Document:

Exhibit
10.4

 

Execution
Copy

 

July 3, 2009

 

Regis Corporation

7201 Metro Boulevard

Minneapolis, Minnesota 55439

 

Re:
Amendment No. 6 to Amended and Restated Private Shelf Agreement

 

Ladies and Gentlemen:

 

We refer to the Amended and
Restated Private Shelf Agreement dated as October 3, 2000, as amended by
the letter amendment dated as of May 9, 2002, Letter Amendment No. 2
to Amended and Restated Private Shelf Agreement dated as of February 28,
2003, the letter amendment dated April 29, 2005, the letter amendment
dated July 6, 2006 and the letter amendment dated July 31, 2007 (as
so amended, the “Shelf Agreement”), between Regis
Corporation, a Minnesota corporation (the “Company”), on
the one hand, and Prudential Investment Management, Inc. (“PIM”), The Prudential Insurance Company of America, Pruco
Life Insurance Company, Pruco Life Insurance Company of New Jersey and the
other “Prudential Affiliates” which pursuant to the terms thereof have become
bound by certain provisions thereof, on the other hand.  Unless otherwise defined herein, the terms
defined in the Shelf Agreement shall be used herein as therein defined.

 

Pursuant to the request of
the Company and in accordance with the provisions of paragraph 11C of the Shelf
Agreement, the parties hereto agree as follows:

 

SECTION 1.   Amendment.  From and after the Effective
Date, the Shelf Agreement and the Notes are amended as follows:

 

1.1.                              Each reference
in the form of Note for each Series of Notes set forth in the table below
and in each of the outstanding Notes of such Series is amended to change
the interest rate set forth opposite such Series in the table below under
the heading “Existing Interest Rate” to the interest rate set forth opposite
such Series under the heading “New Interest Rate”:

 

	
  Series of Notes

  	
   

  	
  Existing Interest Rate

  	
   

  	
  New Interest Rate

  	
   

  
	
  Series J Notes

  	
   

  	
  4.69

  	
  %

  	
  5.69

  	
  %

  
	
  Series L Notes

  	
   

  	
  4.65

  	
  %

  	
  5.65

  	
  %

  
	
  Series M Notes

  	
   

  	
  4.86

  	
  %

  	
  5.86

  	
  %

  
	
  Series N Notes

  	
   

  	
  6.01

  	
  %

  	
  7.01

  	
  %

  
	
  Series O Notes

  	
   

  	
  6.05

  	
  %

  	
  7.50

  	
  %

  
	
  Series P Notes

  	
   

  	
  6.05

  	
  %

  	
  7.50

  	
  %

  

 

 

1.2.                              A new paragraph
2I is added to the Shelf Agreement as follows:

 

“2I.                           RBC Fee.  On and after the date that is one year after
the Amendment No. 6 Effective Date, in addition to the interest accruing
on the Notes, the Company agrees to pay to each holder of a Note a fee (the “RBC Fee”) on the daily average outstanding principal amount
of such Note at a rate per annum equal to 1.00%; provided however that no RBC
Fee shall accrue during any period when an RBC Reduction Event has occurred and
is continuing.  The RBC Fee with respect
to each Note shall be calculated on the same basis as interest on such Note is
calculated and shall be paid in arrears on each day upon which interest is due
on such Note.  The payment of any RBC Fee
shall not constitute a waiver of any Default or Event of Default.”

 

1.3.                              Subparagraph (b) of
paragraph 6A(1) of the Shelf Agreement is amended by deleting the
reference to “1.50” appearing therein and substituting therefor a reference to “1.30”.

 

1.4.                              Paragraph 6B of the Shelf Agreement is
hereby amended and restated in its entirety as follows:

 

“6B.                         Minimum Net Worth.

 

(a)  The
Company shall not, as of June 30, 2009, permit its 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 its 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 comprehensive income (other than reductions
related to pensions, post-retirement benefits and similar retirement
adjustments).  As used
herein, the term “Net Worth” means the shareholder’s equity of the Company as
determined in accordance with generally accepted accounting principals
consistently applied.”

