers and directors who are also employees) of the
Company or any subsidiary or division thereof, upon whose judgment, initiative and efforts
the Company is, or will become, largely dependent for the successful conduct of its
business. For purposes of the Plan, an employee is any individual who provides services to
the Company or any subsidiary or division thereof as a common law employee and whose
remuneration is subject to the withholding of federal income tax pursuant to Section 3401
of the Code. Employee shall not include any individual (A) who provides services to the
Company or any subsidiary or division thereof under an agreement, contract, or any other
arrangement pursuant to which the individual is initially classified as an independent
contractor or (B) whose remuneration for services has not been treated initially as
subject to the withholding of federal income tax pursuant to Section 3401 of the Code even
if the individual is subsequently reclassified as a common law employee as a result of a
final decree of a court of competent jurisdiction or the settlement of an administrative
or judicial proceeding. Leased employees shall not be treated as employees under this
Plan.

"Exchange Act" shall mean the Securities Exchange Act
of 1934, as it may be amended from time to time.

"Fair Market Value" means, as of a given date, (i)
the closing price of a Share on the principal stock exchange on which Shares are then
trading, if any (or as reported on any composite index that includes such principal
exchange) on such date, or if Shares were not traded on such date, then on the next
preceding date on which a trade occurred; or (ii) if the Stock is not traded on an
exchange but is quoted on Nasdaq or a successor quotation system, the mean between the
closing representative bid and asked prices for the Stock on such date as reported by
Nasdaq or such successor quotation system; or (iii) if the Stock is not publicly traded on
an exchange and not quoted on Nasdaq or a successor quotation system, the Fair Market
Value of a Share shall be determined by the Committee acting in good faith.

"Non-Employee Director" means a member of the
Company’s Board of Directors who is not an employee.

"Participant" means an Eligible Employee, Eligible
Consultant, or Non-Employee Director designated by the Committee from time to time during
the term of the Plan to receive one or more of the Awards provided under the Plan.

"Restricted Stock Award" means an award of Stock
granted to a Participant pursuant to 0 that is subject to certain restrictions imposed in
accordance with the provisions of such Section.

"Retirement" means termination of services on or
after the Participant’s 65th birthday or pursuant to an early retirement
provision in an employment agreement between the Company and the Participant.

"Securities Act" means the Securities Act of 1933, as
it may be amended from time to time.

"Share" means one whole share of Stock.

"Stock" means the $0.01 par value common stock of UQM
Technologies, Inc.

"Stock Bonus" means either an outright grant of Stock
or a grant of Stock subject to and conditioned upon certain employment or performance
related goals.

2.2  Gender and Number. Except
when otherwise indicated by the context, the masculine gender shall also include the
feminine gender, and the definition of any term herein in the singular shall also include
the plural.

ARTICLE III

PLAN ADMINISTRATION

3.1  General. The Plan shall
be administered by the Committee. In accordance with the provisions of the Plan, the
Committee shall, in its sole discretion, select the Participants from among the Eligible
Employees and Eligible Consultants, determine the Awards to be made pursuant to the Plan,
or shares of Stock to be issued thereunder and the time at which such Awards are to be
made, establish the duration and nature of Restricted Stock Award restrictions, establish
the terms and conditions applicable to Stock Bonuses, and establish such other terms and
requirements of the various compensation incentives under the Plan as the Committee may
deem necessary or desirable and consistent with the terms of the Plan. The Committee shall
determine the form or forms of the agreements with Participants that shall evidence the
particular provisions, terms, conditions, rights and duties of the Company and the
Participants with respect to Awards granted pursuant to the Plan, which provisions need
not be identical except as may be provided herein. The Committee may from time to time
adopt such rules and regulations for carrying out the purposes of the Plan as it may deem
proper and in the best interests of the Company. The Committee may correct any defect,
supply any omission or reconcile any inconsistency in the Plan or in any agreement entered
into hereunder in the manner and to the extent it shall deem expedient and it shall be the
sole and final judge of such expediency. No member of the Committee shall be liable for
any action or determination made in good faith. The determinations, interpretations and
other actions of the Committee pursuant to the provisions of the Plan shall be binding and
conclusive for all purposes and on all persons.

3.2  Delegation by Committee. The
Committee may, from time to time, delegate, to specified officers of the Company, the
power and authority to grant Awards under the Plan to specified groups of Eligible
Employees and Eligible Consultants, subject to such restrictions and conditions as the
Committee, in its sole discretion, may impose. The delegation shall be as broad or as
narrow as the Committee shall determine. To the extent that the Committee has delegated
the authority to determine certain terms and conditions of an Award, all references in the
Plan to the Committee’s exercise of authority in determining such terms and
conditions shall be construed to include the officer or officers to whom the Committee has
delegated the power and authority to make such determination. The power and authority to
grant Awards to any Eligible Employee or Eligible Consultant who is covered by Section
16(b) of the Exchange Act or who is, or may become, subject to Code section 162(m) shall
not be delegated by the Committee.

3.3  
Non-Employee Directors. The Board may grant one or more Awards to Non-Employee
directors from time to time. In the case of grants to Non-Employee Directors, all
references in the Plan to the Committee’s exercise of authority in determining terms
and conditions of the Award and otherwise administering the Award shall be construed to
include the Board.

ARTICLE IV

STOCK SUBJECT TO THE PLAN

4.1  Number of Shares. The
maximum aggregate number of Shares that may be issued under the Plan pursuant to Awards is
554,994 Shares. Notwithstanding anything to the contrary contained herein, no Award
granted hereunder shall become void or otherwise be adversely affected solely because of a
change in the number of Shares of the Company that are issued and outstanding from time to
time, provided that changes to the issued and outstanding Shares may result in adjustments
to outstanding Awards in accordance with the provisions of this 0. The Shares may be
either authorized and unissued Shares or previously issued Shares acquired by the Company.
Such maximum numbers may be increased from time to time by approval of the Board and by
the stockholders of the Company if, in the opinion of counsel for the Company, stockholder
approval is required. 

4.2  Other Shares of Stock.
Any Shares that are subject to an Award and that are forfeited, and any Shares withheld
for the payment of taxes shall automatically become available for use under the Plan. 

4.3  
Adjustments for Stock Split, Stock Dividend, Etc. If the Company shall at any time
increase or decrease the number of its outstanding Shares or change in any way the rights
and privileges of such Shares by means of the payment of a stock dividend or any other
distribution upon such Shares payable in Stock, or through a stock split, subdivision,
consolidation, combination, reclassification or recapitalization involving the Stock, then
in relation to the Stock that is affected by one or more of the above events, the numbers,
rights and privileges of the following shall be increased, decreased or changed in like
manner as if they had been issued and outstanding, fully paid and nonassessable at the
time of such occurrence: (i) the Shares as to which Awards may be granted under the
Plan, (ii) the Shares then included in each outstanding Award granted hereunder, and
(iii)  the number of Shares subject to a delegation of authority under Section 0 of
this Plan.

4.4  Other Distributions and Changes in the Stock. If

The Company shall at any time distribute with respect to the Stock
assets or securities of persons other than the Company (excluding cash or distributions
referred to in Section 0), or

The Company shall at any time grant to the holders of its Stock rights
to subscribe pro rata for additional shares thereof or for any other securities of
the Company, or

There shall be any other change (except as described in Section 0) in
the number or kind of outstanding Shares or of any stock or other securities into which
the Stock shall be changed or for which it shall have been exchanged, and if the Committee
shall in its discretion determine that the event described in subsection 0, 0, or 0 above
equitably requires an adjustment in the number or kind of Shares subject to an Award or
the taking of any other action by the Committee, including without limitation, the setting
aside of any property for delivery to the Participant upon the full vesting of an Award,
then such adjustments shall be made, or other action shall be taken, by the Committee and
shall be effective for all purposes of the Plan and on each outstanding Award that
involves the particular type of stock for which a change was effected. Notwithstanding the
foregoing provisions of this Section 0, pursuant to Section 0 below, a Participant holding
Stock received as a Restricted Stock Award shall have the right to receive all amounts,
including cash and property of any kind, distributed with respect to the Stock after such
Restricted Stock Award was granted upon the Participant’s becoming a holder of record
of the Stock.

4.5  
General Adjustment Rules. No adjustment or substitution provided for in this 0
shall require the Company to issue a fractional Share, and the total substitution or
adjustment with respect to each Award shall be limited by deleting any fractional Share.
Notwithstanding the provisions of this 0, if any Award is covered by Code section 409A,
any and all adjustments shall be made in a manner that is consistent with Code section
409A.

4.6  Determination by the Committee, Etc.
Adjustments under this 0 shall be made by the Committee, whose determinations with
regard thereto shall be final and binding upon all parties thereto.

ARTICLE V

CORPORATE REORGANIZATION; CHANGE IN
CONTROL

5.1  Vesting of Awards. Unless
the Committee provides otherwise at the time an Award is granted, upon the occurrence of a
Corporate Transaction (as defined in Section 5.3), all restrictions with respect to
the Awards shall lapse. The Committee may also provide for the assumption or substitution
of any or all Awards as described in Section 5.2 and make any other provision for
outstanding Awards as the Committee deems appropriate. The Committee need not take the
same action with respect to all outstanding Awards.

5.2  Assumption or Substitution of Awards.
The Company, or the successor or purchaser, as the case may be, may make adequate
provision for the assumption of the outstanding Awards or the substitution of new Awards
for the outstanding Awards on terms comparable to the outstanding Awards.

5.3  Corporate Transaction. A
Corporate Transaction shall include the following:

Merger; Reorganization: the merger or consolidation of the
Company with or into another corporation or other reorganization (other than a
reorganization under the United States Bankruptcy Code) of the Company (other than a
consolidation, merger, or reorganization in which the Company is the continuing
corporation and which does not result in any reclassification or change of outstanding
shares of Stock); or

Sale: the sale or conveyance of the property of the Company as
an entirety or substantially as an entirety (other than a sale or conveyance in which the
Company continues as a holding company of an entity or entities that conduct the business
or businesses formerly conducted by the Company) or the sale of more than 50% of the
outstanding voting stock of the Company; or

Liquidation: the dissolution or liquidation of the Company; or

Change in Control: A "Change in Control" shall be
deemed to have occurred if at any time during any period of two consecutive years
(including any period prior to the Effective Date), individuals who at the beginning of
such period constitute the Board (and any new director whose election by the Board or
whose nomination for election by the Company’s stockholders was approved by a vote of
at least two-thirds of the directors then still in office who either were directors at the
beginning of such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority thereof; or

Other Transactions: any other transaction that the Board
determines by resolution to be a Corporate Transaction.

ARTICLE VI

PARTICIPATION

Participants in the Plan shall be those Eligible Employees who, in the
judgment of the Committee, are performing, or during the term of their incentive
arrangement will perform, vital services in the management, operation and development of
the Company, and significantly contribute, or are expected to significantly contribute, to
the achievement of long-term corporate economic objectives. Eligible Consultants shall be
selected from those non-employee consultants to the Company who are performing services
important to the operation and growth of the Company. From time to time, the Board may
grant Awards to Non-Employee Directors. Participants may be granted from time to time one
or more Awards; provided, however, that the grant of each such Award shall be separately
approved by the Committee and receipt of one such Award shall not result in automatic
receipt of any other Award. Upon determination by the Committee that an Award is to be
granted to a Participant, written notice shall be given to such person, specifying the
terms, conditions, rights and duties related thereto. Each Participant shall, if required
by the Committee, enter into an agreement with the Company, in such form as the Committee
shall determine and which is consistent with the provisions of the Plan, specifying such
terms, conditions, rights and duties. Awards shall be deemed to be granted as of the date
specified in the grant resolution of the Committee, which date shall be the date of any
related agreement with the Participant. In the event of any inconsistency between the
provisions of the Plan and any such agreement entered into hereunder, the provisions of
the Plan shall govern.

