Document:

EXHIBIT 10.1

 

SEPARATION
AGREEMENT AND RELEASE

 

This Separation Agreement and Release (“Agreement”),
entered into on February 18, 2005 and effective as of February 7, 2005 is by
and between James W. Nolan (“Nolan”) and PepsiAmericas, Inc., a Delaware corporation.,
each of its subsidiaries or affiliates (hereinafter, collectively, the “Company”).

 

RECITALS

 

WHEREAS, Nolan has been employed by the Company as
Executive Vice President – U.S. Operations, and

 

WHEREAS, Nolan has submitted his voluntary resignation
from the Company to pursue other employment; and

 

WHEREAS, Nolan is a party to certain stock option
agreements with the Company dated February 21, 2002, February 26, 2003 and
February 16, 2004 awarding him an aggregate of 84,500 non-qualified stock options
pursuant to the Company’s 2000 Stock Incentive Plan, and

 

WHEREAS, Nolan is a party to certain Restricted Stock
Agreements dated February 21, 2002, February 26, 2003 and February 16, 2004
awarding him an aggregate of 42,800 restricted shares pursuant to the Company’s
2000 Stock Incentive Plan; and

 

WHEREAS, Nolan participated in the Company’s 2004
Annual Incentive Plan; and

 

WHEREAS, the Company has agreed that Nolan’s
employment will be extended to end on March 4, 2005, with his last day working
at the Company being February 18, 2005, thereby providing Nolan additional
compensation and benefits under the agreements and plans set forth above; and

 

WHEREAS, the Company has certain claims against Nolan
for reimbursement of expenses related to his relocation from Connecticut to
Illinois which claims the Company is willing to waive; and

 

WHEREAS, Nolan and the Company intended to enter into
this Agreement to set forth the terms and conditions under which Nolan and the
Company agree to end their employment relationship.

 

NOW THEREFORE, Nolan and the Company, in consideration
of the mutual promises and covenants hereinafter set forth, and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, agree as follows:

 

AGREEMENT

 

1.                             Resignation.  Nolan’s last day of employment with the
Company will be March 4, 2005 (“Effective Date”), with his last day working at
the Company being February 18, 2005. 
Nolan resigns as an officer of the Company and all of its subsidiaries
and affiliates, as applicable,

 

 

as of the February 18, 2005. 
Nolan also resigns as a director of the Company’s subsidiaries and
affiliates, as applicable, as of February 18, 2005.

 

2.                             Final
Wages.  Nolan shall receive his
salary through the February 18, 2005, which salary will be paid in accordance
with the Company’s normal payroll procedures. 
The Company shall deduct from his salary applicable withholdings,
including FICA and Federal and State income tax.  Nolan acknowledges and agrees that Nolan is
not entitled to or owed any additional compensation or benefits from the
Company, except as specified herein.

 

3.                             Company
Sponsored Benefit Plans.  Commencing
on the Effective Date, Nolan may elect to continue to participate in the group
health and dental insurance programs, as allowed by law and the terms of those
benefit plans.  A COBRA/continuation
notice more specifically advising Nolan of his rights will be forwarded to
him.  Nolan’s participation and interest,
if any, in the Company’s 401(k) Plan and Executive Deferred Compensation Plan
shall be governed by the terms of those plans. 
PepsiAmericas’ contributions to Nolan’s executive disability insurance,
if any, will be cancelled as of the Effective Date.  However, Nolan may continue the executive
disability insurance on an individual basis to the extent allowable under the
policy.  Nolan’s participation in the
Company’s executive financial planning program will end as of the Effective
Date.

 

4.                             2004
Annual Incentive Bonus.  The Company
will pay Nolan on the Effective Date his full bonus pursuant to the 2004 Annual
Incentive Plan in the amount of $355,459, less applicable withholdings.

 

5.                             Stock
Options.  Nolan’s stock options will
vest in accordance with his stock option agreements.  Accordingly, Nolan will receive the options
scheduled to vest in February, 2005. 
Nolan will have the right to exercise those vested stock options
pursuant to the terms of his stock option agreements at any time prior to March
4, 2005.

