Document:

EX-4.1

 Exhibit 4.1 

OFFICER’S CERTIFICATE 

The undersigned, McKesson Corporation, a Delaware corporation (the “Company”), hereby certifies through Brian P. Moore, its Senior
Vice President and Treasurer, pursuant to Sections 2.1, 2.3 and 11.5 of the Indenture, dated as of December 4, 2012 (the “Indenture”), by and between the Company, as Issuer, and Wells Fargo Bank, National Association, as Trustee, as
follows: 
 1. The form and terms of the Floating Rate Notes due 2020 (the “2020 Notes”), as set forth on Annex A attached
hereto and the form and terms of the 1.625% Notes due 2026 (the “2026 Notes”), as set forth on Annex B attached hereto have been established pursuant to Sections 2.1 and 2.3 of the Indenture and comply with the Indenture. 

2. The undersigned has read the Indenture. 

3. The statements made in this certificate are based upon an examination of the 2020 Notes and the 2026 Notes under the Indenture, upon an
examination of and familiarity with the Indenture, upon the general knowledge of and familiarity with the operations of the Company of the undersigned and upon the performance of his duties as an officer of the Company. 

4. In the opinion of the undersigned, he has made such examination or investigation as is necessary to enable him to express an informed
opinion as to whether or not the covenants and conditions provided for in the Indenture relating to the issuance and authentication of each of the 2020 Notes and the 2026 Notes have been complied with. 

5. In the opinion of the undersigned, with respect to the foregoing, the covenants and conditions provided for in the Indenture relating to
the issuance and authentication of each of the 2020 Notes and the 2026 Notes have been complied with. 
 Capitalized terms used herein
without definition have the meanings assigned to them in the Indenture. 

 IN WITNESS WHEREOF, the undersigned has caused this certificate to be executed by its duly
authorized officer as of this 12th day of February, 2018. 
  

			
	McKESSON CORPORATION

 
			
		
	By:	 	 /s/ Brian P. Moore

		 	Name: Brian P. Moore
		 	Title:   Senior Vice President and Treasurer

 [Signature Page to Officer’s Certificate under the Indenture] 

 ANNEX A 

Pursuant to Section 2.3 of the Indenture, dated as of December 4, 2012 (the “Indenture”), between McKesson Corporation, a
Delaware corporation (the “Issuer”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), the terms of a series of securities to be issued pursuant to the Indenture are as follows: 

 

	 	1.	Designation. The designation of the securities is “Floating Rate Notes due 2020” (the “2020 Notes”). 

  

	 	2.	Initial Aggregate Principal Amount. The 2020 Notes shall be limited in initial aggregate principal amount to €250,000,000 (except for 2020 Notes authenticated and delivered upon registration of transfer of,
or in exchange for, or in lieu of, other 2020 Notes pursuant to Section 2.8, 2.9, 2.11, 8.5 or 12.3 of the Indenture). 

  

	 	3.	Currency Denomination. The 2020 Notes shall be denominated in euro. 

  

	 	4.	Maturity. The date on which the principal of the 2020 Notes is payable is February 12, 2020. 

  

	 	5.	 Rate of Interest; Interest Payment Date; Regular Record Dates. Each 2020 Note shall bear interest at a
rate equivalent to the 3-month EURIBOR plus 0.15% per annum (the “Base Rate”); provided, however, that the minimum interest rate shall be zero. The 2020 Notes will bear interest from
February 12, 2018 or from the immediately preceding Interest Payment Date (as defined below) to which interest has been paid. Interest on the 2020 Notes will be payable quarterly on February 12, May 12, August 12 and
November 12 of each year, beginning May 12, 2018 (each, an “Interest Payment Date”); provided that, if any Interest Payment Date would be a day that is not a Business Day, such Interest Payment Date will be the next
succeeding day that is a Business Day (and no additional interest will accrue or otherwise accumulate on the amount payable for the period from and after such Interest Payment Date); except that if such next succeeding Business Day falls in the next
succeeding calendar month, such Payment Date will be the immediately preceding Business Day. The initial Base Rate for the 2020 Notes in effect from the Issue Date to, but excluding, the first Interest Reset Date will be the 3-month EURIBOR in effect on February 8, 2018. The interest rate on the 2020 Notes will be determined on the second TARGET 2 (as defined below) Business Day preceding the Interest Payment Date (a “EURIBOR
Interest Determination Date”). Interest on an Interest Payment Date will be paid to the person, or “holders,” in whose names the 2020 Notes are registered on the security register at the close of business on the regular record date.
The regular record date will be the Clearing Business Day (as defined below) immediately preceding the related Interest Payment Date. “Clearing 

  
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Business Day” means Monday through Friday inclusive except December 25 and January 1. Interest on the 2020 Notes will be computed on the basis of a
360-day year and the actual number of days in the period for which interest is being calculated. For the purposes of the 2020 Notes, “Business Day” is any day that is not a Saturday, Sunday or other
day on which banking institutions in New York City, London or another place of payment on the 2020 Notes is authorized or required by law to close and on which the Trans-European Automated Real-Time Gross Settlement Express Transfer System (the
“TARGET2 System”), or any successor thereto, is open. 

 The Base Rate that takes effect on any Interest Reset Date
shall equal the interest rate for deposits in euro designated as “EURIBOR” and sponsored jointly by the European Banking Federation and ACI — the Financial Market Association (or any company established by the joint sponsors for
purposes of compiling and publishing that rate) on each EURIBOR Interest Determination Date, and will be determined by the Paying and Calculation Agent in accordance with the following provisions: (i) EURIBOR will be the offered rate for
deposits in euro having a maturity of three months, as that rate appears on Reuters Page EURIBOR01 as of 11:00 a.m., Brussels time, on the relevant EURIBOR Interest Determination Date; (ii) if the rate described in clause (i) above does
not appear on Reuters Page EURIBOR01, EURIBOR will be determined on the basis of the rates, at approximately 11:00 a.m., Brussels time, on the relevant EURIBOR Interest Determination Date, at which deposits of the following kind are offered to prime
banks in the Euro-Zone interbank market by the principal Euro-Zone office of each of four major banks in that market selected by the Company: euro deposits having a maturity of three months beginning on such Interest Reset Date and in a principal
amount of not less than €1,000,000 that is representative for a single transaction in such market at such time. The Company will request the principal Euro-Zone office of each of these banks to provide to the Calculation Agent a quotation in
writing of its rate. If at least two quotations are provided in writing, EURIBOR for such EURIBOR Interest Determination Date will be the arithmetic mean (rounded upwards) of such quotations calculated by the Calculation Agent of such quotations;
(iii) if fewer than two quotations are provided as described in clause (ii) above, EURIBOR for the relevant EURIBOR Interest Determination Date will be the arithmetic mean of the rates for loans of the following kind to leading Euro-Zone
banks quoted in writing, at approximately 11:00 a.m., Brussels time, on such EURIBOR Interest Determination Date, by three major banks in the Euro-Zone selected by the Company: loans of euro having a maturity of three months beginning on such
Interest Reset Date and in a principal amount of not less than €1,000,000 that is representative for a single transaction in such market at such time; and (iv) if fewer than three banks selected by the Issuer are quoting as described in
clause (iii) above, EURIBOR shall be the EURIBOR in effect on such EURIBOR Interest Determination Date (or, in the case of the first Interest Reset Date, the initial Base Rate). 

  
 A-2 

 Upon request of the Holder to the Calculation Agent, the Calculation Agent will provide the
interest rate then in effect on the 2020 Notes and, if determined, the interest rate that will become effective on the next Interest Reset Date. If any maturity date or earlier date of redemption of the 2020 Notes falls on a day that is not a
Business Day, the required payment shall be made on the next Business Day as if it were made on the date the payment was due and no interest shall accrue on the amount so payable for the period from and after that maturity date or that date of
redemption, as the case may be. 
  

	 	6.	Place of Payment. Principal of, premium, if any, and interest on the 2020 Notes shall be payable, and the transfer of the 2020 Notes shall be registrable, at the office or agency of the Issuer to be maintained
for such purpose in Minneapolis, Minnesota, except that, at the option of the Issuer, interest may be paid by mailing a check to the address of the person entitled thereto as it appears on the 2020 Notes register; provided, however,
that while any 2020 Notes are represented by a Registered Global Security, payment of principal of, premium, if any, or interest on the 2020 Notes may be made by wire transfer to the account of the Depositary or its nominee. 

 

	 	7.	 Optional Tax Redemption. The 2020 Notes may be redeemed at the Issuer’s option in whole, but not in
part, at 100% of the principal amount, together with accrued and unpaid interest, if any, to, but excluding, the redemption date if, as a result of any change in, or amendment to, the laws, regulations or rulings of the United States (or any
political subdivision or taxing authority thereof or therein having power to tax), or any change in official position regarding application or interpretation of those laws, regulations or rulings (including a holding by a court of competent
jurisdiction), which change, amendment, application or interpretation is announced and becomes effective on or after the February 12, 2018, the Issuer becomes or, based upon a written opinion of independent counsel selected by the Issuer, will
become obligated to pay Additional Amounts as described in Section 16 hereof and that obligation cannot be avoided by taking reasonable measures available to the Issuer, as determined by the Issuer in its sole discretion acting in good faith.
Notwithstanding the foregoing, installments of interest on 2020 Notes that are due and payable on interest payment dates falling on or prior to a redemption date will be payable on the interest payment date to the registered Holders as of the close
of business on the relevant record date. Holders of the 2020 Notes to be redeemed will receive notice thereof mailed (or, in the case of 2020 Notes held in book-entry form, transmitted electronically) at least 15 and not more than 45 days prior to
the date fixed for redemption. Unless the Issuer defaults in payment of the redemption 

  
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price, on and after the redemption date, interest will cease to accrue on the 2020 Notes or portions thereof called for redemption. As used in this paragraph, the term “United States”
means the United States of America, its territories and possessions, the states of the United States and the District of Columbia. 

  

	 	8.	Change of Control. If a Change of Control Triggering Event (as defined below) occurs, unless the Issuer has previously exercised its right to redeem the 2020 Notes in whole as described above, Holders of the 2020
Notes will have the right to require the Issuer to repurchase all or any part (in integral multiples of €1,000 original principal amount) of their 2020 Notes pursuant to the offer described below (the “Change of Control Offer”);
provided that the principal amount of any 2020 Note remaining outstanding after a repurchase in part shall be €100,000 or a higher integral multiple of €1,000. In the Change of Control Offer, the Issuer will be required to offer
payment in cash equal to 101% of the then outstanding aggregate principal amount of 2020 Notes repurchased plus accrued and unpaid interest, if any, on the 2020 Notes repurchased, to, but not including, the date of repurchase (the “Change of
Control Payment”). Within 30 days following any Change of Control Triggering Event, the Issuer will be required to mail a notice to Holders of the 2020 Notes describing the transaction or transactions that constitute the Change of Control
Triggering Event and offering to repurchase the 2020 Notes on the date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment
Date”), pursuant to the procedures described herein and in such notice. The Issuer must comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the 2020 Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations
conflict with the Change of Control provisions herein, the Issuer will be required to comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control provisions herein by
virtue of such conflicts. 

 The Paying Agent will promptly mail (or, in the case of 2020 Notes held in book-entry form,
transmit electronically) to each Holder of the 2020 Notes properly tendered the repurchase price for such Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each Holder a new 2020 Note equal in
principal amount to any unrepurchased portion of any 2020 Notes surrendered; provided, that each new 2020 Note will be in a principal amount of €100,000 or an integral multiple of €1,000 thereafter. 

  
 A-4 

 Notwithstanding the foregoing, the Issuer will not be required to make a Change of Control Offer
upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for a Change of Control Offer made by the Issuer and the third party
repurchases all 2020 Notes properly tendered and not withdrawn under its offer. In addition, the Issuer will not repurchase any 2020 Notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default, other than
a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event. On the Change of Control Payment Date, the Issuer will be required, to the extent lawful, to (i) accept for payment all 2020 Notes or portions
thereof properly tendered pursuant to the Change of Control Offer; (ii) deposit with the Paying Agent, no later than 10:00 a.m., London time, an amount equal to the Change of Control Payment in respect of all 2020 Notes or portions thereof
properly tendered; and (iii) deliver or cause to be delivered to the Trustee the 2020 Notes properly accepted together with an Officer’s Certificate stating the aggregate principal amount of 2020 Notes or portions of 2020 Notes being
repurchased. 
 “Below Investment Grade Rating Event” means the 2020 Notes are rated below an Investment Grade Rating by each of
the Rating Agencies (as defined below) on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of
the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the 2020 Notes is under publicly announced consideration for possible downgrade by any of the Rating
Agencies). 
 “Change of Control” means the occurrence of any of the following: (1) the direct or indirect sale, transfer,
conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Issuer and its Subsidiaries taken as a whole to any Person
other than the Issuer or one of its Subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any Person becomes the beneficial owner, directly or indirectly,
of more than 50% of the then outstanding number of shares of the Issuer’s voting stock; or (3) the first day on which a majority of the members of the Issuer’s Board of Directors are not Continuing Directors. Notwithstanding the
foregoing, a transaction will not be deemed to result in a Change of Control if (i) the Issuer becomes a wholly owned subsidiary of a holding company and (ii) the holders of the voting stock of such holding company immediately following
that transaction are substantially the same as the holders of the Issuer’s voting stock immediately prior to that transaction. 

  
 A-5 

 “Change of Control Triggering Event” means the occurrence of both a Change of Control
and a Below Investment Grade Rating Event. 
 “Continuing Directors” means, as of any date of determination, any member of the
Board of Directors of the Issuer who (1) was a member of such Board of Directors on the date of original issue of the 2020 Notes; or (2) was nominated for election or elected to such Board of Directors with the approval of a majority of
the Continuing Directors who were members of such Board of Directors at the time of such nomination or election (either by a specific vote or by approval of the Issuer’s proxy statement in which such member was named as a nominee for election
as a director, without objection to such nomination). 
 “Fitch” means Fitch Ratings Inc., a subsidiary of Hearst Corporation and
Fimalac, S.A. 
 “Investment Grade Rating” means a rating equal to or higher than BBB- (or
the equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P. 

“Moody’s” means Moody’s Investors Service, Inc. 

“Rating Agencies” means (1) each of Fitch, Moody’s and S&P; and (2) if any one or more of Fitch, Moody’s or
S&P ceases to rate the 2020 Notes or fails to make a rating of the 2020 Notes publicly available for reasons outside of the Issuer’s reasonable control, then, at the Issuer’s election, either (x) each of the remaining agencies, as
the case may be, or (y) each of the remaining agencies, as the case may be, and any “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) under the Exchange Act, selected by the Issuer (as
certified by a Board Resolution) as a replacement agency for Fitch, Moody’s or S&P, or all of them, as the case may be. 

