Document:

exv10w55

Exhibit 10.55

Amendment No. 1 to Employment Agreement

     This Amendment No. 1 to the Employment Agreement (as defined below) (the “Amendment”), is made
this 23rd day of December, 2008 between Idenix Pharmaceuticals, Inc., a corporation incorporated
under the laws of the State of Delaware (together with its successors and assigns, the “Company”)
and Dr. Jean-Pierre Sommadossi, a resident of the Commonwealth of Massachusetts, and the Company’s
Chairman, President and Chief Executive Officer (the “Employee”).

     WHEREAS, the Company and the Employee are parties to that certain Employment Agreement, dated
May 6, 2003 (the “Employment Agreement”), and

     WHEREAS, the Company and the Employee wish to amend the Employment Agreement as a result of
the implementation of Section 409A of the Internal Revenue Code of 1986 (the “Code”) and the
guidance issued thereunder (“Section 409A”) and furthermore to ensure that the Employment Agreement
is compliant with Section 409A.

     NOW THEREFORE, in consideration of the mutual covenants and representations contained herein,
the Company and the Employee (individually, a “Party” and, together, the “Parties”) hereto agree as
follows:

	1.	 	The following section shall be inserted immediately after Section 17 of the Agreement:

“18. PAYMENTS SUBJECT TO SECTION 409A.

Any severance payments or benefits under this Agreement shall begin only upon the date of the
Employee’s “separation from service” (determined as set forth below) which occurs on or after the
date of termination of the Employee’s employment. The following rules shall apply with respect to
distribution of the payments and benefits, if any, to be provided to the Employee under this
Agreement:

     a. It is intended that each installment of the severance payments and benefits provided under
this Agreement shall be treated as a separate “payment” for purposes of Section 409A. Neither the
Company nor the Employee shall have the right to accelerate or defer the delivery of any such
payments or benefits except to the extent specifically permitted or required by Section 409A.

     b. If, as of the date of Employee’s “separation from service” from the Company, the Employee
is not a “specified employee” (within the meaning of Section 409A), then each installment of the
severance payments and benefits shall be made on the dates and terms set forth in this Agreement.

     c. If, as of the date of the Employee’s “separation from service” from the Company, the
Employee is a “specified employee” (within the meaning of Section 409A), then:

           i. Each installment of the severance payments and benefits due under this Agreement that, in
accordance with the dates and terms set forth herein, will in all circumstances, regardless of when
the separation from service occurs, be paid within the Short-Term Deferral

 

 

Period (as hereinafter defined) shall be treated as a short-term deferral within the meaning of
Treasury Regulation § 1.409A-1(b)(4) to the maximum extent permissible under Section 409A. For
purposes of this Agreement, the “Short-Term Deferral Period” means the period ending on the later
of the fifteenth day of the third month following the end of the Employee’s tax year in which the
separation from service occurs and the fifteenth day of the third month following the end of the
Company’s tax year in which the separation from service occurs; and

           ii. Each installment of the severance payments and benefits due under this Agreement that is
not described in paragraph c(i) above and that would, absent this subsection, be paid within the
six-month period following the Employee’s “separation from service” from the Company shall not be
paid until the date that is six months and one day after such separation from service (or, if
earlier, the Employee’s death), with any such installments that are required to be delayed being
accumulated during the six-month period and paid in a lump sum on the date that is six months and
one day following the Employee’s separation from service and any subsequent installments, if any,
being paid in accordance with the dates and terms set forth herein; provided,
however, that the preceding provisions of this sentence shall not apply to any installment
of severance payments and benefits if and to the maximum extent that that such installment is
deemed to be paid under a separation pay plan that does not provide for a deferral of compensation
by reason of the application of Treasury Regulation § 1.409A-1(b)(9)(iii) (relating to separation
pay upon an involuntary separation from service). Any installments that qualify for the exception
under Treasury Regulation § 1.409A-1(b)(9)(iii) must be paid no later than the last day of the
Employee’s second taxable year following the taxable year in which the separation from service
occurs.

     d. The determination of whether and when the Employee’s separation from service from the
Company has occurred shall be made and in a manner consistent with, and based on the presumptions
set forth in, Treasury Regulation § 1.409A-1(h). Solely for purposes of this paragraph d,
“Company” shall include all persons with whom the Company would be considered a single employer
under Section 414(b) and 414(c) of the Code.

     e. All reimbursements and in-kind benefits provided under this Agreement shall be made or
provided in accordance with the requirements of Section 409A to the extent that such reimbursements
or in-kind benefits are subject to Section 409A, including, where applicable, the requirements that
(i) any reimbursement is for expenses incurred during the Employee’s lifetime (or during a shorter
period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement
during a calendar year may not affect the expenses eligible for reimbursement in any other calendar
year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the
calendar year following the year in which the expense is incurred and (iv) the right to
reimbursement is not subject to set off or liquidation or exchange for any other benefit.

     f. Notwithstanding anything herein to the contrary, the Company shall have no liability to the
Employee or to any other person if the payments and benefits provided hereunder that are intended
to be exempt from or compliant with Section 409A are not so exempt or compliant.”

