Document:

EX-10.5:

 

EXHIBIT 10.5

 

 

COINMACH SERVICE CORP.

(a Delaware corporation)

Income Deposit Securities

(IDSs)

and

11% Senior Secured Notes due 2024

PURCHASE AGREEMENT

Dated: November 19, 2004

 

 

 

 

COINMACH SERVICE CORP.

(a Delaware corporation)

18,333,333 Income Deposit Securities

Each Representing One Share of

Class A Common Stock, par value $0.01 per share, and

$6.14 Principal Amount of 11% Senior Secured Notes due 2024

and

$20,000,000.06 Aggregate Principal Amount of 11% Senior Secured Notes due 2024

PURCHASE AGREEMENT

November 19, 2004

MERRILL LYNCH & CO.

Merrill Lynch, Pierce, Fenner & Smith
     
Incorporated

as Representative of the several Underwriters

4 World Financial Center

New York, New York 10080

Ladies and Gentlemen:

     Coinmach Service Corp., a Delaware corporation (the “Company”), confirms its agreement
with Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill
Lynch”) and each of the other Underwriters named in Schedule A hereto (collectively, the
“Underwriters”, which term shall also include any underwriter substituted as hereinafter
provided in Section 10 hereof), for whom Merrill Lynch is acting as representative (in such
capacity, the “Representative”), with respect to the issue and sale by the Company and the
purchase by the Underwriters, acting severally and not jointly, of (i) an aggregate of 18,333,333
Income Deposit Securities (“IDSs”), representing an aggregate of 18,333,333 shares of the
Company’s Class A common stock, par value $0.01 per share (the “Common Stock”), and
$112,566,664.62 aggregate principal amount of the Company’s 11% Senior Secured Notes due 2024 (the
“IDS Notes”), and (ii) an additional $20,000,000.06 aggregate principal amount of the
Company’s 11% Senior Secured Notes due 2024 (the “Third Party Notes” and, together with the
IDS Notes, the “Notes”), in each case as set forth in Schedule A hereto, and with respect
to the grant by the Company to the Underwriters, acting severally and not jointly, of the option
described in Section 2(b) hereof to purchase all or any part of an additional 2,749,999 IDSs to
cover over-allotments, if any. The Notes will initially be fully and unconditionally guaranteed on
a senior secured basis (the “Guarantee” and, together with the Notes, the “Note
Securities”) by Coinmach Laundry Corporation, a Delaware corporation (“Laundry Corp.”
and, together with any future guarantor, the “Guarantors”). Each IDS represents one share
of Class A Common Stock and $6.14 principal amount of the IDS Notes. Unless the context otherwise
requires, the 18,333,333 IDSs (the “Initial Securities”) to be purchased by the
Underwriters on the Closing Time (as defined in Section 2(c) hereof) and all or any part of the
2,749,999 IDSs subject to the option described in Section 2(b) hereof (the “Option
Securities”) are hereinafter called, collectively with the Common Stock and the Note
Securities, the “Securities”.

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     The Note Securities will be issued pursuant to an indenture to be dated as of November 24,
2004 (the “Indenture”) between the Company, the Guarantors and The Bank of New York, as
trustee (in such capacity, the “Trustee”) and as collateral agent (in such capacity, the
“Collateral Agent”).

     The Notes will be secured by a first priority lien on substantially all of the existing and
future assets of the Company, including, without limitation, (a) an intercompany note (the
“Intercompany Note”) issued by Coinmach Corporation (“Coinmach Corp.”) to the
Company, (b) the guarantees of the Intercompany Note (the “Intercompany Note Guarantees”
and, together with the Intercompany Note, the “Intercompany Note Obligations”) by certain
subsidiaries of Coinmach Corp., (c) 100% of the capital stock Laundry Corp. and (d) 100% of the
common stock of Appliance Warehouse of America, Inc., a Delaware corporation (“AWA”)
(collectively, the “Company Collateral”). The Guarantee by Laundry Corp. will be secured
by a first priority lien on substantially all of the existing and future assets of Laundry Corp.,
other than the capital stock of Coinmach Corp., which will be subject to a second priority lien
(collectively, the “Laundry Corp. Collateral” and together with the Company Collateral, the
“Collateral”). The lien on the capital stock of Coinmach Corp. will be subordinated,
pursuant to the Intercreditor Agreement, to the lien of the Agent (as defined below) under the
Credit Facility (as defined below). At the Closing Time, the Company will deliver to the
Collateral Agent, pursuant to the terms of the Indenture and the Security Agreement (as defined
below), financing statements (the “Financing Statements”) listing each of the Company and
Laundry Corp. as a debtor and the Collateral Agent as secured party and covering the Collateral
under the security agreement among the Collateral Agent (on its own behalf and on behalf of the
Trustee and the holders of Notes), Laundry Corp. and the Company (the “Security
Agreement”). In addition, the Company and Laundry Corp., as pledgors, and the Collateral Agent
will enter into the pledge agreement to be dated as of the Closing Time (the “Pledge Agreement” and, together
with the Financing Statements, the Security Agreement and the Intercreditor Agreement, the
“Collateral Documents”). The Collateral Documents will provide for the filing,
recordation, indexing and other action as specified therein with respect to the perfection of the
liens on the Collateral. In addition, the capital stock of Coinmach Corp. will be subject to a
first priority lien pursuant to Coinmach Corp.’s amended senior secured credit facility (as amended
through the Closing Time, the “Credit Facility”) dated as of January 25, 2002 among
Coinmach Corp., Deutsche Bank Trust Company Americas, as administrative agent (the “Agent”)
and the lenders party thereto from time to time (the “Lenders”) and the other persons party
thereto from time to time. The agreement relating to the sharing of such capital stock and the
proceeds thereof among the Collateral Agent (on its own behalf and on behalf of the Trustee and the
holders of Notes) and the Agent (on its own behalf and on behalf of the Lenders) will be contained
in a certain intercreditor agreement (the “Intercreditor Agreement”) to be dated as of the
Closing Time among Laundry Corp., the Collateral Agent and the Agent.

     The Company understands that the Underwriters propose to make a public offering of the Initial
Securities and Third Party Notes as soon as the Representative deems advisable after this Agreement
has been executed and delivered.

     The Company has filed with the Securities and Exchange Commission (the “Commission”) a
registration statement on Form S-1 (No. 333-114421), including the related preliminary prospectus
or prospectuses, covering the registration of the Securities under the Securities Act of 1933, as
amended (the “1933 Act”). Promptly after execution and delivery of this Agreement, the
Company will prepare and file a prospectus in accordance with the provisions of Rule 430A
(“Rule 430A”) of the rules and regulations of the Commission under the 1933 Act (the
“1933 Act Regulations”) and paragraph (b) of Rule 424 (“Rule 424(b)”) of the 1933
Act Regulations. The information included in such prospectus that was omitted from such
registration statement at the time it became effective but that is deemed to be part of such
registration statement at the time it became effective pursuant to paragraph (b) of Rule 430A is
referred to as “Rule 430A Information.” Each prospectus used before such registration
statement became effective,

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and any prospectus that omitted the Rule 430A Information, that was
used after such effectiveness and prior to the execution and delivery of this Agreement, is herein
called a “preliminary prospectus.” Such registration statement, including the exhibits and
any schedules thereto, at the time it became effective, and including the Rule 430A Information, is
herein called the “Registration Statement.” Any registration statement filed pursuant to
Rule 462(b) of the 1933 Act Regulations is herein referred to as the “Rule 462(b) Registration
Statement,” and after such filing the term “Registration Statement” shall include the
Rule 462(b) Registration Statement. The final prospectus in the form first furnished to the
Underwriters for use in connection with the offering of the Securities is herein called the
“Prospectus.” For purposes of this Agreement, all references to the Registration
Statement, any preliminary prospectus, the Prospectus or any amendment or supplement to any of the
foregoing shall be deemed to include the copy filed with the Commission pursuant to its Electronic
Data Gathering, Analysis and Retrieval system (“EDGAR”).

     In connection with this offering, the Company will consummate certain restructuring
transactions as described in the preliminary prospectus under “Summary—Summary of the
Transactions”, “Use of Proceeds” and “The Transactions” (collectively, the “Related
Transactions”). The primary agreements relating to the Related Transactions are listed on
Schedule D hereto (collectively with the Collateral Documents, the “Related Transaction
Documents”).

     SECTION 1. Representations and Warranties.

     (a) Representations and Warranties by the Company and Laundry Corp. Each of the Company and
Laundry Corp. represents and warrants to each Underwriter as of the date hereof, as of the Closing
Time, and as of each Date of Delivery (if any) referred to in Section 2(b) hereof, and
agrees with each Underwriter, as follows:

     (i) Compliance with Registration Requirements. Each of the Registration
Statement and any Rule 462(b) Registration Statement and any post-effective amendment
thereto has become effective under the 1933 Act, and no stop order suspending the
effectiveness of the Registration Statement, any Rule 462(b) Registration Statement or any
post-effective amendment thereto has been issued under the 1933 Act, and no proceedings for
that purpose have been instituted or are pending or, to the knowledge of the Company, are
contemplated by the Commission, and any request on the part of the Commission for additional
information has been complied with.

     At the respective times the Registration Statement, any Rule 462(b) Registration
Statement and any post-effective amendments thereto became effective and at the Closing Time
(and, if any Option Securities are purchased, at the Date of Delivery), the Registration
Statement, the Rule 462(b) Registration Statement and any amendments and supplements
thereto, but excluding for the purposes of this representation the exhibits thereto,
complied and will comply in all material respects with the requirements of the 1933 Act and
the 1933 Act Regulations and did not and will not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading. Neither the Prospectus nor any amendments or supplements
thereto, at the time the Prospectus or any such amendment or supplement was issued and at
the Closing Time (and, if any Option Securities are purchased, at the Date of Delivery),
included or will include an untrue statement of a material fact or omitted or will omit to
state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. The representations and
warranties in this subsection shall not apply to statements in or omissions from the
Registration Statement or Prospectus made in reliance upon and in conformity with written
information furnished to the Company by any Underwriter through Merrill Lynch expressly for
use in the

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Registration Statement (or any amendment thereto) or the Prospectus (or any
amendment or supplement thereto).

     Each preliminary prospectus and the prospectus filed as part of the Registration
Statement as originally filed or as part of any amendment thereto complied when so filed in
all material respects with the 1933 Act Regulations and each preliminary prospectus and the
Prospectus delivered to the Underwriters for use in connection with this offering was
identical to the electronically transmitted copies thereof filed with the Commission
pursuant to EDGAR, except to the extent permitted by Regulation S-T.

     (ii) Independent Accountants. The accountants who certified the financial
statements and supporting schedules included in the Registration Statement are independent
public accountants as required by the 1933 Act and the 1933 Act Regulations.

     (iii) Financial Statements. The financial statements included in the
Registration Statement and the Prospectus, together with the related schedules and notes,
present fairly the financial position of the Company and its consolidated subsidiaries at
the dates indicated and the statement of operations, stockholders’ equity and cash flows of
the Company and its consolidated subsidiaries for the periods specified; said financial
statements have been prepared in conformity with generally accepted accounting principles
(“GAAP”) applied on a consistent basis throughout the periods involved. The
supporting schedules included in the Registration Statement present fairly in accordance
with GAAP the information required to be stated therein. The selected financial data and
the summary financial information included in the Prospectus present fairly the
information shown therein and have been compiled on a basis consistent with that of the
audited financial statements included in the Registration Statement. The pro forma
financial statements and the related notes thereto included in the Registration Statement
and the Prospectus present fairly the information shown therein, have been prepared in
accordance with the Commission’s rules and guidelines with respect to pro forma financial
statements and have been properly compiled on the bases described therein, and the
assumptions used in the preparation thereof are reasonable and the adjustments used therein
are appropriate to give effect to the transactions and circumstances referred to therein.

     (iv) No Material Adverse Change in Business. Since the respective dates as of
which information is given in the Registration Statement and the Prospectus, except as
otherwise stated therein, (A) there has been no material adverse change in the condition,
financial or otherwise, or in the earnings, business affairs or business prospects of the
Company and its subsidiaries considered as one enterprise, whether or not arising in the
ordinary course of business (a “Material Adverse Effect”), (B) there have been no
transactions entered into by the Company or any of its subsidiaries, other than those in the
ordinary course of business, which are material with respect to the Company and its
subsidiaries considered as one enterprise, and (C) there has been no dividend or
distribution of any kind declared, paid or made by the Company on any class of its capital
stock.

     (v) Good Standing of the Company. The Company has been duly organized and is
validly existing as a corporation in good standing under the laws of the State of Delaware
and has corporate power and authority to own, lease and operate its properties and to
conduct its business as described in the Prospectus and to enter into and perform its
obligations under this Agreement and the Related Transaction Documents; and the Company is
duly qualified as a foreign corporation to transact business and is in good standing in each
other jurisdiction in which such qualification is required, whether by reason of the
ownership or leasing of property or the

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conduct of business, except where the failure so to
qualify or to be in good standing would not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect.

     (vi) Good Standing of Subsidiaries. Laundry Corp. and each “significant
subsidiary” of the Company (as such term is defined in Rule 1-02 of Regulation S-X,
including, without limitation, Laundry Corp., Coinmach Corp., AWA and Super Laundry
Equipment Corp., a New York corporation) (each, a “Subsidiary” and collectively, the
“Subsidiaries”) has been duly organized and is validly existing as a corporation in
good standing under the laws of the jurisdiction of its incorporation, has corporate power
and authority to own, lease and operate its properties and to conduct its business as
described in the Prospectus and is duly qualified as a foreign corporation to transact
business and is in good standing in each jurisdiction in which such qualification is
required, whether by reason of the ownership or leasing of property or the conduct of
business, except where the failure so to qualify or to be in good standing would not
reasonably be expected to result in a Material Adverse Effect; except as otherwise disclosed
in the Registration Statement, all of the issued and outstanding capital stock of each such
Subsidiary has been duly authorized and validly issued, is fully paid and non-assessable and
is owned by the Company, directly or through subsidiaries, free and clear of any security
interest, mortgage, pledge, lien, encumbrance, claim or equity; none
of the outstanding
shares of capital stock of any Subsidiary was issued in violation of the preemptive or
similar rights of any securityholder of such Subsidiary. The only subsidiaries of the
Company are (a) the subsidiaries listed on Exhibit 21 to the Registration Statement and (b)
certain other subsidiaries which, considered in the aggregate as a single Subsidiary, do not
constitute a “significant subsidiary” as defined in Rule 1-02 of Regulation S-X.

     (vii) Capitalization. The authorized, issued and outstanding capital stock of
the Company is as set forth in the Prospectus in the column entitled “Actual” under the
caption “Capitalization” (except for subsequent issuances, if any, pursuant to this
Agreement, pursuant to reservations, agreements or employee benefit plans referred to in the
Prospectus or pursuant to the exercise of convertible securities or options referred to in
the Prospectus). The shares of issued and outstanding capital stock (including, without
limitation, the Common Stock) of the Company have been duly authorized and validly issued
and are fully paid and non-assessable; none of the outstanding shares of capital stock
(including, without limitation, the Common Stock) of the Company was issued in violation of
the preemptive or other similar rights of any securityholder of the Company.

     (viii) Authorization of Agreement. This Agreement has been duly authorized,
executed and delivered by each of the Company and Laundry Corp.

     (ix) Authorization and Enforceability of the Securities. The Securities have
been duly authorized for issuance and sale to the Underwriters pursuant to this Agreement
and, when issued and delivered by the Company and Laundry Corp., as applicable, pursuant to
this Agreement against payment of the consideration set forth herein, will be validly
issued, fully paid and non-assessable and will constitute valid and binding obligations of
the Company and Laundry Corp., as applicable, enforceable against the Company and Laundry
Corp., as applicable, in accordance with their terms, except as the enforcement thereof may
be limited by bankruptcy, insolvency (including, without limitation, all laws relating to
fraudulent transfers) reorganization, moratorium or similar laws affecting enforcement of
creditors’ rights generally and except as enforcement thereof is subject to general
principles of equity (regardless of whether enforcement is considered in a proceeding in
equity or at law); no holder of the Securities will be subject to personal liability by
reason of being such a holder; and the issuance of the Securities is not subject to the
preemptive or other similar rights of any securityholder of the Company.

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     (x) Authorization and Enforceability of the Indenture. The Indenture has been
duly authorized by the Company and Laundry Corp. and meets the standards and requirements
for qualification under the United States Trust Indenture Act of 1939, as amended (the
“1939 Act”), and the rules and regulations of the Commission applicable to an
indenture that is qualified thereunder, and, when executed and delivered by the Company,
Laundry Corp. and the Trustee, will constitute a valid and binding agreement of the Company
and Laundry Corp. enforceable against the Company and Laundry Corp. in accordance with its
terms, except as the enforcement thereof may be limited by bankruptcy, insolvency
(including, without limitation, all laws relating to fraudulent transfers), reorganization,
moratorium or similar laws affecting enforcement of creditors’ rights generally and except
as enforcement thereof is subject to general principles of equity (regardless of whether
enforcement is considered in a proceeding in equity or at law).

     (xi) Authorization and Enforceability of the Note Securities. The Note
Securities have been duly authorized and, at the Closing Time, will have been duly executed
by the Company and Laundry Corp., as applicable, and, when duly authenticated, issued and
delivered in the manner provided for in the Indenture and delivered against payment of the
purchase price therefor as provided in this Agreement, will constitute valid and binding
obligations of the Company and Laundry Corp., as applicable, enforceable against the Company
and Laundry Corp. in accordance with their terms, except as the enforcement thereof may be
limited by bankruptcy, insolvency (including, without limitation, all laws relating to
fraudulent transfers) reorganization, moratorium or similar laws affecting enforcement of
creditors’ rights generally and except as enforcement thereof is subject to general
principles of equity (regardless of whether enforcement is considered
in a proceeding in equity or at law), and will be in the form contemplated by, and
entitled to the benefits of, the Indenture.

     (xii) Authorization and Enforceability of the Intercompany Note Obligations.
The Intercompany Note and Intercompany Note Guarantees have been duly authorized and, at the
Closing Time, will have been duly executed by Coinmach Corp. and each of the guarantors
under the Intercompany Guarantees (the “Intercompany Note Guarantors”), as
applicable, and, when authenticated, issued and delivered to the Company, will constitute
valid and binding obligations of Coinmach Corp. and the Intercompany Note Guarantors, as
applicable, enforceable against Coinmach Corp. and the Intercompany Note Guarantors, as
applicable, in accordance with their terms, except as the enforcement thereof may be limited
by bankruptcy, insolvency (including, without limitation, all laws relating to fraudulent
transfers) reorganization, moratorium or similar laws affecting enforcement of creditors’
rights generally and except as enforcement thereof is subject to general principles of
equity (regardless of whether enforcement is considered in a proceeding in equity or at
law).

     (xiii) Authorization of the Related Transaction Documents. The Related
Transaction Documents have been duly authorized (to the extent a party thereto) by the
Company and its subsidiaries, as applicable, and when executed and delivered (to the extent
a party thereto) by the Company and its subsidiaries (assuming the due authorization,
execution and delivery by each of the other parties thereto), will constitute valid and
legally binding agreements of the Company and its subsidiaries (to the extent a party
thereto), enforceable against them in accordance with their terms, in each case, to the
extent the Company or such subsidiary is a party thereto, and except that the enforcement
thereof may be limited by applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws affecting the enforcement of creditors’
rights generally and by general equitable principles.

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     (xiv) Description of the Securities, the Indenture and the Intercompany Note
Obligations. The Securities, the Indenture and the Intercompany Note Obligations will
conform in all material respects to the statements relating thereto contained in the
Prospectus.

     (xv) Copies of Related Transaction Documents. The Company has delivered to the
Representative a true and correct copy of each of the Related Transaction Documents that
have been executed and delivered prior to the date of this Agreement and each other Related
Transaction Document in the form substantially as it will be executed and delivered on or
prior to the Closing Time, together with all schedules and exhibits thereto, and as of the
date hereof there have been no material amendments, alterations, modifications or waivers of
any of the provisions of any of the Related Transaction Documents since their date of
execution or from the form in which such Related Transaction Documents have been delivered
to the Representative. The Related Transaction Documents conform, in all material respects,
with the descriptions thereof in the Registration Statement or the Prospectus.

     (xvi) Absence of Defaults and Conflicts. Neither the Company nor any of its
subsidiaries is in violation of its charter or by-laws or in default in the performance or
observance of any obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other agreement
or instrument to which the Company or any of its subsidiaries is a party or by which it or
any of them may be bound, or to which any of the property or assets of the Company or any of
its subsidiaries is subject (collectively, “Agreements and Instruments”) except for
such defaults that would not, individually or in the aggregate, reasonably be expected to
result in a Material Adverse Effect; and the execution,
delivery and performance of this Agreement, the Indenture, the Securities, the
Intercompany Note Obligations and the Related Transaction Documents and any other agreement
or instrument entered into or issued or to be entered into or issued by the Company in
connection with the transactions contemplated hereby or thereby or in the Prospectus and the
consummation of the transactions contemplated herein and in the Registration Statement
(including the issuance and sale of the Securities and the use of the proceeds from the sale
of the Securities as described in the Prospectus under the caption “Use of Proceeds”) and
compliance by the Company with its obligations hereunder have been duly authorized by all
necessary corporate action and do not and will not, whether with or without the giving of
notice or passage of time or both, conflict with or constitute a breach of, or default or
Repayment Event (as defined below) under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Company or any of its
subsidiaries pursuant to, the Agreements and Instruments except for (a) with respect to
liens, charges or encumbrances, the liens in favor of the Collateral Agent contemplated by
the Collateral Documents and (b) such conflicts, breaches, defaults or Repayments Events or
liens, charges or encumbrances that, individually or in the aggregate, would not reasonably
be expected to result in a Material Adverse Effect, nor will such action result in any
violation of the provisions of the charter or by-laws of the Company or any of its
subsidiaries or, except such violations that, individually or in the aggregate, would not
reasonably be expected to result in a Material Adverse Effect, any applicable law, statute,
rule, regulation, judgment, order, writ or decree of any government, government
instrumentality or court, domestic or foreign, having jurisdiction over the Company or any
of its subsidiaries or any of their assets, properties or operations. As used herein, a
“Repayment Event” means any event or condition which gives the holder of any note,
debenture or other evidence of indebtedness (or any person acting on such holder’s behalf)
the right to require the repurchase, redemption or repayment of all or a portion of such
indebtedness by the Company or any of its subsidiaries.

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     (xvii) Absence of Labor Dispute. No labor dispute with the employees of the
Company or any subsidiary exists or, to the knowledge of the Company, is imminent, and the
Company is not aware of any existing or imminent labor disturbance by the employees of any
of its or any subsidiary’s principal suppliers, manufacturers, customers or contractors,
which, in either case, would reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect.

     (xviii) Taxes. The Company and its subsidiaries have timely filed all federal,
state, local and foreign tax returns that are required to be filed or have duly requested
extensions thereof and all such tax returns are true, correct and complete, except to the
extent that any failure to file or request an extension, or any incorrectness would not,
individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect. The Company and its Subsidiaries have timely paid all taxes shown as due on such
filed tax returns (including any related assessments, fines or penalties), except to the
extent that any such taxes are being contested in good faith and by appropriate proceedings,
or to the extent that any failure to pay would not reasonably be expected to result in a
Material Adverse Effect; and adequate charges, accruals and reserves have been provided for
in the financial statements referred to in Section 1(a)(iii) above in accordance with GAAP
in respect of all federal, state, local and foreign taxes for all periods as to which the
tax liability of the Company or any of its Subsidiaries has not been finally determined or
remains open to examination by applicable taxing authorities, except to the extent that any
failure to create adequate charges, accruals and reserves would not reasonably be expected
to result in a Material Adverse Effect.

     (xix) Internal Controls. The Company and its subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable assurances that (A)
transactions are executed in accordance with management’s general or specific authorization,
(B) transactions are recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain accountability for assets, (C) access to assets is
permitted only in accordance with management’s general or specific authorization and (D) the
recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

     (xx) Insurance. The Company and its subsidiaries carry or are entitled to the
benefits of insurance with financially sound and reputable insurers in such amounts and
covering such risks as in the good faith judgment of the Board of Directors of the Company
is sufficient given the nature of the Company’s business as of the date hereof, all of which
insurance is duly in force and effect.

     (xxi) ERISA. None of the Company or its subsidiaries has any material
liability for any prohibited transaction with respect to any pension, profit sharing or
other plan that is subject to the Employee Retirement Income Security Act of 1974, as
amended, including the regulations and published interpretations thereunder
(“ERISA”). None of the Company or any of its subsidiaries maintains or has any
obligation to contribute to or otherwise has any liability with respect to any pension plan
subject to Title IV of ERISA. Each pension, profit sharing or other plan that is subject to
ERISA and which is maintained by the Company or any subsidiary of the Company is in
compliance in all material respects with all applicable provisions of ERISA.

     (xxii) Statistical and Market-Related Data. The statistical and market-related
data included in the Prospectus are based on or derived from sources which the Company
believes to be reliable and accurate.

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     (xxiii) NASD. There are no affiliations with the National Association of
Securities Dealers, Inc. (the “NASD”) among the Company’s officers, directors or any
stockholder of the Company, except as disclosed in the Registration Statement.

     (xxiv) Absence of Proceedings. There is no action, suit, proceeding, inquiry
or investigation before or brought by any court or governmental agency or body, domestic or
foreign, now pending, or, to the knowledge of the Company, threatened, against or affecting
the Company or any subsidiary, which is required to be disclosed in the Registration
Statement (other than as disclosed therein), or that would, individually or in the
aggregate, be reasonably expected to result in a Material Adverse Effect, or that would
reasonably be expected to materially and adversely affect the properties or assets thereof
or the consummation of the transactions contemplated in this Agreement or in the Related
Transaction Documents or the performance by the Company of its obligations hereunder; the
aggregate of all pending legal or governmental proceedings to which the Company or any
subsidiary is a party or of which any of their respective property or assets is the subject
which are not described in the Registration Statement, including ordinary routine litigation
incidental to the business, could not reasonably be expected to result in a Material Adverse
Effect.

     (xxv) Accuracy of Exhibits. There are no contracts or documents which are
required to be described in the Registration Statement or the Prospectus or to be filed as
exhibits thereto which have not been so described and filed as required. Each contract or
document that is filed as an exhibit to the Registration Statement is a true and complete
copy of the contract or document that it purports to be.

     (xxvi) Possession of Intellectual Property. The Company and its subsidiaries
own or possess, or can acquire on reasonable terms, adequate patents, patent rights,
licenses, inventions, copyrights, know-how (including trade secrets and other unpatented
and/or unpatentable proprietary or confidential information, systems or procedures),
trademarks, service marks, trade names or other intellectual property (collectively,
“Intellectual Property”) necessary to carry on the business now operated by them and
described in the Registration Statement or Prospectus, and neither the Company nor any of
its subsidiaries has received any notice or is otherwise aware of any infringement of or
conflict with asserted rights of others with respect to any Intellectual Property or of any
facts or circumstances which would render any Intellectual Property invalid or inadequate to
protect the interest of the Company or any of its subsidiaries therein, and which
infringement or conflict (if the subject of any unfavorable decision, ruling or finding) or
invalidity or inadequacy would, individually or in the aggregate, result in a Material
Adverse Effect.

     (xxvii) Absence of Further Requirements. No filing with, or authorization,
approval, consent, license, order, registration, qualification or decree of, any court or
governmental authority or agency is necessary or required for the performance by the Company
of its obligations hereunder, in connection with the offering, issuance or sale of the
Securities hereunder or the consummation of the transactions contemplated by this Agreement,
the Indenture, the Intercompany Note Obligations or the Related Transaction Documents,
except (A) such as have been already obtained, (B) such as may be required by the securities
or Blue Sky laws of the various states in connection with the offer and sale of the
Securities, and (C) the filing of the Financing Statements with the Secretary of State of
the State of Delaware.

     (xxviii) Absence of Manipulation. None of the Company, any affiliate
controlled by the Company within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act or, to the knowledge of the Company, any other affiliate of the Company has
taken, nor will the

10

 

Company, any affiliate controlled by the Company or, to the knowledge of
the Company, any other affiliate of the Company take, directly or indirectly, any action
which is designed to or which has constituted or which would be expected to cause or result
in stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of the Securities or the Common Stock or Notes underlying the Securities.

     (xxix) Possession of Licenses and Permits. The Company and its subsidiaries
possess such permits, licenses, approvals, consents and other authorizations (collectively,
“Governmental Licenses”) issued by the appropriate federal, state, local or foreign
regulatory agencies or bodies necessary to conduct the business now operated by them and
described in the Registration Statement or Prospectus, except where the failure so to
possess would not, individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect; the Company and its subsidiaries are in compliance with the terms
and conditions of all such Governmental Licenses, except where the failure so to comply
would not, individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect; all of the Governmental Licenses are valid and in full force and effect,
except when the invalidity of such Governmental Licenses or the failure of such Governmental
Licenses to be in full force and effect would not, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect; and neither the Company nor
any of its subsidiaries has received any notice of proceedings relating to the revocation or
modification of any such Governmental Licenses which, individually or in the aggregate, if
the subject of an unfavorable decision, ruling or finding, would reasonably be expected to
result in a Material Adverse Effect.

     (xxx) Title to Property. The Company and its Subsidiaries have good and
marketable title to all real property owned by the Company and its Subsidiaries and good
title to all other properties owned by them, in each case, free and clear of all mortgages,
pledges, liens, security interests, claims, restrictions or encumbrances of any kind except
such as (a) are described in the Prospectus, (b) constitute Permitted Liens (as defined in
the Indenture) or (c) do not, individually or in the aggregate, materially and adversely
affect the value of such property and do not interfere with the use made and proposed to be
made of such property by the Company or any of its Subsidiaries; and all of the leases and
subleases material to the business of the Company and its subsidiaries, considered as one
enterprise, and under which the Company or any of its subsidiaries holds properties
described in the Prospectus, are in full force and effect, and neither the Company nor any
subsidiary has any notice of any claim of any sort that has been asserted by anyone adverse
to the rights of the Company or any subsidiary under any of the leases or subleases
mentioned above, or affecting or questioning the rights of the Company or such subsidiary to
the continued possession of the leased or subleased premises under any such lease or
sublease, in each case, except as would not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect.