 

6.                             Restricted
Stock.  Nolan’s restricted stock will
vest in accordance with his restricted stock agreements.  Accordingly, the restrictions scheduled to
lapse in February, 2005 on certain shares will do so, thereby entitling Nolan
to unrestricted ownership of such shares.

 

7.                             Relocation
Expenses.  The Company hereby
unconditionally waives and releases any legal rights or claims it has against
Nolan for reimbursement any expenses paid to, or on behalf of, Nolan under the
Company’s homeowner relocation policy.

 

8.                             Consideration.  Nolan specifically acknowledges and agrees
that his employment through the Effective Date and the resulting benefits set
forth in Paragraphs 2 – 7 hereof constitute full and adequate consideration for
this Agreement.

 

9.                             Release.  Nolan, including anyone who has or obtains
any legal rights or claims through or from Nolan, hereby unconditionally
releases and discharges the Company, its affiliates and related entities,
predecessors, successors, any Company pension, welfare or other employee
benefit plan, and all of the foregoing entities’ owners, officers, directors,
shareholders, partners, employees, agents, consultants, representatives,
attorneys, trustees, administrators, and any entity affiliated with any of the
foregoing, from any and all past or present claims, demands,

 

2

 

obligations, actions, causes of action, damages,
costs, debts, liabilities, expenses and compensation of any nature, whether for
compensatory or punitive damages, and whether based in tort, contract, or other
theory of recovery (collectively the “Claims” and individually a “Claim”),
including but not limited to any Claims arising under Title VII of the Civil
Rights Act of 1964, the Civil Rights Act of 1991, the Americans with
Disabilities Act, the Family and Medical Leave Act, the Employee Retirement
Income Security Act of 1974 (ERISA), each as may have been amended, or any
state or local discrimination law, and those based on wrongful discharge,
breach of an implied or express contract, promissory estoppel, emotional
distress, defamation, misrepresentation, fraud, public policy, common law, good
faith and fair dealing, negligence, invasion of privacy, or any other Claim
that Nolan now has or that may hereafter arise out of the relationship between
the parties to date, including the termination of Nolan’s employment, whether
known or unknown, foreseen or unforeseen, at the time of executing this
Agreement.  Nolan states and represents
that Nolan has not and agrees to not institute any lawsuit against or otherwise
sue the Company or any of those named in this paragraph based on any Claim
relating in any way to Nolan’s relationship with the Company up to the time of
executing this Agreement.  In the event
that any such Claim or action has been or is asserted by Nolan or anyone acting
directly or indirectly on Nolan’s behalf, Nolan agrees that this release shall
act as a total and complete bar to any recovery or relief by Nolan.  The foregoing release shall not apply to and
shall not affect the parties’ right to enforce the terms of this Agreement, to
seek remedy for breach of this Agreement, or to subsequently assert any Claim
arising from acts occurring after the effective date of this release.  Further, the foregoing release shall not
alter or affect Nolan’s rights to indemnification and reimbursement of expenses
prescribed by Article V of the Company’s By-Laws, as amended and restated on
February 16, 2001.

 

10.                           Return
of Property.  Employee represents and
agrees that on or before the Effective Date, he will promptly deliver to the
Company all Company property in his possession or control (including, but not
limited to, memoranda, records, notes, plans, manuals, notebooks, disks,
diskettes, tapes and any other materials containing any proprietary information
of the Company, intellectual property or trade secrets) irrespective of the
location or form of such material.

 

11.                           Cooperation.  Nolan agrees to be reasonably available for
consultation with and assistance to Company representatives with respect to
matters and issues within Nolan’s job responsibilities or knowledge during
Nolan’s employment by the Company.  Nolan
acknowledges and agrees that such cooperation with the Company is necessary for
a proper and orderly transition and that the consideration set forth herein
fully compensates Nolan for this reasonable cooperation.

