Document:

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                                                                    EXHIBIT 10.1

                 2005 SHAREHOLDER VALUE CREATION INCENTIVE PLAN

      Participants designated by the Compensation and Options Committee of the
Board of Directors of the Company (the "Committee") shall receive a grant having
a Threshold, Target, and Maximum value designated in the grant. Grants are
payable solely in cash. All grants vest upon completion of service to the
following dates:

      All grants with Target value less
      than $100,000 vest 100% on                September 30, 2007, payable on
                                                November 1, 2007

      All grants with Target value of
      $100,000 or greater vest:    50% on       September 30, 2007, payable on
                                                November 1, 2007
                                   50% on       September 30, 2008, payable on
                                                October 1, 2008

      All grants vest 100% at Maximum upon a change in control (as described in
the regulations under Section 409A of the IRC).

      Any grant to an employee whose service terminates for any reason prior to
vesting shall terminate and have no value, except (i) as the Committee, in its
sole discretion may determine otherwise, and (ii) that any unvested portion of a
grant to any employee who becomes disabled (as defined in Section 409A of the
IRC) or dies after September 30, 2007 and prior to September 30, 2008 shall vest
on the date of disability (as defined in Section 409A of the IRC) or death and
be payable as soon as practical thereafter; provided that the payment to any
specified employees (as defined in Section 409A of the IRC) will be made not
sooner than six months after the termination of employment.

      Except as otherwise provided by the Committee, the value of any grant
shall be determined on the basis of the achievement of the following two
metrics:

      1. Realized Synergies. The amount of synergies from the acquisition of
Gulf States Pulp and Paperboard and Packaging Operations and actions taken to
improve the efficiency and effectiveness of the combined operations thereafter
realized and sustained shall be measured at the end of the Company's fiscal year
ended September 30, 2007 to establish the then annualized run rate of realized
and sustained synergies. The Threshold, Target and Maximum amounts will be $13.8
million, $18.4 million, and $23.0 million. The value of the portion of an award
measured by Realized Synergies shall be $0 if synergies are less than Threshold,
Threshold if synergies are equal to Threshold, Target if synergies are equal to
Target, Maximum if equal to or more than Maximum and valued by straight line
interpolation from Threshold to Target and Target to Maximum if between those
amounts.

      2. Debt to EBITDA. The ratio of the Company's consolidated debt as of
September 30, 2007 to annualized EBITDA for the period April 1, 2007 to
September 30, 2007 shall be calculated in accordance with the rules set forth
below and the value of any portion of an award measured thereby shall be $0 if
the ratio is higher than 3.8, Threshold if the ratio is 3.8, Target if equal to
3.5 and Maximum if 3.2 or higher, and by straight line interpolation if the
ratio is from Threshold to Target or Target to Maximum.

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      The following rules will apply when calculating EBITDA under this Plan:

      EBITDA Calculation: The actual EBITDA shall be calculated in accordance
with the Company's published financial statements, except that the Committee
shall adjust such calculations to exclude the effect of non-recurring items of
gain or loss. Without limiting the generality of the foregoing, the Committee
shall exclude:

   -  Acquisitions - with respect to acquisitions, the Committee shall exclude
      the results of acquired operations and reduce debt by the purchase price
      therefore from the date of closing of such acquisition, unless the
      Committee determines that such acquisition should not be excluded.

   -  Discontinued or sold operations - with respect to discontinued or sold
      operations, the Committee shall include the actual results of such
      operations until such date as the Company discontinues or sells them. In
      addition, the Committee shall exclude all severance costs, shut down
      costs, write offs and other one-time costs and gains relating to such
      discontinued or sold operations.

   -  Plant closings - with respect to each closed facility, the Committee shall
      include the actual results of such facility until that date that the
      Company begins to cease operations at such facility. In addition, the
      Committee shall exclude all severance costs, shut down costs, write offs
      and other one-time costs and gains relating to each closed facility.

