Document:

Exhibit 4.1

 

AMENDMENT
NO. 1 TO RIGHTS AGREEMENT

 

THIS
AMENDMENT NO. 1 TO THE RIGHTS AGREEMENT (this “Amendment”) is made
as of January 10, 2006 between REGIS CORPORATION,
a Minnesota company (the “Company”), and WELLS FARGO
BANK, N.A. (the “Rights
Agent”), amending the Rights Agreement, dated as of December 23, 1996,
between the Company and the Rights Agent (the “Rights Agreement”).  Capitalized terms used herein without
definition shall have the respective meanings ascribed to such terms in the
Rights Agreement.

 

WHEREAS,
the Board of Directors of the Company has approved an Agreement and Plan of
Merger (the “Merger Agreement”), dated as of January 10, 2006, by
and among Alberto-Culver Company, a Delaware corporation (“Alberto”),
Sally Holdings, Inc., a Delaware corporation and a wholly-owned subsidiary
of Alberto (“Spinco”), the Company, Roger Merger Inc., a Delaware
corporation and a wholly-owned subsidiary of the Company (“Merger Sub”)
and Roger Merger Subco LLC, a Delaware limited liability company and a
wholly-owned subsidiary of the Company (“Subco”), pursuant to
which (i) at the Effective Time (as defined in the Merger Agreement),
Merger Sub will be merged with and into Spinco (the “Merger”), with
Spinco being the surviving corporation, and each issued and outstanding share
of common stock of Spinco not held by Spinco as treasury stock or held by the
Company shall be converted into the right to receive common stock (including
associated Rights) of the Company and (ii) immediately after the Effective
Time, the surviving corporation of the Merger will be merged with and into
Subco, with Subco being the surviving entity;

 

WHEREAS,
in connection with the Merger and in accordance with Section 27 of the
Rights Agreement, the Company desires to amend the Rights Agreement as
hereinafter set forth and has executed and delivered this Amendment immediately
prior to the execution and delivery of the Merger Agreement; and

 

WHEREAS,
the Company has requested that the Rights Agent
execute, and the Rights Agent has agreed to execute, this Amendment.

 

NOW,
THEREFORE, in consideration of the premises and the
mutual agreements herein set forth, the parties hereby agree as follows:

 

AMENDMENT

 

1.                                       Amendment of
the Rights Agreement.

 

1.1                                 Section 1
of the Rights Agreement is hereby amended by adding the following definitions
thereto:

 

“(o)                           “Merger Agreement” shall
mean the Agreement and Plan of Merger, dated as of January 10, 2006, by
and among Alberto-Culver Company, a Delaware corporation (“Alberto”),
Sally Holdings, Inc., a Delaware corporation and a wholly-owned subsidiary
of Alberto (“Spinco”), the Company, Roger Merger Inc., a Delaware
corporation and a wholly-owned subsidiary of the Company, and Roger Merger
Subco LLC, a Delaware limited liability company and a wholly-owned

 

 

subsidiary of the Company, as the same may be
amended in accordance with the terms thereof.

 

(p)                                 “Merger”
has the meaning ascribed to it in the Merger Agreement.

 

(q)                                 “Subsequent
Merger” has the meaning ascribed to it in the Merger Agreement.

 

(r)                                    “Subsidiary”
has the meaning ascribed to it in the Merger Agreement.

 

(s)                                  “Transaction
Agreements” has the meaning ascribed to it in the Merger Agreement.”

 

1.2                                 The
definition of “Acquiring Person” in Section 1(a) of the Rights
Agreement is hereby amended by inserting the following sentence immediately prior
to the last sentence thereof:

 

“Notwithstanding anything to the contrary
contained herein, none of the execution and delivery of the Merger Agreement,
the Transaction Agreements and the consummation of the Merger, the Subsequent
Merger and the other transactions contemplated by the Merger Agreement and the
Transaction Agreements will cause Alberto, Spinco or any of their respective
Affiliates or Associates to be, become or be deemed an Acquiring Person.”