 

2

 

1.5.                              Clause (iv) of
paragraph 6C(1) of the Shelf Agreement is hereby amended and restated in
its entirety as follows:

 

“(iv) Liens securing Indebtedness not otherwise permitted by
clauses (i)-(iii) above, provided that (a) Priority Debt does
not at any time exceed 20% of Net Worth determined as of the end of the most
recently ended fiscal quarter; and (b) the aggregate amount of
Indebtedness secured by Liens pursuant to this clause (iv) shall not
exceed two percent (2%) of Net Worth determined as of the end of the most
recently ended fiscal quarter; and provided, further, that such
Liens may not secure the Credit Agreement, the Term Loan Agreement or other
Indebtedness (excluding Capital Lease Obligations) to a bank, insurance company
or other financial institution in excess of $10,000,000.”

 

1.6.                              A new paragraph
6F is added to the Shelf Agreement as follows:

 

“6F.                          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:

 

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

 

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

 

(iii)                               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 (iii) 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.”

 

1.7.                              Clause (i) of
paragraph 7A of the Note Agreement is amended and restated in its entirety as
follows:

 

“(i)                               a Company
defaults in the payment of any principal of, or Yield- Maintenance Amount
payable with respect to, any Note, or any RBC Fee when the same shall become
due, either by the terms thereof or otherwise as herein provided;”

 

1.8.                              The definition
of “Remaining Scheduled Payments” in paragraph 10A of the Note Agreement is amended
in its entirety to read as follows:

 

“Remaining Scheduled Payments” shall
mean, with respect to the Called Principal of any Note, all payments of such
Called Principal and interest thereon that 

 

3

 

would be due on or after the Settlement Date
with respect to such Called Principal if no payment of such Called Principal
were made prior to its scheduled due date; provided that, for the purposes of
calculating “Remaining Schedule Payments”, the interest rate born by any Series of
Notes shall be determined without giving effect to the increase in such
interest rates pursuant to Section 1.1 of Amendment No. 6.

 

1.9.                              Paragraph 10B
is amended by adding, or amending and restating, as applicable, the following
definitions:

 

“Amendment No. 6” shall mean Amendment No. 6
to this Agreement, dated as of July 3, 2009.

 

“Amendment No. 6 Effective Date” shall mean the “Effective
Date”, as defined in Section 2 of Amendment No. 6.

 

“Designated Charges” means the first $6,000,000
of non-recurring cash charges taken by the Company 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, or as otherwise approved by the Required Holders.

 

“EBITDA” means, for any period, for the Company and its
Subsidiaries on a consolidated basis, determined in accordance with generally
accepted accounting principles, 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 Company 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 Required
Holders; 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 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 

 

4

 

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
Company), and (b) Rental Expense paid or accrued in such period.

 

“RBC Reduction Event” shall mean The Securities
Valuation Office of the National Association of Securities Commissioners
(together with any successor organization acceding to the authority thereof,
hereinafter, the “SVO”) has reduced the amount of capital required to be held
in reserve by a holder of the Notes in respect of such Notes from that which
was required as of the Amendment No. 6 Effective Date; provided that the
RBC Reduction Event shall cease if the amount of capital required to be held in
reserve by a holder of the Notes in respect of such Notes as required by the
SVO is subsequently increased to a level at or above that which was required as
of the Amendment No. 6 Effective Date.

 

“RBC Fee” shall have the meaning
given in paragraph 2I.

 

“Term Loan Agreement” shall mean that certain
Term Loan Agreement dated as of October 3, 2008 among the Company, various
financial institutions, JPMorgan Chase Bank, N.A., as Administrative Agent, and
the other agents named therein, as amended, supplemented or modified from time
to time in accordance with the terms thereof.

