Document:

Third Loan Modification Agreement

 Exhibit 10.1 
 THIRD LOAN MODIFICATION AGREEMENT 
 This Third Loan Modification Agreement (this “Loan
Modification Agreement”) is entered into as of October 8, 2008, by and between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a
loan production office located at One Newton Executive Park, Suite 200, 2221 Washington Street, Newton, Massachusetts 02462 (FAX 617-969-5965) (“Bank”) and SALARY.COM, INC. a Delaware corporation with offices at 195 West Street,
Waltham, Massachusetts 02451 (“Borrower”). 
  

	 	1.	DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant
to a loan arrangement dated as of August 10, 2006, evidenced by, among other documents, a certain Loan and Security Agreement dated as of August 10, 2006, as affected by a certain Waiver Agreement dated as of June 8, 2008, between
Borrower and Bank (the “Waiver Agreement”), as amended by a certain First Loan Modification Agreement dated as of August 8, 2008, between Borrower and Bank, and as further amended by a certain Second Loan Modification Agreement dated
as of September 17, 2008, between Borrower and Bank (as amended from time to time, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement.

  

	 	2.	DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other collateral security
granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.

  

	 	3.	DESCRIPTION OF CHANGE IN TERMS. 

  

	 	A.	Modifications to Loan Agreement. 

  

	 	1	Borrower hereby acknowledges that, as a condition precedent to Bank’s obligation to make the first Credit Extension pursuant to Section 2.1.1 while Borrower is not Stage 1
Eligible, Bank shall have received the results of a complete audit of Borrower’s Collateral, with results satisfactory to Bank in its sole and absolute discretion. 

  

	 	2	The Loan Agreement shall be amended by deleting the following text, appearing in Section 2.1.2(a) thereof: 

 “As part of the Revolving Line, Bank shall issue or have issued Letters of Credit for Borrower’s account. The face amount of outstanding
Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve) may not exceed One Million Dollars ($1,000,000.00), inclusive of Credit Extensions relating to Sections 2.1.3 and 2.1.4.” 
 and inserting in lieu thereof the following: 
 “As part of the Revolving Line, Bank shall issue or have issued Letters of Credit for Borrower’s account. The face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of
Credit Reserve) may not exceed Five Million Dollars ($5,000,000.00), inclusive of Credit Extensions relating to Sections 2.1.3 and 2.1.4.” 

	 	3	The Loan Agreement shall be amended by deleting the following text, appearing in Section 2.1.3 thereof: 

 “FX Forward Contracts shall have a Settlement Date of at least one (1) FX Business Day after the contract date and shall be subject to a
reserve of ten percent (10%) of each outstanding FX Forward Contract in a maximum aggregate amount equal to One Hundred Thousand Dollars ($100,000.00) (the “FX Reserve”). The aggregate amount of FX Forward Contracts at any one
time may not exceed ten (10) times the amount of the FX Reserve and the aggregate amount of FX Forward Contracts may not exceed One Million Dollars ($1,000,000.00), inclusive of Credit Extensions relating to Sections 2.1.2 and 2.1.4.”

 and inserting in lieu thereof the following: 
 “FX Forward Contracts shall have a Settlement Date of at least one (1) FX Business Day after the contract date and shall be subject to a reserve of ten percent (10%) of each outstanding FX Forward
Contract in a maximum aggregate amount equal to Five Hundred Thousand Dollars ($500,000.00) (the “FX Reserve”). The aggregate amount of FX Forward Contracts at any one time may not exceed ten (10) times the amount of the FX
Reserve and the aggregate amount of FX Forward Contracts may not exceed Five Million Dollars ($5,000,000.00), inclusive of Credit Extensions relating to Sections 2.1.2 and 2.1.4.” 
  

	 	4	The Loan Agreement shall be amended by deleting the following text, appearing in Section 2.1.4 thereof: 

 “Borrower may use up to One Million Dollars ($1,000,000.00) (the “Cash Management Services Sublimit”), inclusive of Credit
Extensions relating to Sections 2.1.2 and 2.1.3 of the Revolving Line for Bank’s cash management services which may include merchant services, direct deposit of payroll, business credit card, and check cashing services identified in Bank’s
various cash management services agreements (collectively, the “Cash Management Services”).” 
 and inserting in lieu
thereof the following: 
 “Borrower may use up to Five Million Dollars ($5,000,000.00) (the “Cash Management Services
Sublimit”), inclusive of Credit Extensions relating to Sections 2.1.2 and 2.1.3 of the Revolving Line for Bank’s cash management services which may include merchant services, direct deposit of payroll, business credit card, and check
cashing services identified in Bank’s various cash management services agreements (collectively, the “Cash Management Services”).” 
  

	 	5	The Loan Agreement shall be amended by deleting the following, appearing as Section 2.2 thereof: 

 “ 2.2 Overadvances. If, at any time, the Credit Extensions under Sections 2.1.1, 2.1.2, 2.1.3 and 2.1.4 exceeds the lesser of either
(a) the Revolving Line or (b) the Borrowing Base, Borrower shall immediately pay to Bank in cash such excess. In addition, if, at any time, the outstanding Credit Extensions under Sections 2.1.1, 2.1.2, 2.1.3, 2.1.4 and 2.1.5 exceed Five
Million Dollars ($5,000,000.00), Borrower shall immediately to pay Bank in cash such excess.” 
 and inserting in lieu thereof the
following: 
 “ 2.2 Overadvances. If, at any time, the Availability Amount is less than Zero Dollars ($0.00), Borrower shall
immediately pay to Bank in cash an amount necessary to make the Availability Amount Zero Dollars ($0.00).” 
  

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	 	6	The Loan Agreement shall be amended by deleting the following text, appearing in Section 2.3(a) thereof: 

 “(i) Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating
per annum rate equal to one quarter of one percentage point (0.25%) above the Prime Rate, which interest shall be payable monthly in accordance with Section 2.3(f) below.” 
 and inserting in lieu thereof the following: 
 “(i) Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to (A) for times when Borrower is not Stage 1 Eligible, one
quarter of one percentage point (0.25%) above the Prime Rate, or (B) for times when Borrower is Stage 1 Eligible, the Prime Rate, which interest shall be payable monthly in accordance with Section 2.3(f) below.” 
  

	 	7	The Loan Agreement shall be amended by deleting the following text, appearing in Section 2.4 thereof: 

 “(b) Anniversary Fee. A fully earned, non-refundable anniversary fee of Twenty Five Thousand Dollars ($25,000.00) (the “Anniversary
Fee”), which Anniversary Fee shall be earned as of the date hereof, and shall be payable on the earlier to occur of (i) the date that is one year from the Effective Date, (ii) the occurrence of an Event of Default, or
(iii) the early termination of this Agreement;” 
 and inserting in lieu thereof the following: 
 “(b) Anniversary Fee. 
 (i) A fully earned, non-refundable anniversary fee of Twenty Five Thousand Dollars ($25,000.00) (the “Anniversary Fee”), which Anniversary Fee shall be earned as of the date hereof, and shall be payable on the earlier to
occur of (A) the date that is one year from the Effective Date, (B) the occurrence of an Event of Default, or (C) the early termination of this Agreement; and 
 (ii) A fully earned, non-refundable anniversary fee of Thirty Thousand Dollars ($30,000.00) (the “2008 Anniversary
Fee”), which 2008 Anniversary Fee shall be earned as of the 2008 Effective Date, and shall be payable on the earlier to occur of (A) the date that is one year from the 2008 Effective Date, (B) the occurrence of an Event of
Default, or (C) the early termination of this Agreement.” 
  

	 	8	The Loan Agreement shall be amended by deleting the following text, appearing in Section 2.4 thereof: 

 “(e) Early Termination Fee. This Agreement may be terminated as follows: (i) by Borrower, effective three Business Days after written
notice of termination is given to Bank; or (ii) by Bank at any time after the occurrence of an Event of Default and any applicable cure period, without notice, effective immediately. If this Agreement is terminated by Borrower for any reason,
Borrower shall pay to Bank (in addition to all other amounts hereunder, including pursuant to Section 

  

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2.4) a termination fee in an amount equal to either (1) Twenty Five Thousand Dollars ($25,000.00), if the termination occurs on or before
August 10, 2007, or (2) Ten Thousand Dollars ($10,000.00) if the termination occurs after August 10, 2007 (the “Early Termination Fee”). The Early Termination Fee shall be due and payable on the effective date of such
termination and thereafter shall bear interest at a rate equal to the highest rate applicable to any of the Obligations. Notwithstanding the foregoing, Bank agrees to waive the Early Termination Fee if Bank agrees to refinance and redocument this
Agreement under another division of Bank (in its sole and exclusive discretion) prior to the expiration of this Agreement; and” 
 and
inserting in lieu thereof the following: 
 “(e) Intentionally omitted;” 
  

	 	9	The Loan Agreement shall be amended by deleting the following, appearing as Section 5.4 thereof: 

 “ 5.4 Litigation. There are no actions or proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing by or
against Borrower or any of its Subsidiaries involving more than One Hundred Thousand Dollars ($100,000.00).” 
 and inserting in lieu
thereof the following: 
 “ 5.4 Litigation. There are no actions or proceedings pending or, to the knowledge of the Responsible
Officers, threatened in writing by or against Borrower or any of its Subsidiaries involving more than Two Hundred Fifty Thousand Dollars ($250,000.00).” 
  

	 	10	The Loan Agreement shall be amended by deleting the following, appearing as Section 6.2 thereof: 

 “ 6.2 Financial Statements, Reports, Certificates. 
 (a) Deliver to Bank: (i) as soon as available, but no later than thirty (30) days after the last day of each month (forty
(40) days for the months ending July 31, 2006, August 31, 2006, September 30, 2006 and October 31, 2006), a company prepared consolidated balance sheet and income statement covering Borrower’s consolidated
operations during the period certified by a Responsible Officer and in a form acceptable to Bank; (ii) as soon as available, but no later than one hundred fifty (150) days after the last day of Borrower’s fiscal year, audited
consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm acceptable to Bank in its reasonable discretion
(provided that the documents required by this subsection to be delivered to Bank for Borrower’s fiscal year ended March 31, 2006 shall be delivered on or prior to October 31, 2006); (iii) within five (5) days of delivery,
copies of all statements, reports and notices made available to Borrower’s security holders or to any holders of Subordinated Debt; (iv) in the event that Borrower becomes subject to the reporting requirements under the Securities Exchange
Act of 1934, as amended, within five (5) days of filing, all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission or a link thereto on Borrower’s or another website on the Internet; (v) a prompt report
of any legal actions pending or threatened against Borrower or any of its 

  

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Subsidiaries that could result in damages or costs to Borrower or any of its Subsidiaries of One Hundred Thousand Dollars ($100,000.00) or more;
(vi) annually, and as may otherwise be reasonably requested by Bank, Board-approved financial projections no later than sixty (60) days after Borrower’s fiscal year end (and any amendments thereto approved by Borrower’s Board);
and (vii) budgets, sales projections, operating plans and other financial information reasonably requested by Bank. 
 (b) Within twenty (30) days after the last day of each month, deliver to Bank a duly completed Borrowing Base Certificate signed by a Responsible Officer, with aged listings of accounts receivable (by invoice date) and (ii) a
future billings report in form acceptable to Bank in its sole discretion which lists the amounts that will be billed by Borrower within the next one hundred twenty (120) days (from the applicable month end) and the contracts and invoices
(including the date the bill will be sent) in connection with such billings. 
 (c) Within thirty (30) days after the
last day of each month (forty (40) days for the months ending July 31, 2006, August 31, 2006, September 30, 2006 and October 31, 2006), deliver to Bank with the monthly financial statements, a duly completed
Compliance Certificate signed by a Responsible Officer setting forth calculations showing compliance with the financial covenants set forth in this Agreement. 
 (d) Within thirty (30) days after the last day of each month, a Deferred Revenue report, in form acceptable to Bank in its sole
discretion. 
 (e) Allow Bank to audit Borrower’s Collateral at Borrower’s expense. Such audits shall be conducted
no more often than once every twelve (12) months unless a Default or an Event of Default has occurred and is continuing. Notwithstanding the foregoing, no Advance may be requested prior to the Initial Audit. The foregoing audits shall be at
Borrower’s expense, and the charge therefor shall be $750 per person per day (or such higher amount as shall represent Bank’s then-current standard charge for the same), plus out-of-pocket expenses.” 
 and inserting in lieu thereof the following: 
 “ 6.2 Financial Statements, Reports, Certificates. 
 (a) Deliver to Bank: (i) as soon as
available, but no later than (A) thirty (30) days after the last day of each month that is not the last month in a fiscal quarter of Borrower, or (B) forty-five (45) days after the last day of each month that is the last month in
a fiscal quarter of Borrower (or, if Borrower is Stage 1 Eligible, no later than forty-five (45) days after the last day of each quarter), a company prepared consolidated and consolidating balance sheet and income statement covering
Borrower’s consolidated and consolidating operations during the period certified by a Responsible Officer and in a form acceptable to Bank; (ii) as soon as available, but no later than one hundred twenty (120) days after the last day
of Borrower’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from Grant Thornton LLP or another independent certified 

  

