-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GUw4V0I/2MqYHQJMvgB7nfJsd/BqEcSf9EU9XSbgBedKlaxC/Oc99mgFiSTmB0OY uQvMZXeSHQrYnJM/jZHWnA== 0000950154-99-000102.txt : 19991207 0000950154-99-000102.hdr.sgml : 19991207 ACCESSION NUMBER: 0000950154-99-000102 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19991206 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARAMARK CORP CENTRAL INDEX KEY: 0000757523 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 232319139 STATE OF INCORPORATION: DE FISCAL YEAR END: 0927 FILING VALUES: FORM TYPE: 424B3 SEC ACT: SEC FILE NUMBER: 033-33329 FILM NUMBER: 99769333 BUSINESS ADDRESS: STREET 1: THE ARA TOWER STREET 2: 1101 MARKET ST CITY: PHILADELPHIA STATE: PA ZIP: 19107 BUSINESS PHONE: 2152383000 MAIL ADDRESS: STREET 1: ARA GROUP INC STREET 2: 1101 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19107 FORMER COMPANY: FORMER CONFORMED NAME: ARA GROUP INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: ARA HOLDING CO DATE OF NAME CHANGE: 19880515 424B3 1 [LOGO] ARAMARK PROSPECTUS ISPO 1999 ------------------------------------------------------- | For employees of | | ARAMARK CORPORATION | | and its subsidiaries who hold | | INSTALLMENT STOCK PURCHASE OPPORTUNITIES | | granted under the | | ARAMARK OWNERSHIP PROGRAM | ------------------------------------------------------- We are offering you an opportunity to participate in the ownership of ARAMARK through the purchase of ARAMARK stock. You can purchase shares of stock of ARAMARK by exercising purchase opportunities we grant you. The purchase price for these shares will equal the appraisal price for the stock at the time you receive the grant. You may pay for your shares by using one or more of five payment methods. We describe the eligibility requirements and the conditions for using each of these payment methods in this prospectus. Your ability to transfer stock that you purchase will be limited because ARAMARK's stock is not traded publicly and because you will be bound by the terms of a stockholders' agreement. This prospectus provides you with detailed information about stock purchase opportunities. In addition, you may obtain information about ARAMARK from documents that we file with the U.S. Securities and Exchange Commission. We encourage you to read this entire prospectus carefully. ---------------- SEE PAGE B-1 FOR FORMS AND INSTRUCTIONS. FORMS ARE ALSO AVAILABLE ON THE ARAMARK WEB SITE AT HTTP://WWW.ARAMARK.COM/STOCK ---------------- NEITHER THE U.S. SECURITIES AND EXCHANGE COMMISSION NOR ANY OTHER SECURITIES COMMISSION OR SIMILAR AUTHORITY OF ANY STATE OR COUNTRY HAS APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. ---------------- The date of this prospectus is December 1, 1999. You should not assume that the information contained in this prospectus is accurate as of any other date, and neither the delivery of this prospectus nor any sale made through its use shall create any implication to the contrary. This prospectus does not constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is not authorized, or in any jurisdiction in which ARAMARK is not qualified to make such an offer or solicitation, or to anyone to whom it is unlawful to make such offer or solicitation TABLE OF CONTENTS Where You Can Find More Information .................... 2 Prospectus Summary ..................................... 3 Frequently Asked Questions ............................. 4 The ARAMARK Ownership Program .......................... 26 Description of Equity Securities ....................... 27 Experts ................................................ 28 Documents Incorporated by Reference .................... 28 Annex A - Stockholders' Agreement ...................... A-1 Annex B - Exercise Forms and Instructions .............. B-1 WHERE YOU CAN FIND MORE INFORMATION We file annual, quarterly and special reports, proxy statements, and other information with the U.S. Securities and Exchange Commission. You may read and copy any reports, statements, or other information that we file at the SEC's public reference rooms in Washington, DC, New York, New York and Chicago, Illinois. Please call the SEC at 800-SEC-0330 for further information about the public reference rooms. Our SEC filings are also available to the public from commercial document retrieval services and at the web site maintained by the SEC at http://www.sec.gov. We have filed registration statements to register with the SEC the common stock to be issued when you exercise a purchase opportunity granted under the ARAMARK Ownership Program. As allowed by SEC rules, this prospectus does not contain all the information you can find in the registration statements or in exhibits or amendments to the registration statements. Upon your request, we will provide to you without charge a copy of any or all of the documents to which we have referred, other than exhibits to those documents. You should direct written requests to ARAMARK Shareholder Services Group at First Union National Bank, 123 South Broad Street, MCPA 1328, Philadelphia, PA USA 19109 or telephone requests to 888-96-OWNER (888-966-9637). If you have not received a copy of our most recent annual report on Form 10-K, or if you have any questions about the ARAMARK Ownership Program or would like to obtain further information, you should write the ARAMARK Shareholder Services Group at First Union National Bank, 123 South Broad Street, MCPA 1328, Philadelphia, PA USA 19109 or call 888-96-OWNER (888-966-9637). - ---------------------------------------------------------------------------- | | | EMPLOYEES BASED IN QUEBEC | | ---------------------------------------------------------------------- | | En signant le formulaire d'exercice d'option, je confirme mon | | souhait expres que tous les documents, certificts, avid et | | conventions directement ou indirectement, relies a l'acquisition | | de valeurs mobilieres d'ARAMARK (incluant le formulaire | | d'exercice d'option) et tous les documents qui y sont integres | | par renvoi (incluant la convention entre actionnaires) soient | | rediges en langue anglaise. | - ---------------------------------------------------------------------------- ARAMARK Corporation is a Delaware corporation with its principal offices located at ARAMARK Tower, 1101 Market Street, Philadelphia, PA 19107 (215-238-3000). When we use the word "ARAMARK," we are referring to ARAMARK Corporation, to the subsidiary for which you work, or to ARAMARK Corporation and its subsidiaries collectively, as the context requires. 2 PROSPECTUS SUMMARY This summary highlights selected information and may not contain all of the information that is important to you. Before you make a decision to invest in ARAMARK, you should read carefully this entire prospectus, ARAMARK's most recent annual report on Form 10-K, and the documents to which we have referred. See "Where You Can Find More Information." THE COMPANY ARAMARK is a world leader in managed services, including food and support services, uniform and career apparel, and educational resources. THE ARAMARK OWNERSHIP PROGRAM The ARAMARK Ownership Program provides you with an opportunity to purchase shares of ARAMARK. Under the program you received an Installment Stock Purchase Opportunity (ISPO) that entitles you to purchase a specific number of shares in annual installments at a fixed price per share. Your grant certificate sets forth the installment periods when you may purchase shares and the number of shares you may purchase during each period. The purchase price per share is the appraisal price at the time your purchase opportunity is granted. During each installment, you may purchase up to the number of shares specified for that installment. However, there is a minimum purchase of 100 shares per installment. Any portion of an annual installment you do not exercise during its exercise period is canceled. You must purchase 100 shares in the first installment, or your entire purchase opportunity for all installments is canceled. STOCKHOLDERS' AGREEMENT All management stockholders are parties to a stockholders' agreement. By purchasing shares under the program, you will be agreeing to be bound by the terms of the stockholders' agreement. The terms of the stockholders' agreement limit your ability to transfer your shares. In addition, upon yourtermination of employment, ARAMARK generally would, but is not required to, repurchase your shares. We have included a copy of the stockholders' agreement as Annex A to this prospectus. HOW TO PURCHASE SHARES To purchase shares under the program you must o complete the appropriate exercise forms (see page B-1) and o pay the purchase price for the shares plus the amount of taxes required to be withheld (as computed on the exercise form). You may complete the forms using the ARAMARK exercise form wizard on the ARAMARK web site at http://www.aramark.com/stock. The form wizard does NOT transmit your completed forms to ARAMARK. You will still need to print out and sign the forms, and send the signed forms and the purchase price to ARAMARK. PAYMENT FOR THE SHARES You may pay for your shares, including any applicable withholding taxes, by one or more of the following methods: o using the ARAMARK deferred payment program. o borrowing from a bank or other lender. o selling ARAMARK shares that you already own. o using ARAMARK shares that you already own in a stock-for-stock exchange. o using personal savings or other personal funds. We describe the eligibility requirements and the conditions for using each of these payment methods in this prospectus. 3 FREQUENTLY ASKED QUESTIONS (FAQ) To assist you in better understanding purchase opportunities and the ARAMARK Ownership Program, we have answered certain frequently asked questions. For more complete answers to your questions, you should read the text of the stockholders' agreement, to which we refer, attached as Annex A to this prospectus. For your convenience, we have grouped the questions and answers by topic. TOPIC Q/A NOS. - ----- -------- GENERAL ..................................................... 1 - 4 STOCK PURCHASE OPPORTUNITIES General ................................................. 5 - 12 Installment Stock Purchase Opportunities (ISPOs) ........ 13 - 19 HOW TO PURCHASE AND PAY TAXES DUE General ................................................. 20 - 27 Deferred Payment Program ................................ 28 - 41 Borrowing ............................................... 42 Sale of Currently-Owned Shares .......................... 43 - 44 Stock-for-Stock Exchanges ............................... 45 - 51 STOCK OWNERSHIP General ................................................. 52 - 55 Transferring Shares ..................................... 56 - 59 Pledging Shares ......................................... 60 - 62 Appraisal Price ......................................... 63 - 68 SALES WHILE EMPLOYED General ................................................. 69 - 71 Internal Market ......................................... 72 Emergency Buy-Back Program .............................. 73 Offer-to-Sell ........................................... 74 - 75 SALES UPON TERMINATION OF EMPLOYMENT General ................................................. 76 - 82 Stock Repurchase Policy ................................. 83 - 85 Installment Notes ....................................... 86 - 88 - --------------------------------------------------------------------------- | EMPLOYEES BASED IN COUNTRIES OTHER THAN THE UNITED STATES | | --------------------------------------------------------------------- | | THE LAWS OF YOUR COUNTRY MAY DIFFER FROM U.S. LAWS IN WAYS | | THAT AFFECT THE STOCK PURCHASE OPPORTUNITIES AND THE ARAMARK | | OWNERSHIP PROGRAM. ALTHOUGH THE ANSWERS TO MOST OF THE FOLLOWING | | QUESTIONS GENERALLY APPLY TO EMPLOYEES BASED IN COUNTRIES OTHER | | THAN THE U.S., AS WELL AS U.S. BASED EMPLOYEES, WE CHANGED THE | | ANSWERS TO QUESTIONS AND ADDED QUESTIONS AND ANSWERS TO REFLECT | | THE APPLICATION OF YOUR COUNTRY'S TAX AND SECURITIES LAWS. WE | | IDENTIFY THESE QUESTIONS AND ANSWERS BY SHADING. YOU SHOULD READ | | THESE IN CONJUNCTION WITH THE UNSHADED, GENERALLY APPLICABLE | | INFORMATION TO WHICH THEY RELATE. | | | | THE APPLICATION OF YOUR COUNTRY'S LAWS TO THE VARIOUS ASPECTS | | OF THE ARAMARK OWNERSHIP PROGRAM CAN BE COMPLEX AND CAN PRODUCE | | UNINTENDED RESULTS. WE HAVE HAD THE ARAMARK OWNERSHIP PROGRAM | | AND THESE QUESTIONS AND ANSWERS REVIEWED BY LEGAL AND TAX | | ADVISORS FROM THE JURISDICTIONS INDICATED. HOWEVER, WE CANNOT | | GUARANTY THE ACCURACY OF THE ANSWERS OR THEIR APPLICABILITY TO | | YOUR PERSONAL SITUATION. YOU ARE URGED TO CONSULT LEGAL AND TAX | | ADVISORS FAMILIAR WITH YOUR COUNTRY'S LAWS. | - --------------------------------------------------------------------------- 4 - --------------------------------------------------------------------------- GENERAL - --------------------------------------------------------------------------- 1. Q: WHAT IS ARAMARK CORPORATION? A: ARAMARK Corporation, through its subsidiaries, provides and manages services, including food and support services, uniform and career apparel, and educational resources. ARAMARK is an employee-owned company: Management employees own more than 70% of the equity of ARAMARK, and employee benefit plans own an additional 18% of the equity. 2. Q: WHAT IS THE ARAMARK OWNERSHIP PROGRAM? A: The ARAMARK Ownership Program is the name used generally to describe the various documents, practices, and policies under which ARAMARK provides selected management and other key employees opportunities to participate in the ownership of ARAMARK. The program consists of o our restated certificate of incorporation and stockholders' agreement, which govern the rights of ARAMARK stockholders generally, o the Combined Stock Ownership Plan and the other ownership and option plans, which govern the grants of purchase opportunities, and o the various ARAMARK practices and policies, such as the internal market, the emergency buyback program, the deferred payment program, and the stock repurchase policy. 3. Q: WHO ADMINISTERS THE ARAMARK OWNERSHIP PROGRAM? A: Generally, the Corporate Compensation and Benefits Department, under the direction of the Human Resources, Compensation and Public Affairs Committee of the board of directors , administers the program. (See section 3.03 of the stockholders' agreement) Unless they conflict with or are prohibited by the specific terms of the stockholders' agreement, ARAMARK's ownership and option plans, or specific grant certificates, o decisions and interpretations of the committee, or of the department, regarding the program are final and binding on all participants; and o the committee may amend, modify, discontinue, or vary the terms of the program at any time for all transactions generally or for any specific transaction. 4. Q: WHAT CHANGES HAVE BEEN MADE TO THE ARAMARK OWNERSHIP PROGRAM SINCE THE LAST ANNUAL INSTALLMENT PERIOD? A: We list below the more significant changes. o Deferred payment program. We increased the amounts of purchase price you may defer for installments #4 through #6. (see Question 32) o Stock repurchase policy. We improved the payment terms under the stock repurchase policy. (see Question 85) ---------------------------------------------------------------------- | EMPLOYEES BASED IN BELGIUM: | | | | o Receipt of new grant a taxable event. We understand | | that, under recently enacted Belgian income tax laws, | | the receipt of a new purchase opportunity grant after | | January 1, 1999, is a taxable event. (See Question 11) | ---------------------------------------------------------------------- ------------------------------------------------------------------------- STOCK PURCHASE OPPORTUNITIES ------------------------------------------------------------------------- ------------------------------------------------------------------------- --GENERAL ------------------------------------------------------------------------- 5. Q: WHAT IS A STOCK PURCHASE OPPORTUNITY? A: Stock purchase opportunities allow selected management employees to participate in the ownership of ARAMARK on favorable terms. Specifically, your stock purchase opportunity entitles you to purchase a specific number of shares of ARAMARK common stock at a fixed price per share. A stock purchase opportunity is sometimes called a stock option. 5 Your grant certificate sets the terms of your purchase opportunity. 6. Q: HOW DOES ARAMARK AWARD STOCK PURCHASE OPPORTUNITIES? A: The board of directors (or the committee), upon the advice and recommendation of senior management, approves the grant of opportunities to selected management employees. ARAMARK then makes the grant by delivering to you a grant certificate that sets the terms of your purchase opportunity. A grant certificate is sometimes called an option certificate. Individual grants are generally made in connection with hires, promotions, and other forms of recognition of performance. 7. Q: ARE THE SHARES OF COMMON STOCK BEING OFFERED THE SAME AS THE SHARES OWNED BY CURRENT MANAGEMENT INVESTORS? A: Yes, they are shares of class B common stock with the same rights and obligations to which current management investors are subject under the stockholders' agreement. 8. Q: AM I OBLIGATED TO PURCHASE SHARES? A: No. Any exercise of all or any portion of your purchase opportunity by you is strictly voluntary. 9. Q: WHAT IS THE PURCHASE PRICE PER SHARE? A: We set the price per share at the time we grant the purchase opportunity. The grant price per share appears on your grant certificate and represents the appraisal price based on the most recent available independent appraisal at the time of grant. The grant price is sometimes called the exercise price. If the appraisal price has increased since the grant date, your purchase opportunity will allow you to purchase shares at a price below the current appraisal price. 10. Q: IS MY PURCHASE OPPORTUNITY ADJUSTED IN THE EVENT OF A COMMON STOCK DIVIDEND, SPLIT, REORGANIZATION, MERGER, OR THE LIKE? A: In such cases your purchase opportunity will be equitably adjusted, if appropriate, as determined by the committee. For unexercised purchase opportunities granted prior to September 1, 1998, the grant price per share has been divided by three, and the number of shares subject to the purchase opportunity has been multiplied by three, as a result of the three-for-one stock split declared as of that date. We annually distribute statements with the terms of each holder's purchase opportunities, adjusted if appropriate, for activity since the prior statement. 11. Q: WILL I OWE ANY TAXES WHEN I AM GRANTED A PURCHASE OPPORTUNITY? A: No. All outstanding purchase opportunities are nonqualified options for U.S. income tax purposes. Under current U.S. tax laws, being granted a purchase opportunity is not a taxable event. ---------------------------------------------------------------------- | EMPLOYEES BASED IN COUNTRIES OTHER THAN BELGIUM: | | | | We understand that under current income tax laws, at | | the time of grant you will not recognize any taxable | | income. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | EMPLOYEES BASED IN BELGIUM: | | | | We understand that, under current Belgian income tax | | laws: | | | | o for purchase opportunities granted before January 1, | | 1999, no income will be recognized by the employee at | | time of grant; and | | | | o for purchase opportunities granted after January 1, | | 1999, the receipt of a grant is a taxable event and | | will subject you to tax. You may avoid the tax by | | refusing to accept the grant within 60 days after it is | | made. If you do not decline a grant, -tax liability | | for that grant arises on the earlier of (1) the date | | you exercise any part of that grant or (2) 60 days | | after the grant is made. As of that time you will owe | | tax equal to 15% of the grant price of the purchase | | opportunities. If any of the purchase opportunities | | can be exercised more than 5 years and 60 days after | | the grant date, an additional 1% tax on the grant of | | those purchase opportunities will be imposed. ARAMARK | | understands that no tax withholding would be required | | at the time of grant. You can obtain more information | | from the local ARAMARK representative shown in the | | mailing instructions. You should obtain additional | 6 | information and advice from your tax advisor. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | EMPLOYEES BASED IN COUNTRIES OTHER THAN THE U.S.: | | | | 12. Q: IS THERE ANY U.S. DOLLAR EXCHANGE RISK IN | | INVESTING IN ARAMARK COMMON STOCK? | | | | A: Yes. Because the shares are valued in U.S. | | dollars, the currency exchange risk is borne by the | | employee. | | | | Generally, this exchange risk represents the | | change in your country's currency as compared to | | the U.S. dollar between the dates of purchase of | | the shares and the sale of the shares. | ---------------------------------------------------------------------- - ------------------------------------------------------------------------- - -- INSTALLMENT STOCK PURCHASE OPPORTUNITIES (ISPOS) - ------------------------------------------------------------------------- 13. Q: WHEN CAN I EXERCISE MY ISPO AND PURCHASE SHARES? A: You may exercise your ISPO only for the amount authorized on your grant certificate and only during the periods set forth on the certificate. There is a minimum and maximum number of shares you can purchase in each installment. Generally, we grant an ISPO in six annual installments. The typical installment exercise period is December 15 - January 15 of each year. You should refer to your grant certificate for the installment exercise periods applicable to your ISPO. 14. Q: CAN I EXERCISE AN INSTALLMENT PRIOR TO ITS CORRESPONDING INSTALLMENT EXERCISE PERIOD? A: No. You may purchase shares only during the designated installment exercise period. 15. Q: HOW MANY SHARES CAN I PURCHASE IN EACH INSTALLMENT? A: In any installment, you may exercise up to the maximum number of shares specified for that installment on your grant certificate, but you cannot purchase less than 100 shares. For unexercised ISPOs granted prior to September 1, 1998, the number of shares has been multiplied by three as a result of the three-for-one stock split declared as of that date. We annually distribute statements with the terms of each holder's purchase opportunities, adjusted if appropriate, for activity since the prior statement. 16. Q: CAN I STILL EXERCISE A SUBSEQUENT INSTALLMENT EVEN IF I DO NOT EXERCISE THE FIRST INSTALLMENT? A: No. Unless you exercise the first installment for at least 100 shares prior to the end of the first exercise period, the entire purchase opportunity for all installments will be canceled. 17. Q: IF I EXERCISE THE FIRST INSTALLMENT, MUST I EXERCISE ADDITIONAL INSTALLMENTS? A: No. Exercise of any installment does not obligate you to exercise any other installment. 18. Q: IF I DO NOT EXERCISE AN INSTALLMENT FOR THE MAXIMUM, WHAT HAPPENS TO THE UNEXERCISED PORTION OF THE INSTALLMENT? A: Any unexercised portion of any installment will be canceled upon expiration of the corresponding exercise period. 19. Q: WHAT IF MY EMPLOYMENT IS TERMINATED? A: Your entire remaining unexercised ISPO is canceled if your employment with ARAMARK and its subsidiaries, or any entity designated by the board of directors in which ARAMARK continues to own an equity interest, is terminated for any reason. You will own any shares you purchased through any prior exercises of installments. However, all of the shares you own will be subject to ARAMARK's right to repurchase set forth in the stockholders' agreement. - ------------------------------------------------------------------------- HOW TO PURCHASE AND PAY TAXES DUE - ------------------------------------------------------------------------- - ------------------------------------------------------------------------- - --GENERAL - ------------------------------------------------------------------------- 20. Q: HOW DO I PURCHASE SHARES OF COMMON STOCK? A: To exercise an installment of your purchase opportunity and purchase shares, you must 7 deliver to ARAMARK o your properly completed exercise forms and o payment of the correct purchase price in U.S. dollars plus the aggregate amount of applicable taxes required to be withheld or collected. You must deliver these items to our Philadelphia address shown in the mailing instructions before the last day of the exercise period. Instructions for computing taxes required to be withheld are included on the exercise forms. You may complete the forms using the ARAMARK exercise form wizard on the ARAMARK web site at http://www.aramark.com/stock. The form wizard does not transmit your completed forms to ARAMARK. You will still need to print out and sign the forms and send the signed forms and the purchase price to ARAMARK. ---------------------------------------------------------------------- | EMPLOYEES BASED IN COUNTRIES OTHER THAN THE U.S. AND CANADA: | | | | To exercise an installment of your purchase opportunity and | | purchase shares, you must deliver to ARAMARK | | | | o your properly completed exercise forms and | | | | o payment of the correct purchase price in your own country's | | currency plus the aggregate amount of applicable taxes | | required to be withheld or collected. | | | | You must deliver these items to the local ARAMARK address | | shown in the mailing instructions before the last day of the | | exercise period. Instructions for computing the purchase | | price and the taxes required to be withheld are included | | on the exercise form. | | | | Withholding tax on your exercise will be paid | | to the appropriate taxing authority, and your payroll | | and tax records will be updated for the exercise by the | | ARAMARK subsidiary company for which you work. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | CANADA BASED EMPLOYEES: | | | | As in prior years, the check you send to exercise your | | opportunities should be drawn in U.S. dollars and should | | be sent to the Philadelphia address shown in the mailing | | instructions. