Document:

Exhibit 10.1

 

Repurchase Plan

 

10b5-1
Repurchase Plan

 

Repurchase Plan, dated December 9, 2005 (this “Repurchase Plan”),
between PepsiAmericas, Inc. (the “Issuer”) and J. P. Morgan Securities
Inc. (“JPMSI”).

 

WHEREAS, the Issuer desires to establish this Repurchase Plan to
repurchase shares of its common stock (the “Stock”); and

 

WHEREAS, the Issuer desires to engage JPMSI to effect repurchases of
shares of Stock in accordance with this Repurchase Plan;

 

NOW, THEREFORE, the Issuer and JPMSI hereby agree as follows:

 

1.                                       (a)                                  Subject
to the Issuer’s continued compliance with Section 2 hereof, JPMSI shall
effect a purchase or purchases (each, a “Purchase”) of up to 2,000,000 shares
of the Stock (the “Total Plan Shares”) as set forth in Annex 1.

 

(b)                                 Purchases
may be made in the open market or through privately negotiated
transactions.  JPMSI shall comply with
the requirements of paragraphs (b)(2), (b)(3) and (b)(4) of Rule 10b-18
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), in
connection with Purchases of Stock in the open market pursuant to this
Repurchase Plan.  The Issuer agrees not
to take any action that would cause Purchases not to comply with Rule 10b-18,
Rule 10b5-1 or Regulation M.

 

2.                                       The
Issuer shall pay to JPMSI a commission of $.02 cents per share of Stock
repurchased pursuant to this Repurchase Plan. In accordance with JPMSI’s
customary procedures, JPMSI will deposit shares of Stock purchased hereunder
into an account established by JPMSI for the Issuer against payment to JPMSI of
the purchase price therefor and commissions and other amounts in respect
thereof payable pursuant to this Section. 
The Issuer will be notified of all transactions pursuant to customary
trade confirmations.

 

3.                                       (a)                                  This
Repurchase Plan shall become effective immediately and shall terminate upon the
first to occur of the following:

 

(1)                                  the
ending of the Trading Period, as set forth in Annex 1;

 

 

(2)                                  the
purchase of the number of Total Plan Shares pursuant to this Repurchase Plan;

 

(3)                                  the
end of the second business day following the date of receipt by JPMSI of notice
of early termination substantially in the form of Appendix A hereto, delivered
by telecopy, transmitted to (212) 622-0398, Attention: Kelly Maslick, and
confirmed by telephone to Jennifer Lynch at (212) 622-2922;

 

(4)                                  the
commencement of any voluntary or involuntary case or other proceeding seeking
liquidation, reorganization or other relief under any bankruptcy, insolvency or
similar law or seeking the appointment of a trustee, receiver or other similar
official, or the taking of any corporate action by the Issuer to authorize or
commence any of the foregoing;

 

(5)                                  the
public announcement of a tender or exchange offer for the Stock or of a merger,
acquisition, recapitalization or other similar business combination or
transaction as a result of which the Stock would be exchanged for or converted
into cash, securities or other property; or

 

(6)                                  the
failure of the Issuer to comply with Section 2 hereof.

 

(b)                                 Sections
2 and 12 of this Repurchase Plan shall survive any termination hereof.  In addition, the Issuer’s obligation under Section 2
hereof in respect of any shares of Stock purchased prior to any termination
hereof shall survive any termination hereof.

 

4.                                       The
Issuer understands that JPMSI may not be able to effect a Purchase due to a
market disruption or a legal, regulatory or contractual restriction or internal
policy applicable to JPMSI or otherwise. 
If any Purchase cannot be executed as required by Section 1 due to
a market disruption, a legal, regulatory or contractual restriction or internal
policy applicable to JPMSI or any other event, such Purchase shall be cancelled
and shall not be effected pursuant to this Repurchase Plan.

 

5.                                       The
Issuer represents and warrants, on the date hereof and on the date of any
amendment hereto, that: (a) it is not aware of material, nonpublic
information with respect to the Issuer or any securities of the Issuer
(including the Stock), (b) it is entering into or amending, as the case
may be, this Repurchase Plan in good faith and not as part of a plan or scheme
to evade the prohibitions of Rule 10b5-1 under the Exchange Act or other
applicable securities laws and (c) its execution of this Repurchase Plan or
amendment hereto, as the case may be, and the

 

2

 

Purchases
contemplated hereby do not and will not violate or conflict with the Issuer’s
certificate of incorporation or by-laws or, if applicable, any similar
constituent document, or any law, rule regulation or agreement binding on
or applicable to the Issuer or any of its subsidiaries or any of its of their
property or assets.

 

6.                                       It
is the intent of the parties that this Repurchase Plan comply with the
requirements of Rule 10b5-1(c)(1)(i)(B) and Rule 10b-18 under
the Exchange Act, and this Repurchase Plan shall be interpreted to comply with
the requirements thereof.

