Document:

RGS -2014.3.31-EX10(a)(*)

Exhibit No. 10(a)(*)

TRANSITION AND SEPARATION AGREEMENT

	
				
	TO:
	Norma Knudsen
	 
	 

	 
	 
	 
	 

	FROM:
	Regis Corporation
	 
	VIA EXPRESS COURIER

	 
	 
	 
	 

	DATE:
	January 9, 2014
	 
	 

Please read this Agreement and its Exhibits carefully.  You are giving up certain legal claims that you might have against Regis Corporation and other entities and persons by signing this Agreement and the First Release.  You are advised to consult an attorney before signing this Agreement and the First Release.

This Transition and Separation Agreement (“Agreement”) is between Norma Knudsen (“you” or “your” or “Employee”) and Regis Corporation, a Minnesota corporation (together with Regis Corporation, Regis Corp., Regis, Inc., and any and all of their respective subsidiaries, affiliates, predecessors, successors and/or assigns, “Regis” or “Corporation”).  This Agreement sets out the terms of your separation from Regis.  Under this Agreement, Regis will provide you with certain benefits as set forth in this Agreement.  Such benefits will be provided in exchange for your Agreement to the terms set forth below and in the Exhibits to this Agreement, including, but not limited to, waiving and releasing certain legal claims you may have against Regis. Except as modified by this Agreement, this Agreement incorporates all terms of the Amended and Restated Employment Agreement made by and between Regis and you dated August 31, 2012 (the “Employment Agreement”) and any capitalized term used in this Agreement and not defined in this Agreement has the meaning ascribed to such term in the Employment Agreement.

TERMS OF AGREEMENT

		
	1.
	Employment During The Transition Period.  Subject to the terms and conditions of this Agreement, Regis agrees to continue your employment with Regis, and you hereby accept such continued employment by Regis, for the period (the “Transition Period”) commencing on the date you sign this Agreement and Exhibit A to this Agreement (the “First Release”) (the “Effective Date”) and continuing until the earlier of (a) February 28, 2014 (the “Anticipated Separation Date”), or (b) the date on which your employment is earlier terminated under Section 5 of the Employment Agreement; provided, however, that Regis agrees that it will not terminate your employment without Cause before February 28, 2014.  The effective date of the termination of your employment with Regis for any reason is referred to herein as the “Separation Date.”  

		
	2.
	Duties.  While employed by Regis during the Transition Period, you shall perform such duties as may be reasonably assigned to you by Regis.  Regis anticipates that your duties as of the Effective Date will remain consistent with the duties identified in Section 2 of the Employment Agreement through January 31, 2014.  From February 1, 2014 through February 28, 2014, you shall be available to perform such duties as may be requested by the Corporation’s Chief Executive Officer and the Board may request from time to time but will not be expected to maintain regular office hours.  You specifically acknowledge that agree that any changes to your duties or responsibilities during the Transition Period will not give you ground to resign for Good Reason before the Anticipated Separation Date.  At all times during the Transition Period you shall follow all applicable policies and procedures previously adopted by Regis or adopted by Regis during the Transition Period, including without limitation policies related to business ethics, conflict of interest, confidentiality and protection of trade secrets, and shall not engage in any activity during the Transition Period that is detrimental or is reasonably likely to be detrimental to the Corporation’s best interests.

		
	3.
	Compensation, Benefits and Expense Reimbursements.  All provisions of Section 4 of the Employment Agreement shall remain in effect during the Transition Period.

		
	4.
	First Release.  At the same time you sign this Agreement, you shall also sign the First Release.

		
	5.
	Separation Compensation.  

		
	a.
	Whether or not you sign this Agreement and the First Release, Regis will pay you all wages you have earned through and including the Separation Date, all compensation accrued as of the Separation Date under each plan or program of the Corporation in which you may be participating as of the Separation Date in accordance with the terms of such plan or program, and your accrued but unused PTO benefit.  

		
	b.
	Subject to the conditions in Section 5.c. below, if (and only if) your employment with Regis terminates (i) on the Anticipated Separation Date, (ii) prior to the Anticipated Separation Date because you resign for Good Reason, or (iii) prior to the Anticipated Separation Date because Regis terminates your employment without Cause (which Regis acknowledges would be a breach of this Agreement), then Regis shall provide you with the following payments and benefits (collectively, the “Separation Benefits”): (A) the Severance Payment and benefits continuation identified in Sections 6(b)(iii) and (iv) of the Employment Agreement, (B) outplacement services provided by an outplacement vendor selected by the Corporation in its discretion, payable directly to the outplacement vendor selected by the Corporation, provided any such outplacement services will not exceed $10,000.00 and will expire no later than August 31, 2014; and (C) eligibility to receive an additional discretionary payment of up to $100,000.00, less applicable withholdings, which amount (if any) will be determined by the Corporation in its sole discretion on or about February 28, 2015 and, if the Corporation decides that any such payment will be made, payable to you in a lump sum on the Corporation’s first regular payroll date after February 28, 2015 (the “Additional Discretionary Payment”).

		
	c.
	Your receipt of the Separation Benefits is subject to your satisfaction of the following conditions: (i) you have signed and not rescinded the First Release within the applicable periods specified in the First Release; (ii) on or within 21 days after the Separation Date, you have signed a second release in the form attached to this Agreement as Exhibit B (the “Second Release”) (which the Corporation shall provide to you no later than the Termination Date); (iii) you have not rescinded the Second Release within the rescission period set forth in the Second Release; and (iv) you are in strict compliance with all of your obligations under this Agreement and the Employment Agreement (including but not limited to, with respect to the Additional Discretionary Payment that may be payable in March 2015, your compliance with Sections 7, 9 and 11 of this Agreement). 