     (xxxi) Investment Company Act. The Company is not required, and upon the
issuance and sale of the Securities as herein contemplated and the application of the net
proceeds therefrom as described in the Prospectus will not be required, to register as an
“investment company” under the Investment Company Act of 1940, as amended (the “1940
Act”).

     (xxxii) Environmental Laws. Except as described in the Registration Statement
or Prospectus and except as would not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect, (A) neither the Company nor any of its
subsidiaries is in violation of any federal, state, local or foreign statute, law, rule,
regulation, ordinance, code or rule of common law or any judicial or

11

 

administrative
interpretation thereof, including any judicial or administrative order, consent, decree or
judgment, relating to pollution or protection of human health, the environment (including,
without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata) or wildlife, including, without limitation, laws and regulations relating to the
release or threatened release of chemicals, pollutants, contaminants, wastes, toxic
substances, hazardous substances, petroleum or petroleum products, asbestos-containing
materials or mold (collectively, “Hazardous Materials”) or to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of
Hazardous Materials (collectively, “Environmental Laws”), (B) the Company and its
subsidiaries have all permits, authorizations and approvals required under any applicable
Environmental Laws and are each in compliance with their requirements, (C) there are no
pending or, to the Company’s knowledge, threatened administrative, regulatory or judicial
actions, suits, investigations or proceedings relating to any Environmental Law against the
Company or any of its subsidiaries and (D) there are no events or circumstances that would
reasonably be expected to form the basis of an order for clean-up or remediation, or an
action, suit or proceeding by any private party or governmental body or agency, against or
affecting the Company or any of its subsidiaries relating to Hazardous Materials or any
Environmental Laws.

     (xxxiii) Solvency. Immediately prior to and after the consummation of the
transactions contemplated by this Agreement and the Related Transactions, (i) the fair value
and present fair saleable value of the assets of the Company and its subsidiaries taken as a
whole will exceed the sum of its stated liabilities and identified contingent liabilities;
and (ii) the Company and its subsidiaries taken as a whole is not, nor will it be, after
giving effect to the execution, delivery and performance of this Agreement and the Related
Transaction Documents, and the consumma
tion of the transaction contemplated hereby and thereby, (a) left with unreasonably
small capital with which to carry on its business as it is proposed to be conducted, (b)
unable to pay its debts (contingent or otherwise) as they mature or (c) otherwise insolvent.

     (xxxiv) Security Interests. The Collateral Documents, once executed and
delivered in connection with the sale of the Securities, and upon the proper filing and
indexation of applicable Financing Statements with the proper governmental authorities
(together with payment of the appropriate filing fees), will create valid and perfected
security interests in the personal property and fixtures subject thereto in favor of the
Collateral Agent on behalf of the holders of the Notes, subject only to Permitted Liens (as
defined in the Indenture).

     (xxxv) Reorganization. Concurrently with or prior to the Closing Time,
Coinmach Holdings, LLC, a Delaware limited liability company (“Holdings”) has
exchanged (a) certain shares of capital stock of Laundry Corp. for outstanding units of
Holdings in order to redeem such Holdings units, and (b) all the remaining outstanding
shares of capital stock of Laundry Corp and all of the shares of non-voting common stock of
AWA for shares of Company’s Class B common stock, par value $0.01 per share (such
transactions collectively referred to as the “Reorganization”), such that, after
giving effect to the Reorganization, Laundry Corp. will be a direct wholly owned subsidiary
of the Company and AWA will be entirely owned by the Company and Coinmach Corp.

     (xxxvi) Listing. The IDSs have been duly authorized for listing on the
American Stock Exchange, subject only to official notice of issuance. A registration
statement with respect to the IDSs has been filed on Form 8-A pursuant to Section 12 of the
1934 Act, which registration statement complies in all material respects with the 1934 Act.
The Company has taken no action designed to, or likely to have the effect of, terminating
the registration of the Securities under the

12

 

1934 Act, nor has the Company received any
notification that the Commission is contemplating terminating such registration.

     (xxxvii) Registration Rights. There are no persons with registration rights or
other similar rights to have any securities registered under the 1933 Act pursuant to the
Registration Statement or otherwise registered by the Company under the 1933 Act.

     (b) Officer’s Certificates. Any certificate signed by any officer of the Company or any of
its subsidiaries delivered to the Representative or to counsel for the Underwriters shall be deemed
a representation and warranty by the Company to each Underwriter as to the matters covered thereby.

     SECTION 2. Sale and Delivery to Underwriters; Closing.

     (a) Initial Securities. On the basis of the representations and warranties herein contained
and subject to the terms and conditions herein set forth, the Company agrees to sell to each
Underwriter, severally and not jointly, and each Underwriter, severally and not jointly, agrees to
purchase from the Company, at the price per IDS and per Third Party Note set forth in Schedule B,
the number of Initial Securities and Third Party Notes, in each case as set forth in Schedule A
opposite the name of such Underwriter, plus any additional number of Initial Securities which such
Underwriter may become obligated to purchase pursuant to the provisions of Section 10 hereof.

     (b) Option Securities. In addition, on the basis of the representations and warranties herein
contained and subject to the terms and conditions herein set forth, the Company hereby grants an
option to the Underwriters, severally and not jointly, to purchase up to an additional 2,749,999
IDSs at the price per Option Security set forth in Schedule B, plus an amount per Option Security
equal to accrued and unpaid interest with respect to the underlying IDS Note. The option hereby granted will expire
30 days after the date hereof and may be exercised in whole or in part from time to time only for
the purpose of covering over-allotments which may be made in connection with the offering and
distribution of the Initial Securities upon notice by Merrill Lynch to the Company setting forth
the number of Option Securities as to which the several Underwriters are then exercising the option
and the time and date of payment and delivery for such Option Securities. Any such time and date
of delivery (a “Date of Delivery”) shall be determined by Merrill Lynch, but shall not be
later than seven full business days after the exercise of said option, nor in any event prior to
the Closing Time. If the option is exercised as to all or any portion of the Option Securities,
each of the Underwriters, acting severally and not jointly, will purchase that proportion of the
total number of Option Securities then being purchased which the number of Initial Securities set
forth in Schedule A opposite the name of such Underwriter bears to the total number of Initial
Securities, subject in each case to such adjustments as Merrill Lynch in its discretion shall make
to eliminate any sales or purchases of fractional IDSs.

     (c) Payment. Payment of the purchase price for, and delivery of certificates for, the Third
Party Notes and the Initial Securities shall be made at the offices of Mayer, Brown, Rowe & Maw
LLP, 1675 Broadway, New York, New York 10019, or at such other place as shall be agreed upon by the
Representative and the Company, at 9:00 A.M. (Eastern time) on the third (fourth, if the pricing
occurs after 4:30 P.M. (Eastern time) on any given day) business day after the date hereof (unless
postponed in accordance with the provisions of Section 10 hereof), or such other time not later
than ten business days after such date as shall be agreed upon by the Representative and the
Company (such time and date of payment and delivery, the “Closing Time”).

     In addition, in the event that any or all of the Option Securities are purchased by the
Underwriters, payment of the purchase price for, and delivery of certificates for, such Option
Securities shall be

13

 

made at the above-mentioned offices, or at such other place as shall be agreed
upon by the Representative and the Company, on each Date of Delivery as specified in the notice
from the Representative to the Company.

     Payment shall be made to the Company by wire transfer of immediately available funds to a bank
account designated in writing by the Company, against delivery to the Representative for the
respective accounts of the Underwriters of certificates for the Securities to be purchased by them.
It is understood that each Underwriter has authorized the Representative, for its account, to
accept delivery of, receipt for, and make payment of the purchase price for, the Third Party Notes,
the Initial Securities and the Option Securities, if any, which it has agreed to purchase. Merrill
Lynch, individually and not as representative of the Underwriters, may (but shall not be obligated
to) make payment of the purchase price for the Third Party Notes, the Initial Securities or the
Option Securities, if any, to be purchased by any Underwriter whose funds have not been received by
the Closing Time or the relevant Date of Delivery, as the case may be, but such payment shall not
relieve such Underwriter from its obligations hereunder.

     (d) Denominations; Registration. Certificates for the Third Party Notes (including the
Guarantees thereof), the Initial Securities and the Option Securities, if any, shall be in such
denominations and registered in such names as the Representative may request in writing at least
one full business day before the Closing Time or the relevant Date of Delivery, as the case may be.
The certificates for the Third Party Notes (including the Guarantees thereof), the Initial
Securities and the Option Securities, if any, will be made available for examination and packaging
by the Representative in The City of New York not later than 10:00 A.M. (Eastern time) on the
business day prior to the Closing Time or the relevant Date of Delivery, as the case may be.

     SECTION 3. Covenants of the Company. The Company covenants with each Underwriter as
follows:

     (a) Compliance with Securities Regulations and Commission Requests. The Company, subject to
Section 3(b), will comply with the requirements of Rule 430A and will notify the Representative
promptly, and confirm the notice in writing, (i) when any post-effective amendment to the
Registration Statement shall become effective, or any supplement to the Prospectus or any amended
Prospectus shall have been filed, (ii) of the receipt of any comments from the Commission regarding
the Registration Statement or otherwise relating to or in connection with the proposed offering of
the Securities, (iii) of any request by the Commission for any amendment to the Registration
Statement or any amendment or supplement to the Prospectus or for additional information, and (iv)
of the issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or of any order preventing or suspending the use of any preliminary
prospectus, or of the suspension of the qualification of the Securities for offering or sale in any
jurisdiction, or of the initiation or threatening of any proceedings for any of such purposes. The
Company will promptly effect the filings necessary pursuant to Rule 424(b) and will take such steps
as it deems necessary to ascertain promptly whether the form of prospectus transmitted for filing
under Rule 424(b) was received for filing by the Commission and, in the event that it was not, it
will promptly file such prospectus. The Company will use commercially reasonable efforts to
prevent the issuance of any stop order and, if any stop order is issued, to obtain the lifting
thereof at the earliest practicable moment.

     (b) Filing of Amendments. The Company will give the Representative notice of its intention to
file or prepare any amendment to the Registration Statement (including any filing under Rule
462(b)) or any amendment, supplement or revision to either the prospectus included in the
Registration Statement at the time it became effective or to the Prospectus, will furnish the
Representative with copies of any such documents a reasonable amount of time prior to such proposed
filing or use, as the case may be, and

14

 

will not file or use any such document to which the
Representative or counsel for the Underwriters shall reasonably object.

     (c) Delivery of Registration Statements. The Company has furnished or will deliver to the
Representative and counsel for the Underwriters, without charge, signed copies of the Registration
Statement as originally filed and of each amendment thereto (including exhibits filed therewith or
incorporated by reference therein) and signed copies of all consents and certificates of experts,
and will also deliver to the Representative, without charge, a conformed copy of the Registration
Statement as originally filed and of each amendment thereto (without exhibits) for each of the
Underwriters. The copies of the Registration Statement and each amendment thereto furnished to the
Underwriters will be identical to the electronically transmitted copies thereof filed with the
Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.

     (d) Delivery of Prospectuses. The Company has delivered to each Underwriter, without charge,
as many copies of each preliminary prospectus as such Underwriter reasonably requested, and the
Company hereby consents to the use of such copies for purposes permitted by the 1933 Act. The
Company will furnish to each Underwriter, without charge, during the period when the Prospectus is
required to be delivered under the 1933 Act, such number of copies of the Prospectus (as amended or
supplemented) as such Underwriter may reasonably request. The Prospectus and any amendments or
supplements thereto furnished to the Underwriters will be identical to the electronically
transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent
permitted by Regulation S-T.

     (e) Continued Compliance with Securities Laws. The Company will comply with the 1933 Act and
the 1933 Act Regulations so as to permit the completion of the distribution of the Securities as
contemplated in this Agreement and in the Prospectus. If at any time when a prospectus is
required by the 1933 Act to be delivered in connection with sales of the Securities, any event
shall occur or condition shall exist as a result of which it is necessary, in the opinion of
counsel for the Underwriters and counsel for the Company, to amend the Registration Statement or
amend or supplement the Prospectus in order that the Prospectus will not include any untrue
statements of a material fact or omit to state a material fact necessary in order to make the
statements therein not misleading in the light of the circumstances existing at the time it is
delivered to a purchaser, or if it shall be necessary, in the opinion of such counsel, at any such
time to amend the Registration Statement or amend or supplement the Prospectus in order to comply
with the requirements of the 1933 Act or the 1933 Act Regulations, the Company will, as soon as
reasonably practicable, prepare and file with the Commission, subject to Section 3(b), such
amendment or supplement as may be necessary to correct such statement or omission or to make the
Registration Statement or the Prospectus comply with such requirements, and the Company will
furnish to the Underwriters such number of copies of such amendment or supplement as the
Underwriters may reasonably request.

     (f) Blue Sky Qualifications. The Company will use its commercially reasonable efforts, in
cooperation with the Underwriters, to qualify the Securities for offering and sale under the
applicable securities laws of such states and other jurisdictions as the Representative may
reasonably designate and to maintain such qualifications in effect for a period of not less than
one year from the later of the effective date of the Registration Statement and any Rule 462(b)
Registration Statement; provided, however, that the Company shall not be obligated
to file any general consent to service of process or to qualify as a foreign corporation or as a
dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to
taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject.

     (g) Rule 158. The Company will timely file such reports pursuant to the Securities Exchange
Act of 1934 (the “1934 Act”) as are necessary in order to make generally available to its
securityholders

15

 

as soon as practicable an earnings statement for the purposes of, and to provide
the benefits contemplated by, the last paragraph of Section 11(a) of the 1933 Act.

     (h) Use of Proceeds. The Company will use the net proceeds received by it from the sale of
the Securities in the manner specified in the Prospectus under “Use of Proceeds.”

     (i) Listing. The Company will use its commercially reasonable efforts to effect the listing
of the IDSs on the American Stock Exchange.

     (j) Restriction on Sale of Securities. Other than the sale of Securities hereunder, during a
period of 180 days from the date of the Prospectus (the “Lock-Up Period”), the Company will
not, without the prior written consent of Merrill Lynch, (i) directly or indirectly, offer, pledge,
sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to
sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of any of the
Company’s IDSs, Common Stock, Note Securities or any similar securities or any securities
convertible into or exercisable or exchangeable for IDSs, Common Stock, Note Securities or any
similar securities or file any registration statement under the 1933 Act with respect to any of the
foregoing (collectively, the “Lock-Up Securities”) or (ii) enter into any swap or any other
agreement or any transaction that transfers, in whole or in part, directly or indirectly, the
economic consequence of ownership of the Lock-Up Securities, whether any such swap or transaction
described in clause (i) or (ii) above is to be settled by delivery of IDSs, common stock, debt
securities or any similar securities, in cash or otherwise. Anything to the contrary
notwithstanding, the foregoing restrictions shall not apply to any securities issued by the Company
during the Lock-Up Period pursuant to any employee equity participation plan referred to in the
Prospectus or securities issued by the Company during the Lock-Up Period upon the exercise of any
option, warrant or other right outstanding on the date hereof and issued under any such plan;
provided, however, that the recipient of such securities
shall provide Merrill Lynch with an agreement substantially in the form of Exhibit C hereto
signed by such recipient.

     (k) Reporting Requirements. The Company, during the period when the Prospectus is required to
be delivered under the 1933 Act, will file all documents required to be filed with the Commission
pursuant to the 1934 Act within the time periods required by the 1934 Act and the rules and
regulations of the Commission thereunder.

     (l) DTC. The Company shall cooperate with the Representative and use its commercially
reasonable efforts to permit the Securities to be eligible for clearance and settlement through the
facilities of The Depositary Trust Company.

     SECTION 4. Payment of Expenses.

     (a) Expenses. The Company will pay all expenses incident to the performance of its
obligations under this Agreement, including (i) the preparation, printing and filing of the
Registration Statement (including financial statements and exhibits) as originally filed and of
each amendment thereto, (ii) the preparation, printing and delivery to the Underwriters of this
Agreement, any Agreement among Underwriters and such other documents as may be required in
connection with the offering, purchase, sale, issuance or delivery of the Securities, (iii) the
preparation, issuance and delivery of the certificates for the Securities to the Underwriters,
including any stock or other transfer taxes and any stamp or other duties payable upon the sale,
issuance or delivery of the Securities to the Underwriters and any charges of DTC in connection
therewith, (iv) the fees and disbursements of the Company’s counsel, accountants and other
advisors, (v) the qualification of the Securities under securities laws in accordance with the
provisions of Section 3(f) hereof, including filing fees and the reasonable fees and disbursements
of counsel for the

16

 

Underwriters in connection therewith and in connection with the preparation of
the Blue Sky Survey and any supplement thereto, (vi) the printing and delivery to the Underwriters
of copies of each preliminary prospectus and of the Prospectus and any amendments or supplements
thereto, (vii) the preparation, printing and delivery to the Underwriters of copies of the Blue Sky
Survey and any supplement thereto, (viii) the fees and expenses of any transfer agent or registrar
for the Securities, (ix) the costs and expenses of the Company relating to investor presentations
on any “road show” undertaken in connection with the marketing of the Securities, including without
limitation, expenses associated with the production of road show slides and graphics, fees and
expenses of any consultants engaged with the prior consent of the Company in connection with the
road show presentations, travel and lodging expenses of the representatives and officers of the
Company and any such consultants, and the cost of aircraft and other transportation chartered in
connection with the road show, (x) the filing fees incident to, and the reasonable and documented
fees and disbursements of counsel to the Underwriters in connection with, solely to the extent
related to the review by the NASD of the terms of the sale of the Securities, (xi) the fees and
expenses incurred in connection with the listing of the Initial Securities and the Option
Securities on the American Stock Exchange, (xii) the fees and expenses of the Trustee, including
the fees and disbursements of counsel for the Trustee in connection with the Indenture and the
Securities, (xiii) any fees payable in connection with the rating of the Securities and (xiv) all
costs associated with the perfection and maintenance of the security interests to be obtained under
the Indenture and the Collateral Documents.

     (b) Termination of Agreement. If this Agreement is terminated by the Representative in
accordance with the provisions of Section 5 or Section 9(a)(i) hereof, the Company shall reimburse
the Underwriters for all of their out-of-pocket expenses, including the reasonable and documented
fees and disbursements of counsel for the Underwriters.

     SECTION 5. Conditions of Underwriters’ Obligations. The obligations of the several
Underwriters hereunder are subject to the accuracy of the representations and warranties of the
Company
contained in Section 1 hereof or in certificates of any officer of the Company or any
subsidiary of the Company delivered pursuant to the provisions hereof, to the performance by the
Company of its covenants and other obligations hereunder, and to the following further conditions:

     (a) Effectiveness of Registration Statement. The Registration Statement, including any Rule
462(b) Registration Statement, shall have become effective, and at Closing Time no stop order
suspending the effectiveness of the Registration Statement shall have been issued under the 1933
Act or proceedings therefor initiated or threatened by the Commission, and any request on the part
of the Commission for additional information shall have been complied with to the reasonable
satisfaction of counsel to the Underwriters. A prospectus containing the Rule 430A Information
shall have been filed with the Commission in accordance with Rule 424(b) (or a post-effective
amendment providing such information shall have been filed and declared effective in accordance
with the requirements of Rule 430A).

     (b) Opinion of Counsel for Company. At Closing Time, the Representative shall have received
the favorable opinion, dated as of Closing Time, of Mayer, Brown, Rowe & Maw LLP, counsel for the
Company, in form and substance reasonably satisfactory to counsel for the Underwriters, together
with signed or reproduced copies of such letter for each of the other Underwriters to the effect
set forth in Exhibit A hereto.

     (c) Opinion of Counsel for Underwriters. At Closing Time, the Representative shall have
received the favorable opinion, dated as of Closing Time, of Cahill Gordon & Reindel llp,
counsel for the Underwriters, together with signed or reproduced copies of such letter for each of
the other Underwriters with respect to matters satisfactory to the Representative, including the
penultimate paragraph of Exhibit A hereto. In giving such opinion such counsel may rely, as to all
matters governed by the laws of

17

 

jurisdictions other than the law of the State of New York, the
federal law of the United States and the General Corporation Law of the State of Delaware, upon the
opinions of counsel satisfactory to the Representative. Such counsel may also state that, insofar
as such opinion involves factual matters, they have relied, to the extent they deem proper, upon
certificates of officers of the Company and its subsidiaries and certificates of public officials.

     (d) Opinion of Tax Counsel for Company. At Closing Time, the Representative shall have
received the favorable opinion, dated as of Closing Time, of Mayer, Brown, Rowe & Maw LLP, tax
counsel for the Company, in form and substance reasonably satisfactory to counsel for the
Underwriters, together with signed or reproduced copies of such letter for each of the other
Underwriters to the effect set forth in Exhibit B hereto.

     (e) Opinion of Tax Counsel for Underwriters. At Closing Time, the Representative shall have
received the favorable opinion, dated as of Closing Time, of Cahill Gordon & Reindel llp,
tax counsel for the underwriters, in form and substance satisfactory to the Representative.

     (f) Officers’ Certificate. At Closing Time, there shall not have been, since the date hereof
or since the respective dates as of which information is given in the Prospectus, any material
adverse change in the condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Company and its subsidiaries considered as one enterprise, whether or not
arising in the ordinary course of business, and the Representative shall have received a
certificate of the President or a Vice President of the Company and of the chief financial or chief
accounting officer of the Company, dated as of Closing Time, to the effect that (i) there has been
no such material adverse change, (ii) the representations and warranties in Section 1(a) hereof are
true and correct with the same force and effect as though expressly made at and as of Closing Time,
(iii) the Company has complied with all agreements and satisfied all conditions on its part to be
performed or satisfied at or prior to Closing Time, and (iv) no stop order sus
pending the effectiveness of the Registration Statement has been issued and no proceedings for
that purpose have been instituted or are pending or, to their knowledge, contemplated by the
Commission.

     (g) Accountant’s Comfort Letter. At the time of the execution of this Agreement, the
Representative shall have received from Ernst & Young LLP a letter dated such date, in form and
substance reasonably satisfactory to the Representative, together with signed or reproduced copies
of such letter for each of the other Underwriters containing statements and information of the type
ordinarily included in accountants’ “comfort letters” to underwriters with respect to the financial
statements and certain financial information contained in the Registration Statement and the
Prospectus.

     (h) Bring-down Comfort Letter. At Closing Time, the Representative shall have received from
Ernst & Young LLP a letter, dated as of Closing Time, to the effect that they reaffirm the
statements made in the letter furnished pursuant to subsection (g) of this Section, except that the
specified date referred to shall be a date not more than three business days prior to Closing Time.

     (i) Approval of Listing. At Closing Time, the Initial Securities and Option Securities shall
have been approved for listing on the American Stock Exchange, subject only to official notice of
issuance.

     (j) No Objection. The NASD shall have confirmed that it has not raised any objection with
respect to the fairness and reasonableness of the underwriting terms and arrangements.

18

 

     (k) Lock-up Agreements. At the date of this Agreement, the Representative shall have received
an agreement substantially in the form of Exhibit C hereto signed by the persons listed on Schedule
C hereto.

     (l) Indenture. At Closing Time, the Representative shall have received the Indenture, in form
and substance reasonably satisfactory to the Representative and counsel for the Underwriters,
executed by the Company and the Trustee, and such agreement shall be in full force and effect.

     (m) Related Transaction Documents. At Closing Time, the Representative shall have received
each of the Related Transaction Documents and such related Transaction Documents shall be executed
by the Company and each of the other parties thereto shall be in full force and effect, and shall
be consistent in all material respects with any descriptions thereof in the Registration Statement
or the Prospectus.

     (n) Related Transactions. At the Closing Time, the Related Transactions shall have been
consummated on terms and conditions consistent in all material respects with the descriptions
thereof in the Registration Statement or the Prospectus.

     (o) Perfection Certificate and Security Interests. At the Closing Time, the Representative
shall have received a perfection certificate, substantially in the form of Exhibit D hereto, duly
completed and executed by the Company and Laundry Corp. In accordance with the terms of the
Collateral Documents, the Representative and the Collateral Agent shall have received each of the
following documents, which shall be in form and substance reasonably satisfactory to the
Representative, the Collateral Agent and each of their respective counsel, with respect to the
Collateral:

     (i) Lien Searches. UCC, judgment and tax lien searches confirming that the
personal property comprising part of the Collateral is subject to no liens other than those
permitted by the Indenture and the Collateral Documents.

     (ii) Intercompany Note and Intercompany Note Guarantees. The Intercompany Note
duly executed by Coinmach Corp. and the Intercompany Note Guarantees duly executed by each
of the Intercompany Note Guarantors, and such agreements shall be in full force and effect.

     (iii) Security Agreement and Pledge Agreement. The Security Agreement and
Pledge Agreement duly executed by the Company, Laundry Corp. and the Collateral Agent, and
each such agreement shall be in full force and effect.

     (iv) Financing Statements. UCC-1 financing statements naming the Company and
Laundry Corp. as debtors and the Collateral Agent as secured party.

     (p) Maintenance of Rating. At the Closing Time, the Notes shall be rated by Moody’s and/or by
S&P, and the Company shall have delivered to the Representative a letter from such rating agency
(or other evidence satisfactory to the Representative) confirming that the Notes have ratings; and
since the date of this Agreement, there shall not have occurred a downgrading in the rating
assigned to the Notes or any of the Company’s other debt securities by any “nationally recognized
statistical rating agency,” as that term is defined by the Commission for purposes of Rule
436(g)(2) under the 1933 Act, and no such securities rating agency shall have publicly announced
that it has under surveillance or review, with possible negative implications, its rating of the
Notes or any of the Company’s other debt securities.

     (q) DTC. The Securities shall be eligible for clearance and settlement through DTC.

19

 

     (r) Preferred Stock. At the Closing Time, Laundry Corp. shall have redeemed all of its
outstanding Class A Preferred Stock.

     (s) Credit Facility. At the Closing Time, the amendment to the Credit Facility described
under “Description of Certain Indebtedness” in the Prospectus shall have become effective on terms
and conditions satisfactory to the Representative.

     (t) Coinmach Corp.’s 9% Senior Notes. At the Closing Time, Coinmach Corp. shall have
delivered an irrevocable notice of redemption to the trustee under the indenture dated January 25,
2002 governing Coinmach Corp.’s 9% Senior Notes due 2010 (the “Existing Notes”) pursuant to
which Coinmach Corp. shall redeem Existing Notes in an aggregate principal amount of not less than
$125.5 million.

     (u) Purchase by GTCR-CLC, LLC and its Affiliates. GTCR-CLC, LLC and/or one of its affiliates
shall have purchased 2,199,413 of the Initial Securities from the Underwriters at a purchase price
of $13.64 per Initial Security.

     (v) Conditions to Purchase of Option Securities. In the event that the Underwriters exercise
their option provided in Section 2(b) hereof to purchase all or any portion of the Option
Securities, the representations and warranties of the Company contained herein and the statements
in any certificates furnished by the Company or any subsidiary of the Company hereunder shall be
true and correct as of each Date of Delivery and, at the relevant Date of Delivery, the
Representative shall have received:

     (i) Officers’ Certificate. A certificate, dated such Date of Delivery, of the
President or a Vice President of the Company and of the chief financial or chief accounting
officer of the Company confirming that the certificate delivered at the Closing Time
pursuant to Section 5(f) hereof remains true and correct as of such Date of Delivery.

     (ii) Opinion of Counsel for Company. The favorable opinion of Mayer, Brown,
Rowe & Maw LLP, counsel for the Company, in form and substance reasonably satisfactory to
counsel for the Underwriters, dated such Date of Delivery, relating to the Option
Securities to be purchased on such Date of Delivery and otherwise to the same effect as the
opinion required by Section 5(b) hereof.

     (iii) Opinion of Counsel for Underwriters. The favorable opinion of Cahill
Gordon & Reindel llp, counsel for the Underwriters, dated such Date of Delivery,
relating to the Option Securities to be purchased on such Date of Delivery and otherwise to
the same effect as the opinion required by Section 5(c) hereof.

     (iv) Opinion of Tax Counsel for Company. The favorable opinion of Mayer,
Brown, Rowe & Maw LLP, tax counsel for the Company, in form and substance reasonably
satisfactory to counsel for the Underwriters, dated such Date of Delivery, relating to the
Option Securities to be purchased on such Date of Delivery and otherwise to the same effect
as the opinion required by Section 5(d) hereof.

     (v) Opinion of Tax Counsel for Underwriters. The favorable opinion of Cahill
Gordon & Reindel llp, tax counsel for the Underwriters, dated such Date of
Delivery, relating to the Option Securities to be purchased on such Date of Delivery and
otherwise to the same effect as the opinion required by Section 5(e) hereof.

20

 

     (vi) Bring-down Comfort Letter. A letter from Ernst & Young LLP, in form and
substance satisfactory to the Representative and dated such Date of Delivery, substantially
in the same form and substance as the letter furnished to the Representative pursuant to
Section 5(h) hereof, except that the “specified date” in the letter furnished pursuant to
this paragraph shall be a date not more than five days prior to such Date of Delivery.

     (w) Additional Documents. At Closing Time and at each Date of Delivery, counsel for the
Underwriters shall have been furnished with such documents and opinions as they may reasonably
require for the purpose of enabling them to pass upon the issuance and sale of the Securities as
herein contemplated, or in order to evidence the accuracy of any of the representations or
warranties, or the fulfillment of any of the conditions, herein contained; and all proceedings
taken by the Company in connection with the issuance and sale of the Securities as herein
contemplated shall be reasonably satisfactory in form and substance to the Representative and
counsel for the Underwriters.

     (x) Termination of Agreement. If any condition specified in this Section shall not have been
fulfilled when and as required to be fulfilled, this Agreement, or, in the case of any condition to
the purchase of Option Securities, on a Date of Delivery which is after the Closing Time, the
obligations of the several Underwriters to purchase the relevant Option Securities, may be
terminated by the Representative by notice to the Company at any time at or prior to Closing Time
or such Date of Delivery, as the case may be, and such termination shall be without liability of
any party to any other party except as provided in Section 4 and except that Sections 1, 6, 7 and 8
shall survive any such termination and remain in full force and effect.