 

1.10.                        Paragraph 10C
of the Shelf Agreement is amended by adding the following to the end thereof:

 

“Notwithstanding the foregoing or any other
provision of this Agreement providing for any amount to be determined in
accordance with generally accepted accounting principles, for all purposes of
this Agreement the outstanding principal amount of any Indebtedness of the
Company, any Guarantor or any of their Subsidiaries shall be equal to the
actual outstanding principal amount thereof irrespective of the amount that
might otherwise be accounted for under generally accepted accounting principles
as the amount of the liability of the Company, any Guarantor or any Subsidiary
with respect thereto, and any determination of the net income (or net loss),
equity or assets of the Company, any Guarantor or any Subsidiary shall not take
into account any effect of marking any such outstanding Indebtedness of the
Company, any Guarantor or any Subsidiary to market value.”

 

SECTION 2.   Conditions Precedent.  This letter shall become
effective as of the date (which shall be on or before August 15, 2009)
(the “Effective Date”) when the
following conditions have been satisfied:

 

2.1.                              Documents.  PIM and each holder of the Notes party hereto
shall have received:

 

5

 

(a)          an original counterpart hereof duly
executed by the Company, the Guarantors and the Required Holder(s) of the
Notes of each Series;

 

(b)           a copy of amendments to the Credit Agreement and the Term
Loan Agreement, each consistent with the amendments set forth herein and
otherwise in form and substance satisfactory to the Required Holder(s) of
the Notes of each Series, executed by the requisite lenders thereunder, and
each such amendment shall be in full force and effect;

 

(c)           evidence
that the Company has received proceeds from the issuance (after June 26,
2009) of not less than $250,000,000 of common stock of the Company 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;

 

(d)           a
copy of a termination of the Intercreditor Agreement, in form and substance
satisfactory to the holders of the Notes, executed by each of the parties
thereto, and such termination shall be in full force and effect; and

 

(e)           Evidence
that the Company has paid all of its obligations under the Note Agreements
listed on Annex 1 attached hereto.

 

The
foregoing documentation should be returned to Prudential Capital Group, Two
Prudential Plaza, Suite 5600, Chicago, Illinois, 60601-6716, Attention:
Wiley S. Adams.

 

2.2.          Amendment Fee; Other Fees.  The Company shall have paid an amendment fee
for each holder of the Notes equal to the product of 0.125% multiplied by
the outstanding principal amount of the Notes held by such holder as of the
Effective Date.  The Company shall also
have paid all invoiced fees and expenses of the
holders of the Notes (including reasonable attorneys’ fees and expenses).

 

2.3.          Representations and Warranties; No Default.  To induce the holders of the Notes to execute
and deliver this letter, the Company represents, warrants and covenants that (1) the
representations and warranties contained in paragraph 8 of the Shelf Agreement
shall be true on and as of the Effective Date, immediately before and after
giving effect to the consummation of the transactions contemplated hereby, (2) the
Shelf Agreement, as amended hereby, is the legal, valid and binding obligation
of the Company, enforceable against the Company in accordance with its terms
except as enforceability thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by the availability of the
remedy of specific performance, (3) the Subsidiaries of the Company party
to this letter represent all of the Subsidiaries of the Company that have
joined the Guaranty Agreement (as defined in Section 4 below), (4) the
Company has not paid or agreed to pay, and the Company will not pay or agree to
pay, any fees or other consideration for or with respect to any amendment
described in Section 2.1(b) other than fees to the lenders under the
Credit Agreement and the Term Loan Agreement to the extent expressly set forth
in the respective amendments thereto, and (5) there shall exist on the
Effective Date no Event of Default or Default, immediately before and after
giving effect to the consummation of the transactions contemplated hereby.

 

6

 

2.4.          Proceedings.    All corporate and other proceedings taken or
to be taken in connection with the transactions contemplated hereby and all
documents incident thereto shall be satisfactory in substance and form to the
Required Holder(s) of each Series, and each holder of the Notes party
hereto shall have received all such counterpart originals or certified or other
copies of such documents as it may reasonably request.

 

SECTION 3.   Amended
and Restated Notes.  The
Company hereby agrees that it shall, promptly after the Effective Date, execute
a deliver amended and restated Notes, in form and substance satisfactory to the
holders of the Notes, evidencing the amendments to the Notes made pursuant
hereto.