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public accounting firm of national reputation or otherwise acceptable to Bank in its reasonable discretion; (iii) within five (5) days of delivery,
copies of all statements, reports and notices made available to Borrower’s security holders or to any holders of Subordinated Debt; (iv) in the event that Borrower becomes subject to the reporting requirements under the Securities Exchange
Act of 1934, as amended, within five (5) days of filing, all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission or a link thereto on Borrower’s or another website on the Internet; (v) a prompt report
of any legal actions pending or threatened against Borrower or any of its Subsidiaries that could reasonably be expected to result in damages or costs to Borrower or any of its Subsidiaries of Two Hundred Fifty Thousand Dollars ($250,000.00) or
more; (vi) annually, and as may otherwise be reasonably requested by Bank, Board-approved financial projections no later than sixty (60) days after Borrower’s fiscal year end (and any amendments thereto approved by Borrower’s
Board); and (vii) budgets, sales projections, operating plans and other financial information reasonably requested by Bank. 
 (b) Within (i) thirty (30) days after the last day of each month that is not the last month in a fiscal quarter of Borrower, or (ii) forty-five (45) days after the last day of each month that is the last month in a
fiscal quarter of Borrower, so long as Borrower is not Stage 1 Eligible, and immediately at such time as when Borrower is not Stage 1 Eligible, deliver to Bank (i) a duly completed Borrowing Base Certificate signed by a Responsible Officer,
with aged listings of accounts receivable and accounts payable (by invoice date), and (ii) a future billings report in form acceptable to Bank in its sole discretion which lists the amounts that will be billed by Borrower within the next one
hundred twenty (120) days (from the applicable month end) and the contracts and invoices (including the date the bill will be sent) in connection with such billings. 
 (c) Within (i) thirty (30) days after the last day of each month that is not the last month in a fiscal quarter of Borrower, or
(ii) forty-five (45) days after the last day of each month that is the last month in a fiscal quarter of Borrower, so long as Borrower is not Stage 1 Eligible, and immediately at such time as when Borrower is not Stage 1 Eligible, deliver
to Bank with the monthly financial statements, a duly completed Compliance Certificate signed by a Responsible Officer setting forth calculations showing compliance with the financial covenants set forth in this Agreement. 
 (d) Within (i) thirty (30) days after the last day of each month that is not the last month in a fiscal quarter of Borrower, or
(ii) forty-five (45) days after the last day of each month that is the last month in a fiscal quarter of Borrower, so long as Borrower is not Stage 1 Eligible, and immediately at such time as when Borrower is not Stage 1 Eligible, deliver
to Bank a Deferred Revenue report, in form acceptable to Bank in its sole discretion. 
 (e) So long as Borrower is not Stage
1 Eligible, permit Bank to audit Borrower’s Collateral at Borrower’s expense. Such audits shall be conducted no more often than twice every twelve (12) months unless a Default or an Event of Default has occurred and is continuing. The
foregoing audits shall be at Borrower’s expense, and the charge therefor shall be $750 per person per day (or such higher amount as shall represent Bank’s then-current standard charge for the same), plus out-of-pocket expenses.”

  

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	 	11	The Loan Agreement shall be amended by deleting the following text, appearing in Section 6.3 thereof: 

 “Borrower must promptly notify Bank of all returns, recoveries, disputes and claims that involve more than One Hundred Thousand Dollars
($100,000.00).” 
 and inserting in lieu thereof the following: 
 “Borrower must promptly notify Bank of all returns, recoveries, disputes and claims that involve more than Two Hundred Fifty Thousand Dollars
($250,000.00).” 
  

	 	12	The Loan Agreement shall be amended by deleting the following text, appearing in Section 6.5 thereof: 

 “Notwithstanding the foregoing, (a) so long as no Event of Default has occurred and is continuing, Borrower shall have the option of applying
the proceeds of any casualty policy up to One Hundred Thousand Dollars ($100,000.00), in the aggregate, toward the replacement or repair of destroyed or damaged property; provided that any such replaced or repaired property (i) shall be of
equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Bank has been granted a first priority security interest, and (b) after the occurrence and during the continuance of an Event of
Default, all proceeds payable under such casualty policy shall, at the option of Bank, be payable to Bank on account of the Obligations.” 
 and inserting in lieu thereof the following: 
 “Notwithstanding the foregoing, (a) so long as no Event of Default has
occurred and is continuing, Borrower shall have the option of applying the proceeds of any casualty policy up to Two Hundred Fifty Thousand Dollars ($250,000.00), in the aggregate, toward the replacement or repair of destroyed or damaged property;
provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Bank has been granted a first priority security interest, and
(b) after the occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Bank, be payable to Bank on account of the Obligations.” 
  

	 	13	The Loan Agreement shall be amended by deleting the following, appearing as Section 6.6 thereof: 

 “ 6.6 Operating Accounts. 
 (a) Maintain its and its Subsidiaries’ primary depository and operating accounts and securities accounts with Bank and Bank’s affiliates, and a majority of Borrower’s and such Subsidiaries’ cash or
securities in excess of that amount used for Borrower’s or such Subsidiary’s current operations shall be maintained with Bank and Bank’s affiliates. 
 (b) Provide Bank five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial

  

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institution other than Bank or its Affiliates. In addition, for each Collateral Account that Borrower at any time maintains, Borrower shall cause the
applicable bank or financial institution (other than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect
Bank’s Lien in such Collateral Account in accordance with the terms hereunder. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments
to or for the benefit of Borrower’s employees and identified to Bank by Borrower as such.” 
 and inserting in lieu thereof the
following: 
 “ 6.6 Operating Accounts. 
 (a) Maintain its and its Subsidiaries’ primary depository and operating accounts and securities accounts with Bank and Bank’s
affiliates, and a majority of Borrower’s and such Subsidiaries’ cash or securities in excess of that amount used for Borrower’s or such Subsidiary’s current operations shall be maintained with Bank and Bank’s affiliates. Any
Guarantor shall maintain all depository, operating and securities accounts with Bank, or SVB Securities. 
 (b) Provide Bank
five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial institution other than Bank or its Affiliates. In addition, for each Collateral Account that Borrower or Guarantor at any time
maintains, Borrower shall cause the applicable bank or financial institution (other than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such
Collateral Account to perfect Bank’s Lien in such Collateral Account in accordance with the terms hereunder. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other
employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Bank by Borrower as such.” 
  

	 	14	The Loan Agreement shall be amended by deleting the following, appearing as Section 6.7 thereof: 

 “ 6.7 Financial Covenants. 
 Borrower shall maintain at all times, to be tested as of the last day of each month, unless otherwise noted, on a consolidated basis with respect to Borrower and its Subsidiaries: 
 (a) Liquidity. Borrower’s unrestricted cash at Bank plus the Committed Availability of at least Seven Hundred Fifty Thousand
Dollars ($750,000.00). 
 (b) Adjusted Net Income. The aggregate amount of invoices submitted for payment by Borrower
for services rendered and products delivered minus expenses (which expenses are determined in accordance with GAAP) of at least (i) ($750,000) for the three-month periods ending August 31, 2006, September 30,
2006, October 31, 2006 and November 30, 2006, (ii) $1,000,000 for the three-month periods ending December 31, 2006, January 31, 2007, and February 28, 2007, (iii) ($250,000) for the three-month periods
ending March 31, 2007, April 30, 2007, May 31, 2007, June 30, 2007, July 31, 2007 and 

  

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August 31, 2007, (iv) $1.00 for the three-month periods ending September 30, 2007, October 31, 2007 and November 30, 2007,
(v) $1,000,000 for the three-month periods ending December 31, 2007, January 31, 2008 and February 28, 2008, (vi) $1.00 for the three-month periods ending March 31, 2008, April 30, 2008 and May 31,
2008, (vii) ($300,000) for the three month period ending June 30, 2008, (viii) ($600,000) for the three-month period ending July 31, 2008, and (ix) ($1,300,000) for the three-month period ending August 31, 2008.”

 and inserting in lieu thereof the following: 
 “ 6.7 Financial Covenants. 
 For any time at which Borrower is not Stage 1
Eligible, Borrower shall maintain at all such times, to be tested as of the last day of each month, unless otherwise noted: 
 (a) Liquidity. Borrower’s unrestricted cash and cash equivalents at Bank or Bank’s affiliates plus the Committed Availability of at least Fifteen Million Dollars ($15,000,000.00). 
 (b) Domestic Invoices. As of the last day of each month, for the three-month period ending on such day, Borrower shall have issued
invoices to Account Debtors located in the United States, with an aggregate value of at least (i) for the three-month periods ending on October 31, 2008 and November 30, 2008, Eleven Million Dollars ($11,000,000.00), (ii) for the
three-month period ending on December 31, 2008, Fourteen Million Dollars ($14,000,000.00), (iii) for the three-month periods ending on January 31, 2009, February 28, 2009 and March 31, 2009, Fifteen Million Dollars
($15,000,000.00), (iv) for the three-month periods ending on April 30, 2009, May 31, 2009, June 30, 2009, July 31, 2009, August 31, 2009, September 30, 2009, October 31, 2009 and
November 30, 2009, Fourteen Million Dollars ($14,000,000.00), and (v) for the three-month period ending on December 31, 2009, and for the three-month period ending on the last day of each month thereafter, Fifteen Million Dollars
($15,000,000.00). 
 All financial covenants in this Section 6.7 shall be tested with respect to Borrower (including any
entity subsequently added as a “Borrower” hereunder) and Salary.com Securities Corporation together.” 
  

	 	15	The Loan Agreement shall be amended by inserting the following new provisions, to appear immediately after Section 6.10 thereof: 

 “ 6.11 ICR Limited L.C. Provide evidence to Bank, within ninety (90) days of the 2008 Effective Date, that ICR Limited L.C.,
Borrower’s wholly-owned Subsidiary, has been dissolved. 
 6.12 Salary.com Jamaica Limited. Deliver to Bank,
within thirty (30) days of the 2008 Effective Date, an unconditional guaranty from Salary.com Jamaica Limited (Borrower’s wholly-owned Subsidiary organized under the laws of Jamaica), together with all other documentation reasonably
requested by Bank in connection therewith, all in form and substance reasonably acceptable to Bank.” 
  

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	 	16	The Loan Agreement shall be amended by deleting the following, appearing as Section 7.2 thereof: 

 “ 7.2 Changes in Business, Management, Ownership, Control, or Business Locations. (a) Engage in or permit any of its Subsidiaries to
engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably related thereto; (b) liquidate or dissolve; or (c) (i) if any Key Person ceases to hold such office
with Borrower and a replacement satisfactory to Bank is not made within sixty (60) days after such Key Person’s departure from Borrower, or (ii) enter into any transaction or series of related transactions in which the stockholders of
Borrower immediately prior to the first such transaction own less than 60% of the voting stock of Borrower immediately after giving effect to such transaction or related series of such transactions (other than by the sale of Borrower’s equity
securities in a public offering or to venture capital or angel investors so long as Borrower identifies to Bank such investors prior to the closing of the transaction). Borrower shall not, without at least thirty (30) days prior written notice
to Bank: (1) add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than Ten Thousand Dollars ($10,000) in Borrower’s assets or property), (2) change its
jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization.” 
 and inserting in lieu thereof the following: 
 “ 7.2 Changes in Business, Management, or Business Locations. (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as
applicable, or reasonably related thereto; (b) liquidate or dissolve; or (c) if any Key Person ceases to hold such office with Borrower and a replacement satisfactory to Bank is not made within sixty (60) days after such Key
Person’s departure from Borrower. Borrower shall not, without at least thirty (30) days prior written notice to Bank: (1) add any new offices or business locations, including warehouses (unless such new offices or business locations
contain less than Twenty-Five Thousand Dollars ($25,000) in Borrower’s assets or property), (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or
(5) change any organizational number (if any) assigned by its jurisdiction of organization.” 
  

	 	17	The Loan Agreement shall be amended by deleting the following, appearing as Section 7.3 thereof: 

 “ 7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or
acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person. A Subsidiary may merge or consolidate into another Subsidiary or into Borrower, and may be liquidated or dissolved,
without Bank’s consent, provided that the proceeds of such liquidation are distributed to Borrower.” 
 and inserting in lieu
thereof the following: 
 “ 7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or
consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or 

  

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substantially all of the capital stock or property of another Person, except where each of (a) the entity acquired by Borrower is in the same or a
similar line of business of Borrower, (b) total consideration including cash and the value of any non-cash consideration for any such transaction does not in the aggregate exceed Two Million Dollars ($2,000,000.00); (c) total consideration
including cash and the value of any non-cash consideration, for all such transactions does not in the aggregate exceed Four Million Dollars ($4,000,000.00) during the period commencing on October 8th of one year and ending on October 7th of the next year; (d) no Event
of Default has occurred and is continuing or would exist after giving effect to the transaction; (e) Borrower can provide evidence of pro forma compliance with the financial covenants set forth in Section 6.7 as of the last day of the
then-current month, and (f) Borrower is the surviving legal entity. A Subsidiary may merge or consolidate into another Subsidiary or into Borrower, and may be liquidated or dissolved, without Bank’s consent, provided that the proceeds of
such liquidation are distributed to Borrower.” 
  

	 	18	The Loan Agreement shall be amended by deleting the following, appearing as Section 7.7 thereof: 

 “ 7.7 Distributions; Investments. (a) Directly or indirectly make any Investment other than Permitted Investments, or permit any of its
Subsidiaries to do so; or (b) pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock, except that Borrower may repurchase the stock of former employees or consultants pursuant to stock repurchase
agreements so long as an Event of Default does not exist at the time of such repurchase and would not exist after giving effect to such repurchase, provided such repurchase does not exceed in the aggregate of One Hundred Thousand Dollars
($100,000.00) per fiscal year.” 
 and inserting in lieu thereof the following: 
 “ 7.7 Distributions; Investments. (a) Directly or indirectly make any Investment other than Permitted Investments, or permit any of its
Subsidiaries to do so; or (b) pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock, except that Borrower may repurchase its stock so long as an Event of Default does not exist at the time of such
repurchase and would not exist after giving effect to such repurchase, provided such repurchases do not exceed in the aggregate of Two Million Dollars ($2,000,000.00) per fiscal year.” 
  