“S&P” means S&P Global Ratings, a division of S&P Global, Inc. 

 

	 	9.	Mandatory Redemption. The 2020 Notes are not mandatorily redeemable and are not entitled to the benefit of a sinking fund or any analogous provisions. 

 

	 	10.	Denominations. The 2020 Notes shall be issued initially in minimum denominations of €100,000 and shall be issued in integral multiples of €1,000 in excess thereof. 

 

	 	11.	Amount Payable Upon Acceleration. The principal of the 2020 Notes shall be payable upon declaration of acceleration pursuant to Section 5.1 of the Indenture. 

  
 A-6 

	 	12.	Payment Currency. All payments of interest and principal, including payments made upon any redemption or repurchase of 2020 Notes, will be made in euro; provided that if the euro is unavailable to the Issuer due
to the imposition of exchange controls or other circumstances beyond the Issuer’s control or if the euro is no longer being used by the then member states of the European Monetary Union that have adopted the euro as their currency or for the
settlement of transactions by public institutions of or within the international banking community, then all payments in respect of the 2020 Notes will be made in Dollars until the euro is again available to the Issuer or so used. In such
circumstances, the amount payable on any date in euro will be converted into Dollars at the rate mandated by the Board of Governors of the Federal Reserve System as of the close of business on the second Business Day prior to the relevant payment
date or, if the Board of Governors of the Federal Reserve System has not announced a rate of conversion, on the basis of the most recent Dollar/euro exchange rate published in The Wall Street Journal on or prior to the second Business Day
prior to the relevant payment date or, in the event The Wall Street Journal has not published such exchange rate, the rate will be determined in the Issuer’s sole discretion on the basis of the most recently available market exchange
rate for the euro. Any payment in respect of 2020 Notes so made in Dollars will not constitute an Event of Default. Neither the Trustee nor the Paying Agent shall have any responsibility for any calculation or conversion in connection with the
foregoing. 

  

	 	13.	Payment Currency - Election. Notwithstanding the provisions of Section 12 hereof, the principal of and interest on the 2020 Notes shall not be payable in a currency other than euro. 

 

	 	14.	Payment Currency - Index. Notwithstanding the provisions of Section 12 hereof, the principal of and interest on the 2020 Notes shall not be determined with reference to an index based on a coin or currency.

  

	 	15.	Registered Securities. The 2020 Notes shall be issued only as Registered Securities. The 2020 Notes shall be issuable as Registered Global Securities. 

 

	 	16.	 Additional Amounts. All payments of principal, interest, and premium, if any, in respect of the 2020 Notes
will be made free and clear of, and without withholding or deduction for, any present or future taxes, assessments, duties or governmental charges of whatever nature imposed, levied or collected by the United States (or any political subdivision or
taxing authority thereof or therein having power to tax), unless such withholding or deduction is required by law or the official interpretation or administration thereof. Subject to the exceptions and limitations set forth below, the Issuer will
pay as additional interest in respect of the 2020 Notes such additional amounts as are necessary in order that the net 

  
 A-7 

	 	
payment by the Issuer of the principal of, premium, if any, and interest (collectively, “Additional Amounts”) in respect of the 2020 Notes to a Holder who is not a United States person
(as defined below), after withholding or deduction for any present or future tax, assessment, duties or other governmental charge imposed by the United States (or any political subdivision or taxing authority thereof or therein having power to tax),
will not be less than the amount provided in the 2020 Notes to be then due and payable; provided, however, that the foregoing obligation to pay Additional Amounts shall not apply: (1) to the extent any tax, assessment or other governmental
charge would not have been imposed but for the Holder (or the beneficial owner for whose benefit such Holder holds such 2020 Note), or a fiduciary, settlor, beneficiary, member or shareholder of the Holder if the Holder is an estate, trust,
partnership or corporation, or a person holding a power over an estate or trust administered by a fiduciary Holder, being considered as (a) being or having been engaged in a trade or business in the United States or having or having had a
permanent establishment in the United States, (b) having a current or former connection with the United States (other than a connection arising solely as a result of the ownership of 2020 Notes, the receipt of any payment or the enforcement of
any rights hereunder), including being or having been a citizen or resident of the United States, (c) being or having been a personal holding company, a passive foreign investment company or a controlled foreign corporation for U.S. federal
income tax purposes or a corporation that has accumulated earnings to avoid U.S. federal income tax, (d) being or having been a “10-percent shareholder” of the Issuer as defined in section
871(h)(3) of the United States Internal Revenue Code of 1986, as amended (the “Code”) or any successor provision or (e) being a bank receiving payments on an extension of credit made pursuant to a loan agreement entered into in the
ordinary course of its trade or business, as described in section 881(c)(3)(A) of the Code or any successor provision; (2) to any Holder that is not the sole beneficial owner of 2020 Notes, or a portion of 2020 Notes, or that is a fiduciary,
partnership, limited liability company or other fiscally transparent entity, but only to the extent that a beneficial owner with respect to the Holder, a beneficiary or settlor with respect to the fiduciary, or a beneficial owner or member of the
partnership, limited liability company or other fiscally transparent entity would not have been entitled to the payment of an Additional Amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive
share of the payment; (3) to the extent any tax, assessment or other governmental charge that would not have been imposed but for the failure of the Holder or any other person to comply with certification, identification or information
reporting requirements concerning the nationality, residence, identity or connection with the United States of the Holder or beneficial owner of 2020 Notes, if compliance is required by statute, by regulation of the United States or any taxing
authority therein 

  
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or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from such tax, assessment or other governmental charge; (4) to any tax, assessment
or other governmental charge that is imposed otherwise than by withholding by the Issuer or a Paying Agent from the payment; (5) to any tax, assessment or other governmental charge required to be withheld by any Paying Agent from any payment of
principal of or interest on any 2020 Notes, if such payment can be made without such withholding by any other Paying Agent; (6) to any estate, inheritance, gift, sales, transfer, wealth, capital gains or personal property tax or similar tax,
assessment or other governmental charge, or excise tax imposed on the transfer of 2020 Notes; (7) to the extent any tax, assessment or other governmental charge would not have been imposed but for the presentation by the Holder of any 2020
Note, where presentation is required, for payment on a date more than 30 days after the date on which payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later, except to the extent that the
beneficiary or Holder thereof would have been entitled to the payment of Additional Amounts had such 2020 Note been presented for payment on any day during such 30-day period; to any tax, assessment or other
governmental charge imposed under sections 1471 through 1474 of the Code (or any amended or successor provisions), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to section 1471(b) of the
Code or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such sections of the Code, whether currently in effect or as published and
amended from time to time; or (9) in the case of any combination of items (1), (2), (3), (4), (5), (6), (7) and (8). The 2020 Notes are subject in all cases to any tax, fiscal or other law or regulation or administrative or judicial
interpretation applicable to 2020 Notes. Except as specifically provided in this Section 16, the Issuer will not be required to make any payment for any tax, assessment or other governmental charge imposed by any government or a political
subdivision or taxing authority of or in any government or political subdivision. As used in this Section 16 and above in Section 12 hereof, the term “United States” means the United States of America, its territories and
possessions, the states of the United States and the District of Columbia, and the term “United States person” means any individual who is a citizen or resident of the United States for U.S. federal income tax purposes, a corporation,
partnership or other entity created or organized in or under the laws of the United States, any state of the United States or the District of Columbia, or any estate or trust the income of which is subject to U.S. federal income taxation regardless
of its source. 

  

	 	17.	Definitive Certificates. The 2020 Notes shall be exchanged by the Issuer for 2020 Notes in definitive form only (i) subject to the provisions of Section 2.8 of the Indenture or (ii) if an Event of
Default has occurred and is continuing, and the Depositary requests the issuance of 2020 Notes in definitive form. 

  
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	 	18.	Registrar; Paying Agent; Depositary. U.S. Bank National Association shall initially serve as the registrar and transfer agent and Elavon Financial Services DAC, UK Branch shall initially serve as the Paying Agent
for the 2020 Notes. Clearstream Banking, S.A. and Euroclear Bank S.A./N.V. shall initially serve as the Depositary for the Registered Global Security representing the 2020 Notes. Elavon Financial Services DAC shall initially serve as the common
depositary for the Depositary. 

  

	 	19.	Events of Default; Covenants. There shall be no deletions from or modifications or additions to the Events of Default set forth in Section 5.1 of the Indenture with respect to the 2020 Notes. There shall be
the following additions to the covenants of the Issuer set forth in Article III of the Indenture with respect to the 2020 Notes: 

Limitation on Liens. The Issuer covenants that, so long as any of the 2020 Notes remain outstanding, it shall not, nor shall it permit
any Consolidated Subsidiary to, create or assume any Indebtedness for money borrowed which is secured by a mortgage, pledge, security interest or lien (“liens”) of or upon any assets, whether now owned or hereafter acquired, of the Issuer
or any such Consolidated Subsidiary without equally and ratably securing the 2020 Notes by a lien ranking equally to and ratably with (or at the option of the Issuer, senior to) such secured Indebtedness, except that the foregoing restriction shall
not apply to (a) liens on any assets of any corporation existing at the time such corporation becomes a Consolidated Subsidiary; (b) liens on any assets existing at the time of acquisition of such assets by the Issuer or a Consolidated
Subsidiary, or liens to secure the payment of all or any part of the purchase price of such assets upon the acquisition of such assets by the Issuer or a Consolidated Subsidiary or to secure any indebtedness incurred or guaranteed by the Issuer or a
Consolidated Subsidiary prior to, at the time of, or within 360 days after such acquisition (or in the case of real property, the completion of construction (including any improvements on an existing asset) or commencement of full operation of such
asset, whichever is later), which indebtedness is incurred or guaranteed for the purpose of financing all or any part of the purchase price thereof or, in the case of real property, construction or improvements thereon; (c) liens on any assets
securing indebtedness owed by any Consolidated Subsidiary to the Issuer or another wholly owned Subsidiary; (d) liens on any assets of a corporation existing at the time such corporation is merged into or consolidated with the Issuer or a
Subsidiary or at the time of a purchase, lease or other acquisition of the assets of a corporation or firm as an entirety or substantially as an entirety by the Issuer or a Subsidiary; (e) liens on any assets of the Issuer or a Consolidated
Subsidiary in favor of the United States of America or any state thereof, or any department, agency or 

  
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instrumentality or political subdivision of the United States of America or any State thereof, or in favor of any other country, or any political subdivision thereof, to secure partial, progress,
advance or other payments pursuant to any contract or statute or to secure any indebtedness incurred or guaranteed for the purpose of financing all or any part of the purchase price (or, in the case of real property, the cost of construction) of the
assets subject to such liens (including, but not limited to, liens incurred in connection with pollution control, industrial revenue or similar financing); (f) any extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any lien referred to in the foregoing clauses (a) to (e), inclusive; (g) liens imposed by law, such as mechanics’, workmen’s, repairmen’s, materialmen’s, carriers’,
warehousemen’s, vendors’ or other similar liens arising in the ordinary course of business, or governmental (federal, state or municipal) liens arising out of contracts for the sale of products or services by the Issuer or any Consolidated
Subsidiary, or deposits or pledges to obtain the release of any of the foregoing liens; (h) pledges, liens or deposits under worker’s compensation laws or similar legislation and liens or judgments thereunder which are not currently
dischargeable, or in connection with bids, tenders, contracts (other than for the payment of money) or leases to which the Issuer or any Consolidated Subsidiary is a party, or to secure public or statutory obligations of the Issuer or any
Consolidated Subsidiary, or in connection with obtaining or maintaining self-insurance or to obtain the benefits of any law, regulation or arrangement pertaining to unemployment insurance, old age pensions, social security or similar matters, or to
secure surety, appeal or customs bonds to which the Issuer or any Consolidated Subsidiary is a party, or in litigation or other proceedings such as, but not limited to, interpleader proceedings, and other similar pledges, liens or deposits made or
incurred in the ordinary course of business; (i) liens created by or resulting from any litigation or other proceeding which is being contested in good faith by appropriate proceedings, including liens arising out of judgments or awards against
the Issuer or any Consolidated Subsidiary with respect to which the Issuer or such Consolidated Subsidiary is in good faith prosecuting an appeal or proceedings for review or for which the time to make an appeal has not yet expired; or final
unappealable judgment liens which are satisfied within 15 days of the date of judgment; or liens incurred by the Issuer or any Consolidated Subsidiary for the purpose of obtaining a stay or discharge in the course of any litigation or other
proceeding to which the Issuer or such Consolidated Subsidiary is a party; (j) liens for taxes or assessments or governmental charges or levies not yet due or delinquent, or which can thereafter be paid without penalty, or which are being
contested in good faith by appropriate proceedings; landlord’s liens on property held under lease; and any other liens or charges incidental to the conduct of the business of the Issuer or any Consolidated Subsidiary or the ownership of the
assets of any of them which were not incurred in connection with the 

  
 A-11 

 
borrowing of money or the obtaining of advances or credit and which do not, in the opinion of the Issuer, materially impair the use of such assets in the operation of the business of the Issuer
or such Consolidated Subsidiary or the value of such assets for the purposes thereof; (k) liens relating to accounts receivable of the Issuer or any of its Subsidiaries which have been sold, assigned or otherwise transferred to another Person
in a transaction classified as a sale of accounts receivable in accordance with accounting principles generally accepted in the United States of America (to the extent the sale by the Issuer or the applicable Subsidiary is deemed to give rise to a
lien in favor of the purchaser thereof in such accounts receivable or the proceeds thereof); or (l) liens on any assets of the Issuer or any of its Subsidiaries (including Receivables Subsidiaries) incurred in connection with a Qualified
Receivables Transaction. Notwithstanding the above, the Issuer or any Consolidated Subsidiary may, without securing the 2020 Notes, create or assume any Indebtedness which is secured by a lien which would otherwise be subject to the foregoing
restrictions, provided that at the time of such creation or assumption, after giving effect thereto, Exempted Debt does not exceed 10% of the total assets of the Issuer and its Subsidiaries on a consolidated basis, determined in accordance
with accounting principles generally accepted in the United States of America. 
 Limitation on Sale and Lease-Back Transactions. The
Issuer covenants that, so long as any of the 2020 Notes remain outstanding, the Issuer will not, nor shall the Issuer permit any Consolidated Subsidiary to, enter into any sale and lease-back transaction with respect to any assets, other than any
sale and lease-back transaction involving a lease for a term of not more than three years, unless either (a) the Issuer or such Consolidated Subsidiary would be entitled to incur Indebtedness secured by a lien on the assets to be leased in an
amount at least equal to the Attributable Debt in respect of such transaction without equally and ratably securing the 2020 Notes pursuant to clauses (a) through (k) inclusive of the covenant with respect to “Limitation on Liens”
above, or (b) the proceeds of the sale of the assets to be leased are at least equal to their fair market value (as determined by the Board of Directors of the Issuer) and the proceeds are applied to the purchase or acquisition (or, in the case
of real property, the construction) of assets or to the retirement (other than at maturity or pursuant to a mandatory sinking fund or mandatory redemption provision) of indebtedness. The foregoing limitation shall not apply, if at the time the
Issuer or any Consolidated Subsidiary enters into such sale and lease-back transaction, and after giving effect thereto, Exempted Debt does not exceed 10% of the total assets of the Issuer and its Subsidiaries on a consolidated basis, determined in
accordance with accounting principles generally accepted in the United States of America. 
 The term “Attributable Debt” in
connection with a sale and lease-back transaction shall mean, as of the date of determination, the lesser of (a) the 

  
 A-12 

 
fair value of the assets subject to such transaction, as determined by the Board of Directors of the Issuer, or (b) the present value (discounted at the rate of interest set forth in or
implicit in the terms of such lease or, if it is not practicable to determine such rate, the weighted average interest rate per annum borne by all series of Securities then Outstanding and subject to the “Limitation on Sale and Lease-Back
Transactions” covenant above compounded semi-annually, in either case as determined by the principal accounting or financial officer of the Issuer) of the remaining obligations of the Issuer or any Consolidated Subsidiary for net rental
payments during the remaining term of all leases (including any period for which such lease has been extended or may, at the option of the lessor, be extended). 