     SECTION 6. Indemnification.

     (a) Indemnification of Underwriters. Each of the Company and Laundry Corp. agrees to
indemnify and hold harmless each Underwriter, its affiliates, as such term is defined in Rule
501(b) under the 1933 Act (each, an “Affiliate”), its selling agents and each person, if
any, who controls any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act as follows:

     (i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement (or any amendment thereto), including the Rule 430A
Information or the omission or alleged omission therefrom of a material fact required to be
stated therein or necessary to make the statements therein not misleading or arising out of
any untrue statement or alleged untrue statement of a material fact included in any
preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the
omission or alleged omission therefrom of a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading;

     (ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to Section 6(d) below) any such
settlement is effected with the written consent of the Company;

     (iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel chosen by Merrill Lynch), reasonably incurred in investigating,
preparing or defending against any litigation, or any investigation or proceeding by any
governmental

21

 

agency or body, commenced or threatened, or any claim whatsoever based upon any
such untrue statement or omission, or any such alleged untrue statement or omission, to the
extent that any such expense is not paid under (i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to the Company by any Underwriter through Merrill Lynch expressly for use in
the Registration Statement (or any amendment thereto), including the Rule 430A Information or any
preliminary prospectus or the Prospectus (or any amendment or supplement thereto);
provided, further, that the foregoing indemnity agreement with respect to any
preliminary prospectuses shall not inure to the benefit of any Underwriter, it Affiliates, its
selling agents and each person, if any, who controls any Underwriter within the meaning of Section
15 of the 1933 Act or Section 20 of the 1934 Act, from whom the person asserting any such loss,
liability, claim, damage or expense purchased Securities, or any person controlling such
Underwriter, if it shall be established that a copy of the Prospectus (as then amended or
supplemented if the Company shall have furnished any amendments or supplements thereto) was not
sent or given by or on behalf of such Underwriter to such person, if required by law so to have
been delivered, at or prior to the written confirmation of the sale of the Securities to such
person, and if the Prospectus (as so amended or supplemented) would have cured the defect giving
rise to such loss, liability, claim damage or expense and if the Company had previously furnished
copies thereof to such Underwriter in the quantities reasonably requested by such Underwriter.
This indemnity agreement will be in addition to any liability which the Company may otherwise have.

     (b) Indemnification of Company, Directors and Officers. Each Underwriter severally agrees to
indemnify and hold harmless each of the Company and Laundry Corp., its respective directors, each
of its officers who signed the Registration Statement, and each person, if any, who controls the
Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any
and all loss, liability, claim, damage and expense described in the indemnity contained in
subsection (a) of this Section, as incurred, but only with respect to untrue statements or
omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any
amendment thereto), including the Rule 430A In
formation or any preliminary prospectus or the Prospectus (or any amendment or supplement
thereto) in reliance upon and in conformity with written information furnished to the Company by
such Underwriter through Merrill Lynch expressly for use in the Registration Statement (or any
amendment thereto) or such preliminary prospectus or the Prospectus (or any amendment or supplement
thereto).

     (c) Actions Against Parties; Notification. Each indemnified party shall give notice as
promptly as reasonably practicable to each indemnifying party of any action commenced against it in
respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party
shall not relieve such indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it from any liability
which it may have otherwise than on account of this indemnity agreement. In the case of parties
indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by
Merrill Lynch, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to
the indemnified parties shall be selected by the Company. An indemnifying party may participate at
its own expense in the defense of any such action; provided, however, that counsel
to the indemnifying party shall not (except with the consent of the indemnified party) also be
counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees
and expenses of more than one counsel (in addition to any local counsel) separate from their own
counsel for all indemnified parties in connection with any one action or separate but similar or
related actions in the same jurisdiction arising out of the same general allegations or
circumstances. No indemnifying party shall, without the prior written consent of the indemnified
parties, settle or compro-

22

 

mise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever in respect of which indemnification or contribution could be
sought under this Section 6 or Section 7 hereof (whether or not the indemnified parties are actual
or potential parties thereto), unless such settlement, compromise or consent (i) includes an
unconditional release of each indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii) does not include a statement as to or an admission of
fault, culpability or a failure to act by or on behalf of any indemnified party.

     (d) Settlement Without Consent if Failure to Reimburse. If at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses
of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature
contemplated by Section 6(a) effected without its written consent if (i) such settlement is entered
into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement at least 30 days
prior to such settlement being entered into and (iii) such indemnifying party shall not have
reimbursed such indemnified party in accordance with such request prior to the date of such
settlement.

     SECTION 7. Contribution. If the indemnification provided for in Section 6 hereof is
for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of
any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying
party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and
expenses incurred by such indemnified party, as incurred, (i) in such proportion as is appropriate
to reflect the relative benefits received by the Company and Laundry Corp. on the one hand and the
Underwriters on the other hand from the offering of the Securities pursuant to this Agreement or
(ii) if the allocation provided by clause (i) is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Company and Laundry Corp. on the one hand and of the
Underwriters on the other hand in connection with the statements or omissions which resulted in
such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable
considerations.

     The relative benefits received by the Company and Laundry Corp. on the one hand and the
Underwriters on the other hand in connection with the offering of the Securities pursuant to this
Agreement shall be deemed to be in the same respective proportions as the total net proceeds from
the offering of the Securities pursuant to this Agreement (before deducting expenses) received by
the Company and Laundry Corp. and the total underwriting discount received by the Underwriters, in
each case as set forth on the cover of the Prospectus, bear to the aggregate initial public
offering price of the Securities as set forth on the cover of the Prospectus.

     The relative fault of the Company and Laundry Corp. on the one hand and the Underwriters on
the other hand shall be determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Company and Laundry Corp. or by the Underwriters and
the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

     The Company, Laundry Corp. and the Underwriters agree that it would not be just and equitable
if contribution pursuant to this Section were determined by pro rata allocation (even if the
Underwriters were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to above in this Section. The
aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified

23

 

party and referred to above in this Section shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or
omission or alleged omission.

     Notwithstanding the provisions of this Section, no Underwriter shall be required to contribute
any amount in excess of the amount by which the total price at which the Securities underwritten by
it and distributed to the public were offered to the public exceeds the amount of any damages which
such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue
statement or omission or alleged omission.

     No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.

     For purposes of this Section, each person, if any, who controls an Underwriter within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s
Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and
each director of the Company and Laundry Corp., each officer of the Company and Laundry Corp. who
signed the Registration Statement, and each person, if any, who controls the Company within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to
contribution as the Company and Laundry Corp. The Underwriters’ respective obligations to
contribute pursuant to this Section are several in proportion to the number of Initial Securities
set forth opposite their respective names in Schedule A hereto and not joint.

     SECTION 8. Representations, Warranties and Agreements to Survive. All
representations, warranties and agreements contained in this Agreement or in certificates of
officers of the Company or any of its subsidiaries submitted pursuant hereto, shall remain
operative and in full force and effect regardless of (i) any investigation made by or on behalf of
any Underwriter or its Affiliates or selling agents, any person controlling any Underwriter, its
officers or directors or any person controlling the Company and (ii) delivery of and payment for
the Securities.

     SECTION 9. Termination of Agreement.

     (a) Termination; General. The Representative may terminate this Agreement, by notice to the
Company, at any time at or prior to Closing Time (i) if there has been, since the time of execution
of this Agreement or since the respective dates as of which information is given in the Prospectus,
any material adverse change in the condition, financial or otherwise, or in the earnings, business
affairs or business prospects of the Company and its subsidiaries considered as one enterprise,
whether or not arising in the ordinary course of business, or (ii) if there has occurred any
material adverse change in the financial markets in the United States or the international
financial markets, any outbreak of hostilities or escalation thereof or other calamity or crisis or
any change or development involving a prospective change in national or international political,
financial or economic conditions, in each case the effect of which is such as to make it, in the
judgment of the Representative, impracticable or inadvisable to market the Securities or to enforce
contracts for the sale of the Securities, or (iii) if trading in any securities of the Company has
been suspended or materially limited by the Commission, the NASD or the American Stock Exchange, or
if trading generally on the American Stock Exchange or the New York Stock Exchange or in the Nasdaq
National Market has been suspended or materially limited, or minimum or maximum prices for trading
have been fixed, or maximum ranges for prices have been required, by any of said exchanges or by
such system or by order of the Commission, the National Association of Securities Dealers, Inc. or
any other governmental authority, or (iv) a material disruption has occurred in commercial banking
or securities

24

 

settlement or clearance services in the United States, or (v) if a banking moratorium
has been declared by either Federal or New York authorities.

     (b) Liabilities. If this Agreement is terminated pursuant to this Section, such termination
shall be without liability of any party to any other party except as provided in Section 4 hereof,
and provided further that Sections 1, 6, 7 and 8 shall survive such termination and remain in full
force and effect.

     SECTION 10. Default by One or More of the Underwriters. If one or more of the
Underwriters shall fail at Closing Time or a Date of Delivery to purchase the Securities which it
or they are obligated to purchase under this Agreement (the “Defaulted Securities”), the
Representative shall have the right, within 24 hours thereafter, to make arrangements for one or
more of the non-defaulting Underwriters, or any other underwriters, to purchase all, but not less
than all, of the Defaulted Securities in such amounts as may be agreed upon and upon the terms
herein set forth; if, however, the Representative shall not have completed such arrangements within
such 24-hour period, then:

     (i) if the number of Defaulted Securities does not exceed 10% of the number of
Securities to be purchased on such date, each of the non-defaulting Underwriters shall be
obligated, severally and not jointly, to purchase the full amount thereof in the proportions
that their respective underwriting obligations hereunder bear to the underwriting
obligations of all non-defaulting Underwriters, or

     (ii) if the number of Defaulted Securities exceeds 10% of the number of Securities to
be purchased on such date, this Agreement or, with respect to any Date of Delivery which
occurs after the Closing Time, the obligation of the Underwriters to purchase and of the
Company to sell the Option Securities to be purchased and sold on such Date of Delivery
shall terminate without liability on the part of any non-defaulting Underwriter.

     No action taken pursuant to this Section shall relieve any defaulting Underwriter from
liability in respect of its default.

     In the event of any such default which does not result in a termination of this Agreement or,
in the case of a Date of Delivery which is after the Closing Time, which does not result in a
termination of the
obligation of the Underwriters to purchase and the Company to sell the relevant Option
Securities, as the case may be, either the Representative or the Company shall have the right to
postpone Closing Time or the relevant Date of Delivery, as the case may be, for a period not
exceeding seven days in order to effect any required changes in the Registration Statement or
Prospectus or in any other documents or arrangements. As used herein, the term “Underwriter”
includes any person substituted for an Underwriter under this Section 10.

     SECTION 11. Tax Disclosure. Notwithstanding any other provision of this Agreement,
from the commencement of discussions with respect to the transactions contemplated hereby, the
Company (and each employee, representative or other agent of the Company) may disclose to any and
all persons, without limitation of any kind, the tax treatment and tax structure (as such terms are
used in Sections 6011, 6111 and 6112 of the U.S. Code and the Treasury Regulations promulgated
thereunder) of the transactions contemplated by this Agreement and all materials of any kind
(including opinions or other tax analyses) that are provided relating to such tax treatment and tax
structure.

     SECTION 12. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by any standard form
of telecommunication. Notices to the Underwriters shall be directed to the Representative at 4
World Financial Cen-

25

 

ter, New York, New York 10080, attention of Equity Capital Markets, with a copy
to Cahill Gordon & Reindel llp, 80 Pine Street, New York, New York 10005, attention of
William M. Hartnett, Esq.; and notices to the Company shall be directed to it at 303 Sunnyside
Blvd., Suite 70, Plainview, New York 11803, attention of Robert M. Doyle, with a copy to Mayer,
Brown, Rowe & Maw LLP, 1675 Broadway, New York, New York 10019, attention of Ronald S. Brody, Esq.

     SECTION 13. Parties. This Agreement shall each inure to the benefit of and be binding
upon the Underwriters and the Company and their respective successors. Nothing expressed or
mentioned in this Agreement is intended or shall be construed to give any person, firm or
corporation, other than the Underwriters and the Company and their respective successors and the
controlling persons and officers and directors referred to in Sections 6 and 7 and their heirs and
legal representatives, any legal or equitable right, remedy or claim under or in respect of this
Agreement or any provision herein contained. This Agreement and all conditions and provisions
hereof are intended to be for the sole and exclusive benefit of the Underwriters and the Company
and their respective successors, and said controlling persons and officers and directors and their
heirs and legal representatives, and for the benefit of no other person, firm or corporation. No
purchaser of Securities from any Underwriter shall be deemed to be a successor by reason merely of
such purchase.

     SECTION 14. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     SECTION 15. TIME. TIME SHALL BE OF THE ESSENCE OF THIS AGREEMENT. EXCEPT AS OTHERWISE
SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.

     SECTION 16. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such counterparts shall
together constitute one and the same Agreement.

     SECTION 17. Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.

26

 

     If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Company a counterpart hereof, whereupon this instrument, along with all counterparts,
will become a binding agreement between the Underwriters and the Company and Laundry Corp. in
accordance with its terms.

	 	 	 	 	 
	 	Very truly yours,

COINMACH SERVICE CORP.

 	 
	 	By:  	/s/ Robert M. Doyle 
	 
	 	 	Name:  	Robert M. Doyle 	 
	 	 	Title:  Chief Financial Officer	 
	 

	 	 	 	 	 
	 	COINMACH LAUNDRY CORPORATION

 	 
	 	By:  	/s/ Robert M. Doyle
	 
	 	 	Name:  	Robert M. Doyle 	 
	 	 	Title:  Chief Financial Officer	 
	 

CONFIRMED AND ACCEPTED,

as of the date first above written:

MERRILL LYNCH & CO.

MERRILL LYNCH, PIERCE, FENNER & SMITH
     
INCORPORATED

	 	 	 	 	 
	By:

	 	Illegible	 	 
	

	 	

Authorized Signatory
	 	 

For itself and as Representative of the other Underwriters named in Schedule A hereto.

S-1

 

SCHEDULE A

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal	 
	 	 	 	 	 	 	Amount of	 
	 	 	Number of	 	 	Third Party	 
	Name of Underwriter	 	IDSs	 	 	Notes	 
	Merrill Lynch, Pierce, Fenner & Smith
Incorporated
	 	 	8,070,000	 	 	 	9,000,005.86	 
	Citigroup Global Markets Inc.
	 	 	4,304,000	 	 	 	4,800,000.26	 
	Jefferies & Company, Inc.
	 	 	1,434,668	 	 	 	1,599,998.04	 
	Deutsche Bank Securities Inc.
	 	 	1,434,667	 	 	 	1,599,998.04	 
	RBC Capital Markets Corporation
	 	 	1,344,999	 	 	 	1,500,002.00	 
	Suntrust Capital Markets, Inc.
	 	 	1,344,999	 	 	 	1,499,995.86	 
	Robert W. Baird & Co. Incorporated
	 	 	100,000	 	 	 	—	 
	Doft & Co., Inc.
	 	 	100,000	 	 	 	—	 
	Oppenheimer & Co. Inc.
	 	 	100,000	 	 	 	—	 
	The Williams Capital Group, L.P.
	 	 	100,000	 	 	 	—	 
	Total
	 	 	18,333,333	 	 	$	20,000,000.06	 
	 
	 	 	 	 	 	 

 

 

SCHEDULE B

COINMACH SERVICES CORP.

18,333,333 Income Deposit Securities

(Representing one share of Class A Common Stock,

par value $0.01 per share, and $6.14 principal amount of 11%

Senior Secured Notes due 2024)

and

$20,000,000.06 aggregate principal amount of 11%

Senior Secured Notes due 2024

     1. The initial public offering price per IDS, determined as provided in Section 2,
shall be $13.64.

     2. The purchase price per Initial Security to be paid by the several Underwriters shall
be $12.9198, being an amount equal to the initial public offering price set forth above less
$0.7202 per IDS. The purchase price per Option Security to be paid by the several
Underwriters shall be $12.8216, being an amount equal to the initial public offering price
set forth above less $0.8184 per IDS; provided that the purchase price per IDS for
any Option Securities purchased upon the exercise of the over-allotment option described in
Section 2(b) shall be increased by an amount per Option Security equal to accrued and unpaid
interest with respect to the underlying IDS Note.

     3. The initial public offering price of the Third Party Notes shall be 100% of the
principal amount thereof, plus accrued interest, if any from the date of issuance.

     4. The purchase price per Third Party Note to be paid by the several Underwriters shall
be 97% of the principal amount thereof.

     5. The interest rate on the Third Party Notes shall be 11% per annum.

 

 

SCHEDULE C

List of persons and entities

subject to lock-up agreements

Coinmach Holdings, LLC

Executive officers and directors of the Company

GTCR-CLC, LLC

 

 

SCHEDULE D

List of Related Transaction Documents

	(1)  	The Security Agreement, the Pledge Agreement and related Financing Statements and Perfection
Certificate;
	 
	(2)  	The Intercreditor Agreement;
	 
	(3)  	The Amendment to the Credit Facility;
	 
	(4)  	The redemption notices relating to the Coinmach Corp. 9% Notes;
	 
	(5)  	The Redemption Agreement among Holdings’ members; and
	 
	(6)  	The Purchase Agreement relating to the Company’s Class B Common Stock.

 

 

EXHIBIT A

FORM OF OPINION OF COMPANY’S COUNSEL

TO BE DELIVERED PURSUANT TO

SECTION 5(b)

     (i) The Company has been duly incorporated and is validly existing as a corporation in
good standing under the laws of the State of Delaware.

     (ii) The Company has corporate power and authority to own, lease and operate its
properties and to conduct its business as described in the Prospectus and to enter into and
perform its obligations under the Purchase Agreement.

     (iii) The Company is duly qualified as a foreign corporation to transact business and
is in good standing in each jurisdiction in which such qualification is required, whether by
reason of the ownership or leasing of property or the conduct of business, except where the
failure so to qualify or to be in good standing would not reasonably be expected to result
in a Material Adverse Effect.

     (iv) The authorized, issued and outstanding capital stock of the Company is as set
forth in the Prospectus in the column entitled “Actual” under the caption “Capitalization”
(except for subsequent issuances, if any, pursuant to the Purchase Agreement or pursuant to
reservations, agreements or employee benefit plans referred to in the Prospectus or pursuant
to the exercise of convertible securities or options referred to in the Prospectus); the
shares of issued and outstanding capital stock (including, without limitation, the Common
Stock) of the Company have been duly authorized and validly issued and are fully paid and
non-assessable; and none of the outstanding shares of capital stock (including, without
limitation, the Common Stock) of the Company was issued in violation of the preemptive or
other similar rights of any securityholder of the Company.

     (v) The shares of Common Stock underlying the IDSs have been duly authorized for
issuance and sale to the Underwriters pursuant to the Purchase Agreement and, when issued
and delivered by the Company pursuant to the Purchase Agreement against payment of the
consideration set forth in the Purchase Agreement, will be validly issued and fully paid and
non-assessable and no holder of the IDSs is or will be subject to personal liability by
reason of being such a holder.

     (vi) Neither the issuance of the Common Stock nor the IDSs is subject to preemptive or
other similar rights of any securityholder of the Company.

     (vii) The IDSs have been duly authorized for issuance and sale to the Underwriters
pursuant to the Purchase Agreement and, when issued and delivered by the Company pursuant to
the Purchase Agreement against payment of the consideration set forth in the Purchase
Agreement, will constitute valid and legally binding obligations of the Company enforceable
against the Company in accordance with their terms, except as the enforcement thereof may be
limited by bankruptcy, insolvency (including, without limitation, all laws relating to
fraudulent transfers), reorganization, moratorium or similar laws affecting enforcement of
creditors’ rights generally and except as enforcement thereof is subject to general
principles of equity (regardless of whether enforcement is considered in a proceeding in
equity or at law).

A-1

 

     (viii) The Indenture has been duly authorized by the Company and Laundry Corp. and
meets the standards and requirements for qualification under the 1939 Act, and the rules and
regulations of the Commission applicable to an indenture that is qualified thereunder, and,
when executed and delivered by the Company, Laundry Corp. and the Trustee, will constitute a
valid and binding agreement of the Company and Laundry Corp., enforceable against the
Company and Laundry Corp. in accordance with its terms, except as the enforcement thereof
may be limited by bankruptcy, insolvency (including, without limitation, all laws relating
to fraudulent transfers), reorganization, moratorium or similar laws affecting enforcement
of creditors’ rights generally and except as enforcement thereof is subject to general
principles of equity (regardless of whether enforcement is considered in a proceeding in
equity or at law).

     (ix) The Note Securities have been duly authorized and, at the Closing Time, will have
been duly executed by the Company and Laundry Corp., as applicable, and, when duly
authenticated, issued and delivered in the manner provided for in the Indenture and
delivered against payment of the purchase price therefor as provided in this Agreement, will
constitute valid and binding obligations of the Company and Laundry Corp., as applicable,
enforceable against the Company and Laundry Corp., as applicable, in accordance with their
terms, except as the enforcement thereof may be limited by bankruptcy, insolvency
(including, without limitation, all laws relating to fraudulent transfers) reorganization,
moratorium or similar laws affecting enforcement of creditors’ rights generally and except
as enforcement thereof is subject to general principles of equity (regardless of whether
enforcement is considered in a proceeding in equity or at law), and will be in the form
contemplated by, and entitled to the benefits of, the Indenture.

     (x) The Intercompany Note has been duly authorized, executed, issued and delivered by
Coinmach Corp. and constitutes a valid and binding obligation of Coinmach Corp., enforceable
against Coinmach Corp. in accordance with its terms, except as the enforcement thereof may
be limited by bankruptcy, insolvency (including, without limitation, all laws relating to
fraudulent transfers) reorganization, moratorium or similar laws affecting enforcement of
creditors’ rights generally and except as enforcement thereof is subject to general
principles of equity (regardless of whether enforcement is considered in a proceeding in
equity or at law).

     (xi) The Intercompany Note Guarantees have been duly authorized, executed, issued and
delivered by the Intercompany Note Guarantors and constitute valid and binding obligations
of the Intercompany Note Guarantors, enforceable against the Intercompany Note Guarantors in
accordance with their terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency (including, without limitation, all laws relating to fraudulent transfers)
reorganization, moratorium or similar laws affecting enforcement of creditors’ rights
generally and except as enforcement thereof is subject to general principles of equity
(regardless of whether enforcement is considered in a proceeding in equity or at law).

     (xii) The Related Transaction Documents have been duly authorized by the Company, and,
when executed and delivered by the Company and the other parties thereto, will constitute
valid and binding agreements of the Company, enforceable against the Company in accordance
with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency
(including, without limitation, all laws relating to fraudulent transfers), reorganization,
moratorium or similar laws affecting enforcement of creditors’ rights generally and except
as enforcement thereof is subject to general principles of equity (regardless of whether
enforcement is considered in a proceeding in equity or at law).

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     (xiii) Each of the Collateral Documents creates in favor of the Collateral Agent a
security interest in the right, title and interest of the Company in and to the portion (the
“Article 9 Collateral”) of the Collateral (as defined in the Security Agreement) in
which a security interest may be created under Article 9 of the Uniform Commercial Code as
currently in effect in the State of New York (the “New York UCC”), as collateral
security for the payment of the obligations under the Indenture, except as the enforcement
thereof may be limited by bankruptcy, insolvency (including, without limitation, all laws
relating to fraudulent transfers), reorganization, moratorium or similar laws affecting
enforcement of creditors’ rights generally and except as enforcement thereof is subject to
general principles of equity (regardless of whether enforcement is considered in a
proceeding in equity or at law).

     (xiv) The security interests referred to in paragraph (xiii) above in that portion of
such Article 9 Collateral (other than fixtures) in which a security interest is perfected by
filing a Financing Statement under the Uniform Commercial Code as currently in effect in the
State of Delaware (the “Delaware UCC”) will be perfected by the filing of an
applicable Financing Statement in the Office of the Secretary of State of the State of
Delaware pursuant to the provisions of the Delaware UCC.

     (xv) Assuming that the certificates representing 100% of the capital stock of Coinmach
Corp. (the “Pledged Stock”) that constitute Collateral under the Collateral
Documents have been delivered to the Agent in the State of New York with appropriate
instruments of transfer duly endorsed in blank by an effective endorsement, and assuming
that the Agent has duly acknowledged, pursuant to Section 8-301(a)(2) of the New York UCC
with respect to any Pledged Stock that are “certificated securities” (as such term is
defined in Section 8-102(a)(4) of the New York UCC), that it will hold possession of such
Pledged Stock for the benefit of the Collateral Agent and on behalf of itself, the Trustee
and the holders of Notes, and assuming the continued possession and control by the Agent of
such Pledged Stock in the State of New York, the security interest in such Pledged Stock in
favor of the Collateral Agent for the benefit of the holders of the Notes will be perfected.

     (xvi) Upon delivery to the Collateral Agent in the State of New York of the
Intercompany Note, indorsed in favor of the Collateral Agent by an effective endorsement,
and assuming the continued possession and control by the Collateral Agent of the
Intercompany Note and the Intercompany Note Guarantees in the State of New York and that
none of the Collateral Agent, the Trustee and the holders of the Notices has notice of any
adverse claim thereto, the Collateral Agent will have a perfected first priority security
interest in such Intercompany Note for the benefit of itself, the Trustee and the holders of
Notes under the New York UCC.

     (xvii) Each Subsidiary is validly existing as a corporation in good standing under the
laws of the jurisdiction of its incorporation, has corporate power and authority to own,
lease and operate its properties and to conduct its business as described in the Prospectus
and is duly qualified as a foreign corporation to transact business and is in good standing
in each jurisdiction in which such qualification is required, whether by reason of the
ownership or leasing of property or the conduct of business, except where the failure so to
qualify or to be in good standing would not reasonably be expected to result in a Material
Adverse Effect; except as otherwise disclosed in the Registration Statement, all of the
issued and outstanding capital stock of AWA and Laundry Corp. and, to our knowledge, each
other Subsidiary has been duly authorized and validly issued, is fully paid and
non-assessable and, to our knowledge, is owned by the Company, directly or through
subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance,
claim or equity other than those permitted by the Indenture and the Collateral Documents;

A-3

 

none of the outstanding shares of capital stock of any Subsidiary was issued in
violation of the preemptive or similar rights of any securityholder of such Subsidiary.

     (xviii) The Purchase Agreement has been duly authorized, executed and delivered by the
Company and Laundry Corp.

     (xix) The Registration Statement, including any Rule 462(b) Registration Statement, has
been declared effective under the 1933 Act; any required filing of the Prospectus pursuant
to Rule 424(b) has been made in the manner and within the time period required by Rule
424(b); and, to our knowledge, no stop order suspending the effectiveness of the
Registration Statement or any Rule 462(b) Registration Statement has been issued under the
1933 Act and no proceedings for that purpose have been instituted or are pending or
threatened by the Commission.

     (xx) The Registration Statement, including any Rule 462(b) Registration Statement and
the Rule 430A Information, the Prospectus and each amendment or supplement to the
Registration Statement and Prospectus as of their respective effective or issue dates (other
than the financial statements and supporting schedules included therein or omitted
therefrom, as to which we express no opinion) complied as to form in all material respects
with the requirements of the 1933 Act and the 1933 Act Regulations.

     (xxi) The forms of certificates used to evidence the Common Stock, the Note Securities
and the IDSs comply in all material respects with all applicable statutory requirements,
with any applicable requirements of the charter and by-laws of the Company and the
requirements of the American Stock Exchange.

     (xxii) To our knowledge, there is not pending or threatened any action, suit,
proceeding, inquiry or investigation, to which the Company or any subsidiary of the Company
is a party, or to which the property of the Company or any subsidiary of the Company is
subject, before or brought by any court or governmental agency or body, domestic or foreign,
which is required to be disclosed in the Registration Statement pursuant to Regulation S-K
under the 1933 Act, or which would reasonably be expected to restrain, enjoin, challenge or
prevent the consummation of the transactions contemplated in the Purchase Agreement and the
Related Transaction Documents or the performance by the Company and Laundry Corp. of their
obligations thereunder.

     (xxiii) The information in the Prospectus under “The Transactions,” “Description of
IDSs,” “Description of the Notes,” “Description of Capital Stock,” “Business—Properties,”
“Business—Legal Proceedings,” “Material United States Federal Income Tax Consequences” and
in the Registration Statement under Item 14, to the extent that it constitutes matters of
law, summaries of legal matters, the Company’s charter and bylaws or legal proceedings, or
legal conclusions, has been reviewed by us and is correct in all material respects and the
opinion of such firm set forth under “Material United States Federal Income Tax
Consequences” is confirmed.

     (xxiv) All descriptions in the Registration Statement of contracts and other documents
to which the Company or its subsidiaries are a party are accurate in all material respects;
there are no franchises, contracts, indentures, mortgages, loan agreements, notes, leases or
other instruments of which we are aware that are required to be described or referred to in
the Registration Statement or to be filed as exhibits to the Registration Statement other
than those described or referred to therein or filed as exhibits thereto.

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     (xxv) No filing with, or authorization, approval, consent, license, order,
registration, qualification or decree of, any court or governmental authority or agency,
domestic or foreign (other than under the 1933 Act and the 1933 Act Regulations, which have
been obtained, or as may be required under the securities or blue sky laws of the various
states, as to which we express no opinion) is necessary or required in connection with the
due authorization, execution and delivery of the Purchase Agreement, the Indenture, the
Intercompany Note Obligations or the Related Transaction Documents or for the offering,
issuance, sale or delivery of the Securities.