ARTICLE VII

RESTRICTED STOCK AWARDS

7.1  Grant of Restricted Stock Awards. Coincident
with or following designation for participation in the Plan, the Committee may grant a
Participant one or more Restricted Stock Awards consisting of Shares of Stock. The number
of Shares granted as a Restricted Stock Award shall be determined by the Committee.

7.2  Restrictions. A
Participant’s right to retain a Restricted Stock Award granted to him under Section 0
shall be subject to such restrictions, including but not limited to his continuous
employment by or performance of services for the Company or service on the Board for a
restriction period specified by the Committee or the attainment of specified performance
goals and objectives, as may be established by the Committee with respect to such Award.
The Committee may in its sole discretion require different periods of service or different
performance goals and objectives with respect to different Participants, to different
Restricted Stock Awards or to separate, designated portions of the Shares constituting a
Restricted Stock Award. 

Pro Rata Vesting Upon Death or Disability. In the event of the
death or Disability of a Participant, all required periods of service and other
restrictions applicable to Restricted Stock Awards then held by him shall lapse with
respect to a pro rata part of each such Award based on the ratio between the number
of full months of employment or services completed at the time of termination of services
from the grant of each Award to the total number of months of employment or continued
services required for such Award to be fully nonforfeitable, and such portion of each such
Award shall become fully nonforfeitable. The remaining portion of each such Award shall be
forfeited and shall be immediately returned to the Company. 

Full Vesting Upon Retirement. In the event of the a
Participant’s Retirement, all required periods of service and other restrictions
applicable to Restricted Stock Awards then held by him shall lapse, and each such Award
shall become fully nonforfeitable. 

Forfeiture Upon Other Termination of Services. If a
Participant’s employment, consulting services, or Board service terminates for any
reason other than death, Disability, or Retirement, any Restricted Stock Awards as to
which the period for which services are required or other restrictions have not been
satisfied (or waived or accelerated as provided herein) shall be forfeited, and all shares
of Stock related thereto shall be immediately returned to the Company.

7.3  
Privileges of a Stockholder, Transferability. A Participant shall have all voting,
dividend, liquidation and other rights with respect to Stock in accordance with its terms
received by him as a Restricted Stock Award under this 0 upon his becoming the holder of
record of such Stock; provided, however, that the Participant’s right to sell,
encumber, or otherwise transfer such Stock shall be subject to the limitations of Section
0.

7.4  Enforcement of Restrictions.
The Committee shall cause a legend to be placed on the Stock certificates issued pursuant
to each Restricted Stock Award referring to the restrictions provided by Sections 0 and 0
and, in addition, may in its sole discretion require one or more of the following methods
of enforcing the restrictions referred to in Sections 0 and 0:

Requiring the Participant to keep the Stock certificates, duly
endorsed, in the custody of the Company while the restrictions remain in effect; or

Requiring that the Stock certificates, duly endorsed, be held in the
custody of a third party while the restrictions remain in effect.

ARTICLE VIII

STOCK
BONUSES

The Committee may award Stock Bonuses to such Participants, subject to
such conditions and restrictions, as it determines in its sole discretion. Stock Bonuses
may be either outright grants of Stock, or may be grants of Stock subject to and
conditioned upon certain employment or performance related goals.

ARTICLE IX

RIGHTS OF PARTICIPANTS

9.1  Service. Nothing
contained in the Plan or in any Award granted under the Plan shall confer upon any
Participant any right with respect to the continuation of his employment by, or consulting
relationship with, or membership on the Board of Directors of, the Company, or interfere
in any way with the right of the Company, subject to the terms of any separate employment
agreement or other contract to the contrary, at any time to terminate such services or to
increase or decrease the compensation of the Participant from the rate in existence at the
time of the grant of an Award. Whether an authorized leave of absence, or absence in
military or government service, shall constitute a termination of service shall be
determined by the Committee at the time.

9.2  Nontransferability of Awards. No right or
interest of any Participant in a Restricted Stock Award (prior to the completion of the
restriction period applicable thereto) or other Award granted pursuant to the Plan shall
be assignable or transferable during the lifetime of the Participant, either voluntarily
or involuntarily, or subjected to any lien, directly or indirectly, by operation of law,
or otherwise, including execution, levy, garnishment, attachment, pledge or bankruptcy. In
the event of a Participant’s death, a Participant’s rights and interests in
Restricted Stock Awards and other Awards shall, to the extent provided in 0 and 0, be
transferable by will or the laws of descent and distribution, and payment of any amounts
due under the Plan shall be made to the Participant’s legal representatives, heirs or
legatees. If in the opinion of the Committee a person entitled to payments or to exercise
rights with respect to the Plan is disabled from caring for his affairs because of mental
condition, physical condition or age, payment due such person may be made to, and such
rights shall be exercised by, such person’s guardian, conservator or other legal
personal representative upon furnishing the Committee with evidence satisfactory to the
Committee of such status.

9.3  No Plan Funding.
Obligations to Participants under the Plan will not be funded, trusteed, insured or
secured in any manner. The Participants under the Plan shall have no security interest in
any assets of the Company, and shall be only general creditors of the Company.

 

ARTICLE X

GENERAL
RESTRICTIONS

10.1  Investment Representations.
The Company may require any person to whom a Restricted Stock Award or Stock Bonus is
granted, as a condition of receiving such Restricted Stock Award or Stock Bonus to give
written assurances in substance and form satisfactory to the Company and its counsel to
the effect that such person is acquiring the Stock for his own account for investment and
not with any present intention of selling or otherwise distributing the same, and to such
other effects as the Company deems necessary or appropriate in order to comply with
Federal and applicable state securities laws. Legends evidencing such restrictions may be
placed on the Stock certificates.

10.2  Compliance with Securities Laws.
Prior to granting any Awards under the Plan, the Company shall consult with securities
counsel to the Company to determine the necessity of registering the Stock subject to the
Awards. Each Restricted Stock Award and Stock Bonus grant shall be subject to the
requirement that, if at any time counsel to the Company shall determine that the listing,
registration or qualification of the shares subject to such Restricted Stock Award or
Stock Bonus grant upon any securities exchange or under any state or federal law, or the
consent or approval of any governmental or regulatory body, is necessary as a condition
of, or in connection with, the issuance or purchase of shares thereunder, such Restricted
Stock Award or Stock Bonus grant may not be accepted or exercised in whole or in part
unless such listing, registration, qualification, consent or approval shall have been
effected or obtained on conditions acceptable to the Committee. Nothing herein shall be
deemed to require the Company to apply for or to obtain such listing, registration or
qualification.

10.3  Changes in Accounting Rules.
Except as provided otherwise at the time an Award is granted, notwithstanding any other
provision of the Plan to the contrary, if, during the term of the Plan, any changes in the
financial or tax accounting rules applicable to Restricted Stock Awards or other Awards
shall occur which, in the sole judgment of the Committee, may have a material adverse
effect on the reported earnings, assets or liabilities of the Company, the Committee shall
have the right and power to modify as necessary, any then outstanding Restricted Stock
Awards and other outstanding Awards as to which the applicable services or other
restrictions have not been satisfied.

10.4  Tax Laws. Except as
provided otherwise at the time an Award is granted, notwithstanding any other provision of
the Plan to the contrary, if, during the term of the Plan, any changes in the tax laws or
regulations applicable to any Awards or to any Participants shall occur which, in the sole
judgment of the Committee, may have a material adverse effect on the items of income,
gain, loss, or deduction of the Company for tax purposes, the Committee shall have the
right and power to modify as necessary any then outstanding Awards as to which the
applicable services or other restrictions have not been satisfied. In particular, the
Committee shall have the right and power to modify any outstanding Awards as necessary to
satisfy the requirements of section 409A of the Code. Any Award that is intended to be
treated as "performance-based compensation" under section 162(m) of the Code
shall be granted, administered and paid in compliance with the requirements of Code
section 162(m).

ARTICLE XI

OTHER EMPLOYEE BENEFITS

The amount of any compensation deemed to be received by a Participant
as a result of the vesting of any Restricted Stock Award or the receipt of Stock Bonuses
shall not constitute "earnings" or "compensation" with respect to
which any other employee benefits of such employee are determined, including without
limitation benefits under any pension, profit sharing, 401(k), life insurance or salary
continuation plan.

 

ARTICLE XII

PLAN AMENDMENT, MODIFICATION AND TERMINATION

The Board may at any time terminate, and from time to time may amend or
modify the Plan provided, however, that no amendment or modification may become effective
without approval of the amendment or modification by the shareholders if shareholder
approval is required to enable the Plan to satisfy any applicable statutory or regulatory
requirements, or if the Company, on the advice of counsel, determines that shareholder
approval is otherwise necessary or desirable.

No amendment, modification or termination of the Plan shall in any
manner adversely affect any Restricted Stock Awards or other Award theretofore granted
under the Plan, without the consent of the Participant holding such Restricted Stock
Awards or other Awards, except as provided in 0.

 

ARTICLE XIII

WITHHOLDING

13.1  Withholding Requirement.
The Company’s obligations to deliver shares of Stock upon the vesting of any
Restricted Stock Award or the grant of a Stock Bonus shall be subject to the
Participant’s satisfaction of all applicable federal, state and local income and
other tax withholding requirements.

13.2  Withholding With Stock.
At the time the Committee grants a Restricted Stock Award or Stock Bonus or at any time
thereafter, it may, in its sole discretion, grant the Participant an election to pay all
such amounts of tax withholding, or any part thereof, by electing (a) to have the Company
withhold from shares otherwise issuable to the Participant, shares of Stock having a value
equal to the amount required to be withheld or such lesser amount as may be elected by the
Participant; provided however, that the amount of Stock so withheld shall not exceed the
minimum amount required to be withheld under the method of withholding that results in the
smallest amount of withholding, or (b) to transfer to the Company a number of shares of
Stock that were acquired by the Participant more than six months prior to the transfer to
the Company and that have a value equal to the amount required to be withheld or such
lesser amount as may be elected by the Participant. All elections shall be subject to the
approval or disapproval of the Committee. The value of shares of Stock to be withheld
shall be based on the Fair Market Value of the Stock on the date that the amount of tax to
be withheld is to be determined (the "Tax Date"). Any such elections by
Participants to have shares of Stock withheld for this purpose will be subject to the
following restrictions:

All elections must be made prior to the Tax Date.

All elections shall be irrevocable.

If the Participant is an officer or director of the Company within the
meaning of Section 16 of the Exchange Act ("Section 16"), the Participant must
satisfy the requirements of such Section 16 and any applicable Rules thereunder with
respect to the use of Stock to satisfy such tax withholding obligation.