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | SPAIN BASED EMPLOYEES: | | | | As well as completing the exercise forms, we understand that | | you will be required to complete form MC-10A and file it with | | the Directorate for Foreign Investments and Commercial | | Transactions. | | | | In addition, if the aggregate purchase price for the | | purchase opportunities that you are exercising is | | more than 1,000,000 ptas. (including required | | withholding), then you are also required to complete | | form B3 and file it with your employer. | | | | If the aggregate purchase price for the purchase | | opportunities that you are exercising is more than | | 500,000 ptas. (including required withholding) and | | you are obtaining all or part of the purchase price | | from a bank, then you must notify the bank of the | | details of the transaction. | | | | Copies of the required forms and form of | | notification are available from the local ARAMARK | | address shown in the mailing instructions. If you | | complete and forward these government required forms | | along with your completed exercise forms and | | payment, then ARAMARK will file the completed forms | | on your behalf. | ---------------------------------------------------------------------- 21. Q: HOW DO I MAKE PAYMENT FOR THE PURCHASE PRICE? A: You may be eligible to use one or more of the following means to pay for your shares: o Using the ARAMARK deferred payment program (see Questions 28 through 41). o Borrowing from a bank or other lender (see Question 42). o Selling ARAMARK shares that you already own (see Questions 43 and 44). o Using ARAMARK shares that you already own in a stock-for-stock exchange (see Questions 45 through 51). o Using personal savings or other personal funds. We describe the eligibility requirements and the conditions for using each of these payment methods in this prospectus. ---------------------------------------------------------------------- | EMPLOYEES BASED IN COUNTRIES OTHER THAN THE U.S. AND CANADA: | | | | We understand that laws of countries outside | 8 | the U.S. and Canada do not permit the variable | | "like-kind" tax treatment accorded to stock-for-stock | | exercises in the U.S. and Canada. Accordingly, | | stock-for-stock exercises will not be available to | | employees outside of the U.S. and Canada. | ---------------------------------------------------------------------- 22. Q: WHAT TAXES WILL I OWE WHEN I EXERCISE A PURCHASE OPPORTUNITY? A: When you exercise a purchase opportunity, if the appraisal price is higher than the exercise price, the difference is considered ordinary taxable income. We are required to withhold or collect taxes at the time of the exercise. These taxes include a required 28% for U.S. income taxes, plus appropriate social security taxes and applicable state income and unemployment taxes. Based on present law, we collect and apply toward these taxes an amount equal to 38% of the difference between the exercise price and appraisal price. You may owe additional tax as a result of this exercise. You should discuss your particular situation with your tax advisor. ---------------------------------------------------------------------- | BELGIUM BASED EMPLOYEES: | | | | We understand that, under current Belgian income tax | | laws: | | | | o for purchase opportunities granted before January | | 1, 1999, upon exercise of a purchase opportunity, | | you must treat as taxable income the excess of the | | appraisal price over the exercise price; and | | | | o for purchase opportunities granted after January | | 1, 1999, no income will be recognized by the | | employee upon exercise of a purchase opportunity. | | Tax in that case would be imposed as of the time a | | purchase opportunity is granted. (See Question 11) | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | CANADA BASED EMPLOYEES: | | | | We understand that, under current Canadian federal | | income tax laws: | | | | o upon exercise of a purchase opportunity, the | | employee must treat as a taxable benefit from | | employment the excess of the appraisal price over | | the exercise price; | | | | o the employee may be entitled to deduct one quarter | | of the benefit in computing taxable income; and | | | | o if your cost basis in ARAMARK stock, combined with | | that of any other "specified foreign property" you | | own exceeds C$100,000 at any time during a year, you | | are required to file Form T1135, "Foreign Income | | Verification Statement", with Revenue Canada. You | | are urged to discuss with your tax advisor whether | | this requirement applies to you. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | CZECH REPUBLIC BASED EMPLOYEES: | | | | We understand that under current Czech income tax | | laws, upon exercise of a purchase opportunity, you | | must treat as employment type income the excess of | | the appraisal price over the exercise price. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | GERMANY BASED EMPLOYEES: | | | | We understand that under current German income tax | | laws: | | | | o upon exercise of a purchase opportunity, you must | | treat as taxable income the excess of the appraisal | | price over the exercise price; and | | | | o if the spread does not exceed one half of the | | appraisal price and is less than DM300, the entire | | spread may be excluded from income, provided you | | hold the shares for at least six years. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | MEXICO BASED EMPLOYEES: | | | | We understand that under current Mexican income tax | | laws, upon exercise of a purchase opportunity, you | | must treat as taxable compensation from labor the | | excess of the appraisal price over the exercise | | price. This amount will be subject to income tax | | plus appropriate social security taxes. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | SPAIN BASED EMPLOYEES: | | | | We understand that under current Spanish income tax | | laws, upon exercise of a purchase opportunity, you | | must treat as taxable salary compensation in kind | | the excess of the appraisal price over the exercise | | price. For exercises of purchase opportunities more | | than two years after the opportunities were granted, | | the resulting spread is treated as irregular taxable | | salary compensation in kind. ARAMARK understands | | that 30% of irregular taxable salary compensation in | | kind may be excludable from taxation. | ---------------------------------------------------------------------- 9 ---------------------------------------------------------------------- | UNITED KINGDOM BASED EMPLOYEES: | | | | We understand that under current United Kingdom | | income tax laws, upon exercise of a purchase | | opportunity, you must treat as taxable income the | | excess of the appraisal price over the exercise | | price. | ---------------------------------------------------------------------- 23. Q: WILL ARAMARK REPORT THE TAXABLE INCOME THAT I REALIZE UPON THE EXERCISE OF MY PURCHASE OPPORTUNITY? A: For U.S. based employees, the taxable income and the taxes withheld will be reported to the IRS on your W-2 form for the year in which the purchase occurs. The purchase occurs at the time we receive and process your completed exercise forms and your purchase price payment. For example, if we receive your exercise forms and purchase price payment for the appropriate installment in December 1999, we will report the taxable income and the taxes collected on your W-2 form for 1999; and if we receive them in January 2000, we will report the taxable income and the taxes collected on your W-2 form for 2000. You may wish to consult with your tax advisor when considering the time, within an installment exercise period, to exercise a purchase opportunity. ---------------------------------------------------------------------- | BELGIUM BASED EMPLOYEES: | | | | If you exercise a purchase opportunity that was | | granted before January 1, 1999, then we will report | | any taxable income and any taxes withheld on your | | salary slip (281.10) and summary form (325.10) for | | the year in which the purchase occurs. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | CANADA BASED EMPLOYEES: | | | | If you exercise a purchase opportunity, then we will | | report any taxable income and any available | | one-quarter deduction to Revenue Canada on a T- 4 | | form for the year in which the purchase occurs. | | Reporting to provincial tax authorities will also be | | made, as required. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | CZECH REPUBLIC BASED EMPLOYEES: | | | | If you exercise a purchase opportunity, then we will | | report to the financial authorities the taxable | | income derived from employment and any taxes | | withheld for the year in which the purchase occurs. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | GERMANY BASED EMPLOYEES: | | | | If you exercise a purchase opportunity, then we will | | report the taxable income and any taxes withheld on | | your wage tax card for the year in which the | | purchase occurs. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | MEXICO BASED EMPLOYEES: | | | | If you exercise a purchase opportunity, then we will | | report the taxable income and any taxes withheld for | | the year in which the purchase occurs. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | SPAIN BASED EMPLOYEES: | | | | If you exercise a purchase opportunity, then we will | | report the taxable salary compensation and any taxes | | withheld for the year in which the purchase occurs. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | UNITED KINGDOM BASED EMPLOYEES: | | | | If you exercise a purchase opportunity, then we will | | report the details of the transaction to the Inland | | Revenue. | ---------------------------------------------------------------------- 24. Q: HOW DO I COMPUTE THE AMOUNT OF WITHHOLDING TAX I MUST DEPOSIT WITH ARAMARK WHEN EXERCISING AN INSTALLMENT? A: A portion of the exercise form guides you through the computation of the estimated amount to be withheld or collected to cover applicable taxes. We included the exercise form in this prospectus as Annex B, and it is also available on the ARAMARK web site at http://www.aramark.com/stock. 25. Q: HOW ARE ESTIMATED WITHHOLDING TAXES COLLECTED? A: You must pay to ARAMARK the estimated withholding taxes, as computed on the exercise form, at the time you exercise an installment. It is possible that the amount estimated at 38% to be withheld or collected will not be sufficient to cover the actual taxes we are required to withhold at the time of exercise. IN SUCH EVENT, WE MAY WITHHOLD ADDITIONAL TAXES FROM SUBSEQUENT PAYCHECKS. If the actual amount required to be withheld is less than the estimated amount, the difference will be refunded to you in a subsequent paycheck. ---------------------------------------------------------------------- | BELGIUM BASED EMPLOYEES: | | | | We are required to withhold taxes at a rate based on | | all of your income derived from employment. | | | | For exercises of purchase opportunities that were | | granted before January 1, 1999, we will require you | | to deposit 38% of the spread as | 10 | an estimate of the required withholding taxes. | | | | This amount is not necessarily the entire amount of | | tax that you will owe as a result of this exercise. | | Additional tax may be required to meet your full tax | | liability due to this grant or exercise. You should | | discuss your particular situation with your tax | | advisor. | | | | It is possible, depending on your personal | | situation, that the amount estimated at 38% to be | | withheld or collected will not be sufficient to | | cover the actual taxes we are required to withhold | | at the time of grant or exercise. IN SUCH EVENT, WE | | MAY WITHHOLD ADDITIONAL TAXES FROM SUBSEQUENT | | PAYCHECKS. If the actual amount required to be | | withheld is less than the estimated amount, the | | difference will be refunded to you in a subsequent | | paycheck. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | CANADA BASED EMPLOYEES: | | | | We understand that it is the administrative position | | of Revenue Canada that a taxable benefit recognized | | upon the exercise of a purchase opportunity is not | | subject to tax withholding. Therefore, we will not | | require any deposit from you for taxes related to | | your exercise. You are responsible for paying any | | required tax, including any personal tax | | installments. You are urged to discuss your | | particular situation with your tax advisor. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | CZECH REPUBLIC BASED EMPLOYEES: | | | | We understand that we are required to withhold taxes | | for employment type of income at the rate used for | | all of your income derived from employment. We will | | require you to deposit 38% of the spread as an | | estimate of the required withholding taxes. This | | amount is not necessarily the entire amount of tax | | that you will owe as a result of this exercise. | | Additional tax may be required to meet your full tax | | liability due to this exercise. You should discuss | | your particular situation with your tax advisor. | | | | It is possible, depending on your personal | | situation, that the amount estimated at 38% to be | | withheld or collected will not be sufficient to | | cover the actual taxes we are required to withhold | | at the time of exercise. IN SUCH EVENT, WE MAY | | WITHHOLD ADDITIONAL TAXES FROM SUBSEQUENT PAYCHECKS. | | If the actual amount required to be withheld is less | | than the estimated amount, the difference will be | | refunded to you in a subsequent paycheck. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | GERMANY BASED EMPLOYEES: | | | | We understand that we are required to withhold taxes | | for this income at a rate based on all of your | | income derived from employment. We will require you | | to deposit 38% of the spread as an estimate of the | | required withholding taxes. This amount is not | | necessarily the entire amount of tax that you will | | owe as a result of this exercise. Additional tax | | may be required to meet your full tax liability due | | to this exercise. You should discuss your | | particular situation with your tax advisor. | | | | It is possible, depending on your personal | | situation, that the amount estimated at 38% to be | | withheld or collected will not be sufficient to | | cover the actual taxes we are required to withhold | | at the time of exercise. IN SUCH EVENT, WE MAY | | WITHHOLD ADDITIONAL TAXES FROM SUBSEQUENT PAYCHECKS. | | If the actual amount required to be withheld is less | | than the estimated amount, the difference will be | | refunded to you in a subsequent paycheck. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | MEXICO BASED EMPLOYEES: | | | | We understand that we are required to withhold taxes | | for taxable compensation from labor resulting from | | the exercise of purchase opportunities at the same | | rates as ordinary cash compensation. | | | | We will require you to deposit 38% of the spread as | | an estimate of the required withholding taxes. This | | amount is not necessarily the entire amount of tax | | that you will owe as a result of this exercise. | | Additional tax may be required to meet your full tax | | liability due to this grant or exercise. You should | | discuss your particular situation with your tax | | advisor. | | | | It is possible, depending on your personal | | situation, that the amount estimated at 38% to be | | withheld or collected will not be sufficient to | | cover the actual taxes we are required to withhold | | at the time of exercise. IN SUCH EVENT, WE MAY | | WITHHOLD ADDITIONAL TAXES FROM SUBSEQUENT PAYCHECKS. | | If the actual amount required to be withheld is less | | than the estimated amount, the difference will be | | refunded in a subsequent paycheck. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | SPAIN BASED EMPLOYEES: | | | | We understand that we are required to withhold taxes | | for taxable salary compensation in kind at the same | | rates as ordinary cash salary. We will require you | | to deposit 38% of the spread as an estimate of the | | required withholding taxes. This amount | 11 | is not necessarily the entire amount of tax that you will | | owe as a result of this exercise. Additional tax | | may be required to meet your full tax liability due | | to this grant or exercise. You should discuss your | | particular situation with your tax advisor. | | | | It is possible, depending on your personal | | situation, that the amount estimated at 38% to be | | withheld or collected will not be sufficient to | | cover the actual taxes we are required to withhold | | at the time of exercise. IN SUCH EVENT, WE MAY | | WITHHOLD ADDITIONAL TAXES FROM SUBSEQUENT PAYCHECKS. | | If the actual amount required to be withheld is less | | than the estimated amount, the difference will be | | refunded to you in a subsequent paycheck. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | UNITED KINGDOM BASED EMPLOYEES: | | | | We understand that we are required to account for | | the income tax arising on exercise via the PAYE | | system, in line with your salary and other payments. | | We will require you to deposit 38% of the spread as | | an estimate of the required withholding taxes. | | | | It is possible, depending on your personal | | situation, that the amount estimated at 38% to be | | withheld or collected will not be sufficient to | | cover the actual taxes we are required to withhold | | at the time of exercise. IN SUCH EVENT, WE MAY | | WITHHOLD ADDITIONAL TAXES FROM SUBSEQUENT PAYCHECKS. | | If the actual amount required to be withheld is less | | than the estimated amount, the difference will be | | refunded to you in a subsequent paycheck. | | | | By signing your exercise form, you will be giving | | ARAMARK your authorization to collect 38% tax | | withholding at the time of exercise and to make any | | additional tax withholding from your subsequent pay | | checks required to meet your PAYE obligation | | following your exercise. | ---------------------------------------------------------------------- 26. Q: HOW WILL I KNOW WHAT THE APPRAISAL PRICE OF THE COMMON STOCK IS? A: Our current practice is to have the common stock independently appraised quarterly - December 1, March 1, June 1, September 1 - by an independent appraiser. The appraisal price at December 1, 1999 was $15.20 (see Questions 63 through 68). ---------------------------------------------------------------------- | EMPLOYEES BASED IN COUNTRIES OTHER THAN THE U.S. AND CANADA: | | | | 27. Q: How will I compute the purchase price of the common stock | | in my own country's currency? | | | | A: You should contact the representative shown in the mailing | | instructions to obtain the exchange rate to be used. | ---------------------------------------------------------------------- - ------------------------------------------------------------------------- - --DEFERRED PAYMENT PROGRAM - ------------------------------------------------------------------------- 28. Q: WHAT IS THE DEFERRED PAYMENT PROGRAM? A: The deferred payment program allows you to defer paying a portion of the purchase price when you purchase shares of common stock. 29. Q: WHO IS ELIGIBLE TO PARTICIPATE IN THE DEFERRED PAYMENT PROGRAM? A: Generally, you may participate in the deferred payment program for the second or any subsequent installment exercise. 30. Q: WILL THE DEFERRED PAYMENT PROGRAM BE OFFERED FOR EXERCISES IN THE FUTURE? A: We anticipate the deferred payment program will be offered annually. However, the board of directors may cancel or modify the deferred payment program at any time. 31. Q: DO I HAVE TO PARTICIPATE IN THE DEFERRED PAYMENT PROGRAM? A: No. Any participation by you is strictly voluntary. 32. Q: HOW MUCH OF THE PURCHASE PRICE PAYMENT MAY I DEFER UNDER THE DEFERRED PAYMENT PROGRAM? A: You may defer payment of up to the following percentages of the total purchase price, including required withholding taxes: o to purchase any or all shares exercised in installment #2 for up to 25% of the total purchase price of such shares, o to purchase any or all shares exercised in installment #3 for up to 50% of the total purchase price of such shares, and o to purchase any or all shares exercised in 12 installments #4 through #6 for up to 90% of the total purchase price of such shares. 33. Q: HOW DO I ELECT TO PARTICIPATE IN THE DEFERRED PAYMENT PROGRAM? A: You may use the exercise forms included in Annex B and available on our web site at http:// www.aramark.com/stock to elect into the deferred payment program. A portion of the exercise form guides you through the election and computation of the amount of payment you may defer. 34. Q: WHAT ARE THE TERMS OF THE DEFERRED PAYMENT PROGRAM? A: Three year term. You must repay the deferred amount, plus interest, on the March 15 following the third anniversary of the date you exercise your purchase opportunity. For example, for a purchase opportunity exercised in January 2000, the deferred payment is due on March 15, 2003. If you sell or otherwise transfer any of such shares, the entire deferred payment becomes due at the time of the sale. 8.5% interest rate. Interest will accrue on any deferred payment at a fixed annual rate (currently 8.5% simple interest) and will be payable at the time the deferred payment is due. We may select a different interest rate for use in future deferred payment obligations. However, the interest rate at the time a deferred payment obligation is entered into is fixed for the entire term of the obligation. Pledge of shares. We will hold as collateral shares with an aggregate appraisal price equal to 133% of the amount of the deferred payment (rounded up to whole shares) until we receive the deferred payment. If payment is not received when due, we will repurchase a sufficient number of shares to cover the amount due. Demand obligations. Deferred obligations are demand obligations and, as such, may be called at any time. We do not intend, but reserve the right, to call obligations under the deferred payment program. If we sell your obligation to a bank or other financial institution, then that financial institution could decide to call your obligation. 35. Q: DOES ARAMARK INTEND TO SELL MY DEFERRED PAYMENT OBLIGATION TO A BANK OR OTHER FINANCIAL INSTITUTION? A: Yes. We have sold almost all existing deferred payment obligations of U.S. based employees to a financial institution and currently intend to sell any new deferred payment obligations. The financial institution has not accelerated any deferred payment obligations and has assured us that it does not currently intend to do so. The financial institution has stated that it would seriously consider accelerating the deferred payment obligations if o the pledge of shares securing the obligation ceased to be valid, o the appraisal price of the pledged shares falls below 133% of the amount of the outstanding deferred payment obligation, o ARAMARK defaults in its obligations under its primary credit agreement, or o there is a material adverse downturn in ARAMARK's business. The financial institution has further stated, however, that it would first offer to sell the obligations back to ARAMARK prior to accelerating the obligations. ---------------------------------------------------------------------- | EMPLOYEES BASED IN COUNTRIES OTHER THAN THE U.S.: | | | | A: Not necessarily. The ARAMARK subsidiary in each | | country will decide whether or not to sell the | | deferred payment obligations of employees based in | | that country, taking into account the applicable tax | | consequences. | ---------------------------------------------------------------------- 36. Q: CAN I DELAY THE PAYMENT OF MY DEFERRED PAYMENT OBLIGATION BEYOND THE MATURITY DATE? A: On the maturity due date, you may choose to delay the payment of the principal amount for an additional three years, but you must pay the interest on the original maturity date. You may extend a deferred obligation only once. Interest must still be paid on the original due date. At the time of the extension, a new interest rate will be set for the extension period. We will make available the required extension forms prior to maturity. In addition, you may be able to refinance your deferred payment obligation, including any 13 interest under the bank loan program referred to in Question 42 or under any arrangements you may make with another outside lender. (See Question 42) 37. Q: WILL I BE ABLE TO SELL SHARES TO PAY MY DEFERRED PAYMENT OBLIGATION AT THE TIME IT BECOMES DUE? A: We intend to allow you to sell shares at that time. However, all repurchases of shares by ARAMARK must be approved by the board of directors and are subject to our ability to do so under our loan agreements. 38. Q: CAN I PREPAY MY DEFERRED PAYMENT OBLIGATION? A: Yes. You may prepay all or a part of your deferred payment obligation at any time before it becomes due. Partial payments are applied first to interest due and then reduction of principal. 39. Q: WHAT ARE THE ANTICIPATED INCOME TAX CONSEQUENCES TO ME FOR PARTICIPATION IN THE DEFERRED PAYMENT PROGRAM? A: The tax consequences of exercising your purchase opportunity installment will not change. Generally, interest paid on money borrowed to pay the exercise price for ARAMARK stock would be treated under U.S. income tax law as investment interest. Accordingly, it may be deductible, but only to the extent of investment income received during the year the interest is paid. "Investment income" does not include any income taxed at the favorable capital gains rate. As a result, you may not be able, or wish, to deduct deferred payment interest when you pay it. However, investment interest expense, including deferred payment interest, that is not deducted for U.S. income tax purposes may be carried forward indefinitely until it is used. You are urged to discuss this matter with your tax advisor. ---------------------------------------------------------------------- | BELGIUM BASED EMPLOYEES: | | | | We understand that under current Belgian law, the | | interest you pay would not be deductible for | | personal income tax purposes. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | CANADA BASED EMPLOYEES: | | | | We understand that generally, under current Canadian | | law, interest is deductible when it is paid to | | acquire income-producing property. ARAMARK does not | | now regularly pay dividends on its stock, nor are | | such dividend payments planned for the foreseeable | | future. As a result, we believe there may be an | | issue whether interest paid under the deferred | | payment program would be deductible for personal | | income tax purposes. You are urged to discuss this | | matter with your tax advisor. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | CZECH REPUBLIC BASED EMPLOYEES: | | | | We understand that under current Czech law, the | | interest you pay would not be deductible for | | personal income tax purposes. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | GERMANY BASED EMPLOYEES: | | | | We understand that under current German tax law, | | interest paid to acquire a capital asset such as | | ARAMARK stock, is deductible only to the extent that | | ordinary income, such as dividends, is derived from | | that investment. ARAMARK does not now regularly pay | | dividends on its stock, nor are such dividend | | payments planned for the foreseeable future. As a | | result, we believe that interest paid under the | | deferred payment program probably would not be | | deductible for personal income tax purposes. You | | are urged to discuss this matter with your tax | | advisor. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | MEXICO BASED EMPLOYEES: | | | | We understand that under current Mexican law, the | | interest you pay would not be deductible for | | personal income tax purposes. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | SPAIN BASED EMPLOYEES: | | | | We understand that under current Spanish law, the | | interest you pay would not be deductible for | | personal income tax purposes. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | UNITED KINGDOM BASED EMPLOYEES: | | | | We understand that under current United Kingdom law, | | the interest you pay would not be deductible for | | personal income tax purposes. | ---------------------------------------------------------------------- 40. Q: WILL MY OBLIGATION TO PAY THE DEFERRED PAYMENT BE TREATED AS DEBT FOR MY PERSONAL CREDIT PURPOSES? A: Any decision regarding your personal credit, whether for a home mortgage or otherwise, would be made by a lender. We understand that generally the deferred payment obligation would be treated as debt for personal credit purposes by lenders. 14 41. Q: MAY I PARTICIPATE IN THE DEFERRED PAYMENT PROGRAM IF I AM ALSO PARTICIPATING IN THE BANK LOAN PROGRAM REFERRED TO IN QUESTION 42? A: Yes. However, your eligibility for any bank loan program is determined solely by that bank. - ------------------------------------------------------------------------- - --BORROWING - ------------------------------------------------------------------------- 42. Q: CAN I BORROW MONEY TO PURCHASE THE SHARES COVERED BY MY PURCHASE OPPORTUNITY? A: Yes. Generally, if you wish to borrow money to purchase shares, you must make your own financing arrangements with outside lenders. Wachovia Bank has developed a special loan program for ARAMARK U.S. based employees. Information is available from Rose Ajani or Steve Slewitzke at 800-724-8865. Eligibility for this program is determined by the bank. Of course, you are free to make your own arrangements with any other lender. See Questions 60 through 62 concerning your ability to pledge your shares to a lender. ---------------------------------------------------------------------- | EMPLOYEES BASED IN COUNTRIES OTHER THAN THE U.S.: | | | | Banks have developed special loan programs for | | ARAMARK employees in some countries other than the | | U.S. If you wish to borrow money to purchase | | shares, you can contact the representative shown in | | the mailing instructions to learn whether any bank | | has developed a special loan program for ARAMARK | | employees in your country. | ---------------------------------------------------------------------- - ------------------------------------------------------------------------- - --SALE OF CURRENTLY-OWNED SHARES - ------------------------------------------------------------------------- 43. Q: HOW CAN I SELL SHARES OF COMMON STOCK THAT I CURRENTLY OWN TO PAY THE PURCHASE PRICE? A: You may sell shares of common stock in the internal market that is being conducted concurrently with the December 15 to January 15 installment exercise period (see Question 72). If you exercise your purchase opportunity during such internal market period and sell ARAMARK shares you currently hold, you may have the cash proceeds of such sale applied to pay all or a portion of the purchase price. The 15 necessary forms and instructions are included in Annex B. 44. Q: WHAT ARE THE TAX CONSEQUENCES IF I SELL SHARES TO RAISE CASH TO EXERCISE MY PURCHASE OPPORTUNITY? A: For U.S. based employees, the sale of common stock is a taxable event. In most cases, any gain or loss upon disposition of shares may be treated as capital gain or loss. The tax consequences of selling shares are not affected by whether or not you use the proceeds of such sale to exercise other purchase opportunities. Taxes due from the sale of shares must be paid in addition to the taxes due on the exercise of purchase opportunities. You are urged to discuss your particular situation with your tax advisor. ---------------------------------------------------------------------- | EMPLOYEES BASED IN COUNTRIES OTHER THAN THE U.S.: | | | | See the answers to Question 71, which address the applicable | | tax consequences to employees based in countries other than | | the U.S. | ---------------------------------------------------------------------- - ------------------------------------------------------------------------- STOCK-FOR-STOCK EXCHANGES - ------------------------------------------------------------------------- ---------------------------------------------------------------------- | EMPLOYEES BASED IN COUNTRIES OTHER THAN THE U.S. AND CANADA: | | | | WE UNDERSTAND THAT LAWS OF COUNTRIES OUTSIDE THE U.S. | | AND CANADA DO NOT PERMIT THE FAVORABLE "LIKE-KIND" | | TAX TREATMENT ALLOWED FOR STOCK-FOR-STOCK EXERCISES | | IN THE U.S. AND CANADA. ACCORDINGLY, STOCK-FOR-STOCK | | EXERCISES ARE NOT BENEFICIAL TO EMPLOYEES OUTSIDE THE | | U.S. AND CANADA AND, THEREFORE, WILL NOT BE AVAILABLE | | TO THEM. STOCK-FOR-STOCK EXERCISES IN OTHER | | COUNTRIES WOULD BE TAXED THE SAME AS ACTUAL SALES OF | | SHARES OF COMMON STOCK TO PAY FOR THE EXERCISE OF | | PURCHASE OPPORTUNITIES. IF YOU WISH TO USE THE VALUE | | OF SHARES YOU ALREADY HOLD TO HELP PAY FOR YOUR | | EXERCISE, YOU SHOULD ACTUALLY SELL SHARES IN THE | | INTERNAL MARKET, USING THE FORMS INCLUDED IN ANNEX B | | (AND ALSO AVAILABLE ON THE ARAMARK WEB SITE AT | | HTTP://WWW.ARAMARK.COM/STOCK). YOU ARE ENCOURAGED TO | | CONSULT YOUR TAX ADVISOR REGARDING YOUR COUNTRY'S | | SPECIFIC RULES FOR SUCH EXERCISES. | ---------------------------------------------------------------------- 45. Q: WHAT IS A STOCK-FOR-STOCK EXCHANGE? A: The effect of a stock-for-stock exchange is much the same as if you sold shares and used the cash proceeds to pay a portion of the purchase price. However, in countries where stock-for-stock exchange is permitted, there is a significant tax difference in that no taxable capital gain is currently generated by the use of a stock-for-stock exchange. 46. Q: WHAT IS THE BENEFIT OF USING THE STOCK-FOR-STOCK EXCHANGE METHOD? A: Where stock-for-stock exchange is permitted, you can avoid recognizing any gain for income tax purposes that you would otherwise recognize if you sold shares that you currently own and then used the cash proceeds to pay the exercise price. 47. Q: WHAT ARE THE TAX CONSEQUENCES IF I USE THE STOCK-FOR-STOCK EXCHANGE METHOD? A: Where stock-for-stock exchange is permitted, your taxable income from the stock-for-stock exchange is the same as if it were an exercise for cash. Your taxable income is equal to the difference between the exercise price and the appraisal price and is taxable at ordinary rates and subject to withholding. The U.S. tax basis and holding period for the shares that you currently own and use in the stock-for-stock exchange remain unchanged. The tax basis of the additional shares you receive in the exercise is equal to the current appraisal price at the time of the exercise, and their holding period commences with the date of exercise. ---------------------------------------------------------------------- | CANADA BASED EMPLOYEES: | | | | We understand that taxable income results only from | | the exercise and is calculated as explained in | | Question 22. There should be no capital gain or | | loss on the disposition of the old shares. The tax | | cost of the new shares you receive on the exercise | | will be equal to the tax cost of the old shares plus | | the amount of the taxable benefit (not reduced by | | the deduction allowed for one quarter of the income | | realized on exercise) included in your income in | | respect of the new shares (plus any other cash you | | pay towards the purchase price). This tax cost is | | then averaged with the tax cost of other identical | | shares held by the employee. | ---------------------------------------------------------------------- 16 48. Q: HOW DO I USE THE STOCK-FOR-STOCK EXCHANGE METHOD? A: A portion of the exercise form guides you through the computation of how many currently owned shares will be needed in your stock-for-stock exchange. You may use any shares that you, or you and your spouse jointly, have owned for more than six months. You may even use shares that are pledged to ARAMARK in the deferred payment program. 49. Q: WHO IS ELIGIBLE TO USE A STOCK-FOR-STOCK EXCHANGE? A: Generally, U.S. based and Canada based employees may use the stock-for-stock exchange method for an exercise of any installment. 50. Q: HOW MUCH OF THE PURCHASE PRICE CAN BE PAID USING THE STOCK-FOR-STOCK EXCHANGE METHOD? A: You may use the stock-for-stock exchange method to cover up to, but not more than, the exercise price. Stock-for-stock exchange may not be used to pay applicable withholding taxes. For example, if the exercise price for 100 shares is $3.25 per share (totaling $325.00) and the appraisal price at exercise is $10.00 per share, then o you may use 32 shares that you currently own in the stock-for-stock exchange method to pay $320.00 of the exercise price with the balance of $5.00 (plus required withholding taxes) being paid through the other available methods. o you may not use 33 shares, because 33 times $10.00 (or $330.00) exceeds the exercise price of $325.00. 51. Q: WHAT ARE THE RESTRICTIONS ON THE SHARES I USE IN A STOCK-FOR-STOCK EXCHANGE? A: You may use shares in a stock-for-stock exchange only if the shares are owned by you, or you and your spouse jointly, and only if you have owned the shares for more than six months. In addition, shares that you use in the stock- for-stock exchange method, like the shares you acquire in an exercise of a purchase opportunity, are not eligible for sale 17 in the internal market during the six months after the exercise. - ------------------------------------------------------------------------- STOCK OWNERSHIP - ------------------------------------------------------------------------- - ------------------------------------------------------------------------- - --GENERAL - ------------------------------------------------------------------------- 52. Q: WILL I RECEIVE A STOCK CERTIFICATE FOR THE SHARES OF COMMON STOCK THAT I PURCHASE? A: No. All shares will be issued in uncertificated form. We will send a profile report to you in place of a certificate after each transaction. Each December we distribute annual statements with the stock holdings and terms of each holder's outstanding purchase opportunities. 53. Q: CAN I HAVE THE SHARES REGISTERED JOINTLY IN MY NAME AND MY SPOUSE'S NAME? A: Yes. You can register shares in the names of you and your spouse as joint tenants, provided both you and your spouse sign the exercise form. See Questions 56 through 59 for more information. If you are utilizing the deferred payment program, both of you must also sign the Obligation Note, which is included with the exercise forms. ---------------------------------------------------------------------- | CANADA BASED EMPLOYEES: | | | | To register shares as joint tenants in your name and | | your spouse's name, you must first transfer the | | shares to such joint holding following your exercise | | of your purchase opportunity. Canadian securities | | laws generally do not permit a trade of shares by | | Canadian-resident holders. However, we obtained | | relief from each of the Ontario and Quebec | | Securities Commissions from restrictions on transfer | | that otherwise would apply. The relief granted by | | the commissions permits an employee to transfer | | shares to prescribed groups of persons, including | | his or her spouse (see Question 57). To register | | shares in the names of you and your spouse as joint | | tenants, both you and your spouse must sign the | | exercise form. | | | | There may be tax consequences from registering | | shares in joint name that differ from the | | consequences of registering them in solely the | | employee's name. You are urged to consult with your | | tax advisor if you are considering registration in | | joint name. | ---------------------------------------------------------------------- 54. Q: WILL I RECEIVE DIVIDENDS ON THE COMMON STOCK? A: If the board of directors declares a dividend, holders of common stock on the dividend record date will be entitled to receive that dividend. 55. Q: WILL I BE ENTITLED TO VOTE ON ANY MATTERS SUBMITTED TO A VOTE OF ARAMARK CORPORATION STOCKHOLDERS? A: Yes. You will generally be free to vote your shares in any manner you choose on any matters properly presented to the stockholders. (See sections 12 and 16.04 of the stockholders' agreement) - ------------------------------------------------------------------------- - --TRANSFERRING SHARES - ------------------------------------------------------------------------- 56. Q: MAY I TRANSFER MY SHARES OF COMMON STOCK? A: Except in limited circumstances, you may not sell or otherwise transfer your shares of common stock. (See section 2.01 of the stockholders' agreement) 57. Q: MAY I TRANSFER MY SHARES OF COMMON STOCK FOR ESTATE OR TAX PLANNING PURPOSES? A: Yes. You may transfer your shares for estate or tax planning purposes as gifts to your spouse, child, grandchild, or parent or to a trust for the benefit of any of them or to a qualifying charitable organization. You may also make other transfers to your family members, their trusts, or other entities if the transfer is approved by the board of directors. (See section 3.01 of the stockholders' agreement) ---------------------------------------------------------------------- | CANADA BASED EMPLOYEES: | | | | Canadian securities laws generally do not permit | | trades of shares by Canadian-resident holders. We | | obtained some relief from each of the Ontario and | | Quebec Securities Commissions from restrictions on | | transfer that otherwise would apply. | 18 | The relief granted by the Ontario Securities | | Commission permits Ontario-resident employees and | | senior officers of ARAMARK Canada Ltd. and its | | subsidiaries to transfer shares only to eligible | | persons provided it is done in compliance with the | | stockholders' agreement. Subsequent transfers of | | shares are similarly restricted to other eligible | | persons. Eligible persons are | | | | o spouses of employees; | | | | o minor children of employees; | | | | o corporations controlled by employees and/or their | | spouses when the employee is an officer and director | | of the corporation and when all the shares of the | | corporation are owned at all times by any | | combination of the employee, the spouse of the | | employee, children of the employee, children of the | | employee's spouse and offspring of children of the | | employee; and | | | | o trusts in which all the beneficiaries are any | | combination of the employee, the spouse of the | | employee, children of the employee, children of the | | employee's spouse and offspring of children of the | | employee, and in which at least one of the trustees | | is the employee. | | | | The relief granted by the Quebec Securities | | Commission permits Quebec-resident holders of shares | | to transfer shares in accordance with the | | stockholders' agreement. Pursuant to the | | stockholders' agreement, you may transfer your | | shares for estate or tax planning purposes as gifts | | to your spouse, child, grandchild, or parent or to a | | trust for the benefit of any of them or to a | | qualifying charitable organization. Pursuant to the | | stockholders' agreement, you may also make other | | transfers to your family members, their trusts, or | | other entities if the transfer is approved by the | | board of directors. (See section 3.01 of the | | stockholders' agreement) | | | | We understand that when shares are gifted to | | permitted transferees, a taxable disposition may be | | deemed to occur, depending on the employee's | | relationship to the permitted transferee. | | Furthermore, subsequent dividends paid on shares | | gifted to permitted transferees and gains realized | | from subsequent sales of gifted shares may be | | attributed back to the employee, again depending on | | the employee's relationship to the permitted | | transferee. You are urged to discuss with your tax | | advisor the tax consequences of any gift of shares | | that you may consider making. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | MEXICO BASED EMPLOYEES: | | | | We understand that transfers of shares to permitted | | transferees may be treated as taxable dispositions | | of those shares, subject to taxation. You are urged | | to discuss with your tax advisor the tax | | consequences of any gift of shares that you may | | consider making. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | SPAIN BASED EMPLOYEES: | | | | We understand that transfers of shares to permitted | | transferees may be treated as taxable dispositions | | of those shares, subject to capital gain taxation. | | You are urged to discuss with your tax advisor the | | tax consequences of any gift of shares that you may | | consider making. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | UK BASED EMPLOYEES: | | | | We understand that transfers of shares to permitted | | transferees may be treated as taxable dispositions | | of those shares, subject to capital gain taxation, | | depending on the employee's relationship to the | | permitted transferee. You are urged to discuss with | | your tax advisor the tax consequences of any gift of | | shares that you may consider making. | ---------------------------------------------------------------------- 58. Q: ARE PERMITTED TRANSFERS SUBJECT TO ANY CONDITIONS? A: Yes. The transferee must sign a form available from ARAMARK confirming that he or she is acquiring the shares subject to all the terms and conditions of the stockholders' agreement. The form must be delivered to ARAMARK before the transfer. (See section 2.03(a) of the stockholders' agreement) 59. Q: WHEN WILL I BE ABLE TO TRANSFER MY SHARES FREELY WITHOUT HAVING TO COMPLY WITH THE RESTRICTIONS ON TRANSFER CONTAINED IN THE STOCKHOLDERS' AGREEMENT? A: The stockholders' agreement will continue in force unless the stockholders who are parties to the agreement and ARAMARK vote to terminate or change it. (See section 11 of the stockholders' agreement) - ------------------------------------------------------------------------- - --PLEDGING SHARES - ------------------------------------------------------------------------- 60. Q: MAY I PLEDGE MY SHARES OF ARAMARK COMMON STOCK? A: Yes. You may pledge your shares to a 19 commercial bank, savings and loan institution, or any other lending or financial institution as security for your indebtedness. However, you may do so only if the lender agrees that, upon realization of its security, the lender will dispose of the shares only in compliance with the terms of the stockholders' agreement. (See section 3.02 of the stockholders' agreement) If you are eligible and elect to participate in ARAMARK's deferred payment program, you will be required to pledge shares to ARAMARK (see Question 34). 61. Q: WILL THE PLEDGED SHARES BE SUBJECT TO THE STOCKHOLDERS' AGREEMENT? A: Yes. 62. Q: WILL I BE ABLE TO SELL PLEDGED SHARES IN THE INTERNAL MARKET OR UNDER THE EMERGENCY BUYBACK PROGRAM? A: Yes. However, for shares pledged to ARAMARK under the deferred payment program, your entire deferred payment obligation will become due at the time of such sale. - ------------------------------------------------------------------------- - --APPRAISAL PRICE - ------------------------------------------------------------------------- 63. Q: WHAT IS THE APPRAISAL PRICE OF THE COMMON STOCK USED FOR? A: The appraisal price is the price at which we grant stock purchase opportunities to employees and the price at which we repurchase common stock under the stockholders' agreement. (See section 1.02 of the stockholders' agreement) 64. Q: HOW WILL I KNOW WHAT THE APPRAISAL PRICE OF THE COMMON STOCK IS? A: Our current practice is to have the common stock appraised quarterly - December 1, March 1, June 1, September 1 - by an independent appraiser. The appraisal price at December 1, 1999 was $15.20. We generally include the appraisal price with the Chairman's quarterly letter to shareholders. Additionally, you can obtain the most recent appraisal price by calling 888-96-OWNER. 65. Q: HOW HAS THE APPRAISAL PRICE PERFORMED? A: The appraisal price, adjusted for stock splits, has increased continually since the 1984 management buyout at a compound annual rate of approximately 30%. The adjusted appraisal price at each December for the last 10 years and the percentage increase year over year are set forth in the following table. Of course, past performance is no guaranty of future results. APPRAISAL PRICE HISTORY --------------------------------------------------------- DECEMBER 1, APPRAISAL PRICE PERCENTAGE INCREASE 1989 $ 2.00 1990 $ 2.39 19.5% 1991 $ 2.83 18.4% 1992 $ 3.39 19.8% 1993 $ 3.73 22.3%* 1994 $ 4.42 18.5% 1995 $ 4.92 11.3% 1996 $ 5.57 13.2% 1997 $ 8.30 49.0% 1998 $11.90 43.4% 1999 $15.20 27.7% --------------------------------------------------------- * Includes effect of the special dividend paid in April 1993. 66. Q: WHO DETERMINES THE APPRAISAL PRICE? A: Each year the board of directors selects an independent appraisal firm to act as appraiser of the common stock. Houlihan Lokey Howard & Zukin Financial Advisors, Inc. is the current appraiser. We have used Houlihan for our quarterly appraisals since 1994. We paid Houlihan fees of approximately $200,000 plus reimbursement of expenses for appraisal and other services rendered to ARAMARK during the 12 months prior to the date of this prospectus. In addition, we agreed to indemnify Houlihan against enumerated liabilities that it might incur in connection with the preparation of the appraisal or otherwise as a result of the services that it rendered. 67. Q: WHAT INFORMATION DOES THE APPRAISER CONSIDER IN RENDERING ITS APPRAISALS? A: In rendering its appraisals, Houlihan generally o holds interviews and discussions with key senior corporate officers at ARAMARK's corporate headquarters in Philadelphia, Pennsylvania; o reviews the history and nature of 20 ARAMARK; o reviews the financial data bearing on recent and prospective operations, including ARAMARK's 10-K and 10-Q filings with the SEC, other recent filings with the SEC, audited and interim financial statements, and internal financial and operating segment data as well as long-term financial forecasts of ARAMARK; o reviews and analyzes ARAMARK's operating segments and their prospects; o examines industry and capital market information deemed relevant to the assessment of investment risk and investment return attributes of the common stock; and o analyzes any other factors that it considers necessary under the circumstances. ARAMARK data and forecasts reviewed by Houlihan include operating results, business plans, and strategic plans that are not made generally available to the stockholders of ARAMARK. 68. Q: HOW DOES THE APPRAISER DETERMINE THE APPRAISAL PRICE? A: The appraiser determines the appropriate methodology for its appraisal. Houlihan currently bases its appraisals on market capitalization approaches and on income approaches, including discounted cash flow analysis, to arrive at an aggregate equity value. Houlihan also gives consideration to various qualitative factor considerations, including limitations on the marketability of the common stock resulting in part from the restrictions imposed by the stockholders' agreement. The most recent appraisal, dated December 1, 1999, included an approximate 40% discount from aggregate equity value with respect to qualitative factor considerations. - ------------------------------------------------------------------------- SALES WHILE EMPLOYED - ------------------------------------------------------------------------- - ------------------------------------------------------------------------- - --GENERAL - ------------------------------------------------------------------------- 69. Q: WILL I BE ABLE TO SELL SHARES BACK TO ARAMARK? A: Yes. Primarily, you will be able to sell your shares to ARAMARK in the internal market. We also provide an emergency buyback program to accommodate limited instances when unanticipated emergencies arise. We anticipate that the combination of the internal market and the emergency buyback program should provide adequate liquidity to all management investors in an orderly and equitable basis. We also provide an offer-to-sell procedure that could be used. These three methods for realizing liquidity are described more fully below (see Questions 72, 73 and 74). Our ability to repurchase any shares is subject to our continued strong operating and financial performance. (See section 3.03 of the stockholders' agreement) 70. Q: WILL ARAMARK INFORM ME PRIOR TO THE TIME THAT I PURCHASE SHARES FROM ARAMARK (THROUGH THE EXERCISE OF A PURCHASE OPPORTUNITY OR OTHERWISE) OR SELL SHARES TO ARAMARK (IN THE INTERNAL MARKET OR OTHERWISE) OF ANY PENDING OR POTENTIAL TRANSACTION THAT COULD INCREASE OR DECREASE THE VALUE OF THE STOCK? A: No. We will not disclose any pending or potential transaction in connection with your decision to purchase or sell any shares of ARAMARK stock. It is in the best interests of ARAMARK and our stockholders taken as a whole for ARAMARK to be able to conduct orderly transactions in common stock on a continual basis (including in connection with the internal market and repurchases upon termination of employment) and for ARAMARK concurrently to be able to consider from time to time on a confidential basis potential transactions that could affect the fair market value and/or the appraisal price of the shares. We do not disclose publicly our projections or the status of any transaction that may be under consideration. (See section 8 of the stockholders' agreement) 71. Q: WHAT ARE THE TAX CONSEQUENCES IF I SELL SHARES? A: For U.S. based employees, the sale of common stock is a taxable event. In most cases, any gain or loss upon disposition of shares (measured by reference to the appraisal price of the shares on the date of 21 exercise) may be treated as capital gain or loss. You are urged to discuss your particular situation with your tax advisor. ---------------------------------------------------------------------- | BELGIUM BASED EMPLOYEES: | | | | We understand that any gain is exempt from the | | Belgian income tax. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | CANADA BASED EMPLOYEES: | | | | We understand that, under current Canadian federal | | income tax laws, the sale of shares is a taxable | | event with the following effect. | | | | The amount by which the sale price exceeds (or are | | exceeded by) the adjusted cost base of the shares | | plus any costs of sale will be treated as capital | | gain (or capital loss) of the employee. | | | | The adjusted cost base of the shares acquired on the | | exercise of the purchase opportunity will be equal | | to the exercise price plus the amount of the taxable | | benefit realized. The adjusted cost base of the | | shares will be computed in Canadian dollars, using | | the Canada-U.S. exchange rate prevailing on the date | | of exercise. The adjusted cost base of all shares | | received on the exercise of a purchase opportunity | | will then be averaged with the adjusted cost base of | | other identical shares owned by the employee. | | | | The tax consequences of selling shares are not | | affected by whether you use the proceeds of such | | sale to exercise other purchase opportunities. | | Taxes due from the sale of shares must be paid in | | addition to the taxes due on the exercise of | | purchase opportunities. | | | | You are urged to discuss your particular situation | | with your tax advisor, including the records you | | need to keep to properly determine, from time to | | time, the average adjusted cost base of your shares. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | CZECH REPUBLIC BASED EMPLOYEES: | | | | We understand that if you sell the shares more than | | six months after you exercise your purchase | | opportunity, then any gain is exempt from the Czech | | income tax. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | GERMANY BASED EMPLOYEES: | | | | We understand that if you sell the shares more than | | 12 months after you exercise your purchase | | opportunity, then any gain is exempt from the German | | income tax. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | MEXICO BASED EMPLOYEES: | | | | We understand that for Mexican income tax purposes, | | the sale of stock is a taxable event. In most | | cases, any gain or loss upon disposition of shares | | may be treated as capital gain or loss. We | | understand that capital gains may be taxed in Mexico | | at the same rates as ordinary income but that | | certain adjustments to the tax basis of the stock | | may be made, increasing that basis and offsetting | | the effects of inflation during the period you held | | the stock. You are urged to discuss your particular | | situation with your tax advisor. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | SPAIN BASED EMPLOYEES: | | | | We understand that for Spanish income tax purposes, | | the sale of common stock is a taxable event. In | | most cases, any gain or loss upon disposition of | | shares may be treated as capital gain or loss. We | | understand that capital gains may be taxed in Spain | | under several alternative rules, depending on how | | long you held the shares. You are urged to discuss | | your particular situation with your tax advisor. | | | | As well as completing the internal market forms, you | | will be required to complete form MC-10B and file it | | with the Directorate for Foreign Investments and | | Commercial Transactions. | | | | In addition, if the aggregate sale price for the | | shares that you are selling is more than 1,000,000 | | ptas., then you are also required to complete form | | B3 and file it with a registered financial entity. | | | | In addition, if the aggregate sale price for the | | purchase opportunities that you are exercising is | | more than 500,000 ptas. (including required | | withholding) and you are depositing all or part of | | the sale price into a bank, then you must notify the | | bank of the details of the transaction. | | | | You should consult with your tax advisor to help you | | complete and file any required forms and notices. | | Accurate reporting of the transaction is your | | obligation. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | UNITED KINGDOM BASED EMPLOYEES: | | | | We understand that selling shares is a taxable event | | under capital gains rules. Capital gains tax would | | be calculated on the proceeds less | 22 | the appraisal price of the shares at the time of exercise. | | | | An annual exemption, currently (pound)6,800, may be | | available to offset this charge. You should discuss | | your particular situation with your tax advisor. | ---------------------------------------------------------------------- - ------------------------------------------------------------------------- - --INTERNAL MARKET - ------------------------------------------------------------------------- 72. Q: WHAT IS THE INTERNAL MARKET? A: The internal market is a process whereby, on a periodic basis, we offer to purchase some of your shares of common stock. At the time of the offer, each management owner will then be able to decide whether to accept or reject the offer. The internal market provides the primary way for management owners to sell some of their stock holdings. The internal market policy approved for 2000 consists of four quarterly repurchase periods, and subject to further review and approval by the board of directors prior to each subsequent annual offering, is as follows: - ------------------------------------------------------------------------- | INTERNAL MARKET | | --------------- | | | | OFFERING PERIODS: | | December 15 to January 15; | | March 15 to April 15; | | June 15 to July 15; | | September 15 to October 15. | |-----------------------------------------------------------------------| | OFFEREES: | | All management owners. | |-----------------------------------------------------------------------| | PURCHASE PRICE: | | The most recent available appraisal price as of | | December 1, March 1, June 1, September 1. | |-----------------------------------------------------------------------| | PAYMENT TERMS: | | Cash. | |-----------------------------------------------------------------------| | INDIVIDUAL GUIDELINE FOR EACH OFFERING PERIOD: | | Up to $250,000. Requests for larger sales can be made | | by contacting either Marie Paschall (215-238-3194) or | | Russell Garrison (215-238-3238). | |-----------------------------------------------------------------------| | REQUIRED HOLDING PERIOD: | | Shares owned for less than six months or used in a | | stock-for-stock exchange within the prior six months | | are not eligible for resale in the internal market. | - ------------------------------------------------------------------------- - ------------------------------------------------------------------------- - --EMERGENCY BUYBACK PROGRAM - ------------------------------------------------------------------------- 73. Q: WHAT IS THE EMERGENCY BUYBACK PROGRAM? A: From time to time there may be compelling circumstances when an unanticipated emergency arises, which may cause a management owner to request us to repurchase shares. Each request will be reviewed individually, taking into account all relevant circumstances. - ------------------------------------------------------------------------- - --OFFER-TO-SELL - ------------------------------------------------------------------------- 74. Q: WILL I BE ABLE TO SELL MY SHARES IN ANY OTHER WAY? A: The anticipated typical procedure for selling shares is through the internal market. However, you may also offer a portion of your shares to us at the current appraisal price of the common stock. In the event we do not purchase your shares, you could offer to sell your shares within the next 90 days to a third party who agrees to abide by all the terms of the stockholders' agreement, on the same terms offered to us. (See section 4 of the stockholders' agreement) Upon termination for any reason, subject to our right to call your shares (see Question 76), you could offer to sell your shares as described above. ---------------------------------------------------------------------- | CANADA BASED EMPLOYEES: | | | | We understand that the Canadian securities laws | | generally do not allow any sale of shares other than | | sales back to ARAMARK. However, as described under | | Question 57 above, we have obtained some relief from | | Canadian securities laws that would permit, in the | | case of Ontario-resident employees, a sale of shares | | to eligible persons and, in the case of | | Quebec-resident holders of shares, a sale of shares | | to a third party, provided that the transfers are | | made in compliance with the stockholders' agreement | | and further trades by such transferees will be | | subject to the same limitations. | ---------------------------------------------------------------------- 75. Q: ARE THERE ANY RESTRICTIONS TO WHOM I CAN SELL MY SHARES? A: Yes. The stockholders' agreement provides that even if we do not purchase your shares, you cannot sell your shares to anyone who we do not approve as a suitable investor in a privately-owned services management company or to anyone who would hold more than 10% of the common stock after sale. However, we have agreed to waive these restrictions. - ------------------------------------------------------------------------- SALES UPON TERMINATION OF EMPLOYMENT - ------------------------------------------------------------------------- - ------------------------------------------------------------------------- - --GENERAL - ------------------------------------------------------------------------- 76. Q: IF MY EMPLOYMENT WITH ARAMARK AND ITS SUBSIDIARIES IS TERMINATED FOR ANY REASON, DOES ARAMARK HAVE THE RIGHT TO REQUIRE ME TO SELL MY SHARES TO ARAMARK? A: Yes. Our right to require you to sell your shares is described as a call. At any time during the 10 years following the termination of your employment, we have the right to call any or all of your shares and any or all of the shares of all of your permitted transferees. We intend to exercise promptly our call right for all shares if you are terminated for any reason. (See section 6 of the stockholders' agreement) 77. Q: DO THE CALL RIGHTS APPLY TO A TERMINATION OF MY EMPLOYMENT WITH ARAMARK AND ITS SUBSIDIARIES THAT IS BEYOND MY CONTROL? A: Yes. The call rights apply to all terminations of employment with ARAMARK and its subsidiaries without regard to cause, including death, permanent and complete disability, voluntary or involuntary termination of employment, and retirement. For example, if we were to sell the division or subsidiary in which you work, then the call rights would apply even though you were continuing to work in the same division or subsidiary. (See section 6 of the stockholders' agreement) 78. Q: HOW WILL I BE PAID FOR MY SHARES WHEN THEY ARE CALLED? A: In almost all cases, we will purchase your shares at the appraisal price of the common stock in effect as of your date of termination of employment. If we give notice that we are exercising the call more than 120 days after the time of termination of employment, we will repurchase your shares at the lesser of the appraisal price at the time of termination plus 8% simple interest to the time of such notice, or the appraisal price at the time of such notice. (See section 6.02 of the stockholders' 24 agreement) See Questions 83 through 88 for a description of the payment terms. 79. Q: WHAT IF ARAMARK CANNOT REPURCHASE MY SHARES PURSUANT TO THE EXERCISE OF A PUT, DESCRIBED BELOW, OR A CALL BECAUSE IT WOULD CAUSE A DEFAULT UNDER ONE OF ARAMARK'S LOAN AGREEMENTS OR WOULD VIOLATE APPLICABLE LAW? A: Your shares would be repurchased on the earliest practicable date when such repurchase could be effected in compliance with such loan agreement and applicable law. The price to be paid could be affected because of such delay. (See section 10.01 of the stockholders' agreement) 80. Q: IF I VOLUNTARILY TERMINATE MY EMPLOYMENT, ARAMARK HAS THE RIGHT TO CALL MY SHARES OF COMMON STOCK. WILL ARAMARK INFORM ME PRIOR TO THE TIME I TERMINATE MY EMPLOYMENT OF ANY PENDING OR POTENTIAL TRANSACTION THAT COULD INCREASE THE VALUE OF THE COMMON STOCK? A: No. We will not disclose any pending or potential transaction in connection with your decision to terminate your employment (or in connection with your decision to exercise a put or in any other circumstance). It is in the best interests of ARAMARK and our stockholders taken as a whole for ARAMARK to be able to conduct orderly transactions in common stock on a continual basis (including in connection with the internal market and repurchases upon termination of employment) and for ARAMARK concurrently to be able to consider from time to time on a confidential basis potential transactions that could affect the fair market value and/or the appraisal price of the shares. We do not disclose publicly our projections or the status of any transaction that may be under consideration. (See section 8 of the stockholders' agreement) 81. Q: WILL I BE ABLE TO REQUIRE ARAMARK TO REPURCHASE SHARES? A: Generally, no. However, upon your death, complete disability or normal retirement, you or your estate, as appropriate, subject to our financing agreements, can require us to purchase up to 30% of your shares. This right to require us to purchase shares is described as a put. We will be required to purchase these shares for cash at the current appraisal price of the common stock. We intend to purchase (call) your remaining shares (see Question 76). However, in the event we do not call your shares, then you could offer to sell to a third party the remaining shares (see Question 74). (See section 5 of the stockholders' agreement) 82. Q: WHAT ARE THE TAX CONSEQUENCES IF I SELL SHARES? A: The tax consequences from the sale of shares upon termination of employment are substantially similar to the tax consequences of sales while employed. See the answers to Question 71 which address the applicable tax consequences to U.S. based employees and employees based in countries other than the U.S. See Question 88 regarding installment treatment in cases in which an installment note is used to pay a portion of the sale price. You are urged to discuss your particular situation with your tax advisor. - ------------------------------------------------------------------------- - --STOCK REPURCHASE POLICY - ------------------------------------------------------------------------- 83. Q: WHAT IS THE STOCK REPURCHASE POLICY? A: Our stock repurchase policy provides for payment terms that are generally more favorable to you than the payment terms provided for in the stockholders' agreement. (See section 1.08 of the stockholders' agreement) This policy, which is described below (see Question 85), may be amended, discontinued, or varied for all repurchase transactions generally or for any specific repurchase transaction at any time by ARAMARK without notice. The policy does not affect the total repurchase price that you will be paid for your shares. 84. Q: ARE THERE ANY CONDITIONS TO GETTING THE GENERALLY MORE FAVORABLE PAYMENT TERMS UNDER THE STOCK REPURCHASE POLICY? A: Yes. To qualify for the payment terms under the stock repurchase policy, you must agree 25 to the release contained in ARAMARK's standard repurchase agreement. Otherwise, you will receive the payment terms provided for in the stockholders' agreement. 85. Q: WHAT DOES THE STOCK REPURCHASE POLICY CURRENTLY PROVIDE IF I TERMINATE MY EMPLOYMENT AND MY SHARES ARE CALLED, OR IF I AM ENTITLED TO EXERCISE A PUT AND DO SO, AND THE REMAINDER OF MY SHARES ARE CALLED? A: You will receive a cash payment plus, depending upon the total repurchase price, an installment note with up to three annual principal installments, as set forth in the following table. ------------------------------------------------------------------ | STOCK REPURCHASE POLICY | |----------------------------------------------------------------| | TOTAL REPURCHASE | | PRICE* PAYMENTS | |----------------------------------------------------------------| | Up to $600,000 Initial payment of total | | repurchase price* | |----------------------------------------------------------------| | Up to $1,200,000 Initial payment of $600,000 | | plus one installment of balance | |----------------------------------------------------------------| | Up to $1,800,000 Initial payment of $600,000 | | plus one installment of $600,000| | plus second installment of | | balance | |----------------------------------------------------------------| | Up to $2,400,000 Initial payment of $600,000 | | plus two installments of | | $600,000 each plus third | | installment of balance | |----------------------------------------------------------------| | More than $2,400,000 Initial payment of 25% plus | | three equal installments | | of balance | ------------------------------------------------------------------ * After repayment of any deferred payment obligations - ------------------------------------------------------------------------- - --INSTALLMENT NOTES - ------------------------------------------------------------------------- 86. Q: WHAT ARE THE TERMS OF THE INSTALLMENT NOTES? A: The annual principal payments on the installment notes are set pursuant to the stock repurchase policy. Interest will be paid semi-annually and the rate will be fixed at the applicable federal rate, which currently varies approximately from 5.66% to 6.37%, depending on the term of the note. (See section 1.08 of the stockholders' agreement) The form of installment note, including the subordination terms, is set forth in Exhibit A to the stockholders' agreement. 87. Q: DOES THE STOCK REPURCHASE POLICY PROVIDE FOR AN ALTERNATIVE INTEREST RATE ON THE PROMISSORY NOTE? A: Yes. Instead of a fixed interest rate for the entire life of the promissory note, you may make a one-time irrevocable election at the time of repurchase for the rate to reset annually on the date of each principal payment to the applicable federal rate then in effect. 88. Q: IF ARAMARK PURCHASES MY SHARES USING, IN PART, AN INSTALLMENT NOTE, WILL I HAVE TO PAY TAX ON THE ENTIRE GAIN IN THE FIRST YEAR? A: You may be able to defer tax on some or all of your gain. For U.S. based employees, the purchase using a note usually will qualify for installment treatment under the U.S. income tax laws. You should be able to recognize taxable gain in proportion to the cash payments of principal you will receive over the years. You should consult with your tax advisor to determine if installment sale treatment is advantageous to you and how you should report it on your tax returns. ---------------------------------------------------------------------- | BELGIUM BASED EMPLOYEES: | | | | We understand that gain on the sale of shares is | | tax-exempt. The interest payable on the installment | | note, however, is treated as movable income and is | | taxable at a rate of 15%. Also, there may be an | | additional 15% withheld under U.S. tax laws. You | | should consult with your tax advisor to determine if | | installment sale treatment is advantageous to you | | and how you should report it on your tax returns. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | CANADA BASED EMPLOYEES: | | | | We understand that you may be able to defer tax on | | some or all of your gain. The purchase using a note | | usually will qualify for installment treatment under | | the Canadian income tax laws. You should be able to | | recognize the taxable gain in proportion to the | | cumulative cash payments of principal you will | | receive over the years if you file Revenue Canada | | form T2017 with your tax returns, but at a minimum | | you must recognize one fifth of the gain each year | | for five years. The interest payable on the | 26 | installment is subject to a withholding tax of 10%, | | which can be claimed as a foreign tax credit or | | deducted on your tax return. You should consult | | with your tax advisor to determine if installment | | sale treatment is advantageous to you and how you | | should report it on your tax returns. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | CZECH REPUBLIC BASED EMPLOYEES: | | | | We understand that if the shares have been held at | | least six months, the gain is tax-exempt. The | | interest paid on the installment note, however, is | | treated as capital income. You should consult with | | your tax advisor to determine if installment sale | | treatment is advantageous to you and how you should | | report it on your tax returns. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | GERMANY BASED EMPLOYEES: | | | | We understand that if the shares have been held at | | least 12 months, the gain is tax-exempt. The | | interest payable on the installment note, however, | | is treated as interest income. Any interest income | | from the installment note is taxable income to the | | extent your total dividend and interest income in | | any calendar year exceeds the following amounts: | | | | o for calendar year 1999 and before, DM 6,100 (or DM | | 12,200 for jointly filing married employees); and | | | | o for calendar year 2000 and after, DM 3100 (or DM | | 6,200 for jointly filing married employees). | | | | You should consult with your tax advisor to | | determine if installment sale treatment is | | advantageous to you and how you should report it on | | your tax returns. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | MEXICO BASED EMPLOYEES: | | | | We understand that you may be able to defer tax on | | some or all of your gain. The purchase using a note | | usually will qualify for installment treatment under | | Mexican income tax laws. You should be able to | | recognize taxable gain in proportion to the cash | | payments of principal you will receive over the | | years. The interest payable on the installment is | | subject to a withholding tax of 15%, which you may | | be able to claim as a foreign tax credit or deduct | | on your tax return. You should consult with your | | tax advisor to determine if installment sale | | treatment is advantageous to you and how you should | | report it on your tax returns. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | SPAIN BASED EMPLOYEES: | | | | We understand that you may be able to defer tax on | | some or all of your gain. The purchase using a note | | usually will qualify for installment treatment under | | Spanish income tax laws. You should be able to | | recognize taxable gain in proportion to the cash | | payments of principal you will receive over the | | years. The interest payable on the installment is | | subject to a withholding tax of 10%, which you may | | be able to claim as a foreign tax credit or deduct | | on your tax return. You should consult with your | | tax advisor to determine if installment sale | | treatment | 27 | is advantageous to you and how you should | | report it on your tax returns. | ---------------------------------------------------------------------- ---------------------------------------------------------------------- | UNITED KINGDOM BASED EMPLOYEES: | | | | We understand that you may not be able to defer tax | | on your gain. The selling of shares for an | | installment note is a taxable event under United | | Kingdom capital gains tax laws. In addition, any | | interest paid on the note will be subject to income | | tax. You should consult with your tax advisor to | | determine if installment sale treatment is | | advantageous to you and how you should report it on | | your self assessment form. | ---------------------------------------------------------------------- THE ARAMARK OWNERSHIP PROGRAM We designed the ARAMARK Ownership Program to provide an opportunity for selected management employees of ARAMARK and its subsidiaries to acquire an ownership interest in ARAMARK and thereby give them a more direct and continuing interest in the future success of our business. Under the Program, the direct ownership in ARAMARK has increased from 62 original management investors in 1984 to approximately 2,500 management investors today, owning directly approximately 70% of the equity. In addition, at October 1, 1999, management employees held stock purchase opportunities for an additional 20,529,608 shares. ARAMARK's senior management believes that management ownership significantly contributes to our success, and intends to continue to use the program to expand both the number of management investors and their percentage ownership. The program has used or uses the 1984 Stock Option Plan and the Combined Stock Ownership Plan. These plans allow us to continue offering stock purchase opportunities (sometimes called options) to selected employees. This prospectus relates to the grant and exercise of installment stock purchase opportunities. Through installment stock purchase opportunities, we have granted to management employees an opportunity to invest in, or increase their investment in, ARAMARK. 1984 Option Plan. The board of directors adopted and the stockholders approved the 1984 Option Plan in December 1984 in connection with the management buyout. The stockholders approved amendments to the plan in February 1987. The plan provides for the issuance of shares of common stock through the granting of incentive stock options and/or nonqualified options. On October 1, 1999, 312,600 stock purchase opportunities were outstanding under the plan. No additional stock purchase opportunities can be granted under the plan. Combined Stock Ownership Plan. In 1995, the board of directors adopted and in February 1996 the stockholders approved the Combined Stock Ownership Plan, which amends and combines the 1987 Stock Option Plan and the 1991 Stock Ownership Plan. 1987 Option Plan. The board of directors adopted the 1987 Option Plan in May 1987, and stockholders approved the plan in February 1988. In February 1996, the plan became part of the Combined Stock Ownership Plan. The plan provides for the issuance of shares of common stock through the granting of incentive stock options and/or nonqualified options. On October 1, 1999, 3,080,916 stock purchase opportunities were outstanding under the plan. No additional stock purchase opportunities can be granted under the plan. 1991 Ownership Plan. The board of directors adopted the 1991 Ownership Plan in November 1991 and amended it in 1994. Stockholders approved the plan in February 1995. In February 1996, the plan became part of the Combined Stock Ownership Plan. The plan provides for the issuance of shares of common stock through the granting of nonqualified options. On October 1, 1999, 16,611,395 stock purchase opportunities were outstanding under the plan and 20,990,139 were available for future grants. 