Document:

Exhibit 10.3

 

OPTION EXERCISE PERIOD EXTENSION AGREEMENT

 

This Option Exercise Period Extension Agreement (“Agreement”) is entered into by and between Sally Beauty Holdings, Inc. (“Employer”) and Gary Winterhalter (“Employee”) (collectively, the “Parties”).

 

WHEREAS, Employee is a participant in the Sally Beauty Holdings, Inc. 2007 Omnibus Incentive Plan (the “2007 Plan”) and the Sally Beauty Holdings, Inc. 2010 Omnibus Incentive Plan (the “2010 Plan”), as well as the Sally Beauty’s Founder’s Grant of December 2006, as amended as of the date of this Agreement (collectively, “Plans”), and has been awarded certain stock options under the terms of the Plans (the “Stock Options”); and,

 

WHEREAS, Employee is separating from Employer and wishes to agree to the terms of this Agreement in order to extend the period under which the Stock Options continue to vest (and correspondingly, the period he has to exercise the Stock Options) under the Plans; and,

 

WHEREAS, the sum of Employee’s age and years of service exceeds 75, and Employee has attained at least the age of 55, and thus Employee’s separation is deemed to be a “retirement” under the terms of the Plans, and Employee is otherwise eligible to enter into this Agreement;

 

NOW THEREFORE, the parties agree as follows:

 

1.             Separation Agreement Necessary.  Employee can only sign and receive the consideration/benefits provided for in this Agreement if Employee has also signed, and not revoked, the Separation Agreement provided to Employee on or after his Separation Date.  If that Separation Agreement is not effective, this Agreement is null and void.

 

2.             Extension Of Exercise Period.  In return for executing and thereafter abiding by the terms of this Agreement, including specifically the covenants in Sections 2 and 3 hereof, as well as the terms of the relevant stock option agreements and the Plans, Employee is eligible for the option exercise period extension benefits as set forth in Paragraph 5.3(b)(ii) of the 2007 Plan and Paragraph 10.2(a)(i) of the 2010 Plan.  The Plans and the relevant stock option agreements are incorporated herein by reference.  Specifically, and without limiting the terms of the Plans or such agreements, during the three-year period following Employee’s retirement, all of his unvested Stock Options shall continue to become exercisable in accordance with their respective terms during such three-year period as if Employee’s employment had not terminated, and all of Employee’s exercisable Stock Options (including those that become exercisable pursuant to the immediately preceding clause) may be exercised by Employee (or his beneficiary or legal representative) until the earlier of (A) (i) the third anniversary of Employee’s retirement or (ii) if Employee dies prior to such third anniversary of his retirement, the twelve-month anniversary of his death, or (B) the expiration of the term of such Stock Options. Upon the expiration of such period, all Stock Options not previously exercised by Employee shall be forfeited and canceled.

 

	
Initial:
    	
Employee
    	
/s/ GW
    	
 
    

 

1

 

3.             Employer Confidential Information.

 

i.              Employee agrees that Employee received and had access to materials and information regarding Employer’s technologies, know-how, products, services and sales that are proprietary and confidential to Employer, and that would give Employee an unfair competitive advantage in competing with Employer if Employee’s activities are not restricted as provided for in this Agreement.  Employee recognizes that these materials and information are an important and valuable asset to Employer and that Employer has a legitimate interest in protecting the confidential and proprietary nature of these materials and information.

 

ii.             Employee agrees that the information, observations and data obtained by Employee during the course of Employee’s employment with Employer and relevant Employer Affiliate(1) are the sole property of the Employer.  Employee agrees that from the date of this Agreement and thereafter, without the express written consent of the Employer’s President, Employee will not disclose to any person or entity (collectively, “Entity”) or use for Employee’s own account or for the benefit of any third party any Confidential Information(2), unless and only to the extent that such Confidential Information becomes generally known to and available for use by the public or in the trade other than as a result of the Employee’s acts or inaction or the wrongful act of any third party.  The parties agree that Confidential Information and all elements of it are important, material, confidential and gravely affect the successful conduct of the Employer and any relevant Employer Affiliate.

