Document:

Exhibit 10.1

 

Dragon
Victory International Limited

2020 PERFORMANCE INCENTIVE PLAN

 

1. PURPOSE
OF PLAN

 

The purpose of this
Dragon Victory International Limited 2020 Performance Incentive Plan (this “Plan”) of Dragon Victory International Limited,
an exempted company organized under the Companies Law of the Cayman Islands, and its successors (the “Company”), is to promote
the success of the Company and to increase shareholder value by providing an additional means through the grant of awards to attract,
motivate, retain and reward selected employees and other eligible persons and to enhance the alignment of the interests of the selected
participants with the interests of the Company’s shareholders.

 

2. ELIGIBILITY

 

The Administrator
(as such term is defined in Section 3.1) may grant awards under this Plan only to those persons that the Administrator determines to be
Eligible Persons. An “Eligible Person” is any person who is either: (a) an officer (whether or not a director) or employee
of the Company or one of its Subsidiaries; (b) a director of the Company or one of its Subsidiaries; or (c) an individual consultant or
advisor who renders or has rendered bona fide services (other than services in connection with the offering or sale of securities of the
Company or one of its Subsidiaries in a capital-raising transaction or as a market maker or promoter of securities of the Company or one
of its Subsidiaries) to the Company or one of its Subsidiaries and who is selected to participate in this Plan by the Administrator; provided,
however, that a person who is otherwise an Eligible Person under clause (c) above may participate in this Plan only if such participation
would not adversely affect either the Company’s eligibility to use Form S-8 to register under the Securities Act of 1933, as amended
(the “Securities Act”), the offering and sale of shares issuable under this Plan by the Company or the Company’s
compliance with any applicable laws. An Eligible Person who has been granted an award (a “participant”) may, if otherwise
eligible, be granted additional awards if the Administrator shall so determine. As used herein, “Subsidiary” means
any corporation or other entity a majority of whose outstanding voting shares or voting power is beneficially owned directly or indirectly
by the Company; and “Board” means the Board of Directors of the Company.

 

3. PLAN
ADMINISTRATION

 

		3.1	The Administrator. This Plan shall be administered by and all awards under this Plan shall
be authorized by the Administrator. The “Administrator” means the Board or one or more committees (or subcommittees,
as the case may be) appointed by the Board or another committee (within its delegated authority) to administer all or certain aspects
of this Plan. Any such committee shall be comprised solely of one or more directors or such number of directors as may be required under
applicable law. A committee may delegate some or all of its authority to another committee so constituted. The Board or a committee comprised
solely of directors may also delegate, to the extent permitted by applicable law, to one or more officers of the Company, its authority
under this Plan. The Board may delegate different levels of authority to different committees with administrative and grant authority
under this Plan. Unless otherwise provided in the organizing documents of the Company or applicable charter of any Administrator: (a)
a majority of the members of the acting Administrator shall constitute a quorum, and (b) the vote of a majority of the members present
assuming the presence of a quorum or the unanimous written consent of the members of the Administrator shall constitute action by the
acting Administrator.

 

     

     

    

 

Award grants, and transactions
in or involving awards, intended to be exempt under Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), must be duly and timely authorized by the Board or a committee consisting solely of two or more non-employee directors
(as this requirement is applied under Rule 16b-3 promulgated under the Exchange Act). To the extent required by any applicable listing
agency, this Plan shall be administered by a committee composed entirely of independent directors (within the meaning of the applicable
listing agency).

 

		3.2	Powers of the Administrator. Subject to the express provisions of this Plan, the Administrator
is authorized and empowered to do all things necessary or desirable in connection with the authorization of awards and the administration
of this Plan (in the case of a committee or delegation to one or more officers, within any express limits on the authority delegated to
that committee or person(s)), including, without limitation, the authority to:

 

		(a)	determine eligibility and, from among those persons determined to be eligible, determine the particular
Eligible Persons who will receive an award under this Plan;

 

		(b)	grant awards to Eligible Persons, determine the price (if any) at which securities will be offered or
awarded and the number of securities to be offered or awarded to any of such persons (in the case of securities-based awards), determine
the other specific terms and conditions of awards consistent with the express limits of this Plan, establish the installment(s) (if any)
in which such awards shall become exercisable or shall vest (which may include, without limitation, performance and/or time-based schedules),
or determine that no delayed exercisability or vesting is required, establish any applicable performance-based exercisability or vesting
requirements, determine the circumstances in which any performance-based goals (or the applicable measure of performance) will be adjusted
and the nature and impact of any such adjustment, determine the extent (if any) to which any applicable exercise and vesting requirements
have been satisfied, establish the events (if any) on which exercisability or vesting may accelerate (which may include, without limitation,
retirement and other specified terminations of employment or services, or other circumstances), and establish the events (if any) of termination,
expiration or reversion of such awards;

 

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		(c)	approve the forms of any award agreements (which need not be identical either as to type of award or among
participants);

 

		(d)	construe and interpret this Plan and any agreements defining the rights and obligations of the Company,
its Subsidiaries, and participants under this Plan, make any and all determinations under this Plan and any such agreements, further define
the terms used in this Plan, and prescribe, amend and rescind rules and regulations relating to the administration of this Plan or the
awards granted under this Plan;

 

		(e)	cancel, modify, or waive the Company’s rights with respect to, or modify, discontinue, suspend,
or terminate any or all outstanding awards, subject to any required consent under Section 8.6.5;

 

		(f)	accelerate, waive or extend the vesting or exercisability, or modify or extend the term of any or all
such outstanding awards (in the case of options or share appreciation rights, within the maximum ten-year term of such awards) in such
circumstances as the Administrator may deem appropriate (including, without limitation, in connection with a retirement or other termination
of employment or services, or other circumstances) subject to any required consent under Section 8.6.5;

 

		(g)	adjust the number of Ordinary Shares subject to any award, adjust the price of any or all outstanding
awards or otherwise waive or change previously imposed terms and conditions, in such circumstances as the Administrator may deem appropriate,
in each case subject to Sections 4 and 8.6;

 

		(h)	determine the date of grant of an award, which may be a designated date after but not before the date
of the Administrator’s action to approve the award (unless otherwise designated by the Administrator, the date of grant of an award
shall be the date upon which the Administrator took the action approving the award);

 

		(i)	determine whether, and the extent to which, adjustments are required pursuant to Section 7.1 hereof and
take any other actions contemplated by Section 7 in connection with the occurrence of an event of the type described in Section 7;

 

		(j)	acquire or settle (subject to Sections 7 and 8.6) rights under awards in cash, shares of equivalent value,
or other consideration;

 

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		(k)	determine the fair market value of the Ordinary Shares or awards under this Plan from time to time and/or
the manner in which such value will be determined; and

 

		(l)	implement any procedures, steps or additional or different requirements as may be necessary to comply
with any laws of the People’s Republic of China (the “PRC”) that may be applicable to this Plan, any Option or
any related documents, including, but not limited to, foreign exchange laws, tax laws and securities laws of the PRC.

 

		3.3	Binding Determinations. Any determination or other action taken by, or inaction of, the
Company, any Subsidiary, or the Administrator relating or pursuant to this Plan (or any award made under this Plan) and within its authority
hereunder or under applicable law shall be within the absolute discretion of that entity or body and shall be conclusive and binding upon
all persons. Neither the Board nor any Board committee, nor any member thereof or person acting at the direction thereof, shall be liable
for any act, omission, interpretation, construction or determination made in good faith in connection with this Plan (or any award made
under this Plan), and all such persons shall be entitled to indemnification and reimbursement by the Company in respect of any claim,
loss, damage or expense (including, without limitation, attorneys’ fees) arising or resulting therefrom to the fullest extent permitted
by law and/or under any directors and officers liability insurance coverage that may be in effect from time to time.

 

		3.4	Reliance on Experts. In making any determination or in taking or not taking any action under
this Plan, the Administrator may obtain and may rely upon the advice of experts, including employees and professional advisors to the
Company. No director, officer or agent of the Company or any of its Subsidiaries shall be liable for any such action or determination
taken or made or omitted in good faith.

 

		3.5	Delegation. The Administrator may delegate ministerial, non-discretionary functions to individuals
who are officers or employees of the Company or any of its Subsidiaries or to third parties.

 

		3.6	Option and SAR Repricing. Subject to Section 4 and Section 8.6.5, the Administrator,
from time to time and in its sole discretion, may provide for (1) the amendment of any outstanding share option or SAR to reduce the exercise
price or base price of the award, (2) the cancellation, exchange, or surrender of an outstanding share option or SAR in exchange for cash
or other awards (for the purpose of repricing the award or otherwise), or (3) the cancellation, exchange, or surrender of an outstanding
share option or SAR in exchange for an option or SAR with an exercise or base price that is less than the exercise or base price of the
original award. For avoidance of doubt, the Administrator may take any or all of the foregoing actions under this Section 3.6 without
shareholder approval.

 

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4. ORDINARY
SHARES SUBJECT TO THE PLAN; SHARE LIMITS

 

		4.1	Shares Available. Subject to the provisions of Section 7.1, the shares that may be delivered
under this Plan shall be shares of the Company’s authorized but unissued Ordinary Shares and any Ordinary Shares held as treasury
shares. For purposes of this Plan, “Ordinary Shares” shall mean the ordinary shares of the Company and such other securities
or property as may become the subject of awards under this Plan, or may become subject to such awards, pursuant to an adjustment made
under Section 7.1.

 

		4.2	Share Limits. The maximum number of Ordinary Shares that may be delivered pursuant to awards
granted to each Eligible Persons under this Plan (the “Share Limit”) is equal to 400,000 Ordinary Shares.

 

The following limits also apply
with respect to awards granted under this Plan

 

The maximum number
of Ordinary Shares that may be delivered pursuant to restricted shares under this Plan is 1,080,000 Ordinary Shares.

 

Each of the foregoing
numerical limits is subject to adjustment as contemplated by Section 4.3, Section 7.1, and Section 8.10.

