Document:

Exhibit 10.2

 

AMENDED AND RESTATED SHAREHOLDER AGREEMENT

 

BY AND BETWEEN

 

PEPSIAMERICAS, INC.,

A DELAWARE CORPORATION,

 

POHLAD COMPANIES,

A MINNESOTA CORPORATION

 

AND

 

ROBERT C. POHLAD

 

 

DATED
AS OF SEPTEMBER 6, 2005

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
   

  	
  CERTAIN DEFINITIONS

  	
   

  	
   

  
	
  Section 1.1.

  	
   

  	
  Certain Definitions

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  	
   

  
	
  Section 2.1.

  	
   

  	
  Representations and
  Warranties of the Company

  	
   

  	
   

  
	
  Section 2.2.

  	
   

  	
  Representations and
  Warranties of the Shareholders

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  SHAREHOLDER AND COMPANY
  CONDUCT

  	
   

  	
   

  
	
  Section 3.1.

  	
   

  	
  Prohibited
  Acquisitions

  	
   

  	
   

  
	
  Section 3.2.

  	
   

  	
  Acquisition of Voting
  Securities

  	
   

  	
   

  
	
  Section 3.3.

  	
   

  	
  Buy-Back Offer

  	
   

  	
   

  
	
  Section 3.4.

  	
   

  	
  Charter and By-Laws

  	
   

  	
   

  
	
  Section 3.5.

  	
   

  	
  Rights Agreement

  	
   

  	
   

  
	
  Section 3.6.

  	
   

  	
  No Agreements

  	
   

  	
   

  
	
  Section 3.7.

  	
   

  	
  Special Meetings
  Requested by the Shareholder; Nominations

  	
   

  	
   

  
	
  Section 3.8.

  	
   

  	
  Options

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
  EFFECTIVENESS AND
  TERMINATION

  	
   

  	
   

  
	
  Section 4.1.

  	
   

  	
  Effectiveness

  	
   

  	
   

  
	
  Section 4.2.

  	
   

  	
  Termination

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
  MISCELLANEOUS

  	
   

  	
   

  
	
  Section 5.1.

  	
   

  	
  Injunctive Relief

  	
   

  	
   

  
	
  Section 5.2.

  	
   

  	
  Successors and Assigns

  	
   

  	
   

  
	
  Section 5.3.

  	
   

  	
  Amendments, Waiver

  	
   

  	
   

  
	
  Section 5.4.

  	
   

  	
  Notices

  	
   

  	
   

  
	
  Section 5.5.

  	
   

  	
  Applicable Law

  	
   

  	
   

  
	
  Section 5.6.

  	
   

  	
  Headings

  	
   

  	
   

  
	
  Section 5.7.

  	
   

  	
  Integration

  	
   

  	
   

  
	
  Section 5.8.

  	
   

  	
  Severability

  	
   

  	
   

  
	
  Section 5.9.

  	
   

  	
  Consent to
  Jurisdiction

  	
   

  	
   

  
	
  Section 5.10.

  	
   

  	
  Counterparts

  	
   

  	
   

  

 

i

 

AMENDED AND
RESTATED SHAREHOLDER AGREEMENT, dated as of September 6, 2005 (this “Agreement”),
by and between PepsiAmericas, Inc., a Delaware corporation (the “Company”),
Pohlad Companies, a Minnesota corporation, and Robert C. Pohlad (each a “Shareholder”
and collectively, the “Shareholders.”)

 

W I T N E S S E T H:

 

WHEREAS, the
Company and Shareholders are parties to a Shareholder Agreement dated as of November 30,
2000, as amended (the “Original Shareholder Agreement”);

 

WHEREAS, each
Shareholder is currently the owner of certain outstanding shares of common
stock par value $0.01 per share of the Company (the “Common Stock”);

 

WHEREAS, in
light of the Company’s and Shareholders’ continuing relationship, the Company
and the Shareholders desire to amend and restate this agreement to contain
certain terms and conditions concerning the acquisition and disposition of
Voting Securities (as defined herein) of the Company by the Shareholders, and
related provisions concerning the Shareholders’ relationship with and
investment in the Company.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth
herein and for other good and valuable consideration, receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE I

 

CERTAIN DEFINITIONS

 

Section 1.1.            CERTAIN DEFINITIONS. 
In addition to other terms defined elsewhere in this Agreement, as used
in this Agreement, the following terms shall have the meanings ascribed to them
below:

 

“Affiliate”
shall mean, with respect to any person, any other person that directly or
indirectly through one or more intermediaries controls
or is controlled by or is under common control with such person. For the
purposes of this definition, “control,” when used with respect to any
particular person, means the power to direct the management and policies of
such person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

 

“Affiliated
Transaction Committee” shall mean the Affiliated Transaction Committee of the
Board.

