Document:

Exhibit 10.1

 

PEPSIAMERICAS,
INC.

 

DEBT
SECURITIES

 

UNDERWRITING
AGREEMENT

 

May 11, 2005

 

Citigroup Global Markets Inc.

J.P. Morgan Securities Inc.

Banc of America Securities LLC

Wachovia Capital Markets, LLC

BNP Paribas Securities Corp.

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Wells Fargo Securities, LLC

Loop Capital Markets, LLC

 

c/o J.P. Morgan Securities Inc.

270 Park Avenue

New York, New York 10017

 

Ladies and Gentlemen:

 

1.                                       Introductory.
PepsiAmericas, Inc., a Delaware corporation (“Company”), proposes to issue and
sell from time to time certain of its debt securities registered under the registration
statement referred to in Section 2(a) (“Registered Securities”). The Registered
Securities will be issued under an indenture, dated as of August 15, 2003 (as
amended or supplemented with respect to such Registered Securities, the “Indenture”),
between the Company and Wells Fargo Bank, National Association, as Trustee, in
one or more series, which series may vary as to interest rates, maturities, redemption
provisions, selling prices and other terms, with all such terms for any
particular series of the Registered Securities being determined at the time of sale.
Particular series of the Registered Securities will be sold pursuant to a Terms
Agreement referred to in Section 3 for resale in accordance with terms of
offering determined at the time of sale.

 

The Registered
Securities specified in the applicable Terms Agreement are hereinafter referred
to as the “Securities.” The firm or firms which agree to purchase the
Securities in the applicable Terms Agreement are hereinafter referred to as the
“Underwriters” of such Securities, and the representative(s) of the
Underwriters, if any, specified in such Terms Agreement are hereinafter
referred to as the “Representatives”; provided, however, that if such Terms Agreement
does not specify any representative of the Underwriters, the term “Representatives,”
as used in this Agreement (other than in Sections 2(b), 5(b) and 6 and the
second sentence of Section 3), shall mean the Underwriters.

 

2.                                       Representations
and Warranties of the Company. The Company represents and warrants to, and
agrees with, each Underwriter on the date hereof, the date of the applicable

 

 

Terms Agreement and the Closing Date referred
to in Section 3 (each, a “Representation Date”) that:

 

(a)                                  A
registration statement on Form S-3 (No. 333-108164), including a prospectus
contained in the registration statement relating to the Registered Securities,
has been filed with the Securities and Exchange Commission (“Commission”) and
such registration statement has become effective. Such registration statement,
including the prospectus constituting part of such registration statement and
all information incorporated therein by reference, in the form and at the time
such registration statement or any post-effective amendment thereto prior to
the execution of the applicable Terms Agreement became effective, is
hereinafter referred to as the “Registration Statement,” and the final
prospectus and prospectus supplement reflecting the terms of the Securities and
the terms of offering thereof, including all information incorporated therein
by reference, in the form and at the time such prospectus and prospectus
supplement were first furnished to the Underwriters for use in connection with
the offering of such Securities, are hereinafter collectively referred to as
the “Prospectus.”

 

All references
in this Agreement to financial statements and schedules and other information
which is “in” or “disclosed”, “contained”, “included” or “stated” (or other
references of like import) in the Registration Statement, Prospectus or
preliminary prospectus shall be deemed to include all such financial statements
and schedules and other information which is incorporated by reference in the
Registration Statement at the time it or any post-effective amendment prior to
the execution of the applicable Terms Agreement became effective or in the Prospectus
or preliminary prospectus at the time of the execution of the applicable Terms Agreement,
as the case may be; and all references in this Agreement to amendments or supplements
to the Registration Statement, Prospectus or preliminary prospectus shall be
deemed to include the filing of any document under the Securities Exchange Act
of 1934, as amended (“Exchange Act”), which is incorporated by reference in the
Registration Statement, the Prospectus or the preliminary prospectus after the
execution of the applicable Terms Agreement.