	2.	 	All other terms and conditions of the Agreement remain in full force and effect.

 

 

     IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first written
above and this Amendment shall be effective and binding on the Parties from such date.

	 	 	 	 	 
	 	IDENIX PHARMACEUTICALS, INC.

 	 
	 	/s/ John F. Weidenbruch
 	 
	 	John F. Weidenbruch 	 
	 	Executive Vice President, General Counsel 	 
	 

	 	 	 	 	 
	 	EMPLOYEE

 	 
	 	/s/Jean-Pierre Sommadossi
 	 
	 	Jean-Pierre Sommadossi 	 
	 	Chairman and Chief Executive OfficerEX-10.2

Exhibit 10.2

 

 

 

 

 

 

 

PEPSIAMERICAS, INC.

DEFERRED COMPENSATION PLAN FOR DIRECTORS

(as amended and restated effective January 1, 2008)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	INTRODUCTION
	 	 	1	 
	ARTICLE 1 Definitions
	 	 	2	 
	Section 1.1 “Administrator”
	 	 	2	 
	Section 1.2 “Agreement”
	 	 	2	 
	Section 1.3 “Annual Enrollment Period”
	 	 	2	 
	Section 1.4 “Beneficiary”
	 	 	2	 
	Section 1.5 “Board”
	 	 	2	 
	Section 1.6 “Change of Control”
	 	 	2	 
	Section 1.7 “Cash Account”
	 	 	3	 
	Section 1.8 “Cash Compensation”
	 	 	3	 
	Section 1.9 “Code”
	 	 	3	 
	Section 1.10 “Company Stock”
	 	 	3	 
	Section 1.11 “Company”
	 	 	3	 
	Section 1.12 “Deferred Compensation”
	 	 	3	 
	Section 1.13 “Director”
	 	 	3	 
	Section 1.14 “Effective Date”
	 	 	4	 
	Section 1.15 “Entry Date”
	 	 	4	 
	Section 1.16 “Equity Account”
	 	 	4	 
	Section 1.17 “Equity Compensation”
	 	 	4	 
	Section 1.18 “Individual Account”
	 	 	4	 
	Section 1.19 “Participant”
	 	 	4	 
	Section 1.20 “Payment Date”
	 	 	4	 
	Section 1.21 “Plan Year”
	 	 	4	 
	Section 1.22 “Plan”
	 	 	4	 
	Section 1.23 “Separation from Service”
	 	 	4	 
	Section 1.24 “Unforeseen Hardship”
	 	 	4	 
	Section 1.25 “Valuation Date”
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 2 PLAN ELIGIBILITY AND PARTICIPATION
	 	 	4	 
	Section 2.1 Eligibility
	 	 	4	 
	Section 2.2 Participation
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 3 CONTRIBUTION CREDITS AND VESTING
	 	 	5	 
	Section 3.1 Elective Deferral Contributions
	 	 	5	 
	Section 3.2 Vesting
	 	 	5	 
	Section 3.3 Individual Accounts
	 	 	5	 
	Section 3.4 Interest
	 	 	5	 
	Section 3.5 Administrative Expenses
	 	 	5	 
	Section 3.6 Equitable Procedures
	 	 	6	 
	Section 3.7 Unfunded Status of Plan
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 4 BENEFITS
	 	 	6	 
	Section 4.1 Entitlement to Benefits
	 	 	6	 
	Section 4.2 Deferred Compensation Benefit
	 	 	6	 
	Section 4.3 Death Benefit
	 	 	6	 
	Section 4.4 Change of Control Benefit
	 	 	7	 
	Section 4.5 Unforeseen Hardship Distribution
	 	 	7	 
	Section 4.6 Election to Change the Form of a Distribution
	 	 	7	 

i

 