 

1.3                                 The
definition of “Shares Acquisition Date” in Section 1(m) of the Rights
Agreement is hereby amended by inserting the following sentence immediately
after the last sentence thereof:

 

“Notwithstanding
anything to the contrary contained herein, none of the execution and delivery
of the Merger Agreement, the Transaction Agreements and the consummation of the
Merger, the Subsequent Merger and the other transactions contemplated by the
Merger Agreement and the Transaction Agreements will cause a Share Acquisition
Date to occur.”

 

1.4                                 Section 3(a) of
the Rights Agreement is hereby amended by inserting the following after the defined
term “Distribution Date” contained therein:

 

“provided
that, notwithstanding anything to the contrary contained herein, none of the
execution and delivery of the Merger Agreement, the Transaction Agreements and
the consummation of the Merger, the Subsequent Merger and the other
transactions contemplated by the Merger Agreement and the Transaction
Agreements or the public announcement of any of the foregoing will cause a Distribution
Date to occur.”

 

1.5                                 The
term “Agreement” as used in the Rights Agreement shall be deemed to refer to
the Rights Agreement as amended by this Amendment.

 

 

2.                                       Effect of
Amendment.  This Amendment shall be
deemed to be in full force and effect immediately prior to the execution of the
Merger Agreement.  Except as and to the
extent expressly modified by this Amendment, the Rights Agreement and the
exhibits thereto shall remain in full force and effect in all respects.  In the event of a conflict or inconsistency
between this Amendment and the Rights Agreement and the exhibits thereto, the
provisions of this Amendment shall govern.

 

3.                                       Counterparts.  This Amendment may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one and
the same instrument.

 

5.                                       Governing Law.  This Amendment shall be deemed to be a
contract made under the laws of the State of Minnesota and for all purposes
shall be governed by and construed in accordance with the laws of such state
applicable to contracts to be made and performed entirely within such state.

 

 

[Remainder of Page Left
Blank Intentionally]

 

 

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

 

 

	
   

  	
  REGIS
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul D.
  Finkelstein

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Paul D.
  Finkelstein

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Chairman of
  the Board of Directors,

  President and Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, N.A.

  
	
   

  	
  as the
  Rights Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steve
  Hoffman

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Steve
  Hoffman

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Assistant
  Vice President

  	
   

  
							

 

 

[SIGNATURE
PAGE TO AMENDMENT TO THE RIGHTS AGREEMENT]Exhibit 10.1

 

[NITROMED LETTERHEAD]

 

January 6, 2006

 

Manuel Worcel, M.D. 

20 Gloucester Street, Number 4

Boston, MA  02115

 

Dear Manuel:

 

It is my pleasure to extend to you this offer of your continued
employment with NitroMed, Inc. (the “Company”) on a part time basis,
effective as of your resignation as the Chief Medical Officer on January 5,
2006.  On behalf of the Company, I set forth below
the new terms of your employment with the Company:

 

1.             Effective as of January 6,
2006 (the “Effective Date”), your title will change from “Chief Medical Officer”
to “Medical and Scientific Advisor”, and your status will change from full time
employee to part time employee.  As “Medical
and Scientific Advisor”, you will be responsible for supporting various
research, clinical and marketing efforts with the internal NitroMed team as
well as with key external stakeholders, plus such other duties as may from time
to time be assigned to you by the Chief Executive Officer. As “Medical and
Scientific Advisor”, you will report to the Chief Executive Officer, however,
you will no longer serve as a member of the Executive team.  You may however, on occasion be asked to
participate in certain key decision making processes.  As Medical and Scientific Advisor, you shall
continue to be covered by the Company’s mandatory indemnification provisions
and its D&O insurance.

 

2.             As of the Effective
Date, your base salary will be at the rate of $200,000 per year, based upon 2 full time days of service per week and may
be adjusted from time to time in accordance with normal business practices and
in the sole discretion of the Company. 
You will not be eligible for the annual incentive program.