 

		4.3	Awards Settled in Cash, Reissue of Awards and Shares. To the extent that an award granted
under this Plan is settled in cash or a form other than Ordinary Shares, the shares that would have been delivered had there been no such
cash or other settlement shall not be counted against the shares available for issuance under this Plan. In the event that Ordinary Shares
are delivered in respect of a dividend equivalent right granted under this Plan, the number of shares delivered with respect to the award
shall be counted against the share limits of this Plan (including, for purposes of clarity, the limits of Section 4.2 of this Plan). (For
purposes of clarity, if 1,000 dividend equivalent rights are granted and outstanding when the Company pays a dividend, and 50 shares are
delivered in payment of those rights with respect to that dividend, 50 shares shall be counted against the share limits of this Plan).
Shares that are subject to or underlie awards granted under this Plan which expire or for any reason are cancelled or terminated, are
forfeited, fail to vest, or for any other reason are not paid or delivered under this Plan shall not be counted against the share limit
and shall be available for subsequent awards under this Plan. Shares that are exchanged by a participant or withheld by the Company as
full or partial payment in connection with any award under this Plan, as well as any shares exchanged by a participant or withheld by
the Company or one of its Subsidiaries to satisfy the tax withholding obligations related to any award, shall not be available for subsequent
awards under this Plan.

 

		4.4	Reservation of Shares; No Fractional Shares; Minimum Issue. Unless otherwise expressly provided
by the Administrator, no fractional shares shall be delivered under this Plan. The Administrator may pay cash in lieu of any fractional
shares in settlements of awards under this Plan. The Administrator may from time to time impose a limit (of not greater than 100 shares)
on the minimum number of shares that may be purchased or exercised as to awards (or any particular award) granted under this Plan unless
(as to any particular award) the total number purchased or exercised is the total number at the time available for purchase or exercise
under the award.

 

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5. AWARDS

 

		5.1	Type and Form of Awards. The Administrator shall determine the type or types of award(s)
to be made to each selected Eligible Person. Awards may be granted singly, in combination or in tandem. Awards also may be made in combination
or in tandem with, in replacement of, as alternatives to, or as the payment form for grants or rights under any other employee or compensation
plan of the Company or one of its Subsidiaries. The types of awards that may be granted under this Plan are:

 

5.1.1 Share
Options. A share option is the grant of a right to purchase a specified number of Ordinary Shares during a specified period as
determined by the Administrator. An option may be intended as an incentive stock option within the meaning of Section 422 of Code (an
“ISO”) or a nonqualified stock option (an option not intended to be an ISO). The agreement evidencing the grant of
an option will indicate if the option is intended as an ISO; otherwise it will be deemed to be a nonqualified stock option. The maximum
term of each option (ISO or nonqualified) shall be ten (10) years. The per share exercise price for each option shall be determined by
the Administrator and set forth in the applicable award agreement. When an option is exercised, the exercise price for the shares to be
purchased shall be paid in full in cash or such other method permitted by the Administrator consistent with Section 5.5.

 

5.1.2 Additional
Rules Applicable to ISOs. To the extent that the aggregate fair market value (determined at the time of grant of the applicable
option) of shares with respect to which ISOs first become exercisable by a participant in any calendar year exceeds $100,000, taking into
account both Ordinary Shares subject to ISOs under this Plan and shares subject to ISOs under all other plans of the Company or one of
its Subsidiaries (or any parent or predecessor corporation to the extent required by and within the meaning of Section 422 of the Code
and the regulations promulgated thereunder), such options shall be treated as nonqualified stock options. In reducing the number of options
treated as ISOs to meet the $100,000 limit, the most recently granted options shall be reduced first. To the extent a reduction of simultaneously
granted options is necessary to meet the $100,000 limit, the Administrator may, in the manner and to the extent permitted by law, designate
which Ordinary Shares are to be treated as shares acquired pursuant to the exercise of an ISO. ISOs may only be granted to employees of
the Company or one of its subsidiaries (for this purpose, the term “subsidiary” is used as defined in Section 424(f) of the
Code, which generally requires an unbroken chain of ownership of at least 50% of the total combined voting power of all classes of shares
of each subsidiary in the chain beginning with the Company and ending with the subsidiary in question). There shall be imposed in any
award agreement relating to ISOs such other terms and conditions as from time to time are required in order that the option be an “incentive
stock option” as that term is defined in Section 422 of the Code. The per share exercise price for each ISO shall be not less than
100% of the fair market value of an Ordinary Share on the date of grant of the option. Furthermore, no ISO may be granted to any person
who, at the time the option is granted, owns (or is deemed to own under Section 424(d) of the Code) outstanding Ordinary Shares possessing
more than 10% of the total combined voting power of all classes of shares of the Company, unless the exercise price of such option is
at least 110% of the fair market value of the shares subject to the option and such option by its terms is not exercisable after the expiration
of five years from the date such option is granted. If an otherwise-intended ISO fails to meet the applicable requirements of Section
422 of the Code, the option shall be a nonqualified stock option.

 

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5.1.3 Share
Appreciation Rights. A share appreciation right or “SAR” is a right to receive a payment, in cash and/or Ordinary
Shares, equal to the excess of the fair market value of a specified number of Ordinary Shares on the date the SAR is exercised over the
“base price” of the award, which base price shall be determined by the Administrator and set forth in the applicable
award agreement. The maximum term of a SAR shall be ten (10) years.

 

5.1.4 Other
Awards. The other types of awards that may be granted under this Plan include: (a) stock bonuses, restricted stock, performance
stock, stock units, phantom stock or similar rights to purchase or acquire shares, whether at a fixed or variable price (or no price)
or fixed or variable ratio related to the Common Stock, and any of which may (but need not) be fully vested at grant or vest upon the
passage of time, the occurrence of one or more events, the satisfaction of performance criteria or other conditions, or any combination
thereof; (b) any similar securities with a value derived from the value of or related to the Ordinary Shares and/or returns thereon;
or (c) cash awards. Dividend equivalent rights may be granted as a separate award or in connection with another award under the Plan.

 

		5.2	Reserved. 

 

		5.3	Award Agreements. Each award shall be evidenced by a written or electronic award agreement
or notice in a form approved by the Administrator (an “award agreement”), and, in each case and if required by the Administrator,
executed or otherwise electronically accepted by the recipient of the award in such form and manner as the Administrator may require.

 

		5.4	Deferrals and Settlements. Payment of awards may be in the form of cash, Ordinary Shares,
other awards or combinations thereof as the Administrator shall determine, and with such restrictions as it may impose. The Administrator
may also require or permit participants to elect to defer the issuance of shares or the settlement of awards in cash under such rules
and procedures as it may establish under this Plan. The Administrator may also provide that deferred settlements include the payment or
crediting of interest or other earnings on the deferral amounts, or the payment or crediting of dividend equivalents where the deferred
amounts are denominated in shares.

 

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		5.5	Consideration
                                            for Ordinary Shares or Awards. The purchase price for any award granted under this
                                            Plan or the Ordinary Shares to be delivered pursuant to an award, as applicable, may be paid
                                            by means of any lawful
                                            consideration as determined by the Administrator, including, without limitation, one or a
                                            combination of the following methods:

 

		●	services
                                            rendered by the recipient of such award;

 

		●	cash,
                                            check payable to the order of the Company, or electronic funds transfer;

 

		●	notice
                                            and third party payment in such manner as may be authorized by the Administrator;

 

		●	the
                                            delivery of previously owned Ordinary Shares;

 

		●	by
                                            a reduction in the number of shares otherwise deliverable pursuant to the award; or

 

		●	subject
                                            to such procedures as the Administrator may adopt, pursuant to a “cashless exercise”
                                            with a third party who provides financing for the purposes of (or who otherwise facilitates)
                                            the purchase or exercise of awards.

 

In no event shall any
shares newly-issued by the Company be issued for less than the minimum lawful consideration for such shares or for consideration other
than consideration permitted by applicable law. Ordinary Shares used to satisfy the exercise price of an option shall be valued at their
fair market value on the date of exercise. The Company will not be obligated to deliver any shares unless and until it receives full payment
of the exercise or purchase price therefor and any related withholding obligations under Section 8.5 and any other conditions to exercise
or purchase have been satisfied. Unless otherwise expressly provided in the applicable award agreement, the Administrator may at any time
eliminate or limit a participant’s ability to pay the purchase or exercise price of any award or shares by any method other than
cash payment to the Company. The Administrator may take all actions necessary to alter the method of Option exercise and the exchange
and transmittal of proceeds with respect to participants resident in the PRC not having permanent residence in a country other than the
PRC in order to comply with applicable PRC laws and regulations, including, without limitation, PRC foreign exchange, securities and tax
laws and regulations.

 

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		5.6	Definition of Fair Market Value. For purposes of this Plan, if the Ordinary Shares are listed
and actively traded on an internationally recognized securities exchange (the “Exchange”), then unless otherwise determined
or provided by the Administrator in the circumstances, “fair market value” shall mean the closing price (in regular trading)
for an Ordinary Share as reported on the Exchange on which the Ordinary Shares are listed for the date in question or, if no sales of
Ordinary Shares were reported on the Exchange on that date, the closing price for an Ordinary Share as reported by the Exchange on which
the Ordinary Shares are listed for the next preceding day on which sales of Ordinary Shares were reported. The Administrator may, however,
provide with respect to one or more Awards that the fair market value shall equal the closing price (in regular trading) for an Ordinary
Share as reported by the Exchange on the last day preceding the date in question or the average of high and low trading prices of an Ordinary
Share as reported by the Exchange for the date in question or the most recent trading day. If the Ordinary Shares are no longer listed
or actively traded on the Exchange as of the applicable date, the fair market value of the Ordinary Shares shall be the value as reasonably
determined by the Administrator for purposes of the award in the circumstances. The Administrator also may adopt a different methodology
for determining fair market value with respect to one or more awards if a different methodology is necessary or advisable to secure any
intended favorable tax, legal or other treatment for the particular award(s) (for example, and without limitation, the Administrator may
provide that fair market value for purposes of one or more awards will be based on an average of closing prices (or the average of high
and low daily trading prices) for a specified period preceding the relevant date).

 

		5.7	Transfer Restrictions.

 

5.7.1 Limitations
on Exercise and Transfer. Unless otherwise expressly provided in (or pursuant to) this Section 5.7 or required by applicable law:
(a) all awards are non-transferable and shall not be subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge,
encumbrance or charge; (b) awards shall be exercised only by the participant; and (c) amounts payable or shares issuable pursuant to any
award shall be delivered only to (or for the account of) the participant.

