Document:

Exhibit 10.2

 

FIRST AMENDMENT

 

THIS FIRST AMENDMENT dated as of July 3, 2009
(this “Amendment”) amends the Term Loan Agreement dated as of October 3,
2008 (the “Loan Agreement”) among REGIS CORPORATION, a Minnesota
corporation (the “Borrower”), the LENDERS party thereto and JPMORGAN
CHASE BANK, N.A., as Administrative Agent (in such capacity, the “Administrative
Agent”).  Capitalized terms used but
not defined herein have the respective meanings given to them in the Loan
Agreement.

 

WHEREAS, the Borrower has requested certain amendments
to the Loan Agreement.

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

 

SECTION 1.           AMENDMENTS. 
Subject to the conditions precedent set forth in Section 3,
the Loan Agreement is amended as follows:

 

1.1           Amendment of Certain
Definitions.  The
following definitions in Section 1.01 are amended in their entirety to read as follows,
respectively:

 

“Base Rate” means, for any day,
a rate per annum equal to the highest of (a) the Prime Rate in effect on
such day; (b) the Federal Funds Rate in effect on such day plus 1⁄2 of 1%;
and (c) the sum of 1.00% plus the Eurodollar Rate that would be applicable
for an Interest Period of one month beginning on such day (or if such day is
not a Business Day, the immediately preceding Business Day).  Any change in the Base Rate due to a change
in the Prime Rate or the Federal Funds Effective Rate shall be effective from
and including the effective date of such change in the Prime Rate or the
Federal Funds Effective Rate, respectively.

 

“EBITDA” means, for any period, for the Company and its
Subsidiaries on a consolidated basis, determined in accordance with GAAP, the
sum, without duplication, of (a) net income (or net loss) for such period,
excluding any extraordinary non-cash gains during such period (provided
that the net income of any Person that is not a Subsidiary of the Company shall
be included in the consolidated net income of the Company only to the extent of
the amount of cash dividends or distributions paid by such Person to the
Company or to a consolidated Subsidiary of the Company), plus (b) to
the extent included in the determination of such net income (or net loss), (i) all
amounts treated as expenses for depreciation (including, without duplication,
non-cash gains and losses upon the closing and abandonment of any
non-franchised store locations) and interest paid or accrued and the
amortization of intangibles of any kind, plus (ii) all taxes paid
or accrued and unpaid on or measured by income, plus (iii) any
Designated Charges plus (iv) any non-cash interest expense on
Indebtedness convertible into shares of common stock of the Borrower plus
(c) the amount of any other charge in respect of non-recurring expenses
arising in connection with Acquisitions, to the extent approved by the
Administrative Agent and the Required Lenders; provided that (A) if
the Company or any Subsidiary acquires a Person (an “Acquired Person”)
in an Acquisition in such period, then all of the Acquired 

 

1

 

Person’s
EBITDA (calculated for such Person as set forth above without giving effect to clause
(c)) for the four fiscal quarters then ended shall be added to EBITDA, and
if the Company or any Subsidiary sells all or substantially all of the stock or
assets of any Subsidiary in any such period, then the EBITDA of such Subsidiary
(calculated for such Person as set forth above without giving effect to clause
(c)) shall be deducted from EBITDA and (B) all non-cash losses and
expenses and non-cash impairment charges (including non-cash compensation
expense and non-cash impairment of goodwill and other intangibles or arising in
connection with any Joint Venture) taken in such period shall be added back to
EBITDA for such period and all cash payments made in such period that arise out
of non-cash losses or expenses and impairment charges taken in any previous
period shall be subtracted from EBITDA.

 

“Fixed Charges” means, with respect to the Company and its
Subsidiaries on a consolidated basis, as of any date of determination, (a) interest
expense paid or accrued on outstanding Indebtedness for the period of four
fiscal quarters ending on the date of determination (excluding non-cash
interest expense on Indebtedness convertible into shares of common stock of the
Borrower), and (b) Rental Expense paid or accrued in such period.

 

“Note Agreements” means, collectively, (a) the Amended and
Restated Private Shelf Agreement dated as of October 3, 2000 between the
Company and the purchasers named therein, (b) the Note Purchase Agreement
dated as of March 1, 2002 between the Company and the purchasers named
therein and (c) the Master Note Purchase Agreement dated as of March 15,
2005 between the Company and the purchasers named therein; provided that
after the effectiveness of the First Amendment to this Agreement, the term Note
Agreements shall refer solely to the agreement referred to in clause (a)
above.

 

1.2           Addition of Definition. 
The following definition is added to Section 1.01 in proper
alphabetical order:

 

“Designated Charges” means the first $6,000,000 of non-recurring
cash charges taken by the Borrower after June 30, 2009 related to (i) severance
expenses or (ii) lease termination expenses for locations operated from
the Company’s business headquartered in the United Kingdom.

 

1.3           Accounting Principles. 
The following subsection 1.03(d) is added in proper sequence:

 

(d)  Notwithstanding the foregoing provisions of this Section 1.03
or any other provision of this Agreement, the outstanding principal amount of
all Indebtedness of any Person shall be equal to the actual outstanding
principal amount thereof irrespective of the amount that might otherwise be
accounted for under GAAP as the amount of the liability of such Person with
respect to such Indebtedness, and any determination of the net income (or net
loss), equity or assets of any Person shall not take into account any effect of
marking any such outstanding Indebtedness of such Person to market value.

 

2

 

1.4           Interest Rates. 
Subsection 2.09(a) is amended in its entirety to read as follows:

 

(a)  Each
Tranche of a Loan shall bear interest on the outstanding principal amount
thereof at a rate per annum equal to (i) the Eurodollar Rate or the Base
Rate, as applicable (and subject to the Company’s right to convert to a Tranche
or portion thereof to the other Type pursuant to Section 2.04) plus
(ii) the Applicable Margin for the relevant Type of Loan.

 

1.5           Default Rate. 
Subsection 2.09(c) is amended by inserting the words “for Base Rate
Loans” immediately after the words “Applicable Margin” near the end of the
first sentence thereof.

 

1.6           Lien Basket.  Subsection 7.01(i) is
amended in its entirety to read as follows:

 

(i)  other Liens securing Indebtedness that does not exceed in the
aggregate at any one time outstanding the lesser of (x) two percent (2%)
of Net Worth as set forth in the most recently delivered Compliance Certificate
pursuant to Section 7.02(a) and (y) the maximum amount of
such secured Indebtedness that, when aggregated with all other outstanding
Priority Debt (within the meaning of the applicable Note Agreement), would be
permitted under each Note Agreement; provided that such Liens may not
secure any Note Agreement or any other Indebtedness (excluding Capital Lease
Obligations) to a bank, insurance company or other financial institution in
excess of $10,000,000.