     (xxvi) The execution, delivery and performance of the Purchase Agreement, the
Indenture, the Intercompany Note Obligations and Related Transaction Documents and the
consummation of the transactions contemplated in such agreements and in the Registration
Statement (including the issuance and sale of the Securities and the use of the proceeds
from the sale of the Securities as described in the Prospectus under the caption “Use Of
Proceeds”) and compliance by the Company and Laundry Corp. with their obligations under the
Purchase Agreement, the Indenture, the Intercompany Note Obligations and Related Transaction
Documents do not and will not, whether with or without the giving of notice or lapse of time
or both, conflict with or constitute a breach of, or default or Repayment Event under or
result in the creation or imposition of any lien, charge or encumbrance upon any property or
assets of the Company or any subsidiary of the Company pursuant to any contract, indenture,
mortgage, deed of trust, loan or credit agreement, note, lease or any other agreement or
instrument included as Exhibit Numbers 4.7 and 10.1 through 10.41 on the exhibit list to the
Registration Statement (except for such conflicts, breaches, defaults or Repayment Events or
liens, charges or encumbrances that would not reasonably be expected to have a Material
Adverse Effect or for such liens created under the Security Agreement), nor will such action
result in any violation of (A) the provisions of the charter or by-laws of the Company or
any subsidiary of the Company, or (B) any applicable law, statute, rule, regulation,
judgment, order, writ or decree, known to us, of any government, government instrumentality
or court, domestic or foreign, having jurisdiction over the Company or any subsidiary of the
Company or any of their respective properties, assets or operations, except in the case of
this clause (B), any violation that would not reasonably be expected to result in a Material
Adverse Effect.

     (xxvii) To our knowledge, and except as described in the Registration Statement or the
Prospectus, there are no persons with registration rights or other similar rights to have
any securities registered pursuant to the Registration Statement or otherwise registered by
the Company under the 1933 Act.

     (xxviii) The Company is not required, and upon the issuance and sale of the Securities
as herein contemplated and the application of the net proceeds therefrom as described in the
Prospectus will not be required, to register as an “investment company” under the 1940 Act.

     Although we have not independently verified and are not passing upon and assume no
responsibility for the accuracy, completeness or fairness of the statements (except to the
extent referred to paragraph (xxiii) above) contained in the Registration Statement or any
amendment or supplement thereto, including the Rule 430A Information, or the Prospectus or
any amendment or supplement thereto, no fact has come to our attention that would lead us to
believe that the Registration Statement or any amendment thereto, including the Rule 430A
Information, (except for financial statements and schedules and other financial data
included therein or omitted therefrom, as to which we express no opinion and make no
statement), at the time such Registration Statement or any such amendment became effective,
contained an untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements

A-5

 

therein not misleading or that the Prospectus or any amendment or supplement thereto
(except for financial statements and schedules and other financial data included therein or
omitted therefrom, as to which we express no opinion and make no statement), at the time the
Prospectus was issued, at the time any such amended or supplemented prospectus was issued or
at the Closing Time, included or includes an untrue statement of a material fact or omitted
or omits to state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.

     In rendering such opinion, such counsel may rely, as to matters of fact (but not as to
legal conclusions), to the extent they deem proper, on certificates of responsible officers
of the Company and public officials and such counsel need not opine as to matters governed
by the laws of jurisdictions other than the law of the State of New York, the federal law of
the United States, the UCC of the State of Delaware and the General Corporation Law of the
State of Delaware. Such opinion shall not state that it is to be governed or qualified by,
or that it is otherwise subject to, any treatise, written policy or other document relating
to legal opinions, including, without limitation, the Legal Opinion Accord of the ABA
Section of Business Law (1991).

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EXHIBIT B

FORM OF OPINION OF COMPANY’S COUNSEL

TO BE DELIVERED PURSUANT TO SECTION 5(d)

Exhibit 8.1 to the Registration Statement is incorporated by reference herein.

B-1

 

EXHIBIT C

FORM OF LOCK-UP AGREEMENT

November [ ], 2004

MERRILL LYNCH & CO.

Merrill Lynch, Pierce, Fenner & Smith
     
Incorporated

as Representative of the several Underwriters to be

named in the within mentioned Purchase Agreement

4 World Financial Center

New York, New York 10080

     Re: Proposed Initial Public Offering by Coinmach Service Corp.

Ladies and Gentlemen:

     The undersigned, a securityholder [and an executive officer and/or director] of Coinmach
Services Corp., a Delaware corporation (the “Company”), understands that Merrill Lynch &
Co. and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) propose to
enter into a Purchase Agreement (the “Purchase Agreement”) with the Company providing for
the initial public offering of (i) the Company’s Income Deposit Securities (the “IDSs”),
each IDS representing one share of the Company’s Class A common stock, par value $0.01 per share
and $6.14 principal amount of the Company’s 11.0% senior secured notes due 2024 and (ii) an
additional $20,000,000 aggregate principal amount of the Company’s senior secured notes due 2024
(the “Third Party Notes”). In recognition of the benefit that such an offering will confer
upon the undersigned as a securityholder [and an executive officer and/or director] of the Company,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the undersigned agrees with each underwriter to be named in the Purchase Agreement
that, during a period of 180 days from the date of the Purchase Agreement (the “Lock-Up
Period”), the undersigned will not, without the prior written consent of Merrill Lynch,
directly or indirectly, (i) offer, pledge, sell, contract to sell, sell any option or contract to
purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale
of, or otherwise dispose of or transfer any of the Company’s IDSs, common stock, debt securities or
any similar securities or any securities convertible into or exchangeable or exercisable for IDSs,
common stock, debt securities or any similar securities whether now owned or hereafter acquired by
the undersigned or with respect to which the undersigned has or hereafter acquires the power of
disposition, or file, or cause to be filed, any registration statement under the Securities Act of
1933, as amended (the “1933 Act”), with respect to any of the foregoing (collectively, the
“Lock-Up Securities”) or (ii) enter into any swap or any other agreement or any transaction
that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership
of the Lock-Up Securities, whether any such swap or transaction is to be settled by delivery of
IDSs, common stock, debt securities or any similar securities, in cash or otherwise.

Notwithstanding the foregoing, if:

     (1) during the last 17 days of the Lock-Up Period, the Company issues an earnings release or
material news or a material event relating to the Company occurs; or

C-1

 

     (2) prior to the expiration of the Lock-Up Period, the Company announces that it will release
earnings results or becomes aware that material news or a material event will occur during the
16-day period beginning on the last day of the Lock-Up Period,

the restrictions imposed by this lock-up agreement (this “Lock-Up Agreement”) continue to
apply until the expiration of the 18-day period beginning on the issuance of the earnings release
or the occurrence of the material news or material event, as applicable, unless Merrill Lynch
waives, in writing, such extension.

     The undersigned hereby acknowledges and agrees that written notice of any extension of the
Lock-Up Period pursuant to the previous paragraph will be delivered by Merrill Lynch to the Company
(in accordance with Section 12 of the Purchase Agreement) and that any such notice properly
delivered will be deemed to have been given to, and received by, the undersigned. The undersigned
further agrees that, prior to engaging in any transaction or taking any other action that is
subject to the terms of this Lock-Up Agreement during the period from the date of this Lock-Up
Agreement to and including the 34th day following the expiration of the initial Lock-Up Period, it
will give notice thereof to the Company and will not consummate such transaction or take any such
action unless it has received written confirmation from the Company that the Lock-Up Period (as may
have been extended pursuant to the previous paragraph) has expired.

     Notwithstanding the foregoing and subject to the conditions below, the undersigned may
transfer the Lock-Up Securities without the prior written consent of Merrill Lynch, (i) as a bona
fide gift or gifts, (ii) to any trust for the direct or indirect benefit of the undersigned or the
immediate family of the undersigned, or (iii) as a distribution to members, limited partners or
stockholders of the undersigned or to the undersigned’s “affiliates” (as such term is defined in
Rule 501 under the 1933 Act) or to any investment fund or other entity controlled or managed by the
undersigned; provided that (1) Merrill Lynch receives a signed Lock-Up Agreement for the
balance of the Lock-Up Period from each donee, trustee, distributee or transferee, as the case may
be; (2) any such transfer shall not involve a disposition for value; (3) such transfers are not
required to be reported in any public report or filing with the Securities and Exchange Commission,
or otherwise; and (4) the undersigned does not otherwise voluntarily effect any public filing or
report regarding such transfer.

     For purposes of this Lock-Up Agreement, “immediate family” shall mean any relationship by
blood, marriage or adoption, not more remote than first cousin. The undersigned also agrees and
consents to the entry of stop transfer instructions with the Company’s transfer agent and registrar
against the transfer of the Lock-Up Securities except in compliance with the foregoing
restrictions.

     The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this Lock-Up Agreement. All authority herein conferred or agreed to be
conferred and any obligations of the undersigned shall be binding upon the successors, assigns,
heirs or personal representatives of the undersigned.

     The undersigned understands that, if the Purchase Agreement does not become effective, or if
the Purchase Agreement (other than the provisions thereof which survive termination) shall
terminate or be terminated prior to payment for and delivery of the IDSs and Third Party Notes to
be sold thereunder, the undersigned shall be released from all obligations under this Lock-Up
Agreement.

     The undersigned understands that Merrill Lynch is entering into the Purchase Agreement and
proceeding with the offering in reliance upon this Lock-Up Agreement.

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     This Lock-Up Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to the conflict of laws principles thereof.

	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	

	 	Signature:	 	 	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Print Name:	 	 	 	 
	

	 	 	 	 	 	 

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EXHIBIT D

PERFECTION CERTIFICATE

     Reference is hereby made to (i) that certain Security Agreement dated as of November 24, 2004
(the “Security Agreement”), between Coinmach Service Corp., a Delaware corporation
(“Issuer”), Coinmach Laundry Corporation, a Delaware corporation (“Laundry Corp.”
and, each of Laundry Corp. and the Issuer , a “Company”, and together, the
“Companies”) and the Collateral Agent (as hereinafter defined) and (ii) that certain
Indenture dated as of November 24, 2004 (the “Indenture”) among the Companies and The Bank
of New York, as Trustee (in such capacity, the “Trustee”) and Collateral Agent (in such
capacity, the “Collateral Agent”). Capitalized terms used but not defined herein have the
meanings assigned in the Security Agreement.

     The undersigned hereby certify to the Collateral Agent as follows:

     SECTION 18. Names. a) The exact legal name of each Company, as such name appears in
its respective certificate of incorporation or any other organizational document, is set forth in
Schedule 1(a). Each Company is (i) the type of entity disclosed next to its name in
Schedule 1(a) and (ii) a registered organization except to the extent disclosed in
Schedule 1(a). Also set forth in Schedule 1(a) is the organizational
identification number, if any, of each Company that is a registered organization, the Federal
Taxpayer Identification Number of each Company and the jurisdiction of formation of each Company.

     (b) Set forth in Schedule 1(b) hereto is any other corporate or organizational names
each Company has had in the past five years, together with the date of the relevant change.

     (c) Set forth in Schedule 1(c) is a list of all other names (including trade names or
similar appellations) used by each Company, or any other business or organization to which each
Company became the successor by merger, consolidation, acquisition, change in form, nature or
jurisdiction of organization or otherwise, at any time in the past five years. Also set forth in
Schedule 1(c) is the information required by Section 1 of this certificate for any other
business or organization to which each Company became the successor by merger, consolidation,
acquisition, change in form, nature or jurisdiction of organization or otherwise, at any time in
the past five years. Except as set forth in Schedule 1(c), no Company has changed its
jurisdiction of organization at any time during the past four months.

     SECTION 19. Current Locations. a) The chief executive office of each Company is
located at the address set forth in Schedule 2(a) hereto.

     (b) Set forth in Schedule 2(b) are all locations where each Company maintains any
books or records relating to any Collateral.

     (c) Set forth in Schedule 2(c) hereto are all the other places of business of each
Company.

     (d) Set forth in Schedule 2(d) hereto are all other locations where each Company
maintains any of the Collateral consisting of inventory or equipment not identified above.

     (e) Set forth in Schedule 2(e) hereto are the names and addresses of all persons or
entities other than each Company, such as lessees, consignees, warehousemen or purchasers of
chattel paper, which have possession or are intended to have possession of any of the Collateral
consisting of instruments, chattel paper, inventory or equipment.

D-1

 

     SECTION 20. Prior Locations. (a) Set forth in Schedule 3(a) is the information
required by Schedule 2(a), Schedule 2(b) or Schedule 2(c) with respect to each location or place of
business previously maintained by each Company at any time during the past five years in a state.

     (b) Set forth in Schedule 3(b) is the information required by Schedule 2(d) or Schedule 2(e)
with respect to each other location at which, or other person or entity with which, any of the
Collateral consisting of inventory or equipment has been previously held at any time during the
past twelve months.

     SECTION 21. Extraordinary Transactions. Except for those purchases, acquisitions and
other transactions described on Schedule 4 attached hereto, all of the Collateral has been
originated by each Company in the ordinary course of business or consists of goods which have been
acquired by such Company in the ordinary course of business from a person in the business of
selling goods of that kind.

     SECTION 22. File Search Reports. Attached hereto as Schedule 5 is a true and
accurate summary of file search reports from (A) the Uniform Commercial Code filing offices (i) in
each jurisdiction identified in Section 1(a), Section 2 or Section 3 with respect to each legal
name set forth in Section 1 and (ii) in each jurisdiction described in Schedule 1(c) or
Schedule 4 relating to any of the transactions described in Schedule (1)(c) or
Schedule 4 with respect to each legal name of the person or entity from which each Company
purchased or otherwise acquired any of the Collateral and (B) each filing officer in each real
estate recording office identified on Schedule 8 with respect to real estate on which
Collateral consisting of fixtures is or is to be located. A true copy of each financing statement,
including judgment and tax liens, bankruptcy and pending lawsuits or other filing identified in
such file search reports has been delivered to the Collateral Agent. The amounts due that gave
rise to the tax lien described in Schedule 5 have been satisfied, and a copy of the check
evidencing such payment is attached as Schedule 5-A.

     SECTION 23. UCC Filings. The financing statements (duly authorized by each Company
constituting the debtor therein), including the indications of the collateral, attached as
Schedule 6 relating to the Security Agreement or the applicable Mortgage, are in the
appropriate forms for filing in the filing offices in the jurisdictions identified in Schedule
7 hereof.

     SECTION 24. Schedule of Filings. Attached hereto as Schedule 7 is a schedule
of (i) the appropriate filing offices for the financing statements attached hereto as Schedule
6 and (ii) the appropriate filing offices for the filings described in Schedule 14(e)
and (iii) any other actions required to create, preserve, protect and perfect the security
interests in the Collateral granted to the Collateral Agent pursuant to the Collateral Agreements.
No other filings or actions are required to create, preserve, protect and perfect the security
interests in the Collateral granted to the Collateral Agent pursuant to the Collateral Agreements.

     SECTION 25. Real Property. Attached hereto as Schedule 8 is a list of all
real property owned or leased by each Company.

     SECTION 26. Termination Statements. Attached hereto as Schedule 9(a) are the
duly authorized termination statements in the appropriate form for filing in each applicable
jurisdiction identified in Schedule 9(b) hereto with respect to each Lien described
therein.

     SECTION 27. No Change. The undersigned knows of no anticipated change in any of the
circumstances or with respect to any of the matters contemplated in Sections 1 through 9 and
Section 11 through Section 17 of this Perfection Certificate except as set forth on Schedule
10 hereto.

D-2

 

     SECTION 28. Stock Ownership and Other Equity Interests. Attached hereto as
Schedule 11 is a true and correct list of all the issued and outstanding stock, partnership
interests, limited liability company membership interests or other equity interest of each direct
Subsidiary of each Company and the record and beneficial owners of such stock, partnership
interests, membership interests or other equity interests. Also set forth on Schedule 13
is each equity investment of each Company that represents 50% or less of the equity of the entity
in which such investment was made.

     SECTION 29. Instruments and Tangible Chattel Paper. Attached hereto as Schedule
12 is a true and correct list of all promissory notes, instruments (other than checks to be
deposited in the ordinary course of business), tangible chattel paper, electronic chattel paper and
other evidence of indebtedness held by each Company as of November 24, 2004, including all
intercompany notes between or among any two or more Companies.

     SECTION 30. Advances. Attached hereto as Schedule 13 is (a) a true and
correct list of all advances made by any Company to any other Company as of November 24, 2004
(other than those identified on Schedule 13) and (b) a true and correct list of all unpaid
intercompany transfers of goods sold and delivered by or to any Company as of November 24, 2004.

     SECTION 31. Intellectual Property. a) Attached hereto as Schedule 14(a) is
a schedule setting forth all of each Company’s Patents, Patent Licenses, Trademarks and Trademark
Licenses registered with the United States Patent and Trademark Office, and all other Patents,
Patent Licenses, Trademarks and Trademark Licenses, including the name of the registered owner and
the registration number of each Patent, Patent License, Trademark and Trademark License owned by
each Company. Attached hereto as Schedule 14(b) is a schedule setting forth all of each
Company’s United States Copyrights and Copyright Licenses, and all other Copyrights and Copyright
Licenses, including the name of the registered owner and the registration number of each Copyright
or Copyright License owned by each Company.

     (b) Attached hereto as Schedule 14(c) in proper form for filing with the United States
Patent and Trademark Office and United States Copyright Office are the filings necessary to
preserve, protect and perfect the security interests in the United States Trademarks, Trademark
Licenses, Patents, Patent Licenses, Copyrights and Copyright Licenses set forth on Schedule
14(a) and Schedule 14(b), including duly signed copies of each of the Patent Security
Agreement, Trademark Security Agreement and the Copyright Security Agreement, as applicable.

     15. Commercial Tort Claims. Attached hereto as Schedule 15 is a true and
correct list of all Commercial Tort Claims held by each Company, including a brief description
thereof.

     16. Deposit Accounts, Securities Accounts and Commodity Accounts. Attached hereto as
Schedule 16 is a true and complete list of all Deposit Accounts, Securities Accounts and
Commodity Accounts maintained by each Company, including the name of each institution where each
such account is held, the name of each such account and the name of each entity that holds each
account.

     17. Letter-of-Credit Rights. Attached hereto as Schedule 17 is a true and
correct list of all letters of credit issued in favor of each Company, as beneficiary thereunder.

     18. Motor Vehicles. Attached hereto as Schedule 18 is a true and correct list
of all motor vehicles (covered by certificates of title or ownership) valued at over $50,000 and
owned by each Company, and the owner and approximate value of such motor vehicles.

D-3

 

     IN WITNESS WHEREOF, we have hereunto signed this Perfection Certificate as of this ___day of
___, 2004.

	 	 	 	 	 	 	 	 	 
	 	 	COINMACH SERVICE CORP.
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	By:	 	 	 	 
	

	 	 	 	 	 	
 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 

	 	 	 	 	 	 	 	 	 
	 	 	COINMACH LAUNDRY CORPORATION
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	By:	 	 	 	 
	

	 	 	 	 	 	
 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 

D-4

 

Schedule 1(a)

Legal Names, Etc.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Registered	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Organization	 	 	Organizational	 	 	Federal Taxpayer	 	 	 	 
	 	Legal Name	 	 	Type of Entity	 	 	(Yes/No)	 	 	Number	 	 	Identification Number	 	 	State of Formation	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

D-5

 

Schedule 1(b)

Prior Organizational Names 

	 	 	 	 	 	 	 	 	 
	 
	 	Company	 	 	Prior Name	 	 	Date of
 Change	 
	 

D-6

 

Schedule 1(c)

Changes in Corporate Identity; Other Names

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	List of All Other	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Names Used	 
	 	 	 	 	Corporate Name of	 	 	 	 	 	Date of	 	 	State of	 	 	During Past Five	 
	 	Company	 	 	Entity	 	 	Action	 	 	Action	 	 	Formation	 	 	Years	 
	 

D-7

 

Schedule 2(a)

Chief Executive Offices

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Company	 	 	Address	 	 	County	 	 	State	 
	 	 
	 	 	 	 	 	 	 	 	 	 

D-8

 

Schedule 2(b)

Location of Books

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Company	 	 	Address	 	 	County	 	 	State	 
	 	 
	 	 	 	 	 	 	 	 	 	 

D-9

 

Schedule 2(c)

Other Places of Business

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Company	 	 	Address	 	 	County	 	 	State	 
	 

D-10

 

Schedule 2(d)

Additional Locations of Equipment and Inventory

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Company	 	 	Address	 	 	County	 	 	State	 
	 

D-11

 

Schedule 2(e)

Locations of Collateral in Possession of Persons Other Than any Company

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Name of Entity in	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Possession of	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Collateral/Capacity of	 	 	Address/Location of	 	 	 	 	 	 	 
	 	Company	 	 	such Entity	 	 	Collateral	 	 	County	 	 	State	 
	 

D-12

 

Schedule 3(a)

Prior Locations Maintained by each Company

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Company	 	 	Address	 	 	County	 	 	State	 
	 	 
	 	 	 	 	 	 	 	 	 	 

D-13

 

Schedule 3(b)

Prior Locations/Other Entities

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Prior Locations of	 	 	Other Entity in Pos-	 	 	Address of Such	 
	 	 	 	 	Collateral: Address	 	 	session of Collat-	 	 	Other Entity Includ-	 
	 	Company	 	 	Including County	 	 	eral/Capacity	 	 	ing County	 
	 

D-14

 

Schedule 4

Transactions Other Than in the Ordinary Course of Business

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Description of Transaction Including Parties	 	 	Date of	 
	 	Company	 	 	Thereto	 	 	Transaction	 
	 

D-15

 

Schedule 5

File Search Reports

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Company	 	 	Search Report dated	 	 	Prepared by	 	 	Jurisdiction	 
	 

D-16

 

Schedule 5-A

Copy of Cancelled Check 

with respect to
Federal Tax Lien

D-17

 

Schedule 6

Copy of Financing Statements To Be Filed

D-18

 

Schedule 7

Filings/Filing Offices

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Applicable Collateral	 	 	 	 
	 	 	 	 	 	 	 	Document	 	 	 	 
	 	 	 	 	 	 	 	[Mortgage, Security	 	 	 	 
	 	Type of Filing	 	 	Entity	 	 	Agreement or Other]	 	 	Jurisdictions	 
	 	 
	 	 	 	 	 	 	 	 	 	 

D-19

 

Schedule 8

Real Property

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Description of	 
	 	 	 	 	 	 	 	Owned or	 	 	Landlord/Owner	 	 	Lease	 
	 	Entity of Record	 	 	Location Address	 	 	Leased	 	 	if Leased	 	 	Documents	 
	 

D-20

 

Schedule 9(a)

Termination Statements

D-21

 

Schedule 9(b)

Termination Statement Filings

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	UCC-1	 
	 	 	 	 	 	 	 	Secured	 	 	 	 	 	UCC-1	 	 	File	 
	 	Debtor	 	 	Jurisdiction	 	 	Party	 	 	Type of Collateral	 	 	File Date	 	 	Number	 
	 

D-22

 

Schedule 10

Changes from Circumstances Described in Perfection Certificate

D-23

 

Schedule 11

Stock Ownership and Other Equity Interests

Company: Coinmach Service Corp.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Current Legal	 	 	 	 	 	 	 	 	No. Shares/Intere	 	 	Percent	 
	 	Entities Owned	 	 	Record Owner	 	 	Certificate No.	 	 	st	 	 	Pledged	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

Company: Coinmach Laundry Corporation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Current Legal	 	 	 	 	 	 	 	 	 	 	 	Percent	 
	 	Entities Owned	 	 	Record Owner	 	 	Certificate No.	 	 	No. Shares/Interest	 	 	Pledged	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

D-24

 

Schedule 12

Instruments and Tangible Chattel Paper

Company: Coinmach Service Corp.

1. Promissory Notes:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Principal	 	 	 	 	 	 	 	 	Maturity	 
	 	Entity	 	 	Amount	 	 	Date of Issuance	 	 	Interest Rate	 	 	Date	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

2. Chattel Paper:

Company: Coinmach Laundry Corporation

1. Promissory Notes:

A. Management/Co-Investors

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Principal	 	 	 	 	 	 	 	 	Maturity	 
	 	Person	 	 	Amount	 	 	Date of Issuance	 	 	Interest Rate	 	 	Date	 

	 

B. Employees

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Principal	 	 	 	 	 	 	 	 	Maturity	 
	 	Person	 	 	Amount	 	 	Date of Issuance	 	 	Interest Rate	 	 	Date	 
	 

2. Chattel Paper:

D-25

 

Schedule 13

Advances

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	Description and Date	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	of Unpaid	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Intercompany	 	 	 	 	 	 	 
	 	Description and	 	 	 	 	 	 	 	 	Transfer of	 	 	 	 	 	 	 
	 	Date of Advance	 	 	From	 	 	To	 	 	Goods	 	 	From	 	 	To	 
	 

D-26

 

Schedule 14(a)

Patents and Trademarks

UNITED STATES PATENTS:

Registrations:

	 	 	 	 	 
	 	 	REGISTRATION	 	 
	OWNER	 	NUMBER	 	DESCRIPTION
	 
	 	 	 	 

Applications:

	 	 	 	 	 
	 	 	APPLICATION	 	 
	OWNER	 	NUMBER	 	DESCRIPTION
	 
	 	 	 	 

Licenses:

	 	 	 	 	 	 	 
	 	 	 	 	REGISTRATION/	 	 
	 	 	 	 	APPLICATION	 	 
	LICENSEE	 	LICENSOR	 	NUMBER	 	DESCRIPTION
	 
	 	 	 	 	 	 

OTHER PATENTS:

Registrations:

	 	 	 	 	 	 	 
	 	 	REGISTRATION	 	 	 	 
	OWNER	 	NUMBER	 	COUNTRY/STATE	 	DESCRIPTION
	 
	 	 	 	 	 	 

D-27

 

Applications:

	 	 	 	 	 	 	 
	 	 	APPLICATION	 	 	 	 
	OWNER	 	NUMBER	 	COUNTRY/STATE	 	DESCRIPTION
	 
	 	 	 	 	 	 

Licenses:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	REGISTRATION/	 	 
	 	 	 	 	 	 	APPLICATION	 	 
	LICENSEE	 	LICENSOR	 	COUNTRY/STATE	 	NUMBER	 	DESCRIPTION
	 
	 	 	 	 	 	 	 	 

UNITED STATES TRADEMARKS:

Registrations:

	 	 	 	 	 
	 	 	REGISTRATION	 	 
	OWNER	 	NUMBER	 	TRADEMARK
	 
	 	 	 	 

Applications:

	 	 	 	 	 
	 	 	APPLICATION	 	 
	OWNER	 	NUMBER	 	TRADEMARK
	 
	 	 	 	 

Licenses:

	 	 	 	 	 	 	 
	 	 	 	 	REGISTRATION/	 	 
	 	 	 	 	APPLICATION	 	 
	LICENSEE	 	LICENSOR	 	NUMBER	 	TRADEMARK
	 
	 	 	 	 	 	 

D-28

 

OTHER TRADEMARKS:

Registrations:

	 	 	 	 	 	 	 
	 	 	REGISTRATION	 	 	 	 
	OWNER	 	NUMBER	 	COUNTRY/STATE	 	TRADEMARK
	 
	 	 	 	 	 	 

Applications:

	 	 	 	 	 	 	 
	 	 	APPLICATION	 	 	 	 
	OWNER	 	NUMBER	 	COUNTRY/STATE	 	TRADEMARK
	 
	 	 	 	 	 	 

Licenses:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	REGISTRATION/	 	 
	 	 	 	 	 	 	APPLICATION	 	 
	LICENSEE	 	LICENSOR	 	COUNTRY/STATE	 	NUMBER	 	TRADEMARK
	 
	 	 	 	 	 	 	 	 

D-29

 

Schedule 14(b)

Copyrights

UNITED STATES COPYRIGHTS

Registrations:

	 	 	 	 	 
	OWNER	 	TITLE	 	REGISTRATION NUMBER
	 
	 	 	 	 

Applications:

	 	 	 
	OWNER	 	APPLICATION NUMBER
	 
	 	 

Licenses:

	 	 	 	 	 	 	 
	 	 	 	 	REGISTRATION/	 	 
	 	 	 	 	APPLICATION	 	 
	LICENSEE	 	LICENSOR	 	NUMBER	 	DESCRIPTION
	 
	 	 	 	 	 	 

D-30

 

OTHER COPYRIGHTS

Registrations:

	 	 	 	 	 	 	 
	OWNER	 	COUNTRY/STATE	 	TITLE	 	REGISTRATION NUMBER
	 
	 	 	 	 	 	 

Applications:

	 	 	 	 	 
	OWNER	 	COUNTRY/STATE	 	APPLICATION NUMBER
	 
	 	 	 	 

Licenses:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	REGISTRATION/	 	 
	 	 	 	 	 	 	APPLICATION	 	 
	LICENSEE	 	LICENSOR	 	COUNTRY/STATE	 	NUMBER	 	DESCRIPTION
	 
	 	 	 	 	 	 	 	 

D-31

 

Schedule 14(c)

Intellectual Property Filings

D-32

 

Schedule 15

Commercial Tort Claims

D-33

 

Schedule 16

Deposit Accounts, Securities Accounts and Commodity Accounts

	 	 	 	 	 	 	 
	 	 	 	 	BANK OR	 	ACCOUNT
	OWNER	 	TYPE OF ACCOUNT	 	INTERMEDIARY	 	NUMBERS
	 
	 	 	 	 	 	 

D-34

 

Schedule 17

Letter of Credit Rights

D-35

 

Schedule 18

Motor Vehicles

D-36EX-10.6:

 

EXHIBIT 10.6

INDEMNITY AGREEMENT

     This Indemnity Agreement, dated as of November 24, 2004 (the “Agreement”) is made by
and between Coinmach Service Corp., a Delaware corporation (the “Company”) and James N.
Chapman, (the “Indemnitee”).

RECITALS

     A. The Company is aware that competent and experienced persons are increasingly reluctant to
serve as directors or officers of corporations unless they are protected by adequate
indemnification, due to increased exposure to litigation costs and risk resulting from their
service to such corporations, and due to the fact that the exposure may bear no reasonable
relationship to the compensation of such directors and officers;

     B. The statutes and judicial decisions regarding the duties of directors and officers are
often difficult to apply, ambiguous, or conflicting, and therefore fail to provide such directors
and officers with adequate, reliable knowledge of legal risks to which they are exposed or
information regarding the proper course of action to take;

     C. Plaintiffs often seek damages in such large amounts and the costs of litigation may be so
great (whether or not the case is meritorious), that the defense and/or settlement of such
litigation may be beyond the personal resources of directors and officers;

     D. The Board of Directors of the Company (the “Board”) has concluded that, to retain
and attract talented and experienced individuals to serve as officers and directors of the Company
and to encourage such individuals to make the business decisions necessary or appropriate for the
success of the Company and its Subsidiaries (as defined in Section 1 below), it is
necessary for the Company to contractually indemnify its directors and certain of its officers, and
certain of the directors and officers of its Subsidiaries, and to assume for itself maximum
permissible liability for Expenses, losses, liabilities and damages in connection with claims
against such officers and directors relating to their service in such capacities, and has further
concluded that the failure to provide such contractual indemnification could result in significant
harm to the Company and its Subsidiaries and the Company’s stockholders;

     E. The provisions of the Amended and Restated Certificate of Incorporation of the Company (the
“Certificate of Incorporation”) specifically state that the rights to indemnification and
payment of expenses described therein are not exclusive, and thereby contemplate that contracts
with respect to indemnification and payment of Expenses by the Company and similar obligations of
the Company may be entered into by and between the Company and persons entitled to such rights
described in the Certificate of Incorporation; and

     F. The Company desires the Indemnitee to serve or continue to serve as a director or officer
of the Company and/or one or more of its Subsidiaries without undue concern for claims for damages
arising out of or related to such services to the Company and/or one or more of its Subsidiaries.