 

5.7.2 Exceptions.
The Administrator may permit awards to be exercised by and paid to, or otherwise transferred to, other persons or entities pursuant to
such conditions and procedures, including limitations on subsequent transfers, as the Administrator may, in its sole discretion, establish
in writing. Any permitted transfer shall be subject to compliance with applicable federal and state securities laws and shall not be for
value (other than nominal consideration, settlement of marital property rights, or for interests in an entity in which more than 50% of
the voting interests are held by the Eligible Person or by the Eligible Person’s family members).

 

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5.7.3 Further
Exceptions to Limits on Transfer. The exercise and transfer restrictions in Section 5.7.1 shall not apply to:

 

		(a)	transfers to the Company (for example, in connection with the expiration or termination of the award),

 

		(b)	the designation of a beneficiary to receive benefits in the event of the participant’s death or,
if the participant has died, transfers to or exercise by the participant’s beneficiary, or, in the absence of a validly designated
beneficiary, transfers by will or the laws of descent and distribution,

 

		(c)	subject to any applicable limitations on ISOs, transfers to a family member (or former family member)
pursuant to a domestic relations order if approved or ratified by the Administrator,

 

		(d)	if the participant has suffered a disability, permitted transfers or exercises on behalf of the participant
by his or her legal representative, or

 

		(e)	the authorization by the Administrator of “cashless exercise” procedures with third parties
who provide financing for the purpose of (or who otherwise facilitate) the exercise of awards consistent with applicable laws and any
limitations imposed by the Administrator.

 

6. EFFECT
OF TERMINATION OF EMPLOYMENT OR SERVICE ON AWARDS

 

		6.1	General. The Administrator shall establish the effect (if any) of a termination of employment
or service on the rights and benefits under each award under this Plan and in so doing may make distinctions based upon, inter alia, the
cause of termination and type of award. If the participant is not an employee of the Company or one of its Subsidiaries, is not a member
of the Board, and provides other services to the Company or one of its Subsidiaries, the Administrator shall be the sole judge for purposes
of this Plan (unless a contract or the award otherwise provides) of whether the participant continues to render services to the Company
or one of its Subsidiaries and the date, if any, upon which such services shall be deemed to have terminated.

 

		6.2	Events Not Deemed Terminations of Service. Unless the express policy of the Company or one
of its Subsidiaries, or the Administrator, otherwise provides, or except as otherwise required by applicable law, the employment relationship
shall not be considered terminated in the case of (a) sick leave, (b) military leave, or (c) any other leave of absence authorized by
the Company or one of its Subsidiaries, or the Administrator; provided that, unless reemployment upon the expiration of such leave is
guaranteed by contract or law or the Administrator otherwise provides, such leave is for a period of not more than three months. In the
case of any employee of the Company or one of its Subsidiaries on an approved leave of absence, continued vesting of the award while on
leave from the employ of the Company or one of its Subsidiaries may be suspended until the employee returns to service, unless the Administrator
otherwise provides or applicable law otherwise requires. In no event shall an award be exercised after the expiration of any applicable
maximum term of the award.

 

		6.3	Effect of Change of Subsidiary Status. For purposes of this Plan and any award, if an entity
ceases to be a Subsidiary of the Company a termination of employment or service shall be deemed to have occurred with respect to each
Eligible Person in respect of such Subsidiary who does not continue as an Eligible Person in respect of the Company or another Subsidiary
that continues as such after giving effect to the transaction or other event giving rise to the change in status unless the Subsidiary
that is sold, spun-off or otherwise divested (or its successor or a direct or indirect parent of such Subsidiary or successor) assumes
the Eligible Person’s award(s) in connection with such transaction.

 

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7. ADJUSTMENTS;
ACCELERATION

 

		7.1	Adjustments. Subject to Section 7.2, upon (or, as may be necessary to effect the adjustment,
immediately prior to): any reclassification, recapitalization, share split (including a share split in the form of a share dividend) or
reverse share split; any merger, combination, consolidation, conversion or other reorganization; any spin-off, split-up, or similar extraordinary
dividend distribution in respect of the Ordinary Shares; or any exchange of Ordinary Shares or other securities of the Company, or any
similar, unusual or extraordinary corporate transaction in respect of the Ordinary Shares; then the Administrator shall equitably and
proportionately adjust (1) the number and type of Ordinary Shares (or other securities) that thereafter may be made the subject of awards
(including the specific share limits, maximums and numbers of shares set forth elsewhere in this Plan), (2) the number, amount and type
of Ordinary Shares (or other securities or property) subject to any outstanding awards, (3) the grant, purchase, or exercise price (which
term includes the base price of any SAR or similar right) of any outstanding awards, and/or (4) the securities, cash or other property
deliverable upon exercise or payment of any outstanding awards, in each case to the extent necessary to preserve (but not increase) the
level of incentives intended by this Plan and the then-outstanding awards.

 

Without limiting the
generality of Section 3.3, any good faith determination by the Administrator as to whether an adjustment is required in the circumstances
pursuant to this Section 7.1, and the extent and nature of any such adjustment, shall be conclusive and binding on all persons.

 

		7.2	Corporate Transactions - Assumption and Termination of Awards.

 

Upon any event in which
the Company does not survive, or does not survive as a public company in respect of its Ordinary Shares (including, without limitation,
a dissolution, merger, combination, consolidation, conversion, exchange of securities or other reorganization, or a sale of all of the
business, shares or assets of the Company, in any case in connection with which the Company does not survive or does not survive as a
public company in respect of its Ordinary Shares), then the Administrator may make provision for a cash payment in settlement of, or for
the termination, assumption, substitution or exchange of any or all outstanding awards or the cash, securities or property deliverable
to the holder of any or all outstanding awards, based upon, to the extent relevant under the circumstances, the distribution or consideration
payable to holders of the Ordinary Shares upon or in respect of such event. Upon the occurrence of any event described in the preceding
sentence in connection with which the Administrator has made provision for the award to be terminated (and the Administrator has not made
a provision for the substitution, assumption, exchange or other continuation or settlement of the award): (1) unless otherwise provided
in the applicable award agreement, each then-outstanding option and SAR shall become fully vested, all restricted shares then outstanding
shall fully vest free of restrictions, and each other award granted under this Plan that is then outstanding shall become payable to the
holder of such award (with any performance goals applicable to the award in each case being deemed met, unless otherwise provided in the
award agreement, at the “target” performance level); and (2) each award shall terminate upon the related event; provided that
the holder of an option or SAR shall be given reasonable advance notice of the impending termination and a reasonable opportunity to exercise
his or her outstanding vested options and SARs (after giving effect to any accelerated vesting required in the circumstances) in accordance
with their terms before the termination of such awards (except that in no case shall more than ten days’ notice of the impending
termination be required and any acceleration of vesting and any exercise of any portion of an award that is so accelerated may be made
contingent upon the actual occurrence of the event).

 

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Without limiting the
preceding paragraph, in connection with any event referred to in the preceding paragraph or any change in control event defined in any
applicable award agreement, the Administrator may, in its discretion, provide for the accelerated vesting of any award or awards as and
to the extent determined by the Administrator in the circumstances.

 

For purposes of this Section 7.2, an award
shall be deemed to have been “assumed” if (without limiting other circumstances in which an award is assumed) the award continues
after an event referred to above in this Section 7.2, and/or is assumed and continued by the surviving entity following such event (including,
without limitation, an entity that, as a result of such event, owns the Company or all or substantially all of the Company’s assets
directly or through one or more subsidiaries (a “Parent”)), and confers the right to purchase or receive, as applicable
and subject to vesting and the other terms and conditions of the award, for each Ordinary Share subject to the award immediately prior
to the event, the consideration (whether cash, shares, or other securities or property) received in the event by the shareholders of the
Company for each Ordinary Share sold or exchanged in such event (or the consideration received by a majority of the shareholders participating
in such event if the shareholders were offered a choice of consideration); provided, however, that if the consideration offered for an
Ordinary Share in the event is not solely the ordinary common stock of a successor corporation or a Parent, the Administrator may provide
for the consideration to be received upon exercise or payment of the award, for each share subject to the award, to be solely ordinary
common stock of the successor corporation or a Parent equal in fair market value to the per share consideration received by the shareholders
participating in the event.

 

The Administrator may adopt such valuation
methodologies for outstanding awards as it deems reasonable in the event of a cash or property settlement and, in the case of options,
SARs or similar rights, but without limitation on other methodologies, may base such settlement solely upon the excess if any of the per
share amount payable upon or in respect of such event over the exercise or base price of the award. In the case of an option, SAR or similar
right as to which the per share amount payable upon or in respect of such event is less than or equal to the exercise or base price of
the award, the Administrator may terminate such award in connection with an event referred to in this Section 7.2 without any payment
in respect of such award.

 

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In any of the events referred to in this
Section 7.2, the Administrator may take such action contemplated by this Section 7.2 prior to such event (as opposed to on the occurrence
of such event) to the extent that the Administrator deems the action necessary to permit the participant to realize the benefits intended
to be conveyed with respect to the underlying shares. Without limiting the generality of the foregoing, the Administrator may deem an
acceleration to occur immediately prior to the applicable event and, in such circumstances, will reinstate the original terms of the award
if an event giving rise to an acceleration and/or termination does not occur.

 

Without limiting the generality of Section
3.3, any good faith determination by the Administrator pursuant to its authority under this Section 7.2 shall be conclusive and binding
on all persons.

 

		7.3	Other Acceleration Rules. The Administrator may override the provisions of Section 7.2 by
express provision in the award agreement and may accord any Eligible Person a right to refuse any acceleration, whether pursuant to the
award agreement or otherwise, in such circumstances as the Administrator may approve. The portion of any ISO accelerated in connection
with an event referred to in Section 7.2 (or such other circumstances as may trigger accelerated vesting of the award) shall remain exercisable
as an ISO only to the extent the applicable $100,000 limitation on ISOs is not exceeded. To the extent exceeded, the accelerated portion
of the option shall be exercisable as a nonqualified stock option under the Code.

 

8. OTHER
PROVISIONS

 

		8.1	Compliance with Laws. This Plan, the granting and vesting of awards under this Plan, the
offer, issuance and delivery of Ordinary Shares, and/or the payment of money under this Plan or under awards are subject to compliance
with all applicable federal, state, local and foreign laws, rules and regulations (including but not limited to state and federal securities
law and federal margin requirements) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion
of counsel for the Company, be necessary or advisable in connection therewith. The person acquiring any securities under this Plan will,
if requested by the Company or one of its Subsidiaries, provide such assurances and representations to the Company or one of its Subsidiaries
as the Administrator may deem necessary or desirable to assure compliance with all applicable legal and accounting requirements.

