Sally Beauty Supply 2006 Annual Report Download - page 100

Table of Contents
Culver’ s TSR was 104.07% placing it in the 87th percentile of the Standard & Poor’ s 500 Index with a
corresponding payout per unit of $2,000 under the Alberto-Culver SVIP.
(4)
The amount includes $4,172 of imputed income from life insurance; a Company contribution to the Profit
Sharing Plan of $9,389; $5,438 of matching contributions to the Sally Beauty 401(k) Savings Plan; and
$74,184 of contributions pursuant to the Alberto-Culver Executive Deferred Compensation Plan.
(5)
The amount includes $2,265 of imputed income from life insurance; a Company contribution to the Profit
Sharing Plan of $9,389; $5,438 of matching contributions to the Sally Beauty 401(k) Savings Plan; and
$17,489 of contributions pursuant to the Alberto-Culver Executive Deferred Compensation Plan.
(6)
The amount includes $2,097 of imputed income from life insurance; a Company contribution to the Profit
Sharing Plan of $9,389; $5,438 of matching contributions to the Sally Beauty 401(k) Savings Plan; and
$14,238 of contributions pursuant to the Alberto-Culver Executive Deferred Compensation Plan.
(7)
The amount includes $3,077 of imputed income from life insurance; a Company contribution to the Profit
Sharing Plan of $9,389; $5,438 of matching contributions to the Sally Beauty 401(k) Savings Plan; and
$47,195 of contributions pursuant to the Alberto-Culver Executive Deferred Compensation Plan.
(8)
The amount includes $2,437 of imputed income from life insurance; a Company contribution to the Profit
Sharing Plan of $9,389; $5,438 of matching contributions to the Sally Beauty 401(k) Savings Plan; and
$15,286 of contributions pursuant to the Alberto-Culver Executive Deferred Compensation Plan
Executive Officer Severance Agreements
The Company entered into Severance Agreements, each dated as of November 16, 2006, with certain Company executives. Each
Severance Agreement provides that if, in the 24 months following a Change in Control, the executive’ s employment is terminated by a
qualifying termination, which includes termination by the Company without Cause or by the executive for Good Reason, then the
executive will be entitled to certain benefits. These benefits include (i) a cash payment equal to the executive’ s annual bonus, as
determined in accordance with the Company’ s annual incentive plan, pro-rated to reflect the portion of the year elapsed prior to the
executive’ s termination, (ii) a lump-sum cash payment equal to a multiple of the executive’ s annual base salary at the time of
termination plus a multiple of the average dollar amount of the executive’ s actual or annualized annual bonus in respect of the five
years preceding termination, and (iii) continued medical and welfare benefits, on the same terms as prior to termination, for a period of
24 months following termination.
For purposes of the Severance Agreement:
• “Cause” generally includes the executive’ s (i) willful and deliberate breach of his or her duties and
responsibilities or (ii) commission of a felony involving moral turpitude.
• “Good Reason” generally includes (i) an adverse change to the executive’ s position, duties or
responsibilities, (ii) reduction of the executive’ s rate of salary or diminution of employee benefits, or
(iii) relocation of the executive of more than 20 miles from the facility where the executive was located at the
time of the Change in Control.
• “Change of Control” generally includes (i) the acquisition by any person, other than CDRS or its affiliates,
of 20% or more of the voting power of the Company’ s outstanding common stock, (ii) a change in the
majority of the incumbent board of directors, (iii) a reorganization, merger or consolidation of the Company
or sale of substantially all of the Company’ s assets, or (iv) shareholder approval of the complete liquidation
or dissolution of the Company.
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