Document:

exhibit10-1.htm

ACQUISITION AGREEMENT

This Agreement, entered into effective the 23rd day of May, 2013, by, between and among Ensurge, Inc., a corporation organized under the laws of the State of Nevada  (hereinafter the "Purchaser"), and the Shareholders ("the Shareholders") of TransGlobal Gold Corporation, a privately-held Nevada corporation (hereinafter the "Company").

Witnesseth:

WHEREAS, Purchaser wishes to acquire, and Shareholders are willing to exchange, eighty percent (80%) all of the outstanding stock of the Company in exchange for common stock of the Purchaser;

NOW, THEREFORE, in consideration of the mutual terms and covenants set forth herein, Purchaser and Shareholders approve and adopt this Acquisition Agreement and mutually covenant and agree with each other as follows:

ARTICLE I

Shares to be Transferred and Shares to be Issued

1.01 Exchanges.

a.  On the closing date the Shareholders shall transfer to Purchaser certificates for the number of shares of the common stock of the Company which, in the aggregate, shall represent eighty percent (80%) of the issued and outstanding shares of stock of the Company.  Such certificates shall be duly endorsed in blank by Shareholders or accompanied by duly executed stock powers in blank with signatures guaranteed.  Alternatively, the shareholders may assign their rights to the shares if the shares have not been physically issued in the form of stock certificates, or if the certificates have been lost.

b.  In exchange for the transfer of the common stock of the Company pursuant to sub-section 1.a. hereof,  Purchaser shall on the closing date issue and deliver to the Shareholders a total of 6,000,000 shares of common stock in the names and amounts to be provided hereafter.  Four million (4,000,000) shares shall be held in escrow until the Company produces an aggregate of three hundred (300) ounces of precious metals from operations.

 

 

c.  As a result of the exchange of shares, the Company will become a majority-owned subsidiary of the Purchaser.

2.02  Intended Tax Treatment.  The parties intend that this acquisition and exchange of shares is to be a “tax free” exchange/transaction pursuant to Section 368(a)(1)(b) of the Internal Revenue Code of the United States.

  

  

  

ARTICLE II

Representations and Warranties of the Company and the Shareholders

2.01           Organization and Authority.

1.  The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada, with all requisite corporate power and authority to own, operate and lease its properties and to carry on its business as now being conducted, is duly qualified and in good standing in every jurisdic­tion in which the property owned, leased or operated by it, or the nature of the business conducted by it, makes such qualification necessary to avoid material liabil­ity or material interference in its business opera­tions, and is not subject to any agreement, commitment or understanding which restricts or may restrict the conduct of its business in any jurisdiction or loca­tion.

2.  The outstanding shares of the Company are legally and validly issued, fully paid and non-assessable.

3.  The Company does not own five percent (5%) or more of the outstanding stock of any corporation, except as listed on the Disclosure Statement.

4.  The minute book of the Company made available to Purchaser contains complete and accurate records of all meetings and other corporate actions of the share­holders and the Board of Directors (and any committee thereof) of the Company.

5.  The Disclosure Statement contains a list of the officers, directors and shareholders of the Company and copies of the articles of incorporation and by-laws currently in effect of the Company.

6.  The execution and delivery of this Agreement does not, and the consummation of the transaction contemplated hereby will not, subject to the approval and adoption by the Shareholders of the Company, violate any provision of the certificate/articles of incorporation or bylaws of the Company, or any provisions thereof, or result in the acceleration of any obligation under, any mortgage, lien, lease, agreement, instrument, court order, arbitration award, judgment or decree to which the Company is a party, or by which it is bound, and will not violate any other restriction of any kind or character to which it is subject.

7.  Except as disclosed in writing, the Company has no options or warrants to purchase common stock currently outstanding.

  

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2.02           Financial Statements.

(a)           The Company was recently formed and has not prepared or obtained audited financial statements.  If such were prepared as of April 30, 2013, it would reflect a zero-zero balance sheet in all material respects.

(b)           The Company currently has no accounts receivable.

(c)           The Company has good and marketable title to all of its assets, business and properties, if any.

2.03           Liabilities.  To the best of the knowledge of management, there are no material liabilities of the Company, whether accrued, absolute, contingent or otherwise, which arose or relate to any transaction of the Company.