 

(b)                                 On
each effective date of the Registration Statement or any post-effective amendment
thereto and each Representation Date, such Registration Statement and each post-effective
amendment thereto conformed, conforms and will conform in all respects to the requirements
of the Securities Act of 1933, as amended (“Act”), the Exchange Act, the Trust Indenture
Act of 1939, as amended (“Trust Indenture Act”), and the rules and regulations
of the Commission (“Rules and Regulations”) and did not, does not and will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein
not misleading. On the date of each Terms Agreement and the Closing Date
related thereto, the Prospectus and each amendment or supplement thereto conforms
and will conform in all respects to the requirements of the Act, the Trust
Indenture Act and the Rules and Regulations and does not and will not include
any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. No representation,
warranty or agreement is made by the Company as to any written information furnished
to the Company by any Underwriter through the Representatives, if any,
specifically for use in the Registration Statement or any post-effective
amendment thereto and the Prospectus or any amendment or supplement thereto.

 

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(c)                                  The
consolidated historical financial statements, together with the related notes
thereto, set forth or incorporated by reference in the Registration Statement
or the Prospectus comply as to form in all material respects with the
requirements of Regulation S-X under the Act applicable to registration
statements on Form S-3 under the Act. Such historical financial statements
fairly present in all material respects the financial position of the Company and
its consolidated subsidiaries at the respective dates indicated and the results
of operations and cash flows of the Company and its consolidated subsidiaries
for the respective periods indicated, in each case in accordance with generally
accepted accounting principles (“GAAP”) consistently applied throughout such
periods. The other historical financial information and data included in the
Prospectus is, in all material respects, accurately presented and true and
correct. Neither consolidated pro forma financial information of the Company
nor historical financial statements of any entity other than the Company are
required under the Act or the Rules and Regulations to be included in the
Registration Statement or the Prospectus.

 

3.                                       Purchase
and Offering of Securities. The obligation of the Underwriters to purchase
the Securities will be evidenced by an exchange of a Terms Agreement
substantially in the form of Annex I attached hereto (“Terms Agreement”) at the
time the Company determines to sell the Securities. The Terms Agreement will
incorporate by reference the provisions of this Agreement, except as otherwise
provided therein, and will specify the firm or firms which will be
Underwriters, the names of any Representatives, the principal amount to be
purchased by each Underwriter, the initial public offering price, if any, and
the purchase price to be paid by the Underwriters applicable to the Securities
and the terms of the Securities not already specified in the Indenture,
including, but not limited to, interest rate or formula, maturity, any
redemption provisions and any sinking fund requirements and whether any of the
Securities may be sold to institutional investors pursuant to Delayed Delivery
Contracts (as defined below). The Terms Agreement will also specify the time
and date of delivery and payment (such time and date being hereinafter and in
the Terms Agreement referred to as the “Closing Date”), the place of delivery and
payment and any details of the terms of offering that should be reflected in
the Prospectus relating to the offering of the Securities. The obligations of
the Underwriters to purchase the Securities will be several and not joint. It
is understood that the Underwriters propose to offer the Securities for sale as
set forth in the Prospectus. The Securities delivered to the Underwriters on
the Closing Date will be in fully registered definitive or book-entry form, as
specified in the applicable Terms Agreement, and be in such denominations and
registered in such names as the Underwriters may request.

 

If the Terms
Agreement provides for sales of Securities pursuant to delayed delivery contracts,
the Company authorizes the Underwriters to solicit offers to purchase
Securities pursuant to delayed delivery contracts substantially in the form of
Annex II attached hereto (“Delayed Delivery Contracts”) with such changes
therein as the Company may authorize or approve. Delayed Delivery Contracts are
to be made only with institutional investors, including commercial and savings
banks, insurance companies, pension funds, investment companies and educational
and charitable institutions. On the Closing Date the Company will pay, as compensation,
to the Representatives for the accounts of the Underwriters, the fee set forth
in such Terms Agreement in respect of the principal amount of Securities to be
sold pursuant to Delayed Delivery Contracts (“Contract Securities”). The
Underwriters will not have any responsibility in respect of the validity or the
performance of Delayed Delivery Contracts. If the Company executes and delivers
Delayed Delivery Contracts, the Contract Securities will be

 

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deducted from the Securities to be purchased
by the several Underwriters and the aggregate principal amount of Securities to
be purchased by each Underwriter will be reduced pro rata in proportion to the
principal amount of Securities set forth opposite each Underwriter’s name in such
Terms Agreement, except to the extent that the Representatives determine that
such reduction shall be otherwise than pro rata and so advise the Company. The
Company will advise the Representatives not later than the business day prior
to the Closing Date of the principal amount of Contract Securities.

