Document:

ex10_1.htm

TANGIBLE PROPERTY LICENSE AGREEMENT

 

 

This Agreement is entered into by and between the University of Utah Research Foundation, a Utah non-profit corporation having a principal place of business located at 615 Arapeen Drive, Suite 310, Salt Lake City, Utah 84108 (“UURF”), the University of Utah, a body politic and corporate of the State of Utah (“University” and, together with UURF, “Utah”), and Stem Cell Assurances, Inc. (name changed to BioRestorative Therapies, Inc.), a Nevada Corporation having a principal place of business located at 555 Heritage Drive, Suite 130, Jupiter, Florida 33458  (“Licensee”).

 

 

Recitals

 

A.           Utah is the owner of certain Tangible Property (as later defined herein) that was made, created, and/or developed at University.

 

B.           Licensee desires to obtain a license to use Transferred Tangible Property (as later defined herein) for the limited purpose of internal research upon the terms and conditions hereinafter set forth.

 

C.           Utah has determined that such use of the Transferred Tangible Property by Licensee is in the public’s best interest and is consistent with University’s educational and research missions and goals.

 

NOW, THEREFORE, in consideration of the mutual covenants and premises herein contained, the parties agree as follows:

 

 

	
1.  

	
Definitions

 

	
1.1  

	
“Affiliate” means any company or other business entity that, directly or indirectly, controls, or is controlled by, or is under common control by Licensee.  Solely for purposes of this definition, the term “control” means the possession of the power to direct or cause the direction of the management and policies of the entity, whether through ownership of voting securities or by contract.  Control will be presumed if an entity owns, either of record or beneficially, at least fifty percent (50%) of the voting stock of the other entity.  An entity will be deemed an Affiliate only while such ownership or control relationship continues

 

	
1.2  

	
“Effective Date” date means August 16, 2011.

 

	
1.3  

	
“Fair Market Value” means the cash consideration which Licensee or its Affiliate would realize from an unaffiliated, unrelated buyer in an arm’s length sale of an identical item sold in the same quantity, under the same terms, and at the same time and place.

 

	
1.4  

	
 “Licensed Field” means internal research use only NOT for further re-sale, distribution, or any other transfer to third parties.

 

	
1.5  

	
“Term” shall mean that period between the Effective Date and the second (2nd) anniversary of the Effective Date, or termination of the Agreement pursuant to Article 6 hereof, whichever is earlier.  After the Term, Utah shall have no obligation to provide Tangible Property to Licensee, but Licensee’s license to use the Transferred Tangible Property shall continue indefinitely.

 

	
1.6  

	
“Tangible Property” shall mean discarded adipose tissue from surgical operations and as further defined in Exhibit A,.  Tangible Property shall not include any material derived from Transferred Tangible Property.

 

The University of Utah

Licensee:

U#: 5155

Page 1 of 8

  

  

 

	
1.7  

	
“Transferred Tangible Property” shall mean Tangible Property provided to Licensee under the Agreement.  Transferred Tangible Property shall be provided as individual “Samples” (approximately 2”x2” tissue samples).

 

	
1.8  

	
“Purchase Order” shall mean a document issued by Licensee to Utah indicating the number of Samples requested at the price stated in Section 3.  Utah is under no obligation to accept any Purchase Order.

 

 

	
2.  

	
Grant

 

	
2.1  

	
Non-Exclusive License Grant.

Subject to any obligations of Licensor to the U.S. Government with respect to the Tangible Property, Utah hereby grants to Licensee a non-exclusive license to use the Transferred Tangible Property in the Licensed Field.

 

	
2.2  

	
Affiliates.

Licensee may extend the license granted herein to not more than one Affiliate if the Affiliate consents in writing to be bound by this Agreement to the same extent as Licensee.

 

	
2.3  

	
Ownership of Tangible Property.

Utah shall retain ownership of the Tangible Property but not of any material derived from Transferred Tangible Property.

 

	
2.4  

	
Intellectual Property Ownership.