 

iii.            Employee states that, except as expressly permitted by Employer in writing to retain such items, Employee has delivered to Employer all memoranda, notes, plans, records, reports, computer disks and memory, and other documentation and copies thereof (however stored or recorded) relating to the business of Employer and any relevant Employer Affiliate, and/or which contain Confidential Information, which Employee possesses or has custody or control of.  Employee has not retained copies.  Employee has also returned all of Employer’s and any relevant Employer Affiliates’ property within Employee’s custody or control.  Employee and Employer acknowledge that Employee may continue to have access to Confidential Information pursuant to the separate Consulting Agreement between the Parties.

 

(1)   “Employer Affiliate” for purposes of this agreement shall mean any division, affiliate, subsidiary or other entity which has Sally Beauty Holdings, Inc. (or its predecessor or successor) as the ultimate parent company.  The list of Employer Affiliates currently includes, but is not limited to:  Sally Beauty Supply LLC, Beauty Systems Group LLC and Armstrong-McCall L.P.

 

(2)    “Confidential Information” for purposes of this Agreement shall mean information (whether gained before or after his separation from Employer) relating to the Employer or any Employer Affiliate that is generally not disclosed outside of the company, and shall include but not be limited to:  Employer’s or any Employer Affiliate’s business plans and future product or market developments, all financial information, information regarding suppliers and costs of products and other supplies, financing programs, and any other information regarding personnel, operations,  overhead, distribution; present or future plans related to real estate and leaseholds (including site selection); and information regarding computer and communication systems, software operating systems, source codes, lawsuits, legal documents, legal strategies and the like.

 

	
Initial:
    	
Employee
    	
/s/ GW
    	
 
    

 

2

 

4.             Unfair Competition.

 

i.              Beginning on the day after Employee’s final date of employment with Employer and any relevant Employer Affiliate if earlier (the “Separation Date”), and ending on the day one (1) year thereafter, Employee agrees he shall remain loyal to Employer and shall not, directly or indirectly, engage in “Unfair Competition”.  Employee agrees that it shall be considered “Unfair Competition” for him to:

 

a.             be employed in, participate in, provide, supervise, or manage (as an employee, consultant, contractor, officer, owner, director, or otherwise) any activities or services for an entity that competes with Employer or any Employer affiliate in any geographic area where Employer does business (the “Territory”) where the position or activity would (a) involve services that are the same as or similar in function or purpose to those Employee performed, supervised, or managed for Employer or any Employer affiliate in the two (2) year period preceding Employee’s separation from Employer or (b) would be likely to involve the use Confidential Information.

 

b.             either directly or indirectly, solicit for employment or otherwise interfere with the relationship of Employer or any Employer Affiliate with any natural person who is then-currently employed by or otherwise engaged to perform services for Employer or any Employer Affiliate within the Territory; or,

 

c.             interfere with the business relationship between any Employer Affiliate and one of its customers, suppliers or vendors operating within the Territory by soliciting, inducing, or otherwise encouraging a customer, supplier or vendor to reduce or stop doing business with any Employer Affiliate, or engaging any such Employer Affiliate customer or supplier to do business with or on Employee’s (or Employee’s employer’s) behalf for the purpose of selling to such customer beauty supply business products or services; or,

 

d.             disparage the business or interests of Employer or any Employer Affiliate (provided however, it shall not be deemed “disparagement” for Employee to comply with his obligations in any written agreement with Employer or any Employer Affiliate); or,

 

e.             supervise of any of the foregoing activities.

 

ii.             Employee will give Employer written notice of any offer that he receives from a competing business before accepting it. Employee will also provide Employer at least thirty (30) days’ notice before performing any personal services for a competing business (such as a retail, professional or online seller or distributor of beauty products) doing business within the Territory and meet with an Employer representative to discuss the nature of his new position if Employer requests such a meeting to help avoid unnecessary disputes.  Employee understands that Employer is not required to request such a meeting and that a failure to resolve disputes through such a meeting will not be considered a waiver of any rights by either Party.