 

“Agreement”
shall have the meaning assigned to such term in the preamble.

 

“Beneficial
Owner” (and, with correlative meanings, “Beneficially Own” and “Beneficial
Ownership”) of any interest means a Person who, together with his or its
Affiliates, is or may be deemed a beneficial owner of such interest for
purposes of Rule 13d-3 or 13d-5 under the Exchange Act, or who, together
with his or its Affiliates, has the right to become such a

 

 

beneficial
owner of such interest (whether such right is exercisable immediately or only
after the passage of time) pursuant to any agreement, arrangement or understanding,
or upon the exercise, conversion or exchange of any warrant, right or other
instrument, or otherwise; PROVIDED that a Person shall not be deemed the
Beneficial Owner of Voting Securities solely as a result of having been granted
a revocable proxy relating to such Voting Securities in connection with any one
special or annual meeting of shareholders of the Company (including any
postponements or adjournments thereof), nor shall the procurement of such a
proxy be deemed to give the proxy holder “control” over any Person as to which
such proxy holder does not otherwise have control.

 

“Board” shall
mean the Board of Directors of the Company in office at the applicable time, as
elected in accordance with the By-Laws.

 

“Buy-Back
Offer” shall have the meaning set forth in Section 3.3 of this Agreement.

 

“By-Laws”
shall mean the by-laws of the Company, as they may be amended from time to
time.

 

“Charter”
shall mean the Certificate of Incorporation of the Company, as it may be
amended from time to time.

 

“Commission”
shall mean the United States Securities and Exchange Commission.

 

“Common Stock”
shall have the meaning assigned in the recitals of this Agreement.

 

“Company”
shall have the meaning assigned in the preamble.

 

“Director”
shall mean any member of the Board of Directors of the Company in office at the
applicable time, as elected in accordance with the provisions of the By-Laws.

 

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended.

 

“Family” shall
mean, with respect to any natural person, (i) any child, stepchild,
parent, stepparent, spouse or sibling, and (ii) any grandchild,
grandparent, uncle, aunt, first cousin, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law who Beneficially
Owns greater than 1% of the Voting Power or who has entered into an agreement
or commitment with said natural person with respect to the Voting Securities,
and shall in each case include adoptive relationships.

 

“Permitted
Acquisition” shall mean the acquisition of Voting Securities pursuant to (1) a
transaction (including the grant of any options to purchase Common Stock
granted to any member of the Shareholder Group) approved by the Affiliated
Transaction Committee, or (2) compensation paid or otherwise given by the
Company for Robert C. Pohlad’s services as a director, officer, employee,
or in any other capacity.

 

“Person” shall
mean any individual, partnership, joint venture, corporation, trust,
unincorporated organization, government or department or agency of a
government.

 

“Pohlad
Companies” shall mean Pohlad Companies, a Minnesota corporation.

 

2

 

“Pohlad Group”
shall mean the Pohlad Companies, Robert C. Pohlad, any Affiliate of
Robert C. Pohlad (other than the Company or its subsidiaries), any member
of Robert C. Pohlad’s Family, and any Person with whom Robert C.
Pohlad, any Affiliate of Robert C. Pohlad or any member of Robert C.
Pohlad’s Family is part of a 13D Group.

 

“Repurchase”
shall have the meaning set forth in Section 3.3 of this Agreement.

 

“Rights
Agreement” shall mean the Shareholder Rights Agreement between PepsiAmericas, Inc.
(f/k/a Whitman Corporation), Pohlad Companies, Dakota Holdings, LLC, and
Robert C. Pohlad, dated as of November 30, 2000, as amended.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended.

 

“Shareholder
Group” shall mean the Pohlad Group.