 

1.7           Investments.  Subsection 7.04(d)(iii) is amended by replacing
the amount “$100,000,000” with the
amount “$20,000,000”.

 

1.8           Fixed Charge Coverage Ratio. 
Subsection 7.15(b) is amended by replacing the ratio  “1.50 to 1.00” with the ratio “1.30 to 1.0”.

 

1.9           Minimum Net Worth.  Section 7.16
is amended is amended in its entirety to read as follows:

 

7.16         Minimum Net Worth.  (a)  The
Company shall not, as of June 30, 2009, permit Net Worth to be less than
the sum of (a) $675,000,000 plus (b) on a cumulative basis,
25% of the positive net income earned during each fiscal quarter commencing on
or after March 31, 2007.

 

(b)  The Company
shall not, as of the last day of any fiscal quarter ending after June 30,
2009, permit Net Worth to be less than the sum of (i) $800,000,000, plus (b) on
a cumulative basis, twenty-five percent (25%) of the positive net income earned
during each fiscal quarter commencing on or after June 30, 2009, plus (c) on
a cumulative basis, fifty percent (50%) of the net cash proceeds received from
the issuance of equity securities of the Company, if any, after June 30,
2009 minus (d) the lesser of (i) $50,000,000 and (ii) Special
Charges taken or incurred after March 31, 2009.  For purposes of clause (d) above, “Special
Charges” means (1) impairment of goodwill and other intangibles; (2) non-cash
charges related to discontinued operations; and (3) non-cash net
reductions to accumulated other 

 

3

 

comprehensive income
(other than reductions related to pensions, post-retirement benefits and
similar retirement adjustments)..

 

1.10         Restricted Payments Covenant.  Article VII
is amended by adding the following Section 7.18 at the end thereof:

 

7.18         Restricted Payments.  The Company
shall not, and shall not permit any Subsidiary to, (i) declare or pay any dividend
or make any other distribution (whether in cash, securities or other property)
on any of its stock or other equity interests or any warrants, options or other
rights with respect thereto (any of the foregoing, “Equity Interests”) or (ii) purchase, redeem or otherwise acquire for
value any of its Equity Interests (any such declaration, payment, distribution,
purchase or other acquisition, a “Restricted Payment”); provided that:

 

(a) 
any Subsidiary may declare and pay dividends, and make other distributions, to
the Company or any other Subsidiary;

 

(b) 
the Company may declare and pay stock dividends; and

 

(c) 
so long as no Default or Event of Default exists, the Company and its
Subsidiaries may make other Restricted Payments; provided that if the Leverage Ratio as of the
last day of the most recently ended fiscal quarter was greater than 2.00 to
1.0, then neither the Company nor any Subsidiary will make any Restricted
Payment pursuant to this clause (c) if, after giving effect
thereto, the aggregate amount of all such Restricted Payments made during the
12-month period ending on the date of such Restricted Payment would exceed
$20,000,000.

 

1.11         Amendment to Pricing Schedule. 
Schedule 1.01 is replaced by Schedule 1.01(a) hereto (and
the revised pricing set forth in such Schedule shall be effective immediately
upon the effectiveness of this Amendment based upon the Leverage Ratio as of March 31,
2009).

 

SECTION 2.           Representations
and Warranties.  The Borrower represents and warrants to the
Administrative Agent and the Lenders that as of the date of effectiveness of
this Amendment (and after giving effect to such effectiveness): (a) the
representations and warranties of the Borrower set forth in the Loan Agreement
will be true and correct in all material respects (except to the extent stated
to relate to an earlier date, in which case such representations and warranties
were true and correct in all material respects as of such earlier date); and (b) no
Default or Event of Default will exist.

 

SECTION 3.           CONDITIONS
PRECEDENT.  This Amendment shall become effective on the
date (which shall be on or before August 15, 2009) on which the
Administrative Agent has received the following:

 

(a)           Counterparts of this Amendment signed by
the Borrower and the Required Lenders.

 

(b)           A Confirmation substantially in the form
of Exhibit A signed by each Loan Party.

 

(c)           An amendment fee for each Lender that, on
or prior to 4:00 p.m. on July 2, 2009, delivers a signed counterpart
of this Amendment to the Administrative Agent, such fee to be 

 

4

 

equal to the product of
0.125% multiplied by the outstanding principal amount of such Lender’s
Loan.

 

(d)          Payment of all invoiced fees and expenses of the
Administrative Agent (including reasonable attorneys’ fees and expenses).

 

(e)           Evidence that the Borrower has received
proceeds from the issuance (after June 26, 2009) of not less than
$250,000,000 of common stock of the Borrower or debt securities convertible
into such common stock of which not less than $125,000,000 shall be proceeds of
the issuance of common stock.

 

(f)            Evidence that the Borrower has paid all
of its obligations under the Note Agreements listed on Annex 1.

 

(g)           Evidence that the Note Agreement listed
on Annex 2 has been amended in a manner consistent with the amendments
set forth herein and otherwise reasonably satisfactory to the Administrative
Agent.

 

(h)           A Termination of Intercreditor Agreement
substantially in the form of Exhibit B signed by each party
thereto.

 

SECTION 4.           MISCELLANEOUS.

 

4.1           Expenses.  The Company agrees to pay all reasonable
out-of-pocket expenses incurred by the Administrative Agent (including the
reasonable fees, charges and disbursements of counsel for the Administrative
Agent) in connection with this Amendment and the transactions contemplated
hereby.

 

4.2           Incorporation of Loan Agreement
Provisions.  The provisions of Sections 1.02 (Other
Interpretive Provisions), 10.14 (Severability) and 10.17 (Waiver of Jury Trial)
of the Loan Agreement are incorporated by reference as if fully set forth
herein, mutatis mutandis.

 

4.3           Signing in Counterparts. 
This Amendment may be signed by the parties hereto in several
counterparts, each of which shall be deemed to be an original and all of which
shall constitute together but one and the same agreement.  A signature hereto delivered by facsimile or
in .pdf format shall be effective as delivery of an original counterpart.

 

4.4           Governing Law. 
THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF ILLINOIS.

 

4.5           Successors and Assigns. 
This Amendment shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns.

 

4.6           Effect of Amendment.  Except as expressly set forth herein, this
Amendment shall not (a) limit, impair, constitute a waiver of or otherwise
affect the rights and remedies of the Lenders or the Administrative Agent under
the Loan Agreement or any other Loan Document or (b) alter, modify or
amend any term or condition set forth in the Loan Agreement or any other Loan
Document.

 

5

 

4.7           Termination of Intercreditor Agreement. 
Each Lender authorizes the Administrative Agent to execute and deliver a
Termination of Intercreditor Agreement substantially in the form of Exhibit B
concurrently with (or immediately prior to) the effectiveness of this
Amendment.

