Supercuts 2011 Annual Report Download - page 159

2)
Any officer bonus earned in FY11. Payment shall be made at the same time bonus payments are customarily made
to officers. Payment shall be subject to all statutory payroll deductions and other legally required withholdings.
3)
A single payment, less statutory payroll deductions and other legally required withholdings, representing the unused
balance of Employee’s Officer perquisites account for 2010-2011. This benefit is taxable and will be grossed up for
the related taxes. Payment shall be made following receipt of the signed agreement and following the expiration of
the rescission periods set forth in paragraphs 13 and 14.
4)
Regis will continue payments of employee’s automobile lease and automobile insurance through November 1, 2011,
the end of the lease term. This benefit is taxable and will be grossed up for the related taxes.
5) Employee will continue to receive medical and dental insurance benefits from Employer to the same extent as other
Executive Vice Presidents of the company receive such insurance, until June 30, 2012, at which time all such benefits
shall terminate. In addition, Employee’s participation in Employer’s executive medical reimbursement plan, wherein
participants are reimbursed for qualified out of pocket medical expenses not to exceed $7,000.00 in total in any given
calendar year, will continue until June 30, 2012. Employer will gross up this benefit to Employee for Employee’s
estimated taxes on this benefit.
c.
All of the payments listed in 2.b.1) through 2.b.5) which are made to or on behalf of the employee shall be made following:
1)
Receipt by Regis of the signed agreements; and
2)
Expiration of the rescission periods referred to in paragraphs 13 and 14.
The payments set forth in paragraphs 2.b.1) and 2.b.3) shall be made in a single lump sum payment within ten (10) business
days following satisfaction of the conditions set-forth in paragraphs 2.c.1) and 2.c.2). The payment set forth in paragraph
2.b.2), if any, shall be made in a single lump sum in August 2011 and following satisfaction of the conditions set forth in
paragraphs 2.c.1) and 2.c.2). The payments set forth in paragraph 2.b.5) should be made following satisfaction of the
conditions set forth in paragraph 2.c.1) and 2.c.2).
3.
Whole Life Insurance Policy . The existing whole life insurance policy in the face amount of $2.5 million dollars is fully paid.
4.
Stock Appreciation Rights . All vested stock appreciation rights have a strike price that is under water. Accordingly, rights to this
stock will be extinguished as of the date of termination.
5.
Unvested Restricted Stock Grants . Employer will provide no accelerated vesting for unvested restricted stock grants.
6.
Non-Compete Agreement . Employee expressly agrees, as a condition to the performance by Regis of its obligations hereunder, that
for a period of 24-months following employee’s separation from service with Regis and its affiliates, he will not, directly or indirectly,
own any interest in, render any services of any nature to, become employed by, or participate or engage in the licensed beauty salon
business, except with the prior written consent of Regis.
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