		
	6.
	Interpretation of Releases.  This Agreement will not be interpreted or construed to limit the First Release or the Second Release in any manner.  The existence of any dispute respecting the interpretation of this Agreement or the alleged breach of this Agreement will not nullify or otherwise affect the validity or enforceability of the First Release or the Second Release.

		
	7.
	Cooperation.  At the Corporation’s reasonable request and upon reasonable notice, you will, from your Separation Date through February 28, 2015 and without further consideration, timely execute and deliver such acknowledgements, instruments, certificates, and other ministerial documents as may be necessary or appropriate to formalize and complete the applicable corporate records and be reasonably available to discuss and consult with Regis regarding business matters that you were directly involved with while employed by Regis or such other matters as Regis may want to discuss with you for up to a total of twenty (20) hours.

		
	8.
	References.  You agree that you will refer any and all reference checks regarding your employment with Regis to Jen Vick at 952-947-7385.  For all reference checks that are referred to such person, references will be limited to confirmation of your dates of employment and last position held.

		
	9.
	Confidentiality and Non-Disparagement.  To the fullest extent permitted by law, you will not, directly or indirectly, disclose the terms of this Agreement or the Exhibits to anyone other than your attorney, spouse, or significant other, or except as required for accounting, tax, or other legally-mandated or legally-permitted purposes, provided that, unless there is a legal reason for the disclosure, any such person to whom disclosure is made shall, prior to disclosure, specifically agree to keep this Agreement and the Exhibits confidential.  To the fullest extent permitted by law, you also agree not to make or endorse any disparaging or negative remarks or statements (whether oral, written, or otherwise) concerning Regis or its predecessors, successors, and/or assigns, as well as past and present officers, directors, agents, and/or employees.

		
	10.
	Acknowledgement of Obligations under the Employment Agreement.  You acknowledge your obligations under the Employment Agreement, including without limitation the obligations identified in Sections 8 and 9 of the Employment Agreement, and hereby reaffirm your agreement to comply with those obligations.    

		
	11.
	Return of Corporate Property.  Upon termination of your employment with Regis, or at any earlier time upon request from Regis, you shall deliver promptly to Regis all Regis property that is in your possession or under your control, including without limitation any computers, cellular telephones, pagers, credit cards, keys, records, files, documents, data, product samples, photographs, video tapes, audio tapes, computer disks and other computer storage media.  Notwithstanding this Section 11, you may keep documents pertaining to your compensation and/or benefits.

		
	12.
	Binding Nature of Agreement.  This Agreement is binding on the parties and their heirs, administrators, representatives, executors, successors, and assigns.

		
	13.
	Consideration and Rescission Periods. The periods described in the First Release during which you may consider whether to sign or may rescind the First Release and the procedures stated in the First Release for accepting or rescinding the First Release also apply to this Agreement.  The First Release and this Agreement must be accepted or rescinded together.  Rescission of one of these documents will be deemed a rescission of both of them. 

		
	14.
	Compliance with the Age Discrimination in Employment Act (“ADEA”) and Notice of Right to Consider and Rescind Agreement. You understand that this Agreement and the First Release have to meet certain requirements to validly release any claims you might have under the ADEA (including under the Older Workers’ Benefit Protection Act), and you represent that all such requirements have been satisfied, including that:

		
	a.
	The Agreement and the First Release are written in a manner that is understandable to you;

		
	b. 
	You are specifically waiving ADEA rights;

		
	c.
	You are not waiving ADEA rights arising after the date of your signing this Agreement and the First Release; 

		
	d. 
	You are receiving valuable consideration in exchange for execution of this Agreement and the First Release that you would not otherwise be entitled to receive;

		
	e.
	Regis is hereby, in writing, encouraging you to consult with an attorney before signing this Agreement and the First Release; and

		
	f.
	You received 21 days to consider this Agreement and the First Release and at least 7 days to rescind this Agreement and the First Release (you are actually receiving 15 days to rescind).

		
	15.
	Severability.  The provisions of this Agreement are severable.  If any provision is held to be invalid or unenforceable, it shall not affect the validity or enforceability of any other provision.  

		
	16.
	Entire Agreement.  Except to the extent that you have an arbitration agreement with Regis, this Agreement, the First Release, the Second Release and the Employment Agreement set out the entire agreement between you and Regis and supersede any and all prior oral or written agreements or understandings between you and Regis concerning your termination of employment.  This Agreement amends and modifies the Employment Agreement only to the extent the terms of this Agreement specifically amend the Employment Agreement; the Employment Agreement shall otherwise remain in full force and effect in accordance with its terms. Any arbitration agreement that you have with Regis will continue in full force and effect.

		
	17.
	Employee Representations.  You represent that you:

a.    have the right and we have encouraged you to review all aspects of this Agreement and its Exhibits with an attorney of your choice;

b.    have had the opportunity to consult with an attorney of your choice and have either done so or freely chosen not to do so; 

c.    have carefully read and fully understand all the provisions of this Agreement and its Exhibits; and

d.    are freely, knowingly, and voluntarily entering into this Agreement and the First Release.

		
	18.
	No Admission of Liability.  Regis denies any and all liability to you.  You understand and agree that this Agreement and its Exhibits are not an admission of wrongdoing or liability, including, but not limited to, any violation of any federal, state, and/or local law, statute, ordinance, contract, and/or principle of common law by Regis and/or any individuals and/or entities associated with Regis.

		
	19.
	Attorneys’ Fees.  You agree that you are responsible for your own attorneys’ fees and costs, if any, incurred in any respect, including but not limited to in connection: with your employment with Regis; with the termination of your employment with Regis; and with negotiating and executing this Agreement.