	 	 	 	 	 
	 	 	Page
	ARTICLE 5 PLAN  ADMINISTRATION
	 	 	8	 
	Section 5.1 Authority of Administrator
	 	 	8	 
	Section 5.2 Delegation
	 	 	8	 
	Section 5.3 Records and Rules
	 	 	8	 
	Section 5.4 Claims Procedure
	 	 	8	 
	Section 5.5 Legal Incompetence
	 	 	9	 
	Section 5.6 Correction of Errors
	 	 	9	 
	Section 5.7 Duration of Appointment
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 6 PLAN AMENDMENT, TERMINATION AND DISCONTINUANCE OF CONTRIBUTIONS
	 	 	9	 
	Section 6.1 Amendment of Plan
	 	 	9	 
	Section 6.2 Suspension and Termination of Plan; Discontinuance of Contributions
	 	 	10	 
	Section 6.3 Distribution upon Complete Termination and Administration Following
Discontinuance of All Contribution Credits
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 7 MISCELLANEOUS PROVISIONS
	 	 	10	 
	Section 7.1 No Other Rights
	 	 	10	 
	Section 7.2 Nonalienation of Benefits
	 	 	10	 
	Section 7.3 Income Tax
	 	 	10	 
	Section 7.4 Construction
	 	 	11	 
	Section 7.5 Controlling Law
	 	 	11	 
	Section 7.6 Effect of Invalidity of Provision
	 	 	11	 
	Section 7.7 Inurement
	 	 	11	 
	Section 7.8 Nature of Participant and Beneficiary Rights
	 	 	11	 
	Section 7.9 Regulatory Guidance
	 	 	11	 
	Section 7.10 Discretion of Administrator
	 	 	11	 
	Section 7.11 Liability and Indemnification
	 	 	11	 
	Section 7.12 Headings
	 	 	12	 
	Section 7.13 Beneficiary Designation
	 	 	12	 
	Section 7.14 Compliance with Code Section 409A
	 	 	12	 

ii

 

INTRODUCTION

     Purpose. The purpose of this Plan is to establish a method for the deferral of
compensation by the Directors of PepsiAmericas. Inc. This will assist the Company in attracting
and retaining as members of its Board of Directors those persons whose abilities, experience, and
judgment will contribute to the continued progress of the Company. The Plan is intended to comply
with Section 409A of the Internal Revenue Code of 1986, as amended.

     Effective Date. This Plan is a continuation, amendment and restatement of the
Company’s Deferred Compensation Plan for Directors originally adopted March 20, 1970, and
subsequently amended from time to time. The effective date of the restated Plan as described
herein is January 1, 2008.

 

 

ARTICLE 1

DEFINITIONS

     As used herein, the following words and phrases shall have the meaning indicated unless
otherwise defined or required by the context:

     Section 1.1 “Administrator” shall mean the individual(s) that the Board appoints as
Administrator.

     Section 1.2 “Agreement” shall mean the Deferred Compensation Election Form between a
Participant and the Company. The terms of such Agreement shall outline the amount of compensation
that a Participant elects to defer and shall enumerate any terms or requirements specifically
applicable for such Participant.

     Section 1.3 “Annual Enrollment Period” shall mean with respect to any Plan Year, the
period prior to the first day of the Plan Year (or, in the case of those notified of first
eligibility during a Plan Year, the period ending thirty (30) days thereafter) during which a
Director must enroll (in accordance with Section 2.2) in order to make deferrals for the Plan Year.

     Section 1.4 “Beneficiary” shall mean the recipient or recipients last designated by
the Participant in writing, on forms provided by the Administrator and filed with the
Administrator, who shall receive any benefit payable under the Plan upon the death of such
Participant. If no such designation of Beneficiary has been received by the Secretary prior to the
date of death of the Participant or in the event all such designated Beneficiaries shall fail to
survive the Participant, any such benefit shall be payable in a lump sum in accordance with the
provisions of Sections 4.3.

     Section 1.5 “Board” shall mean the Board of Directors of the Company.

     Section 1.6 “Change of Control” shall be deemed to have occurred if:

	 	(a)	 	any one person or more than one person acting as a group acquires ownership of
stock of the Company that, together with the stock held by such person or group,
constitutes more than fifty percent (50%) of the total fair market value or total
voting power of the stock of the Company, other than a merger in which the holders of
the Company’s common stock immediately prior to the merger have substantially the same
proportionate ownership of common stock of the surviving corporation immediately after
the merger. However, if any one person or more than one person acting as a group, is
considered to own more than fifty percent (50%) of the total fair market value or total
voting power of the stock of the Company, the acquisition of additional stock by the
same person or persons is not considered to cause a change in the ownership of the
Company or to cause a change in the effective control of the Company; or
	 
	 	(b)	 	any one person, or more than one person acting as a group acquires (or has
acquired during the twelve (12) month period ending on the date of the most recent
acquisition by such person or persons) ownership of stock of the Company

2

 

	 	 	 	possessing thirty percent (30%) percent or more of the total voting power of the
stock of the Company; or
	 