The term “Consolidated Subsidiary” shall mean any Subsidiary substantially all the property of which is located, and substantially
all the operations of which are conducted, in the United States of America whose financial statements are consolidated with those of the Issuer in accordance with accounting principles generally accepted in the United States of America. 

The term “Exempted Debt” shall mean the sum of the following as of the date of determination: (i) Indebtedness of the Issuer
and its Consolidated Subsidiaries incurred after the date of issuance of the 2020 Notes and secured by liens not permitted to be created or assumed pursuant to the covenant with respect to “Limitation on Liens” above, and
(ii) Attributable Debt of the Issuer and its Consolidated Subsidiaries in respect of every sale and lease-back transaction entered into after the date of issuance of the 2020 Notes, other than leases expressly permitted by the covenant with
respect to “Limitation on Sale and Lease-Back Transactions” above. 
 The term “Indebtedness” shall mean all items
classified as indebtedness on the most recently available consolidated balance sheet of the Issuer and its Consolidated Subsidiaries, in accordance with accounting principles generally accepted in the United States of America. 

The term “net rental payments” under any lease of any period shall mean the sum of the rental and other payments required to be paid
in such period by the lessee thereunder, not including, however, any amounts required to be paid by such lessee (whether or not designated as rental or additional rental) on account of maintenance and repairs, reconstruction, insurance, taxes,
assessments, water rates or similar charges required to be paid by such lessee thereunder or any amounts required to be paid by such lessee thereunder contingent upon the amount of sales, maintenance and repairs, reconstruction, insurance, taxes,
assessments, water rates or similar charges. 

  
 A-13 

 The term “Qualified Receivables Transaction” shall mean any transaction or series of
transactions entered into by the Issuer or any of its Subsidiaries pursuant to which the Issuer or any of its Subsidiaries sells, conveys or otherwise transfers to (i) a Receivables Subsidiary (in the case of a transfer by the Issuer or any of
its Subsidiaries) and (ii) any other Person (in the case of a transfer by a Receivables Subsidiary), or grants a security interest in, any accounts receivable (whether now existing or arising in the future) or inventory of the Issuer or any of
its Subsidiaries, and any assets related thereto including, without limitation, all collateral securing such accounts receivable, all contracts and all guarantees or other obligations in respect of such accounts receivable or inventory, proceeds of
such accounts receivable and other assets which are customarily transferred or in respect of which security interests are customarily granted in connection with asset securitization transactions involving accounts receivable or inventory. 

The term “Receivables Subsidiary” shall mean a Subsidiary of the Issuer which engages in no activities other than in connection with
the financing of accounts receivable or inventory (a) no portion of the Indebtedness or any other obligations (contingent or otherwise) of which (i) is guaranteed by the Issuer or any Subsidiary of the Issuer (excluding guarantees of
obligations (other than the principal of, and interest on, Indebtedness) pursuant to representations, warranties, covenants and indemnities entered into in the ordinary course of business in connection with a Qualified Receivables Transaction), (ii)
is recourse or obligates the Issuer or any Subsidiary of the Issuer in any way other than pursuant to representations, warranties, covenants and indemnities entered into in the ordinary course of business in connection with a Qualified Receivables
Transaction or (iii) subjects any property or asset of the Issuer or any Subsidiary of the Issuer (other than accounts receivable or inventory and related assets as provided in the definition of “Qualified Receivables Transaction”),
directly or indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to representations, warranties, covenants and indemnities entered into in the ordinary course of business in connection with a Qualified Receivables
Transaction, (b) with which neither the Issuer nor any Subsidiary of Issuer has any material contract, agreement, arrangement or understanding other than on terms customary for securitization of receivables or inventory and (c) with which
neither the Issuer nor any Subsidiary of the Issuer has any obligations to maintain or preserve such Subsidiary’s financial condition or cause such Subsidiary to achieve certain levels of operating results. 

 

	 	20.	Conversion and Exchange. The 2020 Notes shall not be convertible into or exchangeable for any other security. 

  

	 	21.	 Additional Issues. The Issuer may, without notice to or the consent of the Holders of the 2020 Notes,
create and issue additional 2020 Notes with the 

  
 A-14 

	 	
same terms as the 2020 Notes in all respects, except for the issue date, the public offering price and, under certain circumstances, the first interest payment date. Such additional 2020 Notes
shall be consolidated and form a single series with the 2020 Notes. 

  

	 	22.	Other Terms. The 2020 Notes shall have the other terms and shall be substantially in the form set forth in the form of the 2020 Notes attached hereto as Annex A-1. In case
of any conflict between this Annex A and the 2020 Notes, the form of the 2020 Notes shall control. 

  

	 	23.	Access to Information. The Issuer and the Holders shall cooperate with the Trustee and shall provide the Trustee with reasonable access to, and copies of, documents or information necessary for the Trustee to
comply with any cost basis reporting obligations imposed on it by a governmental authority in connection with certain transfers or exchanges of 2020 Notes. 

Capitalized terms used but not otherwise defined in this Annex A shall have the respective meanings ascribed to such terms in the Indenture.

  
 A-15 

 ANNEX A-1 

[FORM OF 2020 NOTE] 
  

			
	REGISTERED	  	REGISTERED

 THIS NOTE IS A REGISTERED GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF A COMMON DEPOSITARY OR A NOMINEE OF A COMMON DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITARY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED
IS REGISTERED IN THE NAME OF USB NOMINEES (UK) LIMITED OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITARY AND ANY PAYMENT HEREON IS MADE TO USB NOMINEES (UK) LIMITED, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, USB NOMINEES (UK) LIMITED, HAS AN INTEREST HEREIN. TRANSFERS OF THIS REGISTERED GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF
ELAVON FINANCIAL SERVICES DAC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE. 
  

			
	No. R – A1	  	  
 ISIN NO.XS1771768188

COMMON CODE 177176818

 McKESSON CORPORATION 

FLOATING RATE NOTES DUE FEBRUARY 12, 2020 

McKesson Corporation, a Delaware corporation (the “Issuer,” which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to USB Nominees (UK) Limited, or registered assigns, the principal sum of Two Hundred and Fifty Million euros (€250,000,000) on February 12, 2020 (the “Issue
Date”) and to pay interest on said principal sum from February 12, 2018, or from the immediately preceding Interest Payment Date, to which payment has been paid or duly provided for, on February 12, May 12, August 12 and
November 12 of each year (each an “Interest Payment Date”) commencing on May 12, 2018, at a rate equivalent to the 3-month EURIBOR (the “Base Rate”) plus 0.15% per annum, as
calculated by the Calculation Agent, until the principal hereof shall have become due and payable; provided, however, that the minimum interest rate shall be zero and in no event will the interest rate be higher than the maximum rate permitted by
New York law as the same may be modified by United States laws of general application. 
 The interest rate on this Note will be reset
quarterly on February 12, May 12, August 12 and November 12 of each year (each an “Interest Reset Date”) commencing on May 12, 2018. The initial Base Rate for this Note in effect from the Issue Date to, but excluding,
the first Interest Reset Date will be the 3-month EURIBOR in effect on February 8, 2018. 

 The interest rate on this Note will be determined on the second TARGET2 Business Day preceding
the applicable Interest Reset Date (a “EURIBOR Interest Determination Date”). 
 In the event that any Interest Payment Date or
Interest Reset Date is not a Business Day, then such Interest Payment Date or Interest Reset Date shall be the next Business Day (and in the case of an Interest Payment Date, no interest or other payment will accrue in respect of such delay); except
that if such next succeeding Business Day falls in the next succeeding calendar month, such Interest Payment Date or Interest Reset Day will be the immediately preceding Business Day. 

The Base Rate that takes effect on any Interest Reset Date shall equal the interest rate for deposits in euro designated as
“EURIBOR” and sponsored jointly by the European Banking Federation and ACI — the Financial Market Association (or any company established by the joint sponsors for purposes of compiling and publishing that rate) on each EURIBOR
Interest Determination Date, and will be determined by the Calculation Agent in accordance with the following provisions: 
 (i) EURIBOR
will be the offered rate for deposits in euro having a maturity of three months, as that rate appears on Reuters Page EURIBOR01 as of 11:00 a.m., Brussels time, on the relevant EURIBOR Interest Determination Date. 

(ii) If the rate described in clause (i) above does not appear on Reuters Page EURIBOR01, EURIBOR will be determined on the basis of the
rates, at approximately 11:00 a.m., Brussels time, on the relevant EURIBOR Interest Determination Date, at which deposits of the following kind are offered to prime banks in the Euro-Zone interbank market by the principal Euro-Zone office of each of
four major banks in that market selected by the Issuer: euro deposits having a maturity of three months beginning on such Interest Reset Date and in a principal amount of not less than €1,000,000 that is representative for a single transaction
in such market at such time. The Issuer will request the principal Euro-Zone office of each of these banks to provide to the Paying and Calculation Agent a quotation in writing of its rate. If at least two quotations are provided in writing, EURIBOR
for such EURIBOR Interest Determination Date will be the arithmetic mean (rounded upwards) of such quotations calculated by the Paying and Calculation Agent. The Company will ensure that the Paying and Calculation Agent is provided with appropriate
contact details of the relevant personnel at each of the reference banks that the Paying and Calculation Agent will be requested to contact to provide such quotation of its rates. 

(iii) If fewer than two quotations are provided as described in clause (ii) above, EURIBOR for the relevant EURIBOR Interest
Determination Date will be the arithmetic mean of the rates for loans of the following kind to leading Euro-Zone banks quoted in writing, at approximately 11:00 a.m., Brussels time, on such EURIBOR Interest Determination Date, by three major banks
in the Euro-Zone selected by the Issuer: loans of euro having a maturity of three months beginning on such Interest Reset Date and in a principal amount of not less than €1,000,000 that is representative for a single transaction in such market
at such time. 

  
 A-1-2 

 (iv) If fewer than three banks selected by the Issuer are quoting as described in clause
(iii) above, EURIBOR shall be the EURIBOR in effect on such EURIBOR Interest Determination Date (or, in the case of the first Interest Reset Date, the initial Base Rate). 

Upon request of the Holder to the Calculation Agent, the Calculation Agent will provide the interest rate then in effect on this Note and, if determined, the
interest rate that will become effective on the next Interest Reset Date. 
 All percentages resulting from any calculation with respect to this Note will
be rounded upward or downward, as appropriate, to the next higher or lower one hundred-thousandth of a percentage point (e.g., 9.876541% (or .09876541) being rounded down to 9.87654% (or .0987654) and 9.876545% (or .09876545) being rounded up to
9.87655% (or .0987655)). All amounts used in or resulting from any calculation with respect to this Note will be rounded upward or downward, as appropriate, to the nearest cent, in the case of euro amounts or U.S. dollars, or to the nearest
corresponding hundredth of a unit, in the case of a currency other than euro amounts or U.S. dollars, with one-half cent or one-half of a corresponding hundredth of a
unit or more being rounded upward. 
 The Issuer has initially appointed Elavon Financial Services DAC, UK Branch, as the Paying Agent and the Calculation
Agent with respect to the Notes, but the Issuer may, in its sole discretion, appoint any other institution (including any Affiliate of the Issuer) to serve as any such agent from time to time, without any prior notice to any Holder. The Issuer will
give the Trustee prompt written notice of any change in any such appointment. 
 The amount of interest payable shall be computed on the basis of a 360-day year and the actual number of days in the period for which interest is being calculated. The interest installment so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Indenture (referred to on the reverse hereof) be paid to the person in whose name this Note is registered on the Security Registrar at the close of business on the Clearing Business Day immediately preceding the Interest Payment Date
for such interest installment. Any such interest installment not punctually paid or duly provided for shall forthwith cease to be payable to the registered Holders on such record date and may be paid to the person in whose name this Note is
registered at the close of business on a subsequent record date (which shall be not less than five Business Days prior to the date of payment of such defaulted interest), notice whereof shall be given by mail by or on behalf of the Issuer to the
registered Holders of Notes not less than 15 days preceding such subsequent record date, all as more fully provided in the Indenture. The principal of and the interest on this Note shall be payable at the office or agency of the Issuer maintained
for that purpose in euro (except as otherwise provided in this Note); provided, however, that payment of interest may be made at the option of the Issuer by check mailed to the person entitled thereto at such address as shall appear in
the registry books of the Issuer; provided, further, that for so long as this Note is represented by a Registered Global Security, payment of principal, premium, if any, or interest on this Note may be made by wire transfer to the
account of the Depositary or its nominee. If the euro is unavailable to the Issuer due to the imposition of exchange controls or other circumstances beyond the Issuer’s control or if the euro is no longer being used by the then member states of
the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of the Notes will be

  
 A-1-3 

 
made in Dollars until the euro is again available to the Issuer or so used. In such circumstances, the amount payable on any date in euro will be converted into Dollars at the rate mandated by
the Board of Governors of the Federal Reserve System as of the close of business on the second Business Day prior to the relevant payment date or, if the Board of Governors of the Federal Reserve System has not announced a rate of conversion, on the
basis of the most recent Dollar/euro exchange rate published in The Wall Street Journal on or prior to the second Business Day prior to the relevant payment date or, in the event The Wall Street Journal has not published such exchange
rate, the rate will be determined in the Issuer’s sole discretion on the basis of the most recently available market exchange rate for the euro. Any payment in respect of Notes so made in Dollars will not constitute an Event of Default.
“Business Day” is any day that is not a Saturday, Sunday or other day on which banking institutions in New York City, London or another place of payment on the Notes is authorized or required by law to close and on which the Trans-European
Automated Real-Time Gross Settlement Express Transfer System (the “TARGET2 System”), or any successor thereto, is open. “Clearing Business Day” means a Monday, Tuesday, Wednesday, Thursday and Friday, except if such Monday,
Tuesday, Wednesday, Thursday or Friday falls on December 25 or January 1. 
 Unless the certificate of authentication hereon has
been executed by or on behalf of the Trustee (as defined below) under the Indenture (as defined below), by the manual signature of one of its authorized signatories, this Note shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose. 
 Capitalized terms used in this Note which are defined in the Indenture shall have the respective meanings
assigned to them in the Indenture. 
 The provisions of this Note are continued on the reverse side hereof and such continued provisions
shall for all purposes have the same effect as though fully set forth at this place. 