1996 Directors Stock Ownership Plan. The board of directors approved the directors plan in February 1996. The directors plan provides for the issuance of shares of common stock through grants of nonqualified options to directors who are not employees of ARAMARK. On October 1, 1999, 524,697 stock purchase opportunities were outstanding under the directors plan and 145,200 were available for future grants. This prospectus does not relate to the grant or exercise of stock purchase opportunities under the directors plan, and references to the plans do not include the directors plan. 28 In accordance with the terms of the plans, the purchase price for shares will not be less than the fair market value of the shares, based on the most recent available independent appraisal, on the date of the grant. Shares issued under the plans are subject to the stockholders' agreement. The plans provide that the terms of purchase opportunities outstanding under the plans and the number of shares authorized under the plans will be appropriately adjusted upon the declaration of stock dividends and upon the occurrence of other events described in the plans. The plans grant authority to the Human Resources, Compensation and Public Affairs Committee, which consists of five members of the board of directors. The plans authorize the committee to grant purchase opportunities and to determine the number of shares to be offered to each selected key employee. The term "key employee" is not defined in the plans, and subject to the express provisions of the plans, the committee has complete authority to determine the employees who receive purchase opportunities. As a result, the number of employees eligible to participate in the plans is not determinable. Generally, you may not transfer purchase opportunities. No purchase opportunity can be subject to attachment, execution, or levy of any kind. Generally, each purchase opportunity shall be exercisable only by the employee to whom it is granted and only while an employee of ARAMARK or a subsidiary or any other entity in which ARAMARK continues to own an equity interest and which the board of directors designates. We will use the net proceeds from the sale of shares pursuant to exercises of purchase opportunities for general corporate purposes. The plans are not subject to any provisions of the Employee Retirement Income Security Act of 1974 and are not qualified within the meaning of Section 401(a) of the Internal Revenue Code. The board of directors or the committee may establish appropriate procedures for the administration of the plans. At the time a purchase opportunity is granted, it may also include additional terms and conditions that are not inconsistent with the plans. The decision of the committee, or the board for certain matters described in the plans, shall be final and binding on all persons in interest, including employees, ARAMARK, and its stockholders. The Board may amend the plans as it deems desirable, except that certain amendments also require stockholder approval. Neither the plans nor any purchase opportunity granted under the plans gives any employee the right to continue in the employ of ARAMARK or its subsidiaries or limits in any respect the right of ARAMARK or any subsidiary to terminate such employee. DESCRIPTION OF EQUITY SECURITIES GENERAL The authorized capital of ARAMARK consists of 185,000,000 shares. Approximately 2,500 management investors hold all of the outstanding shares of class B common stock. There is no established public trading market for the common stock of ARAMARK. The capitalization of ARAMARK as of October 1, 1999 was: ------------------------------------------------------------------ | CAPITALIZATION | |----------------------------------------------------------------| | CLASS PAR VALUE AUTHORIZED OUTSTANDING | |----------------------------------------------------------------| | class B common $ .01/share 150,000,000 65,569,596 | |----------------------------------------------------------------| | class A common $ .01/share 25,000,000 2,719,453 | |----------------------------------------------------------------- | preferred $1.00/share 10,000,000 0 | ------------------------------------------------------------------ As of October 1, 1999, there were 20,529,608 purchase opportunities outstanding. THE CLASS A COMMON STOCK AND THE CLASS B COMMON STOCK The following summarizes material provisions of ARAMARK's restated certificate of incorporation. Voting. A holder is entitled to one vote for each share of class A common stock and each share of class B common stock that he or she holds. Generally, class A and class B common stockholders vote together. Holders of class A common stock and class B common stock vote separately as classes on amendments to ARAMARK's certificate of incorporation that may alter or change the powers, preferences or special rights of their classes so as to affect them adversely, and such other matters as may require class votes under the Delaware General Corporation Law. The certificate of incorporation does not provide for cumulative voting. Dividends and Other Distributions -- including Distributions upon Liquidation of ARAMARK. Dividends on the class A common stock and the class B common stock are paid when declared by the board of directors and permitted under ARAMARK's loan agreements. When the board declares a dividend or other distribution, each share of class A common stock is entitled to ten times the dividends and other distributions paid to each share of class B common stock. If the board declares a dividend or distribution that is paid in common stock, only class A common stock will be distributed to class A stockholders and only class B common stock will be distributed to class B stockholders. In no event may either class A common stock or class B common stock be split, divided or combined unless the other is split, divided or combined equally. Convertibility. The class A common stock is not convertible. Subject to the prior approval of the board of directors, the class B common stock is convertible at all times, in whole or in part, and without cost to the stockholder, into class A common stock on the basis of ten shares of class B common stock for each share of class A common stock. The board of directors may at any time order the conversion of all the class B common stock into class A common stock on a ten-for-one basis. No Preemptive Rights. The class A common stock and class B common stock do not carry any preemptive rights enabling a holder to subscribe for or receive shares of stock of ARAMARK or any other securities convertible into shares of stock of ARAMARK. EXPERTS The audited consolidated financial statements and schedules incorporated by reference in this prospectus and elsewhere in the registration statement have been audited by Arthur Andersen LLP, independent public accountants, as indicated in their reports with respect thereto, and are included herein in reliance upon the authority of said firm as experts in giving said reports. We included the appraisal of Houlihan Lokey Howard & Zukin Financial Advisors, Inc., independent securities appraisers, and refer to that appraisal in this prospectus in reliance on the authority of Houlihan as an expert in securities valuations. DOCUMENTS INCORPORATED BY REFERENCE The SEC permits us to "incorporate by reference" information into this prospectus, which means that we can disclose important information to you by referring you to another document filed separately with the SEC. The information incorporated by reference is deemed to be part of this prospectus, except for information superseded by information in this prospectus. This prospectus incorporates by reference the following documents. These documents contain important information about ARAMARK and its finances. (1) ARAMARK's latest annual report on Form 10-K filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended. (2) All other reports filed by ARAMARK pursuant to Section 13(a) or 15(d) of the Exchange Act since the end of the fiscal year of the annual report referred to in (1) above. (3) All documents subsequently filed by ARAMARK pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act. 116733 30 ANNEX A AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT OF ARAMARK CORPORATION AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT dated as of the 14th day of December, 1994, which further amends and restates the Amended and Restated Stockholders' Agreement dated as of December 14, 1984 (the "AGREEMENT"), by and among ARAMARK CORPORATION (formerly The ARA Group, Inc. and ARA Holding Company), a Delaware corporation ("ARAMARK"), and the parties identified on the books of ARAMARK as "MANAGEMENT INVESTORS" or their "PERMITTED TRANSFEREES" or as "INDIVIDUAL INVESTORS" or "INSTITUTIONAL INVESTORS". In consideration of the terms and conditions herein contained, the parties hereto mutually agree as follows: The parties hereto (other than ARAMARK) and any other person who hereafter acquires equity securities of ARAMARK pursuant to the provisions of, and subject to the restrictions and rights set forth in, this Agreement are sometimes hereinafter referred to collectively, as the "STOCKHOLDERS" or, individually, as a "STOCKHOLDER." The Management Investors and the Individual Investors are sometimes hereinafter referred to collectively as the "INVESTOR GROUP." Institutional Investors and Individual Investors are sometimes hereinafter referred to collectively as "OUTSIDE INVESTORS." Unless otherwise explicitly set forth herein, the term "MANAGEMENT INVESTORS" shall mean only those individuals so identified on the books of ARAMARK, exclusive of such individuals' respective heirs, Permitted Transferees (as identified on the books of ARAMARK) or other Transferees (as defined in Section 2.03(a) hereof); provided that the Board of Directors of ARAMARK may, from time to time and in its sole discretion, designate any Stockholder then employed by ARAMARK or its Subsidiaries a "MANAGEMENT INVESTOR." Stockholders who are Permitted Transferees are identified as such on the books of ARAMARK, along with the identity of their respective transferors. Where a full-time employee or director has acquired or acquires equity securities of ARAMARK in joint tenancy with their spouses or in any other manner other than sole direct ownership, such employee or director is deemed to be a Management Investor and such record owner is deemed to be his or her Permitted Transferee. A Transferee who is not already a party to this Agreement, by executing the document referred to in Section 2.03(a) hereof, shall thereby become entitled to the benefits of this Agreement and shall be deemed to be an "INSTITUTIONAL INVESTOR", except: if such Transferee is an employee of ARAMARK, then he or she shall be deemed to be a "MANAGEMENT INVESTOR"; if such Transferee is a Transferee pursuant to Section 3.01 of an Individual Investor, then he or she shall be deemed to be an "INDIVIDUAL INVESTOR"; if such Transferee is a Transferee pursuant to Section 3.01 of a Management Investor (or of his or her Permitted Transferee), then he or she shall be deemed to be a "PERMITTED TRANSFEREE" of such Management Investor. Determination of the classification of a Stockholder by the Board of Directors shall be conclusive and binding on all parties hereto. ARAMARK's Class B Common Stock, par value $.01 per share ("CLASS B COMMON STOCK"), and Class A Common Stock, par value $.01 per share ("CLASS A COMMON STOCK") are collectively referred to herein as the "COMMON STOCK," and when so referred to shall be treated as one class to which all the provisions of this Agreement apply. Pursuant to ARAMARK's Restated Certificate of Incorporation (the "CERTIFICATE OF INCORPORATION"), upon the termination of employment of a Management Investor, the shares of Class B Common Stock held by such Management Investor and his or her Permitted Transferees shall be converted into shares of Class A Common Stock; and upon any transfer of shares of Class B Common Stock in accordance with the terms of this Agreement other than to a Management Investor or Permitted Transferee of a Management Investor, such shares shall be converted into shares of Class A Common Stock. Shares so converted shall continue to be subject to the terms and conditions of this Agreement. For purposes of this Agreement only, the employment of a Management Investor shall be deemed terminated if he or she shall cease to be a director or an active, full-time employee of ARAMARK or its Subsidiaries. Such termination of employment shall not change the designation of such person as a Management Investor. The parties hereto desire to restrict the sale, assignment, transfer, encumbrance or other disposition of the Common Stock, including issued and outstanding shares of Common Stock as well as shares of Common Stock which may be issued hereafter, or which may become issuable pursuant to the exercise of options, and to provide for certain rights and obligations with respect thereto as hereinafter provided. 1. CERTAIN DEFINITIONS. 1.01 "AFFILIATE" shall mean a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with another Person. 1.02 "APPRAISAL PRICE" of shares of Common Stock shall mean the fair market value of such shares, as determined by an Appraiser according to the most recent existing appraisal of shares of Common Stock, which appraisal shall be as of a date not more than six months prior to the use thereof. Such determination by the Appraiser shall be conclusive and binding on all Stockholders and ARAMARK. With respect to shares of Class A Common Stock resulting from the conversion of shares of Class B Common Stock pursuant to the terms of the Certificate of Incorporation, the "APPRAISAL PRICE OF (AN EQUIVALENT NUMBER OF) SHARES OF CLASS B COMMON STOCK" shall mean the Appraisal Price, had the conversion not occurred, of such shares of Class B Common Stock. 1.03 "APPRAISER" shall mean a firm headquartered in the United States of nationally recognized standing in the business of appraisal or valuation of securities which does not own any stock of ARAMARK and which has been selected by the Board of Directors to act as an independent appraiser. The Board of Directors shall review its selection of an Appraiser annually. 1.04 "CALL" or "CALLED" shall mean ARAMARK's option to purchase Common Stock from the holder thereof referred to in Sections 6 and 7 hereof. 1.05 "COMPLETELY DISABLED" and "COMPLETE DISABILITY" shall mean a "permanent and total disability" as now defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the "CODE"). 1.06 "NORMAL RETIREMENT" shall mean voluntary termination of employment with ARAMARK after attaining the age of 60, on at least 90 days prior written notice of such termination, where the retiree does not intend to, at the time of termination, and in fact does not, engage in full-time employment following such termination other than employment that is with a governmental or a charitable, non-profit organization and that is not competitive with ARAMARK. 1.07 "PERSON" shall mean a corporation, an association, a partnership, an organization, a business, an individual, a government or political subdivision thereof or a governmental agency. 1.08 "PROMISSORY NOTE" shall mean a subordinated installment note of ARAMARK substantially in the form of Exhibit A to this Agreement, with a stated annual rate of interest equal to the Applicable Federal Rate (as such term is defined in the Code) as of the issue date of the Promissory Note, as determined by ARAMARK; with equal annual installments of principal equal in amount to the least of (1) 10% of the original principal amount of the Promissory Note, (2) the Management Investor's highest annual base salary as an employee of ARAMARK, or (3) $100,000; and with the final installment of principal equal to the outstanding balance and due at the final maturity; and with the first installment of principal due on the April 15 or October 15 occurring closest to the first anniversary of the issue date of the Promissory Note; and with the final maturity no later than the tenth anniversary of the Management Investor's termination of employment; and with such other insertions as ARAMARK shall reasonably make. 1.09 "PUT" shall mean the option of the holder to cause ARA to purchase Common Stock referred to in Section 5 hereof. 1.10 "SUBSIDIARY" shall mean any corporation or other entity of which ARAMARK shall, directly or indirectly, own 50% or more of the equity, as determined for purposes of this Agreement by the ARAMARK Board of Directors and any other corporation or other entity in which ARAMARK shall directly or indirectly have an equity investment and which the ARAMARK Board of Directors shall in its sole discretion designate. A-2 AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT 2. LIMITATIONS ON TRANSFERS OF SHARES. 2.01 TRANSFERS PROHIBITED UNLESS SPECIFICALLY PERMITTED. No Stockholder shall transfer any shares of Common Stock at any time, unless such sale, assignment, pledge or encumbrance or other transfer shall have been effected in accordance with the terms of Section 3, 4, 5, 6 or 7 of this Agreement. ARAMARK shall not transfer upon its books any shares of Common Stock held or owned by any of the Stockholders to any person except in accordance with this Agreement. 2.02 INCONSISTENT AGREEMENTS PROHIBITED. Unless approved by the Board of Directors, no Stockholder shall grant any proxy or enter into or agree to be bound by any voting trust with respect to Common Stock nor shall any Stockholder enter into any stockholder agreement or arrangement of any kind with any person with respect to Common Stock inconsistent with the provisions of this Agreement (whether or not such agreement and arrangement is with other Stockholders or holders of Common Stock that are not parties to this Agreement), including but not limited to, any agreement or arrangement with respect to the acquisition, disposition or voting of shares of Common Stock, or act, for any reason, as a member of a group or in concert with any other persons in connection with the acquisition, disposition or voting of shares of Common Stock in any manner which is inconsistent with the provisions of this Agreement. 2.03 REQUIREMENTS FOR ALL TRANSFERS. (a) TRANSFEREE MUST AGREE TO BE BOUND BY AGREEMENT. Unless otherwise explicitly provided herein, no Stockholder shall sell, assign, pledge, encumber or otherwise transfer any shares of Common Stock to any person (all such persons, regardless of the method of transfer, shall be referred to collectively as "TRANSFEREES" and individually as a "TRANSFEREE") unless (a) such Transferee shall have executed, as a condition to its acquisition of shares (or, in the case of a Transferee by will or the laws of descent, record ownership on the books of ARAMARK) of Common Stock, an appropriate document confirming that such Transferee takes such shares subject to all the terms and conditions of this Agreement and (b) such document shall have been delivered to and approved by ARAMARK prior to such Transferee's acquisition of shares (or, in the case of a Transferee by will or the laws of descent, record ownership on the books of ARAMARK) of Common Stock. ARAMARK shall not unreasonably withhold or delay its approval of any such document. (b) TRANSFER MUST COMPLY WITH SECURITIES LAWS. No Stockholder shall sell, assign, pledge, encumber or otherwise transfer any shares of Common Stock at any time if such action would constitute a violation of any federal or state securities or blue sky laws or a breach of the conditions to any exemption from registration of the Common Stock under any such laws or a breach of any undertaking or agreement of such Stockholder entered into pursuant to such laws or in connection with obtaining an exemption thereunder. Any Stockholder who proposes to sell, assign, pledge, encumber or transfer any shares of Common Stock may deliver to ARAMARK an opinion of counsel that such action would not result in any such violation or breach. The delivery of such opinion shall be deemed to establish compliance with the provisions of this Section 2.03(b) unless, within ten days after the receipt by ARAMARK of such opinion, counsel for ARAMARK shall deliver an opinion that such action would result in any such violation or breach (such opinion to state the basis of the legal conclusions reached therein). (c) ENDORSEMENT OF STOCK CERTIFICATES. Each certificate representing shares of Common Stock shall bear endorsements reading substantially as follows: "The securities represented by this certificate are subject to the right of the Corporation to repurchase such securities on the terms and conditions set forth in a Stockholders' Agreement dated as of December 14, 1984, as the same may be amended from time to time, a copy of which may be obtained from the Corporation or from the holder of this instrument. No transfer of such securities will be made on the books of the Corporation unless accompanied by evidence of compliance with the terms of such Agreement." Such certificate shall bear any additional endorsement which may be required for compliance with federal or state securities or blue sky laws. In the case of uncertificated shares of Common Stock, the books of ARAMARK shall bear appropriate notations reflecting the foregoing. 3. CERTAIN PERMITTED TRANSFERS OF SHARES. 3.01 ESTATE PLANNING TRANSFERS, ETC. Subject to the restrictions set forth in Section 2.03 and Section 4.06, a Stockholder shall be entitled to make the following transfers of shares of Common A-3 AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT Stock: (A) if made for nominal consideration or as gifts: (i) any transfer or assignment to any one or more of the following relatives of the Stockholder - spouse, child, grandchild, parent - or to a trust of which there are and continue to be, during the term of this Agreement no principal beneficiaries other than one or more of such relatives; (ii) any transfer to any charitable organization which qualifies as such under Section 501 (c) (3) or any successor provision of the Code; (iii) any transfer to a legal representative in the event any Stockholder becomes mentally incompetent; (iv) any transfer of record title to any nominee or custodian, provided that the Stockholder so transferring such shares remains the beneficial owner thereof; (B) any transfer among members of a family, their trusts or other entities, if approved by the Board of Directors; (C) any transfer among Institutional Investors which became Stockholders in December 1984; and (D) with respect to a corporate or partnership Stockholder transfer between an Affiliate and such corporate or partnership Stockholder (it being understood with respect to such Affiliate that the later sale of such Affiliate as part of a sale or series of sales of substantial assets other than Common Stock would not constitute an indirect sale of Common Stock by such corporate or partnership Stockholder, and need not be made within the terms of this Agreement, provided that an officer of such institution certifies that such sale is not being undertaken to evade the transfer restrictions herein). 3.02 PERMITTED PLEDGES. A Stockholder shall be entitled to pledge his or her shares of Common Stock to ARAMARK, a commercial bank, savings and loan institution or any other lending or financial institution as security for any indebtedness of such Stockholder to such lender; provided that such lender shall first agree not to dispose of such shares except in compliance with the provisions of this Agreement. 3.03 AUTHORITY OF BOARD OF DIRECTORS TO APPROVE TRANSFERS; ACTIONS BY BOARD OF DIRECTORS. Notwithstanding any other provision of this Agreement, the Board of Directors shall have the authority to approve any transfer, or class, category or type of transfer, of Common Stock. Such authority of the Board of Directors shall extend to, among other things, (i) the authority to create an internal market for shares of the Company's stock pursuant to which Management Investors would be offered the opportunity to sell a portion of their shares at the times and on the terms set by the Board of Directors, and (ii) the authority to waive entirely the restrictions (including, without limitation, restrictions relating to rights of first offer and reoffer, calls upon termination of employment and sales, transfers and other dispositions of shares) set forth in this Agreement which relate to Management Investors and which do not relate to Outside Investors. Any such approval may be revoked by the Board at any time without notice and such revocation shall be effective with respect to any action, including any or all transfers or proposed transfers, unless, prior to such revocation, the shares have been presented to the transfer agent for the purpose of registering such transfer, in proper form and satisfying the requirements of Section 8-401 of the Uniform Commercial Code or such other applicable law relating to the duty of an issuer to register securities transfers. The Board of Directors may delegate any and all authority it has under this Agreement to any committee thereof and/or to any authorized officer or agent. 4. RIGHTS OF FIRST OFFER AND REOFFER OF SHARES. 4.01 TRANSFERS BY MANAGEMENT INVESTORS. (A) A Management Investor or Permitted Transferee may sell shares of Common Stock, by complying with the terms of this Section 4. The selling Management Investor shall first give written notice (a "MANAGEMENT INVESTOR'S NOTICE") to ARAMARK stating such selling Management Investor's desire to make such transfer, the number of shares of Common Stock to be transferred (the "OFFERED MANAGEMENT SHARES"), and the price which the selling Management Investor proposes to be paid for the Offered Management Shares, which proposed price shall not be greater than the Appraisal Price of (an equivalent number of) shares of Class B Common Stock (the "FIRST OFFER PRICE"). (B) Upon receipt of the Management Investor's Notice, ARAMARK shall have the irrevocable and exclusive option to buy up to all of the Offered Management Shares at the First Offer Price; provided, however, that ARAMARK shall not have the right to purchase any of the Offered Management Shares unless either (i) ARAMARK purchases all such Offered Management Shares, or (ii) such selling Management Investor consents to the purchase of less than all of the Offered Management Shares. ARAMARK's option under this Section 4.01(b) shall be A-4 AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT exercisable by a written notice to such selling Management Investor, given within 45 days from the date of receipt of the Management Investor's Notice. 