 

SECTION 4.   Reference
to and Effect on Shelf Agreement and Notes. 
Upon the effectiveness of this letter, each reference to the Shelf
Agreement and the Notes in any other document, instrument or agreement shall
mean and be a reference to the Shelf Agreement or the Notes, as applicable, as
modified by this letter.  Except as
specifically set forth in Section 1 hereof, the Shelf Agreement and the
Notes shall remain in full force and effect and is hereby ratified and
confirmed in all respects.  Except as
specifically stated in this letter, the execution, delivery and effectiveness
of this letter shall not (a) amend the Shelf Agreement or any Note, (b) operate
as a waiver of any right, power or remedy of PIM or any holder of the Notes, or
(c) constitute a waiver of, or consent to any departure from, any
provision of the Shelf Agreement or any Note at any time.  The Company acknowledges and agrees that
neither PIM nor any holder of any Note is under any duty or obligation of any
kind or nature whatsoever to grant the Company any additional amendments or
waivers of any type, whether under the same or different circumstances, and no
course of dealing or course of performance shall be deemed to have occurred as
a result of the amendments and wavier herein.

 

For
the avoidance of doubt, the Company and the holders of the Notes confirm that
compliance with the covenants set forth paragraphs 6A(1), 6A(2) and 6B of
the Shelf Agreement for the fiscal quarter ended June 30, 2009 shall be
determined under the terms of the Shelf Agreement prior to giving effect to
this letter.

 

SECTION 5.   Reaffirmation.  Each Guarantor (as defined in the Amended and
Restated Subsidiary Guaranty dated February 23, 2003 (the “Guaranty Agreement”) by certain Subsidiaries of the Company
in favor of the holders of the Notes) hereby ratifies and reaffirms all of its
payment and performance obligations, contingent or otherwise, under the
Guaranty Agreement. Each Guarantor hereby consents to the terms and conditions
of this letter and reaffirms its obligations and liabilities under or with
respect to the Shelf Agreement and the Notes, each as amended by this letter
(including, without limitation, any additional Guaranteed Obligations (as
defined in the Guaranty Agreement) resulting from this letter), and the
Guaranty Agreement.  Each Guarantor
acknowledges that the Guaranty Agreement remains in full force and effect and
is hereby ratified and confirmed. 
Without limiting the generality of the foregoing, each Guarantor agrees
and confirms that the Guaranty Agreement continues to guaranty the Guaranteed
Obligations arising under or in connection with the Shelf Agreement and the
Notes, each as amended by this letter. 
The execution of this letter shall not operate as a novation, waiver of
any right, power or remedy of the holders of the Notes under the Guaranty
Agreement.

 

7

 

SECTION 6.   Expenses.  The Company hereby confirms its obligations
under the Shelf Agreement, whether or not the transactions hereby contemplated
are consummated, to pay, promptly after request by any holder of the Notes, all
reasonable out-of-pocket costs and expenses, including attorneys’ fees and
expenses, incurred by any holder of the Notes in connection with this letter or
the transactions contemplated hereby, in enforcing any rights under this
letter, or in responding to any subpoena or other legal process or informal
investigative demand issued in connection with this letter or the transactions
contemplated hereby.  The obligations of
the Company under this Section 5 shall survive transfer by any holder of
the Notes of any Note and payment of any Note.

 

SECTION 7.   Governing
Law.  THIS LETTER SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE
GOVERNED BY, THE LAW OF THE STATE OF ILLINOIS (EXCLUDING ANY CONFLICTS OF LAW
RULES WHICH WOULD OTHERWISE CAUSE THIS AGREEMENT TO BE CONSTRUED OR ENFORCED IN
ACCORDANCE WITH, OR THE RIGHTS OF THE PARTIES TO BE GOVERNED BY, THE LAWS OF
ANY OTHER JURISDICTION).

 

SECTION 8.   Counterparts,
Section Titles.  This letter may
be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed to be an original and all of which when taken together shall constitute
but one and the same instrument. 
Delivery of an executed counterpart of a signature page to this
letter by facsimile or electronic transmission shall be effective as delivery
of a manually executed counterpart of this letter.  The section titles contained in this letter
are and shall be without substance, meaning or content of any kind whatsoever
and are not a part of the agreement between the parties hereto.