 

    13

     

    

 

		8.2	No Rights to Award. No person shall have any claim or rights to be granted an award (or
additional awards, as the case may be) under this Plan, subject to any express contractual rights (set forth in a document other than
this Plan) to the contrary.

 

		8.3	No Employment/Service Contract. Nothing contained in this Plan (or in any other documents
under this Plan or in any award) shall confer upon any Eligible Person or other participant any right to continue in the employ or other
service of the Company or one of its Subsidiaries, constitute any contract or agreement of employment or other service or affect an employee’s
status as an employee at will, nor shall interfere in any way with the right of the Company or one of its Subsidiaries to change a person’s
compensation or other benefits, or to terminate his or her employment or other service, with or without cause. Nothing in this Section
8.3, however, is intended to adversely affect any express independent right of such person under a separate employment or service contract
other than an award agreement.

 

		8.4	Plan Not Funded. Awards payable under this Plan shall be payable in shares or from the general
assets of the Company, and no special or separate reserve, fund or deposit shall be made to assure payment of such awards. No participant,
beneficiary or other person shall have any right, title or interest in any fund or in any specific asset (including Ordinary Shares, except
as expressly otherwise provided) of the Company or one of its Subsidiaries by reason of any award hereunder. Neither the provisions of
this Plan (or of any related documents), nor the creation or adoption of this Plan, nor any action taken pursuant to the provisions of
this Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the Company or one of its Subsidiaries
and any participant, beneficiary or other person. To the extent that a participant, beneficiary or other person acquires a right to receive
payment pursuant to any award hereunder, such right shall be no greater than the right of any unsecured general creditor of the Company.

 

		8.5	Tax Withholding. Upon any exercise, vesting, or payment of any award, or upon the disposition
of Ordinary Shares acquired pursuant to the exercise of an ISO prior to satisfaction of the holding period requirements of Section 422
of the Code, or upon any other tax withholding event with respect to any award, arrangements satisfactory to the Company shall be made
to provide for any taxes the Company or any of its Subsidiaries may be required to withhold with respect to such award event or payment.
Such arrangements may include (but are not limited to) any one of (or a combination of) the following:

 

		(a)	The Company or one of its Subsidiaries shall have the right to require the participant (or the participant’s
personal representative or beneficiary, as the case may be) to pay or provide for payment of at least the minimum amount of any taxes
which the Company or one of its Subsidiaries may be required to withhold with respect to such award event or payment.

 

    14

     

    

 

		(b)	The Company or one of its Subsidiaries shall have the right to deduct from any amount otherwise payable
in cash (whether related to the award or otherwise) to the participant (or the participant’s personal representative or beneficiary,
as the case may be) the minimum amount of any taxes which the Company or one of its Subsidiaries may be required to withhold with respect
to such award event or payment.

 

		(c)	In any case where a tax is required to be withheld in connection with the delivery of Ordinary Shares
under this Plan, the Administrator may in its sole discretion (subject to Section 8.1) require or grant (either at the time of the award
or thereafter) to the participant the right to elect, pursuant to such rules and subject to such conditions as the Administrator may establish,
that the Company reduce the number of shares to be delivered by (or otherwise reacquire) the appropriate number of shares, valued in a
consistent manner at their fair market value or at the sales price in accordance with authorized procedures for cashless exercises, necessary
to satisfy the minimum applicable withholding obligation on exercise, vesting or payment. Unless otherwise provided by the Administrator,
in no event shall the shares withheld exceed the minimum whole number of shares required for tax withholding under applicable law to the
extent the Company determines that withholding at any greater level would result in an award otherwise classified as an equity award under
ASC Topic 718 (or any successor thereto) being classified as a liability award under ASC Topic 718 (or such successor).

 

		8.6	Effective Date, Termination and Suspension, Amendments.

 

8.6.1 Effective
Date. This Plan is effective as of March 31st, 2020, the date of its approval by the Board (the “Effective
Date”). This Plan shall be submitted for and subject to shareholder approval no later than twelve months after the Effective
Date. Unless earlier terminated by the Board and subject to any extension that may be approved by shareholders, this Plan shall terminate
at the close of business on the day before the tenth anniversary of the Effective Date. After the termination of this Plan either upon
such stated termination date or its earlier termination by the Board, no additional awards may be granted under this Plan, but previously
granted awards (and the authority of the Administrator with respect thereto, including the authority to amend such awards) shall remain
outstanding in accordance with their applicable terms and conditions and the terms and conditions of this Plan.

 

8.6.2 Board
Authorization. The Board may, at any time, terminate or, from time to time, amend, modify or suspend this Plan, in whole or in
part. No awards may be granted during any period that the Board suspends this Plan.

 

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8.6.3 Shareholder
Approval. To the extent then required by applicable law or deemed necessary or advisable by the Board, any amendment to this Plan
shall be subject to shareholder approval.

 

8.6.4 Amendments
to Awards. Without limiting any other express authority of the Administrator under (but subject to) the express limits of this
Plan, the Administrator by agreement or resolution may waive conditions of or limitations on awards to participants that the Administrator
in the prior exercise of its discretion has imposed, without the consent of a participant, and (subject to the requirements of Sections
3.2 and 8.6.5) may make other changes to the terms and conditions of awards.

 

8.6.5 Limitations
on Amendments to Plan and Awards. No amendment, suspension or termination of this Plan or amendment of any outstanding award agreement
shall, without written consent of the participant, affect in any manner materially adverse to the participant any rights or benefits of
the participant or obligations of the Company under any award granted under this Plan prior to the effective date of such change. Changes,
settlements and other actions contemplated by Section 7 shall not be deemed to constitute changes or amendments for purposes of this Section
8.6.

 

		8.7	Privileges of Share Ownership. Except as otherwise expressly authorized by the Administrator,
a participant shall not be entitled to any privilege of share ownership as to any Ordinary Shares not actually delivered to and held of
record by the participant. Except as expressly required by Section 7.1 or otherwise expressly provided by the Administrator, no adjustment
will be made for dividends or other rights as a shareholder for which a record date is prior to such date of delivery.

 

		8.8	Governing Law; Construction; Severability.

 

8.8.1 Choice
of Law. This Plan, the awards, all documents evidencing awards and all other related documents shall be governed by, and construed
in accordance with the laws of the Cayman Islands.

 

8.8.2 Severability.
If a court of competent jurisdiction holds any provision invalid and unenforceable, the remaining provisions of this Plan shall continue
in effect.

 

		8.8.3	Plan Construction.

 

		(a)	It is the intent of the Company that the awards and transactions permitted by awards be interpreted in
a manner that, in the case of participants who are or may be subject to Section 16 of the Exchange Act, qualify, to the maximum extent
compatible with the express terms of the award, for exemption from matching liability under Rule 16b-3 promulgated under the Exchange
Act. Notwithstanding the foregoing, the Company shall have no liability to any participant for Section 16 consequences of awards or events
under awards if an award or event does not so qualify.

 

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		8.9	Captions. Captions and headings are given to the sections and subsections of this Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation
of this Plan or any provision thereof.

 

		8.10	Share-Based Awards in Substitution for Share Options or Awards Granted by Other Company.
Awards may be granted to Eligible Persons in substitution for or in connection with an assumption of employee share options, SARs, restricted
shares or other share-based awards granted by other entities to persons who are or who will become Eligible Persons in respect of the
Company or one of its Subsidiaries, in connection with a distribution, merger or other reorganization by or with the granting entity or
an affiliated entity, or the acquisition by the Company or one of its Subsidiaries, directly or indirectly, of all or a substantial part
of the shares or assets of the employing entity. The awards so granted need not comply with other specific terms of this Plan, provided
the awards reflect adjustments giving effect to the assumption or substitution consistent with any conversion applicable to the Ordinary
Shares (or the securities otherwise subject to the award) in the transaction and any change in the issuer of the security. Any shares
that are delivered and any awards that are granted by, or become obligations of, the Company, as a result of the assumption by the Company
of, or in substitution for, outstanding awards previously granted or assumed by an acquired company (or previously granted or assumed
by a predecessor employer (or direct or indirect parent thereof) in the case of persons that become employed by the Company or one of
its Subsidiaries in connection with a business or asset acquisition or similar transaction) shall not be counted against the Share Limit
or other limits on the number of shares available for issuance under this Plan.

 

		8.11	Non-Exclusivity of Plan. Nothing in this Plan shall limit or be deemed to limit the authority
of the Board or the Administrator to grant awards or authorize any other compensation, with or without reference to the Ordinary Shares,
under any other plan or authority.

 

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		8.12	No Corporate Action Restriction. The existence of this Plan, the award agreements and the
awards granted hereunder shall not limit, affect or restrict in any way the right or power of the Company or any Subsidiary (or any of
their respective shareholders, boards of directors or committees thereof (or any subcommittee), as the case may be) to make or authorize:
(a) any adjustment, recapitalization, reorganization or other change in the capital structure or business of the Company or any Subsidiary,
(b) any merger, amalgamation, consolidation or change in the ownership of the Company or any Subsidiary, (c) any issue of bonds, debentures,
capital, preferred or prior preference shares ahead of or affecting the capital shares (or the rights thereof) of the Company or any Subsidiary,
(d) any dissolution or liquidation of the Company or any Subsidiary, (e) any sale or transfer of all or any part of the assets or business
of the Company or any Subsidiary, (f) any other award, grant, or payment of incentives or other compensation under any other plan or authority
(or any other action with respect to any benefit, incentive or compensation) or (g) any other corporate act or proceeding by the Company
or any Subsidiary. No participant, beneficiary or any other person shall have any claim under any award or award agreement against any
member of the Board or the Administrator, or the Company or any employees, officers or agents of the Company or any Subsidiary, as a result
of any such action. Awards need not be structured so as to be deductible for tax purposes.

 

		8.13	Other Company Benefit and Compensation Programs. Payments and other benefits received by
a participant under an award made pursuant to this Plan shall not be deemed a part of a participant’s compensation for purposes
of the determination of benefits under any other employee welfare or benefit plans or arrangements, if any, provided by the Company or
any Subsidiary, except where the Administrator expressly otherwise provides or authorizes in writing. Awards under this Plan may be made
in addition to, in combination with, as alternatives to or in payment of grants, awards or commitments under any other plans or arrangements
or authority of the Company or its Subsidiaries.