   -  Severance costs - the Committee shall exclude all severance costs related
      to a workforce reduction of ten or more employees.

   -  Extraordinary items - the Committee shall exclude the effects of any
      extraordinary items as defined in GAAP.

   -  Cumulative effect of accounting changes - the Committee shall exclude the
      effects of any cumulative effect of accounting changes.

   -  Prior period accounting error - the Committee shall exclude any
      adjustments made to the accounting records of the Company that relate to
      any prior period.

   -  Asset impairment charges - the Committee shall exclude asset impairment
      charges, including goodwill adjustments taken under FAS 142.

   -  New accounting pronouncements - the Committee shall eliminate the effects
      of any cumulative effect of any new accounting pronouncements with which
      the Company complies.

   -  DuraFresh patent litigation - the Committee shall exclude the costs of the
      Durafresh patent litigation.<PAGE>

                            KENDLE INTERNATIONAL INC.        Exhibit 10.20(e)(5)
                        1998 EMPLOYEE STOCK PURCHASE PLAN
                               AMENDMENT NUMBER 5

      This Amendment No. 5 to the Kendle International Inc. 1998 Employee Stock
Purchase Plan (the "Plan"), as adopted by the Board of Directors of Kendle
International Inc. ("Kendle") on March 24, 1998 and by Kendle's shareholders on
May 21, 1998, as amended, is hereby amended further in the following respects:

      1.    DEFINITIONS. All capitalized terms herein, unless specifically
            defined in this Amendment No. 5, shall have the meanings given to
            them in the Plan.

      2.    AMENDMENTS. The fourth paragraph of Section 9 is hereby superseded
            and replaced in its entirety by the following new paragraph:

            "Upon termination of the Plan, cash equal to any remaining balances
            shall be delivered promptly to such participant."

      3.    CONDITION. This Amendment No. 5 to the Plan shall become effective
            only upon the approval (by written consent or otherwise) of Kendle's
            Board of Directors or of an authorized committee or subcommittee
            thereof.

      4.    AFFIRMATION. Except as modified above, all other provisions of the
            Plan, as previously amended, shall remain unchanged and in full
            force and effect.

In Witness whereof, this Amendment No. 5 has been executed as of August ____,
2005.

                                                     Kendle International Inc.

                                                     -------------------------
                                                     Karl Brenkert III
                                                     Secretary

                                       32<PAGE>

                                  EXHIBIT 10.1

                                  OFFER LETTER

[REYNOLDS & REYNOLDS. LOGO]

                                                                  March 10, 2005

Terri Mulcahey
61397 Brookway Drive
South Lyon, MI 48178

Dear Terri:

I have enjoyed the opportunity to get to know you and am pleased to offer you a
promotion to Senior Vice President, Sales and Services. You will be a member of
our executive committee, and one of the reporting officers for the company.

As you know from our discussions, the capabilities of our sales and services
groups are critical to our success as we seek competitive advantage in our
marketplace. Your leadership is a critical part of this effort. You will have
the opportunity to make a substantial and visible contribution to the success of
Reynolds and Reynolds.

The specifics of the offer are outlined as follows:

Base Pay

Your base salary will be $270,000 annually, paid bi-weekly. You will be eligible
for a salary increase effective November 1, 2005. We anticipate your start date
to be March 21, 2005.

Annual Bonus

Under this plan, as an executive of Reynolds and Reynolds, you can earn up to
90% of salary based upon the company's financial performance. The current
performance measures are return on capital and sales growth. This bonus is
payable in November based on FY'05 performance.

Personal Performance Bonus

The personal performance bonus is an annual program based upon your personal
contribution to the company's overall success. You are eligible for a bonus up
to 20% of base salary in the program. This bonus is payable in November based on
FY'05 performance.

Stock

As a sign-on bonus, we will award you 10,000 restricted shares on your start
date. The components of the restricted shares are as follows: 5,000 will have
time-based restrictions and the remaining 5,000 will have performance-based
restrictions. All restricted shares will contain a 3 year cliff vesting
provision (100% vesting after 3 years).

