PBG Pension Equalization Plan (Plan Document for the Pre-409A Program)



 Exhibit 10.66 
 PBG 
 PENSION EQUALIZATION PLAN 

(PEP) 

Effective as of April 6, 1999 







 PEP PENSION EQUALIZATION PLAN 

Table of Contents 
  

							
	 	  	 	  	Page
No.	 
	 ARTICLE I – FOREWORD
	  	 	4	  
	 ARTICLE II – Definitions and Construction
	  	 	5	  
	 2.1
	  	Definitions	  	 	5	  
	 2.2
	  	Construction	  	 	14	  
	 ARTICLE III – Participation and Service
	  	 	16	  
	 3.1
	  	Participation	  	 	16	  
	 3.2
	  	Service	  	 	16	  
	 3.3
	  	Credited Service	  	 	16	  
	 ARTICLE IV – Requirements for Benefits
	  	 	17	  
	 4.1
	  	Normal Retirement Pension	  	 	17	  
	 4.2
	  	Early Retirement Pension	  	 	17	  
	 4.3
	  	Vested Pension	  	 	17	  
	 4.4
	  	Late Retirement Pension	  	 	17	  
	 4.5
	  	Disability Pension	  	 	17	  
	 4.6
	  	Pre-Retirement Spouse’s Pension	  	 	18	  
	 4.7
	  	Vesting	  	 	19	  
	 4.8
	  	Time of Payment	  	 	19	  
	 4.9
	  	Cashout Distributions	  	 	19	  
	 4.10
	  	Coordination with Long Term Disability Plan	  	 	19	  
	 4.11
	  	Reemployment of Certain Participants	  	 	20	  
	 ARTICLE V – Amount of Retirement Pension
	  	 	21	  
	 5.1
	  	PEP Pension	  	 	21	  
	 5.2
	  	PEP Guarantee	  	 	22	  
	 5.3
	  	Amount of Pre-Retirement Spouse’s Pension	  	 	27	  
	 5.4
	  	Certain Adjustments	  	 	29	  
	 5.5
	  	Excludable Employment	  	 	30	  
	 ARTICLE VI – Distribution Options
	  	 	31	  
	 6.1
	  	Form and Timing of Distributions	  	 	31	  
	 6.2
	  	Available Forms of Payment	  	 	33	  
	 6.3
	  	Procedures for Elections	  	 	37	  
	 6.4
	  	Special Rules for Survivor Options	  	 	40	  
	 6.5
	  	Designation of Beneficiary	  	 	41	  
	 ARTICLE VII – Administration
	  	 	42	  
	 7.1
	  	Authority to Administer Plan	  	 	42	  
	 7.2
	  	Facility of Payment	  	 	42	  
	 7.3
	  	Claims Procedure	  	 	42	  
	 7.4
	  	Effect of Specific References	  	 	44	  
	 ARTICLE VIII – Miscellaneous
	  	 	45	  


  
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	 8.1
	  	Nonguarantee of Employment	  	 	45	  
	 8.2
	  	Nonalienation of Benefits	  	 	45	  
	 8.3
	  	Unfunded Plan	  	 	45	  
	 8.4
	  	Action by the Company	  	 	45	  
	 8.5
	  	Indemnification	  	 	46	  
	ARTICLE IX – Amendment and Termination	  	 	47	  
	 9.1
	  	Continuation of the Plan	  	 	47	  
	 9.2
	  	Amendments	  	 	47	  
	 9.3
	  	Termination	  	 	47	  
	ARTICLE X – ERISA Plan Structure	  	 	48	  
	ARTICLE XI – Applicable Law	  	 	50	  
	ARTICLE XII – Signatures	  	 	51	  
	ARTICLE A – Accruals for 1993 and 1994	  	 	53	  
		
	ARTICLE P98 – PEPSICO Special Early Retirement Benefits	  	 	56	  
		
	ARTICLE IPO – Transferred And Transition Individuals	  	 	58	  


  
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 ARTICLE I – Foreword 

The PEP Pension Equalization Plan (“PEP” or “Plan”) has been established by PBG for the benefit of salaried employees
of the PBG Organization who participate in the PBG Salaried Employees Retirement Plan (“Salaried Plan”). PEP provides benefits for eligible employees whose pension benefits under the Salaried Plan are limited by the provisions of the
Internal Revenue Code of 1986, as amended. In addition, PEP provides benefits for certain eligible employees based on the pre-1989 Salaried Plan formula. 
 This Plan is first effective April 6, 1999. The Plan is a successor plan to the PepsiCo Pension Equalization Plan, which was last restated effective as of January 1, 1989. The PepsiCo Pension
Equalization Plan covers eligible employees at the various divisions of PepsiCo, Inc., including eligible employees who are employed at various Pepsi-Cola Company facilities. On April 6, 1999, when this Plan became effective, PBG had its
initial public offering. PBG employs many of the individuals employed at Pepsi-Cola Company facilities who were covered under the PepsiCo Pension Equalization Plan. This initial Plan document closely mirrors the PepsiCo Pension Equalization Plan
document, including its historical provisions which are relevant for eligibility and benefit determinations under this Plan. 

  
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 ARTICLE II – Definitions and Construction 

2.1 Definitions: This section provides definitions for certain words and phrases listed below. These definitions can be
found on the pages indicated. 
  

							
	 (a)
	  	Accrued Benefit	  	 	6	  
	 (b)
	  	Actuarial Equivalent	  	 	6	  
	 (c)
	  	Advance Election	  	 	7	  
	 (d)
	  	Annuity	  	 	7	  
	 (e)
	  	Annuity Starting Date	  	 	7	  
	 (f)
	  	Authorized Leave of Absence	  	 	7	  
	 (g)
	  	Code	  	 	7	  
	 (h)
	  	Company or PBG	  	 	8	  
	 (i)
	  	Covered Compensation	  	 	8	  
	 (j)
	  	Credited Service	  	 	8	  
	 (k)
	  	Disability Retirement Pension	  	 	8	  
	 (l)
	  	Early Retirement Pension	  	 	8	  
	 (m)
	  	Effective Date	  	 	8	  
	 (n)
	  	Eligible Spouse	  	 	8	  
	 (o)
	  	Employee	  	 	8	  
	 (p)
	  	Employer	  	 	8	  
	 (q)
	  	ERISA	  	 	9	  
	 (r)
	  	Highest Average Monthly Earnings	  	 	9	  
	 (s)
	  	Late Retirement Date	  	 	9	  
	 (t)
	  	Late Retirement Pension	  	 	9	  
	 (u)
	  	Normal Retirement Age	  	 	9	  
	 (v)
	  	Normal Retirement Date	  	 	9	  
	 (w)
	  	Normal Retirement Pension	  	 	9	  
	 (x)
	  	Participant	  	 	9	  
	 (y)
	  	PBG Organization	  	 	9	  
	 (z)
	  	PBGC	  	 	10	  
	 (aa)
	  	PBGC Rate	  	 	10	  
	 (bb)
	  	Pension	  	 	10	  
	 (cc)
	  	PEP Election	  	 	10	  
	 (dd)
	  	PepsiCo Prior Plan	  	 	10	  
	 (ee)
	  	Plan	  	 	10	  
	 (ff)
	  	Plan Administrator	  	 	10	  
	 (gg)
	  	Plan Year	  	 	10	  
	 (hh)
	  	Pre-Retirement Spouse’s Pension	  	 	11	  
	 (ii)
	  	Primary Social Security Amount	  	 	11	  
	 (jj)
	  	Qualified Joint and Survivor Annuity	  	 	12	  
	 (kk)
	  	Retirement	  	 	13	  
	 (ll)
	  	Retirement Date	  	 	13	  


  
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	 (mm)
	  	Retirement Pension	  	 	13	  
	 (nn)
	  	Salaried Plan	  	 	13	  
	 (oo)
	  	Service	  	 	13	  
	 (pp)
	  	Severance from Service Date	  	 	13	  
	 (qq)
	  	Single Life Annuity	  	 	13	  
	 (rr)
	  	Single Lump Sum	  	 	14	  
	 (ss)
	  	Social Security Act	  	 	14	  
	 (tt)
	  	Taxable Wage Base	  	 	14	  
	 (uu)
	  	Vested Pension	  	 	14	  

 Where the
following words and phrases, in boldface and underlined, appear in this Plan with initial capitals they shall have the meaning set forth below, unless a different meaning is plainly required by the context. 

(a) Accrued Benefit: The Pension payable at Normal Retirement Date determined in accordance with Article V,
based on the Participant’s Highest Average Monthly Earnings and Credited Service at the date of determination. 
 (b) Actuarial Equivalent: Except as otherwise specifically set forth in the Plan or any Appendix to the Plan with respect to a specific benefit determination, a benefit of equivalent value
computed on the basis of the factors set forth below. The application of the following assumptions to the computation of benefits payable under the Plan shall be done in a uniform and consistent manner. In the event the Plan is amended to provide
new rights, features or benefits, the following actuarial factors shall not apply to these new elements unless specifically adopted by the amendment. 
 (1) Annuities and Inflation Protection: To determine the amount of a Pension payable in the form of a Qualified Joint and Survivor Annuity or optional form of survivor annuity, or as an annuity
with inflation protection, the factors applicable for such purposes under the Salaried Plan shall apply. 

  
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 (2) Lump Sums: To determine the lump sum value of a Pension, or a
Pre-Retirement Spouse’s Pension under Section 4.6, the factors applicable for such purposes under the Salaried Plan shall apply, except that when the term “PBGC Rate” is used in the Salaried Plan in this context it shall mean
“PBGC Rate” as defined in this Plan. 
 (3) Other Cases: To determine the adjustment to be made
in the Pension payable to or on behalf of a Participant in other cases, the factors are those applicable for such purpose under the Salaried Plan. 
 (c) Advance Election: A Participant’s election to receive his PEP Retirement Pension as a Single Lump Sum or an Annuity, made in compliance with the requirements of Section 6.3.