 

[signature pages follow]

 

8

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PRUDENTIAL
  INVESTMENT MANAGEMENT, INC.

  
	
   

  	
  THE PRUDENTIAL INSURANCE
  COMPANY OF AMERICA

  
	
   

  	
  PRUCO
  LIFE INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David Quackenbush

  
	
   

  	
   

  	
      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:

  	
  /s/
  David Quackenbush

  
	
   

  	
   

  	
      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:

  	
  /s/
  David Quackenbush

  
	
   

  	
   

  	
      Vice
  President

  
								

 

[Signature
Page to Amendment No. 6 to Amended and Restated Private Shelf Agreement]

 

9

 

	
   

  	
  GIBRALTAR
  LIFE INSURANCE CO., LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Prudential
  Investment Management (Japan),

  
	
   

  	
   

  	
  Inc.,
  as Investment Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Prudential
  Investment Management, Inc.,

  
	
   

  	
   

  	
  as
  Sub-Adviser

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  David Quackenbush

  
	
   

  	
   

  	
      Vice
  President

  

 

[Signature
Page to Amendment No. 6 to Amended and Restated Private Shelf Agreement]

 

10

 

	
  Agreed
  as of the date first above written:

  
	
   

  
	
  REGIS CORPORATION

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Randy L. Pearce

  	
   

  
	
  Name:

  	
  Randy L. Pearce

  	
   

  
	
  Title:

  	
  Senior Executive Vice President, Chief Financial and Administrative
  Officer

  	
   

  
	
   

  
	
  REGIS INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Randy L. Pearce

  	
   

  
	
  Name:

  	
  Randy L. Pearce

  	
   

  
	
  Title:

  	
  Senior Executive Vice President, Chief Financial and Administrative
  Officer

  	
   

  
	
   

  
	
  HAIR CLUB FOR MEN, LLC

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Randy L. Pearce

  	
   

  
	
  Name:

  	
  Randy L. Pearce

  	
   

  
	
  Title:

  	
  Senior Executive Vice President, Chief Financial and Administrative
  Officer

  	
   

  
	
   

  
	
  SUPERCUTS CORPORATE SHOPS, INC.

  
	
   

  
	
  By:

  	
  /s/ Randy L. Pearce

  	
   

  
	
  Name:

  	
  Randy L. Pearce

  	
   

  
	
  Title:

  	
  Senior Executive Vice President, Chief Financial and Administrative
  Officer

  	
   

  
	
   

  
	
  THE BARBERS HAIRSTYLING FOR MEN &
  WOMEN, INC.

  
	
   

  
	
  By:

  	
  /s/ Randy L. Pearce

  	
   

  
	
  Name:

  	
  Randy L. Pearce

  	
   

  
	
  Title:

  	
  Senior Executive Vice President, Chief Financial and Administrative
  Officer

  	
   

  
	
   

  
	
  REGIS CORP.

  
	
   

  
	
  By:

  	
  /s/ Randy L. Pearce

  	
   

  
	
  Name:

  	
  Randy L. Pearce

  	
   

  
	
  Title:

  	
  Senior Executive Vice President, Chief Financial and Administrative Officer

  	
   

  
	
   

  
	
  FIRST CHOICE HAIRCUTTERS (INTERNATIONAL) CORP.

  
	
   

  
	
  By:

  	
  /s/ Randy L. Pearce

  	
   

  
	
  Name:

  	
  Randy L. Pearce

  	
   

  
	
  Title:

  	
  Senior
  Executive Vice President, Chief Financial and Administrative Officer

  	
   

  

 

[Signature
Page to Amendment No. 6 to Amended and Restated Private Shelf Agreement]

 

 

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.Exhibit 10.96

 

THE COMPANY HAS REQUESTED AN ORDER FROM THE SECURITIES AND EXCHANGE
COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL TREATMENT TO SELECTED
PORTIONS.  ACCORDINGLY, THE CONFIDENTIAL
PORTIONS HAVE BEEN OMITTED FROM THIS EXHIBIT, AND HAVE BEEN FILED SEPARATELY
WITH THE COMMISSION.  OMITTED PORTIONS
ARE INDICATED IN THIS EXHIBIT WITH “*****”.