 

[Remainder Of Page Intentionally Left Blank]

 

6

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be signed by their respective officers thereunto duly
authorized as of the day and year first above written.

 

 

	
   

  	
  REGIS
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Randy L. Pearce

  
	
   

  	
  Title:

  	
  Senior Executive Vice President,

  Chief Financial and Administrative Officer

  

 

First
Amendment to

Regis
Term Loan

 

S-1

 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A.,

  individually and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Krys Szremski

  
	
   

  	
  Title:

  	
  Vice President

  

 

First
Amendment to

Regis
Term Loan

 

S-2

 

	
   

  	
  BANK
  OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steve K. Kessler

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

First
Amendment to

Regis
Term Loan

 

S-3

 

	
   

  	
  THE
  BANK OF TOKYO-MITSUBISHI UFJ, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Victor Pierzchalski

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

First
Amendment to

Regis
Term Loan

 

S-4

 

	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

First
Amendment to

Regis
Term Loan

 

S-5

 

	
   

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mark Halldorson

  
	
   

  	
  Title:

  	
  Vice President

  

 

First
Amendment to

Regis
Term Loan

 

S-6

 

	
   

  	
  ROYAL
  BANK OF CANADA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Dustin Craven

  
	
   

  	
  Title:

  	
  Attorney-in-Fact

  

 

First
Amendment to

Regis
Term Loan

 

S-7

 

SCHEDULE
1.01

 

PRICING
SCHEDULE

 

The
Applicable Margin shall be determined in accordance with the foregoing table
based on the applicable Leverage Ratio (as determined in accordance with the
most recent annual audited or quarterly unaudited financial statements
delivered pursuant to Section 6.1 and the corresponding compliance
certificate delivered pursuant to subsection 6.2(a). (the “Financials”)).
Initially, the Applicable Margin shall be based on Level III.  Adjustments, if any, to the Applicable Margin
shall be effective five Business Days after the earlier of (a) the date on
which the Company is required to file its Financials with the Securities and
Exchange Commission (the “SEC”) and (b)(i) in the case of the annual
audited Financials, 90 days after the end of each fiscal year of the Company,
and (ii) in the case of the quarterly unaudited Financials, 45 days after
the end of each of the first three quarters of each fiscal year of the Company;
provided that (a) the Applicable Margin may not be based on Level I
or Level II until 45 days after the last day of the fiscal quarter ending December 31,
2008; and (b) if the Company fails to file any Financials on a timely
basis, Level IV shall apply until such Financials are filed.

 

	
  Level

  	
   

  	
  Level I

  	
   

  	
  Level II

  	
   

  	
  Level III

  	
   

  	
  Level IV

  	
   

  
	
  Leverage Ratio

  	
   

  	
  <1.75
  to 1.0

  	
   

  	
  >1.75 to 1.0 

  and 

  <2.25 to 1.0

  	
   

  	
  >2.25 to 1.0

  and

  <2.75 to 1.0

  	
   

  	
  >2.75 to 1.0

  	
   

  
	
  Applicable Margin for Eurodollar
  Rate Loans (bps)

  	
   

  	
  225

  	
   

  	
  250

  	
   

  	
  275

  	
   

  	
  325

  	
   

  
	
  Applicable Margin for Base Rate
  Loans (bps)

  	
   

  	
  125

  	
   

  	
  150

  	
   

  	
  175

  	
   

  	
  225

  	
   

  

 

If, as a result of
any restatement of or other adjustment to Financials or for any other reason,
the Lenders determine that (a) the Leverage Ratio as calculated by the
Company as of any applicable date was inaccurate and (b) a proper
calculation of the Leverage Ratio would have resulted in different pricing for
any period, then (i) if the proper calculation of the Leverage Ratio would
have resulted in higher pricing for such period, the Company shall
automatically and retroactively be obligated to pay to the Administrative Agent
for the benefit of the Lenders, promptly following demand by the Administrative
Agent (accompanied by supporting materials (which may be in the form of
Financials prepared by the Company or the Company’s independent auditors)), an
amount equal to the excess of the amount of interest and fees that should have
been paid for such period over the amount of interest and fees actually paid
for such period; and (ii) if the proper calculation of the Leverage Ratio
would have resulted in lower pricing for such period, the Lenders shall have no
obligation to repay any interest or fees to the Company; provided that
if, as a result of any restatement or other event a proper calculation of the
Leverage Ratio would have resulted in higher pricing for one or more periods
and lower pricing for one or more other periods (due to the shifting of income
or expenses from one period to another period or any similar reason), then the
amount payable by the Company pursuant to clause (i) above shall be
based upon the excess, if any, of the amount of interest and fees that should
have been paid for all applicable periods over the amount of interest and fees
paid for all such periods.

 

 

EXHIBIT A

 

FORM OF CONFIRMATION

 

              
    , 2009

 

To:                              JPMorgan Chase
Bank, N.A., individually and as Administrative

Agent,
and the other financial institutions that are

parties
to the Loan Agreement referred to below

 

Please
refer to the First Amendment dated as of the date hereof (the “Amendment”)
to the Term Loan Agreement dated as of October 3, 2008 (the “Loan
Agreement”) among Regis Corporation, a Minnesota corporation, the Lenders
party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent.  Capitalized terms used but not otherwise
defined herein have the respective meanings given to them in the Loan
Agreement.

 

Each of the undersigned
hereby confirms to the Administrative Agent and the Lenders that such
undersigned has received a copy of the Amendment and that, after giving effect
to the Amendment and the transactions contemplated thereby, each Loan Document
to which such undersigned is a party continues in full force and effect and is
the legal, valid and binding obligation of such undersigned, enforceable
against such undersigned in accordance with its terms.

 

	
   

  	
  REGIS
  CORPORATION 

  
	
   

  	
  REGIS
  INC.

  
	
   

  	
  SUPERCUTS
  CORPORATE SHOPS, INC.

  
	
   

  	
  SUPERCUTS,
  INC.

  
	
   

  	
  THE
  BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC.

  
	
   

  	
  REGIS
  CORP.