 (d) Annuity: A Pension payable as a series of monthly payments for at least the life of the
Participant. 
 (e) Annuity Starting Date: The Annuity Starting Date shall be the first day of the
first period for which an amount is payable under this Plan as an annuity or in any other form. A Participant who: (1) is reemployed after his initial Annuity Starting Date, and (2) is entitled to benefits hereunder after his reemployment,
shall have a subsequent Annuity Starting Date for such benefits only to the extent provided in Section 6.3(d). 
 (f) Authorized Leave of Absence: Any absence authorized by an Employer under the Employer’s standard personnel practices, whether paid or unpaid. 

(g) Code: The Internal Revenue Code of 1986, as amended from time to time. 

  
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 (h) Company or PBG: The Pepsi Bottling Group, Inc., a
corporation organized and existing under the laws of the State of New York, or its successor or successors. For periods before April 6, 1999, the Company was PepsiCo, Inc., a North Carolina corporation. 

(i) Covered Compensation: “Covered Compensation” as that term is defined in the Salaried Plan.

 (j) Credited Service: The period of a Participant’s employment, calculated in accordance
with Section 3.3, which is counted for purposes of determining the amount of benefits payable to, or on behalf of, the Participant. 
 (k) Disability Retirement Pension: The Retirement Pension available to a Participant under Section 4.5. 

(l) Early Retirement Pension: The Retirement Pension available to a Participant under Section 4.2.

 (m) Effective Date: The date upon which this Plan is effective, which is April 6, 1999
(except as otherwise provided herein). 
 (n) Eligible Spouse: The spouse of a Participant to whom
the Participant is married on the earlier of the Participant’s Annuity Starting Date or the date of the Participant’s death. 
 (o) Employee: An individual who qualifies as an “Employee” as that term is defined in the Salaried Plan. 

(p) Employer: An entity that qualifies as an “Employer” as that term is defined in the Salaried
Plan. 

  
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 (q) ERISA: Public Law No. 93-406, the Employee Retirement
Income Security Act of 1974, as amended from time to time. 
 (r) Highest Average Monthly Earnings:
“Highest Average Monthly Earnings” as that term is defined in the Salaried Plan, but without regard to the limitation imposed by section 401(a)(17) of the Code (as such limitation is interpreted and applied under the Salaried Plan).

 (s) Late Retirement Date: The Late Retirement Date shall be the first day of the month
coincident with or immediately following a Participant’s actual Retirement Date occurring after his Normal Retirement Age. 
 (t) Late Retirement Pension: The Retirement Pension available to a Participant under Section 4.4. 

(u) Normal Retirement Age: The Normal Retirement Age under the Plan is age 65 or, if later, the age at which
a Participant first has 5 Years of Service. 
 (v) Normal Retirement Date: A Participant’s
Normal Retirement Date shall be the first day of the month coincident with or immediately following a Participant’s Normal Retirement Age. 
 (w) Normal Retirement Pension: The Retirement Pension available to a Participant under Section 4.1. 

(x) Participant: An Employee participating in the Plan in accordance with the provisions of
Section 3.1. 
 (y) PBG Organization: The controlled group of organizations of which the
Company is a part, as defined by Code section 414 and regulations issued thereunder. An entity 

  
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shall be considered a member of the PBG Organization only during the period it is one of the group of organizations described in the preceding sentence. 

(z) PBGC: The Pension Benefit Guaranty Corporation, a body corporate within the Department of Labor
established under the provisions of Title IV of ERISA. 
 (aa) PBGC Rate: The PBGC Rate is 120
percent of the interest rate, determined on the Participant’s Annuity Starting Date, that would be used by the PBGC for purposes of determining the present value of a lump sum distribution on plan termination. 

(bb) Pension: One or more payments that are payable to a person who is entitled to receive benefits under
the Plan. 
 (cc) PEP Election: A Participant’s election to receive his PEP Retirement Pension
in one of the Annuity forms available under Section 6.2, made in compliance with the requirements of Sections 6.3 and 6.4. 
 (dd) PepsiCo Prior Plan: The PepsiCo Pension Equalization Plan. 
 (ee) Plan: The PBG Pension Equalization Plan, the Plan set forth herein, as it may be amended from time to time. The Plan is also sometimes referred to as PEP. For periods before
April 6, 1999, references to the Plan refer to the PepsiCo Prior Plan. 
 (ff) Plan
Administrator: The Company, which shall have authority to administer the Plan as provided in Article VII. 
 (gg) Plan Year: The initial Plan Year shall be a short Plan Year beginning on the Effective Date and ending on December 31, 1999. Thereafter, the Plan Year shall be the 12-month period
commencing on January 1 and ending on the next December 31. 

  
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 (hh) Pre-Retirement Spouse’s Pension: The Pension
available to an Eligible Spouse under Section 4.6. 
 (ii) Primary Social Security Amount: In
determining Pension amounts, Primary Social Security Amount shall mean: 
 (1) For purposes of determining the
amount of a Retirement, Vested or Pre-Retirement Spouse’s Pension, the Primary Social Security Amount shall be the estimated monthly amount that may be payable to a Participant commencing at age 65 as an old-age insurance benefit under the
provisions of Title II of the Social Security Act, as amended. Such estimates of the old-age insurance benefit to which a Participant would be entitled at age 65 shall be based upon the following assumptions: 

(i) That the Participant’s social security wages in any year prior to Retirement or severance are equal to the
Taxable Wage Base in such year, and 
 (ii) That he will not receive any social security wages after Retirement
or severance. 
 However, in computing a Vested Pension under Formula A of Section 5.2, the estimate of the old-age
insurance benefit to which a Participant would be entitled at age 65 shall be based upon the assumption that he continued to receive social security wages until age 65 at the same rate as the Taxable Wage Base in effect at his severance from
employment. For purposes of this subsection, “social security wages” shall mean wages within the meaning of the Social Security Act. 

  
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 (2) For purposes of determining the amount of a Disability Pension, the
Primary Social Security Amount shall be (except as provided in the next sentence) the initial monthly amount actually received by the disabled Participant as a disability insurance benefit under the provisions of Title II of the Social Security Act,
as amended and in effect at the time of the Participant’s retirement due to disability. Notwithstanding the preceding sentence, for any period that a Participant receives a Disability Pension before receiving a disability insurance benefit
under the provisions of Title II of the Social Security Act, then the Participant’s Primary Social Security Amount for such period shall be determined pursuant to paragraph (1) above. 

(3) For purposes of paragraphs (1) and (2), the Primary Social Security Amount shall exclude amounts that may be
available because of the spouse or any dependent of the Participant or any amounts payable on account of the Participant’s death. Estimates of Primary Social Security Amounts shall be made on the basis of the Social Security Act as in effect at
the Participant’s Severance from Service Date, without regard to any increases in the social security wage base or benefit levels provided by such Act which take effect thereafter. 

(jj) Qualified Joint and Survivor Annuity: An Annuity which is payable to the Participant for life with 50
percent of the amount of such Annuity payable after the Participant’s death to his surviving Eligible Spouse for life. If the Eligible Spouse predeceases the Participant, no survivor benefit under a Qualified Joint and Survivor Annuity shall be
payable to any person. The amount of a Participant’s monthly payment under a Qualified Joint and Survivor Annuity shall be reduced to the extent provided in sections 5.1 and 5.2, as applicable. 

  
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 (kk) Retirement: Termination of employment for reasons other
than death after a Participant has fulfilled the requirements for either a Normal, Early, Late, or Disability Retirement Pension under Article IV. 
 (ll) Retirement Date: The date on which a Participant’s Retirement is considered to commence. Retirement shall be considered to commence on the day immediately following: (i) a
Participant’s last day of employment, or (ii) the last day of an Authorized Leave of Absence, if later. Notwithstanding the preceding sentence, in the case of a Disability Retirement Pension, Retirement shall be considered as commencing on
the Participant’s retirement date applicable for such purpose under the Salaried Plan. 
 (mm)
Retirement Pension: The Pension payable to a Participant upon Retirement under the Plan. 
 (nn)
Salaried Plan: The PBG Salaried Employees Retirement Plan, as it may be amended from time to time. Any references herein to the Salaried Plan for a period that is before the Effective Date shall mean the PepsiCo Salaried Employees
Retirement Plan. 
 (oo) Service: The period of a Participant’s employment calculated in
accordance with Section 3.2 for purposes of determining his entitlement to benefits under the Plan. 
 (pp)
Severance from Service Date: The date on which an Employee’s period of service is deemed to end, determined in accordance with Article III of the Salaried Plan. 

(qq) Single Life Annuity: A level monthly Annuity payable to a Participant for his life only, with no
survivor benefits to his Eligible Spouse or any other person. 

  
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 (rr) Single Lump Sum: The distribution of a Participant’s
total Pension in the form of a single payment. 
 (ss) Social Security Act: The Social Security Act
of the United States, as amended, an enactment providing governmental benefits in connection with events such as old age, death and disability. Any reference herein to the Social Security Act (or any of the benefits provided thereunder) shall be
taken as a reference to any comparable governmental program of another country, as determined by the Plan Administrator, but only to the extent the Plan Administrator judges the computation of those benefits to be administratively feasible.

 (tt) Taxable Wage Base: The contribution and benefit base (as determined under section 230 of
the Social Security Act) in effect for the Plan Year. 
 (uu) Vested Pension: The Pension available
to a Participant under Section 4.3. 
 2.2 Construction: The terms of the Plan shall be construed in
accordance with this section. 
 (a) Gender and Number: The masculine gender, where appearing in
the Plan, shall be deemed to include the feminine gender, and the singular may include the plural, unless the context clearly indicates to the contrary. 
 (b) Compounds of the Word “Here”: The words “hereof”, “hereunder” and other similar compounds of the word “here” shall mean and refer to the entire
Plan, not to any particular provision or section. 
 (c) Examples: Whenever an example is provided
or the text uses the term “including” followed by a specific item or items, or there is a passage having a similar effect, such passages of the Plan shall be construed as if the phrase “without limitation” followed such


  
 - 14 -









 
example or term (or otherwise applied to such passage in a manner that avoids limits on its breadth of application). 