		
	20.
	Governing Law.  This Agreement shall be construed and enforced in accordance with the laws of the State of Minnesota and the laws of the United States, where applicable.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

	
							
	Dated:
	1/13/2014
	 
	 
	/s/ Norma Knudsen
	 
	 

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	Employee (print name):
	Norma Knudsen

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	REGIS CORPORATION:
	 

	 
	 
	 
	 
	 
	 
	 

	Dated:
	1/13/2014
	 
	By:
	/s/ Dan Hanrahan
	 
	 

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	Its:
	CEO
	 

	 
	 
	 
	 
	 
	 
	 

 

EXHIBITS 

TRANSITION AND SEPARATION AGREEMENT 

FIRST RELEASE BY NORMA KNUDSEN

Definitions.  I intend all words used in this First Release to have their plain meanings in ordinary English.  Specific terms that I use in this First Release have the following meanings:

A.    I, me, and my means Norma Knudsen and anyone who has or obtains any legal rights or claims through Norma Knudsen.

B.    Employer means Regis Corporation, any entity related to Regis Corporation in the present or past (including without limitation, its predecessors, parents, subsidiaries, members, affiliates, and divisions) and any successors of Regis Corporation.

		
	C.
	Company means Employer; the present and past officers, directors, members, committees, shareholders (together with any officers, partners, managers members, employees, agents and affiliates of any such shareholder), agents, and employees of Employer; any company providing insurance to Employer in the present or past; the present and past employee benefit plans sponsored or maintained by Employer (other than multiemployer plans) and the present and past fiduciaries of such plans; the attorneys for Employer; and anyone who acted on behalf of Employer or on instructions from Employer.

D.    Agreement means the Transition and Separation Agreement between Employer and me that I am executing on the same date on which I execute this First Release, including all of the documents attached to the Agreement.

E.    My Claims means all of my rights that I now have to any relief of any kind from the Company, including without limitation:

1.    all claims arising out of or relating to my employment with Employer or the termination of that employment;

2.    all claims arising out of or relating to the statements, actions, or omissions of the Company;

3.    all claims arising out of or relating to any agreements (whether express or implied) to which I and the Company are parties;

4.    all claims for any alleged unlawful discrimination, harassment, retaliation or reprisal, or other alleged unlawful practices arising under any federal, state, or local statute, ordinance, or regulation, including without limitation, claims under Title VII of the Civil Rights Act of 1964 and 1991, the Americans with Disabilities Act, the Rehabilitation Act of 1973, the Age Discrimination in Employment Act, 42 U.S.C. § 1981, the Employee Retirement Income Security Act, the Equal Pay Act, the Family Medical Leave Act, the Lilly Ledbetter Fair Pay Act of 2009, the Worker Adjustment and Retraining Notification Act, the Fair Credit Reporting Act, the Genetic Information Nondiscrimination Act, the Minnesota Human Rights Act, the Minnesota’s Whistleblower Act, the Minneapolis Civil Rights Ordinance, the Minnesota Business Corporations Act, and workers’ compensation non-interference or non-retaliation statutes;

5.    all claims for alleged wrongful discharge; breach of contract; breach of implied contract; failure to keep any promise; breach of a covenant of good faith and fair dealing; breach of fiduciary duty; estoppel; my activities, if any, as a “whistleblower”; defamation; infliction of emotional distress; fraud; misrepresentation; negligence; harassment; retaliation or reprisal; constructive discharge; assault; battery; false imprisonment; invasion of privacy; interference with contractual or business relationships; any other wrongful employment practices; and violation of any other principle of common law;

		
	6.
	all claims for compensation of any kind, including without limitation, bonuses, commissions, equity awards or equity-based compensation in any form (including without limitation restricted units, unit options and any other form of equity-based compensation), vacation pay, perquisites, and expense reimbursements;

7.    all claims for back pay, front pay, reinstatement, other equitable relief, compensatory damages, damages for alleged personal injury, liquidated damages, and punitive damages; 

8.    all claims that a past unlawful decision has or has had a continuing effect on my compensation; and

9.    all claims for attorneys’ fees, costs, and interest.

However, My Claims do not include (i) any claims that the law does not allow to be waived, (ii) any claims that may arise after the date on which I sign this First Release, (iii) any claims I have to any amounts under Employer’s 401(k) plan or other qualified employee benefit plans, (iv) any claims for unemployment benefits, or (v) any claims for breach of the Agreement.  

Agreement to Release My Claims.  I will receive consideration from Employer as set forth in the Agreement if I sign and do not rescind this First Release as provided below.  I understand and acknowledge that that consideration is in addition to anything of value that I would be entitled to receive from Employer if I did not sign this First Release or if I rescinded this First Release.  In exchange for that consideration I give up and release all of My Claims.  I will not make any demands or claims against the Company for compensation or damages relating to My Claims.  The consideration that I am receiving is a fair compromise for the release of My Claims. I understand that nothing in this Release is intended to and this Release does not (a) impose any condition, penalty, or other limitation affecting my right to challenge this Release; (b) constitute an unlawful release of any of my rights; or (c) prevent or interfere with my ability and/or right to: (1) provide truthful testimony if under subpoena to do so; (2) file any charge with or participate in any investigation or proceeding conducted by the Equal Employment Opportunity Commission or any other federal, state, and/or local governmental entity; and/or (3) respond as otherwise provided by law.

No Other Rights To Compensation.  I understand and acknowledge that, except as provided in the Agreement and subject to the terms and conditions of the Agreement, the Company is not obligated to make any payments to me of any kind and does not have any other outstanding obligations to me under any agreement or arrangement between me and the Company or under any Company plan or policy.  