	 	(c)	 	any one person, or more than one person acting as a group acquires (or has
acquired during the twelve (12) month period ending on the date of the most recent
acquisition by such person or persons) assets from the Company and/or a direct or
indirect subsidiary that has a total gross fair market value equal to or more than
forty percent (40%) of the total gross fair market value of all of the assets of the
Company and all of its direct or indirect subsidiaries, taken as a whole, immediately
prior to such acquisition or acquisitions;
	 
	 	(d)	 	any one person, or more than one person acting as a group acquires (or has
acquired during the twelve (12) month period ending on the date of the most recent
acquisition by such person or persons) stock of one or more direct or indirect
subsidiaries of the Company where the total gross fair market value of the assets of
such subsidiary(ies) is equal to or more than forty percent (40%) of the total gross
fair market value of all of the assets of the Company and all of its direct or indirect
subsidiaries, taken as a whole, immediately prior to such acquisition or acquisitions;
or
	 
	 	(e)	 	a majority of the members of the Company’s or a direct or indirect subsidiary’s
Board is replaced during any twelve (12) month period by Directors whose appointment or
election is not endorsed by a majority of the members of the Company’s or the relevant
subsidiary’s Board prior to the date of the appointment or election.

     Notwithstanding (a), (b), (c) or (d) above, a proposed transaction wherein PepsiCo, Inc. would
acquire a less than fifty percent (50%) interest in the common stock of the Company or its
successor shall not constitute a Change of Control.

     Section 1.7 “Cash Account” shall mean the sub-account of the Individual Account that
contains the Participant’s deferred Cash Compensation.

     Section 1.8 “Cash Compensation” shall mean the amount paid to the Director in cash.

     Section 1.9 “Code” shall mean the Internal Revenue Code of 1986, as amended from time
to time.

     Section 1.10 “Company Stock” shall mean the common stock of the PepsiAmericas, Inc.
Company.

     Section 1.11 “Company” shall mean PepsiAmericas, Inc., a Delaware corporation and its
successors and assigns.

     Section 1.12 “Deferred Compensation” shall mean the amount credited to the
Participant’s Individual Account.

     Section 1.13 “Director” shall mean a non-employee Director of the Company.

3

 

     Section 1.14 “Effective Date” shall mean the effective date of the Plan, which was
March 20, 1970. “Restatement Effective Date” means January 1, 2008.

     Section 1.15 “Entry Date” shall mean the date that Participant first meets the
eligibility and participation requirements of Section 2.1 and 2.2.

     Section 1.16 “Equity Account” shall mean the sub-account of the Individual Account
that contains the Participant’s deferred Equity Compensation.

     Section 1.17 “Equity Compensation” shall mean the amount paid to a Director in the
form of Company Stock.

     Section 1.18 “Individual Account” shall mean the total amount standing to the credit
of a Participant on the Company’s books pursuant to the terms of the Plan.

     Section 1.19 “Participant” shall mean a Director with a Cash Account or Equity Account
under the Plan.

     Section 1.20 “Payment Date” shall mean the first day of the month following a
Director’s Separation from Service.

     Section 1.21 “Plan Year” shall mean the twelve (12) month period commencing each
January 1 and ending each December 31.

     Section 1.22 “Plan” shall mean the PepsiAmericas, Inc. Deferred Compensation Plan for
Directors as contained herein and as amended from time to time.

     Section 1.23 “Separation from Service” shall mean the separation from service by the
Participant within the meaning of Code Section 409A.

     Section 1.24 “Unforeseen Hardship” shall mean a Participant’s severe financial
hardship resulting from an unforeseeable emergency such as (a) an illness or accident of the
Participant or the Participant’s spouse or dependent, (b) the loss of the Participant’s property
because of casualty, or (c) other similar extraordinary and unforeseeable circumstances arising as
a result of events beyond the control of the Participant, as determined by the Administrator.

     Section 1.25 “Valuation Date” shall mean the last day of the Plan Year.

ARTICLE 2

PLAN ELIGIBILITY AND PARTICIPATION

     Section 2.1 Eligibility. All Directors of the Company are eligible to participate in
this Plan on the date that they become a Director.

     Section 2.2 Participation. A Director shall become a Participant upon execution of an
Agreement during the Annual Enrollment Period.

4

 

ARTICLE 3

CONTRIBUTION CREDITS AND VESTING

     Section 3.1 Elective Deferral Contributions. During the Annual Enrollment Period, a
Participant may elect to defer up to one hundred percent (100%) of his/her annual Cash Compensation
and/or Equity Compensation by entering into an Agreement with the Company and specifying in such
Agreement the source and percentage of such contributions. Such contributions shall be credited to
the Cash Account or Equity Account of the Participant’s Individual Account.