 

 

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

     1. Definitions. For the purposes of this Agreement, the following terms shall have
the meanings set forth below:

     (a) Agent. “Agent” means any person who (i) is or was a director, officer,
employee, or other agent of the Company or a Subsidiary of the Company, (ii) is or was
serving at the request of, for the convenience of, or to represent the “interest of the
Company” or a Subsidiary of the Company as a director, officer, trustee, partner, employee,
fiduciary or agent of another foreign or domestic corporation, partnership, limited
liability company, joint venture, trust, foundation, association, organization or other
legal entity or enterprise or (iii) is or was serving in any capacity with respect to any
employee, fiduciary benefits plans of the Company or any Subsidiary. For purposes of
subsection (ii) of this Section 1(a), if Indemnitee is serving or has served as a
director, officer, trustee, partner, employee, fiduciary or agent of a Subsidiary,
Indemnitee shall be deemed to be serving at the request of the Company.

     (b) Controlled. “Controlled” means subject to the power to exercise a
controlling influence over the management or policies of a corporation, partnership, joint
venture, trust or other entity.

     (c) Expenses. “Expenses” includes all direct and indirect costs, fees and
expenses of any type or nature whatsoever (including, without limitation, attorneys’ fees
and related disbursements and retainers, other out-of-pocket costs such as fees and
disbursements of expert witnesses, private investigators and professional advisors, court
costs, transcript costs, fees of experts, duplicating, printing and binding costs, telephone
and fax transmission charges, postage, delivery services, secretarial services and other
disbursements and Expenses and reasonable compensation for time spent by the Indemnitee for
which he is not otherwise compensated by the Company or any third party) actually and
reasonably incurred by the Indemnitee in connection with either the investigation, defense,
settlement or appeal of, or otherwise related to a Proceeding or establishing or enforcing a
right to indemnification under this Agreement or otherwise.

     (d) Proceeding. “Proceeding” means any threatened, pending, or completed
claim, action, suit, arbitration, alternate dispute resolution process, investigation,
administrative hearing, appeal or any other proceeding, whether civil, criminal,
administrative, investigative or any other type whatsoever, whether formal or informal,
including a proceeding initiated by Indemnitee pursuant to Section 6 of this
Agreement to enforce Indemnitee’s rights hereunder.

     (e) Subsidiary. “Subsidiary” means (i) any corporation of which 50% or more of
the outstanding voting securities are owned directly or indirectly by the Company, or which
is otherwise controlled by the Company, (ii) any partnership, joint venture, limited
liability company, trust or other entity of which 50% or more of the equity interest is
owned directly or indirectly by the Company, or which is otherwise controlled by the

-2-

 

Company or (iii) the Company owns a general partner or managing member or similar
interest.

     2. Agreement To Serve. The Indemnitee agrees to serve and/or continue to serve as an
Agent of the Company, at its will (or under separate agreement, if such agreement exists), in the
capacity Indemnitee currently serves as an Agent of the Company; provided, however,
that nothing contained in this Agreement is intended to or shall (i) restrict the ability of the
Indemnitee to resign at any time and for any reason from any current or future position or
positions, (ii) create any right to continued employment of the Indemnitee in any current or future
position or positions, or (iii) restrict the ability of the Company to terminate the employment or
agency of Indemnitee at any time and for any reason (subject to compliance with the terms of any
employment or other applicable agreement to which the Company (or any of its Subsidiaries) and the
Indemnitee are parties).

     3. Indemnification as Agent.

     (a) Third Party Actions. If the Indemnitee was or is a party or is threatened to be
made a party to any Proceeding (other than an action by or in the right of the Company) by reason
of the fact that he is or was an Agent of the Company, or by reason of anything done or not done by
him in any such capacity or otherwise at the request of the Company or any of its officers,
directors, or stockholders, the Company shall indemnify and hold harmless the Indemnitee against
any and all Expenses, losses and liabilities of any type whatsoever (including, but not limited to,
judgments, damages, liabilities, losses, fines, excise taxes, penalties and amounts paid in
settlement) actually and reasonably incurred by him in connection with the investigation, defense,
settlement or appeal of, or otherwise related to such Proceeding, if he acted in good faith and in
a manner he reasonably believed to be in, or not opposed to, the best interests of the Company,
and, with respect to any criminal action or Proceeding, if he had no reasonable cause to believe
his conduct was unlawful. The termination of any Proceeding, or any claim, issue or matter in such
a Proceeding by reason of settlement, judgment, order or otherwise, shall be deemed to be a
successful result as to such Proceeding, claim, issue or matter, so long as there has been no
finding (either adjudicated or pursuant to Section 6(c) below) that Indemnitee (i) did not
act in good faith, or (ii) did not act in a manner reasonably believed to be in, or not opposed to,
the best interests of the Company, or (iii) with respect to any criminal Proceeding, had reasonable
cause to believe his conduct was unlawful.

     (b) Derivative Actions. If the Indemnitee was or is a party or is threatened to be
made a party to any Proceeding by or in the right of the Company to procure a judgment in its favor
by reason of the fact that he is or was an Agent of the Company, or by reason of anything done or
not done by him in any such capacity, the Company shall indemnify and hold harmless the Indemnitee
against any amounts paid in settlement of any such Proceeding and any and all Expenses, losses and
liabilities of any type whatsoever (including, but not limited to, judgments, damages, liabilities,
losses, fines, excise taxes, penalties and amounts paid in settlement) actually and reasonably
incurred by him in connection with the investigation, defense, settlement, or appeal of, or
otherwise related to such Proceeding, if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Company; except that no
indemnification under this subsection shall be made with respect to any claim, issue or matter as
to which such person has been finally adjudged to have been liable to the Company, unless and

-3-

 

only to the extent that the Court of Chancery of the State of Delaware or the court in which
such Proceeding was brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such Expenses as the court shall deem proper.

     (c) Scope of Indemnification. If the General Corporation Law of the State of Delaware
(the “Delaware Law”) or any other applicable law is amended after the date hereof to permit
the Company to indemnify Indemnitee for Expenses or liabilities, or to indemnify Indemnitee with
respect to any action or Proceeding, not contemplated by this Agreement, then this Agreement
(without any further action be either party hereto) shall automatically be deemed to be amended to
require that the Company indemnify Indemnitee to the fullest extent permitted by the Delaware Law.

     4. Advancement of Expenses. Subject to Sections 7(a) and (b) below,
the Company shall advance all Expenses actually and reasonably incurred by the Indemnitee in
connection with the investigation, defense, settlement or appeal of, or otherwise related to any
Proceeding to which the Indemnitee is a party or is threatened to be made a party by reason of the
fact that the Indemnitee is or was an Agent of the Company. Indemnitee hereby agrees to repay such
amounts advanced if it shall ultimately be determined pursuant to Section 6 below that the
Indemnitee is not entitled to be indemnified by the Company.

     5. Indemnification Procedures.

     (a) Notice by Indemnitee. Promptly after receipt by the Indemnitee of notice of the
commencement of or the threat of commencement of any Proceeding, the Indemnitee shall, if the
Indemnitee believes that indemnification with respect thereto may be sought from the Company under
this Agreement, provide written notice to the Company of the commencement or threat of commencement
thereof; provided that the failure to give such notice shall not impair Indemnitee’s rights
under this Agreement.

     (b) Notice to Insurer. If, at the time of the receipt of a notice of the commencement
of a Proceeding pursuant to Section 5(a) above, the Company has in effect an insurance
policy or policies providing directors’ and officers’ liability insurance, the Company shall give
prompt notice of the commencement of such Proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter take all necessary
or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable
as a result of such Proceeding in accordance with the terms of such policies.

     (c) Assumption of Defense. In the event the Company shall be obligated to pay the
Expenses of the Indemnitee with respect to any Proceeding, the Company shall be entitled to assume
the defense of such Proceeding, with counsel of its choosing, upon the delivery to the Indemnitee
of written notice of its election to do so, which written notice shall be delivered within ten (10)
calendar days after receipt of written notice of the Proceeding pursuant to Section 5(a)
above. After delivery of such notice, the Company will not be liable to the Indemnitee under this
Agreement for any fees and Expenses of counsel which are subsequently incurred by the Indemnitee
with respect to the same Proceeding; provided, however, that the Indemnitee shall
have the right to employ his counsel in any such Proceeding at the Indemnitee’s

-4-

 

expense; and provided further, that if (i) the employment of counsel by the
Indemnitee has been previously authorized by the Company, or (ii) the Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the Company and the
Indemnitee in the conduct of any such defense or that Indemnitee may have separate defenses or
counterclaims to assert with respect to any issue which may not be consistent with the position of
other defendants in such Proceeding, or (iii) the Company shall not, in fact, have employed counsel
to assume the defense of such Proceeding in a timely manner, then, in any such case, the fees and
Expenses of Indemnitee’s counsel shall be at the expense of the Company. In addition, if the
Company fails to comply with any of its obligations under this Agreement or in the event that the
Company or any other person takes any action to declare this Agreement void or unenforceable, or
institutes any action, suit or Proceeding to deny or to recover from Indemnitee the benefits
intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel
of Indemnitee’s choice, at the expense of the Company, to represent Indemnitee in connection with
any such matter. The Company shall not, without the prior written consent of Indemnitee, consent
to the entry of any judgment against Indemnitee or enter into any settlement or compromise which
(i) includes an admission of fault of Indemnitee or (ii) does not include, as an unconditional term
thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which
release shall be in form and substance reasonably satisfactory to Indemnitee. This Section
5(c) shall not apply to a Proceeding brought by Indemnitee under Section 6 below or
pursuant to Section 7(a) or (b) below.

     (d) Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee.
Indemnitee shall execute all documents required and shall do everything that may be necessary to
secure such rights, including the execution of such documents necessary to enable the Company to
effectively bring suit to enforce such rights.

     (e) Cooperation by Indemnitee. Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within Indemnitee’s power.

     6. Determination of Right to Indemnification.

     (a) Successful Proceeding. To the extent the Indemnitee has been successful, on the
merits or otherwise, in the defense of any Proceeding referred to in Section 3 above, the
Company shall indemnify the Indemnitee against any and all Expenses actually and reasonably
incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding
but is successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Company shall indemnify Indemnitee against any and all Expenses
actually and reasonably incurred by or for him in connection with each successfully resolved claim,
issue or matter.

     (b) Other Proceeding. In the event that Section 6(a) above is inapplicable,
or applicable only in part, the Company shall nevertheless indemnify the Indemnitee unless it is
determined in a form described below that the Indemnitee has not met the applicable standard of
conduct set forth in Section 3 above, if any, which entitles Indemnitee to such
indemnification.

-5-

 

     (c) Forum in Event of Dispute. The Indemnitee shall be entitled to select the forum
in which the validity of the Company’s claim under Section 6(b) hereof that the Indemnitee
is not entitled to indemnification will be heard, from among the following (subject to provisions
of applicable law):

     (i) by a majority vote of the directors of the Board who are not parties to such
Proceeding, even though less than a quorum; or

     (ii) by a committee of such directors designated by majority vote of such directors,
even though less than a quorum; or

     (iii) if there are no such directors, or if such directors so direct, by independent
legal counsel in a written opinion; or

     (iv) by the stockholders.

     (d) Submission of Company’s Claim. As soon as practicable, and in no event later than
thirty (30) days after written notice of the Indemnitee’s choice of forum pursuant to Section
6(c) above, the Company shall, at its own expense, submit to the selected forum in such manner
as the Indemnitee or the Indemnitee’s counsel may reasonably request, its claim that the Indemnitee
is not entitled to indemnification. The Company shall act in the utmost good faith to assure the
Indemnitee a complete opportunity to defend against such claim.

     (e) Appeal to Court. Notwithstanding a determination by any forum listed in
Section 6(c) above that Indemnitee is not entitled to indemnification with respect to a
specific Proceeding, the Indemnitee shall have the right to apply to the court in which that
Proceeding is or was pending or any other court of competent jurisdiction, for the purpose of
enforcing the Indemnitee’s right to indemnification pursuant to this Agreement.

     (f) Indemnity for Expenses in Enforcement of Agreement. Notwithstanding any other
provision in this Agreement to the contrary, the Company shall indemnify the Indemnitee against all
Expenses incurred by the Indemnitee in connection with any hearing or Proceeding under this
Section 6 involving the Indemnitee and against all Expenses incurred by the Indemnitee in
connection with any other Proceeding between the Company and the Indemnitee involving the
interpretation or enforcement of the rights of the Indemnitee under this Agreement unless a court
of competent jurisdiction finds that the claims and/or defenses of the Indemnitee in any such
Proceeding was frivolous or made in bad faith.

     (g) Effect of Certain Resolutions. Neither the settlement or termination of any
Proceeding nor the failure of the Company to award indemnification or to determine that
indemnification is payable shall create a presumption that Indemnitee is not entitled to
indemnification hereunder. In addition, the termination of any Proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent shall
not create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company or, with respect
to any criminal Proceeding, had reasonable cause to believe that Indemnitee’s action was unlawful.

-6-

 

     (h) Failure To Act Not a Defense. The failure of the Company (including its Board of
Directors or any committee thereof, independent legal counsel, or stockholders) to make a
determination concerning the permissibility of indemnification hereunder or the advancement of
Expenses under this Agreement shall not be a defense in any action brought under Section 6
above, and shall not create a presumption that such indemnification or advancement is not
permissible.

     7. Exceptions.

     (a) Excluded Action or Omissions. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated to indemnify or advance Expenses to Indemnitee
with respect to Proceedings or claims arising out of acts, omissions or transactions for which
Indemnitee is prohibited from receiving indemnification under applicable law.

     (b) Claims Initiated by Indemnitee. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to
indemnify or advance Expenses to the Indemnitee with respect to Proceedings or claims initiated or
brought voluntarily by the Indemnitee and not by way of defense or counterclaims asserted by
Indemnitee in any Proceeding brought against Indemnitee, except with respect to Proceedings brought
to establish or enforce a right to indemnification under this Agreement or any other statute or law
or otherwise as required under the General Corporation Law of the State of Delaware, but such
indemnification or advancement of Expenses may be provided by the Company in specific cases if the
Board finds it to be appropriate.

     (c) Lack of Good Faith. Any other provision herein to the contrary notwithstanding,
the Company shall not be obligated pursuant to the terms of this Agreement to indemnify the
Indemnitee for any Expenses incurred by the Indemnitee with respect to any Proceeding instituted by
the Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction
determines that each of the material assertions made by the Indemnitee in such Proceeding was
frivolous or made in bad faith.

     (d) Unauthorized Settlements. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to
indemnify the Indemnitee for any amount paid in settlement of a Proceeding effected without the
prior written consent of the Company. The Company agrees not to unreasonably withhold its consent
to any settlement.

     (e) No Duplicative Payment. The Company shall not be liable under this Agreement to
make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee
has otherwise actually received such payment under any insurance policy, contract, agreement or
otherwise.

     8. Non-exclusivity. The provisions for indemnification and advancement of Expenses
set forth in this Agreement shall not be deemed exclusive of any other rights which the Indemnitee
may have under any provision of law, the Certificate of Incorporation or Amended and Restated
Bylaws, the vote of the Company’s stockholders or disinterested directors, other agreements, or
otherwise, both as to action in his official

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capacity and as to action in another capacity while occupying a position as an Agent of the
Company.

     9. Interpretation of Agreement; Scope. It is understood that the parties hereto
intend this Agreement to be interpreted and enforced so as to provide indemnification to the
Indemnitee to the fullest extent now or hereafter permitted by applicable law. The benefits of
this Agreement shall inure to the Indemnitee both with respect to acts done or not done by him both
before and after this date.

     10. Burden of Proof. In making a determination with respect to entitlement to
indemnification hereunder, the person or persons or entity making such determination shall presume
that Indemnitee is entitled to indemnification under this Agreement, and the Company shall have the
burden of proof to overcome that presumption in connection with the making by any person, persons
or entity of any determination contrary to that presumption.

     11. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of the Agreement (including, without limitation, all
portions of any paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, all portions of any paragraph of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable and to give effect to Section 9
hereof.

     12. Modification and Waiver. Except as contemplated by Section 3(c), no
supplement, modification or amendment of this Agreement shall be binding unless executed in writing
by all parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such
waiver constitute a continuing waiver.

     13. Survival, Successors and Assigns. The Indemnitee’s rights under this Agreement
shall continue after the Indemnitee has ceased acting as an Agent of the Company. The terms of
this Agreement shall be binding on and inure to the benefit of the Company and its successors and
assigns and shall be binding on and inure to the benefit of Indemnitee and Indemnitee’s heirs,
executors and administrators.

     14. Gender. The masculine, feminine or neuter pronouns used herein shall be
interpreted without regard to gender, and the use of the singular or plural shall be deemed to
include the other whenever the context so requires.

     15. Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and received
by the party addressee or (ii) if mailed by certified or registered mail with postage prepaid, on
the third business day after the mailing date. All notice to either party will be sent to the
applicable address below, or as subsequently modified by written notice.

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     If to the Company:

	 	 	 
	

	 	Coinmach Service Corp.
	

	 	303 Sunnyside Blvd., Suite 70
	

	 	Plainview, NY 11803
	

	 	Attention: Robert M. Doyle

     If to Indemnitee, at such Indemnitee’s primary address listed in the records of the Company.

     16. Governing Law. This Agreement, and all rights, remedies, liabilities, powers and
duties of the parties to this Agreement, shall be governed exclusively by and construed according
to the laws of the State of Delaware without regard to principles of conflicts of laws.

     17. Consent to Jurisdiction. The Company and the Indemnitee each hereby irrevocably
consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection
with any action or Proceeding which arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be brought only in the state courts of the State of
Delaware.

     18. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all such counterparts shall together constitute one and
the same instrument.

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     The parties hereto have entered into this Indemnity Agreement effective as of the date first
above written.

	 	 	 	 	 
	 	 	COINMACH SERVICE CORP.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Stephen R. Kerrigan
	

	 	 	 	 
	 
	 	 	 	 
	

	 	Title:
	 	Chief Executive Officer
	 
	 	 	 	 
	

	 	INDEMNITEE:
	 	/s/ James N. Chapman
	

	 	 	 	 

-10-

 

INDEMNITY AGREEMENT

     This Indemnity Agreement, dated as of November 24, 2004 (the “Agreement”) is made by
and between Coinmach Service Corp., a Delaware corporation (the “Company”) and David A.
Donnini, (the “Indemnitee”).

RECITALS

     A. The Company is aware that competent and experienced persons are increasingly reluctant to
serve as directors or officers of corporations unless they are protected by adequate
indemnification, due to increased exposure to litigation costs and risk resulting from their
service to such corporations, and due to the fact that the exposure may bear no reasonable
relationship to the compensation of such directors and officers;

     B. The statutes and judicial decisions regarding the duties of directors and officers are
often difficult to apply, ambiguous, or conflicting, and therefore fail to provide such directors
and officers with adequate, reliable knowledge of legal risks to which they are exposed or
information regarding the proper course of action to take;

     C. Plaintiffs often seek damages in such large amounts and the costs of litigation may be so
great (whether or not the case is meritorious), that the defense and/or settlement of such
litigation may be beyond the personal resources of directors and officers;

     D. The Board of Directors of the Company (the “Board”) has concluded that, to retain
and attract talented and experienced individuals to serve as officers and directors of the Company
and to encourage such individuals to make the business decisions necessary or appropriate for the
success of the Company and its Subsidiaries (as defined in Section 1 below), it is
necessary for the Company to contractually indemnify its directors and certain of its officers, and
certain of the directors and officers of its Subsidiaries, and to assume for itself maximum
permissible liability for Expenses, losses, liabilities and damages in connection with claims
against such officers and directors relating to their service in such capacities, and has further
concluded that the failure to provide such contractual indemnification could result in significant
harm to the Company and its Subsidiaries and the Company’s stockholders;

     E. The provisions of the Amended and Restated Certificate of Incorporation of the Company (the
“Certificate of Incorporation”) specifically state that the rights to indemnification and
payment of expenses described therein are not exclusive, and thereby contemplate that contracts
with respect to indemnification and payment of Expenses by the Company and similar obligations of
the Company may be entered into by and between the Company and persons entitled to such rights
described in the Certificate of Incorporation; and

     F. The Company desires the Indemnitee to serve or continue to serve as a director or officer
of the Company and/or one or more of its Subsidiaries without undue concern for claims for damages
arising out of or related to such services to the Company and/or one or more of its Subsidiaries.

 

 

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

     1. Definitions. For the purposes of this Agreement, the following terms shall have
the meanings set forth below:

     (a) Agent. “Agent” means any person who (i) is or was a director, officer,
employee, or other agent of the Company or a Subsidiary of the Company, (ii) is or was
serving at the request of, for the convenience of, or to represent the “interest of the
Company” or a Subsidiary of the Company as a director, officer, trustee, partner, employee,
fiduciary or agent of another foreign or domestic corporation, partnership, limited
liability company, joint venture, trust, foundation, association, organization or other
legal entity or enterprise or (iii) is or was serving in any capacity with respect to any
employee, fiduciary benefits plans of the Company or any Subsidiary. For purposes of
subsection (ii) of this Section 1(a), if Indemnitee is serving or has served as a
director, officer, trustee, partner, employee, fiduciary or agent of a Subsidiary,
Indemnitee shall be deemed to be serving at the request of the Company.

     (b) Controlled. “Controlled” means subject to the power to exercise a
controlling influence over the management or policies of a corporation, partnership, joint
venture, trust or other entity.

     (c) Expenses. “Expenses” includes all direct and indirect costs, fees and
expenses of any type or nature whatsoever (including, without limitation, attorneys’ fees
and related disbursements and retainers, other out-of-pocket costs such as fees and
disbursements of expert witnesses, private investigators and professional advisors, court
costs, transcript costs, fees of experts, duplicating, printing and binding costs, telephone
and fax transmission charges, postage, delivery services, secretarial services and other
disbursements and Expenses and reasonable compensation for time spent by the Indemnitee for
which he is not otherwise compensated by the Company or any third party) actually and
reasonably incurred by the Indemnitee in connection with either the investigation, defense,
settlement or appeal of, or otherwise related to a Proceeding or establishing or enforcing a
right to indemnification under this Agreement or otherwise.

     (d) Proceeding. “Proceeding” means any threatened, pending, or completed
claim, action, suit, arbitration, alternate dispute resolution process, investigation,
administrative hearing, appeal or any other proceeding, whether civil, criminal,
administrative, investigative or any other type whatsoever, whether formal or informal,
including a proceeding initiated by Indemnitee pursuant to Section 6 of this
Agreement to enforce Indemnitee’s rights hereunder.

     (e) Subsidiary. “Subsidiary” means (i) any corporation of which 50% or more of
the outstanding voting securities are owned directly or indirectly by the Company, or which
is otherwise controlled by the Company, (ii) any partnership, joint venture, limited
liability company, trust or other entity of which 50% or more of the equity interest is
owned directly or indirectly by the Company, or which is otherwise controlled by the

-2-

 

Company or (iii) the Company owns a general partner or managing member or similar
interest.

     2. Agreement To Serve. The Indemnitee agrees to serve and/or continue to serve as an
Agent of the Company, at its will (or under separate agreement, if such agreement exists), in the
capacity Indemnitee currently serves as an Agent of the Company; provided, however,
that nothing contained in this Agreement is intended to or shall (i) restrict the ability of the
Indemnitee to resign at any time and for any reason from any current or future position or
positions, (ii) create any right to continued employment of the Indemnitee in any current or future
position or positions, or (iii) restrict the ability of the Company to terminate the employment or
agency of Indemnitee at any time and for any reason (subject to compliance with the terms of any
employment or other applicable agreement to which the Company (or any of its Subsidiaries) and the
Indemnitee are parties).

     3. Indemnification as Agent.

     (a) Third Party Actions. If the Indemnitee was or is a party or is threatened to be
made a party to any Proceeding (other than an action by or in the right of the Company) by reason
of the fact that he is or was an Agent of the Company, or by reason of anything done or not done by
him in any such capacity or otherwise at the request of the Company or any of its officers,
directors, or stockholders, the Company shall indemnify and hold harmless the Indemnitee against
any and all Expenses, losses and liabilities of any type whatsoever (including, but not limited to,
judgments, damages, liabilities, losses, fines, excise taxes, penalties and amounts paid in
settlement) actually and reasonably incurred by him in connection with the investigation, defense,
settlement or appeal of, or otherwise related to such Proceeding, if he acted in good faith and in
a manner he reasonably believed to be in, or not opposed to, the best interests of the Company,
and, with respect to any criminal action or Proceeding, if he had no reasonable cause to believe
his conduct was unlawful. The termination of any Proceeding, or any claim, issue or matter in such
a Proceeding by reason of settlement, judgment, order or otherwise, shall be deemed to be a
successful result as to such Proceeding, claim, issue or matter, so long as there has been no
finding (either adjudicated or pursuant to Section 6(c) below) that Indemnitee (i) did not
act in good faith, or (ii) did not act in a manner reasonably believed to be in, or not opposed to,
the best interests of the Company, or (iii) with respect to any criminal Proceeding, had reasonable
cause to believe his conduct was unlawful.

     (b) Derivative Actions. If the Indemnitee was or is a party or is threatened to be
made a party to any Proceeding by or in the right of the Company to procure a judgment in its favor
by reason of the fact that he is or was an Agent of the Company, or by reason of anything done or

not done by him in any such capacity, the Company shall indemnify and hold harmless the Indemnitee
against any amounts paid in settlement of any such Proceeding and any and all Expenses, losses and
liabilities of any type whatsoever (including, but not limited to, judgments, damages, liabilities,
losses, fines, excise taxes, penalties and amounts paid in settlement) actually and reasonably
incurred by him in connection with the investigation, defense, settlement, or appeal of, or
otherwise related to such Proceeding, if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Company; except that no
indemnification under this subsection shall be made with respect to any claim, issue or matter as
to which such person has been finally adjudged to have been liable to the Company, unless and

-3-

 

only to the extent that the Court of Chancery of the State of Delaware or the court in which
such Proceeding was brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such Expenses as the court shall deem proper.

     (c) Scope of Indemnification. If the General Corporation Law of the State of Delaware
(the “Delaware Law”) or any other applicable law is amended after the date hereof to permit
the Company to indemnify Indemnitee for Expenses or liabilities, or to indemnify Indemnitee with
respect to any action or Proceeding, not contemplated by this Agreement, then this Agreement
(without any further action be either party hereto) shall automatically be deemed to be amended to
require that the Company indemnify Indemnitee to the fullest extent permitted by the Delaware Law.

     4. Advancement of Expenses. Subject to Sections 7(a) and (b) below,
the Company shall advance all Expenses actually and reasonably incurred by the Indemnitee in
connection with the investigation, defense, settlement or appeal of, or otherwise related to any
Proceeding to which the Indemnitee is a party or is threatened to be made a party by reason of the
fact that the Indemnitee is or was an Agent of the Company. Indemnitee hereby agrees to repay such
amounts advanced if it shall ultimately be determined pursuant to Section 6 below that the
Indemnitee is not entitled to be indemnified by the Company.

     5. Indemnification Procedures.

     (a) Notice by Indemnitee. Promptly after receipt by the Indemnitee of notice of the
commencement of or the threat of commencement of any Proceeding, the Indemnitee shall, if the
Indemnitee believes that indemnification with respect thereto may be sought from the Company under
this Agreement, provide written notice to the Company of the commencement or threat of commencement
thereof; provided that the failure to give such notice shall not impair Indemnitee’s rights
under this Agreement.

     (b) Notice to Insurer. If, at the time of the receipt of a notice of the commencement
of a Proceeding pursuant to Section 5(a) above, the Company has in effect an insurance
policy or policies providing directors’ and officers’ liability insurance, the Company shall give
prompt notice of the commencement of such Proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter take all necessary
or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable
as a result of such Proceeding in accordance with the terms of such policies.

     (c) Assumption of Defense. In the event the Company shall be obligated to pay the
Expenses of the Indemnitee with respect to any Proceeding, the Company shall be entitled to assume
the defense of such Proceeding, with counsel of its choosing, upon the delivery to the Indemnitee
of written notice of its election to do so, which written notice shall be delivered within ten (10)
calendar days after receipt of written notice of the Proceeding pursuant to Section 5(a)
above. After delivery of such notice, the Company will not be liable to the Indemnitee under this
Agreement for any fees and Expenses of counsel which are subsequently incurred by the Indemnitee
with respect to the same Proceeding; provided, however, that the Indemnitee shall
have the right to employ his counsel in any such Proceeding at the Indemnitee’s

-4-

 

expense; and provided further, that if (i) the employment of counsel by the
Indemnitee has been previously authorized by the Company, or (ii) the Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the Company and the
Indemnitee in the conduct of any such defense or that Indemnitee may have separate defenses or
counterclaims to assert with respect to any issue which may not be consistent with the position of
other defendants in such Proceeding, or (iii) the Company shall not, in fact, have employed counsel
to assume the defense of such Proceeding in a timely manner, then, in any such case, the fees and
Expenses of Indemnitee’s counsel shall be at the expense of the Company. In addition, if the
Company fails to comply with any of its obligations under this Agreement or in the event that the
Company or any other person takes any action to declare this Agreement void or unenforceable, or
institutes any action, suit or Proceeding to deny or to recover from Indemnitee the benefits
intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel
of Indemnitee’s choice, at the expense of the Company, to represent Indemnitee in connection with
any such matter. The Company shall not, without the prior written consent of Indemnitee, consent
to the entry of any judgment against Indemnitee or enter into any settlement or compromise which
(i) includes an admission of fault of Indemnitee or (ii) does not include, as an unconditional term
thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which
release shall be in form and substance reasonably satisfactory to Indemnitee. This Section
5(c) shall not apply to a Proceeding brought by Indemnitee under Section 6 below or
pursuant to Section 7(a) or (b) below.