 

“13D Group”
shall mean any group of Persons acquiring, holding, voting or disposing of any
Voting Security which would be required under Section 13(d) of the
Exchange Act and the rules and regulations thereunder to file a statement
on Schedule 13D with the Commission as a “person” within the meaning of Section 13(d)(3) of
the Exchange Act; PROVIDED that a Person shall not be deemed to be part of a
13D Group with another Person solely as a result of having been granted a
revocable proxy relating to such Person’s Voting Securities in connection with
any one special or annual meeting of shareholders of the Company (including any
postponements or adjournments thereof).

 

“Total Voting
Power” shall mean, calculated at a particular point in time, the aggregate
Votes represented by all then outstanding Voting Securities.

 

“Transfer”
shall mean any sale, transfer, pledge, encumbrance or other disposition to any Person, and to “Transfer” shall mean to sell, transfer,
pledge, encumber or otherwise dispose of to any Person.

 

“Votes” shall
mean votes entitled to be cast generally in the election of Directors, assuming
the conversion of any securities then convertible into Common Stock or shares
of any other class of capital stock of the Company then entitled to vote
generally in the election of Directors.

 

“Voting
Securities” shall mean the Common Stock and shares of any other class of capital
stock of the Company then entitled to vote generally in the election of
Directors and any securities then convertible into Common Stock or shares of
any other class of capital stock of the Company then entitled to vote generally
in the election of Directors.

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES

 

Section 2.1.            REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  The Company represents and warrants to the
Shareholders as of the date hereof as follows:

 

3

 

(a)           The Company has been duly
incorporated and is validly existing as a corporation
in good standing under the laws of the State of Delaware and has all necessary
corporate power and authority to enter into this Agreement and to carry out its
obligations hereunder.

 

(b)           This Agreement has been duly and
validly authorized by the Company and all necessary and appropriate action has
been taken by the Company to execute and deliver this Agreement and to perform
its obligations hereunder.

 

(c)           This Agreement has been duly executed
and delivered by the Company and assuming due authorization and valid execution
and delivery by each of the Shareholders, this Agreement is a valid and binding
obligation of the Company, enforceable against it in accordance with its terms.

 

Section 2.2.            REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS.  The Shareholders represent and warrant to the
Company as of the date hereof as follows:

 

(a)           Pohlad Companies has been duly
incorporated and is validly existing as a corporation
in good standing under the laws of the State of Minnesota and has all necessary
corporate power and authority to enter into this Agreement and to carry out its
obligations hereunder.

 

(b)           This Agreement has been duly and
validly authorized by Pohlad Companies and all necessary and appropriate action
has been taken by Pohlad Companies to execute and deliver this Agreement and to
perform its obligations hereunder.

 

(c)           This Agreement has been duly executed
and delivered by each of Pohlad Companies and Robert C. Pohlad and
assuming due authorization and valid execution and delivery by the Company,
this Agreement is a valid and binding obligation on each of Pohlad Companies
and Robert C. Pohlad, enforceable against each in accordance with its
terms.

 

ARTICLE III

 

SHAREHOLDER AND COMPANY CONDUCT

 

Section 3.1.            PROHIBITED ACQUISITIONS. 
Subject to the provisions of this Agreement, during the term of this
Agreement, the Shareholders agree with the Company that, without the prior
approval of the Affiliated Transaction Committee, the Shareholders will not,
and will cause each member of the Shareholder Group not to initiate (including
by means of publicly proposing or announcing or otherwise disclosing an
intention to propose, solicit, offer, seek to effect or negotiate) a merger,
acquisition or other business combination transaction relating to the Company
(other than a merger, acquisition or business combination of a third party (not
a member of the Shareholder Group) with the Company) which would not be, if
consummated, a Permitted Acquisition.

 

4

 

Section 3.2.            ACQUISITION OF VOTING SECURITIES.  Subject to the provisions of this Agreement,
during the term of this Agreement, the Shareholders agree with the Company that
the Shareholders may not take any of the following actions (unless such action
is a Permitted Acquisition) singly or as part of a partnership, limited
partnership, syndicate or other 13D Group: directly or indirectly, acquire,
propose to acquire, or publicly announce or otherwise disclose an intention to
propose to acquire, or offer or agree to acquire, by purchase or otherwise,
Beneficial Ownership of any additional Voting Security other than those Voting
Securities already Beneficially Owned as of the date of this Agreement,
provided that nothing in this Agreement shall require the approval of the
Affiliated Transaction Committee for the exercise of any options, warrants, or
similar rights in existence as of the date hereof.