4.02 TRANSFERS BY OUTSIDE INVESTORS. (A) An Outside Investor may sell shares of Common Stock, including pursuant to the registration rights under Section 2.1 of ARAMARK's Amended and Restated Registration Rights Agreement amended and restated as of April 7, 1988 (the "REGISTRATION RIGHTS AGREEMENT"), by complying with the terms of this Section 4. The selling Outside Investor shall first give written notice (a "SELLER'S NOTICE") to ARAMARK stating such selling Outside Investor's desire to make such transfer, the number of shares of Common Stock to be transferred (the "OFFERED INVESTORS' SHARES"), and the price which the selling Outside Investor proposes to be paid for the Offered Investors' Shares (the "FIRST OFFER INVESTORS' PRICE"). (B) Upon receipt of the Seller's Notice, ARAMARK shall have the irrevocable and exclusive option to buy up to all of the Offered Investors' Shares at the First Offer Investors' Price; provided, however, that ARAMARK shall not have the right to purchase any of the Offered Investors' Shares unless either (i) ARAMARK purchases all such Offered Investors' Shares, or (ii) such selling Outside Investor consents to the purchase of less than all of the Offered Investors' Shares. ARAMARK's option under this Section 4.02(b) shall be exercisable by a written notice to such selling Outside Investor, given within 45 days from the date of the receipt of Seller's Notice. 4.03 TRANSFER OF OFFERED SHARES TO THIRD PARTIES. If the Management Investor's Notice or the Seller's Notice (collectively, the "NOTICE") required to be given pursuant to Section 4.01 or 4.02, as the case may be, has been duly given, and ARAMARK determines not to exercise its option to purchase the Offered Management Shares or the Offered Investors' Shares (collectively, the "OFFERED SHARES") or determines (with the consent of the Stockholder who has made the First Offer) to exercise its option to purchase less than all the Offered Shares, then the Stockholder who has made such First Offer shall be free, for a period of 90 days from the earlier of (i) the expiration of the option period with respect to such First Offer pursuant to Section 4.01 or 4.02, as the case may be, or (ii) the date such Stockholder shall have received written notice from ARAMARK stating that ARAMARK intends not to exercise in whole or in part the option granted under Section 4.01 or 4.02, as the case may be, to sell to any third-party Transferees the remaining Offered Shares, at a price equal to or greater than the First Offer Price, in the case of Management Investors or their Permitted Transferees, and the First Offer Investors' Price, in the case of Outside Investors; provided, however, that the Transferee complies with the provisions of Section 2.03; and provided further that, in the case where such selling Stockholder is a Management Investor or a Permitted Transferee, such Transferee shall have been approved by ARAMARK as a suitable investor in a privately-owned services management company. ARAMARK shall not unreasonably withhold or delay such approval. Anything herein to the contrary notwithstanding, the 90-day period described in this Section 4.03 shall be extended until the completion of all sales pursuant to a registration statement, a request for which was made substantially concurrently with the Notice. 4.04 REOFFERS. In the event the proposed purchase price of a third-party Transferee for the Offered Shares is less than the First Offer Price or the First Offer Investors' Price, as the case may be, the Stockholder desiring to sell at such lesser price shall not sell or otherwise transfer any of the Offered Shares unless such selling Stockholder shall first reoffer the Offered Shares at such lesser price to ARAMARK by giving written notice (the "REOFFER NOTICE") to ARAMARK of such selling Stockholder's intention to make such transfer at such lower price (the "REOFFER PRICE"). ARAMARK shall then have an irrevocable and exclusive option to purchase all or part of the Offered Shares at the Reoffer Price, exercisable in the same manner as provided in Section 4.01 or 4.02, as the case may be. In the event ARAMARK does not then elect to purchase all the remaining Offered Shares, or ARAMARK elects (with the consent of the Stockholder desiring to sell) to purchase less than all the remaining Offered Shares, the remaining Offered Shares may be sold by such selling Stockholder within 30 days following the earlier of (i) the expiration of the option period with respect to such Reoffer pursuant to Section 4.01 or 4.02, as the case may be, or (ii) the last date on which such selling Stockholder shall have received written notice from ARAMARK stating that ARAMARK intends not to exercise in whole or in part the option granted in this Section 4.04, at a price equal to or greater than the Reoffer Price; provided, however, that the Transferee complies with the provisions of Section 2.03; and provided further that, in the case where such selling Stockholder is a Management Investor or a Management Investor's Permitted Transferee, such Transferee shall have been approved by ARAMARK A-5 AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT as a suitable investor in a privately-owned services management company. ARAMARK shall not unreasonably withhold or delay such approval. 4.05 WAITING PERIOD WITH RESPECT TO SUBSEQUENT TRANSFERS. In the event that ARAMARK does not exercise its option to purchase any or all of the Offered Shares at the First Offer Price or the First Offer Investors' Price, as the case may be, or at the Reoffer Price, and the Stockholder desiring to sell shall not have sold the remaining Offered Shares to any Transferee for any reason before the expiration of the 30 day period described in Section 4.04 in the event of a Reoffer, or, if no Reoffer Notice is given, the 90 day period described in Section 4.03, then such selling Stockholder shall not sell any shares of Common Stock to any Transferee or other Stockholder (other than to Permitted Transferees pursuant to Section 3.01) at any price for a period of three months from the last day of such 30 or 90 day period, as the case may be. 4.06 NO SALES OF CONTROL. (A) Subject to Section 4.06(b) and except as provided in Section 3.03 (transfers approved by the Board of Directors), no Person or group of Persons, as defined in Section 13 (d) (3) of the Securities Exchange Act of 1934 (the "EXCHANGE ACT"), including for the purposes of this paragraph as part of such Person's group, Transferees pursuant to Section 3.01, shall become (whether through the purchase of shares pursuant to this Agreement or otherwise or through any other action) the holder, directly or indirectly, of 10% or more of either the outstanding shares of Class A Common Stock or the outstanding shares of Class B Common Stock. Any transaction resulting in a violation of this Section 4.06(a) shall be void, and of no effect against ARAMARK, and ARAMARK shall not record any such purported transfer on its books. Two or more Stockholders owning in the aggregate 10% or more of such outstanding shares shall not be deemed to be a group of Persons for the purposes of this Section 4.06 solely because such Stockholders are parties to this Agreement or because such Stockholders are related by blood or marriage and/or because such Stockholders are officers or directors of ARAMARK. (B) The provisions of Section 4.06(a) shall not apply to the acquisition by ARAMARK, directly or indirectly, of shares of Common Stock, notwithstanding that as a result of such acquisition any Person or group of Persons acting in concert would own 10% or more of such outstanding shares subsequent to such an acquisition, but shall apply to any subsequent acquisition or other action by such Person or group of Persons. 4.07 FORM OF CONSIDERATION FOR SHARES. No offer to purchase or to sell shares of Common Stock shall be deemed to be a valid offer under this Section 4 unless the purchase price of such offer is payable in cash or securities that can be readily valued by reference to quoted trading prices. The purchase price of shares upon exercise of an option under this Section 4 in respect of a Notice which specifies only cash as the form of consideration shall be payable only in cash. 4.08 MERGER TRANSACTION. Subject to any applicable provisions of the Certificate of Incorporation or any loan agreement or instruments to which ARAMARK is a party, ARAMARK may enter into any agreement of merger to merge with or into any other corporation; and, in such event, Sections 4.01 through 4.07 of this Agreement shall not be applicable to such merger and all shares may be transferred for such consideration as approved by the Board of Directors and the Stockholders in accordance with applicable law. 4.09 TRANSFERS IN A PUBLIC OFFERING. In the event a request is made under Section 2.1 of the Registration Rights Agreement for a demand registration, then the procedures set forth in Sections 4.02 through 4.05 shall be modified in the following respects: (A) Such request shall also provide the information required to be stated in a Seller's Notice, and shall also constitute a Seller's Notice. (B) Prior to the expiration of the 21 day period under the Registration Rights Agreement within which ARAMARK is to file a registration statement covering the shares the holder of which requested a demand registration, ARAMARK shall have the irrevocable and exclusive option to buy all (and only all) of the Offered Investors' Shares at the First Offer Investors' Price, which shall be the proposed public offering price after reduction for commissions, discounts and the like. (C) In the event the public offering price (after reduction for commissions, discounts and the like) is more than 10% lower than the First Offer Investors' Price, or the number of shares included in the offering is reduced to less than 75% of the shares as to which the Seller's Notice was delivered (otherwise than by reason of a cut down by the Underwriter) then Section 4.04 shall apply, A-6 AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT but such section shall not otherwise apply to any sale pursuant to a registration statement. (D) In the event all of the Offered Investors' Shares are elected to be purchased, the demand registration shall be held in abeyance pending the closing of such purchase in accordance with this Agreement. 5. PUT OF SHARES UPON DEATH, COMPLETE DISABILITY OR NORMAL RETIREMENT. 5.01 PUT IN EVENT OF DEATH, COMPLETE DISABILITY OR NORMAL RETIREMENT. Subject to any instruments or agreements of ARAMARK from time to time in effect restricting or otherwise governing the repurchase or retirement of shares of ARAMARK's capital stock (the "LOAN AGREEMENTS") and to applicable law, unless a Call pursuant to Section 6.01 shall have been exercised by ARAMARK, upon the death, Complete Disability or Normal Retirement of any Investor Group member, at the option of such Investor Group member, such Investor Group member's estate, heirs or personal representative, and such Investor Group member's Permitted Transferees (other than Permitted Transferees specified in Section 3.01(A)(ii)) (collectively, the "HOLDERS" of such Investor Group member's shares) and within 30 days of receipt by ARAMARK of a Seller's Notice from such Holders, which notice must be given within 30 days from the date of the appointment of a personal representative of such Investor Group member, the date he or she became Completely Disabled, or the date of his or her Normal Retirement, ARAMARK shall purchase from such Holders the shares of Common Stock held by such Holders specified in such Seller's Notice up to 30% of such shares so held at a purchase price determined in accordance with Section 5.02. ARAMARK shall be under no obligation to purchase such shares unless it shall have received a Seller's Notice from such Holders in accordance with this Section 5.01. 5.02 PURCHASE PRICE OF PUT SHARES. The purchase price for the shares of Common Stock purchased pursuant to Section 5.01 shall be the Appraisal Price of (an equivalent number of) shares of Class B Common Stock, for the shares of a Holder of a Management Investor's shares, and shall be the Appraisal Price of shares of Class A Common Stock for the shares of a Holder of an Individual Investor's shares. ARAMARK shall satisfy its obligation to purchase shares upon the exercise of any Put granted under Section 5.01 with cash. 6. CALL OF SHARES UPON TERMINATION OF EMPLOYMENT. 6.01 CALL IN EVENT OF TERMINATION. Unless the shares of Common Stock held by a Management Investor and his or her Permitted Transferees have been earlier sold pursuant to Section 4 (rights of first offer and reoffer), including the earlier recording of the transfer of such shares on the books of ARAMARK, ARAMARK shall have an exclusive and irrevocable option, at any time and from time to time during the period of 10 years following the termination of employment of such Management Investor for any reason whatsoever (including without limitation death, Complete Disability or Normal Retirement) to make a purchase or purchases of up to all of the shares of Common Stock owned by such Management Investor and his or her Permitted Transferees, at a purchase price, with respect to any such exercise, determined in accordance with Section 6.02. 6.02 PURCHASE PRICE. The purchase price per share for any shares of Common Stock purchased pursuant to Section 6.01 shall be the lesser of (i) the Appraisal Price of (an equivalent number of) shares of Class B Common Stock at the time ARAMARK gives notice that it is exercising its Call option and (ii) the Appraisal Price of (an equivalent number of) shares of Class B Common Stock at the date of termination of employment, plus in the case where ARAMARK gives notice it is exercising its Call option more than 120 days after the date of termination of employment, 8% simple interest on such amount from the date of termination of employment through the date ARAMARK gives notice that it is exercising its Call option. ARAMARK shall satisfy its obligations to purchase shares upon the exercise of such Calls with cash up to the least of $100,000, or the Management Investor's highest annual base salary as an employee of ARAMARK, or 10% of the aggregate purchase price for such Called shares and, at the Company's option, with cash and/or Promissory Notes valued at their principal amount for the remainder. 7. INVOLUNTARY TRANSFER OF SHARES. 7.01 CERTAIN INVOLUNTARY TRANSFERS; SELLER'S NOTICE. Except for involuntary transfers (by foreclosure or otherwise) to ARAMARK of shares of Common Stock pledged to ARAMARK, in the event a Stockholder shall involuntarily transfer directly or indirectly any or all of his or her shares, for any reason other than as a result of those events A-7 AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT specified in Section 6, such Stockholder shall give written notice within 30 days of such involuntary transfer (the "STOCKHOLDER NOTICE") to ARAMARK, with a copy to the Transferee, stating the fact that the involuntary transfer occurred, the reason therefor, the date of the transfer, the name and address of the Transferee and the number of shares acquired by the Transferee (the "ACQUIRED SHARES"). For purposes of this Section 7 an involuntary transfer shall include, without limitation, a court-ordered transfer, constructive trust or other device designed to transfer economic benefit of share ownership. 7.02 RIGHT TO REPURCHASE. For a period of 60 days from the date of receipt of the Stockholder Notice or, failing receipt of such notice, 60 days from the date ARAMARK sends written notice to the Transferee that the transfer is deemed to be an involuntary transfer subject to repurchase under this Agreement, ARAMARK shall have an irrevocable and exclusive option to buy all of the Acquired Shares, exercisable in the same manner as provided in Section 4.01, and the provisions of such applicable Section shall be followed in their entirety except that the purchase price shall be as provided in Section 7.03. 7.03 PURCHASE PRICE. The purchase price for shares purchased pursuant to Section 7.02 shall be payable in cash and shall be equal to the Appraisal Price of (an equivalent number of) shares of Class B Common Stock at the time ARAMARK gives notice that it is exercising its Call option. 8. LIMITED ACCESS TO INFORMATION. 8.01 NO DUTY TO DISCLOSE INFORMATION. Each of the parties to this Agreement acknowledges and agrees that it is in the best interests of ARAMARK and the Stockholders taken as a whole for ARAMARK to be able to conduct orderly transactions in Common Stock on a continual basis (including in connection with the internal market and repurchases upon termination of employment and otherwise), and for ARAMARK concurrently to be able to consider from time to time on a confidential basis potential transactions which could affect the fair market value and/or the Appraisal Price of the Common Stock. Each of the parties to this Agreement acknowledges and agrees that, at the time of a sale by a Stockholder of shares of Common Stock pursuant to this Agreement, there may have occurred or be proposed or pending an event or a transaction that could affect the Appraisal Price of the Common Stock, and that the Appraisal Price of the Common Stock (and, accordingly, the repurchase price) may be substantially less than the fair market value as of the current date, and further acknowledges and agrees that ARAMARK may have valid business reasons not to, and in any case shall not be required to, disclose any event or transaction that may have occurred or be proposed or pending at the time of any such sale. 8.02 SALE OF ARAMARK FOLLOWING CALL. In the event that any entity, person, or any group of persons acting in concert (excluding the Management Investors as a group), acquires in any manner shares of Common Stock with 50% of the ordinary voting rights of the outstanding shares of Common Stock or in the event of the redemption or repurchase of all the shares of Common Stock in connection with a sale of all or substantially all the assets of ARAMARK, or the winding up, dissolution or liquidation of ARAMARK, within 90 days from the date of a sale pursuant to Section 6.01 then, subject to the Loan Agreements, ARAMARK and/or the purchaser of such shares of Common Stock with 50% of the ordinary voting rights of the outstanding shares of Common Stock shall pay to the Holders whose shares have been so purchased the excess, if any, of the amount per share realized by ARAMARK's stockholders upon such acquisition, redemption, repurchase, winding up, dissolution or liquidation over the purchase price per share paid to such Holders pursuant to Section 6 less the interest paid on any Promissory Notes paid as consideration for such stock and less a financing cost for carrying such stock for any cash received, based on an interest rate equal to the rate paid by ARAMARK under the Loan Agreements at the date of payment hereunder, for the period from the date of payment to such Holders pursuant to Section 6 to the date of such acquisition, redemption, repurchase, winding up, dissolution or liquidation, for each share purchased by ARAMARK. Determination of whether or not any such payment is appropriate, and the amount of such payment, shall be made by the Board of Directors; and such determination shall be conclusive and binding on all parties hereto. 9. NO RIGHT TO CONTINUED EMPLOYMENT. Neither this Agreement nor the ownership of Common Stock by a Management Investor shall confer upon any Management Investor any right to continue in the employ of ARAMARK or any of its Subsidiaries or limit in any respect the right of ARAMARK or its Subsidiaries to terminate his or her employment at any time. A-8 AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT 10. CLOSING. 10.01 CLOSING DATE; PURCHASE PRICE. Any selling Stockholder and ARAMARK, as purchaser, of shares of Common Stock pursuant to Section 4, 5, 6 or 7 shall mutually determine a closing date (the "CLOSING DATE") which, unless this Agreement otherwise explicitly provides, shall be not more than 60 business days after ARAMARK gives notice that it will purchase such shares; provided, however, that absent agreement, the Closing Date shall be the business day determined by ARAMARK. In respect of shares of Common Stock distributed by any employee benefit plan upon termination of employment, the Closing Date shall be such date selected by ARAMARK consistent with the orderly administration of such plan. Notwithstanding anything in this Agreement to the contrary, the Closing Date may be delayed in any case in which ARAMARK cannot, in compliance with the Loan Agreements or applicable law, purchase any shares of Common Stock that it is otherwise obligated to purchase until the earliest practicable date when such closing may be effected in compliance with such Loan Agreements or applicable law. The closing shall be held at 11:00 a.m., local time, at the offices of ARAMARK or at such other time or place as the parties may agree. The determination date of the Appraisal Price shall be appropriately changed if the Closing Date is delayed in accordance with the foregoing paragraph. 10.02 SHARES NO LONGER OUTSTANDING. If a selling Stockholder shall fail to deliver the certificates representing the shares of Common Stock to be sold or shall otherwise fail to perform any obligation required to be performed at the closing and ARAMARK shall have been ready to purchase such shares at the closing, then effective at the closing, such shares shall no longer be deemed to be outstanding, and all rights of the holder thereof as stockholder of ARAMARK (except the right to receive from ARAMARK the purchase price therefor) shall cease. 10.03 DELIVERIES AT CLOSING; METHOD OF PAYMENT OF PURCHASE PRICE. On the Closing Date, any selling Stockholder shall deliver certificates with appropriate transfer tax stamps affixed and with stock powers endorsed in blank, representing the shares of Common Stock to be purchased, and ARAMARK, as purchaser shall deliver to such Stockholder the purchase price which is payable in cash (or by wire transfer or check) and the other consideration, if any, to be given in exchange for such shares. In addition, if the person selling shares is the personal representative of a deceased Stockholder, the personal representative shall also deliver to the purchaser or purchasers (i) copies of letters testamentary or letters of administration evidencing his or her appointment and qualification, (ii) a certificate issued by the Internal Revenue Service pursuant to Section 6325 of the Code discharging the shares being sold from liens imposed by the Code and (iii) an estate tax waiver issued by the state of the decedent's domicile. 11. TERM. The terms and provisions of this Agreement which relate to Management Investors may be terminated by an instrument in writing signed by Management Investors who hold, in combination with their Permitted Transferees, at least the majority of the Common Stock held by Management Investors and their Permitted Transferees and by ARAMARK. The terms and provisions of this Agreement which relate to Outside Investors shall terminate on April 7, 2008 or, if earlier, on the closing date of the first to occur of (i) any merger or other business combination of ARAMARK with or into any other corporations, except a merger or other business combination in which the stockholders of ARAMARK immediately prior thereto constitute more than a majority of the stockholders (by value of equity securities held) following such merger, and (ii) the sale of shares of Class A Common Stock to the public pursuant to an underwritten, registered public offering under the Securities Act of 1993, as amended (the "SECURITIES ACT") as a result of which offering the public (including for this purpose all purchasers in the underwriting irrespective of any relationship with ARAMARK) owns 10% or more of the outstanding shares of Class A Common Stock, provided such shares have a fair market value equal to at least $25,000,000 at the time of the offering. Notwithstanding the foregoing, the restrictive terms and provisions set forth herein with respect to the rights and obligations of Management Investors shall terminate, effective upon or after the occurrence of a public offering pursuant to clause (ii) above, to the extent the existence of such terms and provisions would impair the ability of ARAMARK to list its Common Stock on the New York Stock Exchange or, in the written opinion of the lead underwriter, significantly impair the value of the Common Stock proposed to be sold in a public offering. A-9 AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT 12. REGISTRATION OF COMMON STOCK. In the event of any registration under the Securities Act and public offering of Common Stock, each Stockholder shall, at a meeting convened for the purpose of amending the Certificate of Incorporation, vote to increase the authorized number of shares of Common Stock and, if necessary, to subdivide the outstanding shares of Common Stock of ARAMARK, in both instances as recommended by a majority of the members of the Board in order to effectuate such public offering. 13. INJUNCTIVE RELIEF. It is acknowledged that it will be impossible to measure in money the damages that would be suffered if the parties fail to comply with any of the obligations herein imposed on them and that in the event of any such failure, an aggrieved person will be irreparably damaged and will not have an adequate remedy at law. Any such person shall, therefore, be entitled to injunctive relief, including specific performance, to enforce such obligations, and if any action should be brought in equity to enforce any of the provisions of this Agreement, none of the parties hereto shall raise the defense that there is an adequate remedy at law. 14. NOTICES. All notices, statements, instructions or other documents required to be given hereunder, shall be in writing and shall be given either personally, or by mailing the same in a sealed envelope, first-class mail, postage prepaid, addressed to ARAMARK at its principal offices to the attention of the General Counsel and to the other parties at their addresses reflected in the stock records of ARAMARK, or sent by telegram, telex, telecopy or similar form of telecommunication. Each Stockholder, by written notice given to ARAMARK in accordance with this Section 14 may change the address to which notices, statements, instructions or other documents are to be sent to such Stockholder. All notices, statements, instructions and other documents hereunder that are mailed shall be deemed to have been given on the date of mailing. 