     (d) Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee.
Indemnitee shall execute all documents required and shall do everything that may be necessary to
secure such rights, including the execution of such documents necessary to enable the Company to
effectively bring suit to enforce such rights.

     (e) Cooperation by Indemnitee. Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within Indemnitee’s power.

     6. Determination of Right to Indemnification.

     (a) Successful Proceeding. To the extent the Indemnitee has been successful, on the
merits or otherwise, in the defense of any Proceeding referred to in Section 3 above, the
Company shall indemnify the Indemnitee against any and all Expenses actually and reasonably
incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding
but is successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Company shall indemnify Indemnitee against any and all Expenses
actually and reasonably incurred by or for him in connection with each successfully resolved claim,
issue or matter.

     (b) Other Proceeding. In the event that Section 6(a) above is inapplicable,
or applicable only in part, the Company shall nevertheless indemnify the Indemnitee unless it is
determined in a form described below that the Indemnitee has not met the applicable standard of
conduct set forth in Section 3 above, if any, which entitles Indemnitee to such
indemnification.

-5-

 

     (c) Forum in Event of Dispute. The Indemnitee shall be entitled to select the forum
in which the validity of the Company’s claim under Section 6(b) hereof that the Indemnitee
is not entitled to indemnification will be heard, from among the following (subject to provisions
of applicable law):

     (i) by a majority vote of the directors of the Board who are not parties to such
Proceeding, even though less than a quorum; or

     (ii) by a committee of such directors designated by majority vote of such directors,
even though less than a quorum; or

     (iii) if there are no such directors, or if such directors so direct, by independent
legal counsel in a written opinion; or

     (iv) by the stockholders.

     (d) Submission of Company’s Claim. As soon as practicable, and in no event later than
thirty (30) days after written notice of the Indemnitee’s choice of forum pursuant to Section
6(c) above, the Company shall, at its own expense, submit to the selected forum in such manner
as the Indemnitee or the Indemnitee’s counsel may reasonably request, its claim that the Indemnitee
is not entitled to indemnification. The Company shall act in the utmost good faith to assure the
Indemnitee a complete opportunity to defend against such claim.

     (e) Appeal to Court. Notwithstanding a determination by any forum listed in
Section 6(c) above that Indemnitee is not entitled to indemnification with respect to a
specific Proceeding, the Indemnitee shall have the right to apply to the court in which that
Proceeding is or was pending or any other court of competent jurisdiction, for the purpose of
enforcing the Indemnitee’s right to indemnification pursuant to this Agreement.

     (f) Indemnity for Expenses in Enforcement of Agreement. Notwithstanding any other
provision in this Agreement to the contrary, the Company shall indemnify the Indemnitee against all
Expenses incurred by the Indemnitee in connection with any hearing or Proceeding under this
Section 6 involving the Indemnitee and against all Expenses incurred by the Indemnitee in
connection with any other Proceeding between the Company and the Indemnitee involving the
interpretation or enforcement of the rights of the Indemnitee under this Agreement unless a court
of competent jurisdiction finds that the claims and/or defenses of the Indemnitee in any such
Proceeding was frivolous or made in bad faith.

     (g) Effect of Certain Resolutions. Neither the settlement or termination of any
Proceeding nor the failure of the Company to award indemnification or to determine that
indemnification is payable shall create a presumption that Indemnitee is not entitled to
indemnification hereunder. In addition, the termination of any Proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent shall
not create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company or, with respect
to any criminal Proceeding, had reasonable cause to believe that Indemnitee’s action was unlawful.

-6-

 

     (h) Failure To Act Not a Defense. The failure of the Company (including its Board of
Directors or any committee thereof, independent legal counsel, or stockholders) to make a
determination concerning the permissibility of indemnification hereunder or the advancement of
Expenses under this Agreement shall not be a defense in any action brought under Section 6
above, and shall not create a presumption that such indemnification or advancement is not
permissible.

     7. Exceptions.

     (a) Excluded Action or Omissions. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated to indemnify or advance Expenses to Indemnitee
with respect to Proceedings or claims arising out of acts, omissions or transactions for which
Indemnitee is prohibited from receiving indemnification under applicable law.

     (b) Claims Initiated by Indemnitee. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to
indemnify or advance Expenses to the Indemnitee with respect to Proceedings or claims initiated or
brought voluntarily by the Indemnitee and not by way of defense or counterclaims asserted by
Indemnitee in any Proceeding brought against Indemnitee, except with respect to Proceedings brought
to establish or enforce a right to indemnification under this Agreement or any other statute or law
or otherwise as required under the General Corporation Law of the State of Delaware, but such
indemnification or advancement of Expenses may be provided by the Company in specific cases if the
Board finds it to be appropriate.

     (c) Lack of Good Faith. Any other provision herein to the contrary notwithstanding,
the Company shall not be obligated pursuant to the terms of this Agreement to indemnify the
Indemnitee for any Expenses incurred by the Indemnitee with respect to any Proceeding instituted by
the Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction
determines that each of the material assertions made by the Indemnitee in such Proceeding was
frivolous or made in bad faith.

     (d) Unauthorized Settlements. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to
indemnify the Indemnitee for any amount paid in settlement of a Proceeding effected without the
prior written consent of the Company. The Company agrees not to unreasonably withhold its consent
to any settlement.

     (e) No Duplicative Payment. The Company shall not be liable under this Agreement to
make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee
has otherwise actually received such payment under any insurance policy, contract, agreement or
otherwise.

     8. Non-exclusivity. The provisions for indemnification and advancement of Expenses
set forth in this Agreement shall not be deemed exclusive of any other rights which the Indemnitee
may have under any provision of law, the Certificate of Incorporation or Amended and Restated
Bylaws, the vote of the Company’s stockholders or disinterested directors, other agreements, or
otherwise, both as to action in his official

-7-

 

capacity and as to action in another capacity while occupying a position as an Agent of the
Company.

     9. Interpretation of Agreement; Scope. It is understood that the parties hereto
intend this Agreement to be interpreted and enforced so as to provide indemnification to the
Indemnitee to the fullest extent now or hereafter permitted by applicable law. The benefits of
this Agreement shall inure to the Indemnitee both with respect to acts done or not done by him both
before and after this date.

     10. Burden of Proof. In making a determination with respect to entitlement to
indemnification hereunder, the person or persons or entity making such determination shall presume
that Indemnitee is entitled to indemnification under this Agreement, and the Company shall have the
burden of proof to overcome that presumption in connection with the making by any person, persons
or entity of any determination contrary to that presumption.

     11. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of the Agreement (including, without limitation, all
portions of any paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, all portions of any paragraph of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable and to give effect to Section 9
hereof.

     12. Modification and Waiver. Except as contemplated by Section 3(c), no
supplement, modification or amendment of this Agreement shall be binding unless executed in writing
by all parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such
waiver constitute a continuing waiver.

     13. Survival, Successors and Assigns. The Indemnitee’s rights under this Agreement
shall continue after the Indemnitee has ceased acting as an Agent of the Company. The terms of
this Agreement shall be binding on and inure to the benefit of the Company and its successors and
assigns and shall be binding on and inure to the benefit of Indemnitee and Indemnitee’s heirs,
executors and administrators.

     14. Gender. The masculine, feminine or neuter pronouns used herein shall be
interpreted without regard to gender, and the use of the singular or plural shall be deemed to
include the other whenever the context so requires.

     15. Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and received
by the party addressee or (ii) if mailed by certified or registered mail with postage prepaid, on
the third business day after the mailing date. All notice to either party will be sent to the
applicable address below, or as subsequently modified by written notice.

-8-

 

     If to the Company:

	 	 	 
	

	 	Coinmach Service Corp.
	

	 	303 Sunnyside Blvd., Suite 70
	

	 	Plainview, NY 11803
	

	 	Attention: Robert M. Doyle

     If to Indemnitee, at such Indemnitee’s primary address listed in the records of the Company.

     16. Governing Law. This Agreement, and all rights, remedies, liabilities, powers and
duties of the parties to this Agreement, shall be governed exclusively by and construed according
to the laws of the State of Delaware without regard to principles of conflicts of laws.

     17. Consent to Jurisdiction. The Company and the Indemnitee each hereby irrevocably
consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection
with any action or Proceeding which arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be brought only in the state courts of the State of
Delaware.

     18. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all such counterparts shall together constitute one and
the same instrument.

-9-

 

     The parties hereto have entered into this Indemnity Agreement effective as of the date first
above written.

	 	 	 	 	 
	 	 	COINMACH SERVICE CORP.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Stephen R. Kerrigan
	

	 	 	 	 
	 
	 	 	 	 
	

	 	Title:
	 	Chief Executive Officer
	 
	 	 	 	 
	

	 	INDEMNITEE:
	 	/s/ David A. Donnini
	

	 	 	 	 

-10-

 

INDEMNITY AGREEMENT

     This Indemnity Agreement, dated as of November 24, 2004 (the “Agreement”) is made by
and between Coinmach Service Corp., a Delaware corporation (the “Company”) and Robert M.
Doyle, (the “Indemnitee”).

RECITALS

     A. The Company is aware that competent and experienced persons are increasingly reluctant to
serve as directors or officers of corporations unless they are protected by adequate
indemnification, due to increased exposure to litigation costs and risk resulting from their
service to such corporations, and due to the fact that the exposure may bear no reasonable
relationship to the compensation of such directors and officers;

     B. The statutes and judicial decisions regarding the duties of directors and officers are
often difficult to apply, ambiguous, or conflicting, and therefore fail to provide such directors
and officers with adequate, reliable knowledge of legal risks to which they are exposed or
information regarding the proper course of action to take;

     C. Plaintiffs often seek damages in such large amounts and the costs of litigation may be so
great (whether or not the case is meritorious), that the defense and/or settlement of such
litigation may be beyond the personal resources of directors and officers;

     D. The Board of Directors of the Company (the “Board”) has concluded that, to retain
and attract talented and experienced individuals to serve as officers and directors of the Company
and to encourage such individuals to make the business decisions necessary or appropriate for the
success of the Company and its Subsidiaries (as defined in Section 1 below), it is
necessary for the Company to contractually indemnify its directors and certain of its officers, and
certain of the directors and officers of its Subsidiaries, and to assume for itself maximum
permissible liability for Expenses, losses, liabilities and damages in connection with claims
against such officers and directors relating to their service in such capacities, and has further
concluded that the failure to provide such contractual indemnification could result in significant
harm to the Company and its Subsidiaries and the Company’s stockholders;

     E. The provisions of the Amended and Restated Certificate of Incorporation of the Company (the
“Certificate of Incorporation”) specifically state that the rights to indemnification and
payment of expenses described therein are not exclusive, and thereby contemplate that contracts
with respect to indemnification and payment of Expenses by the Company and similar obligations of
the Company may be entered into by and between the Company and persons entitled to such rights
described in the Certificate of Incorporation; and

     F. The Company desires the Indemnitee to serve or continue to serve as a director or officer
of the Company and/or one or more of its Subsidiaries without undue concern for claims for damages
arising out of or related to such services to the Company and/or one or more of its Subsidiaries.

 

 

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

     1. Definitions. For the purposes of this Agreement, the following terms shall have
the meanings set forth below:

     (a) Agent. “Agent” means any person who (i) is or was a director, officer,
employee, or other agent of the Company or a Subsidiary of the Company, (ii) is or was
serving at the request of, for the convenience of, or to represent the “interest of the
Company” or a Subsidiary of the Company as a director, officer, trustee, partner, employee,
fiduciary or agent of another foreign or domestic corporation, partnership, limited
liability company, joint venture, trust, foundation, association, organization or other
legal entity or enterprise or (iii) is or was serving in any capacity with respect to any
employee, fiduciary benefits plans of the Company or any Subsidiary. For purposes of
subsection (ii) of this Section 1(a), if Indemnitee is serving or has served as a
director, officer, trustee, partner, employee, fiduciary or agent of a Subsidiary,
Indemnitee shall be deemed to be serving at the request of the Company.

     (b) Controlled. “Controlled” means subject to the power to exercise a
controlling influence over the management or policies of a corporation, partnership, joint
venture, trust or other entity.

     (c) Expenses. “Expenses” includes all direct and indirect costs, fees and
expenses of any type or nature whatsoever (including, without limitation, attorneys’ fees
and related disbursements and retainers, other out-of-pocket costs such as fees and
disbursements of expert witnesses, private investigators and professional advisors, court
costs, transcript costs, fees of experts, duplicating, printing and binding costs, telephone
and fax transmission charges, postage, delivery services, secretarial services and other
disbursements and Expenses and reasonable compensation for time spent by the Indemnitee for
which he is not otherwise compensated by the Company or any third party) actually and
reasonably incurred by the Indemnitee in connection with either the investigation, defense,
settlement or appeal of, or otherwise related to a Proceeding or establishing or enforcing a
right to indemnification under this Agreement or otherwise.

     (d) Proceeding. “Proceeding” means any threatened, pending, or completed
claim, action, suit, arbitration, alternate dispute resolution process, investigation,
administrative hearing, appeal or any other proceeding, whether civil, criminal,
administrative, investigative or any other type whatsoever, whether formal or informal,
including a proceeding initiated by Indemnitee pursuant to Section 6 of this
Agreement to enforce Indemnitee’s rights hereunder.

     (e) Subsidiary. “Subsidiary” means (i) any corporation of which 50% or more of
the outstanding voting securities are owned directly or indirectly by the Company, or which
is otherwise controlled by the Company, (ii) any partnership, joint venture, limited
liability company, trust or other entity of which 50% or more of the equity interest is
owned directly or indirectly by the Company, or which is otherwise controlled by the

-2-

 

Company or (iii) the Company owns a general partner or managing member or similar
interest.

     2. Agreement To Serve. The Indemnitee agrees to serve and/or continue to serve as an
Agent of the Company, at its will (or under separate agreement, if such agreement exists), in the
capacity Indemnitee currently serves as an Agent of the Company; provided, however,
that nothing contained in this Agreement is intended to or shall (i) restrict the ability of the
Indemnitee to resign at any time and for any reason from any current or future position or
positions, (ii) create any right to continued employment of the Indemnitee in any current or future
position or positions, or (iii) restrict the ability of the Company to terminate the employment or
agency of Indemnitee at any time and for any reason (subject to compliance with the terms of any
employment or other applicable agreement to which the Company (or any of its Subsidiaries) and the
Indemnitee are parties).

     3. Indemnification as Agent.

     (a) Third Party Actions. If the Indemnitee was or is a party or is threatened to be
made a party to any Proceeding (other than an action by or in the right of the Company) by reason
of the fact that he is or was an Agent of the Company, or by reason of anything done or not done by
him in any such capacity or otherwise at the request of the Company or any of its officers,
directors, or stockholders, the Company shall indemnify and hold harmless the Indemnitee against
any and all Expenses, losses and liabilities of any type whatsoever (including, but not limited to,
judgments, damages, liabilities, losses, fines, excise taxes, penalties and amounts paid in
settlement) actually and reasonably incurred by him in connection with the investigation, defense,
settlement or appeal of, or otherwise related to such Proceeding, if he acted in good faith and in
a manner he reasonably believed to be in, or not opposed to, the best interests of the Company,
and, with respect to any criminal action or Proceeding, if he had no reasonable cause to believe
his conduct was unlawful. The termination of any Proceeding, or any claim, issue or matter in such
a Proceeding by reason of settlement, judgment, order or otherwise, shall be deemed to be a
successful result as to such Proceeding, claim, issue or matter, so long as there has been no
finding (either adjudicated or pursuant to Section 6(c) below) that Indemnitee (i) did not
act in good faith, or (ii) did not act in a manner reasonably believed to be in, or not opposed to,
the best interests of the Company, or (iii) with respect to any criminal Proceeding, had reasonable
cause to believe his conduct was unlawful.

     (b) Derivative Actions. If the Indemnitee was or is a party or is threatened to be
made a party to any Proceeding by or in the right of the Company to procure a judgment in its favor
by reason of the fact that he is or was an Agent of the Company, or by reason of anything done or
not done by him in any such capacity, the Company shall indemnify and hold harmless the Indemnitee
against any amounts paid in settlement of any such Proceeding and any and all Expenses, losses and
liabilities of any type whatsoever (including, but not limited to, judgments, damages, liabilities,
losses, fines, excise taxes, penalties and amounts paid in settlement) actually and reasonably
incurred by him in connection with the investigation, defense, settlement, or appeal of, or
otherwise related to such Proceeding, if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Company; except that no
indemnification under this subsection shall be made with respect to any claim, issue or matter as
to which such person has been finally adjudged to have been liable to the Company, unless and

-3-

 

only to the extent that the Court of Chancery of the State of Delaware or the court in which
such Proceeding was brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such Expenses as the court shall deem proper.

     (c) Scope of Indemnification. If the General Corporation Law of the State of Delaware
(the “Delaware Law”) or any other applicable law is amended after the date hereof to permit
the Company to indemnify Indemnitee for Expenses or liabilities, or to indemnify Indemnitee with
respect to any action or Proceeding, not contemplated by this Agreement, then this Agreement
(without any further action be either party hereto) shall automatically be deemed to be amended to
require that the Company indemnify Indemnitee to the fullest extent permitted by the Delaware Law.

     4. Advancement of Expenses. Subject to Sections 7(a) and (b) below,
the Company shall advance all Expenses actually and reasonably incurred by the Indemnitee in
connection with the investigation, defense, settlement or appeal of, or otherwise related to any
Proceeding to which the Indemnitee is a party or is threatened to be made a party by reason of the
fact that the Indemnitee is or was an Agent of the Company. Indemnitee hereby agrees to repay such
amounts advanced if it shall ultimately be determined pursuant to Section 6 below that the
Indemnitee is not entitled to be indemnified by the Company.

     5. Indemnification Procedures.

     (a) Notice by Indemnitee. Promptly after receipt by the Indemnitee of notice of the
commencement of or the threat of commencement of any Proceeding, the Indemnitee shall, if the
Indemnitee believes that indemnification with respect thereto may be sought from the Company under
this Agreement, provide written notice to the Company of the commencement or threat of commencement
thereof; provided that the failure to give such notice shall not impair Indemnitee’s rights
under this Agreement.

     (b) Notice to Insurer. If, at the time of the receipt of a notice of the commencement
of a Proceeding pursuant to Section 5(a) above, the Company has in effect an insurance
policy or policies providing directors’ and officers’ liability insurance, the Company shall give
prompt notice of the commencement of such Proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter take all necessary
or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable
as a result of such Proceeding in accordance with the terms of such policies.

     (c) Assumption of Defense. In the event the Company shall be obligated to pay the
Expenses of the Indemnitee with respect to any Proceeding, the Company shall be entitled to assume
the defense of such Proceeding, with counsel of its choosing, upon the delivery to the Indemnitee
of written notice of its election to do so, which written notice shall be delivered within ten (10)
calendar days after receipt of written notice of the Proceeding pursuant to Section 5(a)
above. After delivery of such notice, the Company will not be liable to the Indemnitee under this
Agreement for any fees and Expenses of counsel which are subsequently incurred by the Indemnitee
with respect to the same Proceeding; provided, however, that the Indemnitee shall
have the right to employ his counsel in any such Proceeding at the Indemnitee’s

-4-

 

expense; and provided further, that if (i) the employment of counsel by the
Indemnitee has been previously authorized by the Company, or (ii) the Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the Company and the
Indemnitee in the conduct of any such defense or that Indemnitee may have separate defenses or
counterclaims to assert with respect to any issue which may not be consistent with the position of
other defendants in such Proceeding, or (iii) the Company shall not, in fact, have employed counsel
to assume the defense of such Proceeding in a timely manner, then, in any such case, the fees and
Expenses of Indemnitee’s counsel shall be at the expense of the Company. In addition, if the
Company fails to comply with any of its obligations under this Agreement or in the event that the
Company or any other person takes any action to declare this Agreement void or unenforceable, or
institutes any action, suit or Proceeding to deny or to recover from Indemnitee the benefits
intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel
of Indemnitee’s choice, at the expense of the Company, to represent Indemnitee in connection with
any such matter. The Company shall not, without the prior written consent of Indemnitee, consent
to the entry of any judgment against Indemnitee or enter into any settlement or compromise which
(i) includes an admission of fault of Indemnitee or (ii) does not include, as an unconditional term
thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which
release shall be in form and substance reasonably satisfactory to Indemnitee. This Section
5(c) shall not apply to a Proceeding brought by Indemnitee under Section 6 below or
pursuant to Section 7(a) or (b) below.

     (d) Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee.
Indemnitee shall execute all documents required and shall do everything that may be necessary to
secure such rights, including the execution of such documents necessary to enable the Company to
effectively bring suit to enforce such rights.

     (e) Cooperation by Indemnitee. Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within Indemnitee’s power.

     6. Determination of Right to Indemnification.

     (a) Successful Proceeding. To the extent the Indemnitee has been successful, on the
merits or otherwise, in the defense of any Proceeding referred to in Section 3 above, the
Company shall indemnify the Indemnitee against any and all Expenses actually and reasonably
incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding
but is successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Company shall indemnify Indemnitee against any and all Expenses
actually and reasonably incurred by or for him in connection with each successfully resolved claim,
issue or matter.

     (b) Other Proceeding. In the event that Section 6(a) above is inapplicable,
or applicable only in part, the Company shall nevertheless indemnify the Indemnitee unless it is
determined in a form described below that the Indemnitee has not met the applicable standard of
conduct set forth in Section 3 above, if any, which entitles Indemnitee to such
indemnification.

-5-

 

     (c) Forum in Event of Dispute. The Indemnitee shall be entitled to select the forum
in which the validity of the Company’s claim under Section 6(b) hereof that the Indemnitee
is not entitled to indemnification will be heard, from among the following (subject to provisions
of applicable law):

     (i) by a majority vote of the directors of the Board who are not parties to such
Proceeding, even though less than a quorum; or

     (ii) by a committee of such directors designated by majority vote of such directors,
even though less than a quorum; or

     (iii) if there are no such directors, or if such directors so direct, by independent
legal counsel in a written opinion; or

     (iv) by the stockholders.

     (d) Submission of Company’s Claim. As soon as practicable, and in no event later than
thirty (30) days after written notice of the Indemnitee’s choice of forum pursuant to Section
6(c) above, the Company shall, at its own expense, submit to the selected forum in such manner
as the Indemnitee or the Indemnitee’s counsel may reasonably request, its claim that the Indemnitee
is not entitled to indemnification. The Company shall act in the utmost good faith to assure the
Indemnitee a complete opportunity to defend against such claim.

     (e) Appeal to Court. Notwithstanding a determination by any forum listed in
Section 6(c) above that Indemnitee is not entitled to indemnification with respect to a
specific Proceeding, the Indemnitee shall have the right to apply to the court in which that
Proceeding is or was pending or any other court of competent jurisdiction, for the purpose of
enforcing the Indemnitee’s right to indemnification pursuant to this Agreement.

     (f) Indemnity for Expenses in Enforcement of Agreement. Notwithstanding any other
provision in this Agreement to the contrary, the Company shall indemnify the Indemnitee against all
Expenses incurred by the Indemnitee in connection with any hearing or Proceeding under this
Section 6 involving the Indemnitee and against all Expenses incurred by the Indemnitee in
connection with any other Proceeding between the Company and the Indemnitee involving the
interpretation or enforcement of the rights of the Indemnitee under this Agreement unless a court
of competent jurisdiction finds that the claims and/or defenses of the Indemnitee in any such
Proceeding was frivolous or made in bad faith.

     (g) Effect of Certain Resolutions. Neither the settlement or termination of any
Proceeding nor the failure of the Company to award indemnification or to determine that
indemnification is payable shall create a presumption that Indemnitee is not entitled to
indemnification hereunder. In addition, the termination of any Proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent shall
not create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company or, with respect
to any criminal Proceeding, had reasonable cause to believe that Indemnitee’s action was unlawful.

-6-

 

     (h) Failure To Act Not a Defense. The failure of the Company (including its Board of
Directors or any committee thereof, independent legal counsel, or stockholders) to make a
determination concerning the permissibility of indemnification hereunder or the advancement of
Expenses under this Agreement shall not be a defense in any action brought under Section 6
above, and shall not create a presumption that such indemnification or advancement is not
permissible.

     7. Exceptions.

     (a) Excluded Action or Omissions. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated to indemnify or advance Expenses to Indemnitee
with respect to Proceedings or claims arising out of acts, omissions or transactions for which
Indemnitee is prohibited from receiving indemnification under applicable law.

     (b) Claims Initiated by Indemnitee. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to
indemnify or advance Expenses to the Indemnitee with respect to Proceedings or claims initiated or
brought voluntarily by the Indemnitee and not by way of defense or counterclaims asserted by
Indemnitee in any Proceeding brought against Indemnitee, except with respect to Proceedings brought
to establish or enforce a right to indemnification under this Agreement or any other statute or law
or otherwise as required under the General Corporation Law of the State of Delaware, but such
indemnification or advancement of Expenses may be provided by the Company in specific cases if the
Board finds it to be appropriate.

     (c) Lack of Good Faith. Any other provision herein to the contrary notwithstanding,
the Company shall not be obligated pursuant to the terms of this Agreement to indemnify the
Indemnitee for any Expenses incurred by the Indemnitee with respect to any Proceeding instituted by
the Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction
determines that each of the material assertions made by the Indemnitee in such Proceeding was
frivolous or made in bad faith.

     (d) Unauthorized Settlements. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to
indemnify the Indemnitee for any amount paid in settlement of a Proceeding effected without the
prior written consent of the Company. The Company agrees not to unreasonably withhold its consent
to any settlement.

     (e) No Duplicative Payment. The Company shall not be liable under this Agreement to
make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee
has otherwise actually received such payment under any insurance policy, contract, agreement or
otherwise.

     8. Non-exclusivity. The provisions for indemnification and advancement of Expenses
set forth in this Agreement shall not be deemed exclusive of any other rights which the Indemnitee
may have under any provision of law, the Certificate of Incorporation or Amended and Restated
Bylaws, the vote of the Company’s stockholders or disinterested directors, other agreements, or
otherwise, both as to action in his official

-7-

 

capacity and as to action in another capacity while occupying a position as an Agent of the
Company.

     9. Interpretation of Agreement; Scope. It is understood that the parties hereto
intend this Agreement to be interpreted and enforced so as to provide indemnification to the
Indemnitee to the fullest extent now or hereafter permitted by applicable law. The benefits of
this Agreement shall inure to the Indemnitee both with respect to acts done or not done by him both
before and after this date.

     10. Burden of Proof. In making a determination with respect to entitlement to
indemnification hereunder, the person or persons or entity making such determination shall presume
that Indemnitee is entitled to indemnification under this Agreement, and the Company shall have the
burden of proof to overcome that presumption in connection with the making by any person, persons
or entity of any determination contrary to that presumption.

     11. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of the Agreement (including, without limitation, all
portions of any paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, all portions of any paragraph of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable and to give effect to Section 9
hereof.

     12. Modification and Waiver. Except as contemplated by Section 3(c), no
supplement, modification or amendment of this Agreement shall be binding unless executed in writing
by all parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such
waiver constitute a continuing waiver.

     13. Survival, Successors and Assigns. The Indemnitee’s rights under this Agreement
shall continue after the Indemnitee has ceased acting as an Agent of the Company. The terms of
this Agreement shall be binding on and inure to the benefit of the Company and its successors and
assigns and shall be binding on and inure to the benefit of Indemnitee and Indemnitee’s heirs,
executors and administrators.

     14. Gender. The masculine, feminine or neuter pronouns used herein shall be
interpreted without regard to gender, and the use of the singular or plural shall be deemed to
include the other whenever the context so requires.

     15. Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and received
by the party addressee or (ii) if mailed by certified or registered mail with postage prepaid, on
the third business day after the mailing date. All notice to either party will be sent to the
applicable address below, or as subsequently modified by written notice.

-8-

 

     If to the Company:

	 	 	 
	

	 	Coinmach Service Corp.
	

	 	303 Sunnyside Blvd., Suite 70
	

	 	Plainview, NY 11803
	

	 	Attention: Robert M. Doyle

     If to Indemnitee, at such Indemnitee’s primary address listed in the records of the Company.

     16. Governing Law. This Agreement, and all rights, remedies, liabilities, powers and
duties of the parties to this Agreement, shall be governed exclusively by and construed according
to the laws of the State of Delaware without regard to principles of conflicts of laws.

     17. Consent to Jurisdiction. The Company and the Indemnitee each hereby irrevocably
consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection
with any action or Proceeding which arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be brought only in the state courts of the State of
Delaware.

     18. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all such counterparts shall together constitute one and
the same instrument.

-9-

 

     The parties hereto have entered into this Indemnity Agreement effective as of the date first
above written.

	 	 	 	 	 
	 	 	COINMACH SERVICE CORP.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Stephen R. Kerrigan
	

	 	 	 	 
	

	 	Title:
	 	Chief Executive Officer
	 
	 	 	 	 
	

	 	INDEMNITEE:
	 	/s/ Robert M. Doyle
	

	 	 	 	 

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INDEMNITY AGREEMENT

     This Indemnity Agreement, dated as of November 24, 2004 (the “Agreement”) is made by
and between Coinmach Service Corp., a Delaware corporation (the “Company”) and Bruce V.
Rauner, (the “Indemnitee”).