Additional Agreements and Understandings.  Even though Employer will provide consideration for me to settle and release My Claims, the Company does not admit that it is responsible or legally obligated to me.  In fact, the Company denies that it is responsible or legally obligated to me for My Claims, denies that it engaged in any unlawful or improper conduct toward me, and denies that it treated me unfairly.

Confidentiality.  I understand that the terms of this First Release are confidential and that I may not disclose those terms to any person except under the limited circumstances described in the Agreement.

Advice to Consult with an Attorney.  I understand and acknowledge that I am hereby being advised by the Company to consult with an attorney prior to signing this First Release.  My decision whether to sign this First Release is my own voluntary decision made with full knowledge that the Company has advised me to consult with an attorney.

Period to Consider the Release.  I understand that I have 21 days from the day that I receive this First Release, not counting the day upon which I receive it, to consider whether I wish to sign this First Release.  If I sign this First Release before the end of the 21-day period, it will be my voluntary decision to do so because I have decided that I do not need any additional time to decide whether to sign this First Release.  I also agree that any changes made to this First Release or to the Agreement before I sign it, whether material or immaterial, will not restart the 21-day period.

My Right to Rescind this Release.  I understand that I may rescind this First Release at any time within 15 days after I sign it, not counting the day upon which I sign it.  This First Release will not become effective or enforceable unless and until the 15-day rescission period has expired without my rescinding it.

Procedure for Accepting or Rescinding the Release.  To accept the terms of this First Release, I must deliver this First Release, after I have signed and dated it, to Employer by hand or by mail within the 21-day period that I have to consider this First Release.  To rescind my acceptance, I must deliver a written, signed statement that I rescind my acceptance to Employer by hand or by mail within the 15-day revocation period.  All deliveries must be made to Employer at the following address:

Regis Corporation
Attn: Katherine M. Merrill
7201 Metro Boulevard
Minneapolis, MN 55439

If I choose to deliver my acceptance or the rescission of my acceptance by mail, it must be (1) postmarked within the period stated above; and (2) properly addressed to Employer at the address stated above.

Interpretation of the Release.  This First Release should be interpreted as broadly as possible to achieve my intention to resolve all of My Claims against the Company.  If this First Release is held by a court to be inadequate to release a particular claim encompassed within My Claims, this First Release will remain in full force and effect with respect to all the rest of My Claims.

My Representations.  I am legally able and entitled to receive the consideration being provided to me in settlement of My Claims.  I have not been involved in any personal bankruptcy or other insolvency proceedings at any time since I began my employment with Employer.  No child support orders, garnishment orders, or other orders requiring that money owed to me by Employer be paid to any other person are now in effect.

I represent and confirm that I have been fully paid for all wages, commissions, bonuses, and other compensation that I have earned through the date of this First Release.

I have read this First Release carefully.  I understand all of its terms.  In signing this First Release, I have not relied on any statements or explanations made by the Company except as specifically set forth in the Agreement.  I am voluntarily releasing My Claims against the Company.  I intend this First Release and the Agreement to be legally binding.

	
					
	Dated:
	

	

	

	

	

	

	

	

	

	

	

	

	Norma Knudsen
	

TRANSITION AND SEPARATION AGREEMENT

SECOND RELEASE BY NORMA KNUDSEN

Definitions.  I intend all words used in this Second Release to have their plain meanings in ordinary English.  Specific terms that I use in this Second Release have the following meanings:

A.    I, me, and my means Norma Knudsen and anyone who has or obtains any legal rights or claims through Norma Knudsen.

B.    Employer means Regis Corporation, any entity related to Regis Corporation in the present or past (including without limitation, its predecessors, parents, subsidiaries, members, affiliates, and divisions) and any successors of Regis Corporation.

		
	C.
	Company means Employer; the present and past officers, directors, members, committees, shareholders (together with any officers, partners, managers members, employees, agents and affiliates of any such shareholder), agents, and employees of Employer; any company providing insurance to Employer in the present or past; the present and past employee benefit plans sponsored or maintained by Employer (other than multiemployer plans) and the present and past fiduciaries of such plans; the attorneys for Employer; and anyone who acted on behalf of Employer or on instructions from Employer.

D.    Agreement means the Transition and Separation Agreement between Employer and me that I signed on ________________, including all of the documents attached to the Agreement.

E.    My Claims means all of my rights that I now have to any relief of any kind from the Company, including without limitation:

1.    all claims arising out of or relating to my employment with Employer or the termination of that employment;

2.    all claims arising out of or relating to the statements, actions, or omissions of the Company;

3.    all claims arising out of or relating to any agreements (whether express or implied) to which I and the Company are parties;

4.    all claims for any alleged unlawful discrimination, harassment, retaliation or reprisal, or other alleged unlawful practices arising under any federal, state, or local statute, ordinance, or regulation, including without limitation, claims under Title VII of the Civil Rights Act of 1964 and 1991, the Americans with Disabilities Act, the Rehabilitation Act of 1973, the Age Discrimination in Employment Act, 42 U.S.C. § 1981, the Employee Retirement Income Security Act, the Equal Pay Act, the Family Medical Leave Act, the Lilly Ledbetter Fair Pay Act of 2009, the Worker Adjustment and Retraining Notification Act, the Fair Credit Reporting Act, the Genetic Information Nondiscrimination Act, the Minnesota Human Rights Act, the Minnesota’s Whistleblower Act, the Minneapolis Civil Rights Ordinance, the Minnesota Business Corporations Act, and workers’ compensation non-interference or non-retaliation statutes;