  
 A-1-4 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed, manually or in
facsimile. 
  

			
	McKESSON CORPORATION
		
	By:	 	  

		 	 Name:

		 	 Title:

 CERTIFICATE OF AUTHENTICATION 

This is one of the Securities 
 referred to in the
within-mentioned 
 Indenture. 
 WELLS FARGO BANK, NATIONAL
ASSOCIATION 
 as Trustee 
  

			
	By:	 	  

		 	 Authorized Signatory

		
	Dated:	 	

  
 A-1-5 

 [FORM OF REVERSE SIDE OF NOTE]     

This Note is one of a duly authorized series of securities (the “Securities”) of the Issuer designated as its Floating Rate Notes
due February 12, 2020 (the “Notes”). The Securities are all issued or to be issued under and pursuant to an Indenture, dated as of December 4, 2012 (the “Indenture”), duly executed and delivered between the Issuer and
Wells Fargo Bank, National Association as trustee with respect to the Notes (the “Trustee”), to which the Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights thereunder of the
Issuer, the Trustee and the Holders of the Securities and the terms upon which the Notes are to be authenticated and delivered. The terms of individual series of Securities may vary with respect to interest rate or interest rate formulas, issue
dates, maturity, redemption, repayment, currency of payment and otherwise. 
 The Notes are issuable only as Registered Securities in
minimum denominations of €100,000 and integral multiples of €1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, the Notes are exchangeable for a like aggregate principal amount of
Notes as requested by the Holder surrendering the same. 
 Except as set forth below, this Note is not redeemable and is not entitled to the
benefit of a sinking fund or any analogous provision. 
 The Notes may be redeemed at the Issuer’s option in whole, but not in part, at
100% of the principal amount, together with accrued and unpaid interest, if any, to, but excluding, the redemption date if, as a result of any change in, or amendment to, the laws, regulations or rulings of the United States (or any political
subdivision or taxing authority thereof or therein having power to tax), or any change in official position regarding application or interpretation of those laws, regulations or rulings (including a holding by a court of competent jurisdiction),
which change, amendment, application or interpretation is announced and becomes effective on or after February 12, 2018, the Issuer becomes or, based upon a written opinion of independent counsel selected by the Issuer, will become obligated to
pay Additional Amounts and that obligation cannot be avoided by taking reasonable measures available to the Issuer, as determined by the Issuer in its sole discretion acting in good faith. Notwithstanding the foregoing, installments of interest on
Notes that are due and payable on interest payment dates falling on or prior to a redemption date will be payable on the interest payment date to the registered Holders as of the close of business on the relevant record date. Holders of the Notes to
be redeemed will receive notice thereof mailed (or, in the case of Notes held in book-entry form, transmitted electronically) at least 15 and not more than 45 days prior to the date fixed for redemption. Unless the Issuer defaults in payment of the
redemption price, on and after the redemption date, interest will cease to accrue on the Notes or portions thereof called for redemption. As used in this paragraph, the term “United States” means the United States of America, its
territories and possessions, the states of the United States and the District of Columbia. 
 If a Change of Control Triggering Event (as
defined below) occurs, unless the Issuer has previously exercised its right to redeem the Notes in whole as described above, Holders of the Notes will have the right to require the Issuer to repurchase all or any part (in integral multiples of
€1,000 original principal amount) of their Notes pursuant to the offer 

  
 A-1-6 

 
described below (the “Change of Control Offer”); provided that the principal amount of any Note remaining outstanding after a repurchase in part shall be €100,000 or a higher
integral multiple of €1,000. In the Change of Control Offer, the Issuer will be required to offer payment in cash equal to 101% of the then outstanding aggregate principal amount of Notes repurchased plus accrued and unpaid interest, if any, on
the Notes repurchased, to, but not including, the date of repurchase (the “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event, the Issuer will be required to mail a notice to Holders of the Notes
describing the transaction or transactions that constitute the Change of Control Triggering Event and offering to repurchase the Notes on the date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the
date such notice is mailed (the “Change of Control Payment Date”), pursuant to the procedures described herein and in such notice. The Issuer must comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the
provisions of any securities laws or regulations conflict with the Change of Control provisions herein, the Issuer will be required to comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations
under the Change of Control provisions herein by virtue of such conflicts. 
 The Paying Agent will promptly mail (or, in the case of Notes
held in book-entry form, transmit electronically) to each Holder of the Notes properly tendered the repurchase price for such Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each Holder a new
Note equal in principal amount to any unrepurchased portion of any Notes surrendered; provided, that each new Note will be in a principal amount of €100,000 or an integral multiple of €1,000 thereafter. 

Notwithstanding the foregoing, the Issuer will not be required to make a Change of Control Offer upon the occurrence of a Change of Control
Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for a Change of Control Offer made by the Issuer and the third party repurchases all Notes properly tendered and not
withdrawn under its offer. In addition, the Issuer will not repurchase any Notes if there has occurred and is continuing on the Change of Control Payment Date an event of default under the Indenture, other than a default in the payment of the Change
of Control Payment upon a Change of Control Triggering Event. 
 On the Change of Control Payment Date, the Issuer will be required, to the
extent lawful, to (i) accept for payment all Notes or portions thereof properly tendered pursuant to the Change of Control Offer; (ii) deposit with the Paying Agent, no later than 10:00 a.m., London time, an amount equal to the Change
of Control Payment in respect of all Notes or portions of Notes properly tendered; and (iii) deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officer’s Certificate stating the aggregate principal
amount of Notes or portions of Notes being repurchased. 
 “Below Investment Grade Rating Event” means the Notes are rated below
an Investment Grade Rating by each of the Rating Agencies (as defined below) on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the
60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Notes is under
publicly announced consideration for possible downgrade by any of the Rating Agencies). 

  
 A-1-7 

 “Change of Control” means the occurrence of any of the following: (1) the direct
or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Issuer and its Subsidiaries taken
as a whole to any Person other than the Issuer or one of its Subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any Person becomes the beneficial owner,
directly or indirectly, of more than 50% of the then outstanding number of shares of the Issuer’s voting stock; or (3) the first day on which a majority of the members of the Issuer’s Board of Directors are not Continuing Directors.
Notwithstanding the foregoing, a transaction will not be deemed to result in a Change of Control if (i) the Issuer becomes a wholly owned subsidiary of a holding company and (ii) the holders of the voting stock of such holding company
immediately following that transaction are substantially the same as the holders of the Issuer’s voting stock immediately prior to that transaction. 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating Event.

 “Continuing Directors” means, as of any date of determination, any member of the Board of Directors of the Issuer who
(1) was a member of such Board of Directors on the date of original issue of this Security; or (2) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were
members of such Board of Directors at the time of such nomination or election (either by a specific vote or by approval of the Issuer’s proxy statement in which such member was named as a nominee for election as a director, without objection to
such nomination). 
 “Fitch” means Fitch Ratings Inc., a subsidiary of Hearst Corporation and Fimalac, S.A. 

“Investment Grade Rating” means a rating equal to or higher than BBB- (or the equivalent) by
Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P. 

“Moody’s” means Moody’s Investors Service, Inc. 

“Rating Agencies” means (1) each of Fitch, Moody’s and S&P; and (2) if any one or more of Fitch, Moody’s or
S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Issuer’s reasonable control, then, at the Issuer’s election, either (x) each of the remaining agencies, as the case
may be or (y) each of the remaining agencies, as the case may be, and any “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) under the Exchange Act, selected by the Issuer (as certified
by a Board Resolution) as a replacement agency for Fitch, Moody’s or S&P, or all of them, as the case may be. 

“S&P” means S&P Global Ratings, a division of S&P Global, Inc. 

  
 A-1-8 

 All payments of principal, interest, and premium, if any, in respect of the Notes will be made
free and clear of, and without withholding or deduction for, any present or future taxes, assessments, duties or governmental charges of whatever nature imposed, levied or collected by the United States (or any political subdivision or taxing
authority thereof or therein having power to tax), unless such withholding or deduction is required by law or the official interpretation or administration thereof. 

Subject to the exceptions and limitations set forth below, the Issuer will pay as additional interest in respect of the Notes such additional
amounts as are necessary in order that the net payment by the Issuer of the principal of, premium, if any, and interest (collectively, “Additional Amounts”) in respect of the Notes to a Holder who is not a United States person (as defined
below), after withholding or deduction for any present or future tax, assessment, duties or other governmental charge imposed by the United States (or any political subdivision or taxing authority thereof or therein having power to tax), will not be
less than the amount provided herein to be then due and payable; provided, however, that the foregoing obligation to pay Additional Amounts shall not apply: (1) to the extent any tax, assessment or other governmental charge would not have been
imposed but for the Holder (or the beneficial owner for whose benefit such Holder holds such Note), or a fiduciary, settlor, beneficiary, member or shareholder of the Holder if the Holder is an estate, trust, partnership or corporation, or a person
holding a power over an estate or trust administered by a fiduciary Holder, being considered as (a) being or having been engaged in a trade or business in the United States or having or having had a permanent establishment in the United States,
(b) having a current or former connection with the United States (other than a connection arising solely as a result of the ownership of a Note, the receipt of any payment or the enforcement of any rights hereunder), including being or having
been a citizen or resident of the United States, (c) being or having been a personal holding company, a passive foreign investment company or a controlled foreign corporation for U.S. federal income tax purposes or a corporation that has
accumulated earnings to avoid U.S. federal income tax, (d) being or having been a “10-percent shareholder” of the Issuer as defined in section 871(h)(3) of the United States Internal Revenue
Code of 1986, as amended (the “Code”) or any successor provision or (e) being a bank receiving payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business, as
described in section 881(c)(3)(A) of the Code or any successor provision; (2) to any Holder that is not the sole beneficial owner of a Note, or a portion of a Note, or that is a fiduciary, partnership, limited liability company or other
fiscally transparent entity, but only to the extent that a beneficial owner with respect to the Holder, a beneficiary or settlor with respect to the fiduciary, or a beneficial owner or member of the partnership, limited liability company or other
fiscally transparent entity would not have been entitled to the payment of an Additional Amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the payment; (3) to the extent
any tax, assessment or other governmental charge that would not have been imposed but for the failure of the Holder or any other person to comply with certification, identification or information reporting requirements concerning the nationality,
residence, identity or connection with the United States of the Holder or beneficial owner of a Note, if compliance is required by statute, by regulation of the United States or any taxing authority therein or by an applicable income tax treaty to
which the United States is a party as a precondition to exemption from such tax, assessment or other governmental charge; (4) to any tax, assessment or other governmental charge that is imposed otherwise than by withholding by the Issuer or a
Paying Agent from the payment; (5) to any tax, assessment or 

  
 A-1-9 

 
other governmental charge required to be withheld by any Paying Agent from any payment of principal of or interest on any Note, if such payment can be made without such withholding by any other
Paying Agent; (6) to any estate, inheritance, gift, sales, transfer, wealth, capital gains or personal property tax or similar tax, assessment or other governmental charge, or excise tax imposed on the transfer of a Note; (7) to the extent
any tax, assessment or other governmental charge would not have been imposed but for the presentation by the Holder of any Note, where presentation is required, for payment on a date more than 30 days after the date on which payment became due and
payable or the date on which payment thereof is duly provided for, whichever occurs later, except to the extent that the beneficiary or Holder thereof would have been entitled to the payment of Additional Amounts had such Note been presented for
payment on any day during such 30-day period; to any tax, assessment or other governmental charge imposed under sections 1471 through 1474 of the Code (or any amended or successor provisions), any current or
future regulations or official interpretations thereof, any agreement entered into pursuant to section 1471(b) of the Code or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into
in connection with the implementation of such sections of the Code, whether currently in effect or as published and amended from time to time; or (9) in the case of any combination of items (1), (2), (3), (4), (5), (6), (7) and (8). As used in
this paragraph, the term “United States” means the United States of America, its territories and possessions, the states of the United States and the District of Columbia, and the term “United States person” means any individual
who is a citizen or resident of the United States for U.S. federal income tax purposes, a corporation, partnership or other entity created or organized in or under the laws of the United States, any state of the United States or the District of
Columbia, or any estate or trust the income of which is subject to U.S. federal income taxation regardless of its source. 
 This Note is
subject in all cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable hereto. 
 If an
Event of Default with respect to the Notes shall occur and be continuing, the principal of all the Notes may be declared due and payable in the manner and with the effect provided in the Indenture. 