 

The
Shareholder Group shall not be prohibited by the terms of this Agreement from
taking any action or exercising any right which is not inconsistent with the
terms of this Agreement, including soliciting or obtaining the revocable proxy
of any other shareholder of the Company with respect to the election of
directors or any other matter, seeking the election of new directors, calling
special meetings of shareholders of the Company, making shareholder proposals,
engaging in discussions with the Board or the management of the Company or
otherwise voting its Voting Securities in any manner in which any member of the
Shareholder Group shall determine in its sole discretion. In addition, this section shall
not be deemed to restrict Directors affiliated with the Shareholders from
participating as officers or Board members in the direction of the Company.

 

Section 3.3.            BUY-BACK
OFFER.  During the term of this
Agreement, if the Company purchases shares of Common Stock from the public,
whether by tender offer, open market purchase or otherwise (a “Repurchase”),
the Company shall contemporaneously with the Repurchase offer to purchase from
the Shareholder Group, on the same terms and conditions, including price, as in
the Repurchase, a percentage of those shares of Common Stock Beneficially Owned
by the Shareholder Group equal to the percentage of shares of Common Stock to
be Repurchased from the Beneficial Owners of shares of Common Stock other than
the Shareholder Group (the “Buy-Back Offer”). The Company shall provide notice
to the Shareholders of its intention to engage in a Repurchase and of the
mechanism by which the Repurchase shall occur not less than thirty (30) days in
advance of the date on which the Repurchase is to be consummated, and the
Shareholders shall provide notice to the Company within ten (10) days of
receipt of such notice whether the Shareholder Group intends to accept the
Buy-Back Offer.

 

Section 3.4.            CHARTER AND BY-LAWS. 
During the term of this Agreement the Company shall not, and the
Shareholder Group shall not, and shall not facilitate any effort to, amend,
alter or repeal, or propose the amendment, alteration or repeal of, any
provision of the Charter or the By-Laws in any manner which is inconsistent
with the terms of this Agreement. If at any time during the term of this
Agreement the provisions of this Agreement shall conflict with the provisions
of the Charter or the By-Laws, the parties shall use all reasonable efforts,
consistent with their fiduciary responsibilities, to cause the provisions of
the Charter and the By-Laws to be brought into conformity with the provisions
of this Agreement.

 

Section 3.5.            RIGHTS AGREEMENT. 
During the term of this Agreement, the Company hereby agrees not to (i) amend
any provision of the Rights Agreement in any manner which is inconsistent with
the terms of this Agreement and which adversely affects the rights of

 

5

 

the Shareholder Group under the terms of this
Agreement or (ii) adopt any new rights agreement which is inconsistent
with the terms of this Agreement and which adversely affects the rights of the
Shareholder Group under the terms of this Agreement.

 

Section 3.6.            NO
AGREEMENTS.  During the term of this
Agreement no member of the Shareholder Group shall, directly or indirectly,
enter into any agreement or other understanding with any member of the PepsiCo
Group with respect to the holding, voting, acquisition or disposition of Voting
Securities.

 

Section 3.7.            SPECIAL
MEETINGS REQUESTED BY THE SHAREHOLDER; NOMINATIONS.  In the event that during the term of this
Agreement the Shareholder Group requests a special meeting of the stockholders
of the Company in accordance with the By-Laws, or the Shareholder Group
nominates an alternative slate of directors to the slate proposed by the Board
at any annual meeting of stockholders of the Company in accordance with the
By-Laws, the Company hereby agrees that the Company shall not, without the
Shareholders’ consent, from the date of receipt of such request for a special
meeting or the date of receipt of such nomination, as the case may be, until
the adjournment of the requested special meeting or the annual meeting, as the
case may be, (i) take any action effecting a material change in its
capital structure, (ii) declare or pay a dividend (other than any regular
quarterly dividend), (iii) materially increase the compensation of any
executive officer or (iv) take any material action not in the ordinary
course of business; PROVIDED that this section shall not restrict the
ability of the Company to comply with commitments entered into prior to the
date of such request.