     Section 3.2 Vesting. A Participant shall be 100% vested in all amounts deferred to
his or her Individual Account; provided however, a Director shall forfeit permanently any payment
of Deferred Compensation to which he would be entitled for any month or portion thereof in which he
engages, either as an officer, director, employee, proprietor, partner, shareholder owning more
than 10% of the capital stock of any corporation, or consultant, in any business competitive with
that being carried on by the Company, as determined by the Board in its sole discretion at the time
payment of Deferred Compensation is to be made.

     Section 3.3 Individual Accounts. The Administrator shall establish and maintain an
Individual Account in the Company’s financial books and records in the name of each Participant,
and the Administrator shall credit this Individual Account with Deferred Compensation elected by a
Participant in accordance with this Article 3 and the Participant’s Agreement. Such Individual
Account shall be a record keeping account.

     Section 3.4 Interest.

	 	(a)	 	The Administrator shall credit the Cash Account with interest compounded
annually as of each Valuation Date based upon the prime rate of interest as reported in
The Wall Street Journal on the last day of the Plan
Year.
	 
	 	(b)	 	Monthly distributions from the Cash Account shall be calculated by, first,
determining the total value of the Cash Account and accrued interest as provided in (a)
above to the Payment Date. To this amount (the Principal) shall be applied an interest
rate equal to the simple average of the Prime Rate of interest as reported in
The Wall Street Journal, on December 31 of each of the
three years immediately preceding the Payment Date, with the principal and interest at
such rate amortized over the monthly payments to be made to the Director in accordance
with a standard amortization table such that each monthly payment shall be in an equal
amount.
	 
	 	(c)	 	No interest shall be credited with respect to the Equity Account. Dividends
payable with respect to the Company Stock shall be credited to the Equity Account.

     Section 3.5 Administrative Expenses. All administrative expenses for the maintenance
of this Plan shall be paid by the Company, with no allocation to, or crediting against the
Individual Accounts.

5

 

     Section 3.6 Equitable Procedures. The Administrator shall establish regular
procedures for the purpose of making the credits and adjustments as needed to Individual Accounts
provided for in this Article 3.

     Section 3.7 Unfunded Status of Plan. This Plan is intended to be unfunded and the
crediting of a Participant’s Individual Account in the Company’s financial records does not in any
way obligate the Company to set aside money to pay such obligation. Benefits payable under the
Plan are payable from the general assets of the Company, though the Company retains the right in
its discretion to establish a trust (including a Rabbi Trust), ensure that assets will be available
to pay benefits at the time they become due. Any such assets will be held in the name of the
Company, or the trustee and will be subject to the claims of the general creditors of the Company.

ARTICLE 4

BENEFITS

     Section 4.1 Entitlement to Benefits. Except as otherwise provided below, or in the
Participant’s Agreement, a Participant shall be entitled to payment on the Payment Date of a
benefit equal to the value of his/her entire vested Individual Account. A Participant shall be
vested in accordance with Section 3.2.

     The Company agrees to pay to the Participant or his/her Beneficiary the amount credited to
his/her Individual Account in accordance with the applicable provisions below. In the event that
multiple sections of this Article 4 could potentially apply, benefits to the Participant or his/her
Beneficiary shall only be payable under the single most applicable section of Article 4, as
determined by the Administrator.

     Section 4.2 Deferred Compensation Benefit.

	 	(a)	 	Election of Form of Payment. All distributions shall be in accordance
with the Participant’s Election of Form of Payment less any distributions made due to
an Unforeseen Hardship, as specified in the Participant’s Election of Form of Payment
and beginning on the Payment Date. Monthly installment payments will be made on the
first day of the month.
	 
	 	(b)	 	Cash Compensation. A Participant can elect to receive payment upon
Separation from Service or on a date specified by the Participant. Payment can be
either in a lump sum or in monthly installments. Payment shall commence on the Payment
Date. If no installment option is selected, payment shall be made over thirty six
months.
	 
	 	(c)	 	Equity Compensation. A Participant can elect to receive payment in a
lump sum on the Payment Date or on a date specified by the Participant, provided such
date is at least six months later than the date the Equity Compensation is awarded to
the Participant.

     Section 4.3 Death Benefit. In the event of the Participant’s death prior to the
Participant’s Payment Date or the full payment from the Cash Account, the Participant’s

6

 

Beneficiary will receive a lump sum distribution in an amount equivalent to the balance of the
Participant’s Individual Account, determined as of the most recent Valuation Date preceding the
Participant’s date of death. Payment shall be made on the first day of the month following the
Participant’s death.

     Section 4.4 Change of Control Benefit.