 

3.             On and after the
Effective Date, you may continue to participate in the Company health benefit programs
that the Company establishes and makes available to its employees from time to
time, provided you are eligible under (and subject to all provisions of) the
plan documents governing those programs.

 

4.             You will be
entitled to illness and vacation days consistent with the standard policies of
the Company for part-time employees.

 

5.             In accordance with
the terms of your outstanding option agreements, each of which is listed on Exhibit A
hereto (collectively, the “Awards”), for so long as you continue to be an
employee of the Company on and after the Effective Date your currently
outstanding Awards will continue to vest and become exercisable in accordance
with the terms of each such Award and the applicable stock incentive plan
pursuant to which such Award has been made. 
You may be eligible to receive such future stock options grants as the
Board of Directors of the Company shall from time to time deem appropriate.  In addition, to the extent that the Company
accelerates the vesting of any stock options granted to its executive officers,
it will provide the same acceleration of vesting with respect to the Awards
held by you.

 

 

6.             If your employment
is terminated by the Company without cause, you will be entitled to receive up
to six months continued base salary payments.

 

7.             The Non Competition
and Non Solicitation, Confidentiality and Invention and Nondisclosure
Agreements dated December 3, 1993, July 1, 1993 and December 3,
1993 by and between you and the Company shall remain in full force and effect
on and after the Effective Date.  The
Company acknowledges that you may, while you are employed by the Company and/or
thereafter, consult with, provide services to, be employed by or have an
interest in venture and investment funds making life science investments (each,
a “Venture Fund”).  It shall not be a
breach of the above-referenced agreements if (a) you assign any
Developments (as defined in the above-referenced agreements) or related patent
rights or copyrights to a Venture Fund or any of its portfolio companies so
long as such Developments do not relate to the present or planned business or
research and development of the Company and were not created, made, conceived
or reduced to practice in connection with your service to the Company under
paragraph 2; (b) you make investments in, or serve on the board of
directors of a, portfolio company of a Venture Fund; or (c) any portfolio
companies of a Venture Fund solicit or hire any current or former Company
employees so long as you did not actively participate in such solicitation. 

 

8.             This letter shall
not be construed as an agreement, either express or implied, to employ you for
any stated term, and shall in no way alter the Company’s policy of employment
at will, under which both you and the Company remain free to end the employment
relationship, for any reason, at any time, with or without notice.  Similarly, nothing in this letter shall be
construed as an agreement, either express or implied, to pay you any compensation
or grant you any benefit beyond the end of your employment with the
Company.  Except as specifically set
forth in Sections 5 and 7 above, this letter supersedes all prior
understandings, whether written or oral, relating to the terms of your employment,
including without limitation that certain Offer Letter dated July 29, 1993
by and between the Company and you.

 

If this letter correctly sets forth the terms under which you will
continue to be employed by the Company on and after the Effective Date, please
sign the enclosed duplicate of this letter in the space provided below and
return it to Lisa Kelly, Vice President of Human Resources.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Loberg

  	
   

  
	
   

  	
  Name: Michael Loberg

  
	
   

  	
  Title: President and Chief Executive
  Officer

  

 

The foregoing correctly sets forth the terms of my continued employment
with NitroMed.  I am not relying on any
representations other than as set out above.

 

	
  /s/ Manuel Worcel, M.D.

  	
   

  	
  Date:

  	
  January 6,
  2006

  	
   

  
	
  Name: Manuel Worcel, M.D.

  	
   

  	
   

  

 

 

Exhibit A

 

Outstanding
Stock Option Awards as of January 6, 2006

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated June 19, 1995.

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated April 2, 1997.

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated January 26, 1998.

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated June 16, 1999.

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated June 16, 1999.

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated January 30, 2001.

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated June 17, 2003.

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated December 1, 2003.

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated December 1, 2003.

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated May 18, 2004.

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated May 18, 2004.

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated July 19, 2004.

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated May 16, 2005.

 

Option Agreement by and between
NitroMed, Inc. and Manuel Worcel, M.D., dated May 16, 2005.

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