ARTICLE XIV

REQUIREMENTS OF LAW

14.1  Requirements of Law. The
issuance of Stock and the payment of cash pursuant to the Plan shall be subject to all
applicable laws, rules and regulations.

14.2  Federal Securities Law Requirements.
If a Participant is an officer or director of the Company within the meaning of Section
16, Awards granted hereunder shall be subject to all conditions required under Rule 16b-3,
or any successor rule promulgated under the Exchange Act, to qualify the Award for any
exception from the provisions of Section 16(b) of the Exchange Act available under that
Rule. Such conditions shall be set forth in the agreement with the Participant which
describes the Award or other document evidencing or accompanying the Award.

14.3  Governing Law. The Plan
and all agreements hereunder shall be construed in accordance with and governed by the
laws of the State of Colorado.

 

ARTICLE XV 

DURATION OF THE PLAN

The Plan shall continue until it is terminated by resolution of the
Board of Directors. No Restricted Stock Award or Stock Bonus shall be granted, or offer to
purchase Stock made, after such termination. Restricted Stock Awards and other Awards
outstanding at the time of the Plan termination may continue to be exercised, or become
free of restrictions, or paid, in accordance with their terms.

	Dated:
	August 11 ,
	2005
	
		UQM TECHNOLOGIES,
    INC.       

		a Colorado
    corporation                        

		By:
	/s/ Donald A. FrenchEXHIBIT 10.1

AMENDED AND RESTATED SENIOR MANAGEMENT AGREEMENT

            THIS AMENDED AND RESTATED SENIOR MANAGEMENT AGREEMENT (this "Agreement") is made as of June 7, 2005 by and among Coinmach Corporation, a Delaware corporation (the
"Company"), Coinmach Holdings, LLC, a Delaware limited liability company ("Holdings"), Coinmach Service Corp., a Delaware corporation ("CSC"), MCS Capital, Inc., a Delaware corporation ("MCS"), and
Stephen R. Kerrigan ("Executive").

            WHEREAS, the Company, MCS, Holdings and Executive are parties to a senior management agreement dated as of March 6, 2003 (as amended from time to time, the "Existing
Employment Agreement");

            WHEREAS, the Company, Holdings, MCS and Executive desire to amend and restate the Existing Employment Agreement and enter into this Agreement, which includes CSC as a party hereto;

            WHEREAS, on November 24, 2004, CSC completed the registered offer and sale to the public of its Income Deposit Securities (including shares of Class A Common Stock and 11% senior secured notes due
2024 of CSC underlying such Income Deposit Securities) ("IDSs") and 11% senior secured notes due 2024 of CSC not forming a part of any IDS (the offer and sale of such securities being collectively referred to as the "IPO");

            WHEREAS, as part of a series of corporate reorganizations and other transactions in connection with the IPO (the "Transactions"), voting control of CSC was given to Holdings
through its consolidated ownership of all the outstanding shares of Class B Common Stock;

            WHEREAS, as part of the Transactions, Coinmach Laundry Corporation, a Delaware corporation ("Coinmach Laundry"), became a wholly-owned subsidiary of CSC;

            WHEREAS, the Company is wholly-owned by Coinmach Laundry;

            WHEREAS, MCS is the owner of (i) 9,270,914 Common Units of Holdings, of which (A) 4,539,406 Common Units (the "Carried Common Units") were issued to MCS in exchange
for 4,539,406 shares of common stock of Coinmach Laundry (previously issued to MCS pursuant to an equity participation agreement), (B) 3,781,508 Common Units (the "Co-Invest Common Units") were issued to MCS in exchange for 3,781,508 shares of
common stock of Coinmach Laundry (previously issued to MCS in connection with Coinmach Laundry's going-private transaction in July 2000) and (C) 950,000 Common Units (the "2004 Common Units") were issued in July 2004 to Executive, who
subsequently transferred such Common Units to MCS, and  (ii) 2,917.97 Class C Preferred Units (the "Preferred Units"). 

            NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

ARTICLE I

PROVISIONS RELATING TO EXECUTIVE UNITS

            1.1       Vesting of Carried Common Units.  Carried Common Units which have become vested, together with all of the Co-Invest Common Units and all of the
2004 Common Units, are referred to herein as "Vested Common Units" and all other Carried Common Units are referred to herein as "Unvested Common Units."  In addition to any vesting requirements in respect of the Carried
Common Units contained in the Management Contribution Agreement, immediately prior to the closing of (i) any Significant Sale which results in any person, or group of related persons not affiliated with GTCR owning equity securities of Holdings possessing the power
to elect (without reference to any special or default voting rights) a majority of the members of the Holdings Board (a "Change of Control"), or (ii) a sale of all or substantially all of Holdings' assets, all Unvested Common Units will become
Vested Common Units.  In addition, if Executive's employment with either CSC or the Company is terminated (i) by the CSC Board (in the case of employment with CSC) or the Coinmach Board (in the case of employment with the Company) without Cause, or (ii) by
Executive for Good Reason, and in each case no CSC Event of Default (in the case of termination of employment with CSC) or Company Event of Default (in the case of termination of employment with the Company) has occurred and is continuing, all
Unvested Common Units will become Vested Common Units.

            1.2       Put Option. 

            (a)        Upon the consummation of a Qualified Disposition, MCS shall have the right to require that Holdings repurchase up to 50% of each class of Executive
Units pursuant to the terms of this Section 1.2(a) (the "Qualified Disposition Put Option").  The purchase price for each Common Unit pursuant to the Qualified Disposition Put Option shall be the price per Unit paid to GTCR in connection with
the Qualified Disposition, and the purchase price for each Preferred Unit pursuant to the Qualified Disposition Put Option shall be the lesser of (i) the liquidation value of such Unit (plus all accrued and unpaid dividends thereon) and (ii) the price per Unit of
such class paid to GTCR in connection with the Qualified Disposition. Within 30 days after the date of the Qualified Disposition, Holdings shall notify MCS of the occurrence of such event and MCS may elect to exercise the Qualified Disposition Put Option by giving
written notice to Holdings of such election, setting forth the number of Common Units and/or Preferred Units to be repurchased by Holdings, within 15 days after the date of delivery of Holdings' notice to MCS.  In the event of the exercise of a Qualified
Disposition Put Option, CSC and the Company will, subject to the terms of any of their then outstanding indebtedness, be jointly and severally obligated to transfer to Holdings an amount of money at least equal to the aggregate purchase price of the Executive Units
subject to the Qualified Disposition Put Option, in order that Holdings can satisfy its obligations under such Qualified Disposition Put Option. The closing of the repurchase pursuant to the Qualified Disposition Put Option shall take place on a date designated by
Holdings, but in any event not later than 270 days after the date of the Qualified Disposition.  At such closing, MCS shall deliver to Holdings the certificates representing the Common Units and/or Preferred Units to be repurchased by Holdings, and, subject to
Section 1.6 hereof, Holdings shall deliver to MCS the purchase price for such Units by cashier's or certified check or wire transfer.

            (b)        Upon the termination of Executive's employment hereunder (i) by the Coinmach Board (in the case of employment with the Company) or by the CSC
Board (in the case of employment with CSC), in each case without Cause, or (ii) by Executive for Good Reason, MCS shall have the right to require that Holdings repurchase all Units of each class of Executive Units held by MCS pursuant to the terms of this Section
1.2(b) (the "Termination Put Option"), and in the event the Termination Put Option is exercised, CSC and the Company will be jointly and severally obligated to transfer to Holdings an amount of money at least equal to the aggregate purchase price
of the Executive Units subject to the Termination Put Option, in order that Holdings can satisfy its obligations under such Termination Put Option; provided, however, that Holdings shall only be obligated to repurchase MCS's Executive Units
pursuant to the Termination Put Option at such time as the CSC Board, in its good faith judgment, determines that the Company and/or CSC (as the case may be) has sufficient assets to repurchase MCS's Executive Units without a material negative impact on
CSC's and/or the Company's working capital or liquidity (taking into account any reasonably foreseeable acquisitions or capital expenditures of such parties).  The purchase price for each Executive Unit pursuant to the Termination Put Option shall be
the Fair Market Value thereof on the Date of Termination.  Within 30 days after the Date of Termination as described in subsections (i) and (ii) above, MCS may elect to exercise the Termination Put Option by giving written notice to Holdings of
such election, setting forth the number of Executive Units to be repurchased by Holdings.  The closing of the repurchase pursuant to the Termination Put Option shall take place on a date designated by Holdings, but in any event not later than 15 days after the
date of receipt of MCS's written notice of election to exercise the Termination Put Option.  At such closing, MCS shall deliver to Holdings the certificates representing the Executive Units to be repurchased by Holdings, and, subject to Section 1.6
hereof, Holdings shall deliver to MCS the purchase price for such Units by cashier's or certified check or wire transfer.

            1.3       Repurchase Option.

            (a)        In the event Executive violates Section 2.3(a) of this Agreement (a "Noncompete Breach"), or in the event Executive's employment by
CSC and its Subsidiaries (including but not limited to the Company) terminates for any reason (a "Termination"), the Executive Units (whether held by MCS or one or more of MCS's transferees, other than Holdings or GTCR) will be subject to repurchase
by Holdings first, the Other Senior Managers second and the Investors third pursuant to the terms and conditions set forth in this Section 1.3 (the "Repurchase Option").

            (b)        If the Repurchase Option becomes exercisable because of a Noncompete Breach or a Termination resulting from CSC's or the Company's
termination of Executive's employment for Cause, then, the purchase price for each Executive Unit will be the lower of (i)  MCS's Original Cost for such Unit and (ii) the Fair Market Value of such Unit on the Date of Termination.  If
Executive's employment terminates other than as described in the preceding sentence, the purchase price for each (y) Executive Unit (other than an Unvested Common Unit) shall be the Fair Market Value of such Unit and (z) Unvested Common Unit shall be
MCS's Original Cost for such Unit, in each instance as of the date of the related Repurchase Notice or Investor Notice (as hereinafter defined), as the case may be.

            (c)        Holdings may, at the option of the Holdings Board, elect to purchase all or any portion of the Executive Units from time to time by delivering written
notice (the "Repurchase Notice") to the Other Senior Managers, the Investors and the holder or holders of such Executive Units from time to time during the 180 days after the Noncompete Breach or Termination, as the case may be.  The Repurchase
Notice will set forth the number of Executive Units, including the number of Unvested Common Units and Vested Common Units, to be acquired from the recipient holder, the aggregate consideration to be paid for such Units and the time and place for the closing of the
transaction.

            (d)        If for any reason Holdings has not elected to purchase all of the Executive Units pursuant to the Repurchase Option, the Other Senior Managers shall be
entitled to exercise the Repurchase Option for any or all of the Executive Units, including the Unvested Common Units and the Vested Common Units, Holdings has not elected to purchase (the "Available Units"), by giving written notice to Holdings and the holder(s) of the Available Units to be repurchased during the 30 days after the date of delivery to the Other Senior Managers of the Repurchase Notice (the "Management Repurchase Notice") setting forth the number of Available Units each Other Senior
Manager is willing to purchase.  If the Other Senior Managers elect to purchase an aggregate number of Units greater than the number of Available Units, the Available Units shall be allocated among the Other Senior Managers pro rata based on the number of Common
Units owned by each Other Senior Manager on a Fully Diluted Basis.  As soon as practicable, and in any event within ten days after the expiration of the 30-day period set forth above, Holdings shall notify the holder(s) of the Available Units and the
Investors as to the number of Units being purchased from such holder(s) by the Other Senior Managers (the "Supplemental Management Repurchase Notice").  At the time Holdings delivers the Supplemental Management Repurchase Notice to the holder(s) of
the Available Units, Holdings shall also deliver written notice to each Other Senior Manager and the Investors setting forth the number of Units such Other Senior Manager is entitled to purchase, the aggregate purchase price and the time and place of the closing of
the transaction and, in the notice to the Investors, a statement of the number, type and purchase price of Available Units available for purchase by the Investors.