	 	19	The Loan Agreement shall be amended by deleting the following text, appearing in Section 8.2 thereof: 

 “(a) Borrower fails or neglects to perform any obligation in Sections 6.2, 6.6, 6.7, or violates any covenant in Section 7; or”

 and inserting in lieu thereof the following: 
 “(a) Borrower fails or neglects to perform any obligation in Sections 6.2, 6.6, 6.7, 6.11, or violates any covenant in Section 7; or” 
  

 11 

	 	20	The Loan Agreement shall be amended by deleting the following text, appearing in Section 8.4 thereof: 

 “(d) a judgment or other claim in excess of One Hundred Thousand Dollars ($100,000.00) becomes a Lien on any of Borrower’s assets;”

 and inserting in lieu thereof the following: 
 “(d) a judgment or other claim in excess of Two Hundred Fifty Thousand Dollars ($250,000.00) becomes a Lien on any of Borrower’s assets;” 
  

	 	21	The Loan Agreement shall be amended by deleting the following, appearing as Section 8.6 thereof: 

 “ 8.6 Other Agreements. There is a default in any agreement to which Borrower is a party with a third party or parties resulting in a right
by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of One Hundred Thousand Dollars ($100,000) or that could have a material adverse effect on Borrower’s
business;” 
 and inserting in lieu thereof the following: 
 “ 8.6 Other Agreements. There is a default in any agreement to which Borrower or any Guarantor is a party with a third party or parties
resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of Two Hundred Fifty Thousand Dollars ($250,000.00) or that could have a material adverse effect on
Borrower’s or any Guarantor’s business;” 
  

	 	22	The Loan Agreement shall be amended by deleting the following, appearing as Section 8.7 thereof: 

 “ 8.7 Judgments. A judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least One Hundred
Thousand Dollars ($100,000) (not covered by independent third-party insurance) shall be rendered against Borrower and shall remain unsatisfied and unstayed (including by the timely filing of an appeal of such judgment or judgments) for a period of
ten (10) days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction or stay of such judgment);” 
 and inserting in lieu thereof the following: 
 “ 8.7 Judgments. A judgment or judgments for the
payment of money in an amount, individually or in the aggregate, of at least Two Hundred Fifty Thousand Dollars ($250,000.00) (not covered by independent third-party insurance) shall be rendered against Borrower and shall remain unsatisfied and
unstayed (including by the timely filing of an appeal of such judgment or judgments) for a period of ten (10) days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction or stay of such
judgment);” 
  

	 	23	The Loan Agreement shall be amended by inserting the following new provision, to appear immediately after Section 8.9 thereof: 

 “ 8.10 Guaranty. (a) Any guaranty of any Obligations terminates or ceases for any reason to be in full force and effect; (b) any
Guarantor does not perform any obligation or covenant under any 

  

 12 

 
guaranty of the Obligations; (c) any circumstance described in Sections 8.3, 8.4, 8.5, 8.7, or 8.8. occurs with respect to any Guarantor, (d) the
death, liquidation, winding up, or termination of existence of any Guarantor; or (e) (i) a material impairment in the perfection or priority of Bank’s Lien in the collateral provided by Guarantor or in the value of such collateral or
(ii) a material adverse change in the general affairs, management, results of operation (if such Guarantor has operations), condition (financial or otherwise) or the prospect of repayment of the Obligations occurs with respect to any
Guarantor.” 
  

	 	24	The Loan Agreement shall be amended by deleting the following text, appearing in Section 9.1 thereof: 

 “place a “hold” on any account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or other
directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral;” 
 and
inserting in lieu thereof the following: 
 “deliver a notice of exclusive control, any entitlement order, or other directions or
instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral;” 
  

	 	25	The Loan Agreement shall be amended by deleting the following text, appearing in the definition of Permitted Liens in Section 13.1 thereof: 

 “(c) purchase money Liens (i) on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no
more than One Hundred Thousand Dollars ($100,000.00) in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment; and”

 and inserting in lieu thereof the following: 
 “(c) purchase money Liens (i) on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no more than Two Hundred Fifty Thousand Dollars ($250,000.00) in the
aggregate amount outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment; and” 
  

	 	26	The Loan Agreement shall be amended by deleting the following definitions, appearing in Section 13.1 thereof: 

 “ “Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the Borrowing Base minus (b) the
amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) plus an amount equal to the Letter of Credit Reserves, minus (c) the FX Reserve, and minus (d) the outstanding principal balance of any
Advances (including any amounts used for Cash Management Services).” 
 “ “Borrowing Base” is (a) 80% of
Eligible Accounts plus (b) 50% of Contractual Billings, as determined by Bank from Borrower’s most recent Borrowing Base Certificate; provided, however, that Bank may decrease the foregoing percentages in its good faith business 

  

 13 

 
judgment, after consultation with Borrower, based on events, conditions, contingencies, or risks which, as determined by Bank, may adversely affect
Collateral. Notwithstanding the foregoing, the aggregate amount of Advances made based upon Contractual Billings at any time shall not exceed, at any time, an amount equal to twenty-five percent (25.0%) of the lesser of (a) the Revolving
Line, or (b) sum of (i) 80% of Borrower’s Eligible Accounts (as determined by Borrower’s Borrowing Base Certificate), and (ii) 50% of Borrower’s Contractual Billings (as determined by Borrower’s Borrowing Base
Certificate).” 
 “ “Committed Availability” means, as the date of determination, an amount equal to the sum of
the Revolving Line minus all outstanding Credit Extensions.” 
 “ “Key Person” is any of Borrower’s Chief
Executive Officer and Chief Financial Officer, who, as of the Effective Date, are Gregory Kent Plunkett and Ken Goldman, respectively.” 
 “ “Loan Documents” are, collectively, this Agreement, the Perfection Certificate, any note, or notes or guaranties executed by Borrower or any guarantor, and any other present or future agreement between Borrower,
and/or any guarantor and/or for the benefit of Bank in connection with this Agreement, all as amended, restated, or otherwise modified.” 
 “ “Material Adverse Change” is (a) a material impairment in the perfection or priority of Bank’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business,
operations, or condition (financial or otherwise) of Borrower; (c) a material impairment of the prospect of repayment of any portion of the Obligations; or (d) Bank determines, based upon information available to it and in its reasonable
judgment, that there is a reasonable likelihood that Borrower shall fail to comply with one or more of the financial covenants in Section 6 during the next succeeding financial reporting period.” 
 “ “Permitted Investments” are: 
 (a) Investments shown on the Perfection Certificate and existing on the Effective Date; and 
 (b) Cash Equivalents.” 
 “ “Revolving Line” is an Advance or Advances in an aggregate amount of up to
Five Million Dollars ($5,000,000.00) outstanding at any time.” 
 “ “Revolving Line Maturity Date” is
October 8, 2008.” 
 and inserting in lieu thereof the following: 
 “ “Availability Amount” is (a) when Borrower is Stage 1 Eligible, (i) the Revolving Line minus (ii) the amount of
all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) plus an amount equal to the Letter of Credit Reserves, minus (iii) the FX Reserve, and minus (iv) the 

  

 14 

 
outstanding principal balance of any Advances (including any amounts used for Cash Management Services), or (b) when Borrower is not Stage 1 Eligible,
(i) the lesser of (A) the Revolving Line, or (B) the Borrowing Base minus (ii) the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) plus an amount equal to the Letter of Credit
Reserves, minus (iii) the FX Reserve, and minus (iv) the outstanding principal balance of any Advances (including any amounts used for Cash Management Services).” 
 “ “Borrowing Base” is (a) 80% of Eligible Accounts plus (b) 50% of Contractual Billings, as determined by Bank from
Borrower’s most recent Borrowing Base Certificate; provided, however, that Bank may decrease the foregoing percentages in its good faith business judgment, after consultation with Borrower, based on events, conditions, contingencies, or risks
which, as determined by Bank, may adversely affect Collateral. Notwithstanding the foregoing, the aggregate amount of Advances made based upon Contractual Billings at any time shall not exceed, at any time, an amount equal to thirty percent
(30.0%) of the lesser of (a) the Revolving Line, or (b) sum of (i) 80% of Borrower’s Eligible Accounts (as determined by Borrower’s Borrowing Base Certificate), and (ii) 50% of Borrower’s Contractual Billings
(as determined by Borrower’s Borrowing Base Certificate).” 
 “ “Committed Availability” means, as the date
of determination, an amount equal to (a) the lesser of (i) the Revolving Line and (ii) the Borrowing Base, minus (b) all outstanding Credit Extensions.” 
 “ “Key Person” is any of Borrower’s Chief Executive Officer and Chief Financial Officer.” 
 “ “Loan Documents” are, collectively, this Agreement, the Perfection Certificate, any note, or notes or guaranties executed by
Borrower or any Guarantor, and any other present or future agreement between Borrower, and/or any Guarantor and/or for the benefit of Bank in connection with this Agreement, all as amended, restated, or otherwise modified.” 
 “ “Material Adverse Change” is (a) a material impairment in the perfection or priority of Bank’s Lien in the Collateral
or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise) of Borrower and each Secured Guarantor, taken as a whole; (c) a material impairment of the prospect of
repayment of any portion of the Obligations; or (d) Bank determines, based upon information available to it and in its reasonable judgment, that there is a substantial likelihood that Borrower shall fail to comply with one or more of the
financial covenants in Section 6 during the next succeeding financial reporting period.” 
 “ “Permitted
Investments” are: 
 (a) Investments shown on the Perfection Certificate and existing on the Effective Date;

 (b) Cash Equivalents; 
  

 15 

 (c) Investments in Salary.com Securities Corporation; 
 (d) Investments in Infobasis Limited for the ordinary and necessary current operating expenses of Infobasis Limited in an aggregate
amount not to exceed (i) Three Hundred Fifty Thousand Dollars ($350,000.00) during the period beginning on the 2008 Effective Date and ending on the date that is 364 days from the 2008 Effective Date, and (ii) Two Hundred Fifty Thousand
Dollars ($250,000.00) from the period beginning on the date that is one (1) year from the 2008 Effective Date and ending on the date that is two (2) years from the 2008 Effective Date; 
 (e) Investments in SDC China Ltd. for the ordinary and necessary current operating expenses of SDC China Ltd. in an aggregate amount not
to exceed Eight Hundred Thousand Dollars ($800,000.00) per quarter; and 
 (f) Investments in Salary.com Jamaica Limited for
the ordinary and necessary current operating expenses of Salary.com Jamaica Limited in an aggregate amount not to exceed Five Hundred Thousand Dollars ($500,000.00) per quarter; provided, however, if during any quarter, the aggregate amount of such
Investments made by Borrower is less than Five Hundred Thousand Dollars ($500,000.00) (such difference being the “Unused Amount”), then, during the first month in the subsequent quarter, Borrower may also make Investments in Salary.com
Jamaica Limited for the ordinary and necessary current operating expenses of Salary.com Jamaica Limited in an aggregate amount not to exceed the Unused Amount.” 
 “ “Revolving Line” is an Advance or Advances in an aggregate amount of up to Ten Million Dollars ($10,000,000.00) outstanding at any time.” 
 “ “Revolving Line Maturity Date” is October 8, 2010.” 
  

	 	27	The Loan Agreement shall be amended by inserting the following definition, to appear in appropriate alphabetical order in Section 13.1 thereof: 

 “ “2008 Anniversary Fee” is defined in Section 2.4(b).” 
 “ “2008 Effective Date” is October 8, 2008.” 
 “ “Guarantor” is any present or future guarantor of the Obligations, including, without limitation, Salary.com Securities
Corporation.” 
 “ “Secured Guarantor” is any present or future guarantor of the Obligations that has granted a
lien to Bank in all of its assets of the type described on Exhibit A, including, without limitation, Salary.com Securities Corporation.” 
 “ “Stage 1 Eligible” means, for any given time, that Borrower has at such time, and has had at all times during the then-current month, unrestricted and unencumbered cash and cash equivalents at
Bank or Bank’s affiliates in an amount equal to at least Twenty Million Dollars ($20,000,000.00).” 
 “ “Unused
Amount” is defined in subsection (f) of the definition of Permitted Investments.” 
  

 16 

	 	28	The Borrowing Base Certificate appearing as Exhibit C to the Loan Agreement is hereby deleted in its entirety and replaced with the Borrowing Base Certificate attached
as Schedule 1 hereto. 

  

	 	29	The Compliance Certificate appearing as Exhibit D to the Loan Agreement is hereby deleted in its entirety and replaced with the Compliance Certificate attached as
Schedule 2 hereto. 

  

	 	4.	FEES. Borrower has previously paid to Bank a fee equal to Thirty-Five Thousand Dollars ($35,000.00) in connection with this Loan Modification Agreement. Borrower shall also
reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents. 

  

	 	5.	PERFECTION CERTIFICATE. In connection with this Loan Modification Agreement, Borrower has delivered to Bank an updated Perfection Certificate. Borrower represents and
warrants to Bank that (a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the type and is organized in the jurisdiction set forth in the
Perfection Certificate; (c) the Perfection Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has none; (d) the Perfection Certificate accurately sets forth
Borrower’s place of business, or, if more than one, its chief executive office as well as Borrower’s mailing address (if different than its chief executive office); (e) except as set forth in the Perfection Certificate, Borrower (and
each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on
the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete. 

  

	 	6.	CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above. 

  

	 	7.	RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to the Bank, and
confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 

  

	 	8.	NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the
Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby
RELEASES Bank from any liability thereunder. 

  

	 	9.	CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s representations, warranties, and
agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank’s agreement to
modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of
the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by virtue of this Loan Modification
Agreement. 

  

	 	10.	COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank. 

  

 17 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the Commonwealth of
Massachusetts as of the date first written above. 
  