5.    all claims for alleged wrongful discharge; breach of contract; breach of implied contract; failure to keep any promise; breach of a covenant of good faith and fair dealing; breach of fiduciary duty; estoppel; my activities, if any, as a “whistleblower”; defamation; infliction of emotional distress; fraud; misrepresentation; negligence; harassment; retaliation or reprisal; constructive discharge; assault; battery; false imprisonment; invasion of privacy; interference with contractual or business relationships; any other wrongful employment practices; and violation of any other principle of common law;

		
	6.
	all claims for compensation of any kind, including without limitation, bonuses, commissions, equity awards or equity-based compensation in any form (including without limitation restricted units, unit options and any other form of equity-based compensation), vacation pay, perquisites, and expense reimbursements;

7.    all claims for back pay, front pay, reinstatement, other equitable relief, compensatory damages, damages for alleged personal injury, liquidated damages, and punitive damages;

8.    all claims that a past unlawful decision has or has had a continuing effect on my compensation; and

9.    all claims for attorneys’ fees, costs, and interest.

However, My Claims do not include (i) any claims that the law does not allow to be waived, (ii) any claims that may arise after the date on which I sign this Second Release, (iii) any claims I have to any amounts under Employer’s 401(k) plan or other qualified employee benefit plans, (iv) any claims for unemployment benefits, or (v) any claims for breach of the Agreement.

Agreement to Release My Claims.  I will receive consideration from Employer as set forth in the Agreement if I sign and do not rescind this Second Release as provided below.  I understand and acknowledge that that consideration is in addition to anything of value that I would be entitled to receive from Employer if I did not sign this Second Release or if I rescinded this Second Release.  In exchange for that consideration I give up and release all of My Claims.  I will not make any demands or claims against the Company for compensation or damages relating to My Claims.  The consideration that I am receiving is a fair compromise for the release of My Claims.  I understand that nothing in this Release is intended to and this Release does not (a) impose any condition, penalty, or other limitation affecting my right to challenge this Release; (b) constitute an unlawful release of any of my rights; or (c) prevent or interfere with my ability and/or right to: (1) provide truthful testimony if under subpoena to do so; (2) file any charge with or participate in any investigation or proceeding conducted by the Equal Employment Opportunity Commission or any other federal, state, and/or local governmental entity; and/or (3) respond as otherwise provided by law.

No Other Rights To Compensation.  I understand and acknowledge that, except as provided in the Agreement and subject to the terms and conditions of the Agreement, the Company is not obligated to make any payments to me of any kind and does not have any other outstanding obligations to me under any agreement or arrangement between me and the Company or under any Company plan or policy.  

Additional Agreements and Understandings.  Even though Employer will provide consideration for me to settle and release My Claims, the Company does not admit that it is responsible or legally obligated 

to me.  In fact, the Company denies that it is responsible or legally obligated to me for My Claims, denies that it engaged in any unlawful or improper conduct toward me, and denies that it treated me unfairly.

Confidentiality.  I understand that the terms of this Second Release are confidential and that I may not disclose those terms to any person except under the limited circumstances described in the Agreement.

Advice to Consult with an Attorney.  I understand and acknowledge that I am hereby being advised by the Company to consult with an attorney prior to signing this Second Release and I have done so.  My decision whether to sign this Second Release is my own voluntary decision made with full knowledge that the Company has advised me to consult with an attorney.

Period to Consider the Release.  I understand that I have 21 days after the day I receive this Second Release or the last day of my employment with Employer, whichever is later, to consider whether I wish to sign this Second Release.  If I sign this Second Release before the end of the 21-day period immediately following the termination of my employment, it will be my voluntary decision to do so because I have decided that I do not need any additional time to decide whether to sign this Second Release.  I also agree that any changes made to this Second Release or to the Agreement before I sign it, whether material or immaterial, will not restart the 21-day period.

My Right to Rescind this Release.  I understand that I may rescind this Second Release at any time within 15 days after I sign it, not counting the day upon which I sign it.  This Second Release will not become effective or enforceable unless and until the 15-day rescission period has expired without my rescinding it.

Procedure for Accepting or Rescinding the Release.  To accept the terms of this Second Release, I must deliver this Second Release, after I have signed and dated it, to Employer by hand or by mail within the 21-day period that I have to consider this Second Release.  To rescind my acceptance, I must deliver a written, signed statement that I rescind my acceptance to Employer by hand or by mail within the 15-day revocation period.  All deliveries must be made to Employer at the following address:

Regis Corporation
Attn: Katherine M. Merrill
7201 Metro Boulevard
Minneapolis, MN 55439

If I choose to deliver my acceptance or the rescission of my acceptance by mail, it must be (1) postmarked within the period stated above; and (2) properly addressed to Employer at the address stated above.

Interpretation of the Release.  This Second Release should be interpreted as broadly as possible to achieve my intention to resolve all of My Claims against the Company.  If this Second Release is held by a court to be inadequate to release a particular claim encompassed within My Claims, this Second Release will remain in full force and effect with respect to all the rest of My Claims.

My Representations.  I am legally able and entitled to receive the consideration being provided to me in settlement of My Claims.  I have not been involved in any personal bankruptcy or other insolvency proceedings at any time since I began my employment with Employer.  No child support orders, garnishment orders, or other orders requiring that money owed to me by Employer be paid to any other person are now in effect.

I represent and confirm that I have been fully paid for all wages, commissions, bonuses, and other compensation that I have earned through the date of this Second Release.

I have read this Second Release carefully.  I understand all of its terms.  In signing this Second Release, I have not relied on any statements or explanations made by the Company except as specifically set forth in the Agreement.  I am voluntarily releasing My Claims against the Company.  I intend this Second Release and the Agreement to be legally binding.