            (e)        If for any reason the Other Senior Managers have elected not to purchase any or all of the Available Units pursuant to
Section 1.3(d) above, the
Investors may elect to purchase any or all of the Available Units not purchased by the Other Senior Managers by giving written notice to Holdings and the holder(s) of the Available Units to be repurchased within 30 days after the date of delivery to the Investors of
the Supplemental Management Repurchase Notice (the "Investor Repurchase Notice") setting forth the number of Available Units the Investors are willing to purchase.  If the Investors elect to purchase an aggregate number greater than the number of
Available Units, the Available Units shall be allocated among the Investors pro rata based upon the number of Common Units owned by each Investor on a Fully Diluted Basis.  As soon as practicable, and in any event within ten days after the expiration of the
30-day period set forth above, Holdings shall notify each holder of Available Units as to the number of Units being purchased from such holder by the Investors (the "Supplemental Investor Repurchase Notice").  At the time Holdings delivers the
Supplemental Investor Repurchase Notice to the holder(s) of Available Units, Holdings shall also deliver written notice to each Investor setting forth the number of Units such Investor is entitled to purchase, the aggregate purchase price and the time and place of
the closing of the transaction.

            (f)         Each closing of the purchase of the Executive Units pursuant to the Repurchase Option shall take place on the date designated by Holdings, the
Other Senior Managers or the Investors in the related Repurchase Notice, Management Repurchase Notice, or Investor Repurchase Notice, as the case may be, but in any event not later than 270 days after the date of the Noncompete Breach or Termination.  At such
closing, MCS shall deliver to Holdings, the Other Senior Managers and/or the Investors, certificates representing the Executive Units to be repurchased by Holdings, the Other Senior Managers and/or the Investors, and Holdings, the Other Senior Managers, and/or the
Investors, as the case may be, will pay for the Executive Units to be purchased pursuant to the Repurchase Option, subject to Section 1.6 hereof and the terms below, on the date of the closing of the Repurchase Option. 

            (g)        Any payment made pursuant to this Section 1.3 shall be payable, at the option of Holdings, in cash, by check or with Class A Preferred Units;
provided, that if Holdings elects to pay MCS with Class A Preferred Units, upon the request of Holdings, MCS shall enter into documentation with Holdings with respect to the issuance of such Class A Preferred Units on terms and conditions reasonably
acceptable to Holdings.  In addition, Holdings may pay the total purchase price for such Units by offsetting amounts outstanding under any bona fide debts owed by Executive or MCS to Holdings.  Holdings, the Other Senior Managers and the Investors will be
entitled to receive customary representations and warranties from the sellers regarding such sale and to require that all sellers' signatures be guaranteed.

            (h)        If within six months following the repurchase of Executive Units pursuant to the Repurchase Option under this Section 1.3, (i) a Significant
Sale or a Public Offering occurs and (ii) the amount received by MCS for Vested Common Units pursuant to the Repurchase Option is less than the amount that MCS would have received for such Vested Common Units had Holdings not repurchased such Vested Common Units
pursuant to the Repurchase Option and had MCS disposed of such Vested Common Units (or such other securities into which such Vested Common Units may have been exchanged or converted) pursuant to such Significant Sale or Public Offering, then MCS shall be entitled to
receive the benefit of such higher valuation for the Vested Common Units sold under the Repurchase Option.  Subject to Section 1.6 hereof, the excess of (x) the amount which MCS would have received in such Significant Sale or Public Offering assuming the
sale of his Vested Common Units purchased by exercise of the Repurchase Option in connection with such transaction, over (y) the purchase price of the Vested Common Units paid to MCS under the Repurchase Option (the "Excess"), shall be paid by
Holdings (or any designee of Holdings) to MCS by wire transfer of immediately available funds (to such account designated in writing by MCS) promptly upon consummation of any such transaction; provided, however, if (i) the repurchase of Executive Units
under this Section 1.3 was paid by Holdings with Class A Preferred Units and in connection with a Significant Sale the holders of Class A Preferred Units received consideration other than cash in exchange for such Class A Preferred Units, then Holdings may pay
the Excess to MCS in the same form of consideration which the holders of Class A Preferred Units received in such Significant Sale, or (ii) the repurchase of Executive Units under this Section 1.3 was paid by Holdings with Class A Preferred Units and in
connection with a Public Offering the Class A Preferred Units were converted into common stock or another form of equity security, then Holdings may pay the Excess to MCS in the form of common stock or such other equity security into which the Class A Preferred Units
were converted in connection with such Public Offering; provided, further, if the repurchase of Executive Units under this Section 1.3 was paid by Holdings with Class A Preferred Units and at the time of the Significant Sale or the Public
Offering there were no issued and outstanding Class A Preferred Units other than Class A Preferred Units held by MCS, then MCS shall be paid the Excess by Holdings (or any designee of Holdings), at the option of Holdings, by wire transfer of immediately available
funds (to such account designated in writing by MCS) or in the form of compensation received by the holders of Common Units, in either case promptly upon consummation of any such transaction.

            (i)         In the event Holdings elects to repurchase Executive Units pursuant to this Section 1.3, CSC and the Company will be jointly and severally
obligated to transfer to Holdings an amount of money at least equal to the aggregate purchase price of the Executive Units subject to such repurchase, in order that Holdings can complete such repurchase in accordance with the terms of this Section 1.3.

            1.4       Restrictions on Transfer.

            (a)        Transfer of Executive Units.  Neither Executive nor MCS shall, directly or indirectly, transfer, sell, assign, pledge, offer or otherwise
dispose of any interest in any Executive Units (a "Transfer") except pursuant to (i) Section 1.2, Section 1.3, Section 1.4(c), Section 1.4(d) or Section 1.4(e) hereof, (ii) Section 3(a) (participation rights),
Section 3(c) (permitted transfers) and Section 5 (sale of Holdings) of the Securityholders Agreement, or (iii) a Public Sale (clauses (i) through (iii) collectively referred to herein as "Exempt Transfers").  Prior to effecting
any Transfer of Executive Units (other than (y) to Holdings, to any Other Senior Manager or to the Investors or (z) in connection with a Public Sale or Significant Sale), MCS shall obtain from each transferee their written agreement to be bound by the provisions of
Section 1.4 of this Agreement for the benefit of Holdings, the Other Senior Managers and the Investors.

            (b)       
Sale Notice.  Prior to making any Transfer (other than an Exempt Transfer), MCS will give written notice (the "Sale Notice") to
Holdings, the Other Senior Managers and the Investors.  The Sale Notice will disclose in reasonable detail the number of Units to be transferred and the terms and conditions of the proposed Transfer and, if known, the identity of the prospective transferee(s).  MCS will not consummate any such Transfer until 90 days after the Sale Notice has been given to Holdings, the Other Senior Managers and the Investors, unless the parties to the Transfer have been fully determined pursuant to this
Section 1.4(b),
Section 1.4(c) and Section 1.4(d) prior to the expiration of such 90-day period.  (The date of the first to occur of such events is referred to herein as the "Authorization Date").

            (c)       
First Refusal Rights.  Holdings may elect to purchase all (but not less than all) of the Executive Units to be Transferred upon the same terms and
conditions as those set forth in the Sale Notice by delivering a written notice of such election to MCS, each Other Senior Manager and each Investor within 30 days after the Sale Notice has been given to Holdings. In the event Holdings elects to repurchase Executive
Units pursuant to this Section 1.4(c), CSC and the Company will be jointly and severally obligated to transfer to Holdings an amount of money at least equal to the aggregate purchase price of the Executive Units subject to such repurchase, in order that
Holdings can complete such repurchase in accordance with the terms of this Section 1.4(c). If Holdings has not elected to purchase all of the Executive Units to be Transferred, the Other Senior Managers may elect to purchase all (but not less than all) of the
Executive Units to be Transferred upon the same terms and conditions as those set forth in the Sale Notice by giving written notice of such election to MCS, Holdings and the Investors within 60 days after the Sale Notice has been given to the Other Senior
Managers.  The Other Senior Managers' rights hereunder shall be allocated among the Other Senior Managers pro rata based on the number of Common Units owned by each Other Senior Manager on a Fully Diluted Basis.  If Holdings and the Other Senior
Managers have not elected to purchase all of the Executive Units to be Transferred, the Investors may elect to purchase all (but not less than all) of the Executive Units to be Transferred upon the same terms and conditions as those set forth in the Sale Notice by
giving written notice of such election to MCS, Holdings and each Other Senior Manager within 90 days after the Sale Notice has been given to the Investors.  If Holdings, the Other Senior Managers or the Investors do not elect to purchase all of the Executive
Units specified in the Sale Notice, MCS may Transfer the Executive Units specified in the Sale Notice at a price and on terms no more favorable to the transferee(s) thereof than specified in the Sale Notice during the 30-day period immediately following the
Authorization Date.  Any Executive Units not Transferred within such 30-day period will be subject to the provisions of this
Section 1.4(c) upon subsequent Transfer.

            (d)       
Co-Sale Rights.  The Investors may elect to participate in the contemplated Transfer by delivering written notice to MCSwithin 90 days after
delivery of the Sale Notice to the Investors.  If any of the Investors (each a "Participating Investor") have elected to participate in such Transfer, and any of the Units specified in the Sale Notice are Common Units, MCSand the Participating
Investors shall be entitled to sell in the contemplated Transfer, at the same price and on the same terms, a number of Common Units equal to the product of (x) the quotient determined by dividing the percentage of Common Units owned by such Person by the aggregate
percentage of Common Units owned by MCSand all Participating Investors and (y) the number of Common Units to be sold in the contemplated Transfer.

  

	
For example, if the Sale Notice contemplated a sale of 100 Common Units by MCS, and if MCS was at such time the owner of 30% of Holdings' outstanding Common Units (on a fully-diluted basis) and if one Participating Investor elects to participate and such
Participating Investor owns 20% of Holdings' outstanding Common Units (on a fully-diluted basis), MCS would be entitled to sell 60 Common Units ((30%  ̧ 50%) x 100 Units) and the Participating Investor would be entitled to sell 40 Common Units ((20%
 ̧ 50%) x 100 Units).

  

If any of the Executive Units specified in the Sale Notice consist of Class C Preferred Units, MCS and the Participating Investors shall be entitled to sell in the contemplated Transfer, at the same price and on the same terms, a number of Class C Preferred Units
equal to the aggregate number of Class C Preferred Units to be Transferred multiplied by a fraction, the numerator of which is the Class C Unreturned Capital plus the Class C Unpaid Yield of all Class C Preferred Units held by such Person and the denominator of which
is the aggregate Class C Unreturned Capital plus the Class C Unpaid Yield of all Class C Preferred Units held by MCS and the Participating Investors.