									
	BORROWER:	 		 	BANK:
			
	SALARY.COM, INC.	 		 	SILICON VALLEY BANK
					
	By:	 	 /s/ Bryce Chicoyne
	 		 	By:	 	 /s/ Larisa B. Chilton

	Name:	 	Bryce Chicoyne	 		 	Name:	 	/s/ Larisa B. Chilton
	Title:	 	Sr. Vice President and CFO	 		 	Title:	 	Vice President

  

 18PepsiCo Executive Income Deferral Program

 EXHIBIT 10.1 
 PEPSICO 
 EXECUTIVE INCOME 
 DEFERRAL PROGRAM 
 Plan Document for the Pre-409A Program 
 As Amended and Restated Effective July 1, 1997 
 (with Revisions through September 12, 2008) 

 PEPSICO 
 EXECUTIVE INCOME DEFERRAL PROGRAM 
 TABLE OF CONTENTS 
  

					
	 ARTICLE I: INTRODUCTION AND ESTABLISHMENT
	  	1
		
	 ARTICLE II: DEFINITIONS
	  	3
			
		  	 2.1  Account
	  	3
		  	 2.2  Base Compensation
	  	3
		  	 2.3  Beneficiary
	  	3
		  	 2.4  Bonus Compensation
	  	3
		  	 2.5  Code
	  	4
		  	 2.6  Company
	  	4
		  	 2.7  Deferral Subaccount
	  	4
		  	 2.8  Disability
	  	4
		  	 2.9  Effective Date
	  	4
		  	 2.10  Election Form
	  	4
		  	 2.11  Employee
	  	4
		  	 2.12  Employer
	  	4
		  	 2.13  ERISA
	  	4
		  	 2.14  Fair Market Value
	  	4
		  	 2.15  Participant
	  	5
		  	 2.16  Performance Unit Payout
	  	5
		  	 2.17  Plan
	  	5
		  	 2.18  Plan Administrator
	  	5
		  	 2.19  Plan Year
	  	5
		  	 2.20  Retirement
	  	5
		  	 2.21  Risk of Forfeiture Subaccount
	  	5
		  	 2.22  Section 409A
	  	6
		  	 2.23  Stock Option Gains
	  	6
		  	 2.24  Termination of Employment
	  	6
		  	 2.25  Valuation Date
	  	6
		
	 ARTICLE III: PARTICIPATION
	  	7
			
		  	 3.1  Eligibility to Participate
	  	7
		  	 3.2  Deferral Election
	  	7
		  	 3.3  Time and Manner of Deferral Election
	  	8
		  	 3.4  Period of Deferral
	  	9
		
	 ARTICLE IV: INTERESTS OF PARTICIPANTS
	  	11
			
		  	 4.1  Accounting for Participants’ Interests
	  	11
		  	 4.2  Vesting of a Participant’s Account
	  	14
		  	 4.3  Risk of Forfeiture Subaccounts
	  	14

  

 -i- 

					
		  	 4.4  Distribution of a Participant’s Account
	  	 16

		  	 4.5  Acceleration of Payment in Certain Cases
	  	 18

		
	 ARTICLE V: PLAN ADMINISTRATOR
	  	 19

			
		  	 5.1  Plan Administrator
	  	 19

		  	 5.2  Action
	  	 19

		  	 5.3  Rights and Duties
	  	 19

		  	 5.4  Compensation, Indemnity and Liability
	  	 20

		  	 5.5  Taxes
	  	 20

		  	 5.6  Section 16 Compliance
	  	 21

		
	 ARTICLE VI: CLAIMS PROCEDURE
	  	 23

			
		  	 6.1  Claims for Benefits
	  	 23

		  	 6.2  Appeals
	  	 23

		  	 6.3  Special Procedures for Disability Determinations
	  	 23

		
	 ARTICLE VII: AMENDMENT AND TERMINATION
	  	 24

			
		  	 7.1  Amendments
	  	 24

		  	 7.2  Termination of Plan
	  	 24

		
	 ARTICLE VIII: MISCELLANEOUS
	  	 25

			
		  	 8.1  Limitation on Participant’s Rights
	  	 25

		  	 8.2  Unfunded Obligation of Individual Employer
	  	 25

		  	 8.3  Other Plans
	  	 25

		  	 8.4  Receipt or Release
	  	 25

		  	 8.5  Governing Law and Compliance
	  	 25

		  	 8.6  Adoption of Plan by Related Employers
	  	 26

		  	 8.7  Gender, Tense, Headings and Examples
	  	 26

		  	 8.8  Successors and Assigns; Nonalienation of Benefits
	  	 26

		  	 8.9  Facility of Payment
	  	 26

		  	 8.10  Separate Plans
	  	 27

		
	 APPENDIX
	  	
			
		  	 Article A:  Spinoff of Tricon
	  	   2

		  	 Article B:  Initial Public Offering of PBG
	  	   6

  

 -ii- 

 ARTICLE I 
 INTRODUCTION 
 PepsiCo, Inc. (the “Company”) established the PepsiCo Executive Income
Deferral Program in 1972 to permit eligible executives to defer certain cash awards made under its executive compensation programs. Subsequently, the PepsiCo Executive Income Deferral Program (the “Plan”) was expanded to permit eligible
executives to defer base pay, certain other categories of executive compensation and gains on Performance Share Stock Options. 
 Except as
otherwise provided, this document sets forth the terms of the Plan as in effect on July 1, 1997. As of that date, it specifies the group of executives of the Company and certain affiliated employers eligible to make deferrals, the procedures
for electing to defer compensation and the Plan’s provisions for maintaining and paying out amounts that have been deferred. Additional provisions applicable to certain executives are set forth in the Appendix, which modifies and supplements
the general provisions of the Plan. 
 Deferrals under the Plan that were earned and vested on or before December 31, 2004 are governed
by a set of documents (which includes this document) that set forth the pre-Section 409A terms of the Plan (the “Pre-409A Program”). The terms of the Plan that are applicable to deferrals that are subject to Section 409A, i.e.,
generally, deferred amounts that are earned or vested after December 31, 2004 (the “409A Program”) are governed by a separate document. This document sets forth the terms of the Pre-409A Program as in effect on July 1, 1997 with
revisions through September 12, 2008, while terms in effect prior to July 1, 1997 are governed by other Pre-409A Program documents. Alternatively, the 409A Program document reflects the provisions in effect from and after January 1,
2005, and the rights and benefits of individuals who are participants in the Plan from and after that date (and of those claiming through or on behalf of such individuals) shall be governed by the provisions of the 409A Program document and not the
Pre-409A Program documents in the case of actions and events occurring on or after January 1, 2005 with respect to deferrals that are subject to the 409A Program. For purposes of the preceding sentence, the term “actions and events”
shall include all distribution trigger events and dates. The rights and benefits with respect to persons who only participated in the Plan prior to January 1, 2005 shall be governed by this document and the other applicable provisions of the
Pre-409A Program documents that were in effect at such time, and shall not be governed by the 409A Program documents. 
 Together, the
documents for the 409A Program and the documents for the Pre-409A Program describe the terms of a single plan. However, amounts subject to the terms of the 409A Program and amounts subject to the terms of the Pre-409A Program shall be tracked
separately at all times. The preservation of the terms of the Pre-409A Program, without material modification, and the separation between the 409A Program amounts and the Pre-409A Program amounts are intended to permit the Pre-409A Program to remain
exempt from Section 409A, and the administration of the Plan shall be consistent with this intent. 
  

 1 

 The Plan is unfunded and unsecured. Amounts deferred by an executive are an obligation of that
executive’s individual employer. With respect to his employer, the executive has the rights of a general creditor. 
  

 2 

 ARTICLE II 
 DEFINITIONS 
 When used in this Plan, the following underlined terms shall have the meanings set
forth below unless a different meaning is plainly required by the context: 
 2.1 Account: The account maintained for a Participant on
the books of his Employer to determine, from time to time, the Participant's interest under this Plan. The balance in such Account shall be determined by the Plan Administrator. Each Participant's Account shall consist of at least one Deferral
Subaccount for each separate deferral under Section 3.2. In accordance with Section 4.3, some or all of a separate deferral may be held in a Risk of Forfeiture Subaccount. The Plan Administrator may also establish such additional
subaccounts as it deems necessary for the proper administration of the Plan. Where appropriate, a reference to a Participant’s Account shall include a reference to each applicable subaccount that has been established thereunder. 
 2.2 Base Compensation: An eligible Employee’s adjusted base salary, as determined by the Plan Administrator and to the extent paid in U.S.
dollars from an Employer’s U.S. payroll. For any applicable payroll period, an eligible Employee’s adjusted base salary shall be determined after reductions for applicable tax withholdings, Employee authorized deductions (including
deductions for SaveUp, Benefits Plus and charitable donations), tax levies, garnishments and such other amounts as the Plan Administrator recognizes as reducing the amount of base salary available for deferral. 
 2.3 Beneficiary: The person or persons (including a trust or trusts) properly designated by a Participant, as determined by the Plan
Administrator, to receive the amounts in one or more of the Participant’s subaccounts in the event of the Participant's death. To be effective, any Beneficiary designation must be in writing, signed by the Participant, and filed with the Plan
Administrator prior to the Participant’s death, and it must meet such other standards as the Plan Administrator shall require from time to time. If no designation is in effect at the time of a Participant's death or if all designated
Beneficiaries have predeceased the Participant, then the Participant’s Beneficiary shall be his estate. A Beneficiary designation of an individual by name (or name and relationship) remains in effect regardless of any change in the designated
individual’s relationship to the Participant. A Beneficiary designation solely by relationship (for example, a designation of “spouse,” that does not give the name of the spouse) shall designate whoever is the person in that
relationship to the Participant at his death. An individual who is otherwise a Beneficiary with respect to a Participant’s Account ceases to be a Beneficiary when all payments have been made from the Account. 
 2.4 Bonus Compensation: An eligible Employee’s adjusted annual incentive award under his Employer’s annual incentive plan or the
Executive Incentive Compensation Plan, as determined and adjusted by the Plan Administrator and to the extent paid in U.S. dollars 

  

 3 

 
from an Employer’s U.S. payroll. An eligible Employee’s annual incentive awards shall be adjusted to reduce them for applicable tax withholdings,
Employee authorized deductions (including deductions for SaveUp, Benefits Plus and charitable donations), tax levies, garnishments and such other amounts as the Plan Administrator recognizes as reducing the amount of such awards available for
deferral. 
 2.5 Code: The Internal Revenue Code, as amended. 
 2.6 Company: PepsiCo, Inc., a North Carolina corporation, or its successor or successors. 
 2.7 Deferral Subaccount: A subaccount of a Participant's Account maintained to reflect his interest in the Plan attributable to each deferral of Base Compensation, Bonus Compensation, Performance Unit Payout
and Stock Option Gains, respectively, and earnings or losses credited to such subaccount in accordance with Section 4.1(b). 
 2.8
Disability: A Participant who is entitled to receive benefits under the PepsiCo Long Term Disability Plan shall be deemed to suffer from a disability. Participants who are not eligible to participate in the PepsiCo Long Term Disability Plan
shall be deemed to suffer to from a disability if, in the judgment of the Plan Administrator, they satisfy the standards for disability under the PepsiCo Long Term Disability Plan. 
 2.9 Effective Date: July 1, 1997. 
 2.10 Election Form: The form
prescribed by the Plan Administrator on which a Participant specifies the amount of his Base Compensation, Bonus Compensation, Performance Unit Payout or Stock Option Gains to be deferred pursuant to the provisions of Article III. 
 2.11 Employee: Any person in a salaried classification of an Employer who (i) is receiving remuneration for personal services rendered in the
employment of the Employer, (ii) is either a United States citizen or a resident alien lawfully admitted for permanent residence in the United States, and (iii) is paid in U.S. dollars from the Employer’s U.S. payroll. 
 2.12 Employer: Each division of the Company and each of the Company’s subsidiaries and affiliates that is currently designated as an Employer
by the Plan Administrator. 
 2.13 ERISA: The Employee Retirement Income Security Act of 1974, as amended. 
 2.14 Fair Market Value: For purposes of converting a Participant’s deferrals to PepsiCo Capital Stock as of any date, the Fair Market Value
of PepsiCo Capital Stock is determined as the average of the high and low price on such date for PepsiCo Capital Stock 

  

 4 

 
as reported on the composite tape for securities listed on the New York Stock Exchange, Inc., rounded to four decimal places. For purposes of determining the
value of a Plan distribution or for reallocating amounts between phantom investment options under the Plan, the Fair Market Value of PepsiCo Capital Stock is determined as the closing price on the applicable Valuation Date (identified based on the
Plan Administrator’s current procedures) for PepsiCo Capital Stock, as reported on the composite tape for securities listed on the New York Stock Exchange, Inc., rounded to four decimal places. 
 2.15 Participant: Any Employee eligible pursuant to Section 3.1 who has satisfied the requirements for participation in this Plan and who has
an Account. A Participant includes any individual who deferred compensation prior to the Effective Date and for whom any Employer maintains on its books an Account for such deferred compensation as of the Effective Date. An active Participant is one
who is currently deferring under Section 3.2. 
 2.16 Performance Unit Payout: The adjusted performance unit award payable to an
Employee under the Company’s Long Term Incentive Plan during a Plan Year, to the extent paid in U.S. dollars from an Employer’s U.S. payroll. An eligible Employee’s performance unit award shall be adjusted to reduce it for applicable
tax withholdings, Employee authorized deductions, tax levies, garnishments and such other amounts as the Plan Administrator recognizes as reducing the amount of such awards available for deferral. 
 2.17 Plan: The PepsiCo Executive Income Deferral Program, the plan set forth herein and in the 409A Program document, as it may be amended and
restated from time to time (subject to the limitations on amendment that are applicable hereunder and under the 409A Program). The portion of the Plan that governs deferrals that are subject to Section 409A is referred to as the “409A
Program,” while the portion of the Plan that governs deferrals that are not subject to Section 409A, which includes this document, is referred to as the “Pre-409A Program.” 
 2.18 Plan Administrator: The Compensation Committee of the Board of Directors of the Company or its delegate or delegates. 
 2.19 Plan Year: The 12-month period from January 1 to December 31. 
 2.20 Retirement: Termination of service with the Company and its affiliates after attaining eligibility for retirement. A Participant attains eligibility for retirement when he attains at least age 55 with 10 or more years of
service, or at least age 65 with 5 or more years of service (whichever occurs earliest) while in the employment of the Company or its affiliates. A Participant’s service is determined under the terms of the PepsiCo Salaried Employees Retirement
Plan. 
 2.21 Risk of Forfeiture Subaccount: The subaccount provided for by Section 4.3 to contain the portion of each separate
deferral that is subject to forfeiture. 
  