Licensee shall retain all intellectual property developed using the Transferred Tangible Property, including all intellectual property to materials derived from the Transferred Tangible Property, wherein such intellectual property is conceived and/or created (a) by Licensee employees, Licensee personnel, or personnel authorized by Licensee, or (b) by Dr. Amit Patel in his capacity as a member of Licensee’s Scientific Advisory Board pursuant to the Scientific Advisory Board Agreement between Licensee and Dr. Amit Patel dated June 24, 2011 (“SAB Agreement”).

 

Except for Dr. Amit Patel pursuant to 2.4(b), this section shall not apply to any intellectual property developed by Utah, its employees, faculty, staff, and affiliates, including, but not limited to, intellectual property conceived, developed, or created through use of Tangible Property.

 

Utah recognizes Dr. Amit Patel is a member of Licensee’s Scientific Advisory Board AND an employee of Utah and has certain obligations to each organization.  The foregoing notwithstanding, Licensee recognizes that Dr. Amit Patel is an employee of the University of Utah and has certain obligations regarding intellectual property conceived, reduced to practice, authored, developed, or the like, whether patentable or not, for which the University of Utah may claim ownership, pursuant to applicable University of Utah policy.  Unless otherwise indicated, nothing in this Agreement shall be construed as restricting any rights the University of Utah may have in any such intellectual property or restrict or modify any University of Utah policy or procedure.  Further, in performing his obligations for Licensee, Dr. Amit Patel shall not be an agent or employee, or under the sponsorship, auspices, or control of the University of Utah and the University of Utah does not assume any responsibility, express or implied, for the actions or omissions of Dr. Amit Patel in his performance of the obligations for Licensee.

 

	
2.5  

	
Sublicensing; Commercial Use.

Licensee shall not have the right to enter into sublicensing agreements for the Transferred Tangible Property without the prior written consent of UURF, which consent may be withheld for any reason.  Licensee shall not sell, lease, license, distribute, or otherwise transfer the Transferred Tangible Property to any third party, including any Affiliate which is an end-user of the Transferred Tangible Property, except as specified in Section 2.2.

 

The University of Utah

Licensee:

U#: 5155

Page 2 of 8

  

  

	
2.6  

	
No Other Rights Granted.

Nothing in this Agreement shall be construed to confer any rights upon Licensee by implication, estoppel or otherwise as to any technology or patent rights of Utah or any other entity, other than the right to use the Transferred Tangible Property as specified herein.

 

	
2.7  

	
No Limitations on Utah Use.

Nothing in this Agreement shall be construed to limit in any way Utah’s rights in and to the Tangible Property, by implication, estoppel or otherwise.  Without limiting the generality of the foregoing, Utah retains all rights to manufacture, have manufactured, use, practice, license or transfer Tangible Property for any purpose in Utah’s sole discretion.  Additionally, Utah retains rights to publish the general scientific findings from research conducted in whole or in part at the University related to the Tangible Property.

 

 

	
3.  

	
License Fee and Sample Fee’s

 

In consideration of the rights granted by Utah to Licensee under this Agreement, Licensee will pay to UURF a non-refundable license issuance fee of ZERO Dollars ($0) (the “License Fee”), which amount shall be due and payable in full within ten (10) days after the Effective Date.  Licensee agrees to pay $1,500 per Sample, which amount shall be due and payable in full within thirty (30) days after Utah receives and accepts a Purchase Order from Licensee.  The Purchase Order shall indicate the number of Samples desired.  If Licensee purchases ten (10) or more Samples in one Purchase Order, Licensee agrees to pay $1,000 per Sample, which amount shall be due and payable in full within thirty (30) days after Utah receives, and accepts said Purchase Order from Licensee.  Utah shall have no obligation to accept any Purchase Order from Licensee.

 

 

	
4.  

	
Confidentiality

 

	
4.1  

	
Definition of Confidential Information.