  

	
For example, if the Sale Notice contemplated a sale of 100 Class C Preferred Units by MCS, and if the Class C Unreturned Capital plus the Class C Unpaid Yield on all Class C Preferred Units held by MCS was at such time $1,080,000, and if one Participating Investor
elects to participate and the Class C Unreturned Capital plus the Class C Unpaid Yield on all Class C Preferred Units held by such Participating Investor was at such time $2,160,000, MCS would be entitled to sell 33 1/3 Class C Preferred Units ((1,080,000  ̧
3,240,000) x 100 Units) and the Participating Investor would be entitled to sell 66 2/3 Class C Preferred Units ((2,160,000  ̧ 3,240,000) x 100 Units).

  

MCS will use its best efforts to obtain the agreement of the prospective transferee(s) to the participation of the Investors in the contemplated Transfer and will not Transfer any Executive Units to the prospective transferee(s) if such transferee(s) refuse(s) to
allow the participation of the Investors.

            (e)       
Permitted Transfers.  The restrictions contained in this Section 1.4shall not apply with respect to any Transfer of Executive Units pursuant to
applicable laws of descent and distribution or among (i) Executive or MCS and (ii) Executive's Family Members; provided that such restrictions will continue to be applicable to the Executive Units after any such Transfer and the transferees of such
Executive Units have agreed in writing to be bound by the provisions of this Agreement.

            (f)         Legend.  The certificates representing the Executive Units will bear a legend in substantially the following form:

	
"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN
EXEMPTION FROM REGISTRATION THEREUNDER.  THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER, CERTAIN REPURCHASE OPTIONS AND CERTAIN OTHER AGREEMENTS SET FORTH IN A SENIOR MANAGEMENT AGREEMENT BY AND AMONG
COINMACH SERVICE CORP. ("COINMACH"), COINMACH CORPORATION, COINMACH HOLDINGS, LLC, MCS CAPITAL, INC. AND STEPHEN R. KERRIGAN, DATED JUNE 7, 2005.  COINMACH MAY REQUEST A WRITTEN OPINION OF COUNSEL (FROM COUNSEL ACCEPTABLE TO COINMACH) SATISFACTORY TO
COINMACH, TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED IN CONNECTION WITH SUCH SALE, PLEDGE OR HYPOTHECATION, OR OTHER TRANSFER. A COPY OF SUCH AGREEMENT MAY BE OBTAINED AT COINMACH'S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE."

          1.5       Recapitalization Undertaking.  Prior to a Public Offering pursuant to which any holder of Units of common securities of Holdings is given an opportunity to sell all or any portion of such holder's Units of
common securities of Holdings, Holdings will use its reasonable best efforts, at the request of MCS, to effect a recapitalization of the Preferred Units into Units of common securities of Holdings at a price per Unit equal to the price per Unit at which Units of
Holdings' common securities are offered to the public in such Public Offering.

            1.6       Payments.  Notwithstanding any other provision to the contrary contained in this Agreement, payments (including, but not limited to, in the form
of securities) to be made to MCS pursuant to this Agreement shall be made only to the extent permitted by the financing arrangements of Holdings and its Subsidiaries in effect at the time such payments are required to be made; provided, however, such
payments shall be made at such time that they are permitted to be made by such financing arrangements.

            1.7       Opinion.  In connection with the Transfer of any Executive Units (other than an Exempt Transfer or in connection with a Significant Sale), the
holder thereof shall deliver written notice to Holdings describing in reasonable detail the Transfer or proposed Transfer, which, if requested by Holdings, shall be accompanied by an opinion of counsel which (to Holdings' reasonable satisfaction) is
knowledgeable in securities law matters to the effect that such Transfer of Executive Units may be effected without registration of such Executive Units under the Securities Act.  In addition, if the holder of the Executive Units delivers to Holdings an opinion
of counsel that no subsequent Transfer of such Executive Units shall require registration under the Securities Act, Holdings shall promptly upon such contemplated Transfer deliver new certificates for such Executive Units which do not bear the Securities Act legend
set forth in Section 1.4(f) (but which may bear any applicable contractual restrictions on Transfer).

            1.8      
Transfers of MCS Stock.  Executive shall not, directly or indirectly, Transfer any interest in any securities of MCS except pursuant to applicable laws
of descent and distribution or among Executive and Executive's Family Members; provided that such restriction will continue to be applicable to any securities of MCS after any such Transfer and the transferees of such securities of MCS have agreed
in writing to be bound by the provisions of this Agreement.

ARTICLE II

PROVISIONS RELATING TO EMPLOYMENT

            2.1       Employment.  CSC agrees to employ Executive, and Executive accepts such employment, for the period from the date hereof until such employment is
terminated (the "CSC Employment Period"). The Company agrees to employ Executive, and Executive accepts such employment, for the period from the date hereof until such employment is terminated (the "Company Employment Period"
and, together with the CSC Employment Period, the "Employment Period").

            (a)       
Duties.  During (i) the CSC Employment Period, Executive shall serve as the President, Chief Executive Officer and Chairman of the Board of CSC
and (ii) the Company Employment Period, Executive shall serve as the Chief Executive Officer and Chairman of the Board of the Company, and with respect to each such employment Executive shall have the normal duties, responsibilities and authority assigned to him by
the CSC Board and CSC's by-laws (in the case of employment with CSC), and the Coinmach Board and the Company's by-laws (in the case of employment with the Company).

            (b)       
Salary, Bonus and Benefits.

            (i)        
Salary.  During the Employment Period, the Company will pay Executive a base salary (the "Annual Base Salary") as the CSC Board
may designate from time to time, beginning at the rate of $446,250 per annum, which amount shall be reviewed and may be increased, but not decreased, annually by the CSC Board in its sole discretion, and which Annual Base Salary shall represent an aggregate base
salary for services provided to both CSC and the Company. The obligation in any year during the Employment Period to pay Executive's Annual Base Salary shall be the joint and several obligations of CSC and the Company; provided that in the event
Executive's employment terminates with respect to either CSC or the Company but not both, (i) the obligation hereunder to pay Executive's Annual Base Salary for all periods subsequent to such termination shall be the sole obligation of the party with whom
such employment was not terminated and (ii) Executive's Annual Base Salary for all periods subsequent to such termination shall be determined by the board of directors of the party with whom such employment was not terminated.  Executive's Annual
Base Salary for any partial year will be prorated based upon the number of days elapsed in such year.

            (ii)       
Bonus.  During the Employment Period, Executive will be entitled to receive any bonus which the CSC Board may grant in its discretion, which
bonus shall represent an aggregate bonus for services provided to both CSC and the Company. The obligation to pay any bonus so granted shall be the joint and several obligations of CSC and the Company; provided that in the event Executive's employment
terminates with respect to either CSC or the Company but not both, the bonus to which Executive will be entitled for all periods subsequent to such termination shall be granted in the discretion of the board of directors of the party with whom such employment was not
terminated and payment of such bonuses will be the obligation of such party.  In addition, upon the consummation of a Qualified Disposition, Executive will be entitled to a bonus in an amount equal to 2.0 times the sum of his Annual Base Salary then in effect
plus the amount of the bonus paid to Executive for the most recently completed fiscal year, payable in a lump sum on the closing of such Qualified Disposition.

            (iii)      
Benefits.  During the Employment Period, Executive will be entitled to benefits consistent with past practices, as well as to such other benefits
approved by the CSC Board and made available to CSC's and/or the Company's senior management (without duplication), in each case, as such benefits may be adjusted by the CSC Board from time to time.

            (c)       
Severance. 

            (i)         Termination of Employment with CSC. If Executive's employment with CSC is terminated by the CSC Board without Cause, or if
Executive's employment is terminated by Executive for Good Reason (and not by reason of Executive's death or disability) and (i) no CSC Event of Default has occurred and is continuing, Executive shall be entitled to receive severance pay in an amount
equal to 2.0 times the sum of his Annual Base Salary then in effect plus the amount of the bonus paid to Executive for the most recently completed fiscal year, payable in 18 equal monthly installments, or (ii) a CSC Event of Default has occurred and is continuing,
Executive shall be entitled to receive severance pay in an amount equal to his Annual Base Salary then in effect payable in 12 equal monthly installments, in the case of each of clauses (i) and (ii) subject to applicable withholding tax requirements,
commencing upon the execution by CSC and Executive of a mutual release of the parties' respective rights, duties, privileges and obligations hereunder other than those rights, duties, privileges and obligations which are contemplated to continue beyond the
Employment Period, which release the parties hereby agree to use their reasonable good faith efforts to secure. 

            (ii)        Termination of Employment with the Company. If Executive's employment with the Company is terminated by the Coinmach Board without Cause,
or if Executive's employment is terminated by Executive for Good Reason (and not by reason of Executive's death or disability) and (i) no Company Event of Default has occurred and is continuing, Executive shall be entitled to receive severance pay in an
amount equal to 2.0 times the sum of his Annual Base Salary then in effect plus the amount of the bonus paid to Executive for the most recently completed fiscal year, payable in 18 equal monthly installments, or (ii) a Company Event of Default has occurred and is
continuing, Executive shall be entitled to receive severance pay in an amount equal to his Annual Base Salary then in effect payable in 12 equal monthly installments, in the case of each of clauses (i) and (ii) subject to applicable withholding tax
requirements, commencing upon the execution by the Company and Executive of a mutual release of the parties' respective rights, duties, privileges and obligations hereunder other than those rights, duties, privileges and obligations which are contemplated to
continue beyond the Employment Period, which release the parties hereby agree to use their reasonable good faith efforts to secure. 

            (iii)       Limitations on Multiple Severance.  In the event Executive's employment with both CSC and the Company is terminated within any twelve
month period by the Coinmach Board or the CSC Board or Executive as described in Sections 2.1(c)(i) and (ii):

  	

           (A)      Executive shall only be entitled to receive one severance payment described in this Section 2.1(c), notwithstanding termination of employment with both
parties,

      
	

 
	

            (B)       payment of such severance payment shall be the joint and several obligations of CSC and the Company,

      
	

 
	

            (C)       if the Annual Base Salary in effect at the time of the first termination is different than the Annual Base Salary in effect at the time of the second termination,
whichever Annual Base Salary is greater will be the Annual Base Salary used in calculating Executive's severance payment and

      
	

 
	

            (D)       if (1) at the time of termination of employment with CSC a CSC Event of Default had occurred and was continuing and at the time of termination of employment with
the Company no Company Event of Default had occurred and was continuing or (2) at the time of termination of employment with CSC no CSC Event of Default had occurred and was continuing and at the time of termination of employment with the Company a Company Event of
Default had occurred and was continuing, then in either case Executive's severance payment shall be calculated as if no Event of Default had occurred and was continuing.

      

            In the event that (A) subclause (C) of the first paragraph of this Section 2(c)(iii) is applicable, (B) the greater Annual Base Salary is in effect at the time of the second
termination and (C) installment payments on the severance payment relating to the first termination have already been paid or begun to be paid to Executive, then (y) the severance payment amount owed to Executive will be recalculated and adjusted upward to account
for the Annual Base Salary in effect at the time of the second termination in accordance with subclause (C) and (z) all installment payments already paid to Executive relating to the first termination will be deducted from such adjusted severance payment
amount.