2.04           Taxes.  All federal, foreign, county and local income, ad valorem, excise, profits, franchise, occupation, property, sales, use gross receipts and other taxes (including any interest or penalties relating thereto) and assessments which are due and payable, if any, have been duly reported, fully paid and discharged as reported by the Company, and there are no unpaid taxes which are, or could become a lien on the properties and assets of the Company.

2.05           Accuracy of All Statements Made by Company.  No representation or warranty by the Company and Shareholders in this Agreement, nor any statement, certificate, schedule or exhibit hereto furnished or to be furnished by or on behalf of the Shareholders pursuant to this Agreement, nor any document or certificate delivered to Purchaser pursuant to this Agreement or in connection with actions contemplated hereby, contains or shall contain any untrue statement of material fact or omits or shall omit a material fact necessary to make the statement contained therein not misleading.

ARTICLE III

Representations and Warranties of Purchaser

Purchaser represents and warrants as follows:

3.01           Organization and Authority.

1.  The Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada, with full power and authority to enter into and perform the transactions contemplated by this Agreement, and with all requisite corporate power and authority to own, operate and lease its properties and to carry on its business as now being conducted, is duly qualified and in good standing in every jurisdic­tion in which the property owned, leased or operated by it, or the nature of the business conducted by it, makes such qualification necessary to avoid material liabil­ity or material interference in its business opera­tions, and is not subject to any agreement, commitment or understanding which restricts or may restrict the conduct of its business in any jurisdiction or loca­tion.

  

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2.  The outstanding shares of the Purchaser are legally and validly issued, fully paid and non-assessable.

3.  The Purchaser does not own five percent (5%) or more of the outstanding stock of any corporation, except as listed on the Disclosure Statement.

4.  The minute book of the Purchaser  made available to the Company and Shareholders contains complete and accurate records of all meetings and other corporate actions of the share­holders and the Board of Directors (and any committee thereof) of the Purchaser.

5.  The Disclosure Statement contains a list of the officers, directors and shareholders of the Purchaser and copies of the articles of incorporation and by-laws currently in effect of the Purchaser.

6.  The execution and delivery of this Agreement does not, and the consummation of the transaction contemplated hereby will not violate any provision of the certificate/articles of incorporation or bylaws of the Purchaser, or any provisions thereof, or result in the acceleration of any obligation under, any mortgage, lien, lease, agreement, instrument, court order, arbitration award, judgment or decree to which the Purchaser is a party, or by which it is bound, and will not violate any other restriction of any kind or character to which it is subject.

7.  Purchaser represents that at the time of closing it has taken all necessary steps to comply with all applicable state and federal securities laws and regulations and that, to the knowledge of the Purchaser, at the time of closing, there is no litigation, arbitration, governmental or other proceeding (formal or informal), claim or investigation pending or threatened, with respect to the Purchasers compliance with any and all applicable securities laws and regulations.

3.02           Performance of This Agreement.  The execution and performance of this Agreement and the issuance of stock contem­plated hereby has been authorized by the Board of Directors of Purchaser.

3.03           Financial Statements.

(a)           True copies of the audited financial statements of the Purchaser as of December 31, 2012 are publicly available on the EDGAR website of the Securities and Exchange Commission.  Other interim financial statements are also publicly available.  These statements have been examined and certified by certified public accountants.  Said financial statements are true and correct in all material respects and present an accurate and complete disclosure of the financial condition and earnings of the Purchaser for the periods covered, in accordance with generally accepted accounting principles applied on a consistent basis.

(b)           All accounts receivable, if any, (net of reserves for doubtful accounts) of the Purchaser shown on financial statement, and as incurred in the normal course of business since that date, are collectible in the normal course of business.

  

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(c)           The Purchaser has good and marketable title to all of its assets, business and properties including, without limitation, all such properties reflected in the aforementioned balance sheet, except as disposed of in the normal course of business, free and clear of any mortgage, lien, pledge, charge, claim or encumbrance, except as shown on said balance sheet, and, in the case of real properties, except for rights-of-way and easements which do not adversely affect the use of such property.

3.04           Changes Since Date of Financial Statements.  Since the date of the financial statements, except as disclosed in writing, there has not been any material change in the financial position or assets of the Purchaser.