(d) Subdivisions of the Plan Document: This Plan document is divided and subdivided using the following
progression: articles, sections, subsections, paragraphs, subparagraphs, and clauses. Articles are designated by capital roman numerals. Sections are designated by Arabic numerals containing a decimal point. Subsections are designated by lower-case
letters in parentheses. Paragraphs are designated by Arabic numerals in parentheses. Subparagraphs are designated by lower-case roman numerals in parentheses. Clauses are designated by upper-case letters in parentheses. Any reference in a section to
a subsection (with no accompanying section reference) shall be read as a reference to the subsection with the specified designation contained in that same section. A similar rule shall apply with respect to paragraph references within a subsection
and subparagraph references within a paragraph. 

  
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 ARTICLE III – Participation and Service 

3.1 Participation: An Employee shall be a Participant in the Plan during the period: 

(a) When he would be currently entitled to receive a Pension under the Plan if his employment terminated at such time, or

 (b) When he would be so entitled but for the vesting requirement of Section 4.7. 

3.2 Service. A Participant’s entitlement to a Pension and to a Pre-Retirement Spouse’s Pension for his Eligible
Spouse shall be determined under Article IV based upon his period of Service. A Participant’s period of Service shall be determined under Article III of the Salaried Plan. 

3.3 Credited Service. The amount of a Participant’s Pension and a Pre-Retirement Spouse’s Pension shall be based
upon the Participant’s period of Credited Service, as determined under Article III of the Salaried Plan. 

  
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 ARTICLE IV – Requirements for Benefits 

A Participant shall be entitled to receive a Pension and a surviving Eligible Spouse shall be entitled to certain survivor benefits as
provided in this Article. The amount of any such Pension or survivor benefit shall be determined in accordance with Article V. 

4.1 Normal Retirement Pension: A Participant shall be eligible for a Normal Retirement Pension if he meets the requirements
for a Normal Retirement Pension in Section 4.1 of the Salaried Plan. 
 4.2 Early Retirement Pension: A
Participant shall be eligible for an Early Retirement Pension if he meets the requirements for an Early Retirement Pension in Section 4.2 of the Salaried Plan. 
 4.3 Vested Pension: A Participant who is vested under Section 4.7 shall be eligible to receive a Vested Pension if his employment in an eligible classification under the Salaried Plan
is terminated before he is eligible for a Normal Retirement Pension or an Early Retirement Pension. A Participant who terminates employment prior to satisfying the vesting requirement in Section 4.7 shall not be eligible to receive a Pension
under this Plan. 
 4.4 Late Retirement Pension: A Participant who continues employment after his Normal
Retirement Age shall not receive a Pension until his Late Retirement Date. Thereafter, a Participant shall be eligible for a Late Retirement Pension determined in accordance with Section 4.4 of the Salaried Plan (but without regard to any
requirement for notice of suspension under ERISA section 203(a)(3)(B) or any adjustment as under Section 5.5(d) of the Salaried Plan). 
 4.5 Disability Pension: A Participant shall be eligible for a Disability Pension if he meets the requirements for a Disability Pension under the Salaried Plan. 

  
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 4.6 Pre-Retirement Spouse’s Pension. Any Pre-Retirement Spouse’s
Pension payable under this section shall commence as of the same time as the corresponding pre-retirement spouse’s pension under the Salaried Plan and, subject to Section 4.9, shall continue monthly for the life of the Eligible Spouse.

 (a) Active, Disabled and Retired Employees: A Pre-Retirement Spouse’s Pension shall be
payable under this subsection to a Participant’s Eligible Spouse (if any) who is entitled under the Salaried Plan to the special pre-retirement spouse’s pension for survivors of active, disabled and retired employees. The amount of such
Pension shall be determined in accordance with the provisions of Section 5.3. 
 (b) Vested
Employees: A Pre-Retirement Spouse’s Pension shall be payable under this subsection to a Participant’s Eligible Spouse (if any) who is entitled under the Salaried Plan to the pre-retirement spouse’s pension for survivors of
vested terminated Employees. The amount of such Pension shall be determined in accordance with the provisions of Section 5.3. If pursuant to this Section 4.6(b) a Participant has Pre-Retirement Spouse’s coverage in effect for his
Eligible Spouse, any Pension calculated for the Participant under Section 5.2(b) shall be reduced for each year such coverage is in effect by the applicable percentage set forth below (based on the Participant’s age at the time the
coverage is in effect) with a pro rata reduction for any portion of a year. No reduction shall be made for coverage in effect within the 90-day period following a Participant’s termination of employment. 

 

					
	 Attained Age
	  	Annual Charge	 
	 Up to 35
	  	 	0	% 
	 35 – 39
	  	 	.075	% 
	 40 – 44
	  	 	.1	% 
	 45 – 49
	  	 	.175	% 
	 50 – 54
	  	 	.3	% 
	 55 – 59
	  	 	.5	% 
	 60 – 64
	  	 	.5	% 


  
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 4.7 Vesting. A Participant shall be fully vested in, and have a nonforfeitable
right to, his Accrued Benefit at the time he becomes fully vested in his accrued benefit under the Salaried Plan. 
 4.8
Time of Payment. The distribution of a PEP Pension to a Participant shall commence as of the time specified in Section 6.1. 
 4.9 Cashout Distributions. 
 (a) Distribution
of Participant’s Pension: If at a Participant’s Annuity Starting Date the Actuarial Equivalent lump sum value of the Participant’s PEP Pension is equal to or less than $10,000, the Plan Administrator shall distribute to the
Participant such lump sum value of the Participant’s PEP Pension. 
 (b) Distribution of
Pre-Retirement Spouse’s Pension Benefit: If at the time payments under the Salaried Plan commence to an Eligible Spouse the Actuarial Equivalent lump sum value of the PEP Pre-Retirement Spouse’s Pension to be paid is equal to or
less than $10,000, the Plan Administrator shall distribute to the Eligible Spouse such lump sum value of the PEP Pre-Retirement Spouse’s Pension. 
 Any lump sum distributed under this section shall be in lieu of the Pension that otherwise would be distributable to the Participant or Eligible Spouse hereunder. 

4.10 Coordination with Long Term Disability Plan. The terms of this section apply notwithstanding the preceding provisions
of this Article. At any time prior to April 14, 1991, a Participant shall not be eligible to receive a Normal, Early, Vested or Disability Pension for any month or period of time for which he is eligible for, and receiving, benefits under a
long term 

  
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disability plan maintained by an Employer. However, a Participant’s Eligible Spouse shall not be ineligible for a Pre-Retirement Spouse’s Pension or benefits under a Qualified Joint and
Survivor Annuity because the Participant was receiving benefits under a long term disability plan at the date of his death. 

4.11 Reemployment of Certain Participants. In the case of a current or former Participant who is reemployed and is eligible
to reparticipate in the Salaried Plan after his Annuity Starting Date, payment of his Pension will be suspended if payment of his Salaried Plan pension is suspended (or would have been if it were already in pay status). Thereafter, his Pension shall
recommence at the time determined under Section 6.1 (even if the suspension of his Salaried Plan pension ceases earlier). 

  
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 ARTICLE V – Amount of Retirement Pension 

When a Pension becomes payable to or on behalf of a Participant under this Plan, the amount of such Pension shall be determined under
Section 5.1, 5.2 or 5.3 (whichever is applicable), subject to any adjustments required under Sections 4.6(b), 5.4 and 5.5. 

5.1 PEP Pension: 
 (a) Same Form as Salaried Plan: If a Participant’s Pension will be paid in the same form and will commence as of the same time as his pension under the Salaried Plan, then his Pension
hereunder shall be the difference between: 
 (1) His Total Pension expressed in such form and payable as of such
time, minus  
 (2) His Salaried Plan Pension expressed in such form and payable as of such time.

 (b) Different Form than Salaried Plan: If a Participant’s Pension will be paid in a
different form (whether in whole or in part) or will commence as of a different time than his pension under the Salaried Plan, his Pension shall be the product of: 

(1) The amount of the Participant’s Total Pension expressed in the form and payable as of such time as applies to his
Pension under this Plan, multiplied by 
 (2) A fraction, the numerator of which is the value of
his Total Pension reduced by the value of his Salaried Plan Pension, and the denominator of which is the value of his Total Pension (with value determined on a reasonable and consistent basis, in the discretion of the Plan
Administrator, with respect to similarly situated employees). 
 (c) Definitions: The following
definitions apply for purposes of this section. 

  
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 (3) A Participant’s “Total Pension” means the greater of:

 (i) The amount of the Participant’s pension determined under the terms of the Salaried Plan, but without
regard to: (A) the limitations imposed by sections 401(a)(17) and 415 of the Code (as such limitations are interpreted and applied under the Salaried Plan), and (B) the actuarial adjustment under Section 5.5(d) of the Salaried Plan;
or 
 (ii) The amount (if any) of the Participant’s PEP Guarantee determined under Section 5.2.

 In making this comparison, the benefits in subparagraphs (i) and (ii) above shall be calculated with
reference to the specific form and time of payment that is applicable. If the applicable form of payment is a lump sum, the Actuarial Equivalent factors in Section 2.1(b)(2) shall apply for purposes of subparagraph (i) in lieu of those in
the Salaried Plan. 
 (4) A Participant’s “Salaried Plan Pension” means the amount of the
Participant’s pension determined under the terms of the Salaried Plan. 
 5.2 PEP Guarantee: A Participant
who is eligible under subsection (a) below shall be entitled to a PEP Guarantee benefit determined under subsection (b) below. In the case of other Participants, the PEP Guarantee shall not apply. 

