Supercuts 2004 Annual Report Download - page 109

EXHIBIT 10(ee)
PROMISSORY NOTE
FOR VALUE RECEIVED, REGIS CORPORATION, a Minnesota corporation (the “Borrower”) hereby promises to pay to the order of
INFORMATION LEASING CORPORATION, an Ohio corporation, for Itself and as Agent for Certain Participants (the “Lender”), in lawful
money of the United States of America and in immediately available funds, the principal sum of ELEVEN MILLION EIGHT HUNDRED
SIXTY THOUSAND SEVEN HUNDRED FIFTY-EIGHT DOLLARS ($11,860,758) (hereinafter, the “Principal Sum” or the “Loan”),
together with interest on the Principal Sum outstanding from time to time at the rate or rates hereinafter described, all upon the terms and
conditions hereinafter set forth (computed on the basis of a 360-day year consisting of twelve (12) 30-day months).
1. Defined Terms. All capitalized terms used herein and not otherwise defined shall have the meanings given to such terms in the Loan
Agreement (as hereinafter defined).
2. Repayment of the Loan. The Borrower shall pay the principal amount of the Loan, together with interest thereon, until maturity (whether
by acceleration, extension or otherwise) at the rate of 7.16% per annum over a period of 7 years in 28 consecutive quarterly installments of
principal and interest, payable on the first of February, May, August and November in each year, commencing on February 1, 2004. Each
installment of principal and interest shall be in the amount of $ 539,636.35. The entire unpaid principal balance of the Loan, together with all
accrued and unpaid interest thereon (and all other amounts due hereunder and under the other Financing Documents), shall be due and payable
on November 1, 2010 (the “Maturity Date”).
3. Default Rate. In the event any payment is not made when due (whether at maturity, by acceleration or otherwise, or on demand) such
payment shall thereafter bear interest from the date such payment was due until such payment is received at the Default Rate. Upon the
occurrence of a Default, the entire unpaid principal balance of this Note shall bear interest at the Default Rate.
4. Prepayments. The Borrower may prepay this Note in whole, but not in part, at any time on or after November 1, 2005, subject to the
provisions of this paragraph 4. If Borrower is required or allowed to prepay this Note for any reason under the terms hereof or under any other
Financing Document, including (without limitation) damage, destruction, condemnation or acceleration, Borrower shall pay to Lender a
prepayment fee in an amount equal to the greater of (a) three percent of the amount prepaid or (b) an amount equal to the excess, if any, of
(i) the present value, in the aggregate, of the then remaining monthly principal and interest payments due under this Note from the date of
prepayment through the Maturity Date for this Note, absent the prepayment, using a discount rate equal to the yield to maturity of the U.S.
Treasury Note with a maturity date closest to the remaining term of this Note, as published in the Wall Street Journal on the Business Day
immediately preceding the date of the prepayment plus 175 basis points over (ii) the then outstanding principal balance of this Note, absent the
prepayment. Notwithstanding the aforegoing, in the event that the Borrower elects to repay the Loan simultaneously with the consummation of
a refinancing which involves the sale of real estate holdings of the Borrower and/or its subsidiaries (including the Property), the Borrower may
prepay the Loan in whole, but not in part, at any time after November 1, 2005 upon payment to the Lender of a prepayment fee in an amount
equal to the Swap Breakage (hereinafter defined) plus an amount equal to (a) 2.25% of the original amount of the Loan if the prepayment
occurs between November 1, 2005 and October 31, 2006, (b) 1.625% of the original amount of the Loan if the prepayment occurs between
November 1, 2006
$11,860,758
November 26, 2003
Salt Lake City, Utah