 

7.                                       At
the time of the Issuer’s execution of this Repurchase Plan, the Issuer has not
entered into a similar agreement with respect to the Stock.  The Issuer agrees not to enter into any such
agreement while this Repurchase Plan remains in effect.

 

8.                                       Except
as specifically contemplated hereby, the Issuer shall be solely responsible for
compliance with all statutes, rules and regulations applicable to the
Issuer and the transactions contemplated hereby, including, without limitation,
reporting and filing requirements.

 

9.                                       This
Repurchase Plan shall be governed by and construed in accordance with the laws
of the State of New York and may be modified or amended only by a writing
signed by the parties hereto.

 

10.                                 The
Issuer represents and warrants that the transactions contemplated hereby are
consistent with the Issuer’s publicly announced stock repurchase program (“Program”)
and said Program has been duly authorized by the Issuers’ board of directors.

 

11.                                 The
number of Total Plan Shares, other share amounts and prices, if applicable, set
forth in section 1(a) shall be adjusted automatically on a
proportionate basis to take into account any stock split, reverse stock split
or stock dividend with respect to the Stock or any change in capitalization
with respect to the Issuer that occurs during the term of this Repurchase Plan.

 

12.                                 Except
as contemplated by Section 3 (a) (3) of this Repurchase Plan,
the Issuer acknowledges and agrees that it does not have authority, influence
or control over any Purchase

 

3

 

effected
by JPMSI pursuant to this Repurchase Plan and the Issuer will not attempt to exercise
any authority, influence or control over Purchases.  JPMSI agrees not to seek advice from the
Issuer with respect to the manner in which it effects Purchases under this
Repurchase Plan.

 

13.                                 The
Issuer agrees to indemnify and hold harmless JPMSI and its affiliates and their
officers, directors employees and representatives against any loss, claim,
damage or liability, including legal fees and expenses, arising out of any
action or proceeding relating to this Repurchase Plan or any Purchase, except to
the extent that any such loss, claim, damage or liability is determined in a
non-appealable determination of a court of competent jurisdiction to be solely
the result of the indemnified person’s willful misconduct.

 

14.                                 This
Repurchase Plan may be executed in any number of counterparts, all of which,
taken together, shall constitute one and the same agreement.

 

4

 

IN WITNESS WHEREOF, the undersigned have
signed this Repurchase Plan as of the date first written above.

 

 

	
  J. P.
  Morgan Securities, Inc.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ William
  D. O’Connell

  	
   

  
	
   

  	
  Name:

  	
  William D. O’Connell

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  
	
   

  
	
  PepsiAmericas, Inc.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Andrew
  R. Stark

  	
   

  
	
   

  	
  Name:

  	
  Andrew R.
  Stark

  
	
   

  	
  Title:

  	
  Vice
  President and Treasurer

  
						

 

5

 

Appendix A

 

Request for Early Termination of Repurchase
Plan

 

To:                              J.
P. Morgan Securities, Inc.

 

As of the date hereof, PepsiAmericas, Inc. hereby requests
termination of the Repurchase Plan, dated December 9, 2005, in good faith
and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1
or other applicable securities laws.

 

IN WITNESS WHEREOF, the undersigned has signed this Request for Early
Termination of Plan as of the date specified below.

 

 

	
  PepsiAmericas, Inc.

  	
  J. P.
  Morgan Securities, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title:

  
					

 

 

ANNEX 1

 

TRADING PARAMETERS

 

Trading
Period:  From
and including January 3, 2006 through March 10, 2006

 

Daily
Share Purchase Amount: 
Lesser of (a) 50,000 shares; (b) Exchange Act Rule 10b-18(b)(4) limit;
and (c) 33% of current trading day’s volume.

 

 

TRADE ORDER

 

Subject to Paragraph 4 and
Paragraph 6 of the Repurchase Plan dated December 9, 2005 (the “Repurchase
Plan”) to which this Annex I is attached, each day during the Trading Period on
which the New York Stock Exchange is open for business, JPMSI shall use its
best efforts to effect a purchase or purchases (each, a “Purchase”) of the
Daily Share Purchase Amount, such Purchases cumulatively not to exceed the
Total Plan Shares.  Capitalized terms
used but not otherwise defined herein shall have the meaning assigned thereto
in the Repurchase Plan.Exhibit 10.1

 

November 1, 2005

 

Mr. Eric A. Blanchard

45
Cristofori Circle

Orono,
MN  55359

 

VIA
OVERNIGHT MAIL

 

Dear Eric:

 

We are extremely
pleased to extend to you an offer of employment with United Stationers as
Senior Vice President, General Counsel and Secretary, with an annual base
salary of $280,000, paid semi-monthly, less applicable tax withholdings.  In this position, you will be reporting
directly to me, with a start date of January 4, 2006.  This letter also encloses supporting
documentation regarding our various benefit programs.