3.05           Accuracy of All Statements Made by Purchaser.  No representation or warranty by the Purchaser in this Agreement, nor any statement, certificate, schedule or exhibit hereto furnished or to be furnished by the Purchaser pursuant to this Agreement, nor any document or certificate delivered to the Company or the Shareholders pursuant to this Agreement or in connection with actions contemplated hereby, contains or shall contain any untrue statement of material fact or omits or shall omit a material fact necessary to make the statement contained therein not misleading.

3.06           Legality of Shares to be Issued.  The shares of common stock of Purchaser to be delivered pursuant to this Agreement, when so delivered, will have been duly and validly authorized and issued by Purchaser and will be fully paid and non-assessable.

3.07           No Covenant as to Tax Consequences.  It is expressly understood and agreed that neither Purchaser nor its officers or agents has made any warranty or agreement, expressed or implied, as to the tax consequences of the transactions contemplated by this Agreement or the tax consequences of any action pursuant to or growing out of this Agreement.

ARTICLE IV

Covenants of Shareholders

4.01           Access to Information.  Purchaser and its authorized representatives shall have full access during normal business hours to all properties, books, records, contracts and documents of the Company, and the Company shall furnish or cause to be furnished to Purchaser and its authorized representative all information with respect to its affairs and business of the Company as Purchaser may reasonably request.

4.02           Actions Prior to Closing.  From and after the date of this Agreement and until the closing date, the Company shall not materially alter its business.

ARTICLE V

Conditions Precedent to Purchaser's Obligations

Each and every obligation of Purchaser to be performed on the closing date shall be subject to the satisfaction of the Purchaser of the following conditions:

  

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5.01           Truth of Representations and Warranties.  The represen­tations and warranties made by the Company and Shareholders in this Agreement or given on its behalf hereunder shall be substantially accurate in all material respects on and as of the closing date with the same effect as though such representations and warranties had been made or given on and as of the closing date.

5.02           Compliance with Covenants.  Shareholders shall have performed and complied with all obligations under this Agreement which are to be performed or complied with by them prior to or on the closing date, including the delivery of the closing documents specified hereafter.

5.03           Absence of Suit.  No action, suit or proceedings before any court or any governmental or regulatory authority shall have been commenced or threatened and, no investigation by any governmental or regulatory authority shall have been commenced, against the Shareholders, the Company or any of the affiliates, associates, officers or directors of any of them, seeking to restrain, prevent or change the transactions contemplated hereby, or questioning the validity or legality of any such transactions, or seeking damages in connection with any of such transactions.

5.04           Receipt of Approvals, Etc.  All approvals, consents and/or waivers that are necessary to effect the transactions contemplated hereby shall have been received.

5.05           No Material Adverse Change.  As of the closing date there shall not have occurred any material adverse change which materially impairs the ability of the Company to conduct its business or the earning power thereof on the same basis as in the past.

5.06           Accuracy of Financial Statement.  Purchaser and its representatives shall be satisfied as to the accuracy of all balance sheets, statements of income and other financial statements of the Company furnished to Purchaser herewith.

5.07           Proceedings and Instruments Satisfactory; Certificates.  All proceedings, corporate or otherwise, to be taken in connec­tion with the transactions contemplated by this Agreement shall have occurred and all appropriate documents incident thereto as Purchaser may request shall have been delivered to Purchaser.  The Company and the Shareholders shall have delivered certi­ficates in such detail as Purchaser may request as to compliance with the conditions set forth in this Article 5.

  

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ARTICLE VI

Conditions Precedent to Obligations

of the Company and Shareholders

Each and every obligation of the Company and shareholders to be performed on the closing date shall be subject to the satisfaction prior thereto of the following conditions:

6.01           Truth of Representations and Warranties.  The represen­tations and warranties of Purchaser contained in this Agreement shall be true at and as of the closing date as though such representations and warranties were made at and as of the transfer date.

6.02           Purchaser's Compliance with Covenants.  Purchaser shall have performed and complied with its obligations under this Agreement which are to be performed or complied with by it prior to or on the closing date.