The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of the holders of not less than a majority in
aggregate principal amount of the Senior Securities or Subordinated Securities, as the case may be, of all series issued under such Indenture then outstanding and affected (each voting as one class), to add any provisions to, or change in any
manner, eliminate or waive any of the provisions of, such Indenture or modify in any manner the rights of the holders of the Securities or Coupons so affected; provided that the Issuer and the Trustee, may not, without the consent of the
holder of each Outstanding Security affected thereby, (i) extend the final maturity of the principal of any Security or reduce the principal amount thereof or premium thereon, if any, or reduce the rate or extend the time of payment of interest
thereon, or reduce any amount payable on redemption thereof or change the currency in which the principal thereof (other than as otherwise may be provided with respect to such series), premium, if any, or interest thereon is payable or reduce the
amount of the principal of any Original Issue Discount Security that is payable upon acceleration or provable in bankruptcy, or in the case of Subordinated Securities of any series, modify any of the subordination provisions or the definition of
“Senior Indebtedness” relating to such series in a 

  
 A-1-10 

 
manner adverse to the holders of such Subordinated Securities, or alter certain provisions of the Indenture relating to Securities not denominated in Dollars or the Judgment Currency of such
Securities or impair or affect the right of any Securityholder to institute suit for the enforcement of any payment thereof when due or, if the Securities provide therefor, any right of repayment at the option of the Securityholder or
(ii) reduce the aforesaid percentage in principal amount of Securities of any series issued under the Indenture, the consent of the holders of which is required for any such modification. It is also provided in the Indenture that, with respect
to certain defaults or Events of Default regarding the Securities of any series, the holders of a majority in aggregate principal amount Outstanding of the Securities of each such series, each such series voting as a separate class (or, of all
Securities, as the case may be voting as a single class) may under certain circumstances waive all defaults with respect to each such series (or with respect to all the Securities, as the case may be) and rescind and annul a declaration of default
and its consequences, but no such waiver or rescission and annulment shall extend to or affect any subsequent default or shall impair any right consequent thereto. The preceding sentence shall not, however, apply to a default in the payment of the
principal of or interest on any of the Securities. 
 No reference herein to the Indenture and no provision of this Note or of the Indenture
shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the time, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note may be registered on the registry
books of the Issuer, upon surrender of this Note for registration of transfer at the office or agency of the Issuer maintained by the Issuer for such purpose in Minneapolis, Minnesota, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Issuer and the Trustee duly executed by, the holder hereof or by its attorney duly authorized in writing, and thereupon one or more new Notes of authorized denominations and for the same aggregate principal
amount will be issued to the designated transferee or transferees. 
 No service charge shall be made for any such registration of transfer
or exchange, but the Issuer may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 

Prior to due presentment of this Note for registration of transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may
treat the person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Issuer, the Trustee nor any such agent shall be affected by notice to the contrary. 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 

  
 A-1-11 

 [FORM OF SCHEDULE FOR ENDORSEMENTS ON REGISTERED 

GLOBAL SECURITIES TO REFLECT CHANGES IN PRINCIPAL AMOUNT] 

Schedule A 
 Changes to Principal
Amount of Registered Global Securities 
  

													
	Date	 	 	 	Principal Amount 
of Notes 
by which this Registered Global
Security is to be 
Reduced or Increased,

and Reason for 
Reduction or Increase	 	 	 	 Remaining

Principal 
Amount of this

Registered 
Global Security
	 	 	 	Notation Made By
	 	 		 	 	 		 	 	 		 	 
	 	 		 	 	 		 	 	 		 	 
	 	 		 	 	 		 	 	 		 	 
	 	 		 	 	 		 	 	 		 	 
	 	 		 	 	 		 	 	 		 	 
	 	 		 	 	 		 	 	 		 	 
	 	 		 	 	 		 	 	 		 	 
	 	 		 	 	 		 	 	 		 	 

  
 A-1-12 

 ANNEX B 

Pursuant to Section 2.3 of the Indenture, dated as of December 4, 2012 (the “Indenture”), between McKesson Corporation, a
Delaware corporation (the “Issuer”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), the terms of a series of securities to be issued pursuant to the Indenture are as follows: 

 

	 	1.	Designation. The designation of the securities is “1.625 % Notes due 2026” (the “2026 Notes”). 

  

	 	2.	Initial Aggregate Principal Amount. The 2026 Notes shall be limited in initial aggregate principal amount to €500,000,000 (except for 2026 Notes authenticated and delivered upon registration of transfer of,
or in exchange for, or in lieu of, other 2026 Notes pursuant to Section 2.8, 2.9, 2.11, 8.5 or 12.3 of the Indenture). 

  

	 	3.	Currency Denomination. The 2026 Notes shall be denominated in euro. 

  

	 	4.	Maturity. The date on which the principal of the 2026 Notes is payable is October 30, 2026. 

  

	 	5.	Rate of Interest; Interest Payment Date; Regular Record Dates. Each 2026 Note shall bear interest from February 12, 2018 at 1.625% per annum until the principal thereof is paid. Such interest shall be
payable annually in arrears on October 30 of each year, commencing on October 30, 2018, to the persons in whose names the 2026 Notes are registered at the close of business on the immediately preceding October 15. Interest on the 2026
Notes shall accrue from the most recent date to which interest has been paid, or, if no interest has been paid, from February 12, 2018. Interest on the 2026 Notes shall be computed on the basis of the actual number of days in the period for
which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the 2026 Notes (or February 12, 2018, if no interest has been paid on the 2026 Notes), to, but excluding, the next
scheduled interest payment date. This payment convention is referred to as “Actual/Actual (ICMA)” as defined in the rulebook of the International Capital Market Association. In the event that any date on which principal, premium, if any,
or interest is payable on the 2026 Notes is not a Business Day, then payment of the principal, premium, if any, or interest payable on such date will be made on the next succeeding date that is a Business Day (and without any interest or other
payment in respect of any such delay). For the purposes of the 2026 Notes, “Business Day” is any day that is not a Saturday, Sunday or other day on which banking institutions in New York City, London or another place of payment on the 2026
Notes is authorized or required by law to close and on which the Trans-European Automated Real-Time Gross Settlement Express Transfer System (the “TARGET2 System”), or any successor thereto, is open. 

  
 B-1 

	 	6.	Place of Payment. Principal of, premium, if any, and interest on the 2026 Notes shall be payable, and the transfer of the 2026 Notes shall be registrable, at the office or agency of the Issuer to be maintained
for such purpose in Minneapolis, Minnesota, except that, at the option of the Issuer, interest may be paid by mailing a check to the address of the person entitled thereto as it appears on the 2026 Notes register; provided, however,
that while any 2026 Notes are represented by a Registered Global Security, payment of principal of, premium, if any, or interest on the 2026 Notes may be made by wire transfer to the account of the Depositary or its nominee. 

 

	 	7.	 Optional Redemption. The 2026 Notes may be redeemed (a) prior to July 30, 2026 (the “Par
Call Date”) in whole, at any time, or in part, from time to time, at the option of the Issuer, for cash, at a redemption price equal to the greater of (i) 100% of their principal amount, or (ii) an amount, as determined by the Quotation
Agent, equal to the sum of the present values of the remaining scheduled payments of principal, premium, if any, and interest thereon (not including any portion of such payments of interest accrued to the date of redemption), to the Par Call Date,
discounted to the date of redemption on an annual basis (Actual/Actual ICMA) at the Comparable Government Bond Rate plus 20 basis points, plus, in each case, accrued and unpaid interest thereon to, but not including redemption date, (b) on or
after the Par Call Date, in whole, at any time, or in part, from time to time, at the option of the Issuer, for cash, at a redemption price equal to 100% of their principal amount, plus accrued and unpaid interest to, but not including, the
redemption date or (c) at the Issuer’s option in whole, but not in part, at 100% of the principal amount, together with accrued and unpaid interest, if any, to, but excluding, the redemption date if, as a result of any change in, or
amendment to, the laws, regulations or rulings of the United States (or any political subdivision or taxing authority thereof or therein having power to tax), or any change in official position regarding application or interpretation of those laws,
regulations or rulings (including a holding by a court of competent jurisdiction), which change, amendment, application or interpretation is announced and becomes effective on or after the February 12, 2018, the Issuer becomes or, based upon a
written opinion of independent counsel selected by the Issuer, will become obligated to pay Additional Amounts as described in Section 16 hereof and that obligation cannot be avoided by taking reasonable measures available to the Issuer, as
determined by the Issuer in its sole discretion acting in good faith; provided that, in each case, after the principal amount of any 2026 Note remaining outstanding after a redemption in part shall be €100,000 or a higher integral
multiple of €1,000. Notwithstanding the foregoing, installments of interest on 2026 Notes that are due and payable on interest payment dates falling on or 

  
 B-2 

 
prior to a redemption date will be payable on the interest payment date to the registered Holders as of the close of business on the relevant record date. Holders of the 2026 Notes to be redeemed
will receive notice thereof mailed (or, in the case of 2026 Notes held in book-entry form, transmitted electronically) at least 15 and not more than 45 days prior to the date fixed for redemption. Unless the Issuer defaults in payment of the
redemption price, on and after the redemption date, interest will cease to accrue on the 2026 Notes or portions thereof called for redemption. If less than all of the 2026 Notes are to be redeemed, the 2026 Notes to be redeemed will be selected in
accordance with the standard procedures of the Depositary. If the 2026 Notes to be redeemed are not Registered Global Securities then held by the Depositary, the Trustee will select the 2026 Notes to be redeemed on a pro rata basis. If the
2026 Notes are listed on the New York Stock Exchange (the “NYSE”) or any other national securities exchange registered under the Exchange Act, the Trustee will select 2026 Notes in compliance with the requirements of the NYSE or other
national securities exchange on which the 2026 Notes are listed. 
 “Comparable Government Bond” means, in relation to any
Comparable Government Bond Rate calculation, at the discretion of an independent investment bank selected by the Issuer (the “Quotation Agent”), a German government bond whose maturity is closest to the Par Call Date, or if such Quotation
Agent in its discretion determines that such similar bond is not in issue, such other German government bond as such Quotation Agent may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Issuer,
determine to be appropriate for determining the Comparable Government Bond Rate. 
 “Comparable Government Bond Rate” means the
price, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded upwards), at which the gross redemption yield on the 2026 Notes to be redeemed, if they were to be purchased at such price on the third Business Day prior
to the date fixed for redemption, would be equal to the gross redemption yield on such Business Day of the Comparable Government Bond on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time) on
such Business Day as determined by the Quotation Agent. 
  

	 	8.	 Change of Control. If a Change of Control Triggering Event (as defined below) occurs, unless the Issuer
has previously exercised its right to redeem the 2026 Notes in whole as described above, Holders of the 2026 Notes will have the right to require the Issuer to repurchase all or any part (in integral multiples of €1,000 original principal
amount) of their 2026 Notes pursuant to the offer described below (the “Change of Control Offer”); provided that the principal amount of any 2026 Note remaining outstanding after a repurchase in part shall be €100,000 or a
higher 

  
 B-3 

 
integral multiple of €1,000. In the Change of Control Offer, the Issuer will be required to offer payment in cash equal to 101% of the then outstanding aggregate principal amount of 2026
Notes repurchased plus accrued and unpaid interest, if any, on the 2026 Notes repurchased, to, but not including, the date of repurchase (the “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event,
the Issuer will be required to mail a notice to Holders of the 2026 Notes describing the transaction or transactions that constitute the Change of Control Triggering Event and offering to repurchase the 2026 Notes on the date specified in the
notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”), pursuant to the procedures described herein and in such notice. The Issuer must comply
with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of
the 2026 Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control provisions herein, the Issuer will be required to comply with the
applicable securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control provisions herein by virtue of such conflicts. 

The Paying Agent will promptly mail (or, in the case of 2026 Notes held in book-entry form, transmit electronically) to each Holder of the
2026 Notes properly tendered the repurchase price for such Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each Holder a new 2026 Note equal in principal amount to any unrepurchased portion of
any 2026 Notes surrendered; provided, that each new 2026 Note will be in a principal amount of €100,000 or an integral multiple of €1,000 thereafter. 

Notwithstanding the foregoing, the Issuer will not be required to make a Change of Control Offer upon the occurrence of a Change of Control
Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for a Change of Control Offer made by the Issuer and the third party repurchases all 2026 Notes properly tendered and
not withdrawn under its offer. In addition, the Issuer will not repurchase any 2026 Notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default, other than a default in the payment of the Change of Control
Payment upon a Change of Control Triggering Event. On the Change of Control Payment Date, the Issuer will be required, to the extent lawful, to (i) accept for payment all 2026 Notes or portions thereof properly tendered pursuant to the Change
of Control Offer; (ii) deposit with the Paying Agent, no later than 10:00 a.m., London time, an amount equal to the Change of Control Payment in respect of all 2026 Notes or portions 

  
 B-4 

 
thereof properly tendered; and (iii) deliver or cause to be delivered to the Trustee the 2026 Notes properly accepted together with an Officer’s Certificate stating the aggregate
principal amount of 2026 Notes or portions of 2026 Notes being repurchased. 
 “Below Investment Grade Rating Event” means the
2026 Notes are rated below an Investment Grade Rating by each of the Rating Agencies (as defined below) on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the 2026 Notes is under
publicly announced consideration for possible downgrade by any of the Rating Agencies). 
 “Change of Control” means the
occurrence of any of the following: (1) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the
properties or assets of the Issuer and its Subsidiaries taken as a whole to any Person other than the Issuer or one of its Subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the
result of which is that any Person becomes the beneficial owner, directly or indirectly, of more than 50% of the then outstanding number of shares of the Issuer’s voting stock; or (3) the first day on which a majority of the members of the
Issuer’s Board of Directors are not Continuing Directors. Notwithstanding the foregoing, a transaction will not be deemed to result in a Change of Control if (i) the Issuer becomes a wholly owned subsidiary of a holding company and
(ii) the holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of the Issuer’s voting stock immediately prior to that transaction. 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating Event.

 “Continuing Directors” means, as of any date of determination, any member of the Board of Directors of the Issuer who
(1) was a member of such Board of Directors on the date of original issue of the 2026 Notes; or (2) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were
members of such Board of Directors at the time of such nomination or election (either by a specific vote or by approval of the Issuer’s proxy statement in which such member was named as a nominee for election as a director, without objection to
such nomination). 
 “Fitch” means Fitch Ratings Inc., a subsidiary of Hearst Corporation and Fimalac, S.A. 

  
 B-5 

 “Investment Grade Rating” means a rating equal to or higher than BBB- (or the equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P. 

“Moody’s” means Moody’s Investors Service, Inc. 

“Rating Agencies” means (1) each of Fitch, Moody’s and S&P; and (2) if any one or more of Fitch, Moody’s or
S&P ceases to rate the 2026 Notes or fails to make a rating of the 2026 Notes publicly available for reasons outside of the Issuer’s reasonable control, then, at the Issuer’s election, either (x) each of the remaining agencies, as
the case may be or (y) each of the remaining agencies, as the case may be, and any “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) under the Exchange Act, selected by the Issuer (as
certified by a Board Resolution) as a replacement agency for Fitch, Moody’s or S&P, or all of them, as the case may be. 

“S&P” means S&P Global Ratings, a division of S&P Global, Inc. 

 

	 	9.	Mandatory Redemption. The 2026 Notes are not mandatorily redeemable and are not entitled to the benefit of a sinking fund or any analogous provisions. 

 

	 	10.	Denominations. The 2026 Notes shall be issued initially in minimum denominations of €100,000 and shall be issued in integral multiples of €1,000 in excess thereof. 

 

	 	11.	Amount Payable Upon Acceleration. The principal of the 2026 Notes shall be payable upon declaration of acceleration pursuant to Section 5.1 of the Indenture. 

 

	 	12.	 Payment Currency. All payments of interest and principal, including payments made upon any redemption or
repurchase of 2026 Notes, will be made in euro; provided that if the euro is unavailable to the Issuer due to the imposition of exchange controls or other circumstances beyond the Issuer’s control or if the euro is no longer being used by the
then member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of the 2026
Notes will be made in Dollars until the euro is again available to the Issuer or so used. In such circumstances, the amount payable on any date in euro will be converted into Dollars at the rate mandated by the Board of Governors of the Federal
Reserve System as of the close of business on the second Business Day prior to the relevant payment date or, if the Board of Governors of the Federal Reserve System has not announced a rate of conversion, on the basis of the most recent Dollar/euro
exchange rate published in The Wall Street Journal on or prior 

  
 B-6 

	 	
to the second Business Day prior to the relevant payment date or, in the event The Wall Street Journal has not published such exchange rate, the rate will be determined in the
Issuer’s sole discretion on the basis of the most recently available market exchange rate for the euro. Any payment in respect of 2026 Notes so made in Dollars will not constitute an Event of Default. Neither the Trustee nor the Paying Agent
shall have any responsibility for any calculation or conversion in connection with the foregoing. 