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 2.22 Section 409A: Section 409A of the Code and the applicable regulations and other guidance
of general applicability that are issued thereunder. 
 2.23 Stock Option Gains: The gains on an eligible Employee’s Performance
Share Stock Options that are available for deferral under the Plan pursuant to Section 3.3(c). With respect to any options that are made subject to a Stock Option Gain deferral election, the gains on such options shall be determined through a
sale of related shares by the Plan Administrator net of: (i) the exercise price of the options, (ii) any transaction costs incurred when such gains are captured through the sale of related shares, and (iii) any related taxes that the
Plan Administrator determines will not otherwise be satisfied by the Participant. For purposes of such sales, the Plan Administrator may aggregate shares related to the options of different Participants, sell them over one or more days and divide
the net proceeds from such aggregate sales between the Participants in a reasonable manner. The Plan Administrator shall have absolute discretion with respect to the timing and aggregation of such sales. 
 2.24 Termination of Employment: A Participant’s cessation of employment with the Company, all Employers and all other Company subsidiaries
and affiliates (as defined for this purpose by the Plan Administrator). For purposes of determining forfeitures under Section 4.3 and distributing a Participant’s Account under Section 4.4, the following shall apply: 
 (a) A Participant does not have a Termination of Employment when the business unit or division of the Company that employs him is sold if
the Participant and substantially all employees of that entity continue to be employed by the entity or its successor after the sale. A Participant also does not have a Termination of Employment when the subsidiary of the Company that employs him is
sold if: (i) the Participant continues to be employed by the entity or its successor after the sale, and (ii) the Participant’s interest in the Plan continues to be carried as a liability by that entity or its successor after the sale
through a successor arrangement. In each case, the Participant’s Termination of Employment shall occur upon the Participant’s post-sale termination of employment from such entity or its successor (and their related organizations, as
determined by the Plan Administrator). 
 (b) With respect to any individual deferral, the term “Termination of
Employment” may encompass a Participant’s death or death may be considered a separate event, depending upon the convention the Plan Administrator follows with respect to such deferral. 
 2.25 Valuation Date: Each date as of which Participant Accounts are valued in accordance with procedures of the Plan Administrator that are
currently in effect. As of the Effective Date, the Valuation Dates are March 31, June 30, September 30 and December 31. Values are determined as of the close of a Valuation Date or, if such date is not a business day,
as of the close of the immediately preceding business day. 
  

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 ARTICLE III 
 PARTICIPATION 
 3.1 Eligibility to Participate. 
 (a) An Employee shall be eligible to defer compensation under the Plan while employed by an Employer at salary grade level 14 or above.
Notwithstanding the preceding sentence, from time to time the Plan Administrator may modify, limit or expand the class of Employees eligible to defer hereunder, pursuant to criteria for eligibility that need not be uniform among all or any group of
Employees. During the period an individual satisfies all of the eligibility requirements of this section, he shall be referred to as an eligible Employee. 
 (b) Each eligible Employee becomes an active Participant on the date an amount is first withheld from his compensation pursuant to an Election Form submitted by the Employee to the Plan Administrator under
Section 3.3. 
 (c) An individual’s eligibility to participate actively by making deferrals under Section 3.2
shall cease upon the earlier of: 
 (1) The date he ceases to be an Employee who is employed by an Employer at salary grade
level 14 or above; or 
 (2) The date the Employee ceases to be eligible under criteria described in the last sentence of
subsection (a) above. 
 (d) An individual, who has been an active Participant under the Plan, ceases to be a
Participant on the date his Account is fully paid out. 
 3.2 Deferral Election. 
 (a) Each eligible Employee may make an election to defer under the Plan any whole percentage (up to 100%) of his Base Compensation, Bonus
Compensation, Performance Unit Payout or Stock Option Gains in the manner described in Section 3.3. Any percentage of Base Compensation deferred by an eligible Employee for a Plan Year will be deducted each pay period during the Plan Year for
which he has Base Compensation and is an eligible Employee. The percentage of Bonus Compensation or Performance Unit Payout deferred by an Eligible Employee for a Plan Year will be deducted from his payment under the applicable compensation program
at the time it would otherwise be made, provided he remains an eligible Employee at such time. Any Stock Option Gains deferred by an eligible Employee shall be captured as of the date or dates applicable for the category 

  

 7 

 
of underlying options under procedures adopted by the Plan Administrator, provided that the Plan Administrator determines the eligible Employee’s rights
in such options may still be recognized at such time. 
 (b) To be effective, an Eligible Employee’s Election Form must
set forth the percentage of Base Compensation, Bonus Compensation or Performance Unit Payout to be deferred (or for a deferral of Stock Option Gains, the specific options on which any gains are to be deferred), the investment choice under
Section 4.1 (which investment must be stated in multiples of 5 percent), the deferral period under Section 3.4, the eligible Employee’s Beneficiary designation, and any other information that may be requested by the Plan Administrator
from time to time. In addition, the Election Form must meet the requirements of Section 3.3 below. 
 3.3 Time and Manner of Deferral
Election. 
 (a) Deferrals of Base Compensation. Subject to the next two sentences, an eligible Employee must make
a deferral election for a Plan Year with respect to Base Compensation at least two months prior to the Plan Year in which the Base Compensation would otherwise be paid. An individual who newly becomes an eligible Employee during a Plan Year (or less
than three months prior to a Plan Year) may make a deferral election with respect to Base Compensation to be paid during the balance of the current Plan Year within 30 days of the date the individual becomes an eligible Employee. Such an individual
may also make an election at this time with respect to Base Compensation to be paid during the next Plan Year. 
 (b)
Deferrals of Bonuses and Performance Unit Payouts. Subject to the next sentence, an eligible Employee must make a deferral election for a Plan Year with respect to his Bonus Compensation or Performance Unit Payout at least six months prior to
the Plan Year in which the Bonus Compensation or Performance Unit Payout would otherwise be paid. An individual who newly becomes an eligible Employee may make a deferral election with respect to his Bonus Compensation or Performance Unit Payout to
be paid during the succeeding Plan Year later than the date applicable under the previous sentence so long as the deferral election is made: (i) within 30 days of the date the individual becomes an eligible Employee, and (ii) sufficiently
prior to the first day of such succeeding Plan Year to ensure, in the discretionary judgment of the Plan Administrator, that the amount to be deferred will not have been constructively received (under all the facts and circumstances). 
 (c) Deferrals of Stock Option Gains. From time to time, the Plan Administrator shall notify eligible Employees with outstanding
Performance Share Options which options then qualify for deferral of their related Stock Option Gains. An eligible Employee who has qualifying options must make a deferral election with respect to his related Stock Option Gains at least 6 months
before such qualifying options’ proposed capture date (as defined below) or, if earlier, in the calendar year 

  

 8 

 
preceding the year of the proposed capture date. The “proposed capture date” for a set of options shall be the earliest date that the Plan
Administrator would capture a Participant’s Stock Option Gains in accordance with the deferral agreement prepared for such purpose by the Plan Administrator. 
 (d) General Provisions. A separate deferral election under (a), (b) or (c) above must be made by an eligible Employee for each category of a Plan Year’s compensation that is
eligible for deferral. If an eligible Employee fails to file a properly completed and executed Election Form with the Plan Administrator by the prescribed time, he will be deemed to have elected not to defer any Base Compensation, Bonus
Compensation, Performance Unit Payout or Stock Option Gains, as the case may be, for the applicable Plan Year. An election is irrevocable once received and determined by the Plan Administrator to be properly completed. Increases or decreases in the
amount or percentage a Participant elects to defer shall not be permitted during a Plan Year. Notwithstanding the preceding three sentences, to the extent necessary because of extraordinary circumstances, the Plan Administrator may grant an
extension of any election period and may permit (to the extent necessary to avoid undue hardship to an eligible Employee) the complete revocation of an election with respect to future deferrals. Any such extension or revocation shall be available
only if the Plan Administrator determines that it shall not trigger constructive receipt of income and is desirable for plan administration, and only upon such conditions as may be required by the Plan Administrator. 
 (e) Beneficiaries. A Participant designates on the Election Form a Beneficiary to receive payment in the event of his death of
amounts credited to his subaccount for such deferral. A Beneficiary is paid in accordance with the terms of a Participant's Election Form, as interpreted by the Plan Administrator in accordance with the terms of this Plan. At any time, a Participant
may change a Beneficiary designation for any or all subaccounts in a writing that is signed by the Participant and filed with the Plan Administrator prior to the Participant’s death, and that meets such other standards as the Plan Administrator
shall require from time to time. 
 3.4 Period of Deferral. An eligible Employee making a deferral election shall specify a deferral
period on his Election Form by designating a specific payout date, one or more specific payout events or both a date and one or more specific events from the choices that are made available to the eligible Employee by the Plan Administrator. From
time to time in its discretion, the Plan Administrator may condition a Participant’s right to designate one or more specific payout events on the Participant’s also specifying a payout date. Subject to the next sentence, an eligible
Employee’s elected period of deferral shall run until the earliest occurring date or event specified on his Election Form. Notwithstanding an eligible Employee’s actual election, an eligible Employee shall be deemed to have elected a
period of deferral of not less than: 
 (a) For Base Compensation, at least 6 months after the Plan Year during which the
Base Compensation would have been paid absent the deferral; 
  

 9 

 (b) For Bonus Compensation, at least 1 year after the date the Bonus Compensation would
have been paid absent the deferral; 
 (c) For Performance Unit Payouts, at least 1 year after the date the Performance Unit
Payout would have been paid absent the deferral; and 
 (d) For Stock Option Gains, at least 1 year after the date the Stock
Option Gain is credited to a Deferral Subaccount for the benefit of the Participant. 
  

 10 

 ARTICLE IV 
 INTERESTS OF PARTICIPANTS 
 4.1 Accounting for Participants’ Interests. 
 (a) Deferral Subaccounts. Each Participant shall have a separate Deferral Subaccount credited with the amount of each separate
deferral of Base Compensation, Bonus Compensation, Performance Unit Payout or Stock Option Gains made by the Participant under this Plan. A Participant’s deferral shall be credited to his Account as soon as practicable following the date when
the deferral of compensation actually occurs, as determined by the Plan Administrator. A Participant’s Account is a bookkeeping device to track the value of his deferrals (and his Employer’s liability therefor). No assets shall be reserved
or segregated in connection with any Account, and no Account shall be insured or otherwise secured. 
 (b) Account
Earnings or Losses. As of each Valuation Date, a Participant’s Account shall be credited with earnings and gains (and shall be debited for expenses and losses) determined as if the amounts credited to his Account had actually been invested
as directed by the Participant in accordance with this section (as modified by Section 4.3, if applicable). The Plan provides only for “phantom investments,” and therefore such earnings, gains, expenses and losses are hypothetical and
not actual. However, they shall be applied to measure the value of a Participant’s Account and the amount of his Employer’s liability to make deferred payments to or on behalf of the Participant. 
 (c) Investment Options. Each of a Participant’s Subaccounts (other than those containing Stock Option Gains) shall be
invested on a phantom basis in any combination of phantom investment options specified by the Participant (or following the Participant’s death, by his Beneficiary) from those offered by the Plan Administrator for this purpose from time to
time. Subsection (e) below governs the phantom investment options available for deferrals of Stock Option Gains. The Plan Administrator may discontinue any phantom investment option with respect to some or all Accounts, and it may provide for
shifting a Participant’s phantom investment from the discontinued option to a specified replacement option (unless the Participant selects another replacement option in accordance with such requirements as the Plan Administrator may apply). As
of the Effective Date, the phantom investment options are: 
 (1) Interest Bearing Account. 
 (i) Effective from and after December 29, 2006, Participant Accounts invested in this phantom option accrue a return based upon an
interest rate that is 120% of the applicable Federal long-term rate 

  

 11 

 
(pursuant to Code Section 1274(d) or any successor provision) applicable for annual compounding, as published by the U.S. Internal Revenue Service from
time to time. Returns accrue during the period since the last Valuation Date based upon 120% of the applicable Federal long-term rate (applicable for annual compounding) in effect on the first business day after such Valuation Date and are
compounded annually. An amount deferred or transferred into this option is credited with the applicable rate of return beginning with the date as of which the amount is treated as invested in this option by the Plan Administrator. 
 (ii) Effective for periods ending on December 28, 2006, Participant Accounts invested in this phantom option accrue a return based
upon the prime rate of interest announced from time to time by Citibank, N.A. (or another bank designated by the Plan Administrator from time to time). Returns accrue during the period since the last Valuation Date based on the prime rate in effect
on the first business day after such Valuation Date and are compounded annually. An amount deferred or transferred into this option is credited with the applicable rate of return beginning with the date as of which the amount is treated as invested
in this option by the Plan Administrator. 
 (iii) Amounts that are invested in the phantom option under clause
(ii) above at the end of the day on December 28, 2006 shall be transferred to the phantom investment option under clause (i) above effective as of the beginning of the day on December 29, 2006, and thereafter the phantom
investment option under clause (ii) above shall be terminated. 
 (iv) For the periods during which the phantom
investment options under clauses (i) and (ii) above are in effect, such phantom investment options are the “default” option to the extent a default option is needed in order to make certain a Participant’s Account is 100%
invested. 
 (2) PepsiCo Capital Stock Account. Participant Accounts invested in this phantom option are adjusted to
reflect an investment in PepsiCo Capital Stock. An amount deferred or transferred into this option is converted to phantom shares of PepsiCo Capital Stock of equivalent value by dividing such amount by the Fair Market Value of a share of PepsiCo
Capital Stock on the date as of which the amount is treated as invested in this option by the Plan Administrator. Only whole shares are determined. Any remaining amount (and all amounts that would be received by the Account as dividends, if
dividends were paid on phantom shares of PepsiCo Capital Stock as they are on actual shares) are credited to a dividend subaccount that is invested in the phantom option in paragraph (1) above (the Interest Bearing Account). 
  