6.03           Absence of Suit.  No action, suit or proceedings before any court or any governmental or regulatory authority shall have been commenced or threatened and, no investigation by any governmental or regulatory authority shall have been commenced against Purchaser, or any of the affiliates, associates, officers or directors of the Purchaser seeking to restrain, prevent or change the transactions contemplated hereby, or questioning the validity or legality of any such transactions, or seeking damages in connection with any of such transactions.

6.04           Receipt of Approvals, Etc.  All approvals, consents and/or waivers that are necessary to effect the transactions contemplated hereby shall have been received.

6.05           No Material Adverse Change.  As of the closing date there shall not have occurred any material adverse change which materially impairs the ability of the Purchaser to conduct its business or the earning power thereof on the same basis as in the past.

6.06           Accuracy of Financial Statements.  The Company and the Shareholders shall be satisfied as to the accuracy of all balance sheets, statements of income and other financial statements of the Purchaser furnished to the Company herewith.

6.07           Proceedings and Instruments Satisfactory; Certificates.  All proceedings, corporate or otherwise, to be taken in connec­tion with the transactions contemplated by this Agreement shall have occurred and all appropriate documents incident thereto as the Company may request shall have been delivered to the Company.  The Purchaser shall have delivered certi­ficates in such detail as the Shareholders may request as to compliance with the conditions set forth in this Article 6.

  

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ARTICLE VII

Indemnification

The Shareholders and the Company shall indemnify Purchaser for any loss, cost, expense or other damage suffered by Purchaser resulting from, arising out of, or incurred with respect to the falsity or the breach of any representation, warranty or covenant made by the Company herein. Purchaser shall indemnify and hold the Shareholders harmless from and against any loss, cost, expense or other damage (including, without limitation, attorneys' fees and expenses) resulting from, arising out of, or incurred with respect to, or alleged to result from, arise out of or have been incurred with respect to, the falsity or the breach of any representation, covenant, warranty or agreement made by Purchaser herein.

ARTICLE VIII

Security Act Provisions

8.01           Restrictions on Disposition of Shares.  Shareholders covenant and warrant that the shares received are acquired for their own accounts and not with the present view towards the distribution thereof and will not dispose of such shares except (i) pursuant to an effective registration statement under the Securities Act of 1933, as amended, or (ii) in any other transac­tion which, in the opinion of counsel, acceptable to Purchaser, is exempt from registration under the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission thereunder.  In order to effectuate the covenants of this sub-section, an appropriate endorsement will be placed upon each of the certificates of common stock of the Purchaser at the time of distribution of such shares pursuant to this Agreement, and stop transfer instruc­tions shall be placed with the transfer agent for the securities.

8.02           Notice of Limitation Upon Disposition.  Each Share­holder is aware that the shares distributed pursuant to this Agreement will not have been registered pursuant to the Securities Act of 1933, as amended; and, therefore, under current interpretations and applicable rules, the shareholder will probably have to retain such shares for a period of at least six months and at the expiration of such period sales may be confined to brokerage transactions of limited amounts requiring certain notification filings with the Securities and Exchange Commission and such disposition may be available only if the Purchaser is current in its filings with the Securities and Exchange Commission under the Securities Act of 1933, as amended, or other public disclosure requirements, and the other limitations imposed thereby on the disposition of shares of the Purchaser.  Additionally, “affiliates” owning shares will be subject to additional restrictions limiting sales.

8.03            No Public Market for Common Shares.  Each Shareholder acknowledges that the common shares being issued pursuant to this agreement currently has a very limited public market in which the shares may be liquidated and there is no assurance that such pubic market will grow or develop.

  

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ARTICLE IX

Closing

9.01           Time.  The closing of this transaction ("closing") shall be effective May 23, 2013.  Such date is referred to in this agreement as the "closing date."

9.02           Documents To Be Delivered by Shareholders.  At the closing Shareholders shall deliver to Purchaser the following documents:

(a) Certificates or assignments for all shares of stock of the Company in the manner and form required by sub-section 1.01 hereof.

 

(b) A certificate signed by the President of the Company that the representations and warranties made by the Company in this Agreement are true and correct on and as of the closing date with the same effect as though such representations and warranties had been made on or given on and as of the closing date and that Share­holders have performed and complied with all of their obligations under this Agreement which are to be performed or complied with by or prior to or on the closing date.