 

 

DIAMOND
SHAMROCK REFINING COMPANY, L.P,

CRUDE
OIL PURCHASE CONTRACT

 

DSRCLP Contract No. 01-0838

Seller’s Contract No. (please provide)

 

The following contains the complete Agreement by and
between W.O. Operating Company, herein called “Seller”, and Diamond Shamrock
Refining Company, L.P., herein called “Buyer”, covering the sale and delivery
by Seller and the purchase and receipt by Buyer of the hereinafter specified
crude oil contingent upon the following Special Terms and Conditions:

 

	
  SELLER:

  	
  W.O. OPERATING COMPANY

  
	
   

  	
  ATTN:   MR. MILES O’LOUGLIN

  
	
   

  	
  P.O. BOX
  960, HWY 152 WEST

  
	
   

  	
  PAMPA, TEXAS
  79066-0960

  
	
   

  	
   

  
	
  BUYER:

  	
  DIAMOND SHAMROCK REFINING COMPANY, L.P, 6000 NORTH LOOP 1604 WEST

  
	
   

  	
  SAN ANTONIO,
  TEXAS 78249-1112

  

 

TERMS:

This Agreement shall
remain in effect for an initial term commencing on May 1, 2001 through October 31,
2001, and continuing thereafter on a month to month basis unless and until
cancelled by either party giving the other thirty (30) days advance written
notice of cancellation.

 

TYPE OF OIL:

Domestic Sweet Crude Oil
and/or Condensate.

 

QUANTITY:

Equal to the production from
the leases listed on the attached Exhibit “A”.

 

DELIVERY:

Delivery shall take place
and title shall pass from Seller to Buyer when the crude oil passes the outlet
flange of Seller’s lease facility to the receiving equipment of Buyer or Buyer’s
designated agent.

 

PRICE:

Diamond Shamrock’s posted
price for West Texas Intermediate Crude Oil, deemed 40 degrees API Gravity, in
effect during the month of delivery (EDQ), *****(1) per barrel.

 

PAYMENT:

Per Diamond Shamrock
Refining and Marketing Company Division Order.

 

(1) THE COMPANY HAS REQUESTED AN ORDER FROM THE
SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, GRANTING CONFIDENTIAL
TREATMENT TO SELECTED PORTIONS. 
ACCORDINGLY, THE CONFIDENTIAL PORTIONS HAVE BEEN OMITTED FROM THIS
EXHIBIT, AND HAVE BEEN FILED SEPARATELY WITH THE COMMISSION.  OMITTED PORTIONS ARE INDICATED IN THIS
EXHIBIT WITH “*****”.

 

 

GENERAL PROVISIONS

 

MEASUREMENTS AND TESTS:

Quantities of crude oil delivered hereunder shall be
determined from tank gauges on 100% tank table basis or by the use of mutually
acceptable automatic measuring equipment, or by such other method of
measurement as the Parties may mutually agree. 
Volume and gravity of said quantities shall be corrected for temperature
to 60 degrees Fahrenheit in accordance with the latest A.S.T.M.I.P. Petroleum
Measurement Tables.  The crude oil
delivered hereunder shall be merchantable and acceptable to the carriers
involved, but not to exceed 2% BS&W. 
Full deduction shall be made for all BS&W content as determined by
tests conducted according to the latest A.S.T.M. standard method then in
effect.  Gauges, tests for quality, and
measurements shall be made at regular intervals by Seller or its designated
representative in accordance with recognized procedures.  Buyer shall have the right to have a
representative present to witness all gauges, tests and measurements.