 

Section 3.8.            OPTIONS.  The Company
shall not grant to any member of the Shareholder Group any options to purchase
Common Stock (other than as a Permitted Acquisition) unless such grant is
approved by the Affiliated Transaction Committee (or, if such Committee shall
not be in existence, by a committee of the Board composed entirely of
Independent Directors).

 

ARTICLE IV

 

EFFECTIVENESS AND TERMINATION

 

Section 4.1.            EFFECTIVENESS.  This
Agreement shall take effect immediately upon its execution and shall remain in
effect until it is terminated pursuant to Section 4.2 hereof.

 

Section 4.2.            TERMINATION.  This
Agreement shall terminate upon written agreement of the Company (which shall
require the approval of the Affiliated Transaction Committee (or, if such
Committee shall not be in existence, by a committee of the Board composed
entirely of Independent Directors)) and the Shareholders at any time to
terminate this Agreement, which termination shall occur at a time to be fixed
in such mutual agreement.

 

ARTICLE V

 

MISCELLANEOUS

 

Section 5.1.            INJUNCTIVE RELIEF. 
Each party hereto acknowledges that it would be impossible to determine
the amount of damages that would result from any breach of any of the

 

6

 

provisions of this Agreement and that the remedy at
law for any breach, or threatened breach, of any of such provisions would
likely be inadequate and, accordingly, agrees that each other party shall, in
addition to any other rights or remedies which it may have, be entitled to seek
such equitable and injunctive relief as may be available from any court of
competent jurisdiction to compel specific performance of, or restrain any party
from violating, any of such provisions. In connection with any action or
proceeding for injunctive relief, each party hereto hereby waives the claim or
defense that a remedy at law alone is adequate and agrees, to the maximum
extent permitted by law, to have each provision of this Agreement specifically
enforced against him or it, without the necessity of posting bond or other
security against him or it, and consents to the entry of injunctive relief
against him or it enjoining or restraining any breach or threatened breach of
such provisions of this Agreement.

 

Section 5.2.            SUCCESSORS AND ASSIGNS. 
This Agreement shall be binding upon, shall inure to the benefit of and
shall be enforceable by the Company and by the Shareholders and their
respective successors and permitted assigns, and no such term or provision is
for the benefit of, or intended to create any obligations to, any other Person.

 

Section 5.3.            AMENDMENTS, WAIVER.

 

(a)           This Agreement may be amended only by
an agreement in writing executed by the parties hereto. Any approval of an
amendment of this Agreement upon the part of the Company shall require the
approval of the Affiliated Transaction Committee (or, if such Committee shall
not be in existence, by a committee of the Board composed entirely of
Independent Directors) at a duly convened meeting thereof.

 

(b)           Either party may waive in whole or in
part any benefit or right provided to it under this Agreement, such waiver
being effective only if contained in a writing executed by the waiving party.
No failure by any party to insist upon the strict performance of any covenant,
duty, agreement or condition of this Agreement or to exercise any right or
remedy consequent upon breach thereof shall constitute a waiver of any such
breach or of any other covenant, duty, agreement or condition, nor shall any
delay or omission of either party to exercise any right hereunder in any manner
impair the exercise of any such right accruing to it thereafter. Any waiver of
any benefit or right provided to the Company under this Agreement shall require
the approval of a majority of the Board and approval of the Affiliated
Transaction Committee (or, if such Committee shall not be in existence, by a
committee of the Board composed entirely of Independent Directors) at a duly
convened meeting thereof.

 

Section 5.4.            NOTICES.  Except as
otherwise provided in this Agreement, all notices, requests, claims, demands,
waivers and other communications hereunder shall be in writing and shall be
deemed to have been duly given when delivered by hand, when delivered
personally or by courier, three days after being deposited in the mail
(registered or certified mail, postage prepaid, return receipt requested), or
when received by facsimile transmission if promptly confirmed by one of the
foregoing means, as follows:

 

7

 

If to the
Shareholders:

 

Pohlad
Companies

Suite 3800

60 South Sixth
Street

Minneapolis,
MN 55402

Attention:
Robert C. Pohlad

Fax: (612)
661-3825

 

If to the
Company:

 

PepsiAmericas, Inc.