For purposes of this Agreement, “Confidential Information” shall mean and include all information identified in writing as confidential or proprietary, or disclosed orally and identified as confidential or proprietary at the time of disclosure (which designation will be confirmed in writing within thirty (30) calendar days following such disclosure), disclosed by one party (the “Disclosing Party”) to the other party hereto (the “Receiving Party”).  For purposes of this Article 4, Confidential Information shall not include information which, (a) at the time of disclosure is generally available to the public or in the public domain; (b) after disclosure becomes generally available to the public or part of the public domain by publication or otherwise, except by breach of this Agreement by Recipient; (c) Recipient can establish by reasonable proof was in its possession at the time of disclosure by the Disclosing Party; (d) Recipient received from a third party that (i) has the right to disclose such information to Recipient and (ii) does not require such information to be maintained confidential; or (e) is required to be disclosed in compliance with applicable law or regulations or by order of a court or other body of competent jurisdiction, provided that Recipient must give the Disclosing Party prompt notice prior to such disclosure.

 

	
4.2  

	
Confidentiality Obligations.

Without the prior written consent of the Disclosing Party, the Receiving Party shall not disclose to any other party the Confidential Information of the Disclosing Party during the Term and for a period of five (5) years after the expiration thereof.  The Receiving Party shall take all reasonable precautions to protect the Confidential Information of the Disclosing Party.  Such precautions shall involve at least the same degree of care and precaution that the Receiving Party customarily uses to protect its own confidential or proprietary information.

 

	
4.3  

	
Applicability of GRAMA to Utah.

Licensee acknowledges that Utah is subject to the Utah Governmental Records Access and Management Act (“GRAMA”), Section 63-2-101 et seq., Utah Code Ann. (1953), as amended.  Utah shall keep confidential Licensee’s Confidential Information to the extent allowable under GRAMA and as provided in Section 53B-16-301 et seq., Utah Code Ann.  In order to be eligible for such protection under GRAMA, Licensee’s Confidential Information disclosed to Utah must be in written or other tangible form, marked as proprietary, and accompanied by a written claim by Licensee stating the reasons that such information must be kept confidential.

 

The University of Utah

Licensee:

U#: 5155

Page 3 of 8

  

  

 

	
5.  

	
Payment

 

All dollar amounts referred to in this Agreement are expressed in United States dollars without deductions for taxes, assessments, fees, or charges of any kind. Payment will reference University of Utah case number U-5155.  All payments to Utah will be made in U.S. dollars by check payable to “The University of Utah Research Foundation” and sent to:

 

University of Utah

c/o Technology Commercialization Office

Attn:  Accounts Receivable

615 Arapeen Drive, Suite 310

Salt Lake City, UT 84108

 

 

	
6.  

	
Term and Termination

 

	
6.1  

	
Termination at End of Term.

This Agreement shall automatically terminate on the expiration of the Term, unless sooner terminated as provided in this Article 6.

 

	
6.2  

	
Termination by Licensee.

Licensee shall have the right to terminate this Agreement at any time upon ninety (90) days prior written notice to Utah.

 

	
6.3  

	
Termination by Utah.

Utah, at its option, may immediately terminate this Agreement, upon delivery of written notice to Licensee of Utah’s election to terminate, if any of the following occur:

 

	
a.  

	
Licensee shall cease to carry on its business; or

 

	
b.  

	
Upon any material breach of this Agreement by Licensee, if Licensee fails to cure the breach within thirty (30) days after receipt of a written notice of the breach.

 

	
6.4  

	
Effect of Termination.

Nothing herein shall be construed to release either party from any obligation that matured prior to the termination of this Agreement.  Articles 4, 8, 9, 10, 11, 13, and 15 shall survive the termination of this Agreement.

 

 

	
7.  

	
Export Compliance

 

Licensee acknowledges that the Arms Export Control Act (AECA), including its implementing International Traffic In Arms Regulations (ITAR,) and the Export Administration Act (EAA), including its Export Administration Regulations (EAR), are some (but not all) of the laws and regulations that comprise the U.S. export laws and regulations. Licensee further acknowledges that the U.S. export laws and regulations include (but are not limited to): (1)  ITAR and EAR product/service/data-specific requirements; (2) ITAR and EAR ultimate destination-specific requirements; (3) ITAR and EAR end user-specific requirements; (4) ITAR and EAR end use-specific requirements; (5) Foreign Corrupt Practices Act; and (6) anti-boycott laws and regulations. Licensee will comply with all applicable export laws and regulations of the U.S. Government (and other applicable U.S. laws and regulations) pertaining to the Transferred Tangible Property (including any associated products, items, articles, computer software, media, services, technical data, and other information). Licensee certifies that it will not, directly or indirectly, export (including any deemed export), nor re-export (including any deemed re-export) the Transferred Tangible Property (including any associated products, items, articles, computer software, media, services, technical data, and other information) in violation of U.S. export laws and regulations or other applicable U.S. laws and regulations.