 

WARRANTY:

Seller warrants title to the crude oil sold and
delivered hereunder free and clear of all royalties; applicable federal, state
and local taxes; liens and encumbrances. 
Seller further warrants that the crude oil delivered shall not be
contaminated by chemicals foreign to virgin crude and/or condensate including,
but not limited to, chlorinated and/or oxygenated hydrocarbons and lead.  Buyer shall have the right, without
prejudice, to any other remedy available to Buyer, to reject and return to
Seller any quantities of crude oil which are found to be so contaminated, even
after delivery to Buyer.

 

FORCE MAJEURE:

Neither Party shall be liable to the other for failure
or delay in making or accepting deliveries of crude oil hereunder to the extent
that such failure or delay is due to the following: compliance with acts,
orders, regulations, or requests of any federal, state or local civilian or
military authority, or any person purporting to act thereof riot; strike or
labor difficulty; act of God or the elements; disruption or breakdown of
production or transportation facilities; or, any other cause or causes, whether
or not of the same class or kind, reasonably beyond the control of such
Party.  The obligations of such Party
claiming a “force majeure” cause or causes hereunder shall, insofar as they are
affected by any such “force majeure” cause or causes, be excused during the
continuance of any inability so caused, but for no longer period, and the term
of this contract shall not be extended thereby, but the quantities set forth
herein shall be adjusted accordingly.

 

WAIVER CLAUSE:

No waiver by either party of any breach of any of the
covenants or conditions herein contained and to be performed by the other party
shall be construed as a waiver of any succeeding breach of the same or of any
other covenant or condition thereof.

 

RULES AND REGULATIONS:

All terms and provisions of this contract shall be
subject to applicable laws, rules, regulations, orders and ordinances of all
governmental authorities having jurisdiction. 
This contract is subject to Executive Order 11246, as amended, and the
Equal Employment Opportunity Clause contained therein.

 

PAYMENT:

Except as otherwise provided herein, payments under
this contract shall be due on or before the twentieth (20th)
day of the month
following the month of delivery, and shall be made to Seller by check at its
address set forth under the Special Terms and Conditions hereof, or in such
other manner as the parties may mutually agree in advance.

 

TITLE AND RISK OF LOSS:

Title and risk of loss to all crude oil sold hereunder
will pass to Buyer as the crude oil passes from equipment owned or controlled
by Seller or its designated representative into equipment owned or controlled
by BUYER or its designated representative.

 

 

OFFSET:

In addition to any other rights or remedies either
Party may have hereunder, a Party may at any time and from time to time offset
any payment or delivery due to it from the other Party hereunder against any
delivery or payment or payments due the other Party from it hereunder, or under
any other agreement or contract by and between the Parties.

 

Said offset being
made without resort to judicial process or proceedings and in accordance with
generally accepted accounting procedures in effect at the time of such
offset.  The exercise by such party of
any right under this paragraph shall be without prejudice to any claim or right
which such party may have damages, or any other right under this contract or
applicable law.

 

ASSIGNMENTS:

Neither Party
shall assign this contract without the prior written consent of the other, which
consent shall not be unreasonably withheld.

 

EQUAL DAILY
DELIVERIES:

Unless otherwise
specified in this contract, all crude oil delivered hereunder during any
calendar month shall be deemed to have been delivered in equal daily quantities
during such month, and any price provisions based upon Seller’s or some other
party’s “posted” price shall mean such party’s “posted” price in effect on the
date or dates of delivery.

 

NECESSARY
DOCUMENTS:

Upon request,
Seller agrees to furnish all substantiating documents incidental to the
transaction, including a Delivery Ticket for each volume delivered and an
invoice for any month in which the sums are due.  A Delivery Ticket is a shipping/loading
document or documents stating the type and quality of oil delivered, the volume
delivered and method of measurement, the corrected specific gravity,
temperature, and BS&W content.  An
invoice is a statement setting forth at least the following information:  The date(s) of delivery under the
transaction; the location(s) of delivery; the volume(s); prices(s); the
specific gravity and gravity adjustments to the price(s) (where
applicable); and the terms(s) of payment.

 

GOVERNING LAW:

This contract and
any disputes arising thereunder shall be governed by the laws of the State of Texas.