 

		8.14	Clawback Policy. The awards granted under this Plan are subject to the terms of the Company’s
recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law,
any of which could in certain circumstances require repayment or forfeiture of awards or any Ordinary Shares or other cash or property
received with respect to the awards (including any value received from a disposition of the shares acquired upon payment of the awards).

 

 

18Document

            

Exhibit 10.1

 2021 PEPSICO ANNUAL LONG-TERM INCENTIVE AWARD
 
PERFORMANCE STOCK UNITS / LONG-TERM CASH AWARD
TERMS AND CONDITIONS 
 
These Terms and Conditions (including the country-specific terms set forth in the attached Addendum), along with the 2021 PepsiCo Annual Long-Term Incentive Award Summary provided to the Participant (the “Award Summary”), and signed by the individual named on the Award Summary (the “Participant”), shall constitute an agreement (this “Agreement”), effective as of the “grant date” indicated on the Award Summary  (the “Grant Date”), by and between PepsiCo, Inc., a North Carolina corporation having its principal office at 700 Anderson Hill Road, Purchase, New York 10577 (“PepsiCo,” and with its divisions and direct and indirect subsidiaries, the “Company”), and the Participant. 
 
W I T N E S S E T H: 
 
WHEREAS, the Board of Directors and shareholders of PepsiCo have approved the PepsiCo, Inc. Long-Term Incentive Plan (the “Plan”), for the purposes and subject to the provisions set forth in the Plan; and 
 
WHEREAS, pursuant to the authority granted to it in the Plan, the Compensation Committee of the Board of Directors of PepsiCo (the “Committee”), at a meeting held on or prior to the Grant Date, duly authorized the grant to the Participant of PepsiCo performance stock units (“PSUs”) and a long-term cash award (“LTC Award”) each to be granted on the Grant Date and in the respective amounts set forth on the Award Summary; and 
 
WHEREAS, awards granted under the Plan are to be evidenced by an Agreement in such form and containing such terms and conditions as the Committee shall determine. 
 
NOW, THEREFORE, it is mutually agreed as follows: 
 
A. Terms and Conditions Applicable to PSUs. These terms and conditions shall apply with respect to the PSUs granted to the Participant as indicated on the Award Summary. 

1. Grant. In consideration of the Participant remaining in the employ of the Company and agreeing to be bound by the covenants of Paragraph C, PepsiCo hereby grants to the Participant, on the terms and conditions set forth herein, a target number of PSUs as indicated on the Award Summary.  
2. Vesting and Payment. PSUs may only vest while the Participant is actively employed by the Company.  Subject to Paragraphs A.3 and A.4 below, the PSUs earned in accordance with Paragraph A.3 shall vest on the “vesting date” as indicated on the Award Summary (the “PSU Vesting Date”) and be paid as soon as practicable after such date (the “PSU Payment Date”).  PSUs that become earned and payable shall be settled in shares of PepsiCo Common Stock, with the Participant receiving one share of PepsiCo Common Stock for each PSU earned.  No fractional shares shall be delivered under this Agreement, and so any fractional share that may be payable shall be rounded to the nearest whole share. Any amount that the Company may be required to withhold upon the settlement of PSUs and/or the payment of dividend equivalents (see Paragraph A.6 below) in respect of applicable foreign, federal (including FICA), state and local taxes, must be paid in full at the time of the issuance of shares or payment of cash. Unless the Participant makes other arrangements to satisfy this withholding obligation 
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in accordance with procedures approved by the Company in its discretion, the Company will withhold shares to satisfy the required withholding obligation related to the settlement of PSUs.
3. Earning and Forfeiture of PSUs.  Subject to the terms and conditions set forth herein, the Participant can earn a specified number of PSUs with respect to the period which shall include the fiscal year in which the Grant Date occurs and the two fiscal years following such year (the “Performance Period”), determined based on the achievement of performance targets established by the Committee.  Any portion of the PSU Award that is not earned in accordance with this Paragraph A.3 shall be forfeited and cancelled.  Subject to the terms and conditions set forth herein, the PSU Award shall be earned as follows: 
(a) One-half of the PSU Award shall be earned based on and subject to the level of achievement with respect to a performance measure selected by the Committee for the Performance Period pursuant to the performance scale established by the Committee and communicated to the Participant.  The Committee shall determine and certify the results of the level of achievement of such performance measure.
(b) One-half of the PSU Award shall be earned based on and subject to the level of achievement with respect to a second performance measure selected by the Committee for the Performance Period pursuant to the performance scale established by the Committee and communicated to the Participant.  The Committee shall determine and certify the results of the level of achievement of such performance measure.
Notwithstanding the level of performance achieved with respect to the performance targets established under Paragraphs A.3(a) and (b) above, the Committee has the discretion to reduce the number of PSUs to be paid.  The Committee’s right to exercise this discretion with respect to the earned portion of the PSU Award shall continue until the date on which the PSUs are delivered to the Participant.  Except in the case of death or Total Disability, the portion of the PSU Award with respect to which a Participant has satisfied the performance criteria will be payable in one payment on the PSU Payment Date. Any PSUs that are not earned in accordance with this Paragraph A.3 shall be forfeited and cancelled.  
4. Effect of Termination of Employment, Retirement, Death and Total Disability. 
(a) Termination of Employment. PSUs may vest and become payable only while the Participant is actively employed by the Company. Thus, vesting ceases upon the termination of the Participant’s active employment with the Company. Subject to subparagraphs 4(b), 4(c) and 4(d), all unvested PSUs shall automatically be forfeited and cancelled upon the date that the Participant’s active employment with the Company terminates regardless of whether any such PSUs have previously been earned in accordance with Paragraph A.3 above.  An authorized severance leave of absence will not be treated as active employment, and, as a result, the vesting of PSUs will not be extended by any such period.
(b) Retirement Prior to Age 62. If the Participant’s employment terminates prior to the PSU Vesting Date by reason of the Participant’s Retirement prior to attaining at least age 62, then a whole number of the PSUs granted hereunder shall vest on the Participant’s last day of active employment with the Company, with such number determined in proportion to the Participant’s active service (measured in calendar days) during the period commencing on the Grant Date and ending on the PSU Vesting Date (the “PSU Vesting Period”). All PSUs that vest in accordance with the foregoing sentence shall remain subject to the earning and forfeiture provisions of Paragraph  A.3 and shall be paid on the original PSU Payment Date.    
(c)  Retirement on or After Age 62. If the Participant’s employment terminates by reason of the Participant’s Retirement after attaining at least age 62, then the PSUs granted hereunder shall become 
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fully vested on the Participant’s last day of active employment with the Company. All such vested PSUs shall remain subject to the earning and forfeiture provisions of Paragraph  A.3 and shall be paid on the original PSU Payment Date.  
(d) Death or Total Disability. If the Participant’s employment terminates by reason of death or Total Disability, then the target number of PSUs set forth in the Award Summary shall become fully vested on the Participant’s last day of active employment with the Company (which, for purposes of Total Disability, means the effective date of Total Disability), and shall be paid as soon as practicable following the date of termination.  
(e) Transfers to a Related Entity. In the event the Participant transfers to a Related Entity and such transfer is arranged and approved by PepsiCo, the PSUs shall continue to vest (and their time of payment shall be determined) after such transfer by treating the Participant’s employment with the Related Entity as employment with the Company for purposes of this Agreement. All such PSUs shall remain subject to the vesting, earning and forfeiture provisions of Paragraphs A.2 and A.3 and shall be paid on the original PSU Payment Date. 
5. No Rights as Shareholder. The Participant shall have no rights as a holder of PepsiCo Common Stock with respect to the PSUs granted hereunder unless and until such PSUs have been settled in shares of PepsiCo Common Stock that have been registered in the Participant’s name as owner.  
6. Dividend Equivalents. During the PSU Vesting Period, the Participant shall accumulate dividend equivalents with respect to the PSUs, which dividend equivalents shall be paid in cash (without interest) to the Participant only if and when the applicable PSUs vest and become payable. Dividend equivalents shall equal the dividends actually paid with respect to PepsiCo Common Stock during the PSU Vesting Period while (and to the extent) the PSUs remain outstanding and unpaid.  For purposes of determining the dividend equivalents accumulated under this Paragraph A.6, any Performance Stock Units that become payable hereunder shall be considered to have been outstanding from the Grant Date.  Upon the forfeiture of PSUs, any accumulated dividend equivalents attributable to such PSUs shall also be forfeited.
B. Terms and Conditions Applicable to LTC Award. These terms and conditions shall apply with respect to the LTC Award granted to the Participant as indicated on the Award Summary. 

1. Grant. In consideration of the Participant remaining in the employ of the Company and agreeing to be bound by the covenants of Paragraph C, PepsiCo hereby grants to the Participant, on the terms and conditions set forth herein, an LTC Award in the target amount indicated on the Award Summary. 
2. Vesting and Payment.  The LTC Award may only vest while the Participant is actively employed by the Company.  Subject to Paragraphs B.3 and B.4 below, the LTC Award earned in accordance with Paragraph B.3 shall vest on the “vesting date” as indicated on the Award Summary (the “LTC Award Vesting Date”) and be paid in cash as soon as practicable after such date (the “LTC Payment Date”).  Any amount that the Company may be required to withhold upon the settlement of the LTC Award in respect of applicable foreign, federal (including FICA), state and local taxes, must be paid in full at the time of payment. Unless the Participant makes other arrangements to satisfy this withholding obligation in accordance with procedures approved by the Company in its discretion, the Company will withhold a portion of the cash settlement amount of the LTC Award sufficient to satisfy any related required withholding obligation.
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3. Earning and Forfeiture of LTC Award.

(a)The Participant can earn a specified percentage of the target amount of the LTC Award granted hereunder, equal to the product of (i) the target amount of the LTC Award set forth in the Award Summary, and (ii) the Relative TSR Performance Factor.  

(b) The Relative TSR Performance Factor shall be determined based on the percentile ranking of PepsiCo’s total shareholder return for the Performance Period relative to an index of peer companies selected by the Committee, calculated in accordance with the method established by the Committee and in accordance with a performance scale established by the Committee (“Relative TSR”).  The Relative TSR Performance Factor shall be rounded to the second decimal.  The Relative TSR Performance Factor for Relative TSR performance between the levels identified in the preceding sentence shall be determined by straight-line interpolation.   