(c) A copy of the by-laws of the Company certified by its secretary and a copy of the certificate of incorpo­ration of the Company.

(d) Certificates or letters from Shareholders evidenc­ing the taking of the shares in accordance with the provisions of this agreement and their understanding of the restrictions thereunder.

(e) Such other documents of transfer, certificates of authority and other documents as Purchaser may reason­ably request.

(f)                  A certified copy of the duly adopted resolutions of the board of directors of the Company authorizing or ratifying the execution and performance of this Agreement and authorizing or ratifying the acts of its officers and employees in carrying out the terms and provisions thereof.

9.03           Documents To Be Delivered by Purchaser.  At the closing Purchaser shall deliver to Shareholders the following documents:

(a)                 Certificates for the number of shares of common stock of Purchaser as determined in Article 1 hereof.

(b)                 A certified copy of the duly adopted resolutions of the board of directors of Purchaser authorizing or ratifying the execution and performance of this Agreement and authorizing or ratifying the acts of its officers and employees in carrying out the terms and provisions thereof.

  

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(c)                 A certificate signed by the President of the Purchaser that the representations and warranties made by the Purchaser in  this Agreement are true and correct on and as of the closing date with the same effect as though such representations and warranties had been made on or given on and as of the closing date and that the  ­Purchaser has performed and complied with all of their obligations under this Agreement which are to be performed or complied with by or prior to or on the closing date.

(d)                 If applicable, documents for the appointment of new management and the resignation of current management.

ARTICLE X

Termination and Abandonment

This Agreement may be terminated and the transaction provided for by this Agreement may be abandoned without liability on the part of any part to any other, at any time before the closing date, or on a post closing basis as provided previously herein:

(a) By mutual consent of Purchaser and the Shareholders;

(b) By Purchaser if any of the conditions provided for in Article 5 of this Agreement have not been met and have not been waived in writing by Purchaser.

(c) By the Company if any of the conditions provided for in Article 6 of this Agreement have not been met and have not been waived in writing by the Company.

In the event of termination and abandonment by any party as above provided in this Article, written notice shall forthwith be given to the other party, and each party shall pay its own expenses incident to preparation for the consummation of this Agreement and the transactions contemplated hereunder.

ARTICLE XI

Miscellaneous

11.01.            Notices.  All notices, requests, demands and other communi­cations hereunder shall be deemed to have been duly given, if delivered by hand or mailed, certified or registered mail with postage prepaid:

(a)           If to the Company or the Shareholders, to Client Mishleau, TransGlobal Gold Corporation, 306 Meadow Lane, Wrightstown, Wisconsin 54180, or to such other person and place as the Company shall furnish to Purchaser in writing; or

(b)           If to Purchaser, to Jeff Hanks, c/o 1046 East University, Mesa, AZ 85203, or to such other person and place as Purchaser shall furnish to Company in writing.

  

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11.02.           Announcements.  Announcements concerning the transactions provided for in this Agreement by either the Company or Purchaser shall be subject to the approval of the other in all essential respects, except that the approval of the Company shall not be required as to any statements and other information which Purchaser may submit to its shareholders.

11.03.           Default.  Should any party to this Agreement default in any of the covenants, conditions, or promises contained herein, the defaulting party shall pay all costs and expenses, including a reasonable attorney's fee, which may arise or accrue from enforcing this Agreement, or in pursuing any remedy provided hereunder or by the statutes of the State of Nevada, United States of America.

11.04.           Assignment.  This Agreement may not be assigned in whole or in part by the parties hereto without the prior written consent of the other party or parties, which consent shall not be unreasonably withheld.

11.05.           Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their successors and assigns.

11.06           Holidays.  If any obligation or act required to be performed hereunder shall fall due on a Saturday, Sunday or other day which is a legal holiday established by the State of Nevada, such obligation or act may be performed on the next succeeding business day with the same effect as if it had been performed upon the day appointed.

11.07           Computation of Time.  The time in which any obligation or act provided by this Agreement is to be performed is computed by excluding the first day and including the last, unless the last day is a holiday, in which event such day shall also be excluded.