 

The University of Utah

Licensee:

U#: 5155

Page 4 of 8

  

  

 

	
8.  

	
Disclaimer of any Representations and Warranties

 

EXCEPT AS PROVIDED IN EXHIBIT A, LICENSEE ACKNOWLEDGES AND AGREES THAT UTAH MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE TRANSFERRED TANGIBLE PROPERTY INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT OF ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS OF ANY OTHER PARTY.

 

 

	
9.  

	
Limit of Liability

 

IN NO EVENT WILL UTAH BE LIABLE FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS OR EXPECTED SAVINGS OR OTHER ECONOMIC LOSSES, OR FOR INJURY TO PERSONS OR PROPERTY) ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSFERRED TANGIBLE PROPERTY, REGARDLESS OF WHETHER UTAH KNOWS OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES. UTAH’S AGGREGATE LIABILITY FOR ALL DAMAGES OF ANY KIND RELATING TO THIS AGREEMENT OR ITS SUBJECT MATTER SHALL NOT EXCEED THE AMOUNTS PAID BY LICENSEE TO UTAH UNDER THIS AGREEMENT. THE FOREGOING EXCLUSIONS AND LIMITATIONS WILL APPLY TO ALL CLAIMS AND ACTIONS OF ANY KIND, WHETHER BASED ON CONTRACT, TORT (INCLUDING, WITHOUT LIMITATION, NEGLIGENCE), OR ANY OTHER GROUNDS.

 

 

	
10.  

	
Indemnification

 

Licensee agrees to indemnify, defend and hold harmless Utah, its officers, employees, and agents from and against any losses, claims, demands, or causes of action whatsoever, including without limitation those arising on account of any injury or death of persons or damage to property caused by, arising out of, or resulting from, the exercise or practice of the license granted hereunder, or other use of the Transferred Tangible Property, by Licensee, any Affiliate, or their respective officers, employees, agents, or other representatives.

 

 

	
11.  

	
Assignment

 

Neither this Agreement nor any right or obligation of Licensee or any Affiliate may be assigned, pledged or encumbered by Licensee or such Affiliate, whether voluntarily or involuntarily, by operation of law or otherwise, without the prior written consent of Utah, which consent may be withheld for any reason.

 

The University of Utah

Licensee:

U#: 5155

Page 5 of 8

  

  

 

	
12.  

	
Use of Name

 

Licensee shall not use the names or trademarks of Utah, nor any adaptation thereof, nor the names of any of its employees, in any advertising, promotional or sales literature without prior written consent obtained from Utah, in each case.

 

 

	
13.  

	
Notices

 

Any notice or other communication of the parties required or permitted to be given or made under this Agreement will be in writing and be deemed effective when sent to the address set forth below by certified or registered mail, postage prepaid, return receipt requested or by internationally recognized overnight courier. Notices required under this Agreement may not be delivered via e-mail.

 

In the case of Utah to:

 

University of Utah

c/o Technology Commercialization Office

Attn: James Thompson

615 Arapeen Drive, Suite 310

Salt Lake City, UT 84108

Phone: 801-213-3564

Fax: 801-581-7538

E-mail:   james.thompson@tco.utah.edu

 

or in the case of Licensee to:

 

Stem Cell Assurance

Attn: Francisco Silva

555 Heritage Drive, Suite 130

Jupiter, Florida 33458

Phone: (561) 904-6070

Fax: (561) 429-5684

E-mail: fj74582@gmail.com

 

	
14.  