(c) Notwithstanding the achievement of the performance target established under Paragraph B.3 (b) above, no LTC Award shall vest or become payable if Relative TSR is less than 25th percentile relative to the index of peer companies selected by the Committee pursuant to Paragraph B.3(b).

(d) Notwithstanding the achievement of the performance target established under Paragraph B.3 (b) above, no LTC Award shall become payable in excess of the target amount of the LTC Award unless PepsiCo’s absolute total shareholder return for the Performance Period is greater than zero.

Notwithstanding the level of performance achieved with respect to such performance measure, the Committee has the discretion to reduce the amount of the LTC Award earned to reflect the level of performance achieved with respect to the performance targets established under Paragraphs B.3(b).  The Committee’s right to exercise this discretion with respect to the amount of the LTC Award earned shall continue until the date on which the LTC Award is paid to the Participant.

Any LTC Award not earned in accordance with this Paragraph B.3 shall be forfeited and cancelled.  Except in the case of death or Total Disability, the LTC Award for which a Participant has satisfied the performance criteria will be payable in one payment on the LTC Payment Date.
4. Effect of Termination of Employment, Retirement, Death and Total Disability. 
(a) Termination of Employment. The LTC Award may vest and become payable only while the Participant is actively employed by the Company. Thus, vesting ceases upon the termination of the Participant’s active employment with the Company. Subject to subparagraphs 4(b), 4(c) and 4(d), any unvested portion of the LTC Award shall automatically be forfeited and cancelled upon the date that the Participant’s active employment with the Company terminates regardless of whether any portion of such LTC Award has previously been earned in accordance with Paragraph B.3 above. An authorized severance leave of absence will not be treated as active employment, and, as a result, the vesting of any LTC Award will not be extended by any such period.
(b) Retirement Prior to Age 62. If the Participant’s employment terminates prior to the LTC Award Vesting Date by reason of the Participant’s Retirement prior to attaining at least age 62, then a portion of the target LTC Award granted hereunder shall vest on the Participant’s last day of active employment with the Company, with such number determined in proportion to the Participant’s active service (measured in calendar days) during the period commencing on the Grant Date and ending on the LTC Award Vesting Date. Any portion of an LTC Award that vests in accordance with the foregoing 
4

            

sentence shall remain subject to the earning and forfeiture provisions of Paragraph B.3 and shall be paid on the original LTC Payment Date. 
(c) Retirement on or After Age 62. If the Participant’s employment terminates by reason of the Participant’s Retirement after attaining at least age 62, then the LTC Award granted hereunder shall become fully vested on the Participant’s last day of active employment with the Company.  Any such vested LTC Award shall remain subject to the earning and forfeiture provisions of Paragraph B.3 and shall be paid on the original LTC Payment Date. 
(d) Death or Total Disability. If the Participant’s employment terminates by reason of death or Total Disability, then the target amount of the LTC Award set forth in the Award Summary shall become fully vested on the Participant’s last day of active employment with the Company (which, for purposes of Total Disability, means the effective date of Total Disability), and shall be paid as soon as practicable following the date of termination.  
(e) Transfers to a Related Entity. In the event the Participant transfers to a Related Entity and such transfer is arranged and approved by PepsiCo, the LTC Award shall continue to vest (and the time of payment shall be determined) after such transfer by treating the Participant’s employment with the Related Entity as employment with the Company for purposes of this Agreement. Any such LTC Award shall remain subject to the vesting, earning and forfeiture provisions of Paragraphs B.2 and B.3 and shall be paid on the original LTC Payment Date. 
C. Prohibited Conduct. In consideration of the Company disclosing and providing access to Confidential Information, as more fully described in Paragraph C.2 below, after the date hereof, the grant by the Company of the PSUs and the LTC Award, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Participant and the Company, intending to be legally bound, hereby agree as follows.
 
1. Non-Competition and Non-Solicitation. The Participant hereby covenants and agrees that at all times during his or her employment with the Company and for a period of twelve months after the termination of the Participant’s employment with the Company for any reason whatsoever (including a termination due to the Participant’s Retirement), he or she will not, without the prior written consent of PepsiCo’s chief human resources officer or chief legal officer, either directly or indirectly, for himself/herself or on behalf of or in conjunction with any other person, partnership, corporation or other entity, engage in any activities prohibited in the following Paragraphs C.1(a) through (c): 
 
(a) The Participant shall not, in any country in which the Company operates, accept any employment, assignment, position or responsibility, provide services in any capacity, or acquire any ownership interest that involves the Participant’s Participation (as defined below) in an entity that markets, sells, distributes or produces Covered Products (as defined below), unless such entity makes retail sales or consumes Covered Products without in any way competing with the Company; 
 
(b) With respect to Covered Products, the Participant shall not directly or indirectly solicit for competitive business purposes any customer or Prospective Customer (as defined below) of the Company called on, serviced by, or contacted by the Participant in any capacity during his or her employment; or
 
(c) The Participant shall not in any way, directly or indirectly (including through someone else acting on the Participant’s recommendation, suggestion, identification or advice), solicit any Company employee to leave the Company’s employment or to accept any position with any other entity. 
 
Notwithstanding anything in this Paragraph C.1, the Participant shall not be considered to be in violation of Paragraph C.1(a) solely by reason of owning, directly or indirectly, up to five percent (5%) in the 
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aggregate of any class of securities of any publicly traded corporation engaged in the prohibited activities described in Paragraph C.1(a).

2. Non-Disclosure. In order to assist the Participant with his or her duties, the Company shall continue to provide the Participant with access to confidential and proprietary operational information and other confidential information that is either information not known by actual or potential competitors, customers and third parties of the Company or is proprietary information of the Company (“Confidential Information”). Such Confidential Information shall include all non-public information the Participant acquired as a result of his or her positions with the Company. Examples of such Confidential Information include, without limitation, non-public information about the Company’s customers, suppliers, distributors and potential acquisition targets; its business operations, structure and methods of operation; its product lines, formulae and pricing; its processes, machines and inventions; its research and know-how; its production techniques; its financial data; its advertising and promotional ideas and strategy; information maintained in its computer systems; devices, processes, compilations of information and records; and its plans and strategies.  The Participant agrees that such Confidential Information remains confidential even if committed to the Participant’s memory.  The Participant agrees, during the term of his or her employment and at all times thereafter, not to use, divulge, or furnish or make accessible to any third party, company, corporation or other organization (including but not limited to, customers or competitors of the Company), without the Company’s prior written consent, any Confidential Information of the Company, except as necessary in his or her position with the Company or as permitted below with respect to Protected Activity.  

Notwithstanding the foregoing, nothing in this Agreement, the Plan, any other Award made under the Plan or in any other confidentiality provision to which the Participant may be subject as a result of the Participant’s employment with the Company shall: (1) limit the Participant’s rights to make truthful statements or disclosures about any facts and circumstances related to any claim or allegation of unlawful discrimination by the Company; (2) bar the Participant from giving testimony pursuant to a compulsory legal process or as otherwise required by law; or (3) prohibit the Participant from, without notice to the Company, filing a complaint or charge with government agencies (including, without limitation, the Equal Employment Opportunity Commission), communicating with government agencies, providing information to government agencies, participating in government agency investigations, or testifying in government agency proceedings concerning any possible legal violations or from receiving a monetary award for information provided to a government agency collectively, “Protected Activity”).  The Company nonetheless asserts and does not waive its attorney-client privilege over any information appropriately protected by the privilege.  Further, notwithstanding any confidentiality provision to which the Participant may be subject, the Participant is hereby advised as follows pursuant to the Defend Trade Secrets Act: “An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.”
 
3. Return of Confidential Information and Company Property. The Participant agrees that whenever the Participant’s employment with the Company ends for any reason, (a) all documents containing or referring to the Company’s Confidential Information as may be in the Participant’s 
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possession, or over which the Participant may have control, and all other property of the Company provided to the Participant by the Company during the course of the Participant’s employment with the Company will be returned by the Participant to the Company immediately, with no request being required; and (b) all Company computer and computer-related equipment and software, and all Company property, files, records, documents, drawings, specifications, lists, equipment, and similar items relating to the business of the Company, whether prepared by the Participant or otherwise, coming into the Participant’s possession or control during the course of his or her employment shall remain the exclusive property of the Company, and shall be delivered by the Participant to the Company immediately, with no request being required.
 
4. Misconduct. During the term of his or her employment with the Company, the Participant shall not engage in any of the following acts that are considered to be contrary to the Company’s best interests: (a) breaching any contract with or violating any obligation to the Company, including, without limitation, the Company’s Code of Conduct, Insider Trading Policy or any other written policies of the Company, , (b) unlawfully trading in the securities of PepsiCo or of any other company based on information gained as a result of his or her employment with the Company, (c) committing acts involving gross misconduct in the performance of employment duties, dishonesty, fraud, illegality, or moral turpitude, or that cause or contribute to the need for an accounting adjustment to PepsiCo’s financial results  or (d) in the judgment of the Company, engaging in conduct that may be detrimental to or reflect unfavorably upon the Company or its brands, services, or products ; provided, however that nothing in this section is intended to bar the Participant from engaging in Protected Activity. 
 
5. Reasonableness of Provisions. The Participant agrees that: (a) the terms and provisions of this Agreement are reasonable and constitute an otherwise enforceable agreement to which the terms and provisions of this Paragraph C are ancillary or a part of; (b) the consideration provided by the Company under this Agreement is not illusory; (c) the restrictions contained in this Paragraph C are necessary and reasonable for the protection of the legitimate business interests and goodwill of the Company; and (d) the consideration given by the Company under this Agreement, including, without limitation, the provision by the Company of Confidential Information to the Participant, gives rise to the Company’s interest in the covenants set forth in this Paragraph C.  
 
6. Repayment and Forfeiture. The Participant specifically recognizes and affirms that each of the covenants contained in Paragraphs C.1 through C.4 of this Agreement is a material and important term of this Agreement that has induced the Company to provide for the award of the PSUs and the LTC Award granted hereunder, the disclosure of Confidential Information referenced herein, and the other promises made by the Company herein.  The Participant further agrees that in the event that (i) the Company determines that the Participant has breached any term of Paragraphs C.1 through C.4 or (ii) all or any part of Paragraph C is held or found invalid or unenforceable for any reason whatsoever by a court of competent jurisdiction in an action between the Participant and the Company, in addition to any other remedies at law or in equity the Company may have available to it, the Company may in its sole discretion: 
 
(a)  cancel any unpaid PSUs or any LTC Award granted hereunder; and/or 
 
(b)  require the Participant to pay to the Company the value (determined as of the date paid) of any PSUs and any portion of any LTC Award granted hereunder that have been paid out. 

