The Company maintains a defined contribution 401(k) plan, the Regis Retirement Savings Plan (RRSP Plan). The RRSP Plan is a defined contribution profit sharing plan with a 401(k) feature that is intended to qualify with the Internal Revenue Code (Code) and is subject to the Employee Retirement Income Security Act of 1974.

The 401(k) portion of the Plan is a contributory defined contribution plan under which eligible employees may elect to contribute a percentage of their eligible compensation. Employees who are 18 years of age or older and who were not highly compensated employees as defined by the Code during the preceding Plan year are eligible to participate in the Plan commencing with the first day of the month following their completion of one month of service.

The discretionary employer contribution profit sharing portion of the Plan is a noncontributory defined contribution component covering full-time and part-time employees of the Company who have at least one year of eligible service, 1,000 hours of service during the Plan year, are employed by the Employer on the last day of the Plan year and are employed at the home office or distribution centers, or as area or regional supervisors, artistic directors or educators, and that are not highly compensated employees as defined by the Code. Participants' interest in the noncontributory defined contribution component become 20.0 percent vested after completing two years of service with vesting increasing 20.0 percent for each additional year of service, and with participants becoming fully vested after six full years of service.

The Company maintains a Nonqualified Deferred Salary Plan (Executive Plan), which covers Company officers, field supervisors, warehouse and corporate office employees who are highly compensated. The discretionary employer contribution profit sharing portion of the Executive Plan is a noncontributory defined contribution component in which participants interest become 20.0 percent vested after completing two years of service with vesting increasing 20.0 percent for each additional year of service, and with participants becoming fully vested after six full years of service.

The Company has an employee stock purchase plan (ESPP) available to substantially all employees. Under the terms of the ESPP, eligible employees may purchase the Company's common stock through payroll deductions. The Company contributes an amount equal to 15.0 percent of the purchase price of the stock to be purchased on the open market and pays all expenses of the ESPP and its administration, not to exceed an aggregate contribution of $10.0 million. As of June 30, 2012, the Company's cumulative contributions to the ESPP totaled $8.9 million.

The Company has a franchise stock purchase plan (FSPP) available to substantially all franchisee employees. Under the terms of the plan, eligible franchisees and their employees may purchase the Company's common stock. The Company contributes an amount equal to five percent of the purchase price of the stock to be purchased on the open market and pays all expenses of the plan and its administration, not to exceed an aggregate contribution of $0.7 million. As of June 30, 2012, the Company's cumulative contributions to the FSPP totaled $0.2 million.

The Company has agreed to pay its former Chief Executive Officer, a lump sum amount equal to 60.0 percent of his salary for the remainder of his life. Compensation associated with this agreement was charged to expense as services were provided. Associated costs included in general and administrative expenses on the Consolidated Statement of Operations totaled $3.7, $1.8 and $3.0 million for fiscal years 2012, 2011, and 2010, respectively. As of June 30, 2012 and 2011, zero and $11.4 million is included in other noncurrent liabilities, respectively. As of June 30, 2012 and 2011, $15.1 million and zero of the balance is included in accrued liabilities, respectively

In addition, the Company has other unfunded deferred compensation contracts covering key executives within the Company. The key executives' benefits are based on years of service and the employee's compensation prior to departure. Effective June 30, 2012, the Company amended the deferred compensation contracts such that the benefits are based on years of service and employee's compensation as of June 30, 2012. The Company utilizes a June 30 measurement date for these deferred compensation contracts, a discount rate based on the Aa Bond index rate (4.0 and 5.5 percent at June 30, 2012 and 2011, respectively) and projected salary increases of 4.0 percent at June 30, 2011 to estimate the obligations associated with these deferred compensation contracts.

Compensation associated with these agreements is charged to expense as services are provided. Associated costs included in general and administrative expenses on the Consolidated Statement of Operations totaled $5.9, $2.5 and $2.2 million for fiscal years 2012, 2011, and 2010, respectively. The projected benefit obligation of these deferred compensation contracts totaled $21.3 and $22.2 million at June 30, 2012 and 2011, respectively, in the Consolidated Balance Sheet. As of June 30, 2012 and 2011, $11.8 and $17.2 million is included in other noncurrent liabilities, respectively. As of June 30, 2012 and 2011, $9.5 and $5.0 million of the balance is included in accrued liabilities, respectively. The tax-affected accumulated other comprehensive loss for the deferred compensation contracts, consisting of primarily unrecognized actuarial loss, was $0.5 and $1.6 million at June 30, 2012 and 2011, respectively. The Company intends to fund its future obligations under these arrangements through company-owned life insurance policies on the participants. Cash values of these policies totaled $24.4 and $22.3 million at June 30, 2012 and 2011, respectively, and are included in other assets in the Consolidated Balance Sheet.

The Company has agreed to pay the former Vice Chairman an annual amount of $0.6 million, adjusted for inflation to $0.9 million in fiscal years 2012 and 2011, for the remainder of his life. The former Vice Chairman has agreed that during the period in which payments are made, as provided in the agreement, he will not engage in any business competitive with the business conducted by the Company. Additionally, the Company has a survivor benefit plan for the former Vice Chairman's spouse, payable upon his death, at a rate of one half of his deferred compensation benefit, adjusted for inflation, for the remaining life of his spouse. Estimated associated costs included in general and administrative expenses on the Consolidated Statement of Operations totaled $0.8, $0.7 and $0.6 million for fiscal years 2012, 2011, and 2010, respectively. Related obligations totaled $4.9 and $5.9 million at June 30, 2012 and 2011, respectively, and are included in other noncurrent liabilities in the Consolidated Balance Sheet. The Company intends to fund all future obligations under this agreement through company-owned life insurance policies on the former Vice Chairman. Cash values of these policies totaled $4.5 and $4.2 million at June 30, 2012 and 2011, respectively, and are included in other assets in the Consolidated Balance Sheet. The policy death benefits exceed the obligations under this agreement.

Compensation expense included in (loss) income before income taxes and equity in (loss) income of affiliated companies related to the aforementioned plans, excluding amounts paid for expenses and administration of the plans, for the fiscal years ended June 30, 2012, 2011, and 2010, included the following:

	2012		2011		2010

	(Dollars in thousands)
RRSP Plan profit sharing	$	—	$	1,907	$	3,206
Executive Plan profit sharing		—		477		654
ESPP		449		494		484
FSPP		9		8		8
Deferred compensation contracts		10,452		4,977		5,814