(a) Eligibility: A Participant shall be covered by this section if the Participant has 1988 pensionable
earnings from an Employer of at least $75,000. For purposes of this section, “1988 pensionable earnings” means the Participant’s remuneration for the 1988 calendar year that was recognized for benefits received under the Salaried Plan
as in effect in 1988. “1988 

  
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pensionable earnings” does not include remuneration from an entity attributable to any period when that entity was not an Employer. 

(b) PEP Guarantee Formula: The amount of a Participant’s PEP Guarantee shall be determined under the
applicable formula in paragraph (1), subject to the special rules in paragraph (2). 
 (1) Formulas: The
amount of a Participant’s Pension under this paragraph shall be determined in accordance with subparagraph (i) below. However, if the Participant was actively employed in a classification eligible for the Salaried Plan prior to
July 1, 1975, the amount of his Pension under this paragraph shall be the greater of the amounts determined under subparagraphs (i) and (ii), provided that subparagraph (ii)(B) shall not apply in determining the amount of a Vested Pension.

 (i) Formula A: The Pension amount under this subparagraph shall be: 

(A) 3 percent of the Participant’s Highest Average Monthly Earnings for the first 10 years of Credited Service,
plus 
 (B) 1 percent of the Participant’s Highest Average Monthly Earnings for each year of
Credited Service in excess of 10 years, less 
 (C) 1-2/3 percent of the Participant’s Primary
Social Security Amount multiplied by years of Credited Service not in excess of 30 years. 

  
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 In determining the amount of a Vested Pension under this Formula A, the
Pension shall first be calculated on the basis of (I) the Credited Service the Participant would have earned had he remained in the employ of the Employer until his Normal Retirement Age, and (II) his Highest Average Monthly Earnings and
Primary Social Security Amount at his Severance from Service Date, and then shall be reduced by multiplying the resulting amount by a fraction, the numerator of which is the Participant’s actual years of Credited Service on his Severance from
Service Date and the denominator of which is the years of Credited Service he would have earned had he remained in the employ of an Employer until his Normal Retirement Age. 

(ii) Formula B: The Pension amount under this subparagraph shall be the greater of (A) or (B) below:

 (A) 1-1/2 percent of Highest Average Monthly Earnings times the number of years of Credited Service, less 50
percent of the Participant’s Primary Social Security Amount, or 
 (B) 3 percent of Highest Average Monthly
Earnings times the number of years of Credited Service up to 15 years, less 50 percent of the Participant’s Primary Social Security Amount. 
 In determining the amount of a Disability Pension under Formula A or B above, the Pension shall be calculated on the basis of the Participant’s Credited Service (determined in accordance with
Section 3.3(d)(3) of the Salaried Plan), and his 

  
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Highest Average Monthly Earnings and Primary Social Security Amount at the date of disability. 
 (2) Calculation: The amount of the PEP Guarantee shall be determined pursuant to paragraph (1) above, subject to the following special rules: 

(i) Surviving Eligible Spouse’s Annuity: Subject to subparagraph (iii) below and the last sentence of
this subparagraph, if the Participant has an Eligible Spouse and has commenced receipt of an Annuity under this section, the Participant’s Eligible Spouse shall be entitled to receive a survivor annuity equal to 50 percent of the
Participant’s Annuity under this section, with no corresponding reduction in such Annuity for the Participant. Annuity payments to a surviving Eligible Spouse shall begin on the first day of the month coincident with or following the
Participant’s death and shall end with the last monthly payment due prior to the Eligible Spouse’s death. If the Eligible Spouse is more than 10 years younger than the Participant, the survivor benefit payable under this subparagraph shall
be adjusted as provided below. 
 (A) For each full year more than 10 but less than 21 that the surviving
Eligible Spouse is younger than the Participant, the survivor benefit payable to such spouse shall be reduced by 0.8 percent. 
 (B) For each full year more than 20 that the surviving Eligible Spouse is younger than the Participant, the survivor benefit payable to such spouse shall be reduced by an additional 0.4 percent.


  
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 (ii) Reductions: The following reductions shall apply in determining
a Participant’s PEP Guarantee. 
 (A) If the Participant will receive an Early Retirement Pension, the
payment amount shall be reduced by 3/12ths of 1 percent for each month by which the benefit commencement date precedes the date the Participant would attain his Normal Retirement Date. 

(B) If the Participant is entitled to a Vested Pension, the payment amount shall be reduced to the Actuarial Equivalent
of the amount payable at his Normal Retirement Date (if payment commences before such date), and the Section 4.6(b) reductions for any Pre-Retirement Spouse’s coverage shall apply. 

(C) This clause applies if the Participant will receive his Pension in a form that provides an Eligible Spouse benefit,
continuing for the life of the surviving spouse, that is greater than that provided under subparagraph (i). In this instance, the Participant’s Pension under this section shall be reduced so that the total value of the benefit payable on the
Participant’s behalf is the Actuarial Equivalent of the Pension otherwise payable under the foregoing provisions of this section. 
 (D) This clause applies if the Participant will receive his Pension in a form that provides a survivor annuity for a beneficiary who is not his Eligible Spouse. In this instance, the Participant’s
Pension under this section shall be reduced so that the total value of the benefit payable 

  
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on the Participant’s behalf is the Actuarial Equivalent of a Single Life Annuity for the Participant’s life. 

(E) This clause applies if the Participant will receive his Pension in a Annuity form that includes inflation protection
described in Section 6.2(b). In this instance, the Participant’s Pension under this section shall be reduced so that the total value of the benefit payable on the Participant’s behalf is the Actuarial Equivalent of the elected Annuity
without such protection. 
 (iii) Lump Sum Conversion: The amount of the Retirement Pension determined
under this section for a Participant whose Retirement Pension will be distributed in the form of a lump sum shall be the Actuarial Equivalent of the Participant’s PEP Guarantee determined under this section, taking into account the value of any
survivor benefit under subparagraph (i) above and any early retirement reductions under subparagraph (ii)(A) above. 
 5.3
Amount of Pre-Retirement Spouse’s Pension: The monthly amount of the Pre-Retirement Spouse’s Pension payable to a surviving Eligible Spouse under Section 4.6 shall be determined under subsection (a) below.

 (a) Calculation: An Eligible Spouse’s Pre-Retirement Spouse’s Pension shall be the
difference between: 
 (1) The Eligible Spouse’s Total Pre-Retirement Spouse’s Pension, minus


  
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 (2) The Eligible Spouse’s Salaried Plan Pre-Retirement Spouse’s
Pension. 
 (b) Definitions: The following definitions apply for purposes of this section. 

(1) An Eligible Spouse’s “Total Pre-Retirement Spouse’s Pension” means the greater of: 

(i) The amount of the Eligible Spouse’s pre-retirement spouse’s pension determined under the terms of the
Salaried Plan, but without regard to: (A) the limitations imposed by sections 401(a)(17) and 415 of the Code (as such limitations are interpreted and applied under the Salaried Plan), and (B) the actuarial adjustment under
Section 5.5(d) of the Salaried Plan; or 
 (ii) The amount (if any) of the Eligible Spouse’s PEP
Guarantee Pre-Retirement Spouse’s Pension determined under subsection (c). 
 In making this comparison, the benefits in
subparagraphs (i) and (ii) above shall be calculated with reference to the specific time of payment applicable to the Eligible Spouse. 
 (c) PEP Guarantee Pre-Retirement Spouse’s Pension: An Eligible Spouse’s PEP Guarantee Pre-Retirement Spouse’s Pension shall be determined in accordance with paragraph
(1) or (2) below, whichever is applicable, with reference to the PEP Guarantee (if any) that would have been available to the Participant under Section 5.2. 

(1) Normal Rule: The Pre-Retirement Spouse’s Pension payable under this paragraph shall be equal to the amount
that would be payable as a survivor annuity, under a Qualified Joint and Survivor Annuity, if the Participant had: 

  
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 (i) Separated from service on the date of death (or, if earlier, his actual
Severance from Service Date); 
 (ii) Commenced a Qualified Joint and Survivor Annuity on the same date payments
of the Qualified Pre-Retirement Spouse’s Pension are to commence; and 
 (iii) Died on the day immediately
following such commencement. 
 If payment of a Pre-Retirement Spouse’s Pension under this paragraph commences prior to the
date which would have been the Participant’s Normal Retirement Date, appropriate reductions for early commencement shall be applied to the Qualified Joint and Survivor Annuity upon which the Pre-Retirement Spouse’s Pension is based.

 (2) Special Rule for Active and Disabled Employees: Notwithstanding paragraph (1) above, the
Pre-Retirement Spouse’s Pension paid on behalf of a Participant described in Section 4.6(a) shall not be less than an amount equal to 25 percent of such Participant’s PEP Guarantee determined under Section 5.2. For this purpose,
Credited Service shall be determined as provided in Section 3.3(d)(2) of the Salaried Plan, and the deceased Participant’s Highest Average Monthly Earnings, Primary Social Security Amount and Covered Compensation shall be determined as of
his date of death. A Pre-Retirement Spouse’s Pension under this paragraph is not reduced for early commencement. 
 5.4
Certain Adjustments: Pensions determined under the foregoing sections of this Article are subject to adjustment as provided in this section. For purposes of this section, 

  
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“specified plan” shall mean the Salaried Plan or a nonqualified pension plan similar to this Plan. A nonqualified pension plan is similar to this Plan if it is sponsored by a member of
the PBG Organization and if its benefits are not based on participant pay deferrals (this category of similar plans includes the PepsiCo Prior Plan). 
 (a) Adjustments for Rehired Participants: This subsection shall apply to a current or former Participant who is reemployed after his Annuity Starting Date and whose benefit under the
Salaried Plan is recalculated based on an additional period of Credited Service. In the event of any such recalculation, the Participant’s PEP Pension shall also be recalculated hereunder. For this purpose, the PEP Guarantee under
Section 5.2 is adjusted for in-service distributions and prior distributions in the same manner as benefits are adjusted under the Salaried Plan, but by taking into account benefits under this Plan and any specified plans. 