  
	
   

  	
  HAIR
  CLUB FOR MEN, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Randy L. Pearce

  
	
   

  	
  Name:

  	
  Randy
  L. Pearce

  
	
   

  	
  Title:

  	
  Senior
  Executive Vice President, Chief Financial and Administrative Officer

  

 

 

EXHIBIT B

 

FORM OF 

TERMINATION OF INTERCREDITOR AGREEMENT

 

              
    , 2009

 

The
Prudential Insurance Company of America,

and
various affiliates thereof

c/o
Prudential Capital Group 

Two Prudential Plaza, Suite 5600 

Chicago, Illinois, 60601-6716 

Attention: Wiley S. Adams

 

Ladies/Gentlemen:

 

Please
refer to (a) the First Amendment dated as of the date hereof (the “Revolver
Amendment”) to the Fourth Amended and Restated Credit Agreement dated as of
July 12, 2007 (the “Credit Agreement”) among Regis Corporation (the
“Company”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as
Administrative Agent; (b) the First Amendment dated as of the date hereof
(the “Term Amendment”) to the Term Loan Agreement dated as of October 3,
2008 (the “Term Loan Agreement”) among the Company, the Lenders party
thereto and JPMorgan Chase Bank, N.A., as Administrative Agent; (c) Amendment
No. 6 to Amended and Restated Private Shelf Agreement dated as of July 3,
2009 (the “Pru Amendment”) among the Company and various affiliates
thereof and The Prudential Insurance Company of America and various affiliates
thereof; and (d) the Intercreditor Agreement (the “Intercreditor
Agreement”) among various creditors of the Company, including JPMorgan
Chase Bank, N.A., as Administrative Agent, and various insurance companies and
their affiliates.

 

The undersigned agree
that concurrently with the effectiveness of the Revolver Amendment, the Term
Amendment and the Pru Amendment, the Intercreditor Agreement shall terminate
and be of no further force or effect. 
Please evidence your agreement to the foregoing by signing and returning
a counterpart of this letter agreement.

 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A.,

  
	
   

  	
  as Administrative Agent under each of the Credit Agreement and the
  Term Loan Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

 

	
   

  	
  Acknowledge
  and Agreed:

  
	
   

  	
   

  
	
   

  	
  PRUDENTIAL
  INVESTMENT MANAGEMENT, INC.

  
	
   

  	
  THE PRUDENTIAL INSURANCE
  COMPANY OF 

  AMERICA 

  
	
   

  	
  PRUCO
  LIFE INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RGA
  REINSURANCE COMPANY

  
	
   

  	
  MUTUAL
  OF OMAHA INSURANCE COMPANY

  
	
   

  	
  RELIASTAR
  LIFE INSURANCE COMPANY

  
	
   

  	
  UNION
  SECURITY INSURANCE COMPANY

  
	
   

  	
  PHYSICIANS
  MUTUAL INSURANCE COMPANY

  
	
   

  	
  FARMERS
  NEW WORLD LIFE INSURANCE COMPANY

  
	
   

  	
  ZURICH
  AMERICAN INSURANCE COMPANY

  
	
   

  	
  SECURITY
  BENEFIT LIFE INSURANCE COMPANY, INC

  
	
   

  	
  BAYSTATE
  INVESTMENTS, LLC

  
	
   

  	
  ING
  LIFE INSURANCE AND ANNUITY COMPANY

  
	
   

  	
  MEDICA
  HEALTH PLANS

  
	
   

  	
  MTL
  INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Prudential
  Private Placement Investors,

  
	
   

  	
   

  	
  L.P.
  (as Investment Advisor)

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Prudential
  Private Placement Investors, Inc.

  
	
   

  	
   

  	
  (as
  its General Partner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PRUDENTIAL RETIREMENT INSURANCE
  AND 

  ANNUITY COMPANY

  
	
   

  	
  PRUDENTIAL ANNUITIES LIFE
  ASSURANCE 

  CORPORATION

  
	
   

  	
  UNIVERSAL PRUDENTIAL ARIZONA
  REINSURANCE 

  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Prudential
  Investment Management, Inc.,

  
	
   

  	
   

  	
  as
  investment manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Vice President

  
					

 

 

	
   

  	
  GIBRALTAR LIFE INSURANCE CO.,
  LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Prudential
  Investment Management (Japan),

  
	
   

  	
   

  	
  Inc.,
  as Investment Manager

  
	
   

  	
  By:

  	
  Prudential
  Investment Management, Inc.,

  
	
   

  	
   

  	
  as
  Sub-Adviser

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Vice President

  
					

 

 

The
undersigned consent to the foregoing:

 

	
  REGIS
  CORPORATION 

  	
   

  
	
  REGIS
  INC.

  	
   

  
	
  SUPERCUTS
  CORPORATE SHOPS, INC.

  	
   

  
	
  SUPERCUTS,
  INC.

  	
   

  
	
  THE BARBERS, HAIRSTYLING FOR
  MEN & WOMEN, INC.

  	
   

  
	
  REGIS
  CORP.

  	
   

  
	
  HAIR
  CLUB FOR MEN, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Randy L. Pearce

  	
   

  
	
  Name:

  	
  Randy
  L. Pearce

  	
   

  
	
  Title:

  	
  Senior Executive Vice President, Chief Financial and Administrative
  Officer

  	
   

  

 

 

ANNEX 1

 

NOTE AGREEMENTS TO BE PAID

 

Note
Purchase Agreement dated as of March 1, 2002 among the Company and various
purchasers.

 

Note
Purchase Agreement dated as of March 1, 2005 among the Company and various
purchasers.

 

 

ANNEX 2

 

NOTE AGREEMENT TO BE AMENDED

 

Amended
and Restated Private Shelf Agreement dated as October 3, 2000 among the
Company, Prudential Investment Management, Inc., The Prudential Insurance
Company of America, Pruco Life Insurance Company, Pruco Life Insurance Company
of New Jersey and the other “Prudential Affiliates” that pursuant to the terms
thereof have become bound by certain provisions thereof.Exhibit
10.3

 

FIRST AMENDMENT

 

THIS FIRST AMENDMENT dated as of July 3, 2009
(this “Amendment”) amends the Fourth Amended and Restated Credit
Agreement dated as of July 12, 2007 (the “Credit Agreement”) among
REGIS CORPORATION, a Minnesota corporation (the “Borrower”), the LENDERS
party thereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such
capacity, the “Administrative Agent”). 
Capitalized terms used but not defined herein have the respective
meanings given to them in the Credit Agreement.

 

WHEREAS, the Borrower has requested certain amendments
to the Credit Agreement.

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

 

SECTION 1.           AMENDMENTS.  Subject to the conditions precedent set forth
in Section 3, the Credit Agreement is amended as follows:

 

1.1          Amendment of Certain Definitions.  The following definitions in Section 1.01
are amended in their
entirety to read as follows, respectively:

 

“Base Rate” means, for any day,
a rate per annum equal to the highest of (a) the Prime Rate in effect on
such day; (b) the Federal Funds Rate in effect on such day plus 1⁄2 of 1%;
and (c) the sum of 1.00% plus the Offshore Rate that would be applicable
for an Interest Period of one month beginning on such day (or if such day is
not a Business Day, the immediately preceding Business Day).  Any change in the Base Rate due to a change
in the Prime Rate or the Federal Funds Effective Rate shall be effective from and
including the effective date of such change in the Prime Rate or the Federal
Funds Effective Rate, respectively.