	
General Provisions

 

	
14.1  

	
Binding Effect

This Agreement is binding upon the parties hereto, their respective executors, administrators, heirs, successors and permitted assigns.

 

	
14.2  

	
Construction of Agreement

Headings are included for convenience only and will not be used to construe this Agreement. The parties acknowledge and agree that both parties participated in negotiating the provisions of this Agreement; therefore, both parties agree that this Agreement shall not be construed more favorably toward one party than the other party, regardless of which party primarily drafted the Agreement.

 

	
14.3  

	
Enforcement

In the event either party commences any proceeding against the other party with respect to this Agreement, the prevailing party (as determined by the authority before whom such proceeding is commenced) will be entitled to recover reasonable attorneys’ fees and costs as may be incurred in connection therewith in addition to any such other relief as may be granted.

 

The University of Utah

Licensee:

U#: 5155

Page 6 of 8

  

  

	
14.4  

	
Compliance with Laws

Licensee will comply with all applicable federal, state and local laws and regulations, including, without limitation, all export laws and regulations.

 

	
14.5  

	
Governing Law

This Agreement shall be interpreted and construed in accordance with the laws of the State of Utah, without application of any choice of law principles.

 

	
14.6  

	
Modification

Any modification of or amendment to this Agreement will be effective only if it is in writing and signed by duly authorized representatives of all parties hereto.

 

	
14.7  

	
Severability

If any part of this Agreement is for any reason found to be unenforceable, invalid, or void, all other parts will remain enforceable.

 

	
14.8  

	
Third Party Beneficiaries

Nothing in this Agreement, express or implied, is intended to confer any benefits, rights or remedies on any entity, other than the parties and their successors and permitted assigns.

 

	
14.9  

	
Waiver

Neither party will be deemed to have waived any of its rights under this Agreement unless the waiver is in writing and signed by such party.

 

	
14.10  

	
Entire Agreement

This Agreement constitutes the entire Agreement between the parties regarding the subject matter hereof, and supersedes all prior written or verbal agreements, representations and understandings relative to such matters.

 

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this Agreement.

 

	
University of Utah, a body politic and corporate of the State of Utah

 

 

 

/s/ Thomas Parks

Name: Thomas N. Parks

Title: Vice Pres. for Research

Date: 8/22/11

	
BioRestorative Therapies, a Nevada Corporation

 

 

 

/s/ Mark Weinreb

Name: Mark Weinreb

Title: CEO

Date: 8/16/11                                              

	
University of Utah Research Foundation, a Utah non-profit corporation

 

 

 

 
/s/ Thomas Parks

Name: Thomas N. Parks

Title: President

Date: 8/22/11          

	  

 

The University of Utah

Licensee:

U#: 5155

Page 7 of 8

  

  

“Exhibit A”

 

 

 

Tangible Property:

 

Discarded adipose tissue from surgical operations (approximately a 2”x2” tissue section).  Transferred Tangible Property upon delivery must not be known to be Contaminated which would render such Transferred Tangible Property unusable for research and development, in addition Licensee will not accept any  Transferred Tangible Property that is known to be Contaminated with any human pathogens (“Contamination” shall be defined as possessing human or other pathogens rendering Transferred Tangible Property unusable for research and development).  If it is found that Transferred Tangible Property is Contaminated, Licensee is entitled to receive replacement Transferred Tangible Property at no cost.  Licensee must notify Utah within 5 working days of receipt if Transferred Tangible Property is Contaminated.  If Transferred Tangible Property is deemed to be Contaminated Utah, at its discretion, may test and/or review Licensee’s data on said Transferred Tangible Property.  If Utah’s testing shows Transferred Tangible Property is NOT Contaminated and upon written consent of Licensee and Utah, a third party (agreed upon by both Licensee and Utah) will be contracted to test Transferred Tangible Property for Contamination.  If the third party testing confirms Transferred Tangible Property is Contaminated Utah shall pay the direct costs associated with the third party testing and will replace Transferred Tangible Property at no cost to Licensee however Utah’s liability to Licensee is limited only to replacement of Transferred Tangible Property.  If the third party testing shows Transferred Tangible Property is NOT Contaminated Utah shall not be obligated to provide additional Transferred Tangible Property at no cost and Licensee shall pay the direct costs associated with the third party testing of the Transferred Tangible Property in question.