(b) Adjustment for Increased Pension Under Other Plans: If the benefit paid under a specified plan on behalf
of a Participant is increased after PEP benefits on his behalf have been determined (whether the increase is by order of a court, by agreement of the plan administrator of the specified plan, or otherwise), the PEP benefit for the Participant shall
be recalculated. If the recalculation identifies an overpayment hereunder, the Plan Administrator shall take such steps as it deems advisable to recover the overpayment. It is specifically intended that there shall be no duplication of payments
under this Plan and any specified plans. 
 5.5 Excludable Employment: Effective for periods of employment on or
after June 30, 1997, an executive classified as level 22 or above whose employment by an Employer is for a limited duration assignment shall not become entitled to a benefit or to any increase in benefits in connection with such employment.


  
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 ARTICLE VI – Distribution Options 

The terms of this Article govern the distribution of benefits to a Participant who becomes entitled to payment of a Pension under the
Plan. 
 6.1 Form and Timing of Distributions: This section shall govern the form and timing of distributions of
PEP Pensions that begin on or after March 1, 1992. Plan distributions that begin before that date shall be governed by Prior Plan as in effect at the time of the distribution. The provisions of this Section 6.1 are in all cases subject to
the cashout rules set forth in Section 4.9. 
 (a) No Advance Election: This subsection shall
apply to a Participant: (i) who does not have an Advance Election in effect as of the close of business on the day before his Retirement Date, or (ii) who terminates employment prior to Retirement. Subject to the next sentence, a
Participant described in this subsection shall be paid his PEP Pension in the same form and at the same time as he is paid his Pension under the Salaried Plan. If a Participant’s Salaried Plan Annuity Starting Date occurs while he is still an
employee of the PBG Organization (because of the time of payment provisions in Code section 401(a)(9)), payment under the Plan shall not begin until the first of the month next following the Participant’s Severance from Service Date. In this
instance, the form of payment under this Plan shall remain that applicable under the Salaried Plan. 
 (b)
Advance Election in Effect: This subsection shall apply to a Participant: (i) who has an Advance Election in effect as of the close of business on the day before his Retirement Date, and (ii) whose Retirement Date is after
1993. To be in effect, an Advance Election must meet the advance receipt and other requirements of Section 6.3(b). 

  
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 (1) Lump Sum Election: If a Participant covered by this subsection
has an Advance Election to receive a Single Lump Sum in effect as of the close of business on the day before his Retirement Date, the Participant’s Retirement Pension under the Plan shall be paid as a Single Lump Sum as of the first of the
month coincident with or next following his Retirement Date. 
 (2) Annuity Election: If a Participant
covered by this subsection has an Advance Election to receive an Annuity in effect as of the close of business on the day before his Retirement Date, the Participant’s Retirement Pension under the Plan shall be paid in an Annuity beginning on
the first of the month coincident with or next following his Retirement Date. The following provisions of this paragraph govern the form of Annuity payable in the case of a Participant described in this paragraph. 

(i) Salaried Plan Election: A Participant who has a qualifying Salaried Plan election shall receive his
distribution in the same form of Annuity the Participant selected in such qualifying Salaried Plan election. For this purpose, a “qualifying Salaried Plan election” is a written election of a form of payment by the Participant that:
(A) is currently in effect under the Salaried Plan as of the close of business on the day before the Participant’s Retirement Date, and (B) specifies an Annuity as the form of payment for all or part of the Participant’s
Retirement Pension under the Salaried Plan. For purposes of the preceding sentence, a Participant who elects a combination lump sum and Annuity under the Salaried Plan is considered to have specified an Annuity for part of his Salaried Plan Pension.


  
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 (ii) PEP Election: A Participant who is not covered by subparagraph
(i) and who has a PEP Election in effect as of the close of business on the day before his Retirement Date shall receive his distribution in the form of Annuity the Participant selects in such PEP Election. 

(iii) No PEP Election: A Participant who is not covered by subparagraph (i) or (ii) above shall receive
his distribution in the form of a Qualified Joint and Survivor Annuity if he is married, or in the form of a Single Life Annuity if he is not married. For purposes of this subparagraph (iii), a Participant shall be considered married if he is
married on the day before his Retirement Date. 
 6.2 Available Forms of Payment: The forms of payment set forth in
subsections (a) and (b) may be provided to any Participant who is entitled to a Retirement Pension. The forms of payment for other Participants are set forth in subsection (c) below. The provisions of this section are effective for
Annuity Starting Dates after 1989 and earlier distributions shall be governed by the Prior Plan as in effect at the time of distribution. 
 (a) Basic Forms of Payment: A Participant’s Retirement Pension shall be distributed in one of the forms of payment listed in this subsection. The particular form of payment applicable
to a Participant shall be determined in accordance with Section 6.1. Payments shall commence on the date specified in Section 6.1 and shall end on the date specified in this subsection. 

  
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 (1) Single Life Annuity Option: A Participant may receive his Pension
in the form of a Single Life Annuity, which provides monthly payments ending with the last payment due prior to his death. 
 (2) Survivor Options: A Participant may receive his Pension in accordance with one of the following survivor options: 

(i) 100 percent Survivor Option: The Participant shall receive a reduced Pension payable for life, ending with the
last monthly payment due prior to his death. Payments in the same reduced amount shall continue after the Participant’s death to his beneficiary for life, beginning on the first day of the month coincident with or following the
Participant’s death and ending with the last monthly payment due prior to the beneficiary’s death. 

(ii) 75 percent Survivor Option: The Participant shall receive a reduced Pension payable for life, ending with the
last monthly payment due prior to his death. Payments in the amount of 75 percent of such reduced Pension shall be continued after the Participant’s death to his beneficiary for life, beginning on the first day of the month coincident with or
following the Participant’s death and ending with the last monthly payment due prior to the beneficiary’s death. 
 (iii) 50 percent Survivor Option: The Participant shall receive a reduced Pension payable for life, ending with the last monthly payment due prior to his death. Payments in the amount of 50 percent
of such reduced Pension shall be continued after the Participant’s death to his beneficiary for life, beginning on the first day of the month coincident with or following the Participant’s death and


  
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ending with the last monthly payment due prior to the beneficiary’s death. A 50 percent survivor option under this paragraph shall be a Qualified Joint and Survivor Annuity if the
Participant’s beneficiary is his Eligible Spouse. 
 (iv) Ten Years Certain and Life Option: The
Participant shall receive a reduced Pension which shall be payable monthly for his lifetime but for not less than 120 months. If the retired Participant dies before 120 payments have been made, the monthly Pension amount shall be paid for the
remainder of the 120 month period to the Participant’s primary beneficiary (or if the primary beneficiary has predeceased the Participant, the Participant’s contingent beneficiary). 

(3) Single Lump Sum Payment Option: A Participant may receive payment of his Pension in the form of a Single Lump
Sum payment. 
 (4) Combination Lump Sum/Monthly Benefit Option: A Participant who does not have an
Advance Election in effect may receive a portion of his Pension in the form of a lump sum payment, and the remaining portion in the form of one of the monthly benefits described in paragraphs (1) and (2) above. The Pension is divided
between the two forms of payment based on the whole number percentages designated by the Participant on a form provided for this purpose by the Plan Administrator. For the election to be effective, the sum of the two percentages designated by the
Participant must equal 100 percent. 
 (i) The amount of the Pension paid in the form of a lump sum is
determined by multiplying: (A) the amount that would be payable to the 

  
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Participant as a Single Lump Sum payment if the Participant’s entire benefit were payable in that form, by (B) the percentage that the Participant has designated for receipt in the form
of a lump sum. 
 (ii) The amount of the Pension paid in the form of a monthly benefit is determined by
multiplying: (A) the amount of the monthly benefit elected by the Participant, determined in accordance with paragraph (1) or (2) above (whichever applies), by (B) the percentage that the Participant has designated for receipt in
the form of a monthly benefit. 
 (b) Inflation Protection: The following levels of inflation
protection may be provided to any Participant who is entitled to a Retirement Pension (except to the extent such Pension is paid as a lump sum). 
 (1) 5 percent Inflation Protection: A Participant’s monthly benefit shall be initially reduced, but thereafter shall be increased if inflation in the prior year exceeds 5 percent. The amount
of the increase shall be the difference between inflation in the prior year and 5 percent. 
 (2) 7 percent
Inflation Protection: A Participant’s monthly benefit shall be initially reduced, but thereafter shall be increased if inflation in the prior year exceeds 7 percent. The amount of the increase shall be the difference between inflation in
the prior year and 7 percent. 
 Benefits shall be subject to increase in accordance with this subsection each January 1, beginning with
the second January 1 following the Participant’s Annuity Starting Date. The amount of inflation in the prior year shall be determined based on inflation in the 12 month period ending


  
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on September 30 of such year, with inflation measured in the same manner as applies on January 1, 1989 for adjusting Social Security benefits for changes in the cost of living.
Inflation protection that is in effect shall carry over to any survivor benefit payable on behalf of a Participant, and shall increase the otherwise applicable survivor benefit as provided above. Any election by a Participant to receive inflation
protection shall be irrevocable by such Participant or his surviving beneficiary. 
 (c) Available Options
for Vested Benefits: The forms of payment available for a Participant with a Vested Pension are a Qualified Joint and Survivor Annuity for married Participants and a Single Life Annuity for both married and unmarried Participants. The
applicable form of payment shall be determined in accordance with Section 6.1(a). 
 6.3 Procedures for
Elections: This section sets forth the procedures for making Advance Elections and PEP Elections. 
 (a)
In General: To qualify as an Advance Election or PEP Election for purposes of Section 6.1, an election must be made in writing, on the form designated by the Plan Administrator, and must be signed by the Participant. These
requirements also apply to any revocations of such elections. Spousal consent is not required for any election (or revocation of election) under the Plan. 
 (b) Advance Election: To qualify as an Advance Election, an election must be made under this Plan on or after July 15, 1993 and meet the following requirements. 