	 	(a)	 	In the event that a Participant is a Director upon the occurrence of a Change
of Control, and notwithstanding the Participant’s election in accordance with Section
4.2, the Participant shall receive a lump sum payment in an amount equivalent to the
balance of the Participant’s Individual Account, determined as of the most recent
Valuation Date preceding the date of the Change of Control. Payment shall be made on
the first day of the month following the Change of Control.
	 
	 	(b)	 	In the event that a Change of Control occurs following a Participant’s
Separation from Service and notwithstanding the Participant’s election in accordance
with Section 4.2, the Participant shall receive a lump sum payment in an amount
equivalent to the remaining balance of the Participant’s Individual Account determined
as of the most recent Valuation Date preceding the date of the Change of Control.
Payment shall be made on the first day of the month following the Change of Control.

     Section 4.5 Unforeseen Hardship Distribution. In the event of a Participant’s
Unforeseen Hardship, the Participant may elect to receive a lump sum benefit distribution payment
of an amount equivalent to the amount necessary to satisfy such Unforeseen Hardship (and to cover
taxes reasonably anticipated to result from the distribution), provided that such withdrawal
distribution takes into account the extent to which the Unforeseen Hardship is or may be relieved
through reimbursement or compensation by insurance or otherwise or by liquidation of the
Participant’s assets.

     Section 4.6 Election to Change the Form of a Distribution. The form of payment
election is irrevocable, unless the Participant executes a Payment Election Change Form as to
either the time or form of payment, or both. To be effective, the Payment Election Change Form
must be executed and filed with the Administrator at least twelve (12) months before the
commencement of distributions and the new form of payment must be at least five (5) full years
later than the previous selected form. For purposes of applying the five-year period described
above, the initial election of installment payments shall be treated as a single payment. A
Participant may execute a Payment Election Change Form at any time provided that each such form
meets the rules set out in this Section. The most recently dated Payment Election Change Form
selecting the timing and form of payment applies.

     Notwithstanding the foregoing, pursuant to Notice 2007-86, the Director may elect prior to
December 31, 2008, to change his or her payment election to an alternate form of payment a payment
period, or both, without regard to the requirements of the preceding paragraph; provided however
such election may apply only to amounts that would not otherwise be payable in 2008 and may not
cause an amount to be paid in 2008 that would not otherwise be payable in 2008.

7

 

ARTICLE 5

PLAN ADMINISTRATION

     Section 5.1 Authority of Administrator. The Administrator shall administer, construe
and interpret the Plan in its sole discretion, and taking into account the applicable terms of the
Plan. The construction and interpretation of any provision of the Plan by the Administrator shall
be final and binding upon all persons. The authority of the Administrator shall specifically
include, but not be limited to, the resolution of any issue regarding the entitlement of any
individual to the payment of any benefit under the Plan.

     Section 5.2 Delegation. The Administrator and/or the Board may, in their sole
discretion, delegate any of their duties under the Plan to an officer or employee (or committee
thereof) of the Company, who shall serve in such capacity at their pleasure.

     Section 5.3 Records and Rules. The Administrator shall keep written records
sufficient to reflect the identity of Participants and Individual Account balances. It shall adopt
such rules as it shall deem reasonable and appropriate to the administration of the Plan.

     Section 5.4 Claims Procedure. Claims for benefits under the Plan shall be filed with
the Administrator on forms supplied by the Administrator. If the Administrator shall determine
that benefits applied for by a Participant or Beneficiary shall be denied either in whole or in
part, the following provisions shall govern:

	 	(a)	 	Notice of Denial. Written notice of the disposition of a claim shall
be furnished to the claimant within ninety (90) days after the application is filed.
If special circumstances require an extension of time for processing the initial claim,
a written notice of the extension and the reason therefore shall be furnished to the
claimant before the end of the initial ninety (90) day period. In no event shall such
extension extend beyond ninety (90) days. The Administrator shall, upon its denial of
a claim for benefits under the Plan, provide the claimant with written notice of such
denial setting forth (1) the specific reason or reasons for the denial, (2) specific
reference to pertinent Plan provisions upon which the denial is based, (3) a
description of any additional material or information necessary for the claimant to
perfect the claim, and (4) an explanation of the claimant’s rights with respect to the
claims review procedure as provided in subsection (b) of this Section 5.4.
	 
	 	(b)	 	Claims Review. In the event a claim for benefits is denied or if the
claimant has had no response to such claim within ninety (90) days of its submission
(in which case the claim for benefits shall be deemed to have been denied), the
claimant with respect to whom a claim is denied or his duly authorized representative
shall, upon written notice of such denial, have the right to (1) request a review of
the denial of benefits by written notice delivered to the Administrator within sixty
(60) days of the receipt of written notice of denial or sixty (60) days from the date
the claim is deemed to be denied, (2) review pertinent documents, and (3) submit issues
and comments in writing.