 12 

 (i) A Participant’s interest in the PepsiCo Capital Stock Account is valued as of a
Valuation Date by multiplying the number of phantom shares credited to his Account on such date by the Fair Market Value of a share of PepsiCo Capital Stock on such date, and then adding the value of the Participant’s dividend subaccount.

 (ii) If shares of PepsiCo Capital Stock change by reason of any stock split, stock dividend, recapitalization, merger,
consolidation, spinoff, combination or exchange of shares or other any other corporate change treated as subject to this provision by the Plan Administrator, such equitable adjustment shall be made in the number of shares credited to an Account or
subaccount as the Plan Administrator may determine to be necessary or appropriate. 
 In no event will shares of PepsiCo
Capital Stock actually be purchased or held under this Plan, and no Participant shall have any rights as a shareholder of PepsiCo Capital Stock on account of an interest in this phantom option. While this Plan refers to PepsiCo Capital Stock and the
phantom PepsiCo Capital Stock Account, such references to capital stock shall mean and refer to PepsiCo common stock from and after the date when the Company changed to a common stock structure. 
 (3) SaveUp Accounts. From time to time, the Plan Administrator shall designate which of the investment options under the
Company’s Long Term Savings Plan (SaveUp) shall be available as phantom investment options under this Plan. As of the Effective Date, such available phantom options are the Equity-Index Account, Equity-Income Account, and the Security Plus
Account. Participant Accounts invested in these phantom options are adjusted to reflect an investment in the corresponding investment options under SaveUp. An amount deferred or transferred into one of these options is converted to phantom units in
the applicable SaveUp fund of equivalent value by dividing such amount by the value of a unit in such fund on the date as of which the amount is treated as invested in this option by the Plan Administrator. Thereafter, a Participant’s interest
in each such phantom option is valued as of a Valuation Date by multiplying the number of phantom units credited to his Account on such date by the value of a unit in the applicable SaveUp fund. 
 (d) Method of Allocation. With respect to any deferral election by a Participant, the Participant must use his Election Form to
allocate the deferral in 5 percent increments among the phantom investment options then offered by the Plan 

  

 13 

 
Administrator. Thereafter, a Participant may reallocate previously deferred amounts in a subaccount by properly completing and submitting a fund transfer
form provided by the Plan Administrator and specifying, in 5 percent increments, the reallocation of his Subaccount among the phantom investment options then offered by the Plan Administrator for this purpose. Any such transfer form shall be
effective as of the Valuation Date that follows its receipt by at least the number of days that the Plan Administrator specifies for this purpose from time to time. If more than one transfer form is received on a timely basis for a subaccount, the
transfer form that the Plan Administrator determines to be the most recent shall be followed. 
 (e) Investment Choices
for Stock Option Gains. Deferrals of Stock Option gains initially may be invested only in the PepsiCo Capital Stock Account. In the case of a Participant who has attained his Retirement or, effective as of September 12, 2008, upon a
Participant’s death or Disability, the Plan Administrator may make available some or all of the other phantom investment options described in subsection (c) above. In this case, any election to reallocate the balance in the
Participant’s applicable Deferral Subaccount shall be governed by the foregoing provisions of this section. 
 4.2 Vesting of a
Participant’s Account. Except as provided in Section 4.3, a Participant’s interest in the value of his Account shall at all times be 100 percent vested, which means that it will not forfeit as a result of his Termination of
Employment. 
 4.3 Risk of Forfeiture Subaccounts. A Participant may elect to defer Base Compensation, Bonus Compensation or
Performance Unit Payouts to a Risk of Forfeiture Subaccount only if: (i) he had, as of June 1, 1994, a deferred compensation subaccount maintained under a forfeiture agreement (as defined below), and (ii) he has not yet attained
eligibility for Retirement when the first amount would be deferred pursuant to his current risk-of-forfeiture election. A “forfeiture agreement” is an agreement with the Company, any Employer, or one of their predecessors providing that
the subaccount would be forfeited if the employee terminated employment voluntarily or on account of misconduct prior to Retirement. A Participant who meets these requirements may elect under Article III to defer some or all of his eligible
compensation to a Risk of Forfeiture Subaccount subject to the following terms. (The date when a Participant attains eligibility for Retirement is specified in the definition of “Retirement.”) 
 (a) A Risk of Forfeiture Subaccount will be terminated and forfeited in the event that the Participant has a Termination of Employment
that is voluntary or because of his misconduct prior to the earliest of: 
 (1) The end of the deferral period designated in
his Election Form for such deferral (or if later, the end of such minimum period as may be required under Section 3.4); 
  

 14 

 (2) The date the Participant attains eligibility for Retirement; or 
 (3) The date indicated on his Election Form as the end of the risk of forfeiture condition (but not before completing the minimum risk
of forfeiture period required by the Plan Administrator from time to time). 
 (b) A Risk of Forfeiture Subaccount shall
become fully vested (and shall cease to be a Risk of Forfeiture Subaccount) when: 
 (1) The Participant reaches any of the
dates in subsection (a) above while still employed by the Company or one of its affiliates, or 
 (2) On the date the
Participant terminates involuntarily from his Employer (including death and termination for Disability), provided that such termination is not for his misconduct. 
 (c) No amounts credited to a Risk of Forfeiture Subaccount may be transferred to a subaccount of the Participant that is not a Risk of Forfeiture Subaccount. No amounts credited to a subaccount
of the Participant that is not a Risk of Forfeiture Subaccount may be transferred to a Risk of Forfeiture Subaccount. 
 (d)
A Participant may initially direct and then reallocate his Risk of Forfeiture Subaccount to any of the phantom investment options under the Plan that are currently available for such direction or reallocation, whichever applies. During the period
before a Risk of Forfeiture Subaccount ceases to be a Risk of Forfeiture Subaccount, the return under any such phantom investment option shall be supplemented as follows. 
 (1) In the case of the PepsiCo Capital Stock Account, the Participant’s dividend subaccount thereunder shall be credited with an additional year-end dividend amount equal to 2 percent of the
average closing price of PepsiCo Capital Stock for the 30 business days preceding the end of the Company’s fiscal year multiplied by the number of phantom shares of PepsiCo Capital Stock credited to the Participant’s Account as of
the end of the year. If the Participant’s subaccount was not a Risk of Forfeiture Subaccount for the entire year (or if the Participant reallocated amounts to the PepsiCo Capital Stock Account after the beginning of the year), this 2 percent
additional dividend will be prorated down appropriately, as determined by the Plan Administrator. In addition, the Participant’s dividend subaccount shall earn interest at a rate that is 2 percent above the rate ordinarily applicable under the
Interest Bearing Account for the period that it is contained within a Risk of Forfeiture Subaccount. 
  

 15 

 (2) In the case of any other available phantom investment option, the return on each
such option shall be supplemented with an additional 2% annual return for the period that it is held within a Risk of Forfeiture Subaccount (but prorated for periods of such investment of less than a year). 
 4.4 Distribution of a Participant’s Account. A Participant's Account shall be distributed in cash as provided in this Section 4.4.

 (a) Scheduled Payout Date. With respect to a specific deferral, a Participant’s “Scheduled Payout
Date” shall be the earlier of: 
 (1) The date selected by the Participant for such deferral in accordance with
Section 3.4, or 
 (2) The first day of the calendar quarter that follows the earliest to occur event selected by the
Participant for such deferral in accordance with Section 3.4. 
 Notwithstanding the prior sentence, in the case of a
deferral of Stock Option Gains, a Participant’s Scheduled Payout Date for such deferral shall be first day of the calendar quarter following his Termination of Employment other than for death, Disability or Retirement (or 12 months after the
date of the deferral, if that would be later than such first day). With respect to any deferral, if a Participant selects only a payout event that might not occur (such as Retirement) and then terminates employment before the occurrence of the
event, the Plan Administrator may adopt rules to specify the Scheduled Payout Date that shall apply to the deferral, notwithstanding the terms of the Participant’s election. Unless an election has been made in accordance with subsection
(b) below, the Participant’s subaccount containing the deferral shall be distributed to the Participant in a single lump sum as soon as practicable following the Scheduled Payout Date. 
 (b) Payment Election. A Participant may delay receipt of a subaccount beyond its Scheduled Payout Date, or elect to receive
installments rather than a lump sum, by making a payment election under this subsection. A payment election must be made by the calendar year before the year containing the Scheduled Payout Date (or if earlier, at least 6 months before the Scheduled
Payout Date). Any payment election to receive a lump sum at a later time must specify a revised payout date that is at least 12 months after the Scheduled Payout Date. Any payment election to receive installment payments in lieu of a lump sum shall
specify the amount (or method for determining) each installment and a set of revised payout dates, the last of which must be at least 12 months after the Scheduled Payout Date. With respect to any subaccount, only one election may be made under this
subsection. Beneficiaries are not permitted to make elections under this subsection. In addition, an election under this subsection may not delay the distribution of a deferral of Stock Option Gains made by a Participant whose employment has
terminated other than for death, Disability or Retirement. Actual payments shall be made as soon as practicable following a revised payout date. 
  

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 (c) Valuation. In determining the amount of any individual distribution pursuant
to subsection (a) or (b) above, the Participant's subaccount shall continue to be credited with earnings and gains (and debited for expenses and losses) under Sections 4.1 and 4.3 until the Valuation Date preceding the Scheduled Payout
Date or revised payout date for such distribution (whichever is applicable). In determining the value of a Participant’s remaining subaccount following an installment distribution, such installment distribution shall reduce the value of the
Participant’s subaccount as of the close of the Valuation Date preceding the revised payout date for such installment. 
 (d) Limitations. The following limitations apply to distributions from the Plan. 
 (1) Installments may
only be made quarterly, semi-annually or annually, for a period of no more than 20 years, and not later than the Participant’s 80th birthday (or what would have been his 80th birthday, if the Participant dies earlier). 
 (2) If a Participant has elected a Scheduled Payout Date that would be after his 80th birthday, the Participant shall be deemed to have
elected his 80th birthday as his Scheduled Payout Date. 
 (3) If a Participant has elected to defer income, which would
qualify as performance-based compensation under Code section 162(m), into a Risk of Forfeiture Subaccount, then such subaccount may not be paid out at any time while the Participant is a covered employee under Code section 162(m)(3), to the extent
the Plan Administrator determines it would result in compensation being paid to the Participant in such year that would not be deductible under Code section 162(m). The payout of any such amount shall be deferred until a year when the Participant is
no longer a section 162(m) covered employee. The Plan Administrator may waive the foregoing provisions of this paragraph to the extent necessary to avoid an undue hardship to the Participant. This paragraph shall apply notwithstanding any provision
of the Plan to the contrary. 
 (e) Upon a Participant’s death, his Beneficiary shall be paid each subaccount still
standing to the Participant’s credit under the Plan in accordance with the terms of the Participant’s payout election for such subaccount under Section 3.4, or his payment election under subsection (b) above, whichever is
applicable. 
  

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 4.5 Acceleration of Payment in Certain Cases. Except as expressly provided in this
Section 4.5, no payments shall be made under this Plan prior to the date (or dates) applicable under Section 4.4. 
 (a) A Participant who is suffering severe financial hardship resulting from extraordinary and unforeseeable events beyond the control of the Participant (and who does not have other funds reasonably available that could satisfy the severe
financial hardship) may file a written request with the Plan Administrator for accelerated payment of all or a portion of the amount credited to his Account. A committee composed of representatives from the Company’s Compensation Department,
Tax Department and Law Department, or such other parties as the Plan Administrator may specify from time to time, shall have sole discretion to determine whether a Participant satisfies the requirements for a hardship request and the amount that may
be distributed (which shall not exceed the amount reasonably necessary to alleviate the Participant’s hardship). 
 (b)
After a Participant has filed a written request pursuant to this section, along with all supporting material, the committee shall grant or deny the request within 60 days (or such other number of days as is customarily applied from time to time)
unless special circumstances warrant additional time. 
 (c) The Plan Administrator may adjust the standards for hardship
withdrawals from time to time to the extent it determines such adjustment to be necessary to avoid triggering constructive receipt of income under the Plan. 
 (d) A Beneficiary may also request a hardship distribution upon satisfaction of the foregoing requirements and subject to the foregoing limitations. 
 (e) When determined to be necessary in the interest of sound plan administration, the Plan Administrator may accelerate the payment of a
class of Participants’ subaccounts hereunder. This shall only occur to the extent the Plan Administrator determines that such acceleration will not trigger constructive receipt of subaccounts that are not paid out. 
 (f) When some or all of a Participant’s subaccount is distributed pursuant to this section, the distribution and the subaccount
shall be valued as provided by the Plan Administrator, using rules patterned after those in Section 4.4(c) above, on the Valuation Date coincident with or immediately preceding the date on which the decision to make accelerated payment is made
(or if later, the date on which it is deemed to be effective). 
  