 

iii.            Employer may notify any future or prospective employer or third party of the existence of this Agreement.  Employee stipulates that the harm caused by a violation of this Agreement by him would be irreparable, cannot be readily and fully remedied through monetary 

 

	
Initial:
    	
Employee
    	
/s/ GW
    	
 
    

 

3

 

damages, and shall warrant injunctive relief in addition to, and not in place of, any other legal remedies available for any breach, including reasonable attorney’s fees and costs.  Employee acknowledges and agrees that his violation of any of the restrictive covenants in Section 2 or 3 above would constitute a failure of consideration, as those covenants are consideration for Employer’s agreements herein, including, without limitation, the extension of the Stock Option Exercise Period set forth in Section 1 above.  Employee agrees that, in addition to all other remedies or rights, in the event Employee violates any of the restrictive covenants in Section 2 or 3, as determined by Employer in its sole discretion, then (i) all Stock Options granted to Employee, whether or not then exercisable, shall be immediately forfeited and canceled as of the date of such violation, and (ii) Employee shall, within 30 days after such determination of a violation, pay an amount to Employer equal to the sum of any gain received by Employee that is attributable to the exercise after the date of his retirement of Stock Options the terms of which have been extended pursuant to this Agreement.  Employee understands and agrees that if he is found to have violated one of the time-limited, post-employment-termination restrictions on his conduct created by this Agreement, the time period for that restriction will be extended by one day for each day that he is found to have been in violation of the restriction up to a maximum period of nine (9) months.  If there is a dispute over this Agreement, Employee agrees that if Employer prevails, Employer shall be entitled to recover from Employee all reasonable costs and expenses including reasonable attorneys’ fees and costs; provided, however, that Employer need not get all relief that it requests in order to be considered a prevailing party.

 

5.             Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Texas, without reference to principles of conflict of laws which would require application of the law of another jurisdiction, except to the extent that the corporate law of the State of Delaware specifically and mandatorily applies.

 

6.             Notice.  Any notice to be given to Employer hereunder will be deemed sufficient if addressed to Employer in writing and hand-delivered or mailed by certified mail to General Counsel, Sally Beauty Holdings, Inc., 3001 Colorado Boulevard, Denton, Texas 76210.  Any notice to be given to Employee hereunder will be deemed sufficient if addressed to Employee in writing and hand-delivered or mailed by certified mail to Employee at Employee’s last known address as shown on Employer’s records.  Either party may designate a different address or addresses by giving notice according to this Section.

 

7.             Severability; Reformation; Right To Revoke/Terminate.  In the event that any one or more of the provisions of this Agreement shall become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby.  If, in the opinion of any court of competent jurisdiction such covenants are not reasonable in any respect, such court shall have the right, power and authority to delete, reform or modify such provision or provisions of these covenants as to the court shall appear not reasonable and enforce these covenants as so amended.  Any Employer remedies set forth in this Agreement are in addition to the rights as set forth in the Plans, such as for revocation, termination, forfeiture and/or cancellation.  Provided however, that: (i) as a result of the  provisions of this Agreement being declared illegal or unenforceable or their being substantially modified; or, (ii) if Employee claims, through a lawsuit or otherwise that provisions of this Agreement are illegal, unenforceable or subject to substantial modification; and as a result

 

	
Initial:
    	
Employee
    	
/s/ GW
    	
 
    

 

4

 

of such declaration, or if in the event of such claim of Employee being enforced, Employer loses the benefit of its bargain (such as, without limitation, a compromise of Employer’s rights of confidentiality or protection against Employee engaging in Unfair Competition), Employer shall have no further obligation under this Agreement and the Agreement shall at the option of Employer be declared void, whereupon (i) all Stock Options granted to Employee, whether or not then exercisable, shall be immediately forfeited and canceled, and (ii) Employee shall pay an amount to Employer equal to the sum of any gain received by Employee that is attributable to the exercise after the date of his retirement of Stock Options the terms of which have been extended pursuant to this Agreement.

 

8.             Headings and Captions.  The headings and captions herein are provided for reference and convenience only, shall not be considered part of this Agreement, and shall not be employed in the construction of this Agreement.

 

9.             Entire Agreement.  This Agreement contains all the terms and conditions agreed upon by the parties with respect to the subject matter hereof and no provision expressed in this Agreement may be altered, modified and/or cancelled except upon the express written consent of the parties.  The terms and conditions contained in this Agreement supersede any previous agreement or arrangement between the parties other than sections of any agreement addressing Unfair Competition or Employee’s use/treatment of Confidential Information, which are supplemented by this Agreement.  This Agreement and all rights and benefits are personal to Employee, and neither this Agreement, nor any Employee right or interest arising in this Agreement, shall be voluntarily sold, transferred or assigned by Employee, except as expressly set forth in the Plans and any related documents.