 

“EBITDA” means, for any period, for the Company and its
Subsidiaries on a consolidated basis, determined in accordance with GAAP, the
sum, without duplication, of (a) net income (or net loss) for such period,
excluding any extraordinary non-cash gains during such period (provided
that the net income of any Person that is not a Subsidiary of the Company shall
be included in the consolidated net income of the Company only to the extent of
the amount of cash dividends or distributions paid by such Person to the
Company or to a consolidated Subsidiary of the Company), plus (b) to
the extent included in the determination of such net income (or net loss), (i) all
amounts treated as expenses for depreciation (including, without duplication,
non-cash gains and losses upon the closing and abandonment of any
non-franchised store locations) and interest paid or accrued and the
amortization of intangibles of any kind, plus (ii) all taxes paid
or accrued and unpaid on or measured by income, plus (iii) any
Designated Charges plus (iv) any non-cash interest expense on
Indebtedness convertible into shares of common stock of the Borrower plus
(c) the amount of any other charge in respect of non-recurring expenses
arising in connection with Acquisitions, to the extent approved by the
Administrative Agent and the Required Lenders; provided that (A) if
the Company or any Subsidiary acquires a Person (an “Acquired Person”)
in an Acquisition in such period, then all of the Acquired

 

1

 

Person’s
EBITDA (calculated for such Person as set forth above without giving effect to clause
(c)) for the four fiscal quarters then ended shall be added to EBITDA, and
if the Company or any Subsidiary sells all or substantially all of the stock or
assets of any Subsidiary in any such period, then the EBITDA of such Subsidiary
(calculated for such Person as set forth above without giving effect to clause
(c)) shall be deducted from EBITDA and (B) all non-cash losses and
expenses and non-cash impairment charges (including non-cash compensation
expense and non-cash impairment of goodwill and other intangibles or arising in
connection with any Joint Venture) taken in such period shall be added back to
EBITDA for such period and all cash payments made in such period that arise out
of non-cash losses or expenses and impairment charges taken in any previous
period shall be subtracted from EBITDA.

 

“Fixed Charges” means, with respect to the Company and its
Subsidiaries on a consolidated basis, as of any date of determination, (a) interest
expense paid or accrued on outstanding Indebtedness for the period of four
fiscal quarters ending on the date of determination (excluding non-cash
interest expense on Indebtedness convertible into shares of common stock of the
Borrower), and (b) Rental Expense paid or accrued in such period.

 

“Note Agreements” means, collectively, (a) the Amended and
Restated Private Shelf Agreement dated as of October 3, 2000 between the
Company and the purchasers named therein, (b) the Note Purchase Agreement
dated as of March 1, 2002 between the Company and the purchasers named
therein and (c) the Master Note Purchase Agreement dated as of March 15,
2005 between the Company and the purchasers named therein; provided that
after the effectiveness of the First Amendment to this Agreement, the term Note
Agreements shall refer solely to the agreement referred to in clause (a) above.

 

1.2          Addition
of Definition.  The following
definition is added to Section 1.01 in proper alphabetical order:

 

“Designated Charges” means the first $6,000,000 of non-recurring
cash charges taken by the Borrower after June 30, 2009 related to (i) severance
expenses or (ii) lease termination expenses for locations operated from
the Company’s business headquartered in the United Kingdom.

 

1.3          Accounting
Principles.  The following subsection
1.03(d) is added in proper sequence:

 

(d)  Notwithstanding the foregoing provisions of this Section 1.03
or any other provision of this Agreement, the outstanding principal amount of
all Indebtedness of any Person shall be equal to the actual outstanding
principal amount thereof irrespective of the amount that might otherwise be
accounted for under GAAP as the amount of the liability of such Person with
respect to such Indebtedness, and any determination of the net income (or net
loss), equity or assets of any Person shall not take into account any effect of
marking any such outstanding Indebtedness of such Person to market value.

 

2

 

1.4          Interest
Rates.  Subsection 2.10(a) is
amended in its entirety to read as follows:

 

(a)  Each
Revolving Loan shall bear interest on the outstanding principal amount thereof
from the applicable Borrowing Date at a rate per annum equal to (i) the
Offshore Rate or the Base Rate, as the case may be (and subject to the Company’s
right to convert to the other Type of Loan under Section 2.04), plus
(ii) the Applicable Margin for the relevant Type of Loan plus (iii) if
such Loans are Offshore Currency Loans, the Associated Costs Rate, if
applicable.

 

1.5          Default
Rate.  Subsection 2.10(c) is
amended by inserting the words “for Base Rate Loans” immediately after the
words “Applicable Margin” near the end of the first sentence thereof.

 

1.6          Deletion
of References to Utilization.  (a) 
The second sentence of subsection 2.11(b) is deleted in its entirety; and (b) the
existing subsection 2.12(b) is deleted in its entirety (and the existing
subsection 2.12(c) is redesignated as 2.12(b)).

 

1.7          Lien
Basket.  Subsection 8.01(i) is
amended in its entirety to read as follows:

 

(i)  other Liens securing Indebtedness that does not exceed in the
aggregate at any one time outstanding the lesser of (x) two percent (2%)
of Net Worth as set forth in the most recently delivered Compliance Certificate
pursuant to Section 7.02(a) and (y) the maximum amount of
such secured Indebtedness that, when aggregated with all other outstanding
Priority Debt (within the meaning of the applicable Note Agreement), would be
permitted under each Note Agreement; provided that such Liens may not
secure any Note Agreement or any other Indebtedness (excluding Capital Lease
Obligations) to a bank, insurance company or other financial institution in
excess of $10,000,000.

 

1.8          Investments.  Subsection 8.04(d)(iii) is amended by
replacing the amount “$100,000,000” with the
amount “$20,000,000”.

 

1.9          Fixed
Charge Coverage Ratio.  Subsection
8.15(b) is amended by replacing the ratio  “1.50 to 1.00” with the ratio “1.30 to 1.0”.

 

1.10        Minimum
Net Worth.  Section 8.16 is amended in its entirety
to read as follows:

 

8.16        Minimum Net Worth.  (a)  The Company shall not, as of June 30,
2009, permit Net Worth to be less than the sum of (a) $675,000,000 plus
(b) on a cumulative basis, 25% of the positive net income earned during
each fiscal quarter commencing on or after March 31, 2007.