15. COOPERATION. ARAMARK agrees that it will use all reasonable efforts under the circumstances to help any Stockholder desiring to dispose of its Common Stock pursuant to the provisions of this Agreement to do so. 16. MISCELLANEOUS. 16.01 SUCCESSOR AND ASSIGNS. This Agreement shall be binding upon and shall inure to the benefit of the parties, and their respective successors and assigns. The provisions of this Agreement are for the sole benefit of the parties hereto and their heirs, executors, administrators, legal representatives, successors and assigns, and they shall not be construed as conferring any rights on any other persons. If any Transferee of any Stockholder shall acquire any shares of Common Stock, in any manner, whether by operation of law or otherwise, such shares shall be held subject to all of the terms of this Agreement, and by taking and holding such shares such person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement. ARAMARK may assign to any other Person its rights with respect to any specific transaction pursuant to Section 4, 5, 6 or 7, provided that Person complies with the provisions of Section 2.03. 16.02 GOVERNING LAW. Regardless of the place of execution, this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to agreements made and to be wholly performed in such State. 16.03 HEADINGS. Paragraph headings are inserted herein for convenience only and do not form a part of this Agreement. 16.04 ENTIRE AGREEMENT; AMENDMENT. This Agreement contains the entire agreement among the parties hereto with respect to the transactions contemplated herein, supersedes all prior written agreements and negotiations and oral understandings, if any, and may not be amended, supplemented or discharged except by performance or by an instrument in writing signed by the holders of at least three-fourths of the Common Stock held by the Institutional and Individual Investors (taken as a whole), and by Management Investors who hold (in combination with their Permitted Transferees) at least a majority of the Common Stock held by Management Investors and their Permitted Transferees, and by ARAMARK. In the event of the amendment or modification of this Agreement in accordance with its terms, the Stockholders shall cause the Board of Directors of ARAMARK to meet within 30 days following such amendment or modification or as soon thereafter as is practicable for the purpose of amending the Certificate of Incorporation and By-Laws of ARAMARK, as may be required as a result of such amendment or modification, and proposing such amendments to the stockholders of ARAMARK entitled to vote thereon, and such action shall be the A-10 AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT first action to be taken at such meeting. This amended and restated Agreement shall become effective upon the later of (i) December 14, 1994 and (ii) the date ARAMARK has received and holds duly executed (and not previously rescinded) instruments in writing approving such amended and restated Agreement from the required parties as provided in this Section 16.04. 16.05 INSPECTION. A copy of this Agreement shall be filed with the Secretary of ARAMARK and kept with the records of ARAMARK and shall be made available for inspection by any stockholder of ARAMARK at the principal offices of ARAMARK. 16.06 COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. [Signature Pages Omitted] A-11 AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT EXHIBIT A (to Amended and Restated Stockholders' Agreement) THIS NOTE IS NOT TRANSFERABLE UNLESS AS A CONDITION PRECEDENT TO THE EFFECTIVENESS OF ANY TRANSFER THE PAYEE HAS OBTAINED THE WRITTEN CONSENT OF THE COMPANY AS TO THE PROPOSED TRANSFER. $_________________________ Philadelphia, Pennsylvania ____________________, 19__ SUBORDINATED INSTALLMENT NOTE 1. For value received, ARAMARK CORPORATION (formerly The ARA Group, Inc. and ARA Holding Company), a Delaware corporation (the "COMPANY"), hereby promises to pay to __________ (the "PAYEE") the sum of $_____ in _______ equal, annual installments of $______ and one final installment of $______ on each [April/October] 15 commencing on [April/October] 15, 19__, and to pay simple interest at the rate of ___% per annum on the unpaid balance thereof, semi-annually in arrears on each April 15 and October 15. 2. The Payee may not sell, assign or otherwise transfer or encumber any portion of this Note or interest herein without first procuring the written consent of the Company, which consent the Company is under no obligation to provide. No transfer of this Note shall be effective unless such transfer is in compliance with the foregoing, including the requirements set forth in the legend provided for above. 3. Both the principal of this Note and interest thereon are payable in lawful money of the United States of America at 1101 Market Street, Philadelphia, PA 19107, or such address of any subsequent principal executive office of the Company within the United States of America as the Company shall designate in writing to the Payee, or at the option of the Company, by check mailed to the Payee at such address for the Payee as is indicated on the books of the Company. 4. This Note may be prepaid in full, or in part, any time, without premium or penalty. All prepayments shall be applied first to accrued interest and then to installments of principal in the order of their maturities. 5. The indebtedness evidenced by this Note and the payment of the principal of and interest on this Note are hereby expressly subordinated, to the extent and in the manner hereinafter set forth, to the prior payment in full of all Senior Indebtedness. 5.1 "SENIOR INDEBTEDNESS" means the principal of, premium, if any, interest and any other amounts due on (1) all Indebtedness incurred, assumed or guaranteed by the Company, either before or after the date hereof, (excluding any debt which by the terms of the instrument creating or evidencing the same is not superior in right of payment to this Note), including, without limitation, (a) any amount payable with respect to any lease, conditional sale or installment sale agreement or other financing instrument or agreement which in accordance with generally accepted accounting principles is, at the date hereof or at the time the lease, conditional sale or installment sale agreement or other financing instrument or agreement is entered into, or assumed or guaranteed by, directly or indirectly, the Company, required to be reflected as a liability on the face of the balance sheet of the Company, (b) any amounts payable in respect to any interest rate exchange agreement, currency exchange agreement or similar agreement and (c) any subordinated indebtedness of a corporation merged with or into or acquired by the Company; and (2) any renewals or extensions or refunding of any such Senior Indebtedness or evidences of indebtedness issued in exchange for such Senior Indebtedness. 5.2 "INDEBTEDNESS" means (a) all items, except items of capital stock or of surplus or of general contingency reserves or of reserves for deferred income taxes, which in accordance with generally accepted accounting principles in effect on the date hereof should be included in determining total liabilities as shown on the liability side of a balance sheet of the Company as at the date of which Indebtedness is to be determined, (b) all indebtedness secured by any mortgage, pledge, lien or conditional sale or other title retention agreement existing on any property or asset owned or held by the Company, whether or not such indebtedness shall have been assumed, and (c) all indebtedness of others which the Company has directly or indirectly guaranteed, endorsed, discounted or agreed (contingently or otherwise) to purchase or repurchase or otherwise acquire, or in respect of which the Company has agreed to supply or advance funds or otherwise to become liable directly or indirectly with respect thereto, including, without limitation, indebtedness arising out of the sale or transfer of accounts or notes receivable or any moneys due or to become due. 6. In the event of any dissolution, winding up, liquidation or reorganization of the Company (whether voluntary or involuntary and whether in bankruptcy, insolvency or receivership proceedings, or upon an assignment for the benefit of creditors or any readjustment of debt, arrangement or composition among creditors or any other marshalling of the assets and liabilities of the Company or otherwise), then holders of Senior Indebtedness shall first be paid in full, or provision made for such payment, before any payment or distribution, directly or indirectly (including by way of set off) is made upon the principal of or interest on this Note, and to that end the holders of Senior Indebtedness shall be entitled to receive in payment thereof any payment or distribution of assets of the Company, whether in cash or property or securities, which may be payable or deliverable in any such proceeding in respect of this Note. The Payee irrevocably authorizes, empowers and directs all receivers, custodians, trustee, liquidators, conservators and others having authority in the premises to effect all such payments and deliveries. Notwithstanding any statute, including without limitation the Federal Bankruptcy Code, any rule of law or bankruptcy procedures to the contrary, the right of the holders of the Senior Indebtedness to have all of the Senior Indebtedness paid and satisfied in full prior to the payment of any amounts due the payee under this Note shall include, without limitation, the right of the holders of the Senior Indebtedness to be paid in full all interest accruing on the Senior Indebtedness due them after the filing of any petition by or against the Company in connection with any bankruptcy or similar proceeding or any other proceeding referred to in paragraph 6 hereof, prior to the payment of any amounts in respect of the Note, including, without limitation, any interest due to the Payee accruing after such date. 7. No payment, directly or indirectly (including by way of set off), shall be made by the Company with respect to the principal of or interest on this Note if (i) an event of default has happened with respect to any Senior Indebtedness, as defined therein or in the instrument under which the same is outstanding which if occurring prior to the stated maturity of such Senior Indebtedness, permits holders thereof upon the giving of notice or passage of time, or both, to accelerate the maturity thereof ("SENIOR INDEBTEDNESS DEFAULT") and has not been cured, (ii) a payment by the Company to or for the benefit of Payee would, immediately after giving effect thereto, result in a Senior Indebtedness Default, or (iii) full payment of all amounts then due for principal of (or premium, if any), interest or any other amounts due on Senior Indebtedness shall not then have been made or duly provided for. Upon the occurrence of any events described in (i), (ii) or (iii) described above, notwithstanding any event of default under this Note by the Company, the Payee may not accelerate the maturity of all or any portion of this Note, or take any action towards collection of all or any portion of this Note or enforcement of any rights, powers or remedies under this Note, or applicable law until the earlier of the date on which a Senior Indebtedness Default (or in the case of (iii) required payments shall have been duly provided for) have been cured or such Senior Indebtedness has been paid in full. 8. In the event that, notwithstanding the foregoing, the Company shall make any payment prohibited by Section 6 or 7, then, except as hereinafter in this Section otherwise provided, unless and until any such Senior Indebtedness Default shall have been cured or waived or shall cease to exist, such payment shall be held in trust for the benefit of and shall be paid over to the holders of Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture 2 EXHIBIT A TO AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT under which any instrument evidencing the Senior Indebtedness may have been issued, as their respective interests may appear, to the extent necessary to pay in full all Senior Indebtedness then due, after giving effect to any concurrent payment to the holders of such Senior Indebtedness. 9. Subject to the payment in full of all Senior Indebtedness at the time outstanding, the Payee shall be subrogated to the rights of the holders of Senior Indebtedness to receive payments or distributions of assets of the Company applicable to the Senior Indebtedness until this Note shall be paid in full, and no payments or distributions to the holders of Senior Indebtedness by or on behalf of the Company from the proceeds that would otherwise be payable to the Payee, or by or on behalf of the Payee, shall as between the Company and the Payee, be deemed to be a payment by the Company to or for the account of holders of Senior Indebtedness. 10. No holder of Senior Indebtedness shall be prejudiced in his or her right to enforce subordination of this Note by any act on the part of the Company. The above provisions in regard to subordination are intended solely for the purpose of defining the relative rights of the Payee on the one hand, and the holders of Senior Indebtedness, on the other hand, and nothing contained in this Note is intended to or shall impair, as between the Company, its creditors other than the holders of Senior Indebtedness and the Payee, the obligation of the Company, which is absolute and unconditional, to pay to the Payee, subject to the rights of the holders of Senior Indebtedness, the principal of and interest on this Note as and when the same shall become due and payable in accordance with its terms, subject to the rights, if any, under the above subordination provisions, of holders of Senior Indebtedness to receive cash, property or securities of the Company payable in respect thereof. 11. The principal of this Note and accrued unpaid interest thereon shall (if not already due and payable) upon written demand by the Payee become due and payable forthwith, if there shall have been a default in the payment of any interest on, or principal of, this Note when it becomes due and payable (but only if such payment is not prohibited by the provisions of this Note), and such default shall have continued for a period of 30 days after written notice of such default shall have been given to the Company and shall be continuing at the time of such written demand. 12. No course of dealing between the Company and the Payee or any delay on the part of the Payee in exercising any rights under this Note shall operate as a waiver of any rights of the Payee. 13. All notices and other communications hereunder shall be in writing and shall be deemed to have been given when delivered, or deposited in the mails, first-class, postage prepaid, or delivered to a telegraph office for transmission, if to the Payee, at such address for the Payee as is indicated on the books of the Company or if to the Company, at the address of the principal executive offices of the Company as provided above. 14. This Note shall be governed by the laws of the State of Delaware. ARAMARK CORPORATION By: ______________________ Treasurer 21761 3 EXHIBIT A TO AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT ISPO GENERAL INSTRUCTIONS TO FORMS In this section, you will find the forms that you will need in order to complete all of your stock-related transactions. Several copies of each form have been included. These forms have been color-coded for ease of reference. As you complete the forms, have your Ownership Statement handy, as you will need to transfer information from it onto the form(s). Alternatively, you can use the Stock Exercise Wizard and Personalized Data form to produce the Exercise and Deferred Obligation Note forms. We urge you to carefully read this Prospectus, as well as all of the other materials you have received, so that you will be fully informed of the terms and conditions of the stock purchase program and the payment options available to you. - ------------------------------------------------------------------------ | EMPLOYEES BASED IN QUEBEC: En signant le formulaire d'exercice | | d'option, je confirme mon souhait expres que tous les documents, | | certificts, avid et conventions directement ou indirectement, relies | | a l'acquisition de valeurs mobilieres d'ARAMARK (incluant le | | formulaire d'exercice d'option) et tous les documents qui y sont | | integres par renvoi (incluant la convention entre actionnaires) | | soient rediges en langue anglaise. | - ------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------ THERE ARE UP TO FOUR WAYS TO FINANCE YOUR STOCK PURCHASE UNDER THE PROGRAM. OF COURSE, YOU MAY CHOOSE TO USE A COMBINATION OF THE METHODS LISTED BELOW. - ------------------------------------------------------------------------------------------------------------------ DEFERRED INTERNAL CASH PAYMENT MARKET STOCK-FOR-STOCK - ------------------------------------------------------------------------------------------------------------------ WHO IS All grant holders. Those exercising the All owners who have Owners who have held ELIGIBLE? 2nd, 3rd, 4th, 5th, held shares at least shares at least 6 months. or 6th installments 6 months from Can be used for any ISPO of a grant. purchase or from installment. Only stock-for-stock available to employees exchange date. in U.S. and Canada. - ------------------------------------------------------------------------------------------------------------------ WHAT IS IT? Payment in full Postponing payment Selling shares back Exchanging shares at the time of of up to 90% of your to the company and you own (at the exercise. purchase amount, applying all or part current appraisal including of the proceeds price), for new ones withholding taxes toward the purchase (at your grant (% varies by of more shares. exercise price). installment number). Interest, due at the end of the deferral period, will be charged. - ------------------------------------------------------------------------------------------------------------------
For a summary of the forms to be completed based on the types of transactions, please see the reverse side of this page. (OVER) ISPO GENERAL INSTRUCTIONS TO FORMS (CONT.'D) THE FOLLOWING CHART LISTS THE FORMS TO BE COMPLETED AND RETURNED ACCORDING TO THE INSTRUCTIONS AT THE BOTTOM OF THE EXERCISE FORM.
- ----------------------------------------------------------------------------------------------------------------------------------- FOR THIS TRANSACTION... | COMPLETE AND SUBMIT THESE FORMS... | AND ALSO SEND IN... - -------------------------|--------------------------------------------------------------------------|------------------------------ | | | | | | | Stock | | Deferred | | Direct | | |Certificates or | | Payment | | Deposit | | | Confirmation | | Obligation | | Authorization| | Your | Statements | | Note(2) - On | Internal | Form For | | Check Payable| For Shares To | | Reverse Of | Market | Internal | Stock-For- | To ARAMARK | Be Sold, | Exercise | Note | Request Form/| Market | Stock | For Any | Exchanged, | Form(1) | Worksheet | Worksheet (3)| Sales(5) | Worksheet(6)| Balance(4) | or Held - -------------------------|---------------|--------------|--------------|--------------|-------------|--------------|--------------- Stock Exercise | | | | | | (checkmark) | (Purchase) | (checkmark) | | | | | | - -------------------------|---------------|--------------|--------------|--------------|-------------|--------------|--------------- Deferred Payment | (checkmark) | (checkmark) | | | | (checkmark) | - -------------------------|---------------|--------------|--------------|--------------|-------------|--------------|--------------- Bank Loan | (checkmark) | (checkmark) | | | | (checkmark) | | | (WORKSHEET | | | | | | | ONLY) | | | | | - -------------------------|---------------|--------------|--------------|--------------|-------------|--------------|--------------- Stock Sale(3) (If | (checkmark) | | (checkmark) | (checkmark) | | (checkmark) | (checkmark) applied to purchase) | | | | | | | - -------------------------|---------------|--------------|--------------|--------------|-------------|--------------|--------------- Stock-For-Stock Exercise | (checkmark) | | | | (checkmark) | (checkmark) | (checkmark) - -----------------------------------------------------------------------------------------------------------------------------------
(1) Complete a separate form for each exercise (either from the Prospectus or Stock Exercise Wizard). (2) For multiple transactions, compile onto one form from Prospectus per registered owner, or submit Deferred Obligation Note produced by the Stock Exercise Wizard. (Note: If shares are held jointly in your and your spouse's names, that is considered as one owner.) (3) Compile onto one form per registered owner. If you are not applying proceeds toward a purchase, only submit the Internal Market form and the Stock Certificate(s) (or confirmation statement) for the shares you are selling. (4) Contact the person listed for your country on Page B-4. (5) U.S. employees only. (6) Compile onto one form per registered owner. SEE PAGE B-4, CONTACT LIST AND MAILING INSTRUCTIONS, FOR PAYMENT AND MAILING INSTRUCTIONS AS WELL AS THE DATE THAT YOUR EXERCISE FORMS AND PAYMENT MUST BE RECEIVED BY ARAMARK OR YOUR COUNTRY'S HEADQUARTERS, IF APPLICABLE. ISPO EXERCISE FORM - SEE GENERAL INSTRUCTIONS, PAGE B-1 SECTION I - WORKSHEET (EXPIRES 1/15/00)
- ------------------------------------ | DETERMINING YOUR COST FOR SHARES | - ------------------------------------ DEFINITION SOURCE ---------- ------ 1 Grant Date ............................. Ownership Statement ....................... 1 ______ 2 This Year's Installment Number ......... Ownership Statement ....................... 2 ______ 3 Number of Shares Now Exercisable ....... Ownership Statement ....................... 3 ______ 4 Grant Price Per Share .................. Ownership Statement ....................... 4 $_____ 5 Number of Shares You Want To Exercise .. Minimum 100 - Maximum can't exceed Line 3.. 5 ______ 6 TOTAL COST OF SHARES ................ Line 4 x Line 5 ........................... 6 $_____ - ------------------------ | CALCULATING YOUR TAX | - ------------------------ 7 Current Appraisal Price Per Share (December 1999 Quarterly Appraisal) ... ........................................... 7 $15.20 8 Appraisal Price x Shares Exercised .... Line 5 x Line 7 ........................... 8 $_____ 9 Total Appreciation Subject To Taxes ... Line 8 - Line 6 ........................... 9 $_____ 10 Total Withholding Tax Due At Purchase.. Line 9 x .38 (Canada-based employees enter "0") ................................ 10 $_____ 11 TOTAL AMOUNT DUE ................... Line 6 + Line 10 .......................... 11 $_____ - ----------------------------------------------------------------- | DETERMINING YOUR DEFERRAL - INSTALLMENTS 2, 3, 4, 5 OR 6 ONLY | | (ALSO COMPLETE WHITE DEFERRED PAYMENT OBLIGATION NOTE) | - ----------------------------------------------------------------- 12 Payment Amount You Want To Defer ...... Line 6, White Deferred Payment Worksheet... 12 $_____ 13 Balance After Deferral ................ Line 11 - Line 12 ......................... 13 $_____ - ---------------------------------------------- | EXCHANGING OR SELLING SHARES OR BANK LOANS | - ---------------------------------------------- 14 Number Of Shares Exchanged (U.S. and Canada Employees Only)................. Line 6, gray Stock-For-Stock Worksheet .... 14 ______ 15 Appraisal Price x Shares Exchanged .... Line 7, gray Stock-For-Stock Worksheet .... 15 $_____ 16 Proceeds From Internal Market - Enclose certificates & green worksheet ........ Line 5, green Internal Market Worksheet ... 16 $_____ 17 Proceeds From Authorized Bank Loan For This Exercise (If applicable) ..... Bank Name _________________________________ 17 $_____ (Be sure to complete Items 11 and 12 on white Deferred Payment Obligation Worksheet) - -------------------- | EXERCISE SUMMARY | - -------------------- 18 TOTAL CASH DUE (EVERYONE MUST COMPLETE): Line 13 - Line 15 - Line 16 - Line 17 ..... 18 $_____ 19 EMPLOYEES OUTSIDE U.S. AND CANADA: Currency Exchange Rate* ............... Units of your country's currency per U.S. Dollar ........................... 19 ______ 20 EMPLOYEES OUTSIDE U.S. AND CANADA: Total Cash Due (send check for this amount in your own country's currency to the contact person listed on page B-4) ............................. Line 18 x Line 19 (Local Currency)......... 20 ______ 21 SHARES EXERCISED ...................... Line 5 .................................... 21 ______ 22 SHARES EXCHANGED - Enclose Certificates And Gray Worksheet .................... Line 14 ................................... 22 ______ 23 NUMBER OF NEW SHARES ACQUIRED ......... Line 21 - Line 22 ......................... 23 ______ - ------------------------------------------------------------------------------------------------- COMPANY USE ONLY FOR EMPLOYEES OUTSIDE THE U.S. AND CANADA (OPTIONAL) 24 Withholding Tax Paid By Employee ...... Lesser of Line 10 and Line 18 ............. 24 $_____ 25 Withholding Tax Payable By Parent Company ........................ Line 10 - Line 24 ......................... 25 $_____ 26 Withholding Tax Payable To Local Government ...................... Line 19 x (Line 24 + Line 25) (Local Currency) .......................... 26 ______ 27 Purchase Price Paid By Employee ....... Line 18 - Line 24 ......................... 27 $_____ 28 Net Due To (From) Parent Company ...... Line 27 - Line 25 ......................... 28 $_____ 29 Employee's Taxable Income From Exercise Line 9 x Line 19 (Local Currency) ......... 29 ______ - ------------------------------------------------------------------------------------------------- *Available from contact listed on page B-4, or reverse side of this form for Contact List and Mailing Instructions.