 

 

The University of Utah

Licensee:

U#: 5155

Page 8 of 8Exhibit 10(bb)

 

SEPARATION AND NON-DISPARAGEMENT AGREEMENT AND GENERAL RELEASE

 

	
TO:
    	
Bruce   Johnson
    	
 
    
	
 
    	
 
    	
 
    
	
FROM:
    	
Regis   Corporation
    	
VIA EXPRESS COURIER
    
	
 
    	
 
    	
 
    
	
DATE:
    	
 
    	
 
    

 

Please read this document carefully.  You are giving up certain legal claims that you might have against Regis Corporation by signing this agreement.  You are advised to consult an attorney before signing this agreement.

 

This agreement sets out the terms of your separation from Regis Corporation (“Regis”).  Under the agreement, Regis will provide you with extra benefits in exchange for your agreement to waive and release certain past or present legal claims you may have against Regis.

 

TERMS OF AGREEMENT

 

1.                                       Termination.  Your employment is terminated effective July 1, 2011.

 

2.                                       Compensation and Benefits.  This agreement terminates the Employer/Employee relationship between you and Regis and closes out past or present claims as set forth in this agreement that you might have against Regis arising from that relationship.  In return for your release of claims, the agreement provides you with benefits to which you otherwise would not be entitled.  Accordingly, you and Regis agree as follows:

 

a.                                       Whether or not you sign this agreement, Regis will pay you:

 

1)                                      All compensation you have earned through and including the last day of your employment;

 

2)                                      Any accrued but unused PTO benefit; and

 

3)                                      Vested profit sharing and deferred compensation benefits in accordance with the terms and conditions of those plans.  Payment shall be made in  a lump sum in January 2012 in accordance with previously made distribution elections.

 

By signing this agreement, you agree that you have already been paid all of those sums set forth in paragraphs 2.a.1) and 2.a.2).

 

b.                                      In exchange for the General Release set forth below, Regis agrees to provide:

 

1)                                      Severance compensation in the gross amount of Three Hundred Seventy-Three Thousand Five Hundred and 00/100 Dollars ($373,500.00) (which is equivalent to 12-months of base pay), less statutory payroll deductions and other legally required withholdings.  Payment shall be made in a single lump sum following receipt of the signed agreement and following the expiration of the rescission periods referred to in paragraphs 13 and 14.

 

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2)                                      Any officer bonus earned in FY11.  Payment shall be made at the same time bonus payments are customarily made to officers.  Payment shall be subject to all statutory payroll deductions and other legally required withholdings.

 

3)                                      A single payment, less statutory payroll deductions and other legally required withholdings, representing the unused balance of Employee’s Officer perquisites account for 2010-2011.  This benefit is taxable and will be grossed up for the related taxes.  Payment shall be made following receipt of the signed agreement and following the expiration of the rescission periods set forth in paragraphs 13 and 14.

 

4)                                      Regis will continue payments of employee’s automobile lease and automobile insurance through November 1, 2011, the end of the lease term.  This benefit is taxable and will be grossed up for the related taxes.

 

5)                                      Employee will continue to receive medical and dental insurance benefits from Employer to the same extent as other Executive Vice Presidents of the company receive such insurance, until June 30, 2012, at which time all such benefits shall terminate.  In addition, Employee’s participation in Employer’s executive medical reimbursement plan, wherein participants are reimbursed for qualified out of pocket medical expenses not to exceed $7,000.00 in total in any given calendar year, will continue until June 30, 2012.  Employer will gross up this benefit to Employee for Employee’s estimated taxes on this benefit.

 

c.                                       All of the payments listed in 2.b.1) through 2.b.5) which are made to or on behalf of the employee shall be made following:

 

1)                                      Receipt by Regis of the signed agreements; and

 

2)                                      Expiration of the rescission periods referred to in paragraphs 13 and 14.