 

(b)  The
Company shall not, as of the last day of any fiscal quarter ending after June 30,
2009, permit Net Worth to be less than the sum of (i) $800,000,000, plus (b) on
a cumulative basis, twenty-five percent (25%) of the positive net income earned
during each fiscal quarter commencing on or after June 30, 2009, plus (c) on
a cumulative basis, fifty percent (50%) of the net cash proceeds received from
the issuance of equity securities of the Company, if any, after June 30,
2009 minus (d) the lesser of (i) $50,000,000 and (ii) Special
Charges taken or 

 

3

 

incurred after March 31,
2009.  For purposes of clause (d) above,
“Special Charges” means (1) impairment of goodwill and other intangibles; (2) non-cash
charges related to discontinued operations; and (3) non-cash net
reductions to accumulated other comprehensive income (other than reductions
related to pensions, post-retirement benefits and similar retirement
adjustments).

 

1.11        Restricted
Payments Covenant.  Article VIII is amended
by adding the following Section 8.18 at the end thereof:

 

8.18         Restricted
Payments.  The Company shall not, and
shall not permit any Subsidiary to, (i) declare or pay any
dividend or make any other distribution (whether in cash,
securities or other property) on any of its stock or other equity interests or
any warrants, options or other rights with respect thereto (any of the
foregoing, “Equity Interests”) or (ii) purchase, redeem or otherwise acquire for
value any of its Equity Interests (any such declaration, payment, distribution,
purchase or other acquisition, a “Restricted
Payment”); provided that:

 

(a) 
any Subsidiary may declare and pay dividends, and make other distributions, to
the Company or any other Subsidiary;

 

(b) 
the Company may declare and pay stock dividends; and

 

(c) 
so long as no Default or Event of Default exists, the Company and its
Subsidiaries may make other Restricted Payments; provided that if the Leverage Ratio as of the
last day of the most recently ended fiscal quarter was greater than 2.00 to
1.0, then neither the Company nor any Subsidiary will make any Restricted
Payment pursuant to this clause (c) if, after giving effect
thereto, the aggregate amount of all such Restricted Payments made during the
12-month period ending on the date of such Restricted Payment would exceed
$20,000,000.

 

1.12        Amendment
to Pricing Schedule.  Schedule 1.01(a) is
replaced by Schedule 1.01(a) hereto (and the revised pricing set
forth in such Schedule shall be effective immediately upon the effectiveness of
this Amendment based upon the Leverage Ratio as of March 31, 2009).

 

1.13        Reduction
of Aggregate Commitment.  The
Aggregate Commitment is reduced to $300,000,000 and, accordingly, Schedule 2.01
is replaced by Schedule 2.01 hereto.

 

SECTION 2.           Representations
and Warranties.  The Borrower
represents and warrants to the Administrative Agent and the Lenders that as of
the date of effectiveness of this Amendment (and after giving effect to such
effectiveness): (a) the representations and warranties of the Borrower set
forth in the Credit Agreement will be true and correct in all material respects
(except to the extent stated to relate to an earlier date, in which case such
representations and warranties were true and correct in all material respects
as of such earlier date); and (b) no Default or Event of Default will
exist.

 

SECTION 3.           CONDITIONS
PRECEDENT.  This Amendment shall
become effective on the date (which shall be on or before August 15, 2009)
on which the Administrative Agent has received the following:

 

4

 

(a)           Counterparts
of this Amendment signed by the Borrower and the Required Lenders.

 

(b)          A Confirmation substantially in the
form of Exhibit A signed by each Loan Party.

 

(c)           An amendment fee for each Lender
that, on or prior to 4:00 p.m. on July 2, 2009, delivers a signed
counterpart of this Amendment to the Administrative Agent, such fee to be equal
to the product of 0.125% multiplied by such Lender’s Commitment (after
giving effect to the reduction of the Aggregate Commitment pursuant to Section 1.9).

 

(d)         Payment of all invoiced fees and
expenses of the Administrative Agent (including reasonable attorneys’ fees and
expenses).

 

(e)           Evidence that the Borrower has
received proceeds from the issuance (after June 26, 2009) of not less than
$250,000,000 of common stock of the Borrower or debt securities convertible
into such common stock of which not less than $125,000,000 shall be proceeds of
the issuance of common stock.

 

(f)           Evidence that the Borrower has paid
all of its obligations under the Note Agreements listed on Annex 1.

 

(g)          Evidence that the Note Agreement
listed on Annex 2 has been amended in a manner consistent with the
amendments set forth herein and otherwise reasonably satisfactory to the
Administrative Agent

 

(h)          A Termination of Intercreditor
Agreement substantially in the form of Exhibit B signed by each
party thereto.

 

SECTION 4.           MISCELLANEOUS.

 

4.1          Expenses.  The Company agrees to pay all reasonable
out-of-pocket expenses incurred by the Administrative Agent (including the
reasonable fees, charges and disbursements of counsel for the Administrative
Agent) in connection with this Amendment and the transactions contemplated
hereby.

 

4.2          Incorporation
of Credit Agreement Provisions.  The
provisions of Sections 1.02 (Other Interpretive Provisions), 11.14
(Severability) and 11.17 (Waiver of Jury Trial) of the Credit Agreement are
incorporated by reference as if fully set forth herein, mutatis mutandis.

 

4.3          Signing
in Counterparts.  This Amendment may
be signed by the parties hereto in several counterparts, each of which shall be
deemed to be an original and all of which shall constitute together but one and
the same agreement.  A signature hereto
delivered by facsimile or in .pdf format shall be effective as delivery of an
original counterpart.

 

4.4          Governing
Law.  THIS AMENDMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE LAWS OF THE STATE OF ILLINOIS.

 

5

 

4.5          Successors
and Assigns.  This Amendment shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

 

4.6          Effect of
Amendment.  Except as
expressly set forth herein, this Amendment shall not (a) limit, impair,
constitute a waiver of or otherwise affect the rights and remedies of the
Lenders or the Administrative Agent under the Credit Agreement or any other
Loan Document or (b) alter, modify or amend any term or condition set
forth in the Credit Agreement or any other Loan Document.

 

4.7          Termination of
Intercreditor Agreement.  Each
Lender authorizes the Administrative Agent to execute and deliver a Termination
of Intercreditor Agreement substantially in the form of Exhibit B
concurrently with (or immediately prior to) the effectiveness of this
Amendment.

 

[Remainder Of Page Intentionally Left Blank]

 

6

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be signed by their respective officers thereunto duly
authorized as of the day and year first above written.