11.08           Governing Law and Venue.  This Agreement shall be governed by and interpreted pursuant to the laws of the Sate of Nevada.  Any action to enforce the provisions of this Agreement shall be brought in a court of competent jurisdiction within that state and in no other place.

11.09           Partial Invalidity.  If any term, covenant, condition or provision of this Agreement or the application thereof to any person or circumstance shall to any extent be invalid or unenforceable, the remainder of this Agreement or application of such term or provision to persons or circumstances other than those as to which it is held to be invalid or unenforceable shall not be affected thereby and each term, covenant, condition or provision of this Agreement shall be valid and shall be enforceable to the fullest extent permitted by law.

11.10           No Other Agreements.  This Agreement constitutes the entire Agreement between the parties and there are and will be no oral representations which will be binding upon any of the parties hereto.

11.11            Waiver.  No delay or failure in the exercise of any power or right shall operate as a waiver thereof or as an acquiescence in default.  No single or partial exercise of any power or right hereunder shall preclude any other or further exercise thereof or the exercise of any other power or right.

  

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11.12           Survival of Covenants, Etc.  All covenants, representations, and warranties made herein to any parties or in any statement or document delivered to any party hereto, shall survive the making of this Agreement and shall remain in full force and effect until the obligations of such party hereunder have been fully satisfied.

11.13           Further Action.  The parties hereto agree to execute and deliver such additional documents and to take such other and further action as may be required to carry out fully the transac­tion(s) contemplated herein.

11.14           Amendment.  This Agreement or any provision hereof may not be changed, waived, terminated or discharged except by means of a written supplemental instrument signed by the party or parties against whom enforcement of the change, waiver, termination, or discharge is sought.

11.15           Headings.  The descriptive headings of the various Sections or parts of this Agreement are for convenience only and shall not affect the meaning or construction of any of the provisions hereof.

11.16           Counterparts.  This agreement may be executed in two or more partially or fully executed counterparts, each of which shall be deemed an original and shall bind the signatory, but all of which together shall constitute but one and the same instrument.

  

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IN WITNESS WHEREOF, the parties hereto executed the fore­going Acquisition Agreement as of the day and year first above written.

 

 

	 PURCHASER	 	 ENSURGE, INC.
	 	 	 
	 	 	 
	 	 By:	 /s/ Jeff Hanks 
	 	 	 Jeff A. Hanks, President
	 	 	 
	 	 	 
	 	 	 TRANSGLOBAL GOLD CORPORATION.
	 	 	 
	 COMPANY:	 By:	 /s/ Clint Mishleau
	 	 	 Clint Mishleau, President

 

 

SHAREHOLDERS:

__________________________________

__________________________________

13AMENDMENT NO. 2, dated as of June 13, 2013 (this “Amendment”), between REGIS CORPORATION, a Minnesota corporation (the “Company”), and WELLS FARGO BANK, N.A., as Rights Agent (the “Rights Agent”), to the RIGHTS AGREEMENT, dated as of December 26, 2006 between the Company and the Rights Agent, as amended by Amendment No. 1 dated as of October 29, 2008 between the Company and the Rights Agent (the “Rights Agreement”).

 

WHEREAS, pursuant to and in accordance with Section 26 of the Rights Agreement, any amendment or supplement to the Rights Agreement duly approved by the Company shall become effective immediately upon execution by the Company, whether or not also executed by the Rights Agent.

 

NOW, THEREFORE, pursuant to the terms of the Rights Agreement and in accordance with Section 26 thereof, the following actions are hereby taken:

 

Section 1. Amendments to Rights Agreement. The Rights Agreement is hereby amended as follows:

 

(A) The definition of “Acquiring Person” in Section 1 of the Rights Agreement is hereby amended and restated in its entirety to read as follows:

 