 

The parties have signed this Agreement on the dates written by the signatures below, to be effective on the day Employee signs the Agreement.  Notwithstanding any other provision in this Agreement, if Employee does not sign and deliver this Agreement to Employer at the address shown in the subsection under “Miscellaneous” entitled “Notice” on or before 45 days following Employee’s receipt of this Agreement from Employer, then this Agreement will be null and void and Employee will not be entitled to the consideration described above.

 

WHEREFORE, the parties have agreed as hereinbefore set forth.

 

	
EMPLOYER:
    	
 
    	
EMPLOYEE:
    
	
 
    	
 
    	
 
    
	
SALLY   BEAUTY HOLDINGS, INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Matthew Haltom
    	
 
    	
/s/   Gary Winterhalter
    
	
 
    	
 
    	
 
    	
Gary   Winterhalter
    
	
Title:
    	
SVP,   General Counsel & Sec.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
Feb. 18,   2016
    	
 
    	
Date:
    	
2-18-16
    

 

	
Initial:
    	
Employee
    	
/s/ GW
    	
 
    

 

5Exhibit 10.4

 

SEPARATION AGREEMENT

 

This Separation Agreement (“Agreement”) is entered into by and between Brian Walker (“Employee”) and Sally Beauty Supply LLC (“Employer”).

 

1.                                      Separation of Employment.  Employee separated from employment with Employer on February 10, 2016 (the “Separation Date”).

 

2.                                      Consideration.  In consideration of the release of all claims by Employee as provided for in this Agreement, and for the other agreements by Employee herein, Employer will provide Employee with the following consideration (the “Release Consideration”):

 

a.              Payment of the gross amount of Four Hundred Sixty-One Thousand Two Hundred Fifty Dollars ($461,250.00) (less any withholdings required by law or deductions authorized by the parties’ previous agreement or as otherwise agreed to in this Agreement) (the “Severance Payment”), which amount represents fifteen (15) months of Employee’s base salary.

 

b.              Payment of the net amount of Thirty-One Thousand Five Hundred Ten Dollars and Eighty Cents ($31,510.80) (with the gross amount paid being subject to withholdings required by law or deductions authorized by the parties’ previous agreement or as otherwise agreed to in this Agreement), with the after-tax amount representing the cost to Employee for health insurance continuation under the Consolidated Omnibus Budget Reconciliation Act (COBRA) (the “COBRA Payment”) for fifteen (15) months.

 

c.               Payment of a prorated annual bonus for fiscal year 2016, equal to (1) the bonus, if any, that would have been earned by Employee for fiscal year 2016 if he had remained employed on the normal payment date for such bonus under Employer’s Annual Incentive Plan, based on actual performance under applicable financial metrics, (2) multiplied by a fraction, the numerator of which is the number of days worked by Employee during fiscal year 2016 and the denominator of which is 365 (the “Prorated Final Year Bonus”).

 

Employee agrees that this Release Consideration is in addition to anything of value to which Employee already is entitled.  The Severance Payment is payable in approximately equal installments, consistent with Employer’s normal payroll practices, over a fifteen (15) month period starting on the first regular payroll date that occurs after the sixtieth (60th) day following the Separation Date.  The COBRA Payment is payable in a lump sum on the first regular payroll date that occurs after the sixtieth (60th) day following the Separation Date.  The Prorated Fiscal Year 2016 Bonus will be paid at the same time that the fiscal year 2016 annual bonuses are paid under Employer’s Annual Incentive Plan to active participants.