(1) Election: The Participant shall designate on the Advance Election form whether the Participant elects to take
his Pension in the form of an Annuity or a Single Lump Sum. 

  
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 (2) Receipt by Plan Administrator: The Advance Election must be
received by the Plan Administrator before the start of the calendar year containing the Participant’s Retirement Date, and at least 6 months before that Retirement Date. An election that meets the foregoing requirements shall remain
effective until it is changed or revoked. 
 (3) Change or Revocation of Election: A Plan Participant may
change an Advance Election by filing a new Election that meets the foregoing requirements. A Plan Participant may revoke an Advance Election only by filing a revocation that is received by the Plan Administrator before the start of the calendar year
containing the Plan Participant’s Retirement Date, and at least 6 months before that Retirement Date. 
 Any Advance Election by a
Participant shall be void if the Participant is not entitled to a Retirement Pension. 
 (c) PEP
Election: A PEP Election may only be made by a Participant who has an Advance Election to receive an Annuity in effect at the time his PEP Election is received by the Plan Administrator. In determining whether an Advance Election is in
effect for this purpose, the advance receipt requirement of subsection (b)(2) shall be considered met if it will be met by the Participant’s proposed Retirement Date. 

(1) Election: The Participant shall designate on the PEP Election form the Annuity form of benefit the Participant
selects from those described in Section 6.2, including the Participant’s choice of inflation protection, subject to the provisions of this Article VI. The forms of payment described in Section 6.2(a)(3) and (4) are not available
pursuant to a PEP Election. 

  
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 (2) Receipt by the Plan Administrator: The PEP Election must be
received by the Plan Administrator no earlier than 90 days before the Participant’s Retirement Date, and no later than the close of business on the day before the Participant’s Retirement Date. The Participant shall furnish proof of the
age of his beneficiary (including his Eligible Spouse if applicable), to the Plan Administrator by the day before the Participant’s Retirement Date, for any form of payment which is subject to reduction in accordance with subsection 6.2(c)
above. 
 A Participant may change his PEP Election by filing a new Election with the Plan Administrator that meets the foregoing requirements.
The Participant’s PEP Election shall become effective at the close of business on the day before the Participant’s Retirement Date. Any PEP Election by a Participant shall be void if the Participant does not have an Advance Election in
effect at such time. 
 (d) Elections Rules for Annuity Starting Dates: When amounts become payable
to a Participant in accordance with Article IV, they shall be payable as of the Participant’s Annuity Starting Date and the election procedures (in this section and Sections 6.1 and 6.5) shall apply to all of the Participant’s unpaid
accruals as of such Annuity Starting Date, with the following exception. In the case of a Participant who is rehired after his initial Annuity Starting Date and who (i) is currently receiving an Annuity that remained in pay status upon rehire,
or (ii) was previously paid a lump sum distribution (other than a cashout distribution described in Section 4.9(a)), the Participant’s subsequent Annuity Starting Date (as a result of his termination of reemployment), and the election
procedures at such subsequent Annuity Starting Date, shall apply only to the portion of his benefit that accrues after his rehire. Any prior 

  
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accruals that remain to be paid as of the Participant’s subsequent Annuity Starting Date shall continue to be payable in accordance with the elections made at his initial Annuity Starting
Date. 
 For purposes of this section, an election shall be treated as received on a particular day if it is:
(A) postmarked that day, or (B) actually received by the Plan Administrator on that day. Delivery under clause (B) must be made by the close of business, which time is to be determined by the Plan Administrator. 

6.4 Special Rules for Survivor Options: 

(a) Effect of Certain Deaths: If a Participant makes a PEP Election for a form of payment described in
Section 6.2(a)(2) and the Participant or his beneficiary (beneficiaries in the case of Section 6.2(a)(2)(iv)) dies before the PEP Election becomes effective, the election shall be disregarded. If the Participant dies after such PEP
Election becomes effective but before his Retirement Pension actually commences, the election shall be given effect and the amount payable to his surviving Eligible Spouse or other beneficiary shall commence on the first day of the month following
his death (any back payments due the Participant shall be payable to his estate). In the case of a Participant who has elected the form of payment described in Section 6.2(a)(2)(iv), if such Participant dies: (i) after the PEP Election has
become effective, (ii) without a surviving primary or contingent beneficiary, and (iii) before receiving 120 payments under the form of payment, then the remaining payments due under such form of payment shall be paid to the
Participant’s estate. If payments have commenced under such form of payment to a Participant’s primary or contingent beneficiary and such beneficiary dies before payments are completed, then the remaining payments due under such form of
payment shall be paid to such beneficiary’s estate. 

  
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 (b) Nonspouse Beneficiaries: If a Participant’s
beneficiary is not his Eligible Spouse, he may not elect: 
 (1) The 100 percent survivor option described in
Section 6.2(a)(2)(i) if his nonspouse beneficiary is more than 10 years younger than he is, or 
 (2) The 75
percent survivor option described in Section 6.2(a)(2)(ii) if his nonspouse beneficiary is more than 19 years younger than he is. 
 6.5 Designation of Beneficiary: A Participant who has elected to receive all or part of his pension in a form of payment that includes a survivor option shall designate a beneficiary who
will be entitled to any amounts payable on his death. Such designation shall be made on a PEP Election Form or an approved election form filed under the Salaried Plan, whichever is applicable. In the case of the survivor option described in
Section 6.2(a)(2)(iv), the Participant shall be entitled to name both a primary beneficiary and a contingent beneficiary. A Participant (whether active or former) shall have the right to change or revoke his beneficiary designation at any time
prior to when his election is finally effective. The designation of any beneficiary, and any change or revocation thereof, shall be made in accordance with rules adopted by the Plan Administrator. A beneficiary designation shall not be effective
unless and until filed with the Plan Administrator (or for periods before the Effective Date, the Plan Administrator under the Prior Plan). If no beneficiary is properly designated, then a Participant’s election of a survivor’s option
described in Section 6.2(a)(2) shall not be given effect. 

  
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 ARTICLE VII – Administration 

7.1 Authority to Administer Plan: The Plan shall be administered by the Plan Administrator, which shall have the authority
to interpret the Plan and issue such regulations as it deems appropriate. The Plan Administrator shall maintain Plan records and make benefit calculations, and may rely upon information furnished it by the Participant in writing, including the
Participant’s current mailing address, age and marital status. The Plan Administrator’s interpretations, determinations, regulations and calculations shall be final and binding on all persons and parties concerned. The Company, in its
capacity as Plan Administrator or in any other capacity, shall not be a fiduciary of the Plan for purposes of ERISA, and any restrictions that apply to a party in interest under section 406 of ERISA shall not apply to the Company or otherwise under
the Plan. 
 7.2 Facility of Payment: Whenever, in the Plan Administrator’s opinion, a person entitled to
receive any payment of a benefit or installment thereof hereunder is under a legal disability or is incapacitated in any way so as to be unable to manage his financial affairs, the Plan Administrator may make payments to such person or to the legal
representative of such person for his benefit, or the Plan Administrator may apply the payment for the benefit of such person in such manner as it considers advisable. Any payment of a benefit or installment thereof in accordance with the provisions
of this section shall be a complete discharge of any liability for the making of such payment under the provisions of the Plan. 

7.3 Claims Procedure: The Plan Administrator shall have the exclusive discretionary authority to construe and to interpret
the Plan, to decide all questions of eligibility for benefits and to determine the amount of such benefits, and its decisions on such matters are 

  
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final and conclusive. This discretionary authority is intended to be absolute, and in any case where the extent of this discretion is in question, the Plan Administrator is to be accorded the
maximum discretion possible. Any exercise of this discretionary authority shall be reviewed by a court, arbitrator or other tribunal under the arbitrary and capricious standard (i.e., the abuse of discretion standard). If, pursuant to this
discretionary authority, an assertion of any right to a benefit by or on behalf of a Participant or beneficiary is wholly or partially denied, the Plan Administrator, or a party designated by the Plan Administrator, will provide such claimant within
the 90-day period following the receipt of the claim by the Plan Administrator, a comprehensible written notice setting forth: 
 (a) The specific reason or reasons for such denial; 
 (b) Specific
reference to pertinent Plan provisions on which the denial is based; 
 (c) A description of any additional
material or information necessary for the claimant to submit to perfect the claim and an explanation of why such material or information is necessary; and 
 (d) A description of the Plan’s claim review procedure. The claim review procedure is available upon written request by the claimant to the Plan Administrator, or the designated party, within 60 days
after receipt by the claimant of written notice of the denial of the claim, and includes the right to examine pertinent documents and submit issues and comments in writing to the Plan Administrator, or the designated party. The decision on review
will be made within 60 days after receipt of the request for review, unless circumstances warrant an extension of time not to exceed an additional 60 days, and shall be in writing and drafted in a manner


  
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calculated to be understood by the claimant, and include specific reasons for the decision with references to the specific Plan provisions on which the decision is based. 

If within a reasonable period of time after the Plan receives the claim asserted by the Participant, the Plan
Administrator, or the designated party, fails to provide a comprehensible written notice stating that the claim is wholly or partially denied and setting forth the information described in (a) through (d) above, the claim shall be deemed
denied. Once the claim is deemed denied, the Participant shall be entitled to the claim review procedure described in subsection (d) above. Such review procedure shall be available upon written request by the claimant to the Plan Administrator,
or the designated party, within 60 days after the claim is deemed denied. Any claim under the Plan that is reviewed by a court shall be reviewed solely on the basis of the record before the Plan Administrator at the time it made its determination.