 

You will be eligible for
participation in our annual Management Incentive Plan (MIP), and will have a target bonus equal to 50% of your
annual base salary (with upside potential of 100%).  The MIP bonus for 2006 will be payable during
the first quarter of 2007, provided you are an associate in good standing at
the time the payment is made.

 

You will be
eligible to participate in the company’s Management Equity Plan and be
recommended for a non-qualified stock option grant with an economic value equal
to $280,000, to be granted by and subject to the approval of the Human
Resources Committee of our Board of Directors. 
The Black Scholes method will be used to determine the actual number of
shares of the grant and the stock strike price will be determined on your
employment commencement date (January 4, 2006).  The options will vest in three substantially
equal installments (33% each year) over three years, and be subject to the
terms and conditions of our 2005 Long-Term Incentive Plan, as contained and
summarized in our most recent proxy statement, a copy of which is provided for
your information.

 

In addition, you
will receive a one-time acceptance bonus of $50,000, less applicable tax
withholdings, payable within thirty (30) days after your employment
commencement date, provided you are an employee in good standing at the time
payment is made.  If you decide to
voluntarily leave United Stationers for any reason (other than for death or
disability) before January 4, 2008, you will be obligated to repay this $50,000
acceptance bonus.  In addition, a
retention bonus of $50,000 will also be awarded to you, payable eighteen (18)
months after your employment commencement, provided you are an associate in
good standing at the time this bonus becomes payable.

 

 

United Stationers
provides an excellent benefits package, including group insurance, 401(k) plan
participation, pension and flexible spending accounts.  Also, as a member of management, you are
eligible to participate in the following executive programs:

 

•                  Automobile Allowance Program of
$1,400 per month

•                  Country Club Membership

•                  Medical Executive Reimbursement
Program (MERP) up to $25,000 per year

•                  Executive Physical Examination

•                  Financial Planning

•                  Four (4) Weeks Vacation

 

You also will be
entitled to a full executive relocation from Minnesota to Chicago for you and
your family.  A few key features of this
program (a summary of which is enclosed) include:

 

•                  7% miscellaneous expense allowance of
$19,600

•                  Full service move of your household
goods

•                  Advance house hunting trips for you
and your family along with temporary housing during the relocation process

 

Additional
information regarding these programs, as well as United Stationers’ complete
benefits program, is enclosed with this letter.

 

This offer is
contingent upon the acceptable results of a pre-employment drug screen,
satisfactory reference checks, and your signature on employment and
indemnification agreements with United Stationers upon your employment commencement.  That employment agreement will contain terms
and conditions, among others, relating to the severance benefits to be
available to you in certain employment termination circumstances.  The employment agreement also will contain
undertakings by you, among other things, as to your confidential treatment of
company information during and following your employment, return of company
assets immediately following any employment termination and post-termination
non-competition and customer/employee non-solicitation.  Copies of our current form of Executive
Employment and Indemnification Agreements are enclosed for your information.

 

To accept our employment offer, we ask
that you please sign and return one original copy of this letter.  A second copy is provided for your
records.  We are very hopeful that you
will accept this offer.  However, as we
discussed, we need to come to a decision soon, and are hopeful that you will
work with us to arrive at a decision as soon as reasonably possible.

 

Eric,
we are pleased to make you an employment offer for this important position and
look forward to your contributions in guiding the future of United Stationers.  The entire management team and the
Board are very excited about you joining United Stationers.  We look forward to your acceptance of our
offer.

 

Sincerely,

 

	
  /s/  Dick Gochnauer

  	
   

  
	
  Dick Gochnauer

  
	
  President and Chief Executive Officer

  

 

2

 

	
  Enclosures (5):

  	
   

  	
  Compensation &
  Benefits Summary

  
	
   

  	
   

  	
  Proxy Statement

  
	
   

  	
   

  	
  Relocation
  Summary

  
	
   

  	
   

  	
  Executive
  Employment Agreement

  
	
   

  	
   

  	
  Indemnification
  Agreement

  
	
   

  	
   

  	
   

  
	
  cc w/o enc:

  	
   

  	
  John Sloan,
  Senior Vice President, Human Resources

  
	
   

  	
   

  	
  Kathy Dvorak,
  Senior Vice President & CFO

  
	
   

  	
   

  	
  Tom Howell,
  Interim General Counsel

  
	
   

  	
   

  	
  George Sanders,
  Vice President, Compensation/Benefits & Development

  

 

 

	
  Accepted and
  agreed:

  	
   

  
	
   

  	
   

  
	
  /s/  Eric
  A. Blanchard

  	
   

  	
  Date:

  	
  December 5, 2005

  	
   

  
	
  Eric A.
  Blanchard

  	
   

  
					

 

3

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