“ “Acquiring Person” shall mean any Person who or which, alone or together with all Affiliates and Associates of such Person, shall be the Beneficial Owner of more than 15% of the Common Shares then outstanding, but shall not include (a) any Exempt Person, (b) any such Person that the Board of Directors of the Company determines has become and is the Beneficial Owner of more than 15% (or, in the case of a Person that is not deemed to be an Acquiring Person as a result of the application of clause (c) of this paragraph, 20% or more) of the Common Shares at the time outstanding solely as the result of (i) a change in the aggregate number of Common Shares outstanding since the last date on which such Person acquired Beneficial Ownership of any Common Shares (provided, however, that if a Person becomes the Beneficial Owner of more than 15% (or, in the case of a Person that is not deemed to be an Acquiring Person as a result of the application of clause (c) of this paragraph, 20% or more) of the Common Shares then outstanding by reason of such change in the aggregate number of Common Shares outstanding and thereafter becomes the Beneficial Owner of any additional Common Shares (other than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Shares or pursuant to a split or subdivision of the outstanding Common Shares), then such Person shall be deemed to be an “Acquiring Person” unless upon becoming the Beneficial Owner of such additional Common Shares such Person does not beneficially own more than 15% (or, in the case of a Person that is not deemed to be an Acquiring Person as a result of the application of clause (c) of this paragraph, 20% or more) of the Common Shares then outstanding), (ii) the acquisition by such Person or one or more of its Affiliates or Associates of Beneficial Ownership of additional Common Shares if such acquisition was made in the good faith belief that such acquisition would not (A) cause the Beneficial Ownership by such Person, together with its Affiliates and Associates, to exceed 15% (or, in the case of a Person that is not deemed to be an Acquiring Person as a result of the application of clause (c) of this paragraph, to be 20% or more) of the Common Shares 

 

 

outstanding at the time of such acquisition and such good faith belief was based on the good faith reliance on information contained in publicly filed reports or documents of the Company that are inaccurate or out-of-date or (B) otherwise cause a Distribution Date or the adjustment provided for in Section 11(a) to occur, (iii) the acquisition by such Person or one or more of its Affiliates or Associates of Beneficial Ownership of additional Common Shares if the Board of Directors of the Company determines (which determination of the Board of Directors of the Company shall be conclusive and binding on such Person, the Rights Agent, the holders of the Rights and all other Persons) that such acquisition was made in good faith without the knowledge by such Person or one or more of its Affiliates or Associates that such Person would thereby become an Acquiring Person, or (iv) the issuance directly by the Company, at the direction of the Board of Directors of the Company, of Common Shares (or stock options, restricted stock units or other equity grants with respect to Common Shares) to a director on the Board of Directors of the Company pursuant to a periodic equity grant that is made to all directors of the Board of Directors of the Company (provided, however, that if a Person becomes the Beneficial Owner of more than 15% (or, in the case of a Person that is not deemed to be an Acquiring Person as a result of the application of clause (c) of this paragraph, 20% or more) of the Common Shares then outstanding by reason of such issuance directly by the Company and thereafter becomes the Beneficial Owner of any additional Common Shares (other than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Shares or pursuant to a split or subdivision of the outstanding Common Shares), then such Person shall be deemed to be an “Acquiring Person” unless upon becoming the Beneficial Owner of such additional Common Shares such Person does not beneficially own more than 15% (or, in the case of a Person that is not deemed to be an Acquiring Person as a result of the application of clause (c) of this paragraph, 20% or more) of the Common Shares then outstanding) or (c) any such Person (i) who is the Beneficial Owner of less than 20% of the Common Shares then outstanding, and who reports, or is required to report such Beneficial Ownership on Schedule 13G (or any comparable or successor report) under the Exchange Act or on Schedule 13D under the Exchange Act (or any comparable or successor report), which Schedule 13D does not state any intention to control or influence the management or policies of the Company (other than through a representative of such Person who is a duly elected director on the Board of Directors of the Company) or engage in any of the actions specified in Item 4 of such schedule (other than the disposition of the Common Shares or the acquisition of Common Shares up to Beneficial Ownership of less than 20% of the Common Shares then outstanding), and (ii) who signs a letter agreement in a form acceptable to the Board of Directors of the Company providing that such Person agrees to vote any shares that such Person beneficially owns in excess of 15% of the Common Shares then outstanding in the same manner as and in the same proportion to the votes cast by the holders of Common Shares (other than shares beneficially owned by such Person in excess of 15% of the Common Shares then outstanding) on all matters on which a vote, consent or approval of the holders of Common Shares is sought; provided, however, that if either (A) such Person referred to in this clause (c) becomes the Beneficial Owner of additional Common Shares such that such person is the Beneficial Owner of 20% or more of the shares of Common Shares then outstanding, or (B) such Person is the Beneficial Owner of 15% or more but less than 20% of the Common Shares then outstanding and reports or is required to report such ownership of Common Shares on Schedule 13D under the Exchange Act (or any comparable or successor report) which Schedule 13D reports the intention to control or influence the management or policies of the Company (other than through a representative of such Person who is a duly 