In addition to the provisions of this Paragraph C.6, the Participant agrees that he or she will be bound by the terms of any Company compensation clawback policy applicable to the Participant that the Company may adopt from time to time.
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7. Equitable Relief. In the event the Company determines that the Participant has breached or attempted or threatened to breach any term of Paragraph C, in addition to any other remedies at law or in equity the Company may have available to it, it is agreed that the Company shall be entitled, upon application to any court of proper jurisdiction, to a temporary restraining order or preliminary injunction (without the necessity of (a) proving irreparable harm, (b) establishing that monetary damages are inadequate or (c) posting any bond with respect thereto) against the Participant prohibiting such breach or attempted or threatened breach by proving only the existence of such breach or attempted or threatened breach.
8. Extension of Restrictive Period. The Participant agrees that the period during which the covenants contained in this Paragraph C shall be effective shall be computed by excluding from such computation any time during which the Participant is in violation of any provision of Paragraph C.
9. Acknowledgments. The Company and the Participant agree that it was their intent to enter into a valid and enforceable agreement.  The Participant and the Company thereby acknowledge the reasonableness of the restrictions set forth in Paragraph C, including the reasonableness of the geographic area, duration as to time and scope of activity restrained.  The Participant further acknowledges that his or her skills are such that he or she can be gainfully employed in noncompetitive employment and that the agreement not to compete will not prevent him or her from earning a living.  The Participant agrees that if any covenant contained in Paragraph C of this Agreement is found by a court of competent jurisdiction to contain limitations as to time, geographical area, or scope of activity that are not reasonable and impose a greater restraint than is necessary to protect the goodwill or other business interest of the Company, then the court shall reform the covenant to the extent necessary to cause the limitations contained in the covenant as to time, geographical area, and scope of activity to be restrained to be reasonable and to impose a restraint that is not greater than necessary to protect the goodwill and other business interests of the Company and to enforce the covenants as reformed.
10. Provisions Independent. The covenants on the part of the Participant in this Paragraph C shall be construed as an agreement independent of any other agreement, including any employee benefit agreement, and independent of any other provision of this Agreement, and the existence of any claim or cause of action of the Participant against the Company, whether predicated upon this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of such covenants.
11. Notification of Subsequent Employer. The Participant agrees that the Company may notify any person or entity employing the Participant or evidencing an intention of employing the Participant of the existence and provisions of this Agreement.
12. Transfers to a Related Entity. In the event the Participant transfers to a Related Entity as a result of actions by PepsiCo, any reference to “Company” in this Paragraph C shall be deemed to refer to such Related Entity in addition to the Company.
D. Additional Terms and Conditions. 
1. Adjustment for Change in PepsiCo Common Stock. In the event of any change in the outstanding shares of PepsiCo Common Stock by reason of any stock split, stock dividend, recapitalization, reorganization, merger, consolidation, combination or exchange of shares, spin-off or other similar corporate change, the number and type of shares to which the PSUs held by the Participant relate shall be adjusted to such extent (if any), determined to be appropriate and equitable by the Committee. 
 
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2. Nontransferability. Unless the Committee specifically determines otherwise: (a) the PSUs and LTC Award are personal to the Participant and (b) neither the PSUs nor the LTC Award shall be transferable or assignable, other than in the case of the Participant’s death by will or the laws of descent and distribution, and any such purported transfer or assignment shall be null and void. 
 
3. Definitions. As used in this Agreement, the following terms shall have the meanings set forth below: 

(a)  “Covered Products” means any product that falls into one or more of the following categories, so long as the Company is producing, marketing, selling or licensing such product anywhere in the world: in-home and commercial beverage systems, carbon dioxide gas cylinders, carbon dioxide gas refills, consumables, and ready-to-drink beverages, including without limitation carbonated soft drinks, tea, water, juices, juice drinks, juice products sports drinks, coffee drinks, and energy drinks; dairy products; snacks, including salty snacks, fruit and vegetable snacks, dips and spreads, sweet snacks, meat snacks, granola, nutrition and cereal bars, and cookies; hot cereals and ready-to-eat cereals; pancake mixes and pancake syrup; grain-based food products; pasta products; sports performance nutrition products, including without limitation, energy, protein, carbohydrate, nutrition and meal replacement chews, bars, powders, gels, drinks or drink mixes; or any product or service that the Participant had reason to know was under development by the Company during the Participant’s employment with the Company. 
 
 (b) “Participation” shall be construed broadly to include, without limitation: (i) serving as a director, officer, employee consultant or contractor with respect to such a business entity; (ii) providing input, advice, guidance or suggestions to such a business entity; or (iii) providing a recommendation or testimonial on behalf of such a business entity or one or more products it produces. 

 (c) “Prospective Customer” shall mean any individual or entity of which the Participant has gained knowledge as a result of the Participant’s employment with the Company and with which the Participant dealt with or had contact with during the six (6) months preceding his or her termination of employment with the Company. 

(d) “Related Entity” shall mean any entity (i) as to which PepsiCo directly or indirectly owns 20% or more, but less than a majority, of the entity’s voting securities, general partnership interests, or other voting or management rights at the relevant time and (ii) which the Committee or its delegate deems in its sole discretion to be a related entity at the relevant time.
  
(e) “Retirement” shall mean (i) early, normal or late retirement as used in the U.S. pension plan of the Company in which the Participant participates (if any) and for which the Participant is eligible pursuant to the terms of such plan or (ii) termination of employment after attaining at least age 55 and completing at least 10 years of service with the Company (or, if earlier, after attaining at least age 65 and completing at least five years of service with the Company), with the number of years of service completed by a Participant subject to clause (ii) to be calculated in accordance with administrative procedures established from time to time under the Plan.
 
(f) “Total Disability” shall mean being considered totally disabled under the PepsiCo Long-Term Disability Program (as amended and restated from time to time), with such status having resulted in benefit payments from such plan or another Company-sponsored disability plan and 12 months having elapsed since the Participant was so considered to be disabled from the cause of the current disability. The 
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effective date of a Participant’s Total Disability shall be the first day that all of the foregoing requirements are met.
 
4. Notices. Any notice to be given to PepsiCo in connection with the terms of this Agreement shall be addressed to PepsiCo at 700 Anderson Hill Road, Purchase, New York 10577, Attention: Senior Vice President, Total Rewards, or such other address as PepsiCo may hereafter designate to the Participant. Any such notice shall be deemed to have been duly given when personally delivered, addressed as aforesaid, or when enclosed in a properly sealed envelope or wrapper, addressed as aforesaid, and deposited, postage prepaid, with the federal postal service. 
 
5. Binding Effect. This Agreement shall be binding upon and inure to the benefit of any assignee or successor in interest to PepsiCo, whether by merger, consolidation or the sale of all or substantially all of PepsiCo’s assets. PepsiCo will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of PepsiCo expressly to assume and agree to perform this Agreement in the same manner and to the same extent that PepsiCo would be required to perform it if no such succession had taken place.  This Agreement shall be binding upon and inure to the benefit of the Participant or his or her legal representative and any person to whom the PSUs and LTC Award may be transferred by will or the applicable laws of descent and distribution. 
 
6. No Contract of Employment; Agreement’s Survival. This Agreement is not a contract of employment.  This Agreement does not impose on the Company any obligation to retain the Participant in its employ and shall not interfere with the ability of the Company to terminate the Participant’s employment relationship at any time. This Agreement shall survive the termination of the Participant’s employment for any reason. If an entity ceases to be a majority-owned subsidiary of PepsiCo for purposes of Rule 12b-2 of the Exchange Act or a Related Entity, such cessation shall, for purposes of this Agreement, be deemed to be a termination of employment with the Company with respect to any Participant employed by such entity, unless the Committee or its delegate determines otherwise in its sole discretion.
 
7. Registration, Listing and Qualification of Shares of PepsiCo Common Stock. The Committee may require that the Participant make such representations and agreements and furnish such information as the Committee deems appropriate to assure compliance with or exemption from the requirements of any securities exchange, any foreign, federal, state or local law, any governmental regulatory body, or any other applicable legal requirement, and PepsiCo Common Stock shall not be issued unless and until the Participant makes such representations and agreements and furnished such information as the Committee deems appropriate. 

8. Amendment; Waiver. The terms and conditions of this Agreement may be amended in writing by the chief human resources officer or chief legal officer of PepsiCo (or either of their delegates); provided, however, that (i) no such amendment shall adversely affect the awards granted hereunder without the Participant’s written consent (except to the extent the Committee reasonably determines that such amendment is necessary or appropriate to comply with applicable law, including the provisions of Internal Revenue Code of 1986, as amended (the “Code”) Section 409A and the regulations thereunder pertaining to the deferral of compensation, or the rules and regulations of any stock exchange on which PepsiCo Common Stock is listed or quoted); and (ii) the amendment must be permitted under the Plan. The Company’s failure to insist upon strict compliance with any provision of this Agreement or failure to exercise, or any delay in exercising, any right, power or remedy under this Agreement shall not be deemed to be a waiver of such provision or any such right, power or remedy which the Board (as defined in the Plan), the Committee or the Company has under this Agreement. 
 
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9. Severability or Reform by Court. In the event that any provision of this Agreement is deemed by a court to be broader than permitted by applicable law, then such provision shall be reformed (or otherwise revised or narrowed) so that it is enforceable to the fullest extent permitted by applicable law. If any provision of this Agreement shall be declared by a court to be invalid or unenforceable to any extent, the validity or enforceability of the remaining provisions of this Agreement shall not be affected. 
 
10. Plan Terms. The PSUs, the LTC Award and the terms and conditions set forth herein are subject in all respects to the terms and conditions of the Plan and any guidelines, policies or regulations which govern administration of the Plan. The Committee reserves its rights to amend or terminate the Plan at any time without the consent of the Participant; provided, however, that PSUs and LTC Awards outstanding under the Plan at the time of such action shall not, without the Participant’s written consent, be adversely affected thereby (except to the extent the Committee reasonably determines that such amendment or termination is necessary or appropriate to comply with applicable law, including the provisions of Code Section 409A and the regulations thereunder pertaining to the deferral of compensation, or the rules and regulations of any stock exchange on which PepsiCo Common Stock is listed or quoted). The Committee shall have full power and authority to administer and interpret the Plan and to adopt or establish such rules, regulations, agreements, guidelines, procedures and instruments that are not contrary to the terms of the Plan and that, in its opinion, may be necessary or advisable for the administration and operation of the Plan.  All interpretations or determinations of the Committee or its delegate shall be final, binding and conclusive upon the Participant (and his or her legal representatives and any recipient of a transfer of the PSUs or LTC Award permitted by this Agreement) on any question arising hereunder or under the Plan or other guidelines, policies or regulations which govern administration of the Plan. 
 