 7.4 Effect of Specific References: Specific references in the Plan to the Plan Administrator’s discretion
shall create no inference that the Plan Administrator’s discretion in any other respect, or in connection with any other provision, is less complete or broad. 

  
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 ARTICLE VIII– Miscellaneous 

8.1 Nonguarantee of Employment: Nothing contained in this Plan shall be construed as a contract of employment between an
Employer and any Employee, or as a right of any Employee to be continued in the employment of an Employer, or as a limitation of the right of an Employer to discharge any of its Employees, with or without cause. 

8.2 Nonalienation of Benefits: Benefits payable under the Plan or the right to receive future benefits under the Plan shall
not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution, or levy of any kind, either voluntary or involuntary, and any attempt to anticipate, alienate, sell, transfer,
assign, pledge, encumber, charge or otherwise dispose of any right to benefits payable hereunder, including any assignment or alienation in connection with a divorce, separation, child support or similar arrangement, shall be null and void and not
binding on the Company. The Company shall not in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements or torts of any person entitled to benefits hereunder. 

8.3 Unfunded Plan: The Company’s obligations under the Plan shall not be funded, but shall constitute liabilities by
the Company payable when due out of the Company’s general funds. To the extent the Participant or any other person acquires a right to receive benefits under this Plan, such right shall be no greater than the rights of any unsecured general
creditor of the Company. 
 8.4 Action by the Company: Any action by the Company under this Plan may be made by
the Board of Directors of the Company or by the Compensation Committee of the Board of Directors, with a report of any actions taken by it to the Board of Directors. In addition, such 

  
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action may be made by any other person or persons duly authorized by resolution of said Board to take such action. 
 8.5 Indemnification: Unless the Board of Directors of the Company shall determine otherwise, the Company shall indemnify, to the full extent permitted by law, any employee acting in good
faith within the scope of his employment in carrying out the administration of the Plan. 

  
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 ARTICLE IX – Amendment and Termination 

9.1 Continuation of the Plan: While the Company and the Employers intend to continue the Plan indefinitely, they assume no contractual
obligation as to its continuance. In accordance with Section 8.4, the Company hereby reserves the right, in its sole discretion, to amend, terminate, or partially terminate the Plan at any time provided, however, that no such amendment or
termination shall adversely affect the amount of benefit to which a Participant or his beneficiary is already entitled under Article IV on the date of such amendment or termination, unless the Participant becomes entitled to an amount of equivalent
value to such benefit under another plan or practice adopted by the Company (using such actuarial assumptions as the Company may apply in its discretion). Specific forms of payment are not protected under the preceding sentence. 

9.2 Amendments: The Company may, in its sole discretion, make any amendment or amendments to this Plan from time to time,
with or without retroactive effect, including any amendment or amendments to eliminate available distribution options under Article VI hereof at any time before the earlier of the Participant’s Annuity Starting Date under this Plan or under the
Salaried Plan. An Employer (other than the Company) shall not have the right to amend the Plan. 
 9.3
Termination: The Company may terminate the Plan, either as to its participation or as to the participation of one or more Employers. If the Plan is terminated with respect to fewer than all of the Employers, the Plan shall continue in
effect for the benefit of the Employees of the remaining Employers. 

  
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 ARTICLE X – ERISA Plan Structure 

This Plan document encompasses three separate plans within the meaning of ERISA, as are set forth in subsections (a), (b) and (c).

 (a) Excess Benefit Plan: An excess benefit plan within the meaning of section 3(36) of ERISA,
maintained solely for the purpose of providing benefits for Salaried Plan participants in excess of the limitations on benefits imposed by section 415 of the Code. 

(b) Excess Compensation High Hat Plan: A plan maintained by the Company primarily for the purpose of
providing deferred compensation for a select group of management or highly compensated employees within the meaning of sections 201(2) and 401(a)(1) of ERISA. This plan provides benefits for Salaried Plan participants in excess of the limitations
imposed by section 401(a)(17) of the Code on benefits under the Salaried Plan (after taking into account any benefits under the excess benefit plan). For ERISA reporting purposes, this portion of PEP may be referred to as the PBG Pension
Equalization Plan I. 
 (c) Grandfather High Hat Plan: A plan maintained by the Company primarily
for the purpose of providing deferred compensation for a select group of management or highly compensated employees within the meaning of sections 201(2) and 401(a)(1) of ERISA. This plan provides grandfather benefits to those Salaried Plan
participants described in section 5.2(a) hereof, by preserving for them the level of benefit accrual that was in effect before January 1, 1989 (after taking into account any benefits under the excess benefit plan and excess compensation high
hat plan). For ERISA reporting purposes, this portion of PEP shall be referred to as the PBG Pension Equalization Plan II. 

  
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 Benefits under this Plan shall be allocated first to the excess benefit plan, to the extent
of benefits paid for the purpose indicated in (a) above; then any remaining benefits shall be allocated to the excess compensation high hat plan, to the extent of benefits paid for the purpose indicated in (b) above; then any remaining
benefits shall be allocated to the grandfather high hat plan. These three plans are severable for any and all purposes as directed by the Company. 

  
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 ARTICLE XI – Applicable Law 

All questions pertaining to the construction, validity and effect of the Plan shall be determined in accordance with the provisions of
ERISA. In the event ERISA is not applicable or does not preempt state law, the laws of the state of New York shall govern. 
 If
any provision of this Plan is, or is hereafter declared to be, void, voidable, invalid or otherwise unlawful, the remainder of the Plan shall not be affected thereby. 

  
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 ARTICLE XII – Signature 

The above restated Plan is hereby adopted and approved, to be effective as of January 1, 1989 (except as otherwise provided).

  

			
	The Pepsi Bottling Group, Inc.
		
	By:	 	 
		 	


  

			
	APPROVED
		
	By:	 	 
		 	Law Department



  
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 APPENDIX 
 Foreword 
 This Appendix sets forth additional provisions applicable
to individuals specified in the Articles of this Appendix. In any case where there is a conflict between the Appendix and the main text of the Plan, the Appendix shall govern. 

  
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 ARTICLE A – 1993 Accruals 

This Article A of the Appendix shall be effective on the date the Plan is adopted. 

A.1 1993 Accruals: This section shall apply to any individual: (i) who was a Salaried Plan Participant and employed by
the PBG Organization (as defined below) on December 31, 1993, (ii) whose Salaried Plan Pension was vested during 1993 (or would have become vested in 1994 if his Service after 1993 included the assumed period of continued service specified
in (a)(1) below), and (iii) whose minimum 1993 Pension in subsection (a) below is not derived solely from that portion of the Plan described in (c) of Article X. In determining the amount of the 1993 and 1994 Pension amounts for any
such individual, the provisions set forth in subsections (a) and (b) below shall apply. 
 (a)
Minimum 1993 Pension: Any individual who is covered by this section shall accrue a minimum 1993 Pension as of December 31, 1993. In determining the amount of such individual’s minimum 1993 Pension, the following shall apply.

 (1) An individual’s Service and Credited Service as of the end of 1993 shall be assumed to equal the
respective Service and Credited Service he would have if his Service continued through December 31, 1994. Notwithstanding the preceding sentence, the assumed period of continued Service shall be less to the extent PepsiCo, Inc.’s human
resource records on December 31, 1993 reflected a scheduled termination date in 1994 for such individual. In this case, the individual’s assumed period of continued service shall be the portion of 1994 that ends with such scheduled
termination date. 

  
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 (2) An individual’s Highest Average Monthly Earnings as of the end of
1993 shall be adjusted by the actuary’s salary scale assumption which is used under the Salaried Plan, so that they equal the amount such scale projects for the individual as of the end of 1994. Notwithstanding the preceding sentence, the
following special rules shall apply. 
 (i) A higher salary scale assumption shall be used for anyone whose
projected 1994 earnings as reflected on the “Special PEP Salary Scale” of the PBG Benefits Department on December 31, 1993 were higher than would be assumed under the first sentence of this paragraph. In this case, the
individual’s 1993 earnings shall be adjusted using such higher salary scale. 
 (ii) In the case of an
individual whose assumed period of service under paragraph (1) above is less than all of 1994, the salary adjustment under the preceding provisions of this paragraph shall be reduced to the amount that would apply if the individual had no
earnings after his scheduled termination date. 
 (3) An individual’s attained age as of the end of 1993
shall be assumed to be the age he would have at the end of the assumed period of continued service applicable under paragraph (1) above. 
 Any individual who is covered by this section, and who is not otherwise vested as of December 31, 1993, shall be vested as of such date in both his Pension (determined without regard to this
subsection) and his minimum 1993 Pension. For purposes of this subsection, Code section 401(a)(17) shall be applied in 1993 by giving effect to the 

  
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amendments to such Code section made by the Omnibus Budget Reconciliation Amendments of 1993. 
 (b) Determination of Later Accruals: If a participant in the Salaried Plan accrues a minimum 1993 Pension under subsection (a) above, the amount of any PEP Pension that accrues
thereafter shall be only the amount by which the PEP Pension that would otherwise accrue for years after 1993 exceeds his minimum 1993 Pension under subsection (a). 

  
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 ARTICLE P98 – PepsiCo Special Early Retirement Benefit 

P98.1 Scope: This Article supplements the main portion of the Plan document with respect to the rights and benefits of
Covered Employees on and after the Effective Date. 
 P98.2 Definitions: This section provides definitions for the
following words or phrases in boldface and underlined. Where they appear in this Article with initial capitals they shall have the meaning set forth below. Except as otherwise provided in this Article, all defined terms shall have the meaning given
to them in Section 2.1 of the Plan. 
 (a) Article: This Article P98 of the Appendix to the
Plan. 
 (b) Covered Employee: An Employee who does not meet the eligibility requirements for the
Salaried Plan Early Retirement Benefit as of his Severance Date solely because he is a highly compensated employee within the meaning of Article S and Section S.5(c)(1) of the Salaried Plan Appendix. 