 

3.                                      Release.  In consideration of the Release Consideration, Employee hereby fully, finally, and completely releases Employer and its predecessors, successors, parents, subsidiaries, affiliates, shareholders, partners, current and former officers, directors, employees, agents, attorneys and representatives (collectively, the “Released Parties”), from any and all claims, actions, demands, and/or causes of action, of whatever kind or character, whether now known or unknown, arising from, relating to, or in any way connected with, facts or events occurring on or before the date on which Employee executes this Agreement.  Employee agrees that this Agreement includes a release of any and all negligence claims, contractual claims,

 

 

wrongful discharge claims, and claims of discrimination or retaliation of every possible kind, including but not limited to, claims on the basis of race, color, sex, sexual orientation, national origin, religion, disability, age, whistleblower status under state or federal law, including, but not limited to the Americans with Disabilities Act, the Age Discrimination in Employment Act (ADEA), the National Labor Relations Act (NLRA), Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866, claims under Chapters 21 and 451 of the Texas Labor Code, and other federal, state or local laws relating to employment or termination of employment, any personal injury claims, and any related attorneys’ fees and costs claims, if any, that Employee may have against Employer or any of the Released Parties.  Employee waives and releases Employer and the Released Parties from any claims that this Agreement was procured by fraud or signed under duress or coercion so as to make any of the terms or provisions of this Agreement not binding.  Employee further releases Employer and the Released Parties from any and all claims, allegations, assertions or defenses that the restrictions contained within Section 5 of this Agreement are overly broad, unreasonable, unenforceable, or supported by insufficient consideration.

 

Employee understands that nothing in this Agreement is intended to interfere with or deter Employee’s right to challenge the waiver of an ADEA claim or state law age discrimination claim or the filing of an ADEA charge or ADEA complaint or state law age discrimination complaint or charge with the Equal Employment Opportunity Commission or any state discrimination agency or commission or to participate in any investigation or proceeding conducted by those agencies.  Further, Employee understands that nothing in this Agreement would require Employee to tender back the money received under this Agreement if Employee seeks to challenge the validity of the ADEA or state law age discrimination waiver, nor does the Employee agree to ratify any ADEA or state law age discrimination waiver that fails to comply with the Older Workers’ Benefit Protection Act by retaining the money received under the Agreement.  Further, nothing in this Agreement is intended to require the payment of damages, attorneys’ fees or costs to Employer should Employee challenge the waiver of an ADEA or state law age discrimination claim or file an ADEA or state law age discrimination suit except as authorized by federal or state law.  Notwithstanding this paragraph, Employee agrees to waive any right to recover monetary damages in any charge, complaint, or lawsuit against Employer filed by Employee or by anyone else on Employee’s behalf.

 

Employee also acknowledges (i) receipt of all compensation and benefits due through the date Employee signs this Agreement as a result of services performed for Employer with the receipt of a final paycheck except as provided in this Agreement; (ii) Employee has reported to Employer any and all work-related injuries incurred during employment; and (iii) Employer properly provided any leave of absence because of Employee’s or a family member’s health condition and Employee has not been subjected to any improper treatment, conduct or actions due to a request for or taking such leave.

 

4.                                      Equity Awards.  As of the Separation Date, Employee holds (A) vested options to purchase 8,398 shares of Employer’s common stock (the “Vested Options”) and unvested options to purchase 54,426 shares of Employer’s common stock (the “Unvested Options”), and (B) 7,650 restricted shares of Employer’s common stock (the “Restricted Shares”).  The parties agree that (i) Employee shall have until 5:00 p.m. Central Time on April 10, 2016 to exercise the Vested Options, following which time any Vested Options remaining outstanding and unexercised shall lapse and terminate immediately, and Employee shall cease to have any rights with respect to such terminated Vested Options as of such time, (ii) the Unvested Options lapsed and terminated immediately as of the Separation Date, and Employee ceased to have any rights with respect to such terminated Unvested Options as of the Separation Date, and (iii) the Restricted Shares were forfeited automatically as of the Separation Date, and Employee ceased to have any rights with respect to such forfeited Restricted Shares as of the Separation Date.

 

 

5.                                      Agreement Not to Solicit or Hire Employees.  For a period of 15 months after the Effective Date of this Agreement, Employee shall not, nor will Employee assist any third party to, directly or indirectly:  (i) recruit, raid, solicit, or attempt to persuade any employee of Company or any person who is a current employee of Employer; (ii) interfere with the performance by any such persons of their duties for Employer; or (iii) communicate with any such persons for the purposes described in items (i) and (ii) in this paragraph.