SECTION II - REGISTRATION AND SIGNATURES SHARES MUST BE REGISTERED INITIALLY EITHER IN YOUR NAME OR IN THE NAMES OF YOU AND YOUR SPOUSE, AS JOINT TENANTS. IF SHARES ARE TO BE REGISTERED JOINTLY IN THE NAMES OF BOTH YOU AND YOUR SPOUSE, YOU MUST PRINT BOTH NAMES BELOW, ENTER BOTH OF YOUR SOCIAL SECURITY NUMBERS, IF APPLICABLE, AND YOU BOTH MUST SIGN. IF YOU ARE DEFERRING PAYMENT, YOU (AND YOUR SPOUSE, IF APPLICABLE) MUST ALSO COMPLETE AND SIGN THE DEFERRED PAYMENT OBLIGATION FORM. YOUR SHARES WILL BE REGISTERED TO THE ADDRESS TO WHICH THE PROSPECTUS CONTAINING THE EXERCISE FORM WAS MAILED. IF YOU HAVE MOVED OR THE ADDRESS IS OTHERWISE INCORRECT, PLEASE COMPLETE AND RETURN THE BLUE ADDRESS CHANGE CARD. I/We hereby represent, warrant, and agree as follows: A. I/We have received and read copies of (a) the Prospectus dated December 1, 1999, including the Amended and Restated Stockholders' Agreement and (b) ARAMARK's annual report on Form 10-K. B. I/We have full power and authority to enter into the Amended and Restated Stockholders' Agreement. C. By signing below, I/We hereby execute and deliver and agree to be bound by the Amended and Restated Stockholders' Agreement. D. I/We will, upon request, execute any additional documents necessary or desirable for me/us to become a party to the Amended and Restated Stockholders' Agreement. E. By signing below, I/we agree to permit additional amounts to be withheld and/or refunded in subsequent pay periods to meet tax withholding calculated by the company. PRINT NAME(S) SIGNATURE(S) SOCIAL SECURITY NUMBER DATE ____________________ ___________________ ________________________ _________ ____________________ ___________________ ________________________ _________ HOME PHONE #: ___________________ BUSINESS PHONE #: _________________ BUSINESS UNIT: __________________ COMPONENT #: ______________________ SEE PAGE B-4 OR REVERSE SIDE OF THIS FORM, CONTACT LIST AND MAILING INSTRUCTIONS, FOR PAYMENT AND MAILING INSTRUCTIONS AS WELL AS THE DATE THAT YOUR EXERCISE FORMS AND PAYMENT MUST BE RECEIVED BY ARAMARK OR YOUR COUNTRY'S HEADQUARTERS, IF APPLICABLE. 11/99 EXPIRATION: JANUARY 15, 2000 CONTACT LIST AND MAILING INSTRUCTIONS EMPLOYEES IN THE UNITED STATES, PUERTO RICO, VIRGIN ISLANDS, AND CANADA - Exercise materials must be received by ARAMARK by January 15, 2000. Payment must be made to ARAMARK in U.S. dollars. CONTACT: MAIL TO: Shareholder Services Group First Union National Bank, N.A., 1-888-96-OWNER Shareholder Services Group (1-888-966-9637) ... at one of the following addresses: IF USING REGULAR MAIL: P. O. Box 13675 Philadelphia, PA 19101-9024 IF USING CERTIFIED/RETURN RECEIPT OR OVERNIGHT MAIL: 123 South Broad Street, MCPA 1328 Philadelphia, PA 19109 - ------------------------------------------------------------------------------ For the countries listed below, contact the representative indicated to obtain the exchange rate and specific instructions regarding your stock transactions. Exercise materials and payment must be received by that ARAMARK location no later than January 10, 2000. UNITED KINGDOM AND SCOTLAND - --------------------------- Contact: Gordon Campbell Mail to: Gordon Campbell Phone: 011-44-1189-596761 ARAMARK Plc FAX: 011-44-1189-580039 Honey End Lane, Tilehurst, E-Mail: Campbell-Gordon@aramark.co.uk Reading, Berks RG30 4QL, England GERMANY AND CZECH REPUBLIC - -------------------------- Contact: Uli Boepple Mail to: Uli Boepple Phone: (xx49/61-02) 745-280 ARAMARK GmbH FAX: (xx49/61-02) 745-200 Martin - Behaim - Strasse 6, E-Mail: uli.boepple@aramark.de 63263 Neu Isenburg, Germany BELGIUM - ------- Contact: Jean-Paul Fajgenblat Mail to: Jean-Paul Fajgenblat Phone: 02/663.49.40 ARAMARK Belgium FAX: 02-663.49.60 Europe House, Rue Maurice E-mail: Jean-Paul.Fajgenblat@aramark.be Charlent, 53, 1160 BRUXELLES, Belgium MEXICO - ------ Contact: Jorge Dominguez Mail to: Jorge Dominguez Phone: 011-525-281-5080 ARAMARK , Mexico, S.A. De C.V. FAX: 011-525-280-9661 Alejandro Dumas 145, Colonia Palanco E-Mail: dominguez-jorge@aramark.com.mx 11560, Mexico, D.F. SPAIN - ----- Contact: Miguel A. Vazquez Mail to: Miguel A. Vazquez Phone: 011-34-93-240-2141 ARAMARK Spain FAX: 011-34-93-240-2450 c/.Aribau, 200-210 E-Mail: mavazquez@aramark.es E-08036 BARCELONA, Spain ISPO DEFERRED PAYMENT OBLIGATION - SEE GENERAL INSTRUCTIONS, PAGE B-1 ===================================================================== | INSTRUCTIONS | | | | 1. Insert the Total Amount Being Deferred (Line 7 from the | | Deferred Payment Obligation Note Worksheet on the reverse) in | | the first paragraph below. | | | | 2. Insert the Total Shares Pledged to ARAMARK (Line 18 from the | | Deferred Payment Obligation Note Worksheet on the reverse) in | | the second paragraph below. | | | | 3. PRINT AND SIGN YOUR NAME EXACTLY AS ON THE NOTE WORKSHEET | | AND APPLICABLE EXERCISE FORMS. IF YOUR SPOUSE SIGNED THE | | EXERCISE FORM, HE/SHE MUST ALSO SIGN THIS DEFERRED PAYMENT | | OBLIGATION FORM. By signing this form, your spouse joins in | | the agreement you are making to pay the amount of the Deferred | | Payment Obligation. | ===================================================================== I/We promise to pay to the order of ARAMARK CD Company (a subsidiary of ARAMARK Corporation) if deferring less than $5,000 or ARAMARK Corporation if deferring $5,000 or more, $_____________, and to pay interest from January 15, 2000 at the rate of 8.5% per year, simple interest. Payment of the deferred obligation and interest will be due March 15, 2003, or on demand by the applicable payee, and may be prepaid at any time. I/We grant to the applicable payee a security interest in ______________ shares of ARAMARK Common Stock (the "Pledged Shares") and agree that the Pledged Shares will be held as collateral by the applicable payee until the amount is paid in full. I/We understand and agree that, with respect to the Pledged Shares, ARAMARK Corporation will comply with instructions from the applicable payee without my/our further consent. If the amount is not paid when due, the applicable payee will be entitled to exercise the legal remedies available under applicable law. If any of the Pledged Shares are to be sold or otherwise transferred, then the amount will become due immediately. This agreement may be assigned by the applicable payee at any time and will be governed by the laws of the Commonwealth of Pennsylvania. __________________________________ __________________________________ (Print Name) (Print Name) __________________________________ __________________________________ (Signature) (Signature) _________________ _________________ (Date) (Date) SEE PAGE B-4, CONTACT LIST AND MAILING INSTRUCTIONS, FOR PAYMENT AND MAILING INSTRUCTIONS AS WELL AS THE DATE THAT YOUR FORMS AND PAYMENT MUST BE RECEIVED BY ARAMARK OR YOUR COUNTRY'S HEADQUARTERS, IF APPLICABLE. EXPIRATION: JANUARY 15, 2000 ISPO DEFERRED PAYMENT OBLIGATION NOTE WORKSHEET ALL DEFERRED PAYMENT OBLIGATIONS MUST BE IN SAME REGISTRATION NAME. COMPLETE SEPARATE WORKSHEET AND NOTE PER REGISTRATION.
Registration Name (Please print) Social Security/Account # Date ________________________________________________________ _____________________________________ __________ | | | | | | |______________________________________________________| |___________________________________| |________| Use one Column for each exercise involving a Deferred Payment Obligation ----------------------------------- | Exercise | ----------------------------------- LINE # SOURCE #1 #2 #3 #4 #5 ----------------------------------- 1 Grant Date Line 1 on beige exercise form | | | | | | ----------------------------------- ----------------------------------- 2 Installment # Line 2 on beige exercise form | | | | | | ----------------------------------- ----------------------------------- 3 Total Amount Due Line 11 on beige exercise form | | | | | | ----------------------------------- ----------------------------------- 4 Maximum Percent Select applicable percent based | | | | | | Deferral Allowed upon answer on line 2 ----------------------------------- Installment #2 - 25% Installment #3 - 50% Installment #4, 5, and 6 - 90% 5 Maximum Dollar Line 3 multiplied by Line 4 ----------------------------------- Deferral Allowed | | | | | | ----------------------------------- 6 Actual Amount Cannot exceed Line 5. Enter on ----------------------------------- You Want to Defer Line 12 of beige exercise form | | | | | | ----------------------------------- TOTAL PAYMENT AMOUNT YOU WANT TO DEFER TO BE POSTED TO THE DEFERRED PAYMENT OBLIGATION NOTE. 7 Total Amount being Add all amounts on Line 6. Deferred Record this amount on the reverse ---------- side of this Deferred Obligation | | Note as the total amount being deferred. 7 ---------- ---------- CALCULATION OF SHARES TO BE HELD BY ARAMARK FOR DEFERRED PAYMENT OBLIGATION | | 8 Minimum Value of Collateral Required (Line #7 multiplied by 1.33) 8 ---------- 9 Current Appraisal Price Per Share (December 1, 1999 appraisal price) 9 $15.20 ---------- 10 Number of Shares Needed as Collateral (Line #8 divided by | | Line #9; round up to next whole share) 10 ---------- 11 Bank providing Name of bank recorded on Line #17 of beige exercise form 11__________________________ loan (if applicable) ---------- 12 Number of shares required by outside bank (per bank documentation) from | | current exercises to be held as collateral. 12 ---------- ----------------------------------- | | | | | | 13 Shares being Line 23 of beige exercise form 13 ----------------------------------- acquired in each exercise ---------- 14 Total shares Add Line 13 for all exercises | | being acquired 14 ---------- ---------- 15 Shares remaining from current exercises available for | | use as collateral (Line 14 minus Line 12) 15 ---------- ---------- 16 Additional shares, if any, needed to collateralize ARAMARK deferral (Line 15 less Line 10) | | If the result is zero or more, enter result on Line 16A 16A ---------- ---------- | | If the result is less than 0 (meaning you have a collateral shortage), 16B ---------- enter result on Line 16B and complete Line 17 until Line 17G equals Line 16B Cert/Conf# #shares 17 Other shares to be Identify other previously ------------ ------------ pledged to ARAMARK acquired shares that are to 17A ____________ ____________ be held by ARAMARK by 17B ____________ ____________ Certificate or 17C ____________ ____________ Confirmation #. Shares 17D ____________ ____________ cannot be pledged for 17E ____________ ____________ ---------- any other deferred 17F ____________ ____________ | | obligation or loan Total 17A through 17F ................ 17G ---------- 18 Total Shares ---------- Pledged to ARAMARK Line 17G + Line 15 (must equal Line 10) | | Record this amount on reverse as Total 18 ---------- Shares Pledged to ARAMARK
THIS COMPLETED FORM AND UNSIGNED STOCK CERTIFICATES ON LINE 17 MUST BE SUBMITTED AND RECEIVED IN ACCORDANCE WITH THE INSTRUCTIONS ON PAGE B-4 OR ON THE REVERSE SIDE OF THE EXERCISE FORM. EXPIRATION : January 15, 2000 ISPO SECTION I - INTERNAL MARKET SALE REQUEST FORM (USE ONE FORM PER REGISTERED OWNER.) INSTRUCTIONS: In this Section, you will be listing the certificate number(s) shown on the Certificate Profile Report that you are enclosing, indicating the number of shares listed on each, and the number of shares you would like to sell. NAME(S) (PLEASE PRINT): ACCOUNT # ("HID" NUMBER ON CERTIFICATE PROFILE REPORT): - ------------------------------------- -------------------------------------- | | | | | | | | | ------------------------------ | | ------------------------------- | - ------------------------------------- -------------------------------------- ----------------------------------- | SALE OF COMMON SHARES - CLASS B | ----------------------------------- NO. OF SHARES TO NO. OF SHARES SHOWN BE SOLD FROM THIS LINE CERTIFICATE/RECEIPT ON THE CERTIFICATE CERTIFICATE/ NO. NUMBER ENCLOSED PROFILE REPORT RECEIPT NUMBER ---- ------------------- ------------------- ----------------- Example: U99-1234* 1,000 750 - ------------------------------- ------------------- ----------------- 1 | | | | | | | | | | | | - --------|---------------------| |-----------------| |---------------| 2 | | | | | | | | | | | | - --------|---------------------| |-----------------| |---------------| 3 | | | | | | | | | | | | - --------|---------------------| |-----------------| |---------------| 4 | | | | | | | | | | | | - --------|---------------------| |-----------------| |---------------| 5 | | | | | | | | | | | | - --------|---------------------| |-----------------| |---------------| 6 | | | | | | | | | | | | - --------|---------------------| |-----------------| |---------------| 7 | | | | | | | | | | | | - --------|---------------------| |-----------------| |---------------| 8 | | | | | | | | | | | | - --------|---------------------| |-----------------| |---------------| 9 | | | | | | | | | | | | - --------|---------------------| |-----------------| |---------------| 10 | | | | | | | | | | | | - ------------------------------- ------------------- ----------------- TOTAL SHARES SHOWN TOTAL SHARES TO (ADD LINES 1 BE SOLD (ADD LINES THROUGH 10) 1 THROUGH 10) ------------------- ----------------- A | | B | | ------------------- ----------------- (COPY B TO LINE 1 ON REVERSE SIDE)--> - ----------------------------------------------------- TOTAL COMMON SHARES LEFT | | | OVER (A - B = C) | C | | - ----------------------------------------------------- NOTE: Shares used in a stock-for-stock exchange or purchased within the prior six (6) months CANNOT be sold. *Shares that do not begin with a "U" are certificated and stock certificates MUST BE ATTACHED. COMPLETE SECTIONS II AND III ON REVERSE SIDE OF THIS FORM. FORM: B EXPIRATION: JANUARY 15, 2000 ISPO SECTION II - INTERNAL MARKET WORKSHEET - SEE GENERAL INSTRUCTIONS PLEASE COMPLETE THE REVERSE SIDE FIRST. (USE ONE FORM PER REGISTERED OWNER.) - ------------------------- ---------------------- | SALE OF COMMON SHARES | ACCOUNT # | | - ------------------------- ---------------------- 1 Number of Common Shares to be Sold (Section I - Line B): ............................. 1 ______ 2 Sale Price Per Common Share (December 1, 1999 Appraisal Price): ................................. 2 $15.20 3 Total Sale Price of Common Shares (Line 1 x Line 2) ................................. 3 $_____ NOTE: IF SHARES TO BE SOLD ARE PLEDGED UNDER A PRIOR DEFERRED PAYMENT OBLIGATION, LINES 4A, B, AND C MUST ALSO BE COMPLETED. - ---------------------------------- | DISTRIBUTION OF TOTAL PROCEEDS | - ---------------------------------- 4 AMOUNT TO BE APPLIED TO PAY OFF RELATED DEFERRED PAYMENT OBLIGATION (write "N/A" if not applicable). Call the ARAMARK Shareholder Services Group at 1-888-96-OWNER to obtain the exact amounts of Principal Due and Accrued Interest Due. Note number(s) to be paid off ....#______________ (a) Principal Due: 4(A)$_____ (b) Accrued Interest Due: 4(B)$_____ Total Deferred Payment Due (Line 4a + Line 4b):.... 4(C)$_____ 5 AMOUNT TO BE APPLIED TO THE PURCHASE OF NEW SHARES (a) Grant Date:__________ ......................... 5(A)$_____ (b) Grant Date:__________ ......................... 5(B)$_____ (c) Grant Date:__________ ......................... 5(C)$_____ (d) Grant Date:__________ ......................... 5(D)$_____ (e) Total (Lines 5a + 5b + 5c + 5d): .............. 5(E)$_____ 6 AMOUNT TO BE APPLIED TO PAYOFF BANK LOAN AT ________________; LOAN #_______________ 6 $_____ 7 ESTIMATED CASH BACK TO YOU (Line 3 minus Line 4c minus Line 5e minus Line 6) (For both the Deferred Payment Program and bank loans, loan payoffs will be calculated based on the date the sale is processed.) 7 $_____ 8 TOTAL DISTRIBUTION (Line 4c + Line 5e + Line 6 + Line 7) Total must equal Line 3: ................. 8 $_____ SECTION III - INTERNAL MARKET REQUEST FORM - -------------- | SIGNATURES | - -------------- By signing below, you are offering to sell to ARAMARK the shares indicated on Line 1, subject to the terms and conditions of the Internal Market. You also are acknowledging that: you have full authority to sell the shares; you have received and read Form 10-K for fiscal 1999; you are under no obligation to sell; and the offer price is the most recent appraisal price, reflecting the shares' current lack of marketability and is substantially less than it would be if the shares were publicly traded. The Board reserves the right to reduce on a pro rata basis the number of Class B shares sold by all management owners in the Internal Market, depending upon the overall number of Class B shares submitted to the Company for sale. Subject to complying with applicable laws and regulations (including SEC Rule 13e-3), the Company will not repurchase shares of Class B Common stock from any stockholder if the repurchase causes such shares to be held-of-record by less than 300 holders. PLEASE SIGN BELOW EXACTLY AS YOUR NAME(S) APPEARS ON THE STOCK CERTIFICATE(S) OR CERTIFICATE PROFILE REPORT. PRINT NAME(S) SIGNATURE(S) DATE _________________________________________________________________________ _________________________________________________________________________ Mailing Address: _______________________________________________________ Daytime Phone Number: _________________________ Please indicate payment method you would prefer (if not completed a check will be issued): Check /___/ (checkbox) Direct Deposit /___/ (checkbox) (Complete attached Direct Deposit Authorization form.) THE COMPLETED FORMS AND STOCK CERTIFICATES, IF ANY, MUST BE RECEIVED AT THE SHAREHOLDER SERVICES GROUP NO LATER THAN JANUARY 15, 2000. (IF CERTIFICATES WERE NOT SENT TO YOU FOR THE SHARES, ATTACH A COPY OF THE CERTIFICATE PROFILE REPORT IN LIEU OF CERTIFICATES.) Send the form(s), stock certificate(s) or Certificate Profile Report to: First Union National Bank, N.A., Shareholder Services Group, P.O. Box 13675, Philadelphia, PA 19101-9024, or 123 South Broad Street, Floor 11-MBO MCPA 1328, Philadelphia, PA 19109. If you are selling shares in the Internal Market in order to exercise and purchase shares, please refer to the Prospectus Contact List and Mailing Instructions. EXPIRATION: JANUARY 15, 2000 ========================================= | DIRECT DEPOSIT AUTHORIZATION FORM FOR | | ARAMARK INTERNAL MARKET SALES | ========================================= *****DIRECT DEPOSITS CAN ONLY BE MADE INTO ACCOUNTS HELD AT UNITED STATES BANKS***** Please attach a voided check and fill in the information below. PLEASE PRINT CLEARLY - ------------------------------------------------------------------------- NAME OF FINANCIAL INSTITUTION BANK PHONE NUMBER - ------------------------------------ TRANSIT ROUTING NUMBER -------------------------------- | --> Attach Voided Check Here | TYPE OF ACCOUNT: -------------------------------- CHECKING /___/ (checkbox) SAVINGS /___/ (checkbox) ____________________________________ BANK ACCOUNT NUMBER _______________________________________________________________________ BANK ACCOUNT NAME (OWNER[S] OF THE BANK ACCOUNT) ========================================================================= | I /We hereby authorize ARAMARK to initiate a credit entry to my/our | | account indicated above. | | | | _____________________________________________________________________ | | SIGNATURE OF REGISTERED OWNER OF STOCK DATE | | | | _____________________________________________________________________ | | SIGNATURE OF REGISTERED OWNER OF STOCK DATE | | | | _____________________________________________________________________ | | DAYTIME PHONE NUMBER E-MAIL ADDRESS | | | | FIRST UNION NATIONAL BANK WILL CONTACT YOU ONCE YOUR DEPOSIT | | HAS BEEN MADE. AT THAT TIME, PLEASE CONTACT YOUR BANK TO | | VERIFY YOU HAVE RECEIVED THE FUNDS. IF YOUR BANK ADVISES YOU | | THAT THE FUNDS HAVE NOT BEEN RECEIVED, YOU SHOULD CALL FIRST | | UNION NATIONAL BANK AT 1-888-96-OWNER. | ========================================================================= (THIS PAGE INTENTIONALLY LEFT BLANK) ISPO STOCK-FOR-STOCK WORKSHEET - See General Instructions, p. B-1 NOTE: STOCK-FOR-STOCK TRANSACTIONS ARE AVAILABLE FOR ALL INSTALLMENTS. (USE ONE FORM PER REGISTERED OWNER.) STOCK-FOR-STOCK EXCHANGES ARE ADVANTAGEOUS FOR ONLY U.S. AND CANADA BASED EMPLOYEES UNDER CURRENT TAX LAWS, THEREFORE THEY ARE NOT AVAILABLE TO EMPLOYEES BASED IN COUNTRIES OTHER THAN THE U.S. AND CANADA. - ------------------------------------------------------------------------------ | EMPLOYEE NAME (PLEASE PRINT) | SOCIAL SECURITY OR ACCOUNT NUMBER | DATE | | | | | - ------------------------------------------------------------------------------
USE ONE COLUMN FOR EACH EXERCISE INVOLVING A STOCK-FOR-STOCK EXCHANGE --------------------------------------------- | EXERCISE* | --------------------------------------------- LINE # DEFINITION SOURCE |#1 #2 #3 #4 #5 TOTAL ------------------------------------------------------- 1 Grant Date Grant Date on | | | | | | | Exercise Form | | | | | | N/A | ------------------------------------------------------- ------------------------------------------------------- 2 This Year's Installment # on | | | | | | | Installment # Exercise Form | | | | | | N/A | ------------------------------------------------------- ------------------------------------------------------- 3 Maximum Dollar Amount Cost of Shares on | | | | | | | Eligible To Be Covered Exercise Form |$ | $ | $ | $ | $ | $ | By Exchange | | | | | | | ------------------------------------------------------- ------------------------------------------------------- 4 Approximate Dollar Amount of Line 3 you | | | | | | | Value Of Shares You wish to cover via | | | | | | | Wish To Exchange Stock-For-Stock (can't |$ | $ | $ | $ | $ | $ | exceed Line 3) ------------------------------------------------------- ------------------------------------------------------- 5 Current Appraisal December Quarterly | | | | | | | Price Per Share Appraisal |$15.20 | $15.20 | $15.20 | $15.20 | $15.20 | $15.20 | ------------------------------------------------------- ------------------------------------------------------- 6 Number Of Shares Line 4 (above) divided | | | | | | | To Be Exchanged by Line 5 (above). | | | | | | | Rounded down to | | | | | | | next full share ------------------------------------------------------- (Transfer to Line 14 of Exercise Form or to Exercise Wizard) ------------------------------------------------------- 7 Appraisal Price x Line 5 (above) x Line | | | | | | | Shares Exchanged 6 (above) |$ | $ | $ | $ | $ | $ | ------------------------------------------------------- (Transfer to Line 15 of Exercise Form or to Exercise Wizard) SHARE EXCHANGE SUMMARY ---------------------- NUMBER OF SHARES TO BE EXCHANGED ------------------------------------------------------- CERTIFICATE SHARES SHOWN | | NUMBER(S) ON THIS | | ENCLOSED CERTIFICATE |#1 #2 #3 #4 #5 TOTAL | -------------------------------------------------------------------------------------------- Note: Use additional | | | | | | | | | Stock-For-Stock |--------------|---------------------|-------|--------|--------|--------|--------|---------| Worksheets if you | | | | | | | | | are submitting |--------------|---------------------|-------|--------|--------|--------|--------|---------| more than 5 stock | | | | | | | | | certificates |--------------|---------------------|-------|--------|--------|--------|--------|---------| | | | | | | | | | |--------------|---------------------|-------|--------|--------|--------|--------|---------| | | | | | | | | | -------------------------------------------------------------------------------------------- ------------------------------------------------------- | | | | | | | TOTALS | | | | | | | ------------------------------------------------------- ------------------------------------------------------- | MUST EQUAL LINE 6 ABOVE FOR EACH | | EXERCISE AND IN TOTAL | -------------------------------------------------------
THIS COMPLETED FORM AND UNSIGNED STOCK CERTIFICATES MUST BE SUBMITTED AND RECEIVED IN ACCORDANCE WITH THE CONTACT LIST AND MAILING INSTRUCTIONS ON PAGE B-4 OR ON THE REVERSE SIDE OF THE EXERCISE FORM. *Information from this form can be used in the Stock Exercise Wizard to calculate and generate your Exercise Form. EXPIRATION: JANUARY 15, 2000 (THIS PAGE INTENTIONALLY LEFT BLANK) -----END PRIVACY-ENHANCED MESSAGE-----