 

12.                           Non-Disparagement.  Nolan agrees not to make any negative or
disparaging remarks or comments about the Company, its affiliated or related
companies, or any of the foregoing entities’ directors, officers, employees,
products or services.  The Company shall
direct its Chief Executive Officer, President, and Chief Financial Officer to
not make any negative or disparaging remarks or comments about Nolan.

 

13.                           Confidentiality.  Nolan agrees to keep the terms and conditions
of this Agreement confidential and not disclose them to any person other than
Nolan’s immediate family, taxing authorities, attorneys, or accountants as
necessary or as required by law.  Nolan
understands and

 

3

 

agrees that any disclosure in violation of this
confidentiality agreement made by or through Nolan, or those listed in the
preceding sentence, constitutes a material breach of this Agreement.  Nolan agrees to not introduce this Agreement
in any litigation or proceeding involving the Company, except any action to
enforce, or challenge the enforceability of, the terms of this Agreement.

 

14.                           Non-Disclosure
Agreement.  Nolan agrees to hold in
confidence and to not directly or indirectly reveal, disclose or transfer (a)
at any time any trade secret information belonging to or relating to the
Company, and (b) for the next one (1) year any proprietary, privileged or
confidential information that is not a trade secret, within or to a person or
entity doing business in the States or foreign countries where the Company
operates as of the Effective Date.  All
such protected information includes, but is not limited to, the following types
of information and other information of a similar nature (whether or not
reduced to writing and whether in computerized, electronic or other form):  planning and financial information, sales and
marketing information, business strategy, personnel information, customer
information, information pertaining to organizational structure or plans, the
names, background or experience of any employees of the Company and its
affiliates and other similar information. 
These restrictions do not apply to information (other than information
about Company’s employees) that is generally and publicly known in the liquid
refreshment beverage industry or that becomes generally and publicly known
through means other than the act or omission of Nolan.  If Nolan has any doubt as to whether certain
information is subject to the protections of this paragraph, he should discuss
the matter with Kenneth E. Keiser, or his replacement if Mr. Keiser is no
longer an employee of the Company.  In
the event that Nolan is requested or required (by oral questions,
interrogatories, requests for information or documents, subpoena, civil
investigative demand or other process) to disclose any proprietary, privileged,
confidential or trade secret information belonging to or relating to the
Company, it is agreed that Nolan will provide the Company with advance and
prompt notice of any such request or requirement so that the Company may seek
an appropriate protective order or waive Nolan’s compliance with the provisions
of this Agreement.

 

15.                           Noncompetition
Agreement.  Nolan agrees for a period
of one (1) year following the Effective Date, Nolan shall not engage or be
interested in a business within the United States that generates more than
twenty (20) percent of its annual revenue from any combination of the
manufacture, sale or distribution of carbonated soft drinks.  Nolan shall be deemed to be interested in a
business if Nolan is engaged or interested in that business as a stockholder,
director, officer, employee, salesman, sales representative, agent, partner,
individual proprietor, consultant or otherwise, but not if such interest is
limited solely to the ownership of 2% or less of the equity or debt securities
of any class of a corporation whose shares are listed for trading on a national
securities exchange or traded in the over-the-counter market.

 

16.                           Anti-raiding
Agreement.  Nolan agrees for a period
of eighteen (18) months following the Effective Date, neither he, nor any
individuals directly or through others reporting to him (including any
employees in any business units, divisions or entities for which he is
responsible), shall cause any entity with which Nolan is employed or its
affiliated entities, including Sara Lee Corporation, or any of its affiliated
entities, to divert, solicit, hire or employ, or attempt to divert, solicit,
hire or employ, any Band 9 or higher employees and all executive employees of
the Company during such eighteen (18) month period.

 

4

 

17.                           Breach.  The consideration provided to Nolan
identified in Paragraph 4 is subject to termination, reduction, cancellation,
or recoupment in the event that Nolan has taken any action or engaged in any
conduct violative of the terms of this Agreement.  In addition, Nolan agrees that breach by him of
any provision of this Agreement will cause the Company irreparable harm that is
not fully remedied by monetary damages. 
In the event of a breach or threatened breach by Nolan of any provision
of this Agreement, the Company shall be entitled to an injunction restraining
Nolan from breaching the Agreement, without posting a bond or other
security.  Nothing herein shall be
construed as prohibiting the Company from pursuing any other equitable or legal
remedies available to it for such breach or threatened breach.  To the extent that Nolan is in violation of
Paragraph 14, 15 or 16 of this Agreement, the applicable period shall be tolled
during such period of non-compliance, the intent of which is to provide the
Company with the full period of compliance.

