Supercuts 2005 Annual Report Download - page 90

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
Franchise Stock Purchase Plan:
The Company has a franchise stock purchase plan (FSPP) available to substantially all franchisee employees. Under the terms of the plan,
eligible franchisees and their employees may purchase the Company’s common stock. The Company contributes an amount equal to five
percent of the purchase price of the stock to be purchased on the open market and pays all expenses of the plan and its administration, not to
exceed an aggregate contribution of $0.7 million. At June 30, 2005, cumulative contributions to the FSPP totaled $98,000.
Summary of Benefit Plans
Compensation expense included in income before income taxes related to the aforementioned plans, excluding amounts paid for expenses
and administration of the plans, for the three years in the period ended June 30, 2005, included the following:
Stock Options:
On October 24, 2000, the shareholders of Regis Corporation adopted the Regis Corporation 2000 Stock Option Plan (2000 Plan), which
allows the Company to grant both incentive and nonqualified stock options and replaced the Company’s 1991 Stock Option Plan (1991 Plan).
Total options covering 3,500,000 shares of common stock may be granted under the 2000 Plan to employees of the Company for a term
not to exceed ten years from the date of grant. The term may not exceed five years for incentive stock options granted to employees of the
Company possessing more than ten percent of the total combined voting power of all classes of stock of the Company or any subsidiary of the
Company. Options may also be granted to the Company’s outside directors for a term not to exceed ten years from the grant date.
The 2000 Plan contains restrictions on transferability, time of exercise, exercise price and on disposition of any shares acquired through
exercise of the options. Stock options are granted at not less than fair market value on the date of grant. The Board of Directors determines the
2000 Plan participants and establishes the terms and conditions of each option.
The Company also has outstanding stock options under the 1991 Plan, although the Plan terminated in 2001. The terms and conditions of
the 1991 Plan are similar to the 2000 Plan. Total options covering 5,200,000 shares of common stock were available for grant under the 1991
Plan and, as of June 30, 2001, all available shares were granted.
The 2004 Long Term Incentive Plan (2004 Plan), which was approved by shareholders on October 28, 2004, also provides for the granting
of stock options. No stock options have been granted under the 2004 Plan. Refer to the discussion of the 2004 Plan in the latter portion of this
Note.
Common shares available for grant under the Company’s 2000 Plan were 337,300, 453,100 and 504,200 shares as of June 30, 2005, 2004
and 2003, respectively, and common shares available for grant under the Company’s 2004 Plan were 2,147,500 and 2,316,750 (taking into
consideration the grants which were pending shareholder approval) at June 30, 2005 and 2004, respectively.
89
2005
2004
2003
(Dollars in thousands)
Profit sharing plan
$
—
$
3,665
$
2,836
Executive Profit Sharing Plan
—
735
600
SPP
617
521
446
FSPP
15
7
6