  

	 	13.	Payment Currency - Election. Notwithstanding the provisions of Section 12 hereof, the principal of and interest on the 2026 Notes shall not be payable in a currency other than euro. 

 

	 	14.	Payment Currency - Index. Notwithstanding the provisions of Section 12 hereof, the principal of and interest on the 2026 Notes shall not be determined with reference to an index based on a coin or currency.

  

	 	15.	Registered Securities. The 2026 Notes shall be issued only as Registered Securities. The 2026 Notes shall be issuable as Registered Global Securities. 

 

	 	16.	 Additional Amounts. All payments of principal, interest, and premium, if any, in respect of the 2026 Notes
will be made free and clear of, and without withholding or deduction for, any present or future taxes, assessments, duties or governmental charges of whatever nature imposed, levied or collected by the United States (or any political subdivision or
taxing authority thereof or therein having power to tax), unless such withholding or deduction is required by law or the official interpretation or administration thereof. Subject to the exceptions and limitations set forth below, the Issuer will
pay as additional interest in respect of the 2026 Notes such additional amounts as are necessary in order that the net payment by the Issuer of the principal of, premium, if any, and interest (collectively, “Additional Amounts”) in respect
of the 2026 Notes to a Holder who is not a United States person (as defined below), after withholding or deduction for any present or future tax, assessment, duties or other governmental charge imposed by the United States (or any political
subdivision or taxing authority thereof or therein having power to tax), will not be less than the amount provided in the 2026 Notes to be then due and payable; provided, however, that the foregoing obligation to pay Additional Amounts shall not
apply: (1) to the extent any tax, assessment or other governmental charge would not have been imposed but for the Holder (or the beneficial owner for whose benefit such Holder holds such 2026 Note), or a fiduciary, settlor, beneficiary, member
or shareholder of the Holder if the Holder is an estate, trust, partnership or corporation, or a person holding a power over an estate or trust administered by a fiduciary Holder, being considered as (a) being or having been engaged in a trade
or business in the United States or having 

  
 B-7 

 
or having had a permanent establishment in the United States, (b) having a current or former connection with the United States (other than a connection arising solely as a result of the
ownership of 2026 Notes, the receipt of any payment or the enforcement of any rights hereunder), including being or having been a citizen or resident of the United States, (c) being or having been a personal holding company, a passive foreign
investment company or a controlled foreign corporation for U.S. federal income tax purposes or a corporation that has accumulated earnings to avoid U.S. federal income tax, (d) being or having been a
“10-percent shareholder” of the Issuer as defined in section 871(h)(3) of the United States Internal Revenue Code of 1986, as amended (the “Code”) or any successor provision or
(e) being a bank receiving payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business, as described in section 881(c)(3)(A) of the Code or any successor provision;
(2) to any Holder that is not the sole beneficial owner of 2026 Notes, or a portion of 2026 Notes, or that is a fiduciary, partnership, limited liability company or other fiscally transparent entity, but only to the extent that a beneficial
owner with respect to the Holder, a beneficiary or settlor with respect to the fiduciary, or a beneficial owner or member of the partnership, limited liability company or other fiscally transparent entity would not have been entitled to the payment
of an Additional Amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the payment; (3) to the extent any tax, assessment or other governmental charge that would not have been
imposed but for the failure of the Holder or any other person to comply with certification, identification or information reporting requirements concerning the nationality, residence, identity or connection with the United States of the Holder or
beneficial owner of 2026 Notes, if compliance is required by statute, by regulation of the United States or any taxing authority therein or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from
such tax, assessment or other governmental charge; (4) to any tax, assessment or other governmental charge that is imposed otherwise than by withholding by the Issuer or a Paying Agent from the payment; (5) to any tax, assessment or other
governmental charge required to be withheld by any Paying Agent from any payment of principal of or interest on any 2026 Notes, if such payment can be made without such withholding by any other Paying Agent; (6) to any estate, inheritance,
gift, sales, transfer, wealth, capital gains or personal property tax or similar tax, assessment or other governmental charge, or excise tax imposed on the transfer of 2026 Notes; (7) to the extent any tax, assessment or other governmental
charge would not have been imposed but for the presentation by the Holder of any 2026 Note, where presentation is required, for payment on a date more than 30 days after the date on which payment became due and payable or the date on which payment
thereof is duly provided for, whichever occurs later, 

  
 B-8 

	 	
except to the extent that the beneficiary or Holder thereof would have been entitled to the payment of Additional Amounts had such 2026 Note been presented for payment on any day during such 30-day period; to any tax, assessment or other governmental charge imposed under sections 1471 through 1474 of the Code (or any amended or successor provisions), any current or future regulations or official
interpretations thereof, any agreement entered into pursuant to section 1471(b) of the Code or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the
implementation of such sections of the Code, whether currently in effect or as published and amended from time to time; or (9) in the case of any combination of items (1), (2), (3), (4), (5), (6), (7) and (8). The 2026 Notes are subject in all
cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable to 2026 Notes. Except as specifically provided in this Section 16, the Issuer will not be required to make any payment for any tax,
assessment or other governmental charge imposed by any government or a political subdivision or taxing authority of or in any government or political subdivision. As used in this Section 16 and above in Section 12 hereof, the term
“United States” means the United States of America, its territories and possessions, the states of the United States and the District of Columbia, and the term “United States person” means any individual who is a citizen or
resident of the United States for U.S. federal income tax purposes, a corporation, partnership or other entity created or organized in or under the laws of the United States, any state of the United States or the District of Columbia, or any estate
or trust the income of which is subject to U.S. federal income taxation regardless of its source. 

  

	 	17.	Definitive Certificates. The 2026 Notes shall be exchanged by the Issuer for 2026 Notes in definitive form only (i) subject to the provisions of Section 2.8 of the Indenture or (ii) if an Event of
Default has occurred and is continuing, and the Depositary requests the issuance of 2026 Notes in definitive form. 

  

	 	18.	Registrar; Paying Agent; Depositary. U.S. Bank National Association shall initially serve as the registrar and transfer agent and Elavon Financial Services DAC, UK Branch shall initially serve as the Paying Agent
for the 2026 Notes. Clearstream Banking, S.A. and Euroclear Bank S.A./N.V. shall initially serve as the Depositary for the Registered Global Security representing the 2026 Notes. Elavon Financial Services DAC shall initially serve as the common
depositary for the Depositary. 

  
 B-9 

	 	19.	Events of Default; Covenants. There shall be no deletions from or modifications or additions to the Events of Default set forth in Section 5.1 of the Indenture with respect to the 2026 Notes. There shall be
the following additions to the covenants of the Issuer set forth in Article III of the Indenture with respect to the 2026 Notes: 

Limitation on Liens. The Issuer covenants that, so long as any of the 2026 Notes remain outstanding, it shall not, nor shall it permit
any Consolidated Subsidiary to, create or assume any Indebtedness for money borrowed which is secured by a mortgage, pledge, security interest or lien (“liens”) of or upon any assets, whether now owned or hereafter acquired, of the Issuer
or any such Consolidated Subsidiary without equally and ratably securing the 2026 Notes by a lien ranking equally to and ratably with (or at the option of the Issuer, senior to) such secured Indebtedness, except that the foregoing restriction shall
not apply to (a) liens on any assets of any corporation existing at the time such corporation becomes a Consolidated Subsidiary; (b) liens on any assets existing at the time of acquisition of such assets by the Issuer or a Consolidated
Subsidiary, or liens to secure the payment of all or any part of the purchase price of such assets upon the acquisition of such assets by the Issuer or a Consolidated Subsidiary or to secure any indebtedness incurred or guaranteed by the Issuer or a
Consolidated Subsidiary prior to, at the time of, or within 360 days after such acquisition (or in the case of real property, the completion of construction (including any improvements on an existing asset) or commencement of full operation of such
asset, whichever is later), which indebtedness is incurred or guaranteed for the purpose of financing all or any part of the purchase price thereof or, in the case of real property, construction or improvements thereon; (c) liens on any assets
securing indebtedness owed by any Consolidated Subsidiary to the Issuer or another wholly owned Subsidiary; (d) liens on any assets of a corporation existing at the time such corporation is merged into or consolidated with the Issuer or a
Subsidiary or at the time of a purchase, lease or other acquisition of the assets of a corporation or firm as an entirety or substantially as an entirety by the Issuer or a Subsidiary; (e) liens on any assets of the Issuer or a Consolidated
Subsidiary in favor of the United States of America or any state thereof, or any department, agency or instrumentality or political subdivision of the United States of America or any State thereof, or in favor of any other country, or any political
subdivision thereof, to secure partial, progress, advance or other payments pursuant to any contract or statute or to secure any indebtedness incurred or guaranteed for the purpose of financing all or any part of the purchase price (or, in the case
of real property, the cost of construction) of the assets subject to such liens (including, but not limited to, liens incurred in connection with pollution control, industrial revenue or similar financing); (f) any extension, renewal or replacement
(or successive extensions, renewals or replacements), in whole or in part, of any lien referred to in the foregoing clauses (a) to (e), inclusive; (g) liens imposed by law, such as mechanics’, workmen’s, repairmen’s,
materialmen’s, carriers’, warehousemen’s, vendors’ or other similar liens arising in the ordinary course of business, or governmental (federal, state or municipal) liens arising out of contracts for the sale of products or
services by the Issuer or any Consolidated Subsidiary, or deposits or pledges to obtain the release 

  
 B-10 

 
of any of the foregoing liens; (h) pledges, liens or deposits under worker’s compensation laws or similar legislation and liens or judgments thereunder which are not currently
dischargeable, or in connection with bids, tenders, contracts (other than for the payment of money) or leases to which the Issuer or any Consolidated Subsidiary is a party, or to secure public or statutory obligations of the Issuer or any
Consolidated Subsidiary, or in connection with obtaining or maintaining self-insurance or to obtain the benefits of any law, regulation or arrangement pertaining to unemployment insurance, old age pensions, social security or similar matters, or to
secure surety, appeal or customs bonds to which the Issuer or any Consolidated Subsidiary is a party, or in litigation or other proceedings such as, but not limited to, interpleader proceedings, and other similar pledges, liens or deposits made or
incurred in the ordinary course of business; (i) liens created by or resulting from any litigation or other proceeding which is being contested in good faith by appropriate proceedings, including liens arising out of judgments or awards against
the Issuer or any Consolidated Subsidiary with respect to which the Issuer or such Consolidated Subsidiary is in good faith prosecuting an appeal or proceedings for review or for which the time to make an appeal has not yet expired; or final
unappealable judgment liens which are satisfied within 15 days of the date of judgment; or liens incurred by the Issuer or any Consolidated Subsidiary for the purpose of obtaining a stay or discharge in the course of any litigation or other
proceeding to which the Issuer or such Consolidated Subsidiary is a party; (j) liens for taxes or assessments or governmental charges or levies not yet due or delinquent, or which can thereafter be paid without penalty, or which are being
contested in good faith by appropriate proceedings; landlord’s liens on property held under lease; and any other liens or charges incidental to the conduct of the business of the Issuer or any Consolidated Subsidiary or the ownership of the
assets of any of them which were not incurred in connection with the borrowing of money or the obtaining of advances or credit and which do not, in the opinion of the Issuer, materially impair the use of such assets in the operation of the business
of the Issuer or such Consolidated Subsidiary or the value of such assets for the purposes thereof; (k) liens relating to accounts receivable of the Issuer or any of its Subsidiaries which have been sold, assigned or otherwise transferred to
another Person in a transaction classified as a sale of accounts receivable in accordance with accounting principles generally accepted in the United States of America (to the extent the sale by the Issuer or the applicable Subsidiary is deemed to
give rise to a lien in favor of the purchaser thereof in such accounts receivable or the proceeds thereof); or (l) liens on any assets of the Issuer or any of its Subsidiaries (including Receivables Subsidiaries) incurred in connection with a
Qualified Receivables Transaction. Notwithstanding the above, the Issuer or any Consolidated Subsidiary may, without securing the 2026 Notes, create or assume any Indebtedness which is secured by a lien which would otherwise be subject to the
foregoing 

  
 B-11 

 
restrictions, provided that at the time of such creation or assumption, after giving effect thereto, Exempted Debt does not exceed 10% of the total assets of the Issuer and its
Subsidiaries on a consolidated basis, determined in accordance with accounting principles generally accepted in the United States of America. 

Limitation on Sale and Lease-Back Transactions. The Issuer covenants that, so long as any of the 2026 Notes remain outstanding, the
Issuer will not, nor shall the Issuer permit any Consolidated Subsidiary to, enter into any sale and lease-back transaction with respect to any assets, other than any sale and lease-back transaction involving a lease for a term of not more than
three years, unless either (a) the Issuer or such Consolidated Subsidiary would be entitled to incur Indebtedness secured by a lien on the assets to be leased in an amount at least equal to the Attributable Debt in respect of such transaction
without equally and ratably securing the 2026 Notes pursuant to clauses (a) through (k) inclusive of the covenant with respect to “Limitation on Liens” above, or (b) the proceeds of the sale of the assets to be leased are at
least equal to their fair market value (as determined by the Board of Directors of the Issuer) and the proceeds are applied to the purchase or acquisition (or, in the case of real property, the construction) of assets or to the retirement (other
than at maturity or pursuant to a mandatory sinking fund or mandatory redemption provision) of indebtedness. The foregoing limitation shall not apply, if at the time the Issuer or any Consolidated Subsidiary enters into such sale and lease-back
transaction, and after giving effect thereto, Exempted Debt does not exceed 10% of the total assets of the Issuer and its Subsidiaries on a consolidated basis, determined in accordance with accounting principles generally accepted in the United
States of America. 
 The term “Attributable Debt” in connection with a sale and lease-back transaction shall mean, as of the date
of determination, the lesser of (a) the fair value of the assets subject to such transaction, as determined by the Board of Directors of the Issuer, or (b) the present value (discounted at the rate of interest set forth in or implicit in
the terms of such lease or, if it is not practicable to determine such rate, the weighted average interest rate per annum borne by all series of Securities then Outstanding and subject to the “Limitation on Sale and Lease-Back
Transactions” covenant above compounded semi-annually, in either case as determined by the principal accounting or financial officer of the Issuer) of the remaining obligations of the Issuer or any Consolidated Subsidiary for net rental
payments during the remaining term of all leases (including any period for which such lease has been extended or may, at the option of the lessor, be extended). 