 

 

elected director on the Board of Directors of the Company) or engage in any of the actions specified in Item 4 of such schedule (other than the disposition of the Common Shares or the acquisition of Common Shares up to Beneficial Ownership of less than 20% of the Common Shares then outstanding), then such Person shall become an Acquiring Person immediately.  Notwithstanding clause (b)(ii) or (b)(iii) of the prior sentence, if any Person that is not an Acquiring Person due to such clause (b)(ii) or (b)(iii) does not reduce its percentage of Beneficial Ownership of Common Shares to 15% or less (or, in the case of a Person that is not deemed to be an Acquiring Person as a result of the application of clause (c) of this paragraph, less than 20%) by the Close of Business on the tenth calendar day after notice from the Company (the date of notice being the first day) that such Person’s Beneficial Ownership of Common Shares would make it an Acquiring Person (or, in the case solely of Derivative Common Shares, such Person does not terminate the subject derivative transaction or transactions or does not dispose of the subject derivative security or securities, or does not establish to the satisfaction of the Board of Directors of the Company that such Derivative Common Shares are not held with any intention of changing or influencing control of the Company), such Person shall, at the end of such ten calendar day period, become an Acquiring Person (and such clause (b)(ii) or (b)(iii) shall no longer apply to such Person). For purposes of this definition, the determination whether any Person acted in “good faith” shall be conclusively determined by the Board of Directors of the Company.”.

 

Section 2. Amendment of Summary of Rights.  The second paragraph of the Summary of Rights, attached as Exhibit C to the Rights Agreement, is amended and restated in its entirety to read as set forth on Annex I hereto.

 

Section 3. Full Force and Effect. Except as expressly amended hereby, the Rights Agreement shall continue in full force and effect in accordance with the provisions thereof.

 

Section 4. Governing Law. The Rights Agreement and this Amendment shall be governed by and construed in accordance with the law of the State of Minnesota applicable to contracts to be made and performed entirely within such State, and without regard to conflicts of law principles of such State.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and year first above written.

 

	
 
    	
REGIS   CORPORATION
    
	
 
    	
by
    	
/s/   Eric A. Bakken
    
	
 
    	
 
    	
Name:   Eric A. Bakken
    
	
 
    	
 
    	
Title:   Executive Vice President & General Counsel 
    
	
 
    	
 
    	
 
    
	
 
    	
WELLS   FARGO BANK, N.A.
    
	
 
    	
by
    	
/s/   Steven J. Hoffman
    
	
 
    	
 
    	
Name:   Steven J. Hoffman
    
	
 
    	
 
    	
Title:   Assistant Vice President
    

 

 

ANNEX I

 

“Until the earlier of (i) such time as the Company learns that a person or group (including any affiliate or associate of such person or group) has acquired, or obtained the right to acquire, beneficial ownership of more than 15% (or, in the case of certain institutional and other investors, 20% or more) of the outstanding Common Shares (such person or group being called an “Acquiring Person”), and (ii) such date, if any, as may be designated by the Board of Directors of the Company following the commencement of, or first public disclosure of an intention to commence, a tender or exchange offer for outstanding Common Shares which could result in such person or group becoming the beneficial owner of more than 15% of the outstanding Common Shares, (the earlier of such dates being called the “Distribution Date”), the Rights will be evidenced by certificates for Common Shares registered in the names of the holders thereof (which certificates for Common Shares shall also be deemed to be Right Certificates (as defined below) and not by separate Right Certificates. With respect to any certificate for Common Shares outstanding as of the Record Date, until the Distribution Date, the Rights associated with the Common Shares represented by such certificates shall be evidenced by such certificates along with a copy of this Summary of Rights, and the surrender for transfer of any such certificate shall also constitute the transfer of the Rights associated with the Common Shares represented thereby.  Therefore, until the Distribution Date, the Rights will be transferred with and only with the Common Shares.”

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