Stock Ownership Guidelines

The company has established stock ownership guidelines for executives. Under the
guidelines, as a reporting officer of Reynolds, you must meet the annual
ownership requirements in order to receive your full annual stock option grant.
As a reporting officer, you must own 2 x your base salary within a five year
period. Note that your unvested restricted shares count towards this
requirement.

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Relocation

Terri, this role is based in Dayton and thus we would expect you to make a full
relocation by June 30, 2005, or as otherwise agreed by the CEO. The company does
provide a very comprehensive relocation package. Specifically, the company will
provide to you 4 months of temporary housing (maximum $2,000 per month). Please
feel free to contact Human Resources for assistance in relocating to the Dayton
area.

Car Allowance

You will receive a monthly car allowance of $775.00 to support your ownership
and operation of a late model car. This is a cash payment made directly to you
in your regular paycheck and is in lieu of your current fleet vehicle.

Miscellaneous Perquisites

As an executive of Reynolds and Reynolds, you will be reimbursed up to $6,000
per year for tax preparation and financial and estate planning. Additionally,
health club fees will be reimbursed up to $1,500 per year for management
committee members. Finally, the company asks each executive to have an annual
physical examination and will pay for the exam up to $1,000.

Supplemental Retirement Plan

As an executive of Reynolds and Reynolds, you will participate in a
non-qualified supplemental benefit plan which provides supplemental retirement
income to you and your family in the event of retirement or death. This plan is
a two-part benefit. To receive payment of Part 1 or Part 2, you must satisfy all
the conditions for payment as defined in the plan document.

Part 1: Salary Continuation

The annual benefit equals 6.5% of your final average earnings (highest five
consecutive years from the last ten years) paid as a monthly annuity for life.
To be vested in this benefit, you must have 15 years of service with Reynolds
and Reynolds. The benefit is reduced by .4% per month for each month the first
payment precedes the date you attain age 60. In the case of death before
payments begin, an equivalent benefit will be paid to your beneficiary if the
above requirements have been met at the time of your death.

Part 2: Basic Supplemental

This benefit is the difference between your actual Qualified Pension Plan
benefit and the Qualified Pension Plan benefit you would have received if it had
been calculated without regard to required IRS compensation limitations. The
benefit is reduced by .4% per month for each month the first payment precedes
the date you attain age 65. If you satisfied the service requirements as of your
date of death, benefit payments will be made to your beneficiary as set forth in
the plan document.

Separation following a Change-in-Control

As a key executive of the Reynolds & Reynolds Company you will be eligible to
participate in a change in control agreement that protects you under specific
circumstances following a change in control (as defined in the agreement). A
copy of this agreement will be forwarded to you upon receipt of this signed
offer letter.

Vacation

As an executive of Reynolds and Reynolds, you are entitled to five weeks
vacation.

Company-Wide Benefits

All employees participate in a flexible benefit program (options include
medical, dental, vision, life and disability insurance, spending accounts,
etc.), a 401(k) savings plan, and a defined benefit pension plan.

We believe the total compensation package for Reynolds and Reynolds' executives,
as approved by the Board of Directors, is very competitive and attractive. In
the future, should the Board make any changes in the executives' compensation
program, you will obviously be notified.

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This offer is contingent upon satisfactorily passing a company medical exam
including a drug test, which will be arranged for you, any background
verifications which are part of our hiring process, and completion of the
Employment Eligibility Verification (I-9) process required by the Immigration
Department.

We have enclosed two copies of the offer letter and we ask that you return one
to acknowledge your acceptance.

Terri, we are looking forward to your acceptance of our offer. I am confident
this is an excellent opportunity for Reynolds and for you. You can have
significant impact at Reynolds! If you have any questions, or if we can provide
any additional information, please let me know.

Best Regards,

Fin O'Neill
President and CEO

ACCEPTANCE

____________________________    ________________________
Terri Mulcahey                       Date

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