8

 

	 	(c)	 	Decision on Review. The Administrator shall, upon receipt of a request
for review submitted by the claimant in accordance with subsection (b), appoint at its
complete discretion a suitable experienced committee for the purpose of conducting such
review, and provide the claimant with written notice of the decision reached by the
said committee setting forth the specific reasons for the decision and specific
references to the provisions of the Plan upon which the decision is based. Such notice
shall be delivered to the claimant not later than sixty (60) days following the receipt
of the claimant’s request, unless special circumstances require an extension of time
for processing, in which case a decision shall be rendered as soon as possible, but, in
the event that the Administrator shall determine that a hearing is needed, not later
than one hundred twenty (120) days following receipt of such request. If such an
extension of time is required, written notice of the extension shall be furnished to
the claimant before the end of the original sixty (60) day period. If the decision on
review is not furnished within the time specified above, the claim shall be deemed
denied on review.

     Section 5.5 Legal Incompetence. If any Participant or Beneficiary is a minor, or is
in the judgment of the Administrator otherwise legally incapable of personally receiving and giving
a valid receipt for any payment due him hereunder, the Administrator may, unless and until a claim
shall have been made by a guardian or conservator of such person duly appointed by a court of
competent jurisdiction, direct the Company that payment be made to such person’s spouse, child,
parent, brother or sister, or other person deemed by the Administrator to be a proper person to
receive such payment. Any payment so made shall be a complete discharge of any liability under the
Plan for such payment.

     Section 5.6 Correction of Errors. If any change in records or error results in any
Participant or Beneficiary receiving from the Plan more or less than s/he would have been entitled
to receive had the records been correct or had the error not been made, the Administrator, upon
discovery of such error, shall correct the error by adjusting, as far as is practicable, the
payments in such a manner that the benefits to which such person was correctly entitled shall be
paid.

     Section 5.7 Duration of Appointment. Once appointed, an individual shall continue to
act as the Administrator of the Plan until the earlier of: (a) the date that the individual
terminates employment with the Company, (b) the date that the individual delivers to the Company
written notice of his or her resignation from the position as Administrator, or (c) the date that
the individual is otherwise removed at the direction of the Board.

ARTICLE 6

PLAN AMENDMENT, TERMINATION AND

DISCONTINUANCE OF CONTRIBUTIONS

     Section 6.1 Amendment of Plan. The Board shall have the right at any time to modify,
alter or amend the Plan in whole or in part; provided that no amendment shall have the effect of
reducing the benefit available to a Participant under the terms of the Agreement between that
Participant and the Company. Except as required by law, any change in an

9

 

Agreement or the Plan which would affect a Participant’s right to all amounts credited to
his/her Individual Account may only be made by mutual consent of the Company and any affected
Participants. In no event shall an amendment create an acceleration of payment of deferred
compensation except to the extent and subject to the requirements permitting acceleration under
Code Section 409A.

     Section 6.2 Suspension and Termination of Plan; Discontinuance of Contributions.
Although the Company expects the Plan to be continued indefinitely, it reserves the right to
suspend and/or terminate the Plan at any time in its sole discretion.

     Section 6.3 Distribution upon Complete Termination and Administration Following
Discontinuance of All Contribution Credits. Upon termination of the Plan, benefits equal to
the current value of all Individual Accounts shall be payable by the Company in a lump sum on the
first day of the month following the one-year anniversary of the Plan’s termination or as such
earlier time as may be permitted under Code Section 409A. The Administrator shall cause a
valuation of the Individual Accounts as of the Valuation Date immediately prior to the distribution
to Participants.

ARTICLE 7

MISCELLANEOUS PROVISIONS

     Section 7.1 No Other Rights. No provision of the Plan shall be deemed to abridge or
limit any rights of the Board or the Company, or to give any Participant the right to be retained
as a Director. By the act of participation in the Plan, each Participant, as well as the
Participant’s heirs, assigns and Beneficiary, shall be deemed conclusively to have agreed to and
accepted the terms and conditions of the Plan. The Plan does not create any rights of any
Participant, Participant or Beneficiary or any obligations on the part of the Company other than
those set forth herein.

     Section 7.2 Nonalienation of Benefits. Except as otherwise provided by law, no
benefit, payment or distribution under the Plan shall be subject either to the claim of any
creditor of a Participant or Beneficiary, or to attachment, garnishment, levy, execution or other
legal or equitable process, by any creditor of such person, and no such person shall have any right
to alienate or make an anticipatory assignment (either at law or equity) of all or any portion of
any benefit, payment or distribution under the Plan. The Plan 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.