            In the event that (A) subclause (D) of the first paragraph of this Section 2(c)(iii) is applicable, (B) either (1) the first termination of employment related to CSC and at the time
of such termination a CSC Event of Default occurred and was continuing or (2) the first termination of employment related to the Company and at the time of such termination a Company Event of Default occurred and was continuing and (C) installment payments on the
severance payment relating to the first termination have already been paid or begun to be paid to Executive, then (x) the severance payment amount owed to Executive will be recalculated and adjusted upward to account for the severance payment owed as if no Event of
Default had occurred and was continuing in accordance with subclause (D), (y) all installment payments already paid to Executive relating to the first termination will be deducted from such adjusted severance payment amount and (z) the adjusted severance
payment amount, minus any deductions in accordance with the preceding subclause (y), will be payable in a number of equal monthly installments equal to 18 minus the number of installment payments already paid to Executive at the time of the second
termination.

            (d)        Effect of Termination on Bonuses and Benefits.  With respect to termination of employment with either CSC or the Company, all of Executive's
rights to fringe benefits and bonuses hereunder (if any) related to such employment which accrue after the Date of Termination shall, except as otherwise provided by law, cease upon such Date of Termination; provided, however, that Executive shall
continue to be entitled to medical benefits consistent with those provided to Executive prior to the Date of Termination during the period that installment payments on the severance payment to which the Executive is entitled are being made to Executive pursuant to
Section 2.1(c) hereof.  The Company or CSC, as the case may be, may offset the amounts of any outstanding loans, advances or other disbursements made to or on behalf of Executive by CSC or the Company against any amounts CSC or the Company owes Executive
hereunder for severance pay, benefits, bonuses or other items.

            2.2       Confidential Information.  Executive acknowledges that the information, observations and data obtained by him during the course of his
performance concerning the business and affairs of Holdings, CSC, or any of their respective Subsidiaries and Affiliates will be the property of Holdings, CSC, and their respective Subsidiaries.  Therefore, Executive agrees that he will not disclose to any
unauthorized person or use for the account of any Person other than Holdings, CSC, and their respective Subsidiaries any such information, observations or data ("Confidential Information") without the written consent of the Holdings Board (in the case of
Confidential Information relating to Holdings and/or its Subsidiaries) or the CSC Board (in the case of Confidential Information relating to CSC and/or its Subsidiaries), unless and to the extent that the aforementioned matters become generally known to and available
for use by the public other than as a result of Executive's acts or omissions to act and except as required by law or legal process.  Executive agrees to deliver to CSC and/or the Company at the termination of his employment with either of such parties, or
at any other time CSC, the Company or Holdings may request in writing, all memoranda, notes, plans, records, reports and other documents (and copies thereof) relating to the business of Holdings or its Subsidiaries, or CSC or its Subsidiaries, and all acquisition
prospects, lists and contact information which he may then possess or have under his control.  "Confidential Information" shall include, but is not limited to, information concerning acquisition opportunities in or reasonably related to
Holdings' or its Subsidiaries', or CSC's or its Subsidiaries', business or industry of which Executive becomes aware during his employment.

            2.3      
Noncompetition and Nonsolicitation.

            (a)       
Noncompetition.  Executive acknowledges that in the course of his employment with CSC and the Company he will become familiar, and during his
employment with CSC and the Company prior to the date of this Agreement he has become familiar, with Holdings', CSC's, their respective Subsidiaries', and each of their Affiliates' (collectively, the "Coinmach Group") trade secrets
and with other confidential information concerning the Coinmach Group, and that his services will be of special, unique and extraordinary value to the Coinmach Group.  Therefore, Executive agrees that, during the Employment Period and for one year thereafter
(the "Noncompete Period"), he shall not directly or indirectly own, manage, control, participate in, consult with, assist, render services for, or in any manner engage in any business competing with, or otherwise substantially similar to, the businesses
of the Coinmach Group as such businesses exist or are in process on the Date of Termination, (i) within the geographical area included in the 50-mile radius around each location of a customer of the Coinmach Group or any business which a member of the Coinmach
Group is actively considering acquiring at the time of Executive's termination or has actively considered acquiring in the last 12 months or (ii) within any State in the United States or any Province in Canada in which Executive has spent a significant amount
of time on behalf of the Coinmach Group at any time during the twelve-month period prior to the Date of Termination.  The restrictions of this
Section 2.3(a) shall not apply to Executive's ownership interests in not more than three laundromats at any
one time.

            (b)       
Nonsolicitation.  During the Noncompete Period, Executive shall not directly or indirectly through another entity (i) induce or attempt to induce
any employee of the Coinmach Group to leave the employ of the Coinmach Group, or in any way interfere with the relationship between the Coinmach Group and any employee thereof, (ii) offer employment to or hire any person who was an employee of the Coinmach Group at
any time during the one-year period prior to the Date of Termination, or (iii) induce or attempt to induce any customer, supplier, licensee or other business relation of the Coinmach Group to cease doing business with the Coinmach Group, or in any way interfere
with the relationship between any such customer, supplier, licensee or business relation and the Coinmach Group; provided that clauses (i) and (ii) above shall not in any way prohibit Executive from offering employment to, hiring or
employing James N. Chapman during the Noncompete Period.

            (c)       
Enforcement.  If, at the time of enforcement of Section 2.2 or Section 2.3 of this Agreement, a court holds that the restrictions stated
herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum duration, scope and geographical area reasonable under such circumstances shall be substituted for the stated period, scope and area and that the court shall be
allowed to reduce the restrictions contained herein to cover the maximum duration, scope and area permitted by law.

            (d)       
Submission to Jurisdiction.  Each of the parties hereto (i) submits to the jurisdiction of any state or federal court sitting in New York, New
York in any action or proceeding arising out of or relating to this Agreement, (ii) agrees that all claims in respect of such action or proceeding may be heard or determined in any such court and (iii) agrees not to bring any action or proceeding arising out of or
relating to this Agreement in any other court.  Each of the parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety or other security that might be required of any other party with
respect thereto.  Each party agrees that a final judgment in any action or proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by law.

            (e)       
Additional Acknowledgments.  Executive acknowledges that the provisions of
Section 2.2 and Section 2.3 are in consideration of: (i)
employment with CSC and the Company, and (ii) additional good and valuable consideration as set forth in this Agreement.  In addition, Executive agrees and acknowledges that the restrictions contained in
Section 2.2 and this Section 2.3 do not preclude
Executive from earning a livelihood, nor do they unreasonably impose limitations on Executive's ability to earn a living.  In addition, Executive acknowledges (i) that the business of CSC and the Company and their respective Subsidiaries will be national
in scope and without geographical limitation, (ii) notwithstanding the state of incorporation or principal office of CSC or the Company or any of their respective Subsidiaries, or any of their respective executives or employees (including Executive), it is expected
that CSC and the Company will have business activities and have valuable business relationships within its industry throughout the United States, and (iii) as part of Executive's responsibilities, Executive will be traveling around the United States in
furtherance of CSC's and the Company's business and its relationships.  Executive agrees and acknowledges that the potential harm to CSC and the Company of the non-enforcement of
Section 2.2 and this Section 2.3 outweighs any potential harm to
Executive of its enforcement by injunction or otherwise.  Executive acknowledges that he has carefully read this Agreement and has given careful consideration to the restraints imposed upon him by this Agreement, and is in full accord as to their necessity for
the reasonable and proper protection of confidential and proprietary information of CSC and the Company now existing or to be developed in the future.  Executive expressly acknowledges and agrees that each and every restraint imposed by this Agreement is
reasonable with respect to subject matter, time period and geographical area.

ARTICLE III

GENERAL PROVISIONS

            3.1       Definitions.

            "Affiliate" of a Person means any direct or indirect general or limited partner or member of such Person, or any employee or owner thereof, or any other person, entity or
investment fund controlling, controlled by or under common control with such Person, and will include, without limitation, its owners and employees.

            "Agreement" has the meaning set forth in the preamble hereto.

            "Annual Base Salary" has the meaning set forth in Section 2.1(b)(i) hereto.

            "Authorization Date" has the meaning set forth in Section 1.4(b) hereto.

            "Available Units" has the meaning set forth in Section 1.3(d) hereto.

            "Carried Common Units" has the meaning set forth in the recitals hereto

            "Cause" means (i) a material breach by Executive of any agreement with any member of the Coinmach Group (after notice and reasonable opportunity to cure), (ii) a breach of
Executive's duty of loyalty to any member of the Coinmach Group or any of its Subsidiaries or any act of dishonesty, gross negligence, willful  misconduct or fraud with respect to any member of the Coinmach Group or any of their securityholders, customers
or suppliers, (iii) the commission by Executive of a felony, a crime involving moral turpitude or other act or omission tending to cause harm to the standing and reputation of, or otherwise bring public disgrace or disrepute to, any member of the Coinmach Group, (iv)
Executive's continued failure or refusal to perform any material duty to any member of the Coinmach Group which is normally attached to his position (after notice and reasonable opportunity to cure), (v) Executive's gross negligence or willful misconduct
in performing those duties which are normally attached to his position (after notice and reasonable opportunity to cure) or (vi) any breach of
Section 2.2 or Section 2.3 of this Agreement.  For purposes of this Agreement, "Executive's duty of
loyalty to any member of the Coinmach Group" shall include Executive's fiduciary obligation to place the interests of any member of the Coinmach Group ahead of his personal interests and thereby not knowingly profit personally at the expense of any member
of the Coinmach Group, and shall also include specifically the affirmative obligation to disclose promptly to the CSC Board any known conflicts of interest Executive may have with respect to any member of the Coinmach Group, and the negative obligations not to usurp
corporate opportunities of any member of the Coinmach Group, not to engage in any "conflict-of-interest" transactions with any member of the Coinmach Group (without the approval of the CSC Board), and not to compete directly with any member of
the Coinmach Group (without the approval of the CSC Board).

            "Change of Control" has the meaning set forth in Section 1.1 hereto.

            "Class A Common Stock" means the Class A common stock, par value $0.01 per share, of CSC.

            "Class B Common Stock" means the Class B common stock, par value $0.01 per share, of CSC.

            "Class C Preferred Units" has the meaning set forth in the LLC Agreement.

            "Class C Unpaid Yield" has the meaning set forth in the LLC Agreement.

            "Class C Unreturned Capital" has the meaning set forth in the LLC Agreement.

            "Co-Invest Common Units" has the meaning set forth in the recitals hereto.

            "Coinmach Board" means the Board of Directors of the Company.

            "Coinmach Group" has the meaning set forth in Section 2.3(a) hereto.

            "Coinmach Laundry" has the meaning set forth in the recitals hereto.

            "Common Units" means Units having the rights and obligations of Common Units set forth in the LLC Agreement.

            "Company" has the meaning set forth in the preamble hereto.

            "Company Event of Default" means an "Event of Default" as such term is defined in the Company's (i) credit agreement dated January 25, 2002, among
the Company, Coinmach Laundry, the subsidiary guarantors named therein, and certain lenders named therein, as amended pursuant to the Limited Waiver and Amendment No. 1 thereto, dated November 15, 2004, and (ii) indenture governing the 9% senior notes due 2010 of the
Company, dated as of January 25, 2002, as each such agreement may be further amended, modified or replaced, from time to time.