4000 Dain
Rauscher Plaza

60 South Sixth
Street

Minneapolis,
MN 55402

Attention:
Chief Executive Officer

Fax: (612)
661-3825

 

or to such other
address or facsimile number as either party may, from time to time, designate
in a written notice given in a like manner.

 

Section 5.5.            APPLICABLE LAW.  This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of Delaware without giving effect to principles of conflicts
of law.

 

Section 5.6.            HEADINGS.  The
descriptive headings of the several sections in this Agreement are for
convenience only and do not constitute a part of this Agreement and shall not
be deemed to limit or affect in any way the meaning or interpretation of this
Agreement.

 

Section 5.7.            INTEGRATION.  This
Agreement and the other writings referred to herein or delivered pursuant
hereto which form a part hereof contain the entire understanding of the parties
with respect to its subject matter. This Agreement supersedes all prior
agreements and understandings between the parties with respect to its subject
matter. There are no restrictions, agreements, promises, representations,
warranties, covenants or undertakings with respect to its subject matter other
than those expressly set forth or referred to herein.

 

Section 5.8.            SEVERABILITY.  If any
term or provision of this Agreement or any application thereof shall be
declared or held invalid, illegal or unenforceable, in whole or in part,
whether generally or in any particular jurisdiction, such provision shall be
deemed amended to the extent, but only to the extent, necessary to cure such
invalidity, illegality or unenforceability, and the validity, legality and
enforceability of the remaining provisions, both generally and in every other
jurisdiction, shall not in any way be affected or impaired thereby.

 

Section 5.9.            CONSENT
TO JURISDICTION.  In connection with any
suit, claim, action or proceeding arising out of this Agreement, the
Shareholders and the Company each hereby consent to the in personam
jurisdiction of the United States federal courts and state courts located in
the State of Delaware; the Shareholders and the Company each agree that service
in the manner set forth in Section 5.4 hereof shall be valid and
sufficient for all purposes; and the

 

8

 

Shareholders and the Company each agree to, and
irrevocably waive any objection based on forum non conveniens or venue not to
appear in any United States federal court or state court located in the State
of Delaware.

 

Section 5.10.          COUNTERPARTS.  This
Agreement may be executed by the parties hereto in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

[SIGNATURE PAGE FOLLOWS]

 

9

 

[SIGNATURE PAGE TO AMENDED AND RESTATED
SHAREHOLDER AGREEMENT]

 

IN WITNESS
WHEREOF, the Company and the Shareholders have caused this Agreement to be duly
executed by their respective authorized officers as of the date set forth at
the head of this Agreement.

 

 

	
   

  	
  PEPSIAMERICAS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alexander H. Ware

  	
   

  
	
   

  	
   

  	
    Name: Alexander H. Ware

  
	
   

  	
   

  	
    Title:
  Executive Vice President and

   Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  POHLAD COMPANIES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert C. Pohlad

  	
   

  
	
   

  	
   

  	
    Name: Robert C. Pohlad

  
	
   

  	
   

  	
    Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Robert C. Pohlad

  	
   

  
	
   

  	
  Robert C. PohladExhibit 10.1

 

Dated as of July 30, 2005

 

Restoration Hardware, Inc.

15 Koch Road, Suite J

Corte Madera, California 94925

Attention: Patricia A. McKay, Executive Vice President

and Chief
Financial Officer

 

	
  Re:

  	
  Conversion
  of Series A Preferred Stock into Common Stock; Waiver of Certain Rights under
  Amended and Restated Investor Rights Agreement

  

 

Ladies
and Gentlemen:

 

Reference is hereby made to
the Certificate of Designation of Series A and Series B Preferred Stock (“Certificate
of Designation”) of Restoration Hardware, Inc. (the “Company”) and
to the Amended and Restated Investor Rights Agreement, dated as of
March 21, 2001 (the “Investor Rights Agreement”), by and among the
Company and the investors (the “Investors”) listed on Schedule A
thereto.  Capitalized terms used but not
defined herein shall have the meanings ascribed to such terms in the Investor
Rights Agreement.