	
					
	Dated:
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	Norma Knudsenex10_1x03302014

Exhibit 10.1

SUNPOWER CORPORATION
 
ANNUAL EXECUTIVE BONUS PLAN

(Amended February 8, 2010; amended March 7, 2014)
 
SECTION 1:  BACKGROUND, PURPOSE AND DURATION
 
		
	1.1
	Effective Date.  The amendment and restatement of this Plan is effective as of March 7, 2014, subject to ratification by an affirmative vote of the holders of a majority of the shares of common stock that are present in person or by proxy and entitled to vote at the 2014 Annual Meeting of Stockholders of the Company.

 
		
	1.2
	Purpose of the Plan.  The Plan is intended to increase stockholder value and the success of the Company by motivating Participants (1) to perform to the best of their abilities, and (2) to achieve the Company’s objectives. The Plan’s goals are to be achieved by providing Participants with the opportunity to earn incentive awards for the achievement of goals relating to the performance of the Company. The Plan is intended to permit the payment of bonuses that qualify as performance-based compensation under Section 162(m) of the Code.

 
SECTION 2: DEFINITIONS
 
The following words and phrases shall have the following meanings unless a different meaning is plainly required by the context:
 
		
	2.1
	“Actual Award”.  Means as to any Performance Period, the actual award (if any) payable to a Participant for the Performance Period. Each Actual Award is determined by the Payout Formula for the Performance Period, subject to the Committee’s authority under Section 3.6 to eliminate or reduce the award otherwise determined by the Payout Formula.

 
		
	2.2
	“Affiliate”.  Means any corporation or other entity (including, but not limited to, partnerships and joint ventures) controlled by the Company.

 
		
	2.3
	“Base Salary”.  Means as to any Performance Period, the Participant’s earned salary during the Performance Period. Such Base Salary shall be before both (a) deductions for taxes or benefits, and (b) deferrals of compensation pursuant to Company-sponsored plans and Affiliate-sponsored plans.

 
		
	2.4 
	“Board”.  Means the Board of Directors of the Company.

  
		
	2.5 
	“Code”.  Means the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated thereunder, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

 
		
	2.6 
	“Committee”.  Means the committee appointed by the Board (pursuant to Section 5.1) to administer the Plan.

 
		
	2.7 
	“Company”.  Means SunPower Corporation, a Delaware corporation, or any successor thereto.

 

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	2.8 
	“Determination Date”.  Means the latest possible date that will not jeopardize a Target Award or Actual Award’s qualification as performance-based compensation under Section 162(m) of the Code.

 
		
	2.9 
	“Disability”.  Means a permanent disability in accordance with a policy or policies established by the Committee (in its discretion) from time to time.

     
		
	2.10 
	“Employee”.  Means any employee of the Company or of an Affiliate, whether such employee is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan, who the Committee in its discretion designates as a member of the Company’s executive leadership team.

  
		
	2.11 
	“Fiscal Quarter”.  Means a fiscal quarter within a Fiscal Year of the Company.

 
		
	2.12 
	“Fiscal Year”.  Means the fiscal year of the Company.

  
		
	2.13 
	“Maximum Award”.  Means as to any Participant during any period of three (3) consecutive Fiscal Years, $9 million.

 
		
	2.14 
	“Participant”.  Means as to any Performance Period, an Employee who has been selected by the Committee for participation in the Plan for that Performance Period.

 
		
	2.15 
	“Payout Formula”.  Means as to any Performance Period, the formula or payout matrix established by the Committee pursuant to Section 3.4 in order to determine the Actual Awards (if any) to be paid to Participants. The formula or matrix may differ from Participant to Participant.

 
		
	2.16 
	“Performance Period”.  Means any Fiscal Year or such other period longer or shorter than a Fiscal Year but not shorter than a Fiscal Quarter or longer than three Fiscal Years, as determined by the Committee in its sole discretion.

 
		
	2.17 
	“Performance Goals”.  Means the goal(s) (or combined goal(s)) determined by the Committee (in its discretion) to be applicable to a Participant for a Target Award for a Performance Period. As determined by the Committee, the Performance Goals for any Target Award applicable to a Participant may be made subject to the attainment of performance goals for a specified period of time relating to one or more of the following performance criteria, either individually, alternatively or in any combination, applied to either the Company as a whole or to a business unit or Subsidiary, either individually, alternatively or in any combination, and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated comparison group or index, in each case as specified by the Committee: (a) cash flow, (b) earnings per share, (c) earnings before interest, taxes and amortization, (d) return on equity, (e) total stockholder return, (f) share price performance, (g) return on capital, (h) return on assets or net assets, (i) revenue, (j) income or net income, (k) operating income or net operating income, (l) operating profit or net operating profit, (m) operating margin or profit margin, (n) return on operating revenue, (o) return on invested capital, or (p) market segment shares. The Committee may provide for the adjustment of  any evaluation of performance against the  Performance Goals to exclude any objective and measurable events specified at the time the Performance Goals are established, including but not limited to any of the following events that occurs during a Performance Period: (i) asset write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results, (iv) accruals for reorganization and restructuring programs, (v) acceleration of amortization of debt issuance costs, 

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(vi) stock-based compensation charges, (vii) purchase-accounting related charges, including amortization of intangible purchased assets, acquired in-process research and development charges, and similar charges associated with purchase accounting, (viii) any extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30, and (ix) the related tax effects associated with each of the adjustments listed in clauses (i) through (viii) above.
 