(c) Effective Date: The date the provisions of this Article are effective, which shall be February 1,
1998. 
 (d) Salaried Plan Special Early Retirement Benefit: The special early retirement benefit
for certain Company employees referred to in Section S.5(c)(1) of the Salaried Plan Appendix. 
 (e)
Severance Date: The involuntary termination of employment referred to in Section S.5(c)(1) of the Salaried Plan Appendix that qualifies an eligible Employee for status as a Covered Employee. 

P98.3 Amount and Form of Retirement Pension: In lieu of any benefits he would otherwise be entitled to under this Plan, a
Covered Employee shall receive a single lump sum 

  
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benefit as soon as administratively practical following his Severance Date. No other benefits under this Plan are payable to a Participant who is entitled to a benefit under this section. The
amount of such lump sum shall be the excess of: 
 (a) The Actuarial Equivalent present value of the Covered
Employee’s Total Pension (as defined in Section 5.1(c)) determined as of his Severance Date, for this purpose treating the Covered Employee as eligible for the Salaried Plan Special Early Retirement Benefit, and treating the benefit as
commencing on his Severance Date; over 
 (b) The Actuarial Equivalent present value of the Covered
Employee’s Salaried Plan Pension (as defined in Section 5.1(c)) determined as of his Severance Date, for this purpose determining the benefit without regard to this Appendix, and treating the benefit as commencing on his Normal Retirement
Date. 
 For purposes of this calculation, amounts shall be determined as of the Participant’s Severance Date,
“Actuarial Equivalent” shall be based on the factors in effect on such date using the definition in Section 2.1(b)(2) for lump sums conversions, and the Participant shall be treated as taking his Total Pension in the form of a Single
Life Annuity. In the case of a Covered Employee who is eligible for a PEP Guarantee (as defined in Section 5.2), and for purposes of subsection (a) only, the reduction factors for early commencement of a PEP Guarantee under
Section 5.2 of this Plan shall apply in lieu of those in the Salaried Plan Special Early Retirement Benefit formula if they provide a greater PEP benefit. 

  
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 Article IPO – Transferred and Transition Individuals 

IPO.1 Scope: This Article supplements the main portion of the Plan document with respect to the rights and benefits of
Transferred and Transition Individuals following the spinoff of this Plan from the PepsiCo Prior Plan. 
 IPO.2
Definitions: This section provides definitions for the following words or phrases in boldface and underlined. Where they appear in this Article with initial capitals they shall have the meaning set forth below. Except as otherwise
provided in this Article, all defined terms shall have the meaning given to them in Section 2.1 of the Plan. 
 (a) Agreement: The 1999 Employee Programs Agreement between PepsiCo, Inc. and The Pepsi Bottling Group, Inc. 

(b) Close of the Distribution Date: This term shall take the definition given it in the Agreement.

 (c) Transferred Individual: This term shall take the definition given it in the Agreement.

 (d) Transition Individual: This term shall take the definition given it in the Agreement.

 IPO.3 Rights of Transferred and Transition Individuals: All Transferred Individuals who participated in the
PepsiCo Prior Plan immediately prior to the Effective Date shall be Participants in this Plan as of the Effective Date. The spinoff of this Plan from the PepsiCo Prior Plan shall not result in a break in the Service or Credited Service of
Transferred Individuals or Transition Individuals. Notwithstanding anything in the Plan to the contrary, and as provided in Section 2.04 of the Agreement, all service, all compensation, and all other benefit-affecting


  
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determinations for Transferred Individuals that, as of the Close of the Distribution Date, were recognized under the PepsiCo Prior Plan for periods immediately before such date, shall as of the
Effective Date continue to receive full recognition, credit and validity and shall be taken into account under this Plan as if such items occurred under this Plan, except to the extent that duplication of benefits would result. Similarly,
notwithstanding anything to the contrary in the Plan, the benefits of Transition Individuals shall be determined in accordance with section 8.02 of the Agreement. 

  
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 SENIOR VICE PRESIDENT, HUMAN RESOURCES 

DELEGATION OF AUTHORITY TO 
 ADMINISTER FINANCIAL PLANS 
 WHEREAS, at a meeting of the Compensation and
Management Development Committee of the Board of Directors (the “Committee”) of The Pepsi Bottling Group, Inc. (“PBG”) on April 27 1999, the Committee delegated to the Senior Vice President, Human Resources, the authority to
take any and all action required to administer PBG’s employee benefit plans; and 
 WHEREAS, the Senior Vice President,
Human Resources has determined to delegate authority to take any and all such action required to administer PBG’s tax-qualified pension plans, including the defined benefit pension plans and the 401(k) plans, and the non-qualified benefit plans
related to the defined benefit pension plans and 401(k) plans, all of which were previously approved by the Committee or its delegate pursuant to resolution duly adopted on April 27, 1999 (the “Financial Plans”); and 

THEREFORE, BE IT RESOLVED, that each of the Financial Plans are hereby amended to provide (i) that the Company, by action of its
Senior Vice President, Human Resources, shall appoint a Plan Administrator; (ii) that the Senior Vice President, Human Resources, may remove such person or change such appointment from time to time provided such changes are published to the
extent of enabling interested parties to ascertain the person or persons responsible for operating such plan; and (iii) that in the absence of such an appointment, the Company shall serve as Plan Administrator, and shall designate specified
individuals or other persons to carry out specified fiduciary responsibilities under the Plan; and 
 RESOLVED, that the Senior
Vice President, Human Resources hereby delegates to the Director, Financial Plans, the authority to take any and all action required to administer the Financial Plans and hereby appoints the Director, Financial Plans as Plan Administrator and
“named fiduciary” for purposes of plan administration within the meaning of the Employee Retirement Income Security Act of 1974 as amended from time to time (“ERISA”) for the ERISA-governed Financial Plans; and further

 RESOLVED, that the Senior Vice President, General Counsel and Secretary, and each of his designees, and each designee of the
undersigned, are authorized to execute and deliver all agreements, documents and instruments, and take any further action as he or they deem necessary or appropriate to carry out the intent and purpose of the foregoing resolution.


	
	
	/s/ John L. Berisford
	 John L. Berisford
 Senior
Vice President, Human Resources

	
	Date: 4/17/09


  

	
	APPROVED:
	
	/s/ Christine Morace
	Law Department








 AMENDMENT TO THE 

PBG PENSION EQUALIZATION PLAN 
 EFFECTIVE AS OF APRIL 6, 1999 
 The PBG Pension Equalization Plan effective
as of April 6, 1999 (the “Plan”) is hereby amended as set forth below, effective as of the “Effective Time” (as defined in Amendment No. 5 below) and contingent upon the occurrence of the Effective Time. 

 

	1.	Article I is amended by adding the following new paragraph at the end thereof: 


“PBG now wishes to amend the Plan, effective as of the Effective Time (as defined in Article II), as a result of the
merger of PBG with and into Pepsi-Cola Metropolitan Bottling Company, Inc., a wholly-owned subsidiary of PepsiCo, Inc. (the “Company”), pursuant to the Agreement and Plan of Merger dated as of August 3, 2009 among PBG, the Company and
Pepsi-Cola Metropolitan Company, Inc., and to facilitate the Company’s assumption of PBG’s role as the Plan’s sponsor.” 
  

	2.	The definition of “Company or PBG” in Section 2.1(h) is deleted and replaced with the following: 


“(h) Company. PepsiCo, Inc., a corporation organized and existing under the laws of the State of North Carolina, or its
successor or successors. For periods before the Effective Time and on or after April 6, 1999, the Company was The Pepsi Bottling Group, Inc. For periods before April 6, 1999, the Company was PepsiCo, Inc.” 

 

	3.	The definition of “PBG Organization” in Section 2.1(y) is deleted and replaced with the following: 


“(y) PepsiCo/PBGOrganization. The controlled group of organizations of which the Company is a part, as defined by Code
section 414 and regulations issued thereunder. An entity shall be considered a member of the PepsiCo/PBG Organization only during the period it is one of the group of organizations described in the preceding sentence. The application of this
definition for periods prior to the Effective Time shall take into account the different definition of “Company” that applies prior to the Effective Time.” 

 

	4.	The definition of “Plan Administrator” in Section 2.1(ff) is amended to read as follows: 


“(ff) Plan Administrator. The PepsiCo Administration Committee (PAC), which shall have authority to administer the Plan
as provided in Article VII.” 

  
 1 









	5.	The following new definition is added to Section 2.1: 

 “Effective Time. The meaning applied to that term in the Agreement and Plan of Merger dated as of August 3, 2009, among The Pepsi Bottling Group, Inc., PepsiCo, Inc., and
Pepsi-Cola Metropolitan Bottling Company, Inc.” 
  

	6.	Minor corrections to the Plan necessary to carry forth the above amendments, including re-alphabetizing and renumbering the defined terms in Article II to reflect
changes thereto, and corrections to cross-references affected by these amendments, shall be made as necessary after applying the foregoing amendments. 

 Dated this 19 day of February 2010. 
  

			
	THE PEPSI BOTTLING GROUP, INC.
		
	By:	 	/s/ John Berisford
		 	John Berisford,
	Title:	 	Senior Vice President, Human Resources


  

			
	PBG LAW DEPARTMENT APPROVAL:
		
	By:	 	/s/ Christine Morace
		 	Christine Morace

  

			
	 Consented to and Approved by:
  

PEPSICO, INC.

		
	By:	 	/s/ Cynthia M. Trudell
		 	Cynthia M. Trudell
	Title:	 	 Senior Vice President and

Chief Personnel Officer

		
	Date:	 	2/18/2010


  

			
	PEPSICO LAW DEPARTMENT APPROVAL:
		
	By:	 	/s/ Stacy L. DeWalt
		 	Stacy L. DeWalt


  
 2