            "Confidential Information" has the meaning set forth in Section 2.2 hereto.

            "CSC" has the meaning set forth in the preamble hereto.

            "CSC Board" means the board of directors of CSC.

            "CSC Event of Default" means an "Event of Default" as defined in the indenture governing the 11% senior secured notes due 2024 of CSC, by and among CSC,
the subsidiary guarantors names therein and The Bank of New York, as trustee, dated as of  November 24, 2004, as such agreement may be further amended, modified or replaced, from time to time.

            "Date of Termination" means the first day occurring on or after the date hereof on which Executive ceases to be an Employee of CSC or the Company, regardless of the
reason for such cessation, provided that Executive's cessation as an Employee shall not be deemed to occur by reason of a transfer of Executive by or among Holdings, CSC, the Company, or any of their respective Subsidiaries; and provided
further that Executive's cessation as an Employee shall not be deemed to occur by Executive's being on a leave of absence from CSC, the Company or any of their respective Subsidiaries approved by Executive's employer.  If, as a result of
a sale or other transaction, the Subsidiary of CSC or the Company for whom Executive is employed ceases to be a Subsidiary of CSC or the Company (and the entity for whom Executive is employed is or becomes an entity that is separate from CSC or the Company), and
Executive is not, at the end of the 30-day period following the transaction, an Employee of CSC or the Company or an entity that is then a Subsidiary of CSC or the Company, then the occurrence of such transaction shall be treated as Executive's Date of
Termination caused by Executive being discharged by the entity for whom Executive is employed.

            "Employee" means any person, including officers and directors, employed by CSC, the Company or any of their respective Subsidiaries.

            "Employment Period" has the meaning set forth in Section 2.1 hereto.

            "Event of Default" means, collectively, a CSC Event of Default and a Company Event of Default.

            "Excess" has the meaning set forth in Section 1.3(h) hereto.

            "Executive" has the meaning set forth in the preamble hereto.

            "Executive Units" means, at any time, (i) all Common Units and Preferred Units then held by MCS, Executive or a Family Member, and (ii) all equity securities of CSC issued
or issuable directly or indirectly with respect to such Units in connection with a combination of Units, dividend, recapitalization, merger, consolidation, reorganization or otherwise.  In addition, Executive Units shall continue to be Executive Units in the
hands of any holder (except to the extent such holder is CSC, any Investor or a transferee in a Public Sale consummated in accordance with this Agreement or the Securityholders Agreement), and except as otherwise provided herein, each such holder of Executive Units
shall succeed to all rights and obligations attributable to Executive or MCS, as the case may be, as a holder of Executive Units hereunder.

            "Exempt Transfers" has the meaning set forth in Section 1.4(a) hereto.

            "Existing Employment Agreement" has the meaning set forth in the recitals hereto.

            "Fair Market Value".  For purposes of determining the "Fair Market Value" of any Executive Unit as of any date, the following rules shall apply:

  	

           
(i)         If, at that time, the
principal market for the Executive Unit is a national securities exchange or the
Nasdaq stock market, then the "Fair Market Value" shall be the mean between the
lowest and highest reported sale prices of such Executive Unit on that date on
the principal exchange or market on which such Executive Unit is then listed or
admitted to trading;

      
	

 
	

            (ii)        If, at that time, the sale prices are not available or the principal market for the Executive Unit is not a national securities exchange and such Executive
Unit is not quoted on the Nasdaq stock market, then the "Fair Market Value" shall be the average between the highest bid and lowest asked prices for such Executive Unit on such day as reported on the Nasdaq OTC Bulletin Board Service or by the National
Quotation Bureau, Incorporated or a comparable service;

      
	

 
	

            (iii)       If the day is not a business day, and as a result, paragraphs (i) and (ii) next above are inapplicable, the "Fair Market Value" of the
Executive Unit shall be determined as of the next earlier business day; and

      
	

 
	

            (iv)       If, in accordance with rules established by the Holdings Board, a determination of "Fair Market Value" is required as of any date and, as of that
date, paragraphs (i) and (ii) next above are inapplicable for reasons other than those specified in paragraph (iii) next above, then the "Fair Market Value" as of that date shall be determined by the Holdings Board in its reasonable
discretion or by such other Person designated by the Holdings Board;

      

 provided, however, that notwithstanding any other paragraph in this definition to the contrary, the Fair Market Value for any Preferred Unit shall be no more than the unpaid yield and
unreturned capital of such Unit.

            "Family Members" means Executive's spouse and/or lineal descendants, a trust for the sole benefit of Executive and/or Executive's spouse or lineal descendants
or upon Executive's death, Executive's estate.

            "Fully Diluted Basis" means, without duplication, (i) all Common Units outstanding at the time of determination plus (ii) all Common Units issuable upon conversion
of any convertible securities or the exercise of any option, warrant or similar right, whether or not such conversion, right or option, warrant or similar right is then exercisable.

            "Good Reason" means (i) a material breach of Section 1.2 which is not cured within thirty days after the Holdings Board's receipt of written notice from
Executive of non-compliance; (ii) a material diminution of Executive's duties under this Agreement, including but not limited to the assignment to Executive of duties inconsistent with Executive's position, duties or responsibilities as in effect after
the date of execution of this Agreement; (iii) Executive's own physical or mental disability; or (iv) a material breach of Section 2.1(b) which is not cured within thirty days after either the Coinmach Board's or the CSC Board's receipt of
written notice from Executive of non-compliance.  For purposes of this Agreement, "disability" shall mean Executive's inability to perform his duties hereunder in a competent manner on account of illness or other physical or mental incapacity,
if such illness or other physical or mental incapacity continues for a period of more than three consecutive months, or an aggregate of six months in any twelve-month period during the term hereof.

            "GTCR" means GTCR-CLC, LLC or any Affiliate thereof.

            "Holdings" has the meaning set forth in the preamble hereto.

            "Holdings Board" means the board of managers of Holdings.

            "IDSs" has the meaning set forth in the recitals hereto.

            "Investor Repurchase Notice" has the meaning set forth in Section 1.3(e) hereto.

            "Investors" means, collectively, GTCR, Filbert Investment Pte Ltd, the TCW/Crescent Purchasers, and each of their transferees.

            "IPO" has the meaning set forth in the recitals hereto.

            "LLC Agreement" means the Limited Liability Company Agreement, by and among Holdings and its members, dated as of  March 6, 2003, as amended pursuant to
Amendment No. 1, dated November 24, 2004.

            "Management Contribution Agreement" means that certain Contribution Agreement, dated on or prior to the date hereof, by and among Holdings, Executive and MCS.

            "Management Repurchase Notice" has the meaning set forth in Section 1.3(d) hereto.

            "MCS" has the meaning set forth in the preamble hereto.

            "Noncompete Breach" has the meaning set forth in Section 1.3(a) hereto.

            "Noncompete Period" has the meaning set forth in Section 2.3(a) hereto.

            "Original Cost" means, (i) with respect to each Common Unit, $.10 per Unit, and (ii) with respect to each Preferred Unit, $1,000 per Unit (in each case as proportionately
adjusted for all subsequent securities splits, dividends and other recapitalizations).

            "Other Senior Managers" means Mitchell Blatt, Robert M. Doyleand Michael E. Stanky.

            "Participating Investor" has the meaning set forth in Section 1.4(d) hereto.

            "Person" means an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political subdivision thereof.

            "Preferred Units" has the meaning set forth in the recitals hereto.

            "Public Offering" means a sale in an underwritten public offering registered under the Securities Act (other than on Form S-8 or a similar or successor form) of
Common Units (or other shares of equity interests into which such Common Units may be exchanged or converted) approved by the Holdings Board.

            "Public Sale" means (i) any sale pursuant to a Public Offering or (ii) any sale to the public pursuant to Rule 144 promulgated under the Securities Act effected
through a broker, dealer or market maker (other than pursuant to Rule 144(k) prior to a Public Offering).

            "Qualified Disposition" means a Significant Sale in which the aggregate consideration (including the fair market value of any notes or other evidence of indebtedness)
received by GTCR at the closing of such Significant Sale is equal to or greater than 300% of the aggregate net amount invested in Holdings and its Subsidiaries by GTCR on or after July 3, 2000 through the date of such closing.

            "Qualified Disposition Put Option" has the meaning set forth in Section 1.2(a) hereto.

            "Repurchase Notice" has the meaning set forth in Section 1.3(c) hereto.

            "Repurchase Option" has the meaning set forth in Section 1.3(a) hereto.

            "Sale Notice" has the meaning set forth in Section 1.4(b) hereto.

            "Securities Act" means the Securities Act of 1933, as amended from time to time.

            "Securityholders Agreement" means the Amended and Restated Securityholders Agreement, dated as of  November 24, 2004 by and among Holdings, certain of its
securityholders, and CSC.

            "Significant Sale" means any transaction or series of transactions pursuant to which any Person or group of related Persons in the aggregate acquire(s) (i) equity
securities of Holdings possessing the voting power (other than voting rights accruing only in the event of a default, breach or event of noncompliance) to elect a majority of the Holdings Board (whether by merger, consolidation, reorganization, combination or sale or
Transfer of Holdings' equity or otherwise) or (ii) all or substantially all of Holdings' assets determined on a consolidated basis; provided that, neither (y) a Public Offering nor (z) a pro rata distribution of the Class B Common Stock to a
unit holder or unit holders of Holdings shall constitute a Significant Sale.

            "Subsidiary" means, with respect to any Person, any corporation, partnership, association or other business entity of which (i) if a corporation, a majority of the total
voting power of securities entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a partnership, association or other business entity, a majority of the partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by any Person
or one or more Subsidiaries of that Person or a combination thereof.  For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a partnership, association or other business entity if such Person or Persons shall be
allocated a majority of partnership, association or other business entity gains or losses or shall be or control the managing director or general partner of such partnership, association or other business entity.  Reference to any "Subsidiary" of the
Company or CSC shall be given effect only at such times as the Company or CSC has one or more Subsidiaries.

            "Supplemental Investor Repurchase Notice" has the meaning set forth in Section 1.3(e) hereto.

            "Supplemental Management Repurchase Notice" has the meaning set forth in Section 1.3(d) hereto.

            "Taxes" has the meaning set forth in Section 3.3(k) hereto.

            "TCW/Crescent Purchasers" means, collectively, TCW/Crescent Mezzanine Partners II, L.P., a Delaware limited partnership, TCW/Crescent Mezzanine Trust II, a Delaware
business trust, TCW Leverage Income Trust, L.P., a Delaware limited partnership, and TCW Leveraged Income Trust II, L.P., a Delaware limited partnership, any of their Affiliates or any holder of Units for whom Trust Company of the West or any Affiliate of Trust
Company of the West acts as an Account Manager (each individually a "TCW/Crescent Purchaser").

            "Termination" has the meaning set forth in Section 1.3(a) hereto.

            "Termination Put Option" has the meaning set forth in Section 1.2(b) hereto.

            "Transactions" has the meaning set forth in the recitals hereto.

            "Transfer" has the meaning set forth in Section 1.4(a) hereto.

            "2004 Common Units" has the meaning set forth in the recitals hereto.

            "Units" has the meaning set forth in the LLC Agreement.

            "Unvested Common Units" has the meaning set forth in Section 1.1 hereto.

            "Vested Common Units" has the meaning set forth in Section 1.1 hereto.