The term “Consolidated Subsidiary” shall mean any Subsidiary substantially all the property of which is located, and substantially
all the operations of which are conducted, in the United States of America whose 

  
 B-12 

 
financial statements are consolidated with those of the Issuer in accordance with accounting principles generally accepted in the United States of America. 

The term “Exempted Debt” shall mean the sum of the following as of the date of determination: (i) Indebtedness of the Issuer
and its Consolidated Subsidiaries incurred after the date of issuance of the 2026 Notes and secured by liens not permitted to be created or assumed pursuant to the covenant with respect to “Limitation on Liens” above, and
(ii) Attributable Debt of the Issuer and its Consolidated Subsidiaries in respect of every sale and lease-back transaction entered into after the date of issuance of the 2026 Notes, other than leases expressly permitted by the covenant with
respect to “Limitation on Sale and Lease-Back Transactions” above. 
 The term “Indebtedness” shall mean all items
classified as indebtedness on the most recently available consolidated balance sheet of the Issuer and its Consolidated Subsidiaries, in accordance with accounting principles generally accepted in the United States of America. 

The term “net rental payments” under any lease of any period shall mean the sum of the rental and other payments required to be paid
in such period by the lessee thereunder, not including, however, any amounts required to be paid by such lessee (whether or not designated as rental or additional rental) on account of maintenance and repairs, reconstruction, insurance, taxes,
assessments, water rates or similar charges required to be paid by such lessee thereunder or any amounts required to be paid by such lessee thereunder contingent upon the amount of sales, maintenance and repairs, reconstruction, insurance, taxes,
assessments, water rates or similar charges. 
 The term “Qualified Receivables Transaction” shall mean any transaction or series
of transactions entered into by the Issuer or any of its Subsidiaries pursuant to which the Issuer or any of its Subsidiaries sells, conveys or otherwise transfers to (i) a Receivables Subsidiary (in the case of a transfer by the Issuer or any
of its Subsidiaries) and (ii) any other Person (in the case of a transfer by a Receivables Subsidiary), or grants a security interest in, any accounts receivable (whether now existing or arising in the future) or inventory of the Issuer or any
of its Subsidiaries, and any assets related thereto including, without limitation, all collateral securing such accounts receivable, all contracts and all guarantees or other obligations in respect of such accounts receivable or inventory, proceeds
of such accounts receivable and other assets which are customarily transferred or in respect of which security interests are customarily granted in connection with asset securitization transactions involving accounts receivable or inventory. 

  
 B-13 

 The term “Receivables Subsidiary” shall mean a Subsidiary of the Issuer which engages
in no activities other than in connection with the financing of accounts receivable or inventory (a) no portion of the Indebtedness or any other obligations (contingent or otherwise) of which (i) is guaranteed by the Issuer or any
Subsidiary of the Issuer (excluding guarantees of obligations (other than the principal of, and interest on, Indebtedness) pursuant to representations, warranties, covenants and indemnities entered into in the ordinary course of business in
connection with a Qualified Receivables Transaction), (ii) is recourse or obligates the Issuer or any Subsidiary of the Issuer in any way other than pursuant to representations, warranties, covenants and indemnities entered into in the ordinary
course of business in connection with a Qualified Receivables Transaction or (iii) subjects any property or asset of the Issuer or any Subsidiary of the Issuer (other than accounts receivable or inventory and related assets as provided in the
definition of “Qualified Receivables Transaction”), directly or indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to representations, warranties, covenants and indemnities entered into in the ordinary
course of business in connection with a Qualified Receivables Transaction, (b) with which neither the Issuer nor any Subsidiary of Issuer has any material contract, agreement, arrangement or understanding other than on terms customary for
securitization of receivables or inventory and (c) with which neither the Issuer nor any Subsidiary of the Issuer has any obligations to maintain or preserve such Subsidiary’s financial condition or cause such Subsidiary to achieve certain
levels of operating results. 
  

	 	20.	Conversion and Exchange. The 2026 Notes shall not be convertible into or exchangeable for any other security. 

  

	 	21.	Additional Issues. The Issuer may, without notice to or the consent of the Holders of the 2026 Notes, create and issue additional 2026 Notes with the same terms as the 2026 Notes in all respects, except for the
issue date, the public offering price and, under certain circumstances, the first interest payment date. Such additional 2026 Notes shall be consolidated and form a single series with the 2026 Notes. 

 

	 	22.	Other Terms. The 2026 Notes shall have the other terms and shall be substantially in the form set forth in the form of the 2026 Notes attached hereto as Annex B-1. In case
of any conflict between this Annex B and the 2026 Notes, the form of the 2026 Notes shall control. 

  

	 	23.	Access to Information. The Issuer and the Holders shall cooperate with the Trustee and shall provide the Trustee with reasonable access to, and copies of, documents or information necessary for the Trustee to
comply with any cost basis reporting obligations imposed on it by a governmental authority in connection with certain transfers or exchanges of 2026 Notes. 

  
 B-14 

 Capitalized terms used but not otherwise defined in this Annex B shall have the respective
meanings ascribed to such terms in the Indenture. 

  
 B-15 

 ANNEX B-1 

[FORM OF 2026 NOTE] 
  

			
	REGISTERED	  	REGISTERED

 THIS NOTE IS A REGISTERED GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF A COMMON DEPOSITARY OR A NOMINEE OF A COMMON DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITARY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED
IS REGISTERED IN THE NAME OF USB NOMINEES (UK) LIMITED OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITARY AND ANY PAYMENT HEREON IS MADE TO USB NOMINEES (UK) LIMITED, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, USB NOMINEES (UK) LIMITED, HAS AN INTEREST HEREIN. TRANSFERS OF THIS REGISTERED GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF
ELAVON FINANCIAL SERVICES DAC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE. 
  

			
	No. R – A2	  	    ISIN NO. XS1771723167
		  	 COMMON CODE 177172316

 McKESSON CORPORATION 

1.625% NOTES DUE OCTOBER 30, 2026 

McKesson Corporation, a Delaware corporation (the “Issuer,” which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to USB Nominees (UK) Limited, or registered assigns, the principal sum of Five Hundred Million euros (€500,000,000) on October 30, 2026 and to pay interest on said
principal sum from February 12, 2018, or from the most recent interest payment date to which interest has been paid or duly provided for, annually on October 30 (the “Interest Payment Date”) of each year commencing on
October 30, 2018, at the rate of 1.625% per annum until the principal hereof shall have become due and payable. 
 The amount of
interest payable on any Interest Payment Date shall be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid
on this Note (or February 12, 2018, if no interest has been paid on this Note), to, but excluding, the next scheduled interest payment date. In the event that any date on which the principal or interest payable on this Note is not a Business
Day, then payment of principal or interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of such delay). The interest installment so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture (referred to on the reverse hereof) be paid to the person in whose name this Note is registered at the close of

  
 B-1-1 

 
business on the record date for such interest installment, which shall be the close of business on the immediately preceding October 15 prior to such Interest Payment Date, as applicable.
Any such interest installment not punctually paid or duly provided for shall forthwith cease to be payable to the registered Holders on such record date and may be paid to the person in whose name this Note is registered at the close of business on
a subsequent record date (which shall be not less than five Business Days prior to the date of payment of such defaulted interest), notice whereof shall be given by mail by or on behalf of the Issuer to the registered Holders of Notes not less than
15 days preceding such subsequent record date, all as more fully provided in the Indenture. The principal of and the interest on this Note shall be payable at the office or agency of the Issuer maintained for that purpose in euro (except as
otherwise provided in this Note); provided, however, that payment of interest may be made at the option of the Issuer by check mailed to the person entitled thereto at such address as shall appear in the registry books of the Issuer;
provided, further, that for so long as this Note is represented by a Registered Global Security, payment of principal, premium, if any, or interest on this Note may be made by wire transfer to the account of the Depositary or its
nominee. If the euro is unavailable to the Issuer due to the imposition of exchange controls or other circumstances beyond the Issuer’s control or if the euro is no longer being used by the then member states of the European Monetary Union that
have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of the Notes will be made in Dollars until the euro is again
available to the Issuer or so used. In such circumstances, the amount payable on any date in euro will be converted into Dollars at the rate mandated by the Board of Governors of the Federal Reserve System as of the close of business on the second
Business Day prior to the relevant payment date or, if the Board of Governors of the Federal Reserve System has not announced a rate of conversion, on the basis of the most recent Dollar/euro exchange rate published in The Wall Street Journal
on or prior to the second Business Day prior to the relevant payment date or, in the event The Wall Street Journal has not published such exchange rate, the rate will be determined in the Issuer’s sole discretion on the basis of the most
recently available market exchange rate for the euro. Any payment in respect of Notes so made in Dollars will not constitute an Event of Default. For the purposes of the Notes, “Business Day” is any day that is not a Saturday, Sunday or
other day on which banking institutions in New York City, London or another place of payment on the Notes is authorized or required by law to close and on which the Trans-European Automated Real-Time Gross Settlement Express Transfer System (the
“TARGET2 System”), or any successor thereto, is open. 
 Unless the certificate of authentication hereon has been executed by or
on behalf of the Trustee (as defined below) under the Indenture (as defined below), by the manual signature of one of its authorized signatories, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any
purpose. 
 Capitalized terms used in this Note which are defined in the Indenture shall have the respective meanings assigned to them in
the Indenture. 
 The provisions of this Note are continued on the reverse side hereof and such continued provisions shall for all purposes
have the same effect as though fully set forth at this place. 

  
 B-1-2 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed, manually or in
facsimile. 
  

			
	McKESSON CORPORATION
		
	By:	 	  

		 	 Name:

		 	 Title:

 CERTIFICATE OF AUTHENTICATION 

This is one of the Securities 
 referred to in the
within-mentioned 
 Indenture. 
  

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 as Trustee

			
		
	By:	 	  

		 	Authorized Signatory
		
	Dated:	 	

  
 B-1-3 

 [FORM OF REVERSE SIDE OF NOTE] 

This Note is one of a duly authorized series of securities (the “Securities”) of the Issuer designated as its 1.625% Notes due
October 30, 2026 (the “Notes”). The Securities are all issued or to be issued under and pursuant to an Indenture, dated as of December 4, 2012 (the “Indenture”), duly executed and delivered between the Issuer and Wells
Fargo Bank, National Association as trustee with respect to the Notes (the “Trustee”), to which the Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights thereunder of the
Issuer, the Trustee and the Holders of the Securities and the terms upon which the Notes are to be authenticated and delivered. The terms of individual series of Securities may vary with respect to interest rate or interest rate formulas, issue
dates, maturity, redemption, repayment, currency of payment and otherwise. 
 The Notes are issuable only as Registered Securities in
minimum denominations of €100,000 and integral multiples of €1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, the Notes are exchangeable for a like aggregate principal amount of
Notes as requested by the Holder surrendering the same. 
 Except as set forth below, this Note is not redeemable and is not entitled to the
benefit of a sinking fund or any analogous provision. 
 The Notes may be redeemed (a) prior to July 30, 2026 (the “Par Call
Date”) in whole, at any time, or in part, from time to time, at the option of the Issuer, for cash, at a redemption price equal to the greater of (i) 100% of their principal amount or (ii) an amount, as determined by the Quotation Agent,
equal to the sum of the present values of the remaining scheduled payments of principal, premium, if any, and interest thereon (not including any portion of such payments of interest accrued to the date of redemption), to the Par Call Date,
discounted to the date of redemption on an annual basis at the Comparable Government Bond Rate plus 20 basis points, plus, in each case, accrued and unpaid interest thereon to, but not including the date of redemption, (b) on or after the Par
Call Date, in whole, at any time, or in part, from time to time, at the option of the Issuer, for cash, at a redemption price equal to 100% of their principal amount, plus accrued and unpaid interest to, but not including, the redemption date or
(c) at the Issuer’s option in whole, but not in part, at 100% of the principal amount, together with accrued and unpaid interest, if any, to, but excluding, the redemption date if, as a result of any change in, or amendment to, the laws,
regulations or rulings of the United States (or any political subdivision or taxing authority thereof or therein having power to tax), or any change in official position regarding application or interpretation of those laws, regulations or rulings
(including a holding by a court of competent jurisdiction), which change, amendment, application or interpretation is announced and becomes effective on or after February 12, 2018, the Issuer becomes or, based upon a written opinion of
independent counsel selected by the Issuer, will become obligated to pay Additional Amounts and that obligation cannot be avoided by taking reasonable measures available to the Issuer, as determined by the Issuer in its sole discretion acting in
good faith. Notwithstanding the foregoing, installments of interest on Notes that are due and payable on interest payment dates falling on or prior to a redemption date will be payable on the interest payment date to the registered Holders as of the
close of business on the relevant record date. Holders of the Notes to be redeemed will receive notice thereof mailed (or, in the case of Notes held in book-entry form, transmitted electronically) at least 15 and not more

  
 B-1-4 

 
than 45 days prior to the date fixed for redemption. Unless the Issuer defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the Notes or
portions thereof called for redemption. If less than all of the Notes are to be redeemed, no Notes of a principal amount of €100,000 or less shall be redeemed in part. If less than all of the Notes are to be redeemed, the Notes to be redeemed
will be selected in accordance with the standard procedures of the Depositary. If the Notes to be redeemed are not Registered Global Securities then held by the Depositary, the Trustee will select the Notes to be redeemed on a pro rata basis.
If the Notes are listed on the New York Stock Exchange (the “NYSE”) or any other national securities exchange registered under the Exchange Act, the Trustee will select Notes in compliance with the requirements of the NYSE or other
national securities exchange on which the Notes are listed. As used in this paragraph, the term “United States” means the United States of America, its territories and possessions, the states of the United States and the District of
Columbia. 
 “Comparable Government Bond” means, in relation to any Comparable Government Bond Rate calculation, at the discretion
of an independent investment bank selected by the Issuer (the “Quotation Agent”), a German government bond whose maturity is closest to the Par Call Date, or if such Quotation Agent in its discretion determines that such similar bond is
not in issue, such other German government bond as such Quotation Agent may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Issuer, determine to be appropriate for determining the Comparable
Government Bond Rate. 
 “Comparable Government Bond Rate” means the price, expressed as a percentage (rounded to three decimal
places, with 0.0005 being rounded upwards), at which the gross redemption yield on the Notes to be redeemed, if they were to be purchased at such price on the third Business Day prior to the date fixed for redemption, would be equal to the gross
redemption yield on such Business Day of the Comparable Government Bond on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined by the Quotation Agent. 