 18 

 ARTICLE V 
 PLAN ADMINISTRATOR 
 5.1 Plan Administrator. The Plan Administrator is the Compensation
Committee of the Company’s Board of Directors (the “Committee”) or its delegate or delegates, who shall act within the scope of their delegation pursuant to such operating guidelines as the Committee shall establish from time to time.
The Plan Administrator is responsible for the administration of the Plan. 
 5.2 Action. Action by the Committee may be taken in
accordance with procedures that the Committee adopts from time to time or that the Company’s Law Department determines are legally permissible. 
 5.3 Rights and Duties. The Plan Administrator shall administer and manage the Plan and shall have all powers necessary to accomplish that purpose, including (but not limited to) the following: 
 (a) To exercise its discretionary authority to construe, interpret, and administer this Plan; 
 (b) To exercise its discretionary authority to make all decisions regarding eligibility, participation and deferrals, to make allocations
and determinations required by this Plan, and to maintain records regarding Participants’ Accounts; 
 (c) To compute
and certify to the Employer the amount and kinds of payments to Participants or their Beneficiaries, and to determine the time and manner in which such payments are to be paid; 
 (d) To authorize all disbursements by the Employer pursuant to this Plan; 
 (e) To maintain (or cause to be maintained) all the necessary records for administration of this Plan; 
 (f) To
make and publish such rules for the regulation of this Plan as are not inconsistent with the terms hereof; 
 (g) To delegate
to other individuals or entities from time to time the performance of any of its duties or responsibilities hereunder; 
 (h)
To establish or to change the phantom investment options or arrangements under Article IV; and 
  

 19 

 (i) To hire agents, accountants, actuaries, consultants and legal counsel to assist in
operating and administering the Plan. 
 (j) Notwithstanding any other provision of this Plan except Section 8.5
(relating to compliance with Section 409A), the Plan Administrator may take any action the Plan Administrator deems is necessary to assure compliance with any policy of the Company respecting insider trading as may be in effect from time to
time. Such actions may include altering the effective date of phantom investment option transfers or the distribution date of Deferral Subaccounts. Any such actions shall alter the normal operation of the Plan to the minimum extent necessary.

 The Plan Administrator has the exclusive and discretionary authority to construe and to interpret the Plan, to decide all questions of
eligibility for benefits, to determine the amount and manner of payment of such benefits and to make any determinations that are contemplated by (or permissible under) the terms of this Plan, and its decisions on such matters will be final and
conclusive on all parties. Any such decision or determination shall be made in the absolute and unrestricted discretion of the Plan Administrator, even if (A) such discretion is not expressly granted by the Plan provisions in question, or
(B) a determination is not expressly called for by the Plan provisions in question, and even though other Plan provisions expressly grant discretion or call for a determination. In the event of a review by a court, arbitrator or any other
tribunal, any exercise of the Plan Administrator’s discretionary authority shall not be disturbed unless it is clearly shown to be arbitrary and capricious. 
 5.4 Compensation, Indemnity and Liability. The Plan Administrator will serve without bond and without compensation for services hereunder. All expenses of the Plan and the Plan Administrator will be paid by the
Employer. To the extent deemed appropriate by the Plan Administrator, any such expense may be charged against specific Participant Accounts, thereby reducing the obligation of the Employer. No member of the Committee, and no individual acting as the
delegate of the Committee, shall be liable for any act or omission of any other member or individual, nor for any act or omission on his own part, excepting his own willful misconduct. The Employer will indemnify and hold harmless each member of the
Committee and any individual or individuals acting as the delegate of the Committee against any and all expenses and liabilities, including reasonable legal fees and expenses, arising out of his membership on the Committee (or his serving as the
delegate of the Committee), excepting only expenses and liabilities arising out of his own willful misconduct. 
 5.5 Taxes. If the
whole or any part of any Participant’s Account becomes liable for the payment of any estate, inheritance, income, or other tax which the Employer may be required to pay or withhold, the Employer will have the full power and authority to
withhold and pay such tax out of any moneys or other property in its hand for the account of the Participant. To the extent practicable, the Employer will provide the Participant notice of such withholding. Prior to making any payment, the Employer
may require such releases or other documents from any lawful taxing authority as it shall deem necessary. 
  

 20 

 5.6 Section 16 Compliance: 
 (a) General. To the maximum extent possible, this Plan is intended to be a formula plan for purposes of Section 16 of the
Securities Exchange Act of 1934, as amended, (the “Act”). Accordingly, in the case of a deferral or other action under the Plan that constitutes a transaction that could be covered by Rule 16b-3(d) or (e), if it were approved by the
Company’s Board of Directors or Compensation Committee (“Board Approval”), it is intended that the Plan shall be administered by delegates of the Compensation Committee, in the case of a Participant who is subject to Section 16
of the Act, in a manner that will permit the Board Approval of the Plan to avoid any additional Board Approval of specific transactions to the maximum possible extent. 
 (b) Approval of Distributions: From and after January 1, 2005, this Plan remains subject to the Company’s policies requiring compliance with Section 16 of the Act.
Accordingly, this Subsection shall govern the distribution of a deferral that (i) is wholly or partly invested in the phantom PepsiCo Capital Stock Account at the time the deferral would be valued to determine the amount of cash to be
distributed to a Participant, (ii) either was the subject of a re-deferral election or was not covered by an agreement, made at the time of the Participant’s original deferral election, that any investments in the phantom PepsiCo Capital
Stock Account would, once made, remain in that account until distribution of the deferral, (iii) is made to a Participant who is subject to Section 16 of the Act at the time the interest in the phantom PepsiCo Capital Stock Account would
be liquidated in connection with the distribution, and (iv) if paid at the time the distribution would be made without regard to this subsection, could result in a violation of Section 16 of the Act because there is an opposite way
transaction that would be matched with the liquidation of the Participant’s interest in the PepsiCo Capital Stock Account (either as a “discretionary transaction,” within the meaning of Rule 16b-3(b)(1), or as a regular transaction,
as applicable) (a “Covered Distribution”). In the case of a Covered Distribution, if the liquidation of the Participant’s interest in the phantom PepsiCo Capital Stock Account in connection with the distribution has not received Board
Approval by the time the distribution would be made if it were not a Covered Distribution, or if it is a discretionary transaction, then provided that there is no material modification for Section 409A purposes, the actual distribution to the
Participant shall be delayed only until the earlier of: 
 (1) In the case of a transaction that is not a discretionary
transaction, Board Approval of the liquidation of the Participant’s interest in the phantom PepsiCo Capital Stock Account in connection with the distribution, and 
  

 21 

 (2) The date the distribution would no longer violate Section 16 of the Act, e.g.,
when the Participant is no longer subject to Section 16 of the Act, when the Deferral Subaccount related to the distribution is no longer invested in the phantom PepsiCo Capital Stock Account or when the time between the liquidation and an
opposite way transaction is sufficient. 
  

 22 

 ARTICLE VI 
 CLAIMS PROCEDURE 
 6.1 Claims for Benefits. If a Participant, Beneficiary or other person
(hereafter, “Claimant”) does not receive timely payment of any benefits which he believes are due and payable under the Plan, he may make a claim for benefits to the Plan Administrator. The claim for benefits must be in writing and
addressed to the Plan Administrator or to the Company. If the claim for benefits is denied, the Plan Administrator will notify the Claimant in writing within 90 days after the Plan Administrator initially received the benefit claim. However, if
special circumstances require an extension of time for processing the claim, the Plan Administrator will furnish notice of the extension to the Claimant prior to the termination of the initial 90-day period and such extension may not exceed one
additional, consecutive 90-day period. Any notice of a denial of benefits should advise the Claimant of the basis for the denial, any additional material or information necessary for the Claimant to perfect his claim, and the steps which the
Claimant must take to have his claim for benefits reviewed. 
 6.2 Appeals. Each Claimant whose claim for benefits has been denied may
file a written request for a review of his claim by the Plan Administrator. The request for review must be filed by the Claimant within 60 days after he received the written notice denying his claim. The decision of the Plan Administrator will be
made within 60 days after receipt of a request for review and will be communicated in writing to the Claimant. Such written notice shall set forth the basis for the Plan Administrator’s decision. If there are special circumstances which require
an extension of time for completing the review, the Plan Administrator’s decision may be rendered not later than 120 days after receipt of a request for review. 
 6.3 Special Procedures for Disability Determinations: Notwithstanding Sections 6.1 and 6.2, for claims and appeals relating to Disability benefits that are filed from and after January 1 2002, such claim
or appeal shall be processed pursuant to the applicable provisions of Department of Labor Regulation Section 2560.503-1 relating to Disability benefits, including Sections 2560.503-1(d), 2560.503-1(f)(3), 2560.503-1(h)(4) and 2560.503-1(i)(3).

  

 23 

 ARTICLE VII 
 AMENDMENT AND TERMINATION 
 7.1 Amendments. The Compensation Committee of the Board of
Directors of the Company has the right in its sole discretion to amend this Plan in whole or in part at any time and in any manner; provided, however, that no such amendment shall reduce the amount credited to the Account of any Participant as of
the date such amendment is adopted. Any amendment shall be in writing and adopted by the Committee or an officer of the Company who is authorized by the Committee for this purpose. All Participants shall be bound by such amendment. 
 7.2 Termination of Plan. The Company expects to continue this Plan, but does not obligate itself to do so. The Company, acting by the Compensation
Committee of its Board of Directors, reserves the right to discontinue and terminate the Plan at any time, in whole or in part, for any reason (including a change, or an impending change, in the tax laws of the United States or any State).
Termination of the Plan will be binding on all Participants (and a partial termination shall be binding upon all affected Participants), but in no event may such termination reduce the amounts credited at that time to any Participant’s Account.
If this Plan is terminated (in whole or in part), amounts theretofore credited to affected Participants’ Accounts may either be paid in a lump sum immediately, or distributed in some other manner consistent with this Plan, as determined by the
Plan Administrator in its sole discretion. 
  

 24 

 ARTICLE VIII 
 MISCELLANEOUS 
 8.1 Limitation on Participant’s Rights. Participation in this Plan does
not give any Participant the right to be retained in the Employer’s or Company’s employ (or any right or interest in this Plan or any assets of the Company or Employer other than as herein provided). The Company and Employer reserve the
right to terminate the employment of any Participant without any liability for any claim against the Company or Employer under this Plan, except for a claim for payment of deferrals as provided herein. 
 8.2 Unfunded Obligation of Individual Employer. The benefits provided by this Plan are unfunded. All amounts payable under this Plan to
Participants are paid from the general assets of the Participant’s individual Employer. Nothing contained in this Plan requires the Company or Employer to set aside or hold in trust any amounts or assets for the purpose of paying benefits to
Participants. Neither a Participant, Beneficiary, nor any other person shall have any property interest, legal or equitable, in any specific Employer asset. This Plan creates only a contractual obligation on the part of a Participant’s
individual Employer, and the Participant has the status of a general unsecured creditor of this Employer with respect to amounts of compensation deferred hereunder. Such a Participant shall not have any preference or priority over, the rights of any
other unsecured general creditor of the Employer. No other Employer guarantees or shares such obligation, and no other Employer shall have any liability to the Participant or his Beneficiary. In the event, a Participant transfers from the employment
of one Employer to another, the former Employer shall transfer the liability for deferrals made while the Participant was employed by that Employer to the new Employer (and the books of both Employers shall be adjusted appropriately). 
 8.3 Other Plans. This Plan shall not affect the right of any eligible Employee or Participant to participate in and receive benefits under and in
accordance with the provisions of any other employee benefit plans which are now or hereafter maintained by any Employer, unless the terms of such other employee benefit plan or plans specifically provide otherwise or it would cause such other plan
to violate a requirement for tax favored treatment. 
 8.4 Receipt or Release. Any payment to a Participant in accordance with the
provisions of this Plan shall, to the extent thereof, be in full satisfaction of all claims against the Plan Administrator, the Employer and the Company, and the Plan Administrator may require such Participant, as a condition precedent to such
payment, to execute a receipt and release to such effect. 
 8.5 Governing Law and Compliance. This Plan shall be construed,
administered, and governed in all respects in accordance with applicable federal law and, to the extent not preempted by federal law, in accordance with the laws of the State of North 

  

 25 

 
Carolina. If any provisions of this instrument shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions
hereof shall continue to be fully effective. In addition, at all times during each Plan Year, this Plan shall be operated to preserve the status of deferrals under this Pre-409A Program as being exempt from Section 409A, i.e., to preserve the
grandfathered status of this Pre-409A Program. In all cases, the provisions of the prior sentence shall apply notwithstanding any contrary provision of the Plan. 
 8.6 Adoption of Plan by Related Employers. The Plan Administrator may select as an Employer any division of the Company, as well as any corporation related to the Company by stock ownership, and permit or cause
such division or corporation to adopt the Plan. The selection by the Plan Administrator shall govern the effective date of the adoption of the Plan by such related Employer. The requirements for Plan adoption are entirely within the discretion of
the Plan Administrator and, in any case where the status of an entity as an Employer is at issue, the determination of the Plan Administrator shall be absolutely conclusive. 
 8.7 Gender, Tense, Headings and Examples. In this Plan, whenever the context so indicates, the singular or plural number and the masculine, feminine, or neuter gender shall be deemed to
include the other. Headings and subheadings in this Plan are inserted for convenience of reference only and are not considered in the construction of the provisions hereof. Whenever an example is provided or the text uses the term
“including” followed by a specific item or items, or there is a passage having a similar effect, such passage of the Plan shall be construed as if the phrase “without limitation” followed such example or term (or otherwise
applied to such passage in a manner that avoids limitation on its breadth of application). 
 8.8 Successors and Assigns; Nonalienation of
Benefits. This Plan inures to the benefit of and is binding upon the parties hereto and their successors, heirs and assigns; provided, however, that the amounts credited to the Account of a Participant are not (except as provided in
Section 5.5) subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, and any attempt to anticipate, alienate, sell,
transfer, assign, pledge, encumber, charge or otherwise dispose of any right to any benefits payable hereunder, including, without limitation, any assignment or alienation in connection with a separation, divorce, child support or similar
arrangement, will be null and void and not binding on the Plan or the Company or Employer. Notwithstanding the foregoing, the Plan Administrator reserves the right to make payments in accordance with a divorce decree, judgment or other court order
as and when cash payments are made in accordance with the terms of this Plan from the subaccount of a Participant. Any such payment shall be charged against and reduce the Participant’s Account. 
 8.9 Facility of Payment. Whenever, in the Plan Administrator’s opinion, a Participant or Beneficiary entitled to receive any payment
hereunder is under a legal 

  

 26 

 
disability or is incapacitated in any way so as to be unable to manage his financial affairs, the Plan Administrator may direct the Employer to make payments
to such person or to the legal representative of such person for his benefit, or to apply the payment for the benefit of such person in such manner as the Plan Administrator considers advisable. Any payment in accordance with the provisions of this
section shall be a complete discharge of any liability for the making of such payment to the Participant or Beneficiary under the Plan. 
 8.10 Separate Plans. This Plan document encompasses three separate plans of deferred compensation for all legal purposes (including federal tax law, state tax law and, effective January 1, 1999, ERISA) as set forth in
subsections (a), (b) and (c) below. 
 (a) The portion of the Plan that provides for deferrals of Base Compensation
and Bonus Compensation (which shall be known as the “PepsiCo Executive Income Deferral Plan”). 
 (b) The portion
of the Plan that provides for deferrals of Performance Unit Payouts (which shall be known as the “PepsiCo Performance Unit Deferral Plan”). 
 (c) The portion of the Plan that provides for deferrals of Stock Option Gains (which shall be known as the “PepsiCo Option Gains Deferral Plan”). 
 Together, these three separate plans of deferred compensation are referred to as the PepsiCo Executive Income Deferral Program. 
  