 

ENTIRETY OF
AGREEMENT:

The terms and
provisions set forth herein contain the entire agreement between the parties,
and there are no other promises, representations or warranties of any type,
unless expressly set forth herein.  Any
modification of this contract to be valid shall be by written instrument duly
signed by the Parties hereto.  Any
conflict between the Special Terms and Conditions and these General Provisions
shall be resolved in favor of the Special Terms and Conditions.

 

This agreement shall
be binding upon and inure to the benefit of the successors and assigns of the
Parties hereto.

 

 

EXECUTED in
duplicate this 6th day of August, 2001.

 

	
  BUYER

  	
   

  	
  SELLER

  
	
   

  	
   

  	
   

  
	
  DIAMOND SHAMROCK

  	
   

  	
  W.O. OPERATING COMPANY

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Les Harding

  	
   

  	
  By:

  	
  /s/ Miles O’Loughlin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  General Manager

  	
   

  	
  Title:

  	
  Manager

  

 

 

EXHIBIT “A”

W.O. OPERATING COMPANY

DSRCLP #01-0838

 

	
  LEASE NAME

  	
   

  	
  LEGAL DESCRIPTION

  	
   

  	
  COUNTY/STATE

  
	
  CANADIAN-KINGSLAND (01320)

  	
   

  	
  SECTION 4, BLOCK Y,
  M&C SURVEY

  	
   

  	
  HUTCHINSON/TX

  
	
  COCKRELL A (01317)

  	
   

  	
  SECTION 3, BLOCK Y,
  M&C SURVEY

  	
   

  	
  HUTCHINSON/TX

  
	
  COCKRELL B (01794)

  	
   

  	
  SECTION 2, BLOCK B-3,
  D&SE SURVEY

  	
   

  	
  HUTCHINSON/TX

  
	
  COCKRELL B (03661)

  	
   

  	
  SECTION 2, BLOCK B-3,
  D&SE SURVEY

  	
   

  	
  HUTCHINSON/TX

  
	
  COCKRELL D (01305)

  	
   

  	
  SECTION 2, BLOCK B-3,
  D&SE SURVEY

  	
   

  	
  HUTCHINSON/TX

  
	
  COCKRELL E (01317)

  	
   

  	
  SECTION 3, BLOCK Y,
  M&C SURVEY

  	
   

  	
  HUTCHINSON/TX

  
	
  COCKRELL F (01307)

  	
   

  	
  SECTION 1,
  SECTION 2, BLOCK B-3, D&SE RY. CO. SURVEY

  	
   

  	
  HUTCHINSON/TX

  
	
  COCKRELL F (03640)

  	
   

  	
  SECTION 1 &
  2, BLOCK -3, D&SE SURVEY

  	
   

  	
   

  
	
  DRILLEX (01784)

  	
   

  	
  SECTION 3, BLOCK M-21,
  TCRR SURVEY

  	
   

  	
  HUTCHINSON/TX

  
	
  KINGSLAND (01317)

  	
   

  	
  SECTION 3 AND
  SECTION 4, BLOCK Y, MORRIS AND CUMMINGS SURVEY

  	
   

  	
  HUTCHINSON/TX

  
	
  KINGSLAND B (01320)

  	
   

  	
  SECTION 4, BLOCK Y,
  M&C SURVEY

  	
   

  	
  HUTCHINSON/TX

  
	
  KINGSLAND C (01317)

  	
   

  	
  SECTION 4, BLOCK Y,
  MORRIS & CUMMINGS SURVEY

  	
   

  	
  HUTCHINSON/TX

  
	
  MAGIC (01320)

  	
   

  	
  SECTION 4, BLOCK Y,
  MORRIS & CUMMINGS SURVEY

  	
   

  	
  HUTCHINSON/TX

  
	
  SOUTHLAND B (01643)

  	
   

  	
  SECTION 2, BLOCK B-3,
  D&SE SURVEY

  	
   

  	
  HUTCHINSON/TX

  
	
  SOUTHLAND B (03652)

  	
   

  	
  SECTION 2, BLOCK B-3,
  D&SE SURVEY

  	
   

  	
  HUTCHINSON/TX

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