11. Participant Acknowledgements. By entering into this Agreement, the Participant acknowledges and agrees that: 
 
(a) the PSUs and the LTC Award will be exclusively governed by the terms of the Plan, including the right reserved by the Company to amend or cancel the Plan at any time without the Company incurring liability to the Participant (except for PSUs and LTC Awards already granted under the Plan); 
 
(b) the Participant has been provided a copy of PepsiCo’s Prospectus relating to the Plan, the PSUs (and the shares covered thereby) and the LTC Award; 
 
(c) the PSUs and LTC Awards are not a constituent part of the Participant’s salary and that the Participant is not entitled, under the terms and conditions of his or her employment, or by accepting or being awarded any PSUs or LTC Awards pursuant to this Agreement, to require options, performance stock units, cash or other awards to be granted to him/her in the future under the Plan or any other plan; 
 
(d) upon payment of PSUs or LTC Awards, the Participant will arrange for payment to the Company an estimated amount to cover employee payroll taxes resulting from such payment and/or, to the extent necessary, any balance may be withheld from the Participant’s wages; 
 
(e) benefits received under the Plan will be excluded from the calculation of termination indemnities or other severance payments; 
(f) in the event of termination of the Participant’s employment, a severance or notice period to which the Participant may be entitled under local law and which follows the date of termination specified in a notice of termination or other document evidencing the termination of the Participant’s employment will not be treated as active employment for purposes of this Agreement and, as a result, vesting of unvested PSUs or LTC Awards will not be extended by any such period;
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(g) for purposes of this Agreement, a Participant will be considered actively employed during (i) the first six months of an authorized leave of absence approved by the Company, in its sole discretion, or (ii) other statutory leaves that have requirements in excess of six months;  
 (h) the Participant will seek all necessary approval under, make all required notifications under and comply with all laws, rules and regulations applicable to the ownership of stock, including, without limitation, currency and exchange laws, rules and regulations; 

(i) this Agreement will be interpreted and applied so that the PSUs and the LTC Award, to the extent possible, will not be subject to Code Section 409A.  To the extent such awards are subject to Code Section 409A because of the Participant’s eligibility for Retirement, then payments limited to the earliest permissible payment date under Code Section 409A shall be made following a Change in Control only (i) upon a Change in Control if it qualifies under Code Section 409A(a)(2)(A)(v) (a “409A CIC”), and (ii) upon a termination of employment if it occurs after a 409A CIC and it constitutes a Code Section  409A separation from service (and in this case, the six-month delay of Code Section 409A(a)(2)(B)(i) shall apply to “specified employees,” determined under the default rules of Code Section 409A or such other rules as apply generally under the Company’s Section 409A plans). Notwithstanding any other provision of this Agreement, this Agreement will be modified to the extent the Committee reasonably determines is necessary or appropriate for such PSUs or LTC Awards to comply with Code Section 409A; and 

(j) the non-disclosure provisions set forth in Paragraph C.2. supersede and replace in their entirety the non-disclosure provisions set forth in the Plan as in effect on the date hereof, in any agreement evidencing an Award made under the Plan and in any other Awards made under the Plan.
 
 
12. Right of Set-Off. The Participant agrees, in the event that the Company in its reasonable judgment determines that the Participant owes the Company any amount due to any loan, note, obligation or indebtedness, including but not limited to amounts owed to the Company pursuant to the Company’s tax equalization program or the Company’s policies with respect to travel and business expenses, and if the Participant has not satisfied such obligation(s), then the Company may instruct the plan administrator to withhold and/or sell shares of PepsiCo Common Stock acquired by the Participant upon settlement of the PSUs (to the extent such PSUs are not subject to Code Section 409A), or the Company may deduct funds equal to the amount of such obligation from other funds due to the Participant from the Company (including with respect to any LTC Award) to the maximum extent permitted by Code Section 409A.
 
13. Electronic Delivery and Acceptance. The Participant hereby consents and agrees to electronic delivery of any Plan documents, proxy materials, annual reports and other related documents.  The Participant hereby consents to any and all procedures that the Company has established or may establish for an electronic signature system for delivery and acceptance of Plan documents (including documents relating to any programs adopted under the Plan), and agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his or her manual signature.  Participant consents and agrees that any such procedures and delivery may be effected by a third party engaged by the Company to provide administrative services related to the Plan, including any program adopted under the Plan.
 
14. Data Privacy. Participant hereby acknowledges and consents to the collection, use, processing and/or transfer of Personal Data as defined and described in this Paragraph D.14.  Participant is not obliged to consent, however a failure to provide consent, or the withdrawal of consent at any time, may impact Participant’s ability to participate in the Plan.  The Company and/or Participant’s employer 
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collects and maintains certain personal information about Participant that may include name, home address and telephone number, email address, date of birth, social security number or other government or employer-issued identification number, salary grade, hire data, salary, citizenship, job title, any shares of PepsiCo Common Stock, or details of all performance stock units, long-term cash awards or any other entitlement to shares of PepsiCo Common Stock awarded, cancelled, purchased, vested, or unvested (collectively “Personal Data”).  The Company and the Participant’s employer will transfer Personal Data internally as necessary for the purpose of implementation, administration and management of the Participant’s participation in the Plan and the Company and/or the Participant’s employer may further transfer Personal Data to any third parties assisting the Company in the implementation, administration and management of the Plan.   These recipients may be located in the European Economic Area or UK, or elsewhere throughout the world, such as the United States.  The Participant hereby authorizes (where required under applicable law) the recipients to receive, possess, use, retain and transfer Personal Data, in electronic or other form, as may be required for the administration of the Plan and/or the subsequent holding of any shares of PepsiCo Common Stock on the Participant’s behalf, to a broker or other third party with whom the Participant may elect to deposit any shares of PepsiCo Common Stock acquired pursuant to the Plan. Third parties retained by the Company may use the Personal Data as authorized by the Company to provide the requested services. Third parties may be located throughout the world, including but not limited to the United States.  Third parties often maintain their own published policies that describe their privacy and security practices. The Company is not responsible for the privacy or security practices of any third parties. Participant may access, review or amend certain Personal Data by contacting the Company and/or the Plan’s service provider.  The Participant may, at any time, exercise the Participant's rights provided under applicable personal data protection laws, which may include the right to (i) obtain confirmation as to the existence of Personal Data, (ii) verify the content, origin and accuracy of Personal Data, (iii) request the integration, update, amendment, deletion or blockage (for breach of applicable laws) of Personal Data, (iv) oppose, for legal reasons, the collection, processing or transfer of the Personal Data which is not necessary or required for the implementation, administration and/or operation of the Plan and the Participant's participation in the Plan, and (v) withdraw the Participant's consent to the collection, processing or transfer of Personal Data as provided hereunder (in which case, the stock options, restricted stock units, performance stock units or any other entitlement to shares of PepsiCo Common Stock awarded will become null and void).  The Participant may seek to exercise these rights by contacting the Participant's Human Resources manager or the Company's Human Resources Department, who may direct the matter to the applicable Company privacy official. Finally, the Participant understands that the Company may rely on a different legal basis for the processing and/or transfer of Personal Data in the future and/or request the Participant to provide another data privacy consent. If applicable and upon request of the Company, the Participant agrees to provide an executed acknowledgment or data privacy consent (or any other acknowledgments, agreements or consents) to the Company or the employer that the Company and/or the employer may deem necessary to obtain under the data privacy laws in the Participant's country, either now or in the future. The Participant understands that the Participant will not be able to participate in the Plan if the Participant fails to execute any such acknowledgment or consent requested by the Company and/or the employer.
 
15. Stock Ownership Guidelines/Share Retention Policy. The Participant agrees as a condition of this grant that, in the event that the Participant is or becomes subject to the Company’s Stock Ownership Guidelines and/or Share Retention Policy, the Participant shall not sell any shares of PepsiCo Common Stock obtained upon settlement of the PSUs unless such sale complies with the Stock Ownership Guidelines and the Share Retention Policy as in effect from time to time.
 
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16. Governing Law. Notwithstanding the provisions of Paragraphs D.10 and D.11, this Agreement shall be governed, construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict of law rules or principles. 
 
17. Choice of Venue; Attorneys’ Fees. Notwithstanding the provisions of Paragraphs D.10 and D.11, any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement may be brought against the Participant or the Company only in the courts of the State of New York or, if it has or can acquire jurisdiction, in the United States District Court for the Southern District of New York, and the Participant and the Company consents to the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection to venue laid therein.  In the event that a Participant or the Company brings an action to enforce the terms of the Plan or any Award Agreement and the Company prevails, the Participant shall pay all costs and expenses incurred by the Company in connection with that action, including reasonable attorneys’ fees, and all further costs and fees, including reasonable attorneys’ fees incurred by the Company in connection with the collection.

 18. Addendum to Agreement.  Notwithstanding any provisions of this Agreement to the contrary, the PSUs shall be subject to such special terms and conditions for the Participant's country of residence (and country of employment, if different), as are set forth in the addendum to this Agreement (the “Addendum”).  Further, if the Participant transfers residency and/or employment to another country, any special terms and conditions for such country will apply to the PSUs to the extent the Committee or its duly authorized delegate determines, in its sole discretion, that the application of such terms and conditions is necessary or advisable in order to comply with local laws, rules or regulations or to facilitate the operation and administration of the PSUs  and the Plan (or the Committee or its duly authorized delegate may establish alternative terms and conditions as may be necessary or advisable to accommodate the Participant's transfer).  In all circumstances, the Addendum shall constitute part of this Agreement.

19. Entire Agreement. This Agreement contains all the understanding and agreements between the Participant and the Company regarding the subject matter hereof.

PepsiCo, Inc.
                        
                        _/s/ Duncan Micallef_____________
Duncan Micallef
Senior Vice President, Total Rewards

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