     In the event that any Participant’s or Beneficiary’s benefits are garnished or attached by
order of any court, the Company may elect to bring an action for a declaratory judgment in a court
of competent jurisdiction to determine the proper recipient of the benefits to be paid by the Plan.
During the pendency of said action, any benefits that become payable may be paid into the court as
they become payable, to be distributed by the court to the recipient as it deems proper at the
close of said action.

     Section 7.3 Income Tax. All payments made by the Company under the terms of the Plan
to any Participant or Beneficiary shall be subject to applicable federal and state income tax

10

 

withholding and to such other deductions as shall at the time of such payment be required
under any income tax or other law, whether of the United States or any other jurisdiction, and, in
the case of payments to a Beneficiary, the delivery to the Administrator of all necessary waivers,
qualifications and other documentation. Determinations by the Administrator as to withholding with
respect thereto shall be binding on the Participant and any Beneficiary.

     Section 7.4 Construction. In the construction of the Plan, the masculine shall
include the feminine and the singular the plural in all cases where such meanings would be
appropriate.

     Section 7.5 Controlling Law. The law of the State of Minnesota shall be the
controlling state law in all matters relating to the Plan and shall apply to the extent that it is
not preempted by the laws of the United States of America.

     Section 7.6 Effect of Invalidity of Provision. If any provision of the Plan is held
invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions
hereof, and the Plan shall be construed and enforced as if such provision had not been included.

     Section 7.7 Inurement. The Plan shall be binding upon and inure to the benefit of the
Company and its successors and assigns and the Participant and any Beneficiary, their successors,
heirs, executors, administrators and beneficiaries.

     Section 7.8 Nature of Participant and Beneficiary Rights. As specified in Section
3.7, the Plan is unfunded and shall at all times constitute an unsecured promise of the Company to
pay benefits under the Plan as they come due. The right of a Participant or Beneficiary to receive
benefits hereunder shall be solely an unsecured claim against the general assets of the Company. A
Participant or Beneficiary shall have no claim against or rights in any specific assets of the
Company.

     Section 7.9 Regulatory Guidance. Notwithstanding any other provision of the Plan, to
the extent the Secretary of Treasury and/or Labor issues Regulations or other guidance with respect
to the operation of plans such as the Plan, and such Regulations or other guidance afford
discretion to the Company not specifically addressed herein, then such discretion shall be deemed
to be implicit in the provisions of the Plan and the Plan may be construed and operated
accordingly.

     Section 7.10 Discretion of Administrator. The Administrator shall have the sole and
absolute discretion to take or forego such actions as may be necessary or appropriate for the
administration of the Plan, including such actions as are described in Article 6 hereof. The
exercise of such discretion shall not be subject to question or review by any person, unless such
exercise was arbitrary and capricious on the part of the Administrator. However, the Administrator
does not have the authority to depart from the terms of the Plan or any Agreement thereunder.

     Section 7.11 Liability and Indemnification. Neither the Administrator, the Board, nor
any agent(s), appointee(s), or committee(s) thereof, shall be liable for any act or action, whether
of commission or omission, taken by any other member, or by any officer, agent or employee of the
Company, nor, except in circumstances involving his/her willful misconduct or gross negligence, for
anything done or omitted to be done by himself/herself. In addition to any other

11

 

rights of indemnification they may have, each party referenced within this Section 7.11 shall
be indemnified by the Company against reasonable expenses, including attorneys’ fees and costs,
incurred in connection with the defense of any claim, action, suit or proceeding, or in connection
with any appeal thereof, to which they may be a party by reason of any action taken or failure to
act under or in connection with the Plan. However, an individual shall not be indemnified under
this Section 7.11 if the Company determines, in good faith and in accordance with standard industry
practices, that the individual has engaged in gross negligence or willful misconduct in performing
his or her duties with respect to the Plan.

     Section 7.12 Headings. The titles and headings of Articles and Sections of this Plan
are included for convenience of reference only and are not to be considered in the construction of
the provisions hereof.

     Section 7.13 Beneficiary Designation. The Participant shall name a beneficiary by
completing a Beneficiary Designation Form and filing it with the Administrator. If no form is
filed the Beneficiary shall be the Participant’s spouse, or if unmarried, the personal
representative of the estate of the Participant.

     Section 7.14 Compliance with Code Section 409A. The Plan is intended, and shall be
construed, to comply with Code Section 409A so as to avoid the excise tax penalties, interest
penalties, and income inclusion rules of Code Section 409A.

     IN WITNESS WHEREOF, the Company has caused this Plan to be signed by its duly authorized
officer and adopted this 30th day of December 2008, effective January 1, 2008.

	 	 	 	 	 	 	 
	 	 	PEPSIAMERICAS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Anne D. Sample	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Vice President of Human Resources	 	 

12

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