 

18.                           Severability
and Blue Penciling.  In case any one
or more of the provisions of this Agreement should be determined invalid,
illegal, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions contained in this Agreement will not
in any way be affected or impaired thereby. 
If any particular provision of this Agreement is adjudicated to be
invalid or unenforceable, Nolan and the Company specifically authorize the
court making such determination to edit the invalid or unenforceable provision
to allow this Agreement and its provisions to be valid and enforceable to the
fullest extent allowed by law or public policy.

 

19.                           Merger.  This Agreement, and the employee benefit
plans in which Nolan is a participant, set forth the entire understanding
between the parties regarding the subject matter hereof and supersede all prior
oral and written agreements and communications between the parties regarding
the same.

 

20.                           Assignment.  No assignment of this Agreement shall be made
by Nolan, and any such purported assignment shall be null and void.

 

21.                           Governing
Law.  This Agreement shall be
construed and interpreted in accordance with the internal laws of the State of
Illinois, without regard to conflicts of laws provisions, and the parties agree
that that any claims relating to this Agreement must be brought only within the
State or Federal Courts sitting in Chicago, Illinois.

 

22.                           Voluntary
and Knowing Action.  Nolan
acknowledges that he has read and understands the terms of this Agreement and
that Nolan is voluntarily and without duress entering into this Agreement with
full knowledge of its implications.  In
that this Agreement establishes certain legally enforceable rights and
obligations, the Company expressly advises Nolan to consult with an attorney
prior to signing this Agreement.

 

THE REMAINDER OF THIS
PAGE INTENTIONALLY BLANK

 

5

 

IN WITNESS WHEREOF,
the parties have caused this Separation Agreement and Release to be executed on
the date set forth below.

 

	
   

  	
  PEPSIAMERICAS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Anne D. Sample

  	
   

  
	
   

  	
  Its: Senior Vice
  President - HR

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ James W.
  Nolan

  	
   

  
	
   

  	
  James W. Nolan

  

 

6EXHIBIT 10.2

 

PEPSIAMERICAS, INC. 2000 STOCK INCENTIVE PLAN

AMENDMENT NO. 3

 

Pursuant to
the authority retained by PepsiAmericas, Inc. (the “Company”) under Section 13
of the PepsiAmericas, Inc. 2000 Stock Incentive Plan (the “Plan”), and the
action of the Company at the February 24, 2005 meeting of the Board of
Directors of the Company, the Company hereby amends the Plan in the following
manner:

 

Section 1  “Definitions”
shall be amended by inserting a new sentence at the end of subsection (k), to
read as follows: “Restricted Stock Award shall also include a Restricted Stock
Unit Award, which is any award of the right to receive a cash payment equal to
the fair market value of Common Stock upon the occurrence of some future event,
such as the completion of a stated period of employment, under the terms set
forth in an agreement.”

 

Section 8 “Restricted Stock Awards” shall be amended as follows: “(A)
Restriction Period to Be Established by the Committee.  At the time of the making of a Restricted
Stock Award, the Committee shall establish a period of time (the “Restriction
Period”) applicable to such award.  The
Committee may establish different Restriction Periods from time to time and
each Restricted Stock Award may have a different Restriction Period, in the
discretion of the Committee.  The
Committee may, in its discretion, establish Performance Measures which shall be
satisfied or met during the Restriction Period as a condition to the vesting of
all or a portion of the shares or units subject to a Restricted Stock Award and
for the forfeiture of all or a portion of such shares or units if such
Performance Measures shall not be satisfied or met during the Restriction
Period.  Notwithstanding anything
contained herein to the contrary, in the case of a Restricted Stock Award
intended to be qualified performance-based compensation under Section 162(m)
and the rules and regulations thereunder, shares or units subject thereto shall
not be vested until the Committee certifies in writing that the applicable
Performance Measures for the performance period have in fact been achieved.