            3.2       Notices.  Any notice provided for in this Agreement must be in writing and must be either personally delivered, mailed by first class mail
(postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the recipient at the address below indicated or such other address or to the attention of such other person as the recipient party shall have specified
by prior written notice to the sending party:

  

	
If to the Company, to:

	
 
	
 
	
Coinmach Corporation

 303 Sunnyside Blvd.

 Suite 70

 Plainview, New York 11803

 Attention: Chief Executive Officer

	
 	
 
	
 
	
with copies, which will not constitute notice to the Company, to:

	
 	
 
	
 
	
GTCR Fund VII, L.P.

 c/o GTCR Golder Rauner, L.L.C.

 6100 Sears Tower

 Chicago, Illinois  60606-6402

 Attention: David A. Donnini

	
 	
 
	
 
	
Kirkland & Ellis

 200 East Randolph Drive

 Chicago, Illinois  60601

 Attention: Stephen L. Ritchie, P.C.

	
 	
 
	
 
	
Mayer, Brown, Rowe & Maw LLP

 1675 Broadway

 New York, New York  10019

 Attention: Ronald S. Brody

	
 	
 
	
If to CSC, to:

	
 
	
 
	
Coinmach Service Corp.

 303 Sunnyside Blvd.

 Suite 70

 Plainview, NY  11803

 Attention: Chief Executive Officer

	
 	
 
	
 
	
with copies, which will not constitute notice to CSC, to:

	
 	
 
	
 
	
GTCR-CLC, LLC

 c/o GTCR Golder Rauner, L.L.C.

 Sears Tower

 Chicago, IL 60606-6402

 Attention: David A. Donnini

	
 	
 
	
 
	
Kirkland & Ellis

 200 East Randolph Drive

 Chicago, IL 60601

 Attention: Stephen L. Ritchie, P.C.

	
 	
 
	
 
	
Mayer, Brown, Rowe & Maw LLP

 1675 Broadway

 New York, NY 10019

 Attention: Ronald S. Brody

	
 	
 
	
If to Holdings, to:

	
 
	
 
	
Coinmach Holdings, LLC

 c/o Coinmach Laundry Corporation

 521 East Morehead Street

 Suite 590

 Charlotte, NC  28202

 Attention: Stephen R. Kerrigan

	
 	
 
	
 
	
with copies, which will not constitute notice to Holdings, to:

	
 	
 
	
 
	
GTCR-CLC, LLC

 c/o GTCR Golder Rauner, L.L.C.

 Sears Tower

 Chicago, IL 60606-6402

 Attention: David A. Donnini

	
 	
 
	
 
	
Kirkland & Ellis

 200 East Randolph Drive

 Chicago, IL 60601

 Attention: Stephen L. Ritchie, P.C.

	
 	
 
	
 
	
Mayer, Brown, Rowe & Maw LLP

 1675 Broadway

 New York, NY 10019

 Attention: Ronald S. Brody

	
 	
 
	
If to Executive or MCS, to:

	
 
	
 
	
Stephen R. Kerrigan

 c/o Coinmach Corporation

 521 East Morehead

 Charlotte, North Carolina 28202

  

Any notice to an Investor shall be sent to the address for such Investor as set forth in the current records of Holdings and a copy of such notice shall be sent to GTCR and to Kirkland & Ellis at their respective addresses set forth above. 
Any notice under this Agreement will be deemed to have been given when so delivered or sent or, if mailed, five days after deposit in the U.S. mail.

3.3       General Provisions.

           (a)       
Transfers in Violation of Agreement.  Any Transfer or attempted Transfer of any Executive Units in violation of any provision of this Agreement shall be void, and Holdings shall not record such Transfer on its
books or treat any purported transferee of such Executive Units as the owner of such equity for any purpose.

           (b)       
Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

           (c)       
Complete Agreement.  This Agreement, those documents expressly referred to herein and other documents of even date herewith (i) embody the complete agreement and understanding among the parties, (ii) supersede and
preempt any prior summaries of terms and conditions, understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way (except for any indemnity agreement that may be or may have
been entered into by and between Executive and CSC), and (iii) terminate and cancel the Existing Employment Agreement.

           (d)       
Counterparts.  This Agreement may be executed in separate counterparts (including by means of telecopied signature pages), each of which is deemed to be an original and all of which taken together constitute one
and the same agreement.

           (e)       
Successors and Assigns.  Except as otherwise provided herein, this Agreement shall bind MCS, Executive, Holdings, CSC and the Company and their respective successors and permitted assigns and inure to the benefit
of and be enforceable by MCS, Executive, Holdings, CSC, the Company, GTCR, the Investors and each of their respective successors and permitted assigns (including in each case subsequent holders of Executive Units); provided that MCS
may not assign any of its rights under any provision of Article I of this Agreement except as part of a Transfer of Executive Units in accordance with (i) Section 1.3 and Section 1.4 of this Agreement, and (ii) Section 3(a) (participation rights)
and Section 3(c) (permitted transfers) of the Securityholders Agreement.

           (f)        
Choice of Law.  The limited liability company law of the State of Delaware will govern all questions concerning the relative rights of Holdings and its securityholders.  All other questions concerning
the construction, validity and interpretation of this Agreement and the exhibits hereto will be governed by and construed in accordance with the internal laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.

           (g)       
Remedies.  Each of the parties to this Agreement (including the Investors) will be entitled to enforce its rights under this Agreement, specifically, to recover damages and costs (including attorney's fees)
caused by any breach of any provision of this Agreement and to exercise all other rights existing in its favor.  The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and,
except as otherwise provided in Section 2.3(d), that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to
enforce or prevent any violations of the provisions of this Agreement.

           (h)       
Amendment and Waiver.  Except as otherwise expressly provided herein, the provisions of this Agreement may be amended or modified only by written agreement of CSC, the Company and Executive.  No other course
of dealing between the parties or third-party beneficiaries hereof or any delay in exercising any rights hereunder shall operate as a waiver of any rights of any such holders.

           (i)         Survival Upon Termination.  Notwithstanding a Termination, this Agreement (excluding Sections 2.1(a) and (b)) shall survive and continue in full force and effect in accordance with its
terms.

           (j)        
Business Days.  If any time period for giving notice or taking action hereunder expires on a day which is a Saturday, Sunday or holiday in the state in which CSC's chief executive office is located,
the time period shall be automatically extended to the business day immediately following such Saturday, Sunday or holiday.

           (k)       
Indemnification and Reimbursement of Payments on Behalf of Executive/MCS.  CSC, the Company and their respective Subsidiaries shall be entitled to deduct or withhold from any amounts owing from CSC, the Company or
any of their respective Subsidiaries to Executive or MCS, as the case may be, any federal, state, local or foreign withholding taxes, excise taxes, or employment taxes ("Taxes") imposed with respect to Executive's compensation or other
payments from CSC, the Company or any of their respective Subsidiaries or MCS's ownership interest in Holdings, including, without limitation, wages, bonuses, dividends, the receipt or exercise of equity options and/or the receipt or vesting of restricted
equity.  In the event CSC, the Company or their respective Subsidiaries do not make such deductions or withholdings, Executive or MCS, as the case may be, shall indemnify CSC, the Company and their respective Subsidiaries for any amounts paid with respect to any
such Taxes.

           (l)        
Deemed Transfer of Executive Units.  If Holdings (and/or the Investors and/or any other Person acquiring securities) shall make available, at the time and place and in the amount and form provided in
this Agreement, the consideration for the Executive Units to be repurchased in accordance with the provisions of this Agreement, then from and after such time, the Person from whom such Units are to be repurchased shall no longer have any rights as a holder of such
Units (other than the right to receive payment of such consideration in accordance with this Agreement), and such Units shall be deemed purchased in accordance with the applicable provisions hereof and Holdings (and/or the Investors and/or any other Person acquiring
securities) shall be deemed the owner and holder of such Units, whether or not the certificates therefor have been delivered as required by this Agreement.

           (m)      
Rights Granted to GTCR and Other Investors and Their Affiliates.  Any rights granted to GTCR and other Investors and their Affiliates hereunder may also be exercised (in whole or in part) by any Affiliate thereof.

           (n)       
Third-Party Beneficiaries.  Certain provisions of this Agreement are entered into for the benefit of and shall be enforceable by the Investors as provided herein.

           (o)        Descriptive Headings; Interpretation.  The descriptive headings of this Agreement are inserted for convenience only and do not constitute a paragraph of this Agreement.  The use of the word
"including" in this Agreement shall be by way of example rather than by limitation.

*     *     *     *     *

           IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Senior Management Agreement on the date first written above.

	
COINMACH CORPORATION

	
By:   /s/ Robert M. Doyle                         

         Name: Robert M. Doyle

         Title:   Chief Financial Officer

 

	
COINMACH SERVICE CORP.

	
By:    /s/ Robert M. Doyle                        

          Name: Robert M. Doyle

         Title:  Chief Financial
Officer

	

 

	
COINMACH HOLDINGS, LLC

	
By:    /s/ Robert M. Doyle                         

          Name: Robert M. Doyle

          Title:   Chief Financial Officer

 

	
MCS CAPITAL, INC.

	
By:    /s/ Stephen R. Kerrigan                   

          Name: Stephen R. Kerrigan

          Title: President

 

	
EXECUTIVE:

	
/s/ Stephen R. Kerrigan                            

 Stephen R. Kerrigan

CONSENT

            The undersigned spouse of Executive hereby acknowledges that I have read the foregoing Agreement (the "Amended and Restated SMA") and that I understand its contents.  I am
aware that the Amended and Restated SMA provides for the repurchase of the Executive Units under certain circumstances and imposes other restrictions on the transfer of such Executive Units.  I agree that MCS's, my
and my spouse's interest in the Executive Units are subject to:

            (i) the Amended and Restated SMA,

            (ii) the Limited Liability Company Agreement, dated as of March 6, 2003, by and among Coinmach Holdings, LLC ("Holdings") and certain of its members (the "LLC
Agreement"), as amended on November 24, 2004,

            (iii) the Amended and Restated Securityholders Agreement, dated as of November 24, 2004, by and among Holdings and the other parties thereto (the "Securityholders
Agreement"),

            (iv) the Registration Agreement, dated as of March 6, 2003, by and among Holdings and the other parties thereto (the "Registration Agreement"),

            (v) the Management Contribution Agreement, dated as of March 5, 2003, by and between Holdings and MCS Capital, Inc. (the "Contribution Agreement")

            (vi) the Amended and Restated Promissory Note, dated as of March 6, 2003, by MCS Capital, Inc. in favor of Coinmach Laundry Corporation (the "Promissory Note"); and

            (vii) the Amended and Restated Security Agreement, dated as of March 6, 2003, by and between MCS Capital, Inc. and Coinmach Laundry Corporation (the "Security Agreement", and
collectively with the Amended and Restated SMA, the LLC Agreement, the Securityholders Agreement, the Registration Agreement, the Contribution Agreement and the Promissory Note, the "Operative Agreements"). 

            I further agree that any interest I may have, directly or indirectly, in such Executive Units shall be irrevocably bound by the Operative Agreements and that my community or marital property
interest, if any, shall be similarly bound by the Operative Agreements.

	
/s/ Maureen W. Kerrigan                      

 Maureen W. Kerrigan

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