If a Change of Control Triggering Event (as defined below) occurs, unless the Issuer has previously exercised its right to redeem the Notes in
whole as described above, Holders of the Notes will have the right to require the Issuer to repurchase all or any part (in integral multiples of €1,000 original principal amount) of their Notes pursuant to the offer described below (the
“Change of Control Offer”); provided that the principal amount of any Note remaining outstanding after a repurchase in part shall be €100,000 or a higher integral multiple of €1,000. In the Change of Control Offer, the Issuer
will be required to offer payment in cash equal to 101% of the then outstanding aggregate principal amount of Notes repurchased plus accrued and unpaid interest, if any, on the Notes repurchased, to, but not including, the date of repurchase (the
“Change of Control Payment”). Within 30 days following any Change of Control Triggering Event, the Issuer will be required to mail a notice to Holders of the Notes describing the transaction or transactions that constitute the Change of
Control Triggering Event and offering to repurchase the Notes on the date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment
Date”), pursuant to the procedures described herein and in such notice. The Issuer must comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations
thereunder to the extent those laws and regulations are applicable 

  
 B-1-5 

 
in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with the
Change of Control provisions herein, the Issuer will be required to comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control provisions herein by virtue of such
conflicts. 
 The Paying Agent will promptly mail (or, in the case of Notes held in book-entry form, transmit electronically) to each Holder
of the Notes properly tendered the repurchase price for such Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each Holder a new Note equal in principal amount to any unrepurchased portion of
any Notes surrendered; provided, that each new Note will be in a principal amount of €100,000 or an integral multiple of €1,000 thereafter. 

Notwithstanding the foregoing, the Issuer will not be required to make a Change of Control Offer upon the occurrence of a Change of Control
Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for a Change of Control Offer made by the Issuer and the third party repurchases all Notes properly tendered and not
withdrawn under its offer. In addition, the Issuer will not repurchase any Notes if there has occurred and is continuing on the Change of Control Payment Date an event of default under the Indenture, other than a default in the payment of the Change
of Control Payment upon a Change of Control Triggering Event. 
 On the Change of Control Payment Date, the Issuer will be required, to the
extent lawful, to (i) accept for payment all Notes or portions thereof properly tendered pursuant to the Change of Control Offer; (ii) deposit with the Paying Agent, no later than 10:00 a.m., London time, an amount equal to the Change
of Control Payment in respect of all Notes or portions of Notes properly tendered; and (iii) deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officer’s Certificate stating the aggregate principal
amount of Notes or portions of Notes being repurchased. 
 “Below Investment Grade Rating Event” means the Notes are rated below
an Investment Grade Rating by each of the Rating Agencies (as defined below) on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the
60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Notes is under
publicly announced consideration for possible downgrade by any of the Rating Agencies). 
 “Change of Control” means the
occurrence of any of the following: (1) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the
properties or assets of the Issuer and its Subsidiaries taken as a whole to any Person other than the Issuer or one of its Subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the
result of which is that any Person becomes the beneficial owner, directly or indirectly, of more than 50% of the then outstanding number of shares of the Issuer’s voting stock; or (3) the first day on which a majority of the members of the
Issuer’s Board of Directors are not Continuing Directors. Notwithstanding the foregoing, a transaction will not be deemed to result in a Change of Control if (i) the Issuer becomes a wholly

  
 B-1-6 

 
owned subsidiary of a holding company and (ii) the holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of the
Issuer’s voting stock immediately prior to that transaction. 
 “Change of Control Triggering Event” means the occurrence of
both a Change of Control and a Below Investment Grade Rating Event. 
 “Continuing Directors” means, as of any date of
determination, any member of the Board of Directors of the Issuer who (1) was a member of such Board of Directors on the date of original issue of this Security; or (2) was nominated for election or elected to such Board of Directors with the
approval of a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election (either by a specific vote or by approval of the Issuer’s proxy statement in which such member was named
as a nominee for election as a director, without objection to such nomination). 
 “Fitch” means Fitch Ratings Inc., a subsidiary
of Hearst Corporation and Fimalac, S.A. 
 “Investment Grade Rating” means a rating equal to or higher than BBB- (or the equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P. 

“Moody’s” means Moody’s Investors Service, Inc. 

“Rating Agencies” means (1) each of Fitch, Moody’s and S&P; and (2) if any one or more of Fitch, Moody’s or
S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Issuer’s reasonable control, then, at the Issuer’s election, either (x) each of the remaining agencies, as the case
may be or (y) each of the remaining agencies, as the case may be, and any “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) under the Exchange Act, selected by the Issuer (as certified
by a Board Resolution) as a replacement agency for Fitch, Moody’s or S&P, or all of them, as the case may be. 

“S&P” means S&P Global Ratings, a division of S&P Global, Inc. 

All payments of principal, interest, and premium, if any, in respect of the Notes will be made free and clear of, and without withholding or
deduction for, any present or future taxes, assessments, duties or governmental charges of whatever nature imposed, levied or collected by the United States (or any political subdivision or taxing authority thereof or therein having power to tax),
unless such withholding or deduction is required by law or the official interpretation or administration thereof. 
 Subject to the
exceptions and limitations set forth below, the Issuer will pay as additional interest in respect of the Notes such additional amounts as are necessary in order that the net payment by the Issuer of the principal of, premium, if any, and interest
(collectively, “Additional Amounts”) in respect of the Notes to a Holder who is not a United States person (as defined below), after withholding or deduction for any present or future tax, assessment, duties or other governmental charge
imposed by the United States (or any political subdivision or taxing authority thereof or therein having power to tax), will not be less than the amount 

  
 B-1-7 

 
provided herein to be then due and payable; provided, however, that the foregoing obligation to pay Additional Amounts shall not apply: (1) to the extent any tax, assessment or other
governmental charge would not have been imposed but for the Holder (or the beneficial owner for whose benefit such Holder holds such Note), or a fiduciary, settlor, beneficiary, member or shareholder of the Holder if the Holder is an estate, trust,
partnership or corporation, or a person holding a power over an estate or trust administered by a fiduciary Holder, being considered as (a) being or having been engaged in a trade or business in the United States or having or having had a
permanent establishment in the United States, (b) having a current or former connection with the United States (other than a connection arising solely as a result of the ownership of a Note, the receipt of any payment or the enforcement of any
rights hereunder), including being or having been a citizen or resident of the United States, (c) being or having been a personal holding company, a passive foreign investment company or a controlled foreign corporation for U.S. federal income
tax purposes or a corporation that has accumulated earnings to avoid U.S. federal income tax, (d) being or having been a “10-percent shareholder” of the Issuer as defined in section 871(h)(3) of
the United States Internal Revenue Code of 1986, as amended (the “Code”) or any successor provision or (e) being a bank receiving payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course
of its trade or business, as described in section 881(c)(3)(A) of the Code or any successor provision; (2) to any Holder that is not the sole beneficial owner of a Note, or a portion of a Note, or that is a fiduciary, partnership, limited
liability company or other fiscally transparent entity, but only to the extent that a beneficial owner with respect to the Holder, a beneficiary or settlor with respect to the fiduciary, or a beneficial owner or member of the partnership, limited
liability company or other fiscally transparent entity would not have been entitled to the payment of an Additional Amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the
payment; (3) to the extent any tax, assessment or other governmental charge that would not have been imposed but for the failure of the Holder or any other person to comply with certification, identification or information reporting
requirements concerning the nationality, residence, identity or connection with the United States of the Holder or beneficial owner of a Note, if compliance is required by statute, by regulation of the United States or any taxing authority therein
or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from such tax, assessment or other governmental charge; (4) to any tax, assessment or other governmental charge that is imposed otherwise
than by withholding by the Issuer or a Paying Agent from the payment; (5) to any tax, assessment or other governmental charge required to be withheld by any Paying Agent from any payment of principal of or interest on any Note, if such payment
can be made without such withholding by any other Paying Agent; (6) to any estate, inheritance, gift, sales, transfer, wealth, capital gains or personal property tax or similar tax, assessment or other governmental charge, or excise tax imposed
on the transfer of a Note; (7) to the extent any tax, assessment or other governmental charge would not have been imposed but for the presentation by the Holder of any Note, where presentation is required, for payment on a date more than 30
days after the date on which payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later, except to the extent that the beneficiary or Holder thereof would have been entitled to the payment of
Additional Amounts had such Note been presented for payment on any day during such 30-day period; to any tax, assessment or other governmental charge imposed under sections 1471 through 1474 of the Code (or
any amended or successor provisions), any current or future regulations or official interpretations thereof, any agreement 

  
 B-1-8 

 
entered into pursuant to section 1471(b) of the Code or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection
with the implementation of such sections of the Code, whether currently in effect or as published and amended from time to time; or (9) in the case of any combination of items (1), (2), (3), (4), (5), (6), (7) and (8). As used in this
paragraph, the term “United States” means the United States of America, its territories and possessions, the states of the United States and the District of Columbia, and the term “United States person” means any individual who
is a citizen or resident of the United States for U.S. federal income tax purposes, a corporation, partnership or other entity created or organized in or under the laws of the United States, any state of the United States or the District of
Columbia, or any estate or trust the income of which is subject to U.S. federal income taxation regardless of its source. 
 This Note is
subject in all cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable hereto. 
 If an
Event of Default with respect to the Notes shall occur and be continuing, the principal of all the Notes may be declared due and payable in the manner and with the effect provided in the Indenture. 

The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of the holders of not less than a majority in
aggregate principal amount of the Senior Securities or Subordinated Securities, as the case may be, of all series issued under such Indenture then outstanding and affected (each voting as one class), to add any provisions to, or change in any
manner, eliminate or waive any of the provisions of, such Indenture or modify in any manner the rights of the holders of the Securities or Coupons so affected; provided that the Issuer and the Trustee, may not, without the consent of the
holder of each Outstanding Security affected thereby, (i) extend the final maturity of the principal of any Security or reduce the principal amount thereof or premium thereon, if any, or reduce the rate or extend the time of payment of interest
thereon, or reduce any amount payable on redemption thereof or change the currency in which the principal thereof (other than as otherwise may be provided with respect to such series), premium, if any, or interest thereon is payable or reduce the
amount of the principal of any Original Issue Discount Security that is payable upon acceleration or provable in bankruptcy, or in the case of Subordinated Securities of any series, modify any of the subordination provisions or the definition of
“Senior Indebtedness” relating to such series in a manner adverse to the holders of such Subordinated Securities, or alter certain provisions of the Indenture relating to Securities not denominated in Dollars or the Judgment Currency of
such Securities or impair or affect the right of any Securityholder to institute suit for the enforcement of any payment thereof when due or, if the Securities provide therefor, any right of repayment at the option of the Securityholder or
(ii) reduce the aforesaid percentage in principal amount of Securities of any series issued under the Indenture, the consent of the holders of which is required for any such modification. It is also provided in the Indenture that, with respect
to certain defaults or Events of Default regarding the Securities of any series, the holders of a majority in aggregate principal amount Outstanding of the Securities of each such series, each such series voting as a separate class (or, of all
Securities, as the case may be voting as a single class) may under certain circumstances waive all defaults with respect to each such series (or with respect to all the Securities, as the case may be) and rescind and annul a declaration of default
and its consequences, but no such waiver or rescission and annulment shall extend to or 

  
 B-1-9 

 
affect any subsequent default or shall impair any right consequent thereto. The preceding sentence shall not, however, apply to a default in the payment of the principal of or interest on any of
the Securities. 
 No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the
obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the time, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note may be registered on the registry
books of the Issuer, upon surrender of this Note for registration of transfer at the office or agency of the Issuer maintained by the Issuer for such purpose in Minneapolis, Minnesota, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Issuer and the Trustee duly executed by, the holder hereof or by its attorney duly authorized in writing, and thereupon one or more new Notes of authorized denominations and for the same aggregate principal
amount will be issued to the designated transferee or transferees. 
 No service charge shall be made for any such registration of transfer
or exchange, but the Issuer may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 

Prior to due presentment of this Note for registration of transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may
treat the person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Issuer, the Trustee nor any such agent shall be affected by notice to the contrary. 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 

  
 B-1-10 

 [FORM OF SCHEDULE FOR ENDORSEMENTS ON REGISTERED 

GLOBAL SECURITIES TO REFLECT CHANGES IN PRINCIPAL AMOUNT] 

Schedule A 
 Changes to Principal
Amount of Registered Global Securities 
  

													
	Date	 	 	  	 Principal Amount

of Notes
 by which this Registered
Global
 Security is to be
 Reduced
or Increased,
 and Reason for

Reduction or Increase
	 	 	  	 Remaining

Principal
 Amount of this

Registered
 Global Security
	 	 	  	Notation Made By
	 	 		  	 	 		  	 	 		  	 
	 	 		  	 	 		  	 	 		  	 
	 	 		  	 	 		  	 	 		  	 
	 	 		  	 	 		  	 	 		  	 
	 	 		  	 	 		  	 	 		  	 
	 	 		  	 	 		  	 	 		  	 
	 	 		  	 	 		  	 	 		  	 
	 	 		  	 	 		  	 	 		  	 

  
 B-1-11Exhibit

    

Exhibit 10.1

PEPSICO

EXECUTIVE INCOME DEFERRAL 

PROGRAM

Plan Document for the Pre-409A Program

As Amended and Restated 

Effective December 20, 2017

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
	

	4.4
	Distribution of a Participant’s Account
	16
	

-i-

	
				
	4.5
	Acceleration of Payment in Certain Cases
	18
	

	ARTICLE V: PLAN ADMINISTRATION
	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
	 

	Appendix A: Spinoff of Tricon
	29
	

	Appendix B: Initial Public Offering of PBG
	33
	

-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 December 20, 2017, 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 

1

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.  

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 principal exchange on which PepsiCo Capital Stock is traded as of the time in question, 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 principal exchange on which PepsiCo Capital Stock is traded as of the time in question, 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.

5

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 

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category 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 

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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:

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(a)  For Base Compensation, at least 6 months after the Plan Year during which the Base Compensation would have been paid absent the deferral;

(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.

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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 

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(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 

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on actual shares) are credited to a dividend subaccount that is invested in the phantom option in paragraph (1) above (the Interest Bearing Account).

(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 

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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);

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(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.  

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(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 

16

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.

(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).

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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; 

19

(i)  To hire agents, accountants, actuaries, consultants and legal counsel to assist in operating and administering the Plan; and

(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 

20

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.

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 

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(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.

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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).

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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.

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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 

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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 

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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.

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This 7th day of February, 2018, the above restated Plan is hereby adopted and approved by the Company’s duly authorized officer to be effective as stated herein.

PEPSICO, INC.

By: /s/ Ruth Fattori                        
Ruth Fattori
Executive Vice President and Chief Human Resources Officer
                    

APPROVED

By:  /s/ Stacy Grindal            
Stacy Grindal, Law Department

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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.

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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.

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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) 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 

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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).

(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.

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(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.

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

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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 

34

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).

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 

35

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 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.

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