 

6.                                      Confidentiality and Non-disparagement.  Employee agrees to keep the terms and conditions of this Agreement confidential to the extent allowed by law, except Employee may supply a copy to Employee’s accountant or other financial advisor solely in connection with preparing Employee’s income tax return, and Employee may disclose this Agreement to members of Employee’s immediate family and to Employee’s attorney on a confidential basis.  Employee also agrees to keep confidential any and all discussions, communications and documents relating to the issues and negotiations that led to this Agreement and the underlying facts, allegations, documents and communications related to any claims of discrimination Employee made during Employee’s employment with Employer.  Employee further agrees not to talk about or otherwise communicate to any third parties in a malicious, disparaging, or defamatory manner regarding Employer or any of the Released Parties.  Employee also agrees that Employee shall not make or authorize to be made any written or oral statement that may disparage or damage the reputation of Employer.

 

Nothing in this section or Agreement is to be construed to preclude Employee or any individual from communicating with any government agency, including the Equal Employment Opportunity Commission, National Labor Relations Board and/or Securities and Exchange Commission, or otherwise participating in any investigation or proceeding that may be conducted by any government agencies in connection with any charge or complaint, whether filed by Employee, on Employee’s behalf, or by any other individual.

 

7.                                      Confidential Information and Trade Secrets.  Employee acknowledges Employee’s ongoing legal and fiduciary obligations to maintain the confidentiality of Employer’s confidential business-related information and trade secrets, including, but not limited to, Employer’s strategy, future plans, merchandising, marketing and sales initiatives, proprietary business methods and processes.

 

8.                                      Tax Indemnification.  Employee acknowledges and agrees that Employer has not made any representations to Employee regarding the tax consequences of any amounts received by Employee pursuant to this Agreement.  The parties further agree that if any local, state or federal authority determines that the tax treatment for payments made under this Agreement is improper or impermissible, Employee shall be solely responsible for payment of all such taxes due, including interest and penalties, and Employee shall indemnify Employer for all such tax payments, including interest and penalties.  To the extent Employer is penalized for any failure to withhold or pay taxes, Employee agrees that Employee will indemnify Employer for its costs, expenses, fees (including reasonable and necessary attorneys’ fees) and/or penalties with respect to taxes or the failure to withhold.

 

9.                                      Employee’s Attorneys’ Fees and Costs.  Employee acknowledges and represents that all claims for attorneys’ fees, costs, or other recoverable expenses that Employee’s attorneys may hold against Employer as Employee’s attorneys will be satisfied solely by Employee.

 

10.                               Employment Reference and Verification.  Employee agrees that for employment verification or reference purposes, Employee will only refer prospective employers to the third party service entitled “The Work Number” 1-800-367-5690 or www.theworknumber.com.  This online employment verification service can provide confirmation of employment and dates of employment.  The relevant employer code to use is 11140.  Should this service change, Employee agrees to use the third party service then used by Employer.  Employee agrees not to contact, or direct others to contact, any active employee or representative of Employer for a reference or information relating to Employee’s employment with Employer.

 

 

11.                               Advice of Counsel, Consideration and Revocation Periods, Other Information.  Employer advises Employee to consult with an attorney prior to signing this Agreement.  Employee has 21 days to consider whether to sign this Agreement from the date Employee receives this Agreement (Consideration Period).  Employee must return this signed Agreement to Employer’s representative set forth below within the Consideration Period.  If Employee signs and returns this Agreement before the end of the Consideration Period, it is because Employee freely chose to do so after carefully considering its terms.  Additionally, Employee shall have seven days from the date of the Employee signs this Agreement to revoke this Agreement by delivering a written notice of revocation within the seven-day revocation period to the same person as Employee returned this Agreement.  If the revocation period expires on a weekend or holiday, Employee will have until the end of the next business day to revoke. Employee agrees with Employer that changes, whether material or immaterial, do not restart the running of the Consideration Period.