 

The payments set forth in paragraphs 2.b.1) and 2.b.3) shall be made in a single lump sum payment within ten (10) business days following satisfaction of the conditions set-forth in paragraphs 2.c.1) and 2.c.2).  The payment set forth in paragraph 2.b.2), if any, shall be made in a single lump sum in August 2011 and following satisfaction of the conditions set forth in paragraphs 2.c.1) and 2.c.2).  The payments set forth in paragraph 2.b.5) should be made following satisfaction of the conditions set forth in paragraph 2.c.1) and 2.c.2).

 

3.                                       Whole Life Insurance Policy.  The existing whole life insurance policy in the face amount of $2.5 million dollars is fully paid.

 

4.                                       Stock Appreciation Rights.  All vested stock appreciation rights have a strike price that is under water.  Accordingly, rights to this stock will be extinguished as of the date of termination.

 

5.                                       Unvested Restricted Stock Grants.  Employer will provide no accelerated vesting for unvested restricted stock grants.

 

6.                                       Non-Compete Agreement.  Employee expressly agrees, as a condition to the performance by Regis of its obligations hereunder, that for a period of 24-months following employee’s separation from service with Regis and its affiliates, he will not, directly or indirectly, own any interest in, render any services of any nature to, become employed by, or participate or engage in the licensed beauty salon business, except with the prior written consent of Regis.

 

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7.                                       Full Compensation. The payments that will be made to Employee for his benefit pursuant to this Separation Agreement will compensate him for and extinguish any and all of his claims arising out of his employment with Employer or his employment termination, including but not limited to his claims for attorney’s fees and costs, and any and all of his claims for any type of legal or equitable relief.  These payments are in excess of any sums to which Employee is entitled absent this Separation Agreement.

 

8.                                       Benefits. The Employee is a participant in various employee benefit plans sponsored by Employer. Except as otherwise provided for herein, the payment of benefits, including the amounts and timing thereof, will be governed by the terms of the employee benefit plans.  Employer will answer any reasonable questions that Employee may have from time to time and will offer him the same assistance given other participants in employee benefit plans so long as he is entitled to benefits thereunder.

 

9.                                       General Release.  In exchange for the benefits promised you in this agreement, you agree to irrevocably and unconditionally release and discharge Regis, its predecessors, successors, and assigns, as well as past and present officers, directors, employees, and agents, from any and all claims, liabilities, or promises, whether known or unknown, arising out of or relating to your employment with Regis through the date you sign this agreement.  You waive these claims on behalf of yourself and your heirs, assigns, and anyone making a claim through you.  The claims waived and discharged include, but are not limited to:

 

a.                                       Employment discrimination claims (including claims for harassment) and retaliation claims under Title VII of the Civil Rights Act of 1964 or other similar laws;

 

b.                                      Age discrimination claims under the Age Discrimination in Employment Act or similar discrimination act under any unit of federal, state, or local government;

 

c.                                       Any claim under the Minnesota Human Rights Act or similar discrimination act under any unit of federal, state, or local government;

 

d.                                      Any claim for whistleblowing, public policy, retaliation, or other similar law;

 

e.                                       Wrongful discharge and/or breach of contract claims;

 

f.                                         Tort claims, including but not limited to invasion of privacy, defamation, negligence of any kind, fraud, and infliction of emotional distress; and

 

g.                                      Any other statutory (including federal, any state, local, or other unit of government), common law, contract, or tort claims concerning your employment with Regis, including but not limited to claims under the Equal Pay Act, the Family and Medical Leave Act, the Americans with Disabilities Act, the Civil Rights Act of 1991, the Sarbanes Oxley Act, and 42 U.S.C. §§ 1981, 1983, or 1985, to the full extent such claims can be waived.

 

This release does not include claims that cannot, by law, be waived, such as unemployment compensation.

 

10.                                 Confidentiality and Non-Disparagement.  To the fullest extent permitted by law, you will not, directly or indirectly, disclose the terms of this agreement 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 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.

 

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

 

12.                                 Return of Corporate Property.  By signing below, you represent and warrant that all Regis property has been returned to Regis, and that you have not retained any copies, electronic or otherwise, of any Regis property.  Notwithstanding this paragraph of this agreement, you may keep documents pertaining to your compensation and/or benefits.