 

(B)  Other Terms and Conditions.  Common Stock, if any, when awarded pursuant
to a Restricted Stock Award, shall be represented by a stock certificate or
book-entry credits registered in the name of the Holder who receives the
Restricted Stock Award or a nominee for the benefit of the Holder.  The Holder shall have the right to receive
dividends (or the cash equivalent thereof) during the Restriction Period and
shall also have the right to vote such Common Stock and all other stockholder
rights (in each case unless otherwise provided in the agreement evidencing the
Restricted Stock Award), with the exception that (i) the Holder shall not be
entitled to delivery of the stock certificate (or the removal of restrictions
in the Corporation’s books and records) until the Restriction Period
established by the Committee pursuant to Paragraph 8(A) shall have expired or
lapsed, (ii) the Corporation shall retain custody of the stock certificate
during the Restriction Period, (iii) the Holder may not sell, transfer, pledge,
exchange, hypothecate or dispose of such Common Stock during the Restriction
Period, and (iv) a breach of restriction or breach of terms and conditions
established by the Committee pursuant to the Restricted Stock Awards shall
cause a forfeiture of the Restricted Stock Award.  If requested by the Corporation, a Holder of
a Restricted Stock Award shall deposit with the Corporation stock powers or
other instruments of assignment (including a power of attorney), each endorsed
in blank with a guarantee of signature if deemed necessary or appropriate by
the Corporation, which would permit transfer to the Corporation of all or a
portion of the shares of

 

 

Common Stock subject to the
Restricted Stock Award, if any, in the event such award is forfeited in whole
or in part.  A distribution with respect
to shares of Common Stock, other than a distribution in cash, shall be subject
to the same restrictions as the shares of Common Stock with respect to which
such distribution was made, unless otherwise determined by the Committee.  The Committee may, in addition, prescribe
additional restrictions, terms or conditions upon or to the Restricted Stock
Award in the manner prescribed by Paragraph 4. 
The Committee may, in its sole discretion, also establish rules
pertaining to the Restricted Stock Award in the event of termination of
employment or service (by Retirement, disability, death or otherwise) of a
Holder of such award prior to the expiration of the Restriction Period.

 

(C)  Restricted Stock Award Agreement.  Each Restricted Stock Award shall be
evidenced by an agreement in such form and containing such provisions not
inconsistent with the provisions of the Plan as the Committee from time to time
shall approve.

 

(D)  Payment for Restricted Stock.  Restricted Stock Awards may be made by the
Committee whereby the Holder receives Common Stock subject to those terms,
conditions and restrictions established by the Committee but is not required to
make any payment for said Common Stock. 
The Committee may also establish terms as to each Holder whereby such
Holder, as a condition to the Restricted Stock Award, is required to pay, in
cash or other consideration, all (or any lesser amount than all) of the fair
market value of the Common Stock, determined as of the date the Restricted
Stock Award is made.

 

Notwithstanding
the above, if the Restricted Stock Award is in the form of a Restricted Stock
Unit Award, the Holder shall not be entitled to receive Common Stock at any
time during or after the Restriction Period. 
Rather, the Holder shall be entitled to a cash payment equal to the fair
market value of the Common Stock at the end of the Restriction Period.

 

(E)  Termination of Employment or Service or Death
of Holder.  A Restricted Stock Award
shall terminate for all purposes if the Holder does not remain continuously in
the employ or service of the Corporation or a subsidiary at all times during
the applicable Restriction Period, except as may otherwise be determined by the
Committee.”

 

This Amendment
No. 3 shall be effective as of February 24, 2005.

 

	
   

  	
  PepsiAmericas,
  Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian D.
  Wenger

  	
   

  
	
   

  	
  Its:
  Secretary

  
	
   

  	
   

  
	
   

  	
  Dated:
  February 24, 2005

  

 

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]