		
	2.18 
	“Plan”.  Means the SunPower Corporation Annual Executive Bonus Plan, as set forth in this instrument and as hereafter amended from time to time.

  
		
	2.19 
	“Progress Payment”.  Means a portion of the Target Award or Actual Award for which the Committee has determined in accordance with Section 3.6 has been earned by the Participant as of the end of the Progress Period based on achievement of the applicable Performance Goals and thereby may be paid to the Participant during the Performance Period.

 
		
	2.20 
	“Progress Period”.  Means a period shorter than and within the Performance Period for which a Progress Payment may be made.

 
		
	2.22 
	“Target Award”.  Means the target award payable under the Plan to a Participant for the Performance Period, expressed as a percentage of his or her Base Salary or a specific dollar amount, as determined by the Committee in accordance with Section 3.3.

 
		
	2.23 
	“Termination of Employment”.  Means a cessation of the employee-employer relationship between an Employee and the Company or an Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, retirement (occurring in accordance with the policies established by the Committee (in its discretion) from time to time, or the disaffiliation of an Affiliate, but excluding any such termination where there is a simultaneous reemployment by the Company or an Affiliate.

 
SECTION 3: SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS
 
		
	3.1 
	Selection of Participants.  The Committee, in its sole discretion, shall select the Employees who shall be Participants for any Performance Period. The Committee, in its sole discretion, also may designate as Participants one or more individuals (by name or position) who are expected to become Employees during a Performance Period. Participation in the Plan is in the sole discretion of the Committee, and shall be determined on a Performance Period by Performance Period basis. Accordingly, an Employee who is a Participant for a given Performance Period in no way is guaranteed or assured of being selected for participation in any subsequent Performance Period.

 
		
	3.2 
	Determination of Performance Goals.  The Committee (or its designee described in Section 5.4), in its sole discretion, shall establish the Performance Goals for each Participant for the Performance Period. Such Performance Goals shall be set forth in writing.

 
		
	3.3 
	Determination of Target Awards.  The Committee, in its sole discretion, shall establish a Target Award for each Participant. Each Participant’s Target Award shall be determined by the Committee in its sole discretion, and each Target Award shall be set forth in writing.

 
		
	3.4 
	Determination of Payout Formula or Formulae.  On or prior to the Determination Date, the Committee, in its sole discretion, shall establish a Payout Formula or Formulae for purposes of determining the Actual Award (if any) payable to each Participant. Each Payout Formula shall (a) be in writing, (b) be based on a comparison of actual performance to the Performance Goals,

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(c) provide for the payment of a Participant’s Target Award if the Performance Goals for the Performance Period are achieved at the predetermined level, and (d) provide for the payment of an Actual Award greater than or less than the Participant’s Target Award, depending upon the extent to which actual performance exceeds or falls below the Performance Goals. Notwithstanding the preceding, in no event shall a Participant’s Actual Award for any Performance Period exceed the Maximum Award.
 
		
	3.5 
	Date for Determinations.  The Committee shall make all determinations under Sections 3.1 through 3.4 on or before the Determination Date.

 
		
	3.6 
	Determination of Actual Awards.  After the end of each Performance Period or, to the extent Progress Payments will be made, after the end of the Progress Period, the Committee (or its designee described in 5.4) shall certify in writing the extent to which the Performance Goals applicable to each Participant for the Performance Period or Progress Period, as applicable, were achieved or exceeded, as determined by the Committee. The Actual Award for each Participant shall be determined by applying the Payout Formula to the level of actual performance that has been certified in writing by the Committee. Notwithstanding any contrary provision of the Plan, the Committee, in its sole discretion, may (a) eliminate or reduce the Actual Award payable to any Participant below that which otherwise would be payable under the Payout Formula, and (b) determine whether or not any Participant will receive an Actual Award in the event the Participant incurs a Termination of Employment prior to the date the Actual Award is to be paid pursuant Section 4.2 below.

 
SECTION 4:  PAYMENT OF AWARDS
 
		
	4.1 
	Right to Receive Payment.  Each Actual Award that may become payable under the Plan shall be paid solely from the general assets of the Company or the Affiliate that employs the Participant (as the case may be), as determined by the Committee. Nothing in this Plan shall be construed to create a trust or to establish or evidence any Participant’s claim of any right to payment of an Actual Award other than as an unsecured general creditor with respect to any payment to which he or she may be entitled.  A Participant must be employed by the Company at the time of the payment to receive such payment, unless the Participant has died or become Disabled.

 
		
	4.2 
	Timing of Payment.  Subject to Section 3.6, payment of each Actual Award shall be made as soon as administratively practicable, but in no event later than two and one-half months after the end of the applicable Performance Period or Progress Period; provided, however, that that, in the case of a Performance Period or Progress Period of less than one year payment must occur within two and one-half months of the end of the calendar year that includes the last day of such Performance Period or Progress Period.

 
		
	4.3 
	Form of Payment.  Each Actual Award shall be paid in cash (or its equivalent) in a single lump sum.

 
		
	4.4 
	Payment in the Event of Death.  If a Participant dies prior to the payment of an Actual Award (determined under Section 3.6) that was scheduled to be paid to him or her prior to death for a prior Performance Period, the Award shall be paid to his or her designated beneficiary or, if no beneficiary has been designated, to his or her estate.

 
SECTION 5:  ADMINISTRATION
 

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	5.1 
	Committee is the Administrator.  The Plan shall be administered by the Committee. The Committee shall consist of not less than two (2) members of the Board. The members of the Committee shall be appointed from time to time by, and serve at the pleasure of, the Board. Each member of the Committee shall qualify as an “outside director” under Section 162(m) of the Code. If it is later determined that one or more members of the Committee do not so qualify, actions taken by the Committee prior to such determination shall be valid despite such failure to qualify. Any member of the Committee may resign at any time by notice in writing mailed or delivered to the Secretary of the Company. As of the Effective Date of the Plan, the Plan shall be administered by the Compensation Committee of the Board.