RECITALS

     A. The Company is aware that competent and experienced persons are increasingly reluctant to
serve as directors or officers of corporations unless they are protected by adequate
indemnification, due to increased exposure to litigation costs and risk resulting from their
service to such corporations, and due to the fact that the exposure may bear no reasonable
relationship to the compensation of such directors and officers;

     B. The statutes and judicial decisions regarding the duties of directors and officers are
often difficult to apply, ambiguous, or conflicting, and therefore fail to provide such directors
and officers with adequate, reliable knowledge of legal risks to which they are exposed or
information regarding the proper course of action to take;

     C. Plaintiffs often seek damages in such large amounts and the costs of litigation may be so
great (whether or not the case is meritorious), that the defense and/or settlement of such
litigation may be beyond the personal resources of directors and officers;

     D. The Board of Directors of the Company (the “Board”) has concluded that, to retain
and attract talented and experienced individuals to serve as officers and directors of the Company
and to encourage such individuals to make the business decisions necessary or appropriate for the
success of the Company and its Subsidiaries (as defined in Section 1 below), it is
necessary for the Company to contractually indemnify its directors and certain of its officers, and
certain of the directors and officers of its Subsidiaries, and to assume for itself maximum
permissible liability for Expenses, losses, liabilities and damages in connection with claims
against such officers and directors relating to their service in such capacities, and has further
concluded that the failure to provide such contractual indemnification could result in significant
harm to the Company and its Subsidiaries and the Company’s stockholders;

     E. The provisions of the Amended and Restated Certificate of Incorporation of the Company (the
“Certificate of Incorporation”) specifically state that the rights to indemnification and
payment of expenses described therein are not exclusive, and thereby contemplate that contracts
with respect to indemnification and payment of Expenses by the Company and similar obligations of
the Company may be entered into by and between the Company and persons entitled to such rights
described in the Certificate of Incorporation; and

     F. The Company desires the Indemnitee to serve or continue to serve as a director or officer
of the Company and/or one or more of its Subsidiaries without undue concern for claims for damages
arising out of or related to such services to the Company and/or one or more of its Subsidiaries.

 

 

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

     1. Definitions. For the purposes of this Agreement, the following terms shall have
the meanings set forth below:

     (a) Agent. “Agent” means any person who (i) is or was a director, officer,
employee, or other agent of the Company or a Subsidiary of the Company, (ii) is or was
serving at the request of, for the convenience of, or to represent the “interest of the
Company” or a Subsidiary of the Company as a director, officer, trustee, partner, employee,
fiduciary or agent of another foreign or domestic corporation, partnership, limited
liability company, joint venture, trust, foundation, association, organization or other
legal entity or enterprise or (iii) is or was serving in any capacity with respect to any
employee, fiduciary benefits plans of the Company or any Subsidiary. For purposes of
subsection (ii) of this Section 1(a), if Indemnitee is serving or has served as a
director, officer, trustee, partner, employee, fiduciary or agent of a Subsidiary,
Indemnitee shall be deemed to be serving at the request of the Company.

     (b) Controlled. “Controlled” means subject to the power to exercise a
controlling influence over the management or policies of a corporation, partnership, joint
venture, trust or other entity.

     (c) Expenses. “Expenses” includes all direct and indirect costs, fees and
expenses of any type or nature whatsoever (including, without limitation, attorneys’ fees
and related disbursements and retainers, other out-of-pocket costs such as fees and
disbursements of expert witnesses, private investigators and professional advisors, court
costs, transcript costs, fees of experts, duplicating, printing and binding costs, telephone
and fax transmission charges, postage, delivery services, secretarial services and other
disbursements and Expenses and reasonable compensation for time spent by the Indemnitee for
which he is not otherwise compensated by the Company or any third party) actually and
reasonably incurred by the Indemnitee in connection with either the investigation, defense,
settlement or appeal of, or otherwise related to a Proceeding or establishing or enforcing a
right to indemnification under this Agreement or otherwise.

     (d) Proceeding. “Proceeding” means any threatened, pending, or completed
claim, action, suit, arbitration, alternate dispute resolution process, investigation,
administrative hearing, appeal or any other proceeding, whether civil, criminal,
administrative, investigative or any other type whatsoever, whether formal or informal,
including a proceeding initiated by Indemnitee pursuant to Section 6 of this
Agreement to enforce Indemnitee’s rights hereunder.

     (e) Subsidiary. “Subsidiary” means (i) any corporation of which 50% or more of
the outstanding voting securities are owned directly or indirectly by the Company, or which
is otherwise controlled by the Company, (ii) any partnership, joint venture, limited
liability company, trust or other entity of which 50% or more of the equity interest is
owned directly or indirectly by the Company, or which is otherwise controlled by the

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Company or (iii) the Company owns a general partner or managing member or similar
interest.

     2. Agreement To Serve. The Indemnitee agrees to serve and/or continue to serve as an
Agent of the Company, at its will (or under separate agreement, if such agreement exists), in the
capacity Indemnitee currently serves as an Agent of the Company; provided, however,
that nothing contained in this Agreement is intended to or shall (i) restrict the ability of the
Indemnitee to resign at any time and for any reason from any current or future position or
positions, (ii) create any right to continued employment of the Indemnitee in any current or future
position or positions, or (iii) restrict the ability of the Company to terminate the employment or
agency of Indemnitee at any time and for any reason (subject to compliance with the terms of any
employment or other applicable agreement to which the Company (or any of its Subsidiaries) and the
Indemnitee are parties).

     3. Indemnification as Agent.

     (a) Third Party Actions. If the Indemnitee was or is a party or is threatened to be
made a party to any Proceeding (other than an action by or in the right of the Company) by reason
of the fact that he is or was an Agent of the Company, or by reason of anything done or not done by
him in any such capacity or otherwise at the request of the Company or any of its officers,
directors, or stockholders, the Company shall indemnify and hold harmless the Indemnitee against
any and all Expenses, losses and liabilities of any type whatsoever (including, but not limited to,
judgments, damages, liabilities, losses, fines, excise taxes, penalties and amounts paid in
settlement) actually and reasonably incurred by him in connection with the investigation, defense,
settlement or appeal of, or otherwise related to such Proceeding, if he acted in good faith and in
a manner he reasonably believed to be in, or not opposed to, the best interests of the Company,
and, with respect to any criminal action or Proceeding, if he had no reasonable cause to believe
his conduct was unlawful. The termination of any Proceeding, or any claim, issue or matter in such
a Proceeding by reason of settlement, judgment, order or otherwise, shall be deemed to be a
successful result as to such Proceeding, claim, issue or matter, so long as there has been no
finding (either adjudicated or pursuant to Section 6(c) below) that Indemnitee (i) did not
act in good faith, or (ii) did not act in a manner reasonably believed to be in, or not opposed to,
the best interests of the Company, or (iii) with respect to any criminal Proceeding, had reasonable
cause to believe his conduct was unlawful.

     (b) Derivative Actions. If the Indemnitee was or is a party or is threatened to be
made a party to any Proceeding by or in the right of the Company to procure a judgment in its favor
by reason of the fact that he is or was an Agent of the Company, or by reason of anything done or
not done by him in any such capacity, the Company shall indemnify and hold harmless the Indemnitee
against any amounts paid in settlement of any such Proceeding and any and all Expenses, losses and
liabilities of any type whatsoever (including, but not limited to, judgments, damages, liabilities,
losses, fines, excise taxes, penalties and amounts paid in settlement) actually and reasonably
incurred by him in connection with the investigation, defense, settlement, or appeal of, or
otherwise related to such Proceeding, if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Company; except that no
indemnification under this subsection shall be made with respect to any claim, issue or matter as
to which such person has been finally adjudged to have been liable to the Company, unless and

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only to the extent that the Court of Chancery of the State of Delaware or the court in which
such Proceeding was brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such Expenses as the court shall deem proper.

     (c) Scope of Indemnification. If the General Corporation Law of the State of Delaware
(the “Delaware Law”) or any other applicable law is amended after the date hereof to permit
the Company to indemnify Indemnitee for Expenses or liabilities, or to indemnify Indemnitee with
respect to any action or Proceeding, not contemplated by this Agreement, then this Agreement
(without any further action be either party hereto) shall automatically be deemed to be amended to
require that the Company indemnify Indemnitee to the fullest extent permitted by the Delaware Law.

     4. Advancement of Expenses. Subject to Sections 7(a) and (b) below,
the Company shall advance all Expenses actually and reasonably incurred by the Indemnitee in
connection with the investigation, defense, settlement or appeal of, or otherwise related to any
Proceeding to which the Indemnitee is a party or is threatened to be made a party by reason of the
fact that the Indemnitee is or was an Agent of the Company. Indemnitee hereby agrees to repay such
amounts advanced if it shall ultimately be determined pursuant to Section 6 below that the
Indemnitee is not entitled to be indemnified by the Company.

     5. Indemnification Procedures.

     (a) Notice by Indemnitee. Promptly after receipt by the Indemnitee of notice of the
commencement of or the threat of commencement of any Proceeding, the Indemnitee shall, if the
Indemnitee believes that indemnification with respect thereto may be sought from the Company under
this Agreement, provide written notice to the Company of the commencement or threat of commencement
thereof; provided that the failure to give such notice shall not impair Indemnitee’s rights
under this Agreement.

     (b) Notice to Insurer. If, at the time of the receipt of a notice of the commencement
of a Proceeding pursuant to Section 5(a) above, the Company has in effect an insurance
policy or policies providing directors’ and officers’ liability insurance, the Company shall give
prompt notice of the commencement of such Proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter take all necessary
or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable
as a result of such Proceeding in accordance with the terms of such policies.

     (c) Assumption of Defense. In the event the Company shall be obligated to pay the
Expenses of the Indemnitee with respect to any Proceeding, the Company shall be entitled to assume
the defense of such Proceeding, with counsel of its choosing, upon the delivery to the Indemnitee
of written notice of its election to do so, which written notice shall be delivered within ten (10)
calendar days after receipt of written notice of the Proceeding pursuant to Section 5(a)
above. After delivery of such notice, the Company will not be liable to the Indemnitee under this
Agreement for any fees and Expenses of counsel which are subsequently incurred by the Indemnitee
with respect to the same Proceeding; provided, however, that the Indemnitee shall
have the right to employ his counsel in any such Proceeding at the Indemnitee’s

-4-

 

expense; and provided further, that if (i) the employment of counsel by the
Indemnitee has been previously authorized by the Company, or (ii) the Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the Company and the
Indemnitee in the conduct of any such defense or that Indemnitee may have separate defenses or
counterclaims to assert with respect to any issue which may not be consistent with the position of
other defendants in such Proceeding, or (iii) the Company shall not, in fact, have employed counsel
to assume the defense of such Proceeding in a timely manner, then, in any such case, the fees and
Expenses of Indemnitee’s counsel shall be at the expense of the Company. In addition, if the
Company fails to comply with any of its obligations under this Agreement or in the event that the
Company or any other person takes any action to declare this Agreement void or unenforceable, or
institutes any action, suit or Proceeding to deny or to recover from Indemnitee the benefits
intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel
of Indemnitee’s choice, at the expense of the Company, to represent Indemnitee in connection with
any such matter. The Company shall not, without the prior written consent of Indemnitee, consent
to the entry of any judgment against Indemnitee or enter into any settlement or compromise which
(i) includes an admission of fault of Indemnitee or (ii) does not include, as an unconditional term
thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which
release shall be in form and substance reasonably satisfactory to Indemnitee. This Section
5(c) shall not apply to a Proceeding brought by Indemnitee under Section 6 below or
pursuant to Section 7(a) or (b) below.

     (d) Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee.
Indemnitee shall execute all documents required and shall do everything that may be necessary to
secure such rights, including the execution of such documents necessary to enable the Company to
effectively bring suit to enforce such rights.

     (e) Cooperation by Indemnitee. Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within Indemnitee’s power.

     6. Determination of Right to Indemnification.

     (a) Successful Proceeding. To the extent the Indemnitee has been successful, on the
merits or otherwise, in the defense of any Proceeding referred to in Section 3 above, the
Company shall indemnify the Indemnitee against any and all Expenses actually and reasonably
incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding
but is successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Company shall indemnify Indemnitee against any and all Expenses
actually and reasonably incurred by or for him in connection with each successfully resolved claim,
issue or matter.

     (b) Other Proceeding. In the event that Section 6(a) above is inapplicable,
or applicable only in part, the Company shall nevertheless indemnify the Indemnitee unless it is
determined in a form described below that the Indemnitee has not met the applicable standard of
conduct set forth in Section 3 above, if any, which entitles Indemnitee to such
indemnification.

-5-

 

     (c) Forum in Event of Dispute. The Indemnitee shall be entitled to select the forum
in which the validity of the Company’s claim under Section 6(b) hereof that the Indemnitee
is not entitled to indemnification will be heard, from among the following (subject to provisions
of applicable law):

     (i) by a majority vote of the directors of the Board who are not parties to such
Proceeding, even though less than a quorum; or

     (ii) by a committee of such directors designated by majority vote of such directors,
even though less than a quorum; or

     (iii) if there are no such directors, or if such directors so direct, by independent
legal counsel in a written opinion; or

     (iv) by the stockholders.

     (d) Submission of Company’s Claim. As soon as practicable, and in no event later than
thirty (30) days after written notice of the Indemnitee’s choice of forum pursuant to Section
6(c) above, the Company shall, at its own expense, submit to the selected forum in such manner
as the Indemnitee or the Indemnitee’s counsel may reasonably request, its claim that the Indemnitee
is not entitled to indemnification. The Company shall act in the utmost good faith to assure the
Indemnitee a complete opportunity to defend against such claim.

     (e) Appeal to Court. Notwithstanding a determination by any forum listed in
Section 6(c) above that Indemnitee is not entitled to indemnification with respect to a
specific Proceeding, the Indemnitee shall have the right to apply to the court in which that
Proceeding is or was pending or any other court of competent jurisdiction, for the purpose of
enforcing the Indemnitee’s right to indemnification pursuant to this Agreement.

     (f) Indemnity for Expenses in Enforcement of Agreement. Notwithstanding any other
provision in this Agreement to the contrary, the Company shall indemnify the Indemnitee against all
Expenses incurred by the Indemnitee in connection with any hearing or Proceeding under this
Section 6 involving the Indemnitee and against all Expenses incurred by the Indemnitee in
connection with any other Proceeding between the Company and the Indemnitee involving the
interpretation or enforcement of the rights of the Indemnitee under this Agreement unless a court
of competent jurisdiction finds that the claims and/or defenses of the Indemnitee in any such
Proceeding was frivolous or made in bad faith.

     (g) Effect of Certain Resolutions. Neither the settlement or termination of any
Proceeding nor the failure of the Company to award indemnification or to determine that
indemnification is payable shall create a presumption that Indemnitee is not entitled to
indemnification hereunder. In addition, the termination of any Proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent shall
not create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company or, with respect
to any criminal Proceeding, had reasonable cause to believe that Indemnitee’s action was unlawful.

-6-

 

     (h) Failure To Act Not a Defense. The failure of the Company (including its Board of
Directors or any committee thereof, independent legal counsel, or stockholders) to make a
determination concerning the permissibility of indemnification hereunder or the advancement of
Expenses under this Agreement shall not be a defense in any action brought under Section 6
above, and shall not create a presumption that such indemnification or advancement is not
permissible.

     7. Exceptions.

     (a) Excluded Action or Omissions. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated to indemnify or advance Expenses to Indemnitee
with respect to Proceedings or claims arising out of acts, omissions or transactions for which
Indemnitee is prohibited from receiving indemnification under applicable law.

     (b) Claims Initiated by Indemnitee. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to
indemnify or advance Expenses to the Indemnitee with respect to Proceedings or claims initiated or
brought voluntarily by the Indemnitee and not by way of defense or counterclaims asserted by
Indemnitee in any Proceeding brought against Indemnitee, except with respect to Proceedings brought
to establish or enforce a right to indemnification under this Agreement or any other statute or law
or otherwise as required under the General Corporation Law of the State of Delaware, but such
indemnification or advancement of Expenses may be provided by the Company in specific cases if the
Board finds it to be appropriate.

     (c) Lack of Good Faith. Any other provision herein to the contrary notwithstanding,
the Company shall not be obligated pursuant to the terms of this Agreement to indemnify the
Indemnitee for any Expenses incurred by the Indemnitee with respect to any Proceeding instituted by
the Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction
determines that each of the material assertions made by the Indemnitee in such Proceeding was
frivolous or made in bad faith.

     (d) Unauthorized Settlements. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to
indemnify the Indemnitee for any amount paid in settlement of a Proceeding effected without the
prior written consent of the Company. The Company agrees not to unreasonably withhold its consent
to any settlement.

     (e) No Duplicative Payment. The Company shall not be liable under this Agreement to
make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee
has otherwise actually received such payment under any insurance policy, contract, agreement or
otherwise.

     8. Non-exclusivity. The provisions for indemnification and advancement of Expenses
set forth in this Agreement shall not be deemed exclusive of any other rights which the Indemnitee
may have under any provision of law, the Certificate of Incorporation or Amended and Restated
Bylaws, the vote of the Company’s stockholders or disinterested directors, other agreements, or
otherwise, both as to action in his official

-7-

 

capacity and as to action in another capacity while occupying a position as an Agent of the
Company.

     9. Interpretation of Agreement; Scope. It is understood that the parties hereto
intend this Agreement to be interpreted and enforced so as to provide indemnification to the
Indemnitee to the fullest extent now or hereafter permitted by applicable law. The benefits of
this Agreement shall inure to the Indemnitee both with respect to acts done or not done by him both
before and after this date.

     10. Burden of Proof. In making a determination with respect to entitlement to
indemnification hereunder, the person or persons or entity making such determination shall presume
that Indemnitee is entitled to indemnification under this Agreement, and the Company shall have the
burden of proof to overcome that presumption in connection with the making by any person, persons
or entity of any determination contrary to that presumption.

     11. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of the Agreement (including, without limitation, all
portions of any paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, all portions of any paragraph of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable and to give effect to Section 9
hereof.

     12. Modification and Waiver. Except as contemplated by Section 3(c), no
supplement, modification or amendment of this Agreement shall be binding unless executed in writing
by all parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such
waiver constitute a continuing waiver.

     13. Survival, Successors and Assigns. The Indemnitee’s rights under this Agreement
shall continue after the Indemnitee has ceased acting as an Agent of the Company. The terms of
this Agreement shall be binding on and inure to the benefit of the Company and its successors and
assigns and shall be binding on and inure to the benefit of Indemnitee and Indemnitee’s heirs,
executors and administrators.

     14. Gender. The masculine, feminine or neuter pronouns used herein shall be
interpreted without regard to gender, and the use of the singular or plural shall be deemed to
include the other whenever the context so requires.

     15. Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and received
by the party addressee or (ii) if mailed by certified or registered mail with postage prepaid, on
the third business day after the mailing date. All notice to either party will be sent to the
applicable address below, or as subsequently modified by written notice.

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     If to the Company:

	 	 	 
	

	 	Coinmach Service Corp.
	

	 	303 Sunnyside Blvd., Suite 70
	

	 	Plainview, NY 11803
	

	 	Attention: Robert M. Doyle

     If to Indemnitee, at such Indemnitee’s primary address listed in the records of the Company.

     16. Governing Law. This Agreement, and all rights, remedies, liabilities, powers and
duties of the parties to this Agreement, shall be governed exclusively by and construed according
to the laws of the State of Delaware without regard to principles of conflicts of laws.

     17. Consent to Jurisdiction. The Company and the Indemnitee each hereby irrevocably
consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection
with any action or Proceeding which arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be brought only in the state courts of the State of
Delaware.

     18. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all such counterparts shall together constitute one and
the same instrument.

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     The parties hereto have entered into this Indemnity Agreement effective as of the date first
above written.

	 	 	 	 	 
	 	 	COINMACH SERVICE CORP.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Stephen R. Kerrigan
	

	 	 	 	 
	 
	 	 	 	 
	

	 	Title:
	 	Chief Executive Officer
	 
	 	 	 	 
	

	 	INDEMNITEE:
	 	/s/ Bruce V. Rauner
	

	 	 	 	 

-10-

 

INDEMNITY AGREEMENT

     This Indemnity Agreement, dated as of November 24, 2004 (the “Agreement”) is made by
and between Coinmach Service Corp., a Delaware corporation (the “Company”) and John R.
Scheessele, (the “Indemnitee”).

RECITALS

     A. The Company is aware that competent and experienced persons are increasingly reluctant to
serve as directors or officers of corporations unless they are protected by adequate
indemnification, due to increased exposure to litigation costs and risk resulting from their
service to such corporations, and due to the fact that the exposure may bear no reasonable
relationship to the compensation of such directors and officers;

     B. The statutes and judicial decisions regarding the duties of directors and officers are
often difficult to apply, ambiguous, or conflicting, and therefore fail to provide such directors
and officers with adequate, reliable knowledge of legal risks to which they are exposed or
information regarding the proper course of action to take;

     C. Plaintiffs often seek damages in such large amounts and the costs of litigation may be so
great (whether or not the case is meritorious), that the defense and/or settlement of such
litigation may be beyond the personal resources of directors and officers;

     D. The Board of Directors of the Company (the “Board”) has concluded that, to retain
and attract talented and experienced individuals to serve as officers and directors of the Company
and to encourage such individuals to make the business decisions necessary or appropriate for the
success of the Company and its Subsidiaries (as defined in Section 1 below), it is
necessary for the Company to contractually indemnify its directors and certain of its officers, and
certain of the directors and officers of its Subsidiaries, and to assume for itself maximum
permissible liability for Expenses, losses, liabilities and damages in connection with claims
against such officers and directors relating to their service in such capacities, and has further
concluded that the failure to provide such contractual indemnification could result in significant
harm to the Company and its Subsidiaries and the Company’s stockholders;

     E. The provisions of the Amended and Restated Certificate of Incorporation of the Company (the
“Certificate of Incorporation”) specifically state that the rights to indemnification and
payment of expenses described therein are not exclusive, and thereby contemplate that contracts
with respect to indemnification and payment of Expenses by the Company and similar obligations of
the Company may be entered into by and between the Company and persons entitled to such rights
described in the Certificate of Incorporation; and

     F. The Company desires the Indemnitee to serve or continue to serve as a director or officer
of the Company and/or one or more of its Subsidiaries without undue concern for claims for damages
arising out of or related to such services to the Company and/or one or more of its Subsidiaries.

 

 

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

     1. Definitions. For the purposes of this Agreement, the following terms shall have
the meanings set forth below:

     (a) Agent. “Agent” means any person who (i) is or was a director, officer,
employee, or other agent of the Company or a Subsidiary of the Company, (ii) is or was
serving at the request of, for the convenience of, or to represent the “interest of the
Company” or a Subsidiary of the Company as a director, officer, trustee, partner, employee,
fiduciary or agent of another foreign or domestic corporation, partnership, limited
liability company, joint venture, trust, foundation, association, organization or other
legal entity or enterprise or (iii) is or was serving in any capacity with respect to any
employee, fiduciary benefits plans of the Company or any Subsidiary. For purposes of
subsection (ii) of this Section 1(a), if Indemnitee is serving or has served as a
director, officer, trustee, partner, employee, fiduciary or agent of a Subsidiary,
Indemnitee shall be deemed to be serving at the request of the Company.

     (b) Controlled. “Controlled” means subject to the power to exercise a
controlling influence over the management or policies of a corporation, partnership, joint
venture, trust or other entity.

     (c) Expenses. “Expenses” includes all direct and indirect costs, fees and
expenses of any type or nature whatsoever (including, without limitation, attorneys’ fees
and related disbursements and retainers, other out-of-pocket costs such as fees and
disbursements of expert witnesses, private investigators and professional advisors, court
costs, transcript costs, fees of experts, duplicating, printing and binding costs, telephone
and fax transmission charges, postage, delivery services, secretarial services and other
disbursements and Expenses and reasonable compensation for time spent by the Indemnitee for
which he is not otherwise compensated by the Company or any third party) actually and
reasonably incurred by the Indemnitee in connection with either the investigation, defense,
settlement or appeal of, or otherwise related to a Proceeding or establishing or enforcing a
right to indemnification under this Agreement or otherwise.

     (d) Proceeding. “Proceeding” means any threatened, pending, or completed
claim, action, suit, arbitration, alternate dispute resolution process, investigation,
administrative hearing, appeal or any other proceeding, whether civil, criminal,
administrative, investigative or any other type whatsoever, whether formal or informal,
including a proceeding initiated by Indemnitee pursuant to Section 6 of this
Agreement to enforce Indemnitee’s rights hereunder.

     (e) Subsidiary. “Subsidiary” means (i) any corporation of which 50% or more of
the outstanding voting securities are owned directly or indirectly by the Company, or which
is otherwise controlled by the Company, (ii) any partnership, joint venture, limited
liability company, trust or other entity of which 50% or more of the equity interest is
owned directly or indirectly by the Company, or which is otherwise controlled by the

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Company or (iii) the Company owns a general partner or managing member or similar
interest.

     2. Agreement To Serve. The Indemnitee agrees to serve and/or continue to serve as an
Agent of the Company, at its will (or under separate agreement, if such agreement exists), in the
capacity Indemnitee currently serves as an Agent of the Company; provided, however,
that nothing contained in this Agreement is intended to or shall (i) restrict the ability of the
Indemnitee to resign at any time and for any reason from any current or future position or
positions, (ii) create any right to continued employment of the Indemnitee in any current or future
position or positions, or (iii) restrict the ability of the Company to terminate the employment or
agency of Indemnitee at any time and for any reason (subject to compliance with the terms of any
employment or other applicable agreement to which the Company (or any of its Subsidiaries) and the
Indemnitee are parties).

     3. Indemnification as Agent.

     (a) Third Party Actions. If the Indemnitee was or is a party or is threatened to be
made a party to any Proceeding (other than an action by or in the right of the Company) by reason
of the fact that he is or was an Agent of the Company, or by reason of anything done or not done by
him in any such capacity or otherwise at the request of the Company or any of its officers,
directors, or stockholders, the Company shall indemnify and hold harmless the Indemnitee against
any and all Expenses, losses and liabilities of any type whatsoever (including, but not limited to,
judgments, damages, liabilities, losses, fines, excise taxes, penalties and amounts paid in
settlement) actually and reasonably incurred by him in connection with the investigation, defense,
settlement or appeal of, or otherwise related to such Proceeding, if he acted in good faith and in
a manner he reasonably believed to be in, or not opposed to, the best interests of the Company,
and, with respect to any criminal action or Proceeding, if he had no reasonable cause to believe
his conduct was unlawful. The termination of any Proceeding, or any claim, issue or matter in such
a Proceeding by reason of settlement, judgment, order or otherwise, shall be deemed to be a
successful result as to such Proceeding, claim, issue or matter, so long as there has been no
finding (either adjudicated or pursuant to Section 6(c) below) that Indemnitee (i) did not
act in good faith, or (ii) did not act in a manner reasonably believed to be in, or not opposed to,
the best interests of the Company, or (iii) with respect to any criminal Proceeding, had reasonable
cause to believe his conduct was unlawful.

     (b) Derivative Actions. If the Indemnitee was or is a party or is threatened to be
made a party to any Proceeding by or in the right of the Company to procure a judgment in its favor
by reason of the fact that he is or was an Agent of the Company, or by reason of anything done or
not done by him in any such capacity, the Company shall indemnify and hold harmless the Indemnitee
against any amounts paid in settlement of any such Proceeding and any and all Expenses, losses and
liabilities of any type whatsoever (including, but not limited to, judgments, damages, liabilities,
losses, fines, excise taxes, penalties and amounts paid in settlement) actually and reasonably
incurred by him in connection with the investigation, defense, settlement, or appeal of, or
otherwise related to such Proceeding, if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Company; except that no
indemnification under this subsection shall be made with respect to any claim, issue or matter as
to which such person has been finally adjudged to have been liable to the Company, unless and

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only to the extent that the Court of Chancery of the State of Delaware or the court in which
such Proceeding was brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such Expenses as the court shall deem proper.

     (c) Scope of Indemnification. If the General Corporation Law of the State of Delaware
(the “Delaware Law”) or any other applicable law is amended after the date hereof to permit
the Company to indemnify Indemnitee for Expenses or liabilities, or to indemnify Indemnitee with
respect to any action or Proceeding, not contemplated by this Agreement, then this Agreement
(without any further action be either party hereto) shall automatically be deemed to be amended to
require that the Company indemnify Indemnitee to the fullest extent permitted by the Delaware Law.

     4. Advancement of Expenses. Subject to Sections 7(a) and (b) below,
the Company shall advance all Expenses actually and reasonably incurred by the Indemnitee in
connection with the investigation, defense, settlement or appeal of, or otherwise related to any
Proceeding to which the Indemnitee is a party or is threatened to be made a party by reason of the
fact that the Indemnitee is or was an Agent of the Company. Indemnitee hereby agrees to repay such
amounts advanced if it shall ultimately be determined pursuant to Section 6 below that the
Indemnitee is not entitled to be indemnified by the Company.

     5. Indemnification Procedures.

     (a) Notice by Indemnitee. Promptly after receipt by the Indemnitee of notice of the
commencement of or the threat of commencement of any Proceeding, the Indemnitee shall, if the
Indemnitee believes that indemnification with respect thereto may be sought from the Company under
this Agreement, provide written notice to the Company of the commencement or threat of commencement
thereof; provided that the failure to give such notice shall not impair Indemnitee’s rights
under this Agreement.

     (b) Notice to Insurer. If, at the time of the receipt of a notice of the commencement
of a Proceeding pursuant to Section 5(a) above, the Company has in effect an insurance
policy or policies providing directors’ and officers’ liability insurance, the Company shall give
prompt notice of the commencement of such Proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter take all necessary
or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable
as a result of such Proceeding in accordance with the terms of such policies.