 

12.                               Exceptions.  Nothing in this Agreement is intended to waive claims (i) for unemployment or workers’ compensation benefits, (ii) for vested rights under ERISA-covered employee benefit plans as applicable on the date Employee signs this Agreement, (iii) that may arise after Employee signs this Agreement, or (iv) which cannot be released by private agreement.  In addition, nothing in this Agreement including but not limited to the acknowledgements, release, confidentiality, non-disparagement, tax indemnification, employee’s attorneys’ fees and costs, eligibility for re-employment, and employment verification provisions, prevent Employee from filing a charge or complaint with or from participating in an investigation or proceeding conducted by the EEOC, NLRB, SEC or any other any federal, state or local agency charged with the enforcement of any laws, or from exercising rights under Section 7 of the NLRA to engage in joint activity with other employees, although by signing this release Employee is waiving rights to individual relief based on claims asserted in such a charge or complaint, or asserted by any third-party on Employee’s behalf, except where such a waiver of individual relief is prohibited.

 

13.                               Miscellaneous.

 

a.                                      The “Effective Date” of this Agreement is the eighth (8th) day after Employee signs this Agreement, provided Employee does not revoke the Agreement.

 

b.                                      Entire Agreement/No Assignment.  This instrument sets forth the entire agreement between the parties and no representation, promise, or condition not contained herein will modify these terms except any prior agreements related to inventions, business ideas, confidentiality of corporate information, and non-competition remain intact.  The rights under this Agreement may not be assigned by Employee, unless Employer consents in writing to said assignment.  Employee represents that Employee has not assigned any of the claims related to the matters set forth herein.

 

c.                                       No Admission of Liability. Nothing in this Agreement constitutes the admission of any liability by Employer, the Released Parties or Employee.

 

d.                                      Read Agreement/Advice of Attorney.  Employee acknowledges that Employee has read and understood this Agreement, has been advised to and has had the opportunity to discuss it with an attorney of Employee’s own choice, agrees to its terms, acknowledges receipt of a copy of same and the sufficiency of the payment recited herein, and signs this Agreement voluntarily.

 

 

e.                                       Applicable Law and Severability.  The parties agree that the terms of this Agreement are contractual in nature and not merely recitals and will be governed and construed in accordance with the laws of the State of Texas.  The parties further agree that should any part of this Agreement be declared or determined by a court of competent jurisdiction to be illegal, invalid, or unenforceable, the parties intend the legality, validity and enforceability of the remaining parts will not be affected thereby, and said illegal, invalid, or unenforceable part will be deemed not to be a part of the Agreement.

 

f.                                        Notice.  Any notice to be given to Employer hereunder will be deemed sufficient if addressed to Employer in writing and hand-delivered or mailed by certified mail to General Counsel, Sally Beauty Holdings, Inc., 3001 Colorado Boulevard, Denton, Texas 76210.  Any notice to be given to Employee hereunder will be deemed sufficient if addressed to Employee in writing and hand-delivered or mailed by certified mail to Employee at Employee’s last known address as shown on Employer’s records.  Either party may designate a different address or addresses by giving notice according to this Section.

 

14.                               Code Section 409A.  This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder.  Nevertheless, the tax treatment of the benefits provided under the Agreement is not warranted or guaranteed to Employee, who is responsible for all taxes assessed on any payments made pursuant to this Agreement, whether under Section 409A of the Code or otherwise.  Neither Employer nor its directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by Employee as a result of the application of Section 409A of the Code.  Each installment payment under Section 2 of this Agreement shall be deemed to be a separate payment, as described in Treas. Reg. Section 1.409A-2(b)(2), for purposes of Section 409A of the Code.

 

The parties have signed this Agreement on the dates written by the signatures below.  Notwithstanding any other provision in this Agreement, if Employee does not sign and deliver this Agreement to Employer at the address shown in the subsection under “Miscellaneous” entitled “Notice” prior to the end of the Consideration Period or if Employee revokes this Agreement, then this Agreement will be null and void and Employee will not be entitled to the Consideration described above.

 

	
EMPLOYEE:
    	
 
    	
EMPLOYER:
    
	
 
    	
 
    	
 
    
	
/s/ Brian Walker
    	
 
    	
/s/ Matthew Haltom
    
	
BRIAN WALKER
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
TITLE:
    	
SVP & General   Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SALLY BEAUTY SUPPLY LLC
    
	
 
    	
 
    	
 
    
	
Date: 15 February, 2016
    	
 
    	
Date: 15 February, 2016

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