 

The Company has indicated to the undersigned that it
intends to provide notice of conversion pursuant to the Certificate of Designation providing for the conversion
of its outstanding Series A Preferred Stock of the
Company into Common Stock of the Company. 
The undersigned holder of Series A Preferred Stock wishes to elect
voluntary conversion of such Series A Preferred Stock into Common Stock of the
Company as hereinafter provided and to agree to a waiver of certain information
rights that would otherwise be available to some holders of Common Stock
resulting from the conversion of Series A Preferred Stock absent such waiver,
such waiver being effective as to all holders of Series A Preferred Stock (and
Common Stock resulting upon conversion of such Series A Preferred Stock) upon
consent of two-thirds (2/3) of the holders of outstanding Registrable
Securities.  For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the undersigned agrees as follows:

 

1.             Conversion of Series A Preferred Stock into Common
Stock.

 

(a)           Notification to Company.  Pursuant to Sections 3(C)3(a) and 3(C)3(c) of
the Certificate of Designation, the undersigned holder of Series A Preferred
Stock of the Company is hereby notifying the Company that such undersigned has
elected to convert all of its shares of Series A Preferred Stock into Common
Stock of the Company.

 

(b)           Notification to Transfer Agent.  By copy of this letter to Computershare, the
Company’s transfer agent, the undersigned is providing notice to the transfer
agent of the undersigned’s election to convert such shares of Series A Preferred Stock into Common Stock of the Company.  Issuance of certificates representing the
shares of Common Stock issuable upon conversion of such Series A Preferred Stock will be available upon surrender of the
certificates, along with any required endorsements, representing the shares of
Series A Preferred Stock held by the undersigned.

 

(c)           Effective Time of Conversion.  The conversion of shares of Series A
Preferred into shares of Common Stock shall be deemed to have been made
immediately prior to the close of business on the date hereof in accordance
with Section 3(C)3(c) of the Certificate of
Designation.

 

(d)           Delivery of Common Stock
Certificates.  The undersigned holder
of Series A Preferred Stock directs that the certificate representing the
shares of Common Stock of the Company to be received upon conversion of the
undersigned’s shares of Series A Preferred Stock be issued in the name, and
delivered to the address for the undersigned set forth in the notice provisions
of the Investor Rights Agreement unless the undersigned subsequently provides
different instructions to the Company and the transfer agent.

 

2.             Waiver
of Certain Rights under Investor Rights Agreement.

 

(a)           Waiver of
Information Rights.  Pursuant to
Section 3.2 of the Investor Rights Agreement, the undersigned agrees to a
waiver of any and all further rights under Section 1.1 of the Investor Rights
Agreement.  Upon the receipt by the
Company of executed copies of this letter from the holders of at least
two-thirds of the outstanding Registrable Securities, the waiver of rights

 

1

 

set
forth in this Section 2(a) shall be binding upon all holders of Registrable
Securities and all permitted successors and assigns thereof.  This waiver may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

 

(b)           Registration.  To the extent that the undersigned’s
Registrable Securities have already been registered by the Company for resale
on a Form S-3 registration statement currently on file with the Securities and
Exchange Commission, the undersigned hereby waives for inclusion such
Registrable Securities on a separate Form S-3 registration statement to be
filed by the Company in connection with the conversion of all of the Company’s
outstanding Series A Preferred Stock of the Company into Common Stock as
described herein.  Such separate Form S-3
registration statement is to be filed to register for resale those Registrable
Securities that were not included in the Form S-3 currently on file with the
Securities and Exchange Commission.

 

(c)           Miscellaneous.   The waivers set forth in Sections 2(a) and
2(b) hereof are to be construed in accordance with and governed by the internal
laws of the State of New York without giving effect to any choice of law rule
that would cause the application of the laws of any jurisdiction other than the
internal laws of the State of New York to the rights and duties of the parties.

 

[Signature page follows]

 

2

 

This letter agreement is executed by the undersigned as
of the first date written above.

 

 

	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Agreed and accepted as of 

  	
   

  	
   

  	
   

  	
  , 2005:

  
	
   

  	
   

  	
   

  
	
  Restoration Hardware, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  cc:

  	
  Deborah F. Dougherty, Computershare

  	
   

  	
   

  
																		

 

3

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