 

13.                                 Compliance with the Age Discrimination in Employment Act (“ADEA”) and Notice of Right to Consider and Rescind Agreement. You understand that this Agreement has 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 is 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;

 

d.                                      You are receiving valuable consideration in exchange for execution of this agreement 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

 

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

 

14.                                 Compliance with the Minnesota Human Rights Act and Notice of Right to Consider and Rescind Agreement.  Regis hereby advises Employee to consult with an attorney of his/her choice before signing this agreement releasing any rights or claims that he/she believes he/she may have under the Minnesota Human Rights Act (MHRA).  Once this Separation Agreement is executed, Employee may rescind this Separation Agreement within fifteen (15) calendar days to reinstate any claims under the MHRA.  To be effective, any rescission within the relevant time period must be in writing and delivered to Employer, in care of Ms. Katherine M. Merrill, 7201 Metro Boulevard, Minneapolis, MN 55439 by hand or by mail within the fifteen (15) day period.  If delivered by mail, the rescission must be (1) postmarked within the fifteen (15) day period; (2) properly addressed to Employer; and (3) sent by certified mail, return receipt requested.

 

15.                                 No Unlawful Restriction.  You understand that nothing in this agreement is intended to or shall: (a) impose any condition, penalty, or other limitation affecting your right to challenge this agreement; (b) constitute an unlawful release of any of your rights; or (c) prevent or interfere with your 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.

 

16.                                 Severability.  The provisions of this agreement are severable.  If any provision (excluding the General Release above) is held to be invalid or unenforceable, it shall not affect the validity or enforceability of any other provision.

 

17.                                 Entire Agreement and Merger.  Except to the extent that you have an arbitration agreement with Regis, this agreement sets out the entire agreement between you and Regis and supersedes any and all prior oral or written agreements or understandings between you and Regis concerning your termination of employment.  Any arbitration agreement that you have with Regis will continue in full force and effect.  Employee agrees that any and all claims which he might

 

4

 

have had against Regis are fully released and discharged by this agreement and that the only claims which he may hereafter assert against Regis will be derived only from an alleged breach of the terms of the agreement or of any employee benefit plan of which he is a participant.

 

18.                                 Employee Representations.  You represent that you:

 

a.                                       you have the right and we have encouraged you to review all aspects of this agreement 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

 

d.                                      are freely, knowingly, and voluntarily entering into this Separation and Non-Disparagement Agreement and General Release.

 

19.                                 Effective Date of Agreement.  This agreement will become effective on the sixteenth day after you sign it, provided that you have not rescinded the agreement.

 

20.                                 Valid Agreement.  As stated above, you agree that this agreement and its releases fully comply with the ADEA.  You also agree that this agreement and its releases fully comply with the Minnesota Human Rights Act, and all other laws, statutes, ordinances, regulations, and/or principles of common law governing releases.

 

21.                                 No Admission of Liability.  Regis denies any and all liability to you.  You understand and agree that this agreement is 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.

 

22.                                 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.

 

23.                                 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.

 

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IN WITNESS WHEREOF, the parties hereto have executed this Separation and Non-Disparagement Agreement and General Release as of the day and year first above written.

 

 

	
Dated:
    	
July 7,   2011
    	
 
    	
/s/   BRUCE JOHNSON
    
	
 
    	
 
    	
 
    	
Employee   (print name):
    	
Bruce   Johnson
    
	
 
    	
 
    	
 
    	
Bruce   Johnson
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
REGIS   CORPORATION:
    
	
 
    	
 
    	
 
    	
 
    
	
Dated:
    	
July 14,   2011
    	
 
    	
By:
    	
/s/   ERIC BAKKEN
    
	
 
    	
 
    	
 
    	
 
    	
Eric   Bakken
    
	
 
    	
 
    	
 
    	
Its:
    	
Executive   Vice President, General Counsel and
    
	
 
    	
 
    	
 
    	
 
    	
Salon   Development
    
						

 

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