 
		
	5.2 
	Committee Authority.  It shall be the duty of the Committee to administer the Plan in accordance with the Plan’s provisions. The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (a) determine which Employees shall be granted awards, (b) prescribe the terms and conditions of awards, (c) interpret the Plan and the awards, (d) adopt such procedures and subplans as are necessary or appropriate to permit participation in the Plan by Employees who are foreign nationals or employed outside of the United States, (e) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (f) interpret, amend or revoke any such rules.

 
		
	5.3 
	Decisions Binding.  All determinations and decisions made by the Committee, the Board, and any delegate of the Committee pursuant to the provisions of the Plan shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law.

		
	5.4 
	Delegation by the Committee.  The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or part of its authority and powers under the Plan to one or more directors and/or officers of the Company; provided, however, that the Committee may not delegate its authority and/or powers with respect to awards that are intended to qualify as performance-based compensation under Section 162(m) of the Code.

 
SECTION 6: GENERAL PROVISIONS
 
		
	6.1 
	Tax Withholding.  The Company or an Affiliate, as determined by the Committee, shall withhold all applicable taxes from any Actual Award, including any federal, state, local and other taxes.

 
		
	6.2 
	No Effect on Employment.  Nothing in the Plan shall interfere with or limit in any way the right of the Company or an Affiliate, as applicable, to terminate any Participant’s employment or service at any time, with or without cause. For purposes of the Plan, transfer of employment of a Participant between the Company and any one of its Affiliates (or between Affiliates) shall not be deemed a Termination of Employment. Employment with the Company and its Affiliates is on an at-will basis only. The Company expressly reserves the right, which may be exercised at any time and without regard to when during or after a Performance Period such exercise occurs, to terminate any individual’s employment with or without cause, and to treat him or her without regard to the effect which such treatment might have upon him or her as a Participant.

 
		
	6.3 
	Participation.  No Employee shall have the right to be selected to receive an award under this Plan, or, having been so selected, to be selected to receive a future award.

 
		
	6.4 
	Indemnification.  Each person who is or shall have been a member of the Committee, or of the Board, shall be indemnified and held harmless by the Company against and from (a) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in 

5

connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any award, and (b) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless.
 
		
	6.5 
	Successors.  All obligations of the Company and any Affiliate under the Plan, with respect to awards granted hereunder, shall be binding on any successor to the Company and/or such Affiliate, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the Company or such Affiliate.

 
		
	6.6 
	Beneficiary Designations.

 
a. Designation.  Each Participant may, pursuant to such uniform and nondiscriminatory procedures as the Committee may specify from time to time, designate one or more Beneficiaries to receive any Actual Award payable to the Participant at the time of his or her death. Notwithstanding any contrary provision of this Section 6.6 shall be operative only after (and for so long as) the Committee determines (on a uniform and nondiscriminatory basis) to permit the designation of Beneficiaries.
 
b. Changes.  A Participant may designate different Beneficiaries (or may revoke a prior Beneficiary designation) at any time by delivering a new designation (or revocation of a prior designation) in like manner. Any designation or revocation shall be effective only if it is received by the Committee. However, when so received, the designation or revocation shall be effective as of the date the designation or revocation is executed (whether or not the Participant still is living), but without prejudice to the Committee on account of any payment made before the change is recorded. The last effective designation received by the Committee shall supersede all prior designations.
     
c. Failed Designation.  If the Committee does not make this Section 6.6 operative or if Participant dies without having effectively designated a Beneficiary, the Participant’s Account shall be payable to the general beneficiary shown on the records of the Employer. If no Beneficiary survives the Participant, the Participant’s Account shall be payable to his or her estate.
 
		
	6.7 
	Nontransferability of Awards.  No award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution, or to the limited extent provided in Section 6.6. All rights with respect to an award granted to a Participant shall be available during his or her lifetime only to the Participant.

 
		
	6.8 
	Deferrals.  The Committee, in its sole discretion, may permit a Participant to defer receipt of the payment of cash that would otherwise be delivered to a Participant under the Plan. Any such deferral elections shall be subject to such rules and procedures as shall be determined by the Committee in its sole discretion.

 

6

SECTION 7: AMENDMENT, TERMINATION AND DURATION
 
		
	7.1 
	Amendment, Suspension or Termination.  The Board or the Committee, each in its sole discretion, may amend or terminate the Plan, or any part thereof, at any time and for any reason. The amendment, suspension or termination of the Plan shall not, without the consent of the Participant, alter or impair any rights or obligations under any Target Award theretofore granted to such Participant. No award may be granted during any period of suspension or after termination of the Plan.

 
		
	7.2 
	Duration of the Plan.  The Plan shall commence on the date specified herein, and subject to Section 7.1 (regarding the Board or the Committee’s right to amend or terminate the Plan), shall remain in effect thereafter.

 
SECTION 8: LEGAL CONSTRUCTION
 
		
	8.1 
	Gender and Number.  Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural.

 
		
	8.2 
	Severability.  In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 
		
	8.3 
	Requirements of Law.  The granting of awards under the Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

 
		
	8.4 
	Governing Law.  The Plan and all awards shall be construed in accordance with and governed by the laws of the State of California, but without regard to its conflict of law provisions.

 
		
	8.5 
	Captions.  Captions are provided herein for convenience only, and shall not serve as a basis for interpretation or construction of the Plan.

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