 

 

	
   

  	
  REGIS
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Randy L. Pearce

  
	
   

  	
  Title:

  	
  Senior Executive Vice President, Chief Financial and Administrative
  Officer

  

 

Regis
First Amendment

To
Revolving Facility

 

S-1

 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A.,

  individually and as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Krys Szremski

  
	
   

  	
  Title:

  	
  Vice President

  

 

Regis
First Amendment

To
Revolving Facility

 

S-2

 

	
   

  	
  BANK
  OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steve K. Kessler

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

Regis
First Amendment

To
Revolving Facility

 

S-3

 

	
   

  	
  THE
  BANK OF TOKYO-MITSUBISHI UFJ, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Victor Pierzchalski

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

Regis
First Amendment

To
Revolving Facility

 

S-4

 

	
   

  	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Scott Degler

  
	
   

  	
  Title:

  	
  Vice President

  

 

Regis
First Amendment

To Revolving Facility

 

S-5

 

	
   

  	
  SUNTRUST
  BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael Vegh

  
	
   

  	
  Title:

  	
  Vice President

  

 

Regis
First Amendment

To Revolving Facility

 

S-6

 

	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Regis
First Amendment

To Revolving Facility

 

S-7

 

	
   

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mark Halldorson

  
	
   

  	
  Title:

  	
  Vice President

  

 

Regis
First Amendment

To Revolving Facility

 

S-8

 

	
   

  	
  ROYAL
  BANK OF CANADA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Dustin Craven

  
	
   

  	
  Title:

  	
  Attorney-in-Fact

  

 

Regis
First Amendment

To Revolving Facility

 

S-9

 

SCHEDULE 1.01(a)

 

PRICING SCHEDULE

 

The
Applicable Margin for Offshore Rate Loans and for Base Rate Loans and the
Applicable Facility Fee Percentage shall be determined in accordance with the
table below based on the applicable Leverage Ratio (as determined in accordance
with the most recent annual audited or quarterly unaudited financial statements
delivered pursuant to Section 7.1 and the corresponding compliance
certificate delivered pursuant to subsection 7.2(a) (the “Financials”)).
Adjustments, if any, to the Applicable Margin and the Applicable Facility Fee
Percentage shall be effective five Business Days after the earlier of (a) the
date on which the Company is required to file its Financials with the SEC and
(b)(i) in the case of the annual audited Financials, 90 days after the end
of each fiscal year of the Company, and (ii) in the case of the quarterly
unaudited Financials, 45 days after the end of each of the first three quarters
of each fiscal year of the Company; provided that if the Company fails
to file any Financials on a timely basis, Level IV shall apply until such
Financials are filed.

 

	
  Level

  	
   

  	
  Level I

  	
   

  	
  Level II

  	
   

  	
  Level III

  	
   

  	
  Level IV

  	
   

  
	
  Leverage Ratio

  	
   

  	
  <1.75 to 1.0

  	
   

  	
  >1.75 to 1.0

  and

  <2.25 to 1.0

  	
   

  	
  >2.25 to 1.0

  and

  <2.75 to 1.0

  	
   

  	
  >2.75 to 1.0

  	
   

  
	
  Applicable
  Margin for Offshore Rate Loans (bps)

  	
   

  	
  200

  	
   

  	
  225

  	
   

  	
  245

  	
   

  	
  285

  	
   

  
	
  Applicable
  Margin for Base Rate Loans (bps)

  	
   

  	
  100

  	
   

  	
  125

  	
   

  	
  145

  	
   

  	
  185

  	
   

  
	
  Applicable
  Facility Fee Percentage (bps)

  	
   

  	
  25

  	
   

  	
  25

  	
   

  	
  30

  	
   

  	
  40

  	
   

  

 

If, as a result of any restatement of or other adjustment to Financials
or for any other reason, the Lenders determine that (a) the Leverage Ratio
as calculated by the Company as of any applicable date was inaccurate and (b) a
proper calculation of the Leverage Ratio would have resulted in different
pricing for any period, then (i) if the proper calculation of the Leverage
Ratio would have resulted in higher pricing for such period, the Company shall
automatically and retroactively be obligated to pay to the Administrative Agent
for the benefit of the Lenders, promptly following demand by the Administrative
Agent (accompanied by supporting materials (which may be in the form of
Financials prepared by the Company or the Company’s independent auditors)), an
amount equal to the excess of the amount of interest and fees that should have
been paid for such period over the amount of interest and fees actually paid
for such period; and (ii) if the proper calculation of the Leverage Ratio
would have resulted in lower pricing for such period, the Lenders shall have no
obligation to repay any interest or fees to the Company; provided that
if, as a result of any restatement or other event a proper calculation of the
Leverage Ratio would have resulted in higher pricing for one or more periods
and lower pricing for one or more other periods (due to the shifting of income
or expenses from one period to another period or any similar reason), then the
amount payable by the Company pursuant to clause (i) above shall be
based upon the

 

 

excess, if any, of
the amount of interest and fees that should have been paid for all applicable
periods over the amount of interest and fees paid for all such periods.

 

 

SCHEDULE 2.01

 

COMMITMENTS AND PRO RATA SHARES

 

	
  Lenders

  	
   

  	
  Commitment

  	
   

  	
  Pro Rata
  Share

  	
   

  
	
  JPMorgan
  Chase Bank, N.A.

  	
   

  	
  $

  	
   

  	
   

  	
  15.000000001

  	
  %

  
	
  Bank
  of America, N.A.

  	
   

  	
  $

  	
   

  	
   

  	
  27.857142858

  	
  %

  
	
  The
  Bank of Tokyo-Mitsubishi UFJ, Ltd., Chicago Branch

  	
   

  	
  $

  	
   

  	
   

  	
  12.857142857

  	
  %

  
	
  Wachovia
  Bank, N.A.

  	
   

  	
  $

  	
   

  	
   

  	
  12.857142857

  	
  %

  
	
  SunTrust
  Bank

  	
   

  	
  $

  	
   

  	
   

  	
  8.571428571

  	
  %

  
	
  U.S.
  Bank National Association

  	
   

  	
  $

  	
   

  	
   

  	
  8.571428571

  	
  %

  
	
  Wells
  Fargo Bank, National Association

  	
   

  	
  $

  	
   

  	
   

  	
  8.571428571

  	
  %

  
	
  Royal
  Bank of Canada

  	
   

  	
  $

  	
   

  	
   

  	
  5.714285714

  	
  %

  
	
  TOTAL

  	
   

  	
  $

  	
   

  	
   

  	
  100.000000000

  	
  %

  

 

 

EXHIBIT A

 

FORM OF
CONFIRMATION

 

              
    , 2009

 

	
  To:

  	
   

  	
  JPMorgan Chase Bank, N.A., individually and as Administrative

  
	
   

  	
   

  	
  Agent, and the other financial institutions that are

  
	
   

  	
   

  	
  parties to the Credit Agreement referred to below

  

 

Please refer to the First Amendment dated as of the
date hereof (the “Amendment”) to the Fourth Amended and Restated Credit
Agreement dated as of July 12, 2007 (the “Credit Agreement”) among
Regis Corporation, a Minnesota corporation, the Lenders party thereto and
JPMorgan Chase Bank, N.A., as Administrative Agent.  Capitalized terms used but not otherwise
defined herein have the respective meanings given to them in the Credit
Agreement.