     (c) Assumption of Defense. In the event the Company shall be obligated to pay the
Expenses of the Indemnitee with respect to any Proceeding, the Company shall be entitled to assume
the defense of such Proceeding, with counsel of its choosing, upon the delivery to the Indemnitee
of written notice of its election to do so, which written notice shall be delivered within ten (10)
calendar days after receipt of written notice of the Proceeding pursuant to Section 5(a)
above. After delivery of such notice, the Company will not be liable to the Indemnitee under this
Agreement for any fees and Expenses of counsel which are subsequently incurred by the Indemnitee
with respect to the same Proceeding; provided, however, that the Indemnitee shall
have the right to employ his counsel in any such Proceeding at the Indemnitee’s

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expense; and provided further, that if (i) the employment of counsel by the
Indemnitee has been previously authorized by the Company, or (ii) the Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the Company and the
Indemnitee in the conduct of any such defense or that Indemnitee may have separate defenses or
counterclaims to assert with respect to any issue which may not be consistent with the position of
other defendants in such Proceeding, or (iii) the Company shall not, in fact, have employed counsel
to assume the defense of such Proceeding in a timely manner, then, in any such case, the fees and
Expenses of Indemnitee’s counsel shall be at the expense of the Company. In addition, if the
Company fails to comply with any of its obligations under this Agreement or in the event that the
Company or any other person takes any action to declare this Agreement void or unenforceable, or
institutes any action, suit or Proceeding to deny or to recover from Indemnitee the benefits
intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel
of Indemnitee’s choice, at the expense of the Company, to represent Indemnitee in connection with
any such matter. The Company shall not, without the prior written consent of Indemnitee, consent
to the entry of any judgment against Indemnitee or enter into any settlement or compromise which
(i) includes an admission of fault of Indemnitee or (ii) does not include, as an unconditional term
thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which
release shall be in form and substance reasonably satisfactory to Indemnitee. This Section
5(c) shall not apply to a Proceeding brought by Indemnitee under Section 6 below or
pursuant to Section 7(a) or (b) below.

     (d) Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee.
Indemnitee shall execute all documents required and shall do everything that may be necessary to
secure such rights, including the execution of such documents necessary to enable the Company to
effectively bring suit to enforce such rights.

     (e) Cooperation by Indemnitee. Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within Indemnitee’s power.

     6. Determination of Right to Indemnification.

     (a) Successful Proceeding. To the extent the Indemnitee has been successful, on the
merits or otherwise, in the defense of any Proceeding referred to in Section 3 above, the
Company shall indemnify the Indemnitee against any and all Expenses actually and reasonably
incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding
but is successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Company shall indemnify Indemnitee against any and all Expenses
actually and reasonably incurred by or for him in connection with each successfully resolved claim,
issue or matter.

     (b) Other Proceeding. In the event that Section 6(a) above is inapplicable,
or applicable only in part, the Company shall nevertheless indemnify the Indemnitee unless it is
determined in a form described below that the Indemnitee has not met the applicable standard of
conduct set forth in Section 3 above, if any, which entitles Indemnitee to such
indemnification.

-5-

 

     (c) Forum in Event of Dispute. The Indemnitee shall be entitled to select the forum
in which the validity of the Company’s claim under Section 6(b) hereof that the Indemnitee
is not entitled to indemnification will be heard, from among the following (subject to provisions
of applicable law):

     (i) by a majority vote of the directors of the Board who are not parties to such
Proceeding, even though less than a quorum; or

     (ii) by a committee of such directors designated by majority vote of such directors,
even though less than a quorum; or

     (iii) if there are no such directors, or if such directors so direct, by independent
legal counsel in a written opinion; or

     (iv) by the stockholders.

     (d) Submission of Company’s Claim. As soon as practicable, and in no event later than
thirty (30) days after written notice of the Indemnitee’s choice of forum pursuant to Section
6(c) above, the Company shall, at its own expense, submit to the selected forum in such manner
as the Indemnitee or the Indemnitee’s counsel may reasonably request, its claim that the Indemnitee
is not entitled to indemnification. The Company shall act in the utmost good faith to assure the
Indemnitee a complete opportunity to defend against such claim.

     (e) Appeal to Court. Notwithstanding a determination by any forum listed in
Section 6(c) above that Indemnitee is not entitled to indemnification with respect to a
specific Proceeding, the Indemnitee shall have the right to apply to the court in which that
Proceeding is or was pending or any other court of competent jurisdiction, for the purpose of
enforcing the Indemnitee’s right to indemnification pursuant to this Agreement.

     (f) Indemnity for Expenses in Enforcement of Agreement. Notwithstanding any other
provision in this Agreement to the contrary, the Company shall indemnify the Indemnitee against all
Expenses incurred by the Indemnitee in connection with any hearing or Proceeding under this
Section 6 involving the Indemnitee and against all Expenses incurred by the Indemnitee in
connection with any other Proceeding between the Company and the Indemnitee involving the
interpretation or enforcement of the rights of the Indemnitee under this Agreement unless a court
of competent jurisdiction finds that the claims and/or defenses of the Indemnitee in any such
Proceeding was frivolous or made in bad faith.

     (g) Effect of Certain Resolutions. Neither the settlement or termination of any
Proceeding nor the failure of the Company to award indemnification or to determine that
indemnification is payable shall create a presumption that Indemnitee is not entitled to
indemnification hereunder. In addition, the termination of any Proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent shall
not create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company or, with respect
to any criminal Proceeding, had reasonable cause to believe that Indemnitee’s action was unlawful.

-6-

 

     (h) Failure To Act Not a Defense. The failure of the Company (including its Board of
Directors or any committee thereof, independent legal counsel, or stockholders) to make a
determination concerning the permissibility of indemnification hereunder or the advancement of
Expenses under this Agreement shall not be a defense in any action brought under Section 6
above, and shall not create a presumption that such indemnification or advancement is not
permissible.

     7. Exceptions.

     (a) Excluded Action or Omissions. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated to indemnify or advance Expenses to Indemnitee
with respect to Proceedings or claims arising out of acts, omissions or transactions for which
Indemnitee is prohibited from receiving indemnification under applicable law.

     (b) Claims Initiated by Indemnitee. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to
indemnify or advance Expenses to the Indemnitee with respect to Proceedings or claims initiated or
brought voluntarily by the Indemnitee and not by way of defense or counterclaims asserted by
Indemnitee in any Proceeding brought against Indemnitee, except with respect to Proceedings brought
to establish or enforce a right to indemnification under this Agreement or any other statute or law
or otherwise as required under the General Corporation Law of the State of Delaware, but such
indemnification or advancement of Expenses may be provided by the Company in specific cases if the
Board finds it to be appropriate.

     (c) Lack of Good Faith. Any other provision herein to the contrary notwithstanding,
the Company shall not be obligated pursuant to the terms of this Agreement to indemnify the
Indemnitee for any Expenses incurred by the Indemnitee with respect to any Proceeding instituted by
the Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction
determines that each of the material assertions made by the Indemnitee in such Proceeding was
frivolous or made in bad faith.

     (d) Unauthorized Settlements. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to
indemnify the Indemnitee for any amount paid in settlement of a Proceeding effected without the
prior written consent of the Company. The Company agrees not to unreasonably withhold its consent
to any settlement.

     (e) No Duplicative Payment. The Company shall not be liable under this Agreement to
make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee
has otherwise actually received such payment under any insurance policy, contract, agreement or
otherwise.

     8. Non-exclusivity. The provisions for indemnification and advancement of Expenses
set forth in this Agreement shall not be deemed exclusive of any other rights which the Indemnitee
may have under any provision of law, the Certificate of Incorporation or Amended and Restated
Bylaws, the vote of the Company’s stockholders or disinterested directors, other agreements, or
otherwise, both as to action in his official

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capacity and as to action in another capacity while occupying a position as an Agent of the
Company.

     9. Interpretation of Agreement; Scope. It is understood that the parties hereto
intend this Agreement to be interpreted and enforced so as to provide indemnification to the
Indemnitee to the fullest extent now or hereafter permitted by applicable law. The benefits of
this Agreement shall inure to the Indemnitee both with respect to acts done or not done by him both
before and after this date.

     10. Burden of Proof. In making a determination with respect to entitlement to
indemnification hereunder, the person or persons or entity making such determination shall presume
that Indemnitee is entitled to indemnification under this Agreement, and the Company shall have the
burden of proof to overcome that presumption in connection with the making by any person, persons
or entity of any determination contrary to that presumption.

     11. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of the Agreement (including, without limitation, all
portions of any paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, all portions of any paragraph of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable and to give effect to Section 9
hereof.

     12. Modification and Waiver. Except as contemplated by Section 3(c), no
supplement, modification or amendment of this Agreement shall be binding unless executed in writing
by all parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such
waiver constitute a continuing waiver.

     13. Survival, Successors and Assigns. The Indemnitee’s rights under this Agreement
shall continue after the Indemnitee has ceased acting as an Agent of the Company. The terms of
this Agreement shall be binding on and inure to the benefit of the Company and its successors and
assigns and shall be binding on and inure to the benefit of Indemnitee and Indemnitee’s heirs,
executors and administrators.

     14. Gender. The masculine, feminine or neuter pronouns used herein shall be
interpreted without regard to gender, and the use of the singular or plural shall be deemed to
include the other whenever the context so requires.

     15. Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and received
by the party addressee or (ii) if mailed by certified or registered mail with postage prepaid, on
the third business day after the mailing date. All notice to either party will be sent to the
applicable address below, or as subsequently modified by written notice.

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     If to the Company:

	 	 	 
	

	 	Coinmach Service Corp.
	

	 	303 Sunnyside Blvd., Suite 70
	

	 	Plainview, NY 11803
	

	 	Attention: Robert M. Doyle

     If to Indemnitee, at such Indemnitee’s primary address listed in the records of the Company.

     16. Governing Law. This Agreement, and all rights, remedies, liabilities, powers and
duties of the parties to this Agreement, shall be governed exclusively by and construed according
to the laws of the State of Delaware without regard to principles of conflicts of laws.

     17. Consent to Jurisdiction. The Company and the Indemnitee each hereby irrevocably
consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection
with any action or Proceeding which arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be brought only in the state courts of the State of
Delaware.

     18. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all such counterparts shall together constitute one and
the same instrument.

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     The parties hereto have entered into this Indemnity Agreement effective as of the date first
above written.

	 	 	 	 	 
	 	 	COINMACH SERVICE CORP.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Stephen R. Kerrigan
	

	 	 	 	 
	 
	 	 	 	 
	

	 	Title:
	 	Chief Executive Officer
	 
	 	 	 	 
	

	 	INDEMNITEE:
	 	 /s/ John R. Scheessele
	

	 	 	 	 

-10-

 

INDEMNITY AGREEMENT

     This Indemnity Agreement, dated as of November 24, 2004 (the “Agreement”) is made by
and between Coinmach Service Corp., a Delaware corporation (the “Company”) and Stephen R.
Kerrigan, (the “Indemnitee”).

RECITALS

     A. The Company is aware that competent and experienced persons are increasingly reluctant to
serve as directors or officers of corporations unless they are protected by adequate
indemnification, due to increased exposure to litigation costs and risk resulting from their
service to such corporations, and due to the fact that the exposure may bear no reasonable
relationship to the compensation of such directors and officers;

     B. The statutes and judicial decisions regarding the duties of directors and officers are
often difficult to apply, ambiguous, or conflicting, and therefore fail to provide such directors
and officers with adequate, reliable knowledge of legal risks to which they are exposed or
information regarding the proper course of action to take;

     C. Plaintiffs often seek damages in such large amounts and the costs of litigation may be so
great (whether or not the case is meritorious), that the defense and/or settlement of such
litigation may be beyond the personal resources of directors and officers;

     D. The Board of Directors of the Company (the “Board”) has concluded that, to retain
and attract talented and experienced individuals to serve as officers and directors of the Company
and to encourage such individuals to make the business decisions necessary or appropriate for the
success of the Company and its Subsidiaries (as defined in Section 1 below), it is
necessary for the Company to contractually indemnify its directors and certain of its officers, and
certain of the directors and officers of its Subsidiaries, and to assume for itself maximum
permissible liability for Expenses, losses, liabilities and damages in connection with claims
against such officers and directors relating to their service in such capacities, and has further
concluded that the failure to provide such contractual indemnification could result in significant
harm to the Company and its Subsidiaries and the Company’s stockholders;

     E. The provisions of the Amended and Restated Certificate of Incorporation of the Company (the
“Certificate of Incorporation”) specifically state that the rights to indemnification and
payment of expenses described therein are not exclusive, and thereby contemplate that contracts
with respect to indemnification and payment of Expenses by the Company and similar obligations of
the Company may be entered into by and between the Company and persons entitled to such rights
described in the Certificate of Incorporation; and

     F. The Company desires the Indemnitee to serve or continue to serve as a director or officer
of the Company and/or one or more of its Subsidiaries without undue concern for claims for damages
arising out of or related to such services to the Company and/or one or more of its Subsidiaries.

 

 

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

     1. Definitions. For the purposes of this Agreement, the following terms shall have
the meanings set forth below:

     (a) Agent. “Agent” means any person who (i) is or was a director, officer,
employee, or other agent of the Company or a Subsidiary of the Company, (ii) is or was
serving at the request of, for the convenience of, or to represent the “interest of the
Company” or a Subsidiary of the Company as a director, officer, trustee, partner, employee,
fiduciary or agent of another foreign or domestic corporation, partnership, limited
liability company, joint venture, trust, foundation, association, organization or other
legal entity or enterprise or (iii) is or was serving in any capacity with respect to any
employee, fiduciary benefits plans of the Company or any Subsidiary. For purposes of
subsection (ii) of this Section 1(a), if Indemnitee is serving or has served as a
director, officer, trustee, partner, employee, fiduciary or agent of a Subsidiary,
Indemnitee shall be deemed to be serving at the request of the Company.

     (b) Controlled. “Controlled” means subject to the power to exercise a
controlling influence over the management or policies of a corporation, partnership, joint
venture, trust or other entity.

     (c) Expenses. “Expenses” includes all direct and indirect costs, fees and
expenses of any type or nature whatsoever (including, without limitation, attorneys’ fees
and related disbursements and retainers, other out-of-pocket costs such as fees and
disbursements of expert witnesses, private investigators and professional advisors, court
costs, transcript costs, fees of experts, duplicating, printing and binding costs, telephone
and fax transmission charges, postage, delivery services, secretarial services and other
disbursements and Expenses and reasonable compensation for time spent by the Indemnitee for
which he is not otherwise compensated by the Company or any third party) actually and
reasonably incurred by the Indemnitee in connection with either the investigation, defense,
settlement or appeal of, or otherwise related to a Proceeding or establishing or enforcing a
right to indemnification under this Agreement or otherwise.

     (d) Proceeding. “Proceeding” means any threatened, pending, or completed
claim, action, suit, arbitration, alternate dispute resolution process, investigation,
administrative hearing, appeal or any other proceeding, whether civil, criminal,
administrative, investigative or any other type whatsoever, whether formal or informal,
including a proceeding initiated by Indemnitee pursuant to Section 6 of this
Agreement to enforce Indemnitee’s rights hereunder.

     (e) Subsidiary. “Subsidiary” means (i) any corporation of which 50% or more of
the outstanding voting securities are owned directly or indirectly by the Company, or which
is otherwise controlled by the Company, (ii) any partnership, joint venture, limited
liability company, trust or other entity of which 50% or more of the equity interest is
owned directly or indirectly by the Company, or which is otherwise controlled by the

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Company or (iii) the Company owns a general partner or managing member or similar
interest.

     2. Agreement To Serve. The Indemnitee agrees to serve and/or continue to serve as an
Agent of the Company, at its will (or under separate agreement, if such agreement exists), in the
capacity Indemnitee currently serves as an Agent of the Company; provided, however,
that nothing contained in this Agreement is intended to or shall (i) restrict the ability of the
Indemnitee to resign at any time and for any reason from any current or future position or
positions, (ii) create any right to continued employment of the Indemnitee in any current or future
position or positions, or (iii) restrict the ability of the Company to terminate the employment or
agency of Indemnitee at any time and for any reason (subject to compliance with the terms of any
employment or other applicable agreement to which the Company (or any of its Subsidiaries) and the
Indemnitee are parties).

     3. Indemnification as Agent.

     (a) Third Party Actions. If the Indemnitee was or is a party or is threatened to be
made a party to any Proceeding (other than an action by or in the right of the Company) by reason
of the fact that he is or was an Agent of the Company, or by reason of anything done or not done by
him in any such capacity or otherwise at the request of the Company or any of its officers,
directors, or stockholders, the Company shall indemnify and hold harmless the Indemnitee against
any and all Expenses, losses and liabilities of any type whatsoever (including, but not limited to,
judgments, damages, liabilities, losses, fines, excise taxes, penalties and amounts paid in
settlement) actually and reasonably incurred by him in connection with the investigation, defense,
settlement or appeal of, or otherwise related to such Proceeding, if he acted in good faith and in
a manner he reasonably believed to be in, or not opposed to, the best interests of the Company,
and, with respect to any criminal action or Proceeding, if he had no reasonable cause to believe
his conduct was unlawful. The termination of any Proceeding, or any claim, issue or matter in such
a Proceeding by reason of settlement, judgment, order or otherwise, shall be deemed to be a
successful result as to such Proceeding, claim, issue or matter, so long as there has been no
finding (either adjudicated or pursuant to Section 6(c) below) that Indemnitee (i) did not
act in good faith, or (ii) did not act in a manner reasonably believed to be in, or not opposed to,
the best interests of the Company, or (iii) with respect to any criminal Proceeding, had reasonable
cause to believe his conduct was unlawful.

     (b) Derivative Actions. If the Indemnitee was or is a party or is threatened to be
made a party to any Proceeding by or in the right of the Company to procure a judgment in its favor
by reason of the fact that he is or was an Agent of the Company, or by reason of anything done or
not done by him in any such capacity, the Company shall indemnify and hold harmless the Indemnitee
against any amounts paid in settlement of any such Proceeding and any and all Expenses, losses and
liabilities of any type whatsoever (including, but not limited to, judgments, damages, liabilities,
losses, fines, excise taxes, penalties and amounts paid in settlement) actually and reasonably
incurred by him in connection with the investigation, defense, settlement, or appeal of, or
otherwise related to such Proceeding, if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Company; except that no
indemnification under this subsection shall be made with respect to any claim, issue or matter as
to which such person has been finally adjudged to have been liable to the Company, unless and

-3-

 

only to the extent that the Court of Chancery of the State of Delaware or the court in which
such Proceeding was brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such Expenses as the court shall deem proper.

     (c) Scope of Indemnification. If the General Corporation Law of the State of Delaware
(the “Delaware Law”) or any other applicable law is amended after the date hereof to permit
the Company to indemnify Indemnitee for Expenses or liabilities, or to indemnify Indemnitee with
respect to any action or Proceeding, not contemplated by this Agreement, then this Agreement
(without any further action be either party hereto) shall automatically be deemed to be amended to
require that the Company indemnify Indemnitee to the fullest extent permitted by the Delaware Law.

     4. Advancement of Expenses. Subject to Sections 7(a) and (b) below,
the Company shall advance all Expenses actually and reasonably incurred by the Indemnitee in
connection with the investigation, defense, settlement or appeal of, or otherwise related to any
Proceeding to which the Indemnitee is a party or is threatened to be made a party by reason of the
fact that the Indemnitee is or was an Agent of the Company. Indemnitee hereby agrees to repay such
amounts advanced if it shall ultimately be determined pursuant to Section 6 below that the
Indemnitee is not entitled to be indemnified by the Company.

     5. Indemnification Procedures.

     (a) Notice by Indemnitee. Promptly after receipt by the Indemnitee of notice of the
commencement of or the threat of commencement of any Proceeding, the Indemnitee shall, if the
Indemnitee believes that indemnification with respect thereto may be sought from the Company under
this Agreement, provide written notice to the Company of the commencement or threat of commencement
thereof; provided that the failure to give such notice shall not impair Indemnitee’s rights
under this Agreement.

     (b) Notice to Insurer. If, at the time of the receipt of a notice of the commencement
of a Proceeding pursuant to Section 5(a) above, the Company has in effect an insurance
policy or policies providing directors’ and officers’ liability insurance, the Company shall give
prompt notice of the commencement of such Proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter take all necessary
or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable
as a result of such Proceeding in accordance with the terms of such policies.

     (c) Assumption of Defense. In the event the Company shall be obligated to pay the
Expenses of the Indemnitee with respect to any Proceeding, the Company shall be entitled to assume
the defense of such Proceeding, with counsel of its choosing, upon the delivery to the Indemnitee
of written notice of its election to do so, which written notice shall be delivered within ten (10)
calendar days after receipt of written notice of the Proceeding pursuant to Section 5(a)
above. After delivery of such notice, the Company will not be liable to the Indemnitee under this
Agreement for any fees and Expenses of counsel which are subsequently incurred by the Indemnitee
with respect to the same Proceeding; provided, however, that the Indemnitee shall
have the right to employ his counsel in any such Proceeding at the Indemnitee’s

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expense; and provided further, that if (i) the employment of counsel by the
Indemnitee has been previously authorized by the Company, or (ii) the Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the Company and the
Indemnitee in the conduct of any such defense or that Indemnitee may have separate defenses or
counterclaims to assert with respect to any issue which may not be consistent with the position of
other defendants in such Proceeding, or (iii) the Company shall not, in fact, have employed counsel
to assume the defense of such Proceeding in a timely manner, then, in any such case, the fees and
Expenses of Indemnitee’s counsel shall be at the expense of the Company. In addition, if the
Company fails to comply with any of its obligations under this Agreement or in the event that the
Company or any other person takes any action to declare this Agreement void or unenforceable, or
institutes any action, suit or Proceeding to deny or to recover from Indemnitee the benefits
intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel
of Indemnitee’s choice, at the expense of the Company, to represent Indemnitee in connection with
any such matter. The Company shall not, without the prior written consent of Indemnitee, consent
to the entry of any judgment against Indemnitee or enter into any settlement or compromise which
(i) includes an admission of fault of Indemnitee or (ii) does not include, as an unconditional term
thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which
release shall be in form and substance reasonably satisfactory to Indemnitee. This Section
5(c) shall not apply to a Proceeding brought by Indemnitee under Section 6 below or
pursuant to Section 7(a) or (b) below.

     (d) Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee.
Indemnitee shall execute all documents required and shall do everything that may be necessary to
secure such rights, including the execution of such documents necessary to enable the Company to
effectively bring suit to enforce such rights.

     (e) Cooperation by Indemnitee. Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within Indemnitee’s power.

     6. Determination of Right to Indemnification.

     (a) Successful Proceeding. To the extent the Indemnitee has been successful, on the
merits or otherwise, in the defense of any Proceeding referred to in Section 3 above, the
Company shall indemnify the Indemnitee against any and all Expenses actually and reasonably
incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding
but is successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Company shall indemnify Indemnitee against any and all Expenses
actually and reasonably incurred by or for him in connection with each successfully resolved claim,
issue or matter.

     (b) Other Proceeding. In the event that Section 6(a) above is inapplicable,
or applicable only in part, the Company shall nevertheless indemnify the Indemnitee unless it is
determined in a form described below that the Indemnitee has not met the applicable standard of
conduct set forth in Section 3 above, if any, which entitles Indemnitee to such
indemnification.

-5-

 

     (c) Forum in Event of Dispute. The Indemnitee shall be entitled to select the forum
in which the validity of the Company’s claim under Section 6(b) hereof that the Indemnitee
is not entitled to indemnification will be heard, from among the following (subject to provisions
of applicable law):

     (i) by a majority vote of the directors of the Board who are not parties to such
Proceeding, even though less than a quorum; or

     (ii) by a committee of such directors designated by majority vote of such directors,
even though less than a quorum; or

     (iii) if there are no such directors, or if such directors so direct, by independent
legal counsel in a written opinion; or

     (iv) by the stockholders.

     (d) Submission of Company’s Claim. As soon as practicable, and in no event later than
thirty (30) days after written notice of the Indemnitee’s choice of forum pursuant to Section
6(c) above, the Company shall, at its own expense, submit to the selected forum in such manner
as the Indemnitee or the Indemnitee’s counsel may reasonably request, its claim that the Indemnitee
is not entitled to indemnification. The Company shall act in the utmost good faith to assure the
Indemnitee a complete opportunity to defend against such claim.

     (e) Appeal to Court. Notwithstanding a determination by any forum listed in
Section 6(c) above that Indemnitee is not entitled to indemnification with respect to a
specific Proceeding, the Indemnitee shall have the right to apply to the court in which that
Proceeding is or was pending or any other court of competent jurisdiction, for the purpose of
enforcing the Indemnitee’s right to indemnification pursuant to this Agreement.

     (f) Indemnity for Expenses in Enforcement of Agreement. Notwithstanding any other
provision in this Agreement to the contrary, the Company shall indemnify the Indemnitee against all
Expenses incurred by the Indemnitee in connection with any hearing or Proceeding under this
Section 6 involving the Indemnitee and against all Expenses incurred by the Indemnitee in
connection with any other Proceeding between the Company and the Indemnitee involving the
interpretation or enforcement of the rights of the Indemnitee under this Agreement unless a court
of competent jurisdiction finds that the claims and/or defenses of the Indemnitee in any such
Proceeding was frivolous or made in bad faith.

     (g) Effect of Certain Resolutions. Neither the settlement or termination of any
Proceeding nor the failure of the Company to award indemnification or to determine that
indemnification is payable shall create a presumption that Indemnitee is not entitled to
indemnification hereunder. In addition, the termination of any Proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent shall
not create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company or, with respect
to any criminal Proceeding, had reasonable cause to believe that Indemnitee’s action was unlawful.

-6-

 

     (h) Failure To Act Not a Defense. The failure of the Company (including its Board of
Directors or any committee thereof, independent legal counsel, or stockholders) to make a
determination concerning the permissibility of indemnification hereunder or the advancement of
Expenses under this Agreement shall not be a defense in any action brought under Section 6
above, and shall not create a presumption that such indemnification or advancement is not
permissible.

     7. Exceptions.

     (a) Excluded Action or Omissions. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated to indemnify or advance Expenses to Indemnitee
with respect to Proceedings or claims arising out of acts, omissions or transactions for which
Indemnitee is prohibited from receiving indemnification under applicable law.

     (b) Claims Initiated by Indemnitee. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to
indemnify or advance Expenses to the Indemnitee with respect to Proceedings or claims initiated or
brought voluntarily by the Indemnitee and not by way of defense or counterclaims asserted by
Indemnitee in any Proceeding brought against Indemnitee, except with respect to Proceedings brought
to establish or enforce a right to indemnification under this Agreement or any other statute or law
or otherwise as required under the General Corporation Law of the State of Delaware, but such
indemnification or advancement of Expenses may be provided by the Company in specific cases if the
Board finds it to be appropriate.

     (c) Lack of Good Faith. Any other provision herein to the contrary notwithstanding,
the Company shall not be obligated pursuant to the terms of this Agreement to indemnify the
Indemnitee for any Expenses incurred by the Indemnitee with respect to any Proceeding instituted by
the Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction
determines that each of the material assertions made by the Indemnitee in such Proceeding was
frivolous or made in bad faith.

     (d) Unauthorized Settlements. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to
indemnify the Indemnitee for any amount paid in settlement of a Proceeding effected without the
prior written consent of the Company. The Company agrees not to unreasonably withhold its consent
to any settlement.

     (e) No Duplicative Payment. The Company shall not be liable under this Agreement to
make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee
has otherwise actually received such payment under any insurance policy, contract, agreement or
otherwise.

     8. Non-exclusivity. The provisions for indemnification and advancement of Expenses
set forth in this Agreement shall not be deemed exclusive of any other rights which the Indemnitee
may have under any provision of law, the Certificate of Incorporation or Amended and Restated
Bylaws, the vote of the Company’s stockholders or disinterested directors, other agreements, or
otherwise, both as to action in his official

-7-

 

capacity and as to action in another capacity while occupying a position as an Agent of the
Company.

     9. Interpretation of Agreement; Scope. It is understood that the parties hereto
intend this Agreement to be interpreted and enforced so as to provide indemnification to the
Indemnitee to the fullest extent now or hereafter permitted by applicable law. The benefits of
this Agreement shall inure to the Indemnitee both with respect to acts done or not done by him both
before and after this date.

     10. Burden of Proof. In making a determination with respect to entitlement to
indemnification hereunder, the person or persons or entity making such determination shall presume
that Indemnitee is entitled to indemnification under this Agreement, and the Company shall have the
burden of proof to overcome that presumption in connection with the making by any person, persons
or entity of any determination contrary to that presumption.

     11. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of the Agreement (including, without limitation, all
portions of any paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, all portions of any paragraph of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable and to give effect to Section 9
hereof.

     12. Modification and Waiver. Except as contemplated by Section 3(c), no
supplement, modification or amendment of this Agreement shall be binding unless executed in writing
by all parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such
waiver constitute a continuing waiver.

     13. Survival, Successors and Assigns. The Indemnitee’s rights under this Agreement
shall continue after the Indemnitee has ceased acting as an Agent of the Company. The terms of
this Agreement shall be binding on and inure to the benefit of the Company and its successors and
assigns and shall be binding on and inure to the benefit of Indemnitee and Indemnitee’s heirs,
executors and administrators.

     14. Gender. The masculine, feminine or neuter pronouns used herein shall be
interpreted without regard to gender, and the use of the singular or plural shall be deemed to
include the other whenever the context so requires.

     15. Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and received
by the party addressee or (ii) if mailed by certified or registered mail with postage prepaid, on
the third business day after the mailing date. All notice to either party will be sent to the
applicable address below, or as subsequently modified by written notice.

-8-

 

     If to the Company:

	 	 	 
	

	 	Coinmach Service Corp.
	

	 	303 Sunnyside Blvd., Suite 70
	

	 	Plainview, NY 11803
	

	 	Attention: Robert M. Doyle

     If to Indemnitee, at such Indemnitee’s primary address listed in the records of the Company.

     16. Governing Law. This Agreement, and all rights, remedies, liabilities, powers and
duties of the parties to this Agreement, shall be governed exclusively by and construed according
to the laws of the State of Delaware without regard to principles of conflicts of laws.

     17. Consent to Jurisdiction. The Company and the Indemnitee each hereby irrevocably
consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection
with any action or Proceeding which arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be brought only in the state courts of the State of
Delaware.

     18. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all such counterparts shall together constitute one and
the same instrument.

-9-

 

     The parties hereto have entered into this Indemnity Agreement effective as of the date first
above written.

	 	 	 	 	 
	 	 	COINMACH SERVICE CORP.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Robert M. Doyle
	

	 	 	 	 
	 
	 	 	 	 
	

	 	Title:
	 	Chief Financial Officer, Senior Vice
President, Secretary and Treasurer
	 
	 	 	 	 
	

	 	INDEMNITEE:
	 	/s/ Stephen R. Kerrigan
	

	 	 	 	 

-10-

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