 27 

 PEPSICO EXECUTIVE INCOME DEFERRAL PROGRAM 
 APPENDIX 
 The following Appendix articles modify or supplement the general
terms of the Plan as it applies to certain executives. 
 Except as specifically modified in the Appendix, the foregoing provisions of the
Plan shall fully apply. In the event of a conflict between this Appendix and the foregoing provisions of the Plan, the Appendix shall govern with respect to the conflict. 
  

 1 

 ARTICLE A 
 SPINOFF OF TRICON 
 This Article sets forth provisions that apply in connection with the
Company’s spinoff of Tricon Global Restaurants, Inc. 
 A.1 Definitions. When used in this Article, the following underlined
terms shall have the meanings set forth below. Except as otherwise provided in this Article, all terms that are defined in Article II of the Plan shall have the meaning assigned to them by Article II. 
 (a) Distribution Date: The “Distribution Date” as that term is defined in the 1997 Separation Agreement between PepsiCo,
Inc. and Tricon. 
 (b) PepsiCo Account Holder: A Participant who has an interest in the PepsiCo Capital Stock Account
on the Reference Date. 
 (c) Reference Date: The date specified by the Plan Administrator for purposes of determining
who shall be credited with an interest in the Tricon Common Stock Account. 
 (d) Transferred Individual: A
“Transferred Individual” as that term is defined in the 1997 Employee Programs Agreement between PepsiCo, Inc. and Tricon. 
 (e) Transition Individuals: A “Transition Individual” as that term is defined in the 1997 Employee Programs Agreement between PepsiCo, Inc. and Tricon. 
 (f) Tricon: Tricon Global Restaurants, Inc., a North Carolina Corporation. 
 (g) Tricon Account Holder: A PepsiCo Account Holder whose interest in the PepsiCo Capital Stock Account on the Reference Date
includes at least 10 phantom shares of PepsiCo Capital Stock. 
 (h) Tricon EID: Tricon Executive Income Deferral
Program. 
 (i) Tricon Group: Tricon and its subsidiaries and affiliates, as determined by the Plan Administrator.

 A.2 Transfer of Benefits and Liabilities. Effective as of the end of the day on the Distribution Date, all interests in the Plan of
(and Plan liabilities with respect to) 

  

 2 

 
nonterminated Transferred Individuals shall be transferred to the Tricon EID. This transfer shall constitute a complete payout of these individuals’
Accounts for purposes of determining who is a Participant or Beneficiary under the Plan. For this purpose, a Transferred Individual shall be considered “nonterminated” if he is actively employed by (or on a leave of absence from and
expected to return to) the Tricon Group. Following the Distribution Date, Tricon shall succeed to all of PepsiCo’s authority to affect and govern Plan interests transferred in accordance with this section (including through interpretation, plan
amendment or plan termination). 
 A.3 Cessation of Employer Status. Effective as of the end of the day on the Distribution Date, any
Employer who is a member of the Tricon Group shall no longer qualify as Employers hereunder. Any individual whose Account is transferred in accordance with Section A.2 shall not thereafter be able to defer any compensation (including Stock Option
Gains) under this Plan, unless he returns to employment with an Employer following the Distribution Date (and is an eligible Employee at the time of the deferral). 
 A.4 Employment Transfers by Transition Individuals. If a Participant is transferred to the Tricon Group under circumstances that cause him to be a Transition Individual, such transfer to the Tricon Group shall
not be considered a Termination of Employment or other event that could trigger distribution of the Participant’s interest in the Plan. In this case, the Participant’s interest in the Plan (and all Plan liabilities with respect to the
Participant) shall be retained by the Plan. For purposes of determining the distribution of such Participant’s interest in the Plan, the Participant’s Termination of Employment shall not be deemed to occur before his termination of
employment with the Tricon Group. 
 A.5 Special Tricon Stock Investment Option. As of the Distribution Date, the Plan Administrator
shall establish a temporary phantom investment option under the Plan, the Tricon Common Stock Account, and each Tricon Account Holder shall be credited with an interest in such account. 
 (a) Establishing the Account Holder’s Interest. The amount of a Tricon Account Holder’s interest is determined by
dividing by 10 the number of phantom shares of PepsiCo Capital Stock standing to his credit in the PepsiCo Capital Stock Account on the Reference Date. The portion of the resulting quotient that is an integer shall be the number of phantom shares of
Tricon Common Stock that is credited to the Participant’s Tricon Common Stock Account as of the Distribution Date. A Tricon Stock Holder’s interest in the Tricon Common Stock Account shall also include a dividend subaccount. The initial
balance in the dividend subaccount shall be zero, but it shall thereafter be credited with all amounts that would be received for the Participant by the Tricon Common Stock Account as dividends, if dividends were paid on phantom shares of Tricon
Common Stock as they are on actual shares. All amounts credited to this dividend subaccount shall be invested in the phantom option described in Section 4.1(c)(1) (the Interest Bearing Account). 
  

 3 

 (b) Valuation and Adjustment: A Participant’s interest in the Tricon Common
Stock Account is valued as of a Valuation Date by multiplying the number of phantom shares credited to his Account on such date by the fair market value of a share of Tricon Common Stock on such date, and then adding the value of the
Participant’s dividend subaccount. 
 (1) As of any date, the fair market value of Tricon Common Stock is determined
for purposes of this Article using procedures comparable to those used in determining the Fair Market Value of PepsiCo Capital Stock, but with such modifications as the Plan Administrator may apply from time to time. 
 (2) If shares of Tricon Common Stock change by reason of any stock split, stock dividend, recapitalization, merger, consolidation,
spinoff, combination or exchange of shares or other any other corporate change treated as subject to this provision by the Plan Administrator, such equitable adjustment shall be made in the number of shares credited to an Account or subaccount as
the Plan Administrator may determine to be necessary or appropriate 
 In no event will shares of Tricon Common Stock
actually be purchased or held under this Plan, and no Participant shall have any rights as a shareholder of Tricon Common Stock on account of an interest in the Tricon Common Stock Account. 
 (c) Investment Reallocations. In accordance with Section 4.1(e), a Tricon Account Holder may reallocate amounts from his
Subaccounts in the Tricon Common Stock Account to other phantom investment options under the Plan that are available for this purpose. No Participant may reallocate amounts into the Tricon Common Stock Account. 
 (d) Termination of the Tricon Common Stock Account. Effective as of the end of the day on December 31, 1999 (or such later
date as the Plan Administrator shall specify), the Tricon Common Stock Account shall cease to be available under the Plan. Any amount under the Plan still standing to the credit of a Participant on such date shall automatically be reallocated to the
phantom investment option described in Section 4.1(c)(1) (the Interest Bearing Account) unless the Participant selects a different replacement option in accordance with such requirements as the Plan Administrator may apply. 
 A.6 PepsiCo Account Holders with Less Than 10 Shares: The interest in the PepsiCo Capital Stock Account of any PepsiCo Account Holder who does not
qualify to be a Tricon Account Holder shall be adjusted as of the Distribution Date. Pursuant to this adjustment, the value of his dividend subaccount under the PepsiCo Capital Stock Account shall be increased by the product of (a) and
(b) below: 
 (a) The number of phantom shares of PepsiCo stock credited to the Participant’s Account under the
PepsiCo Capital Stock Account divided by 10. 
  

 4 

 (b) The fair market value of a share of Tricon Common Stock on the Distribution Date.

  

 5 

 ARTICLE B 
 INITIAL PUBLIC OFFERING OF PBG 
 This Article sets forth provisions that apply in connection with
PBG’s initial public offering. 
 B.1 Definitions. When used in this Article, the following underlined terms shall have the
meanings set forth below. Except as otherwise provided in this Article, all terms that are defined in Article II of the Plan shall have the meaning assigned to them by Article II. 
 (a) Offering Date: The “Offering Date” as that term is defined in the Separation Agreement between PepsiCo, Inc. and
PBG. 
 (b) PBG: Pepsi Bottling Group, Inc. 
 (c) PBG EID: PBG Executive Income Deferral Program. 
 (d)
PBG Group: PBG and its subsidiaries and affiliates, as determined by the Plan Administrator. 
 (e) Transferred
Individual: A “Transferred Individual” as that term is defined in the Employee Programs Agreement between PepsiCo, Inc. and PBG. 
 (f) Transition Individuals: A “Transition Individual” as that term is defined in the Employee Programs Agreement between PepsiCo, Inc. and PBG. 
 B.2 Transfer of Benefits and Liabilities. Effective as of the end of the day on the Offering Date, all interests in the Plan of (and Plan liabilities with respect to) nonterminated
Transferred Individuals shall be transferred to the PBG EID. This transfer shall constitute a complete payout of these individuals’ Accounts for purposes of determining who is a Participant or Beneficiary under the Plan. For this purpose, a
Transferred Individual shall be considered “nonterminated” if he is actively employed by (or on a leave of absence from and expected to return to) the PBG Group, as of the end of the day on the Offering Date. 
 B.3 Cessation of Employer Status. Effective as of the end of the day on the Offering Date, any Employer who is a member of the PBG Group shall no
longer qualify as an Employer hereunder. Any individual whose Account is transferred in accordance with Section B.2 shall not thereafter be able to defer any compensation (including Stock Option Gains) under this Plan, unless he returns to
employment with an Employer following the Offering Date (and is an eligible Employee at the time of the deferral). Following the Offering Date, PBG shall succeed to all of PepsiCo’s authority to affect and govern Plan interests transferred in
accordance with this section (including through interpretation, plan amendment or plan termination). 
  

 6 

 B.4 Employment Transfers by Transition Individuals. 
 (a) Transfers to PBG. If a Participant is transferred to the PBG Group under circumstances that cause him to be a Transition
Individual, such transfer to the PBG Group shall not be considered a Termination of Employment or other event that could trigger distribution of the Participant’s interest in the Plan. In this case, the Participant’s interest in the Plan
(and all Plan liabilities with respect to the Participant) may be retained by the Plan, or they may be transferred to the PBG EID, as determined by the Plan Administrator in its discretion. If a transfer of the Participant’s interest occurs,
this transfer shall constitute a complete payout of the Participant’s Account for purposes of determining who is a Participant or Beneficiary under the Plan. If a transfer does not occur, for purposes of determining the distribution of such
Participant’s interest in the Plan, the Participant’s Termination of Employment shall not be deemed to occur before his termination of employment with the PBG Group. 
 (b) Transfers from PBG. If an individual is transferred by the PBG Group to an Employer under circumstances that cause him to be a Transition Individual and such individual’s interest
in the PBG EID is transferred to this Plan, such Individual shall become a Participant in this Plan. In connection with any such transfer of the individual’s interest, the individual’s phantom investment in PBG capital stock under the PBG
EID shall be carried over and replicated hereunder until December 31, 2000 (or such other date as may be specified by the Plan Administrator). Any other phantom investment of the individual under the PBG EID may be carried over and replicated
hereunder, or it may be converted to a phantom investment available under the Plan (depending upon the procedures then applied by the Plan Administrator). 
 B.5 Special PBG Stock Investment Option. To the extent required by Section B.4 (and as otherwise made available by the Plan Administrator from time to time), the Plan Administrator shall establish a temporary
phantom investment option under the Plan, the PBG Capital Stock Account. 
 (a) General Principles. The PBG Capital
Stock Account shall be administered under rules that are similar to those applicable to the PepsiCo Capital Stock Account, but with such modifications as the Plan Administrator may apply from time to time. 
 (b) Valuation and Adjustment: A Participant’s interest in the PBG Capital Stock Account is valued as of a Valuation Date by
multiplying the number of phantom shares credited to his Account on such date by the fair market value of a 

  

 7 

 
share of PBG Capital Stock on such date, and then adding the value of the Participant’s dividend subaccount. If shares of PBG Capital Stock change by
reason of any stock split, stock dividend, recapitalization, merger, consolidation, spinoff, combination or exchange of shares or other any other corporate change treated as subject to this provision by the Plan Administrator, such equitable
adjustment shall be made in the number of shares credited to an Account or subaccount as the Plan Administrator may determine to be necessary or appropriate. In no event will shares of PBG Capital Stock actually be purchased or held under this Plan,
and no Participant shall have any rights as a shareholder of PBG Capital Stock on account of an interest in the PBG Capital Stock Account. 
 (c) Investment Reallocations. In accordance with Section 4.1(e), a PBG Account Holder may reallocate amounts from his Subaccounts in the PBG Capital Stock Account to other phantom investment options under
the Plan that are available for this purpose. Except as expressly authorized by the Plan Administrator, no Participant may reallocate amounts into the PBG Capital Stock Account. 
 (d) Termination of the PBG Capital Stock Account. Effective as of the end of the day on December 31, 2000 (or such later date
as the Plan Administrator shall specify), the PBG Capital Stock Account shall cease to be available under the Plan. Any amount under the Plan still standing to the credit of a Participant on such date shall automatically be reallocated to the
phantom investment option described in Section 4.1(c)(1) (the Interest Bearing Account) unless the Participant selects a different replacement option in accordance with such requirements as the Plan Administrator may apply. 
  

 8

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