 

Each of the undersigned
hereby confirms to the Administrative Agent and the Lenders that such
undersigned has received a copy of the Amendment and that, after giving effect
to the Amendment and the transactions contemplated thereby, each Loan Document
to which such undersigned is a party continues in full force and effect and is
the legal, valid and binding obligation of such undersigned, enforceable
against such undersigned in accordance with its terms.

 

	
   

  	
  REGIS CORPORATION

  
	
   

  	
  REGIS INC.

  
	
   

  	
  SUPERCUTS CORPORATE SHOPS, INC.

  
	
   

  	
  SUPERCUTS, INC.

  
	
   

  	
  THE BARBERS, HAIRSTYLING FOR MEN

  
	
   

  	
  & WOMEN, INC.

  
	
   

  	
  REGIS CORP.

  
	
   

  	
  HAIR CLUB FOR MEN, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Randy L. Pearce

  
	
   

  	
  Name:

  	
  Randy L. Pearce

  
	
   

  	
  Title:

  	
  Senior Executive Vice President, Chief Financial
  and Administrative Officer

  

 

 

EXHIBIT B

 

FORM OF 

TERMINATION OF INTERCREDITOR AGREEMENT

 

              
    , 2009

 

The
Prudential Insurance Company of America,

and various affiliates thereof

c/o Prudential Capital Group 

Two Prudential Plaza, Suite 5600 

Chicago, Illinois, 60601-6716 

Attention: Wiley S. Adams

 

Ladies/Gentlemen:

 

Please refer to (a) the First Amendment dated
as of the date hereof (the “Revolver Amendment”) to the Fourth Amended
and Restated Credit Agreement dated as of July 12, 2007 (the “Credit
Agreement”) among Regis Corporation (the “Company”), the Lenders
party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent; (b) the
First Amendment dated as of the date hereof (the “Term Amendment”) to
the Term Loan Agreement dated as of October 3, 2008 (the “Term Loan
Agreement”) among the Company, the Lenders party thereto and JPMorgan Chase
Bank, N.A., as Administrative Agent; (c) Amendment No. 6 to Amended
and Restated Private Shelf Agreement dated as of July 3, 2009 (the “Pru
Amendment”) among the Company and various affiliates thereof and The
Prudential Insurance Company of America and various affiliates thereof; and (d) the
Intercreditor Agreement (the “Intercreditor Agreement”) among various
creditors of the Company, including JPMorgan Chase Bank, N.A., as
Administrative Agent, and various insurance companies and their affiliates.

 

The undersigned agree
that concurrently with the effectiveness of the Revolver Amendment, the Term
Amendment and the Pru Amendment, the Intercreditor Agreement shall terminate
and be of no further force or effect. 
Please evidence your agreement to the foregoing by signing and returning
a counterpart of this letter agreement.

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  as Administrative Agent under each of the Credit
  Agreement and the Term Loan Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

	
   

  	
  Acknowledge
  and Agreed:

  
	
   

  	
   

  
	
   

  	
  PRUDENTIAL INVESTMENT
  MANAGEMENT, INC.

  
	
   

  	
  THE PRUDENTIAL INSURANCE
  COMPANY OF AMERICA

  
	
   

  	
  PRUCO LIFE INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RGA REINSURANCE COMPANY

  
	
   

  	
  MUTUAL OF OMAHA INSURANCE
  COMPANY

  
	
   

  	
  RELIASTAR LIFE INSURANCE
  COMPANY

  
	
   

  	
  UNION SECURITY INSURANCE
  COMPANY

  
	
   

  	
  PHYSICIANS MUTUAL INSURANCE
  COMPANY

  
	
   

  	
  FARMERS NEW WORLD LIFE
  INSURANCE COMPANY

  
	
   

  	
  ZURICH AMERICAN INSURANCE
  COMPANY

  
	
   

  	
  SECURITY BENEFIT LIFE INSURANCE
  COMPANY, INC

  
	
   

  	
  BAYSTATE INVESTMENTS, LLC

  
	
   

  	
  ING LIFE INSURANCE AND ANNUITY
  COMPANY

  
	
   

  	
  MEDICA HEALTH PLANS

  
	
   

  	
  MTL INSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Prudential
  Private Placement Investors,

  
	
   

  	
   

  	
  L.P.
  (as Investment Advisor)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Prudential
  Private Placement Investors, Inc.

  
	
   

  	
   

  	
  (as
  its General Partner)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PRUDENTIAL RETIREMENT INSURANCE
  AND ANNUITY COMPANY

  
	
   

  	
  PRUDENTIAL ANNUITIES LIFE
  ASSURANCE CORPORATION

  
	
   

  	
  UNIVERSAL PRUDENTIAL ARIZONA
  REINSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Prudential
  Investment Management, Inc.,

  
	
   

  	
   

  	
  as
  investment manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Vice President

  

 

 

	
   

  	
  GIBRALTAR
  LIFE INSURANCE CO., LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Prudential
  Investment Management (Japan),

  
	
   

  	
   

  	
  Inc.,
  as Investment Manager

  
	
   

  	
  By:

  	
  Prudential
  Investment Management, Inc.,

  
	
   

  	
   

  	
  as
  Sub-Adviser

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Vice President

  

 

 

The
undersigned consent to the foregoing:

 

	
  REGIS
  CORPORATION

  	
   

  
	
  REGIS
  INC.

  	
   

  
	
  SUPERCUTS
  CORPORATE SHOPS, INC.

  	
   

  
	
  SUPERCUTS,
  INC.

  	
   

  
	
  THE
  BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC.

  	
   

  
	
  REGIS
  CORP.

  	
   

  
	
  HAIR
  CLUB FOR MEN, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Randy L. Pearce

  	
   

  
	
  Name:

  	
  Randy
  L. Pearce

  	
   

  
	
  Title:

  	
  Senior Executive Vice President, Chief Financial and Administrative
  Officer

  	
   

  

 

 

ANNEX 1

 

NOTE AGREEMENTS TO BE PAID

 

Note
Purchase Agreement dated as of March 1, 2002 among the Company and various
purchasers.

 

Note
Purchase Agreement dated as of March 1, 2005 among the Company and various
purchasers.

 

 

ANNEX 2

 

NOTE AGREEMENT TO BE AMENDED

 

Amended
and Restated Private Shelf Agreement dated as October 3, 2000 among the
Company, Prudential Investment Management, Inc., The Prudential Insurance
Company of America, Pruco Life Insurance Company, Pruco Life Insurance Company
of New Jersey and the other “Prudential Affiliates” that pursuant to the terms
thereof have become bound by certain provisions thereof.

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