Sally Beauty Supply 2006 Annual Report Download - page 112

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Exhibit 10.10
May 25, 2006
Michael G. Spinozzi
4634 Lohr Road
Ann Arbor, Michigan 48108
Dear Mike:
I am writing to confirm the following agreement related to your employment with Sally Beauty Company, Inc. (“Sally”).
You have expressed concern over your lack of financial protection in the event of a change of control of Sally. In order to allay the
concern you have, and to comfortably allow you to focus on the needs of the business following your hire on May 30, 2006, I am
pleased to make you the following offer.
In the event that you are terminated by Sally (as opposed to separating from the company of your own volition) for other than Just
Cause (as defined hereafter), Sally will pay you the sum equivalent to one year’ s base salary, that is, three hundred seventy five
thousand dollars ($375,000) (the “Termination Payment”), less any taxes and other legally required withholding, subject to the
conditions of this letter agreement. No payment shall be due in the event you separate from the company of your own volition or the
termination is for Just Cause.
Your rights under this letter agreement and your eligibility for this Termination Payment shall end on such date as you are offered a
Separation Agreement (as defined hereafter) by Sally or an affiliate, or May 24, 2008, whichever comes first. We reserve the right to
have you acknowledge the voiding of this letter agreement prior to tendering you a Separation Agreement for signature. In order to
collect the Termination Payment under this letter agreement, you acknowledge you will be required to sign a general release of claims
and covenant not to sue in favor of Sally, its affiliates, officers and employees on such terms as are proposed by Sally.
As used in this letter agreement, the term “Separation Agreement” shall mean an agreement between you and Sally or an affiliate
under which you are paid a sum of money in the event you are terminated (whether during a specified time certain or not) following a
“change of control” of Sally or a group of Sally affiliates including Sally. The term “change of control” shall be as defined in the
Separation Agreement at the sole discretion of the issuer. The Separation Agreement which will be offered to you must be
substantially similar to that offered other Sally employees at your job grade level.
As used in this letter agreement, the term “Just Cause” shall mean a termination of your employment because of: (i) conviction of or
entry of a plea of guilty or nolo contendere to a felony, misdemeanor (or any similar crime for purposes of laws outside the United
States) or any crime of moral turpitude, (ii) fraud or dishonesty, (iii) repeated willful failure to perform assigned duties, (iv) gross
negligence in the performance of duties, (v) willful violation of one or more of a policy or established practice governing employee
conduct, or (vi) intentionally engaging in conduct that is harmful to the Company.
This letter agreement sets forth the entire understanding of the parties and supersedes any and all prior agreements, arrangements and
understandings among the parties related to the payment of any sum such as the Termination Payment. This letter agreement will be
effective once we complete our standard Sally preconditions of hire, including filling out and signing our standard employment
application and a satisfactory background check and verification of your educational credentials. Unless you are advised otherwise,
these preconditions of hire will be deemed satisfied and this letter agreement shall be effective on June 2, 2006.
You understand that nothing in this letter changes the “at will” nature of your employment and that you remain an at-will employee
notwithstanding any payment you may be due under this letter agreement. This letter agreement may be amended, modified or
supplemented only in a writing signed by you on one hand and the President of Sally on the other hand. This letter agreement shall be
governed by the laws of the state of Texas in the same fashion as agreements entered into and wholly performed within the state of
Texas. If any portion of this letter agreement shall be held invalid, illegal or enforceable, the validity, legality and enforceability of the
other portions shall not be
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