 

4.                                       Certain
Agreements of the Company. The Company agrees with the several Underwriters
that it will furnish to Sidley Austin Brown & Wood LLP, counsel for the Underwriters, one conformed copy of the
Registration Statement, including all exhibits, in the form it became effective
and of all post-effective amendments thereto and that, in connection with each
offering of Securities:

 

(a)                                  The
Company will file the Prospectus with the Commission pursuant to and in
accordance with Rule 424(b) not later than the second business day following
the execution and delivery of the Terms Agreement.

 

(b)                                 The
Company will advise the Representatives promptly of any proposal to amend or
supplement the Registration Statement or the Prospectus and will afford the Representatives
a reasonable opportunity to comment on any such proposed amendment or supplement;
and the Company will also advise the Representatives promptly of the filing of
any such amendment or supplement and of the institution by the Commission of
any stop order proceedings in respect of the Registration Statement or of any
part thereof and will use its best efforts to prevent the issuance of any such
stop order and to obtain as soon as possible its lifting, if issued.

 

(c)                                  If,
at any time when a prospectus relating to the Securities is required to be delivered
under the Act, any event occurs as a result of which the Registration Statement
or the Prospectus as then amended or supplemented would include an untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, or if it is necessary at any time to amend the
Registration Statement or the Prospectus to comply with the Act or the Rules
and Regulations, the Company promptly will prepare and file with the Commission
an amendment or supplement which will correct such statement or omission or an
amendment which will effect such compliance. Neither the Representatives’
consent to, nor the Underwriters’ delivery of, any such amendment or supplement
shall constitute a waiver of any of the conditions set forth in Section 5.

 

(d)                                 The
Company will timely file such reports pursuant to the Exchange Act as are
necessary in order to make generally available to its securityholders as soon
as practicable an earnings statement for the purposes of, and to provide the benefits
contemplated by, the last paragraph of Section 11(a) of the Act.

 

(e)                                  The
Company will furnish to the Representatives copies of the Registration
Statement, including all exhibits, any related preliminary prospectus, any
related

 

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preliminary prospectus supplement, the
Prospectus and all amendments and supplements to such documents, in each case
as soon as available and in such quantities as are reasonably requested.

 

(f)                                    The
Company will arrange for the qualification of the Securities for sale and the
determination of their eligibility for investment under the laws of such
jurisdictions as the Representatives shall reasonably designate and will
continue such qualifications in effect so long as required for the distribution
of the Securities; provided, however, that the Company shall not be obligated
to file any general consent to service of process or to qualify as a foreign corporation
in any jurisdiction in which it is not so qualified.

 

(g)                                 During
the period of five years after the date of any Terms Agreement, the Company
will furnish to the Representatives and, upon request, to each of the other Underwriters,
if any, as soon as practicable after the end of each fiscal year, a copy of its
annual report to stockholders for such year; and the Company will furnish to
the Representatives (i) as soon as available, a copy of each report on Form
10-K or 10-Q or definitive proxy statement of the Company filed with the
Commission under the Exchange Act, or mailed to stockholders, and (ii) from
time to time, such other information concerning the Company as the
Representatives may reasonably request.

 

(h)                                 The
Company will pay all expenses incident to the performance of its obligations
under this Agreement and each Terms Agreement and will reimburse the Underwriters
for any expenses (including fees and disbursements of counsel) incurred by them
in connection with qualification of the Registered Securities for sale under
the laws of such jurisdictions as the Representatives may reasonably designate
and the printing of memoranda relating thereto, for any fees charged by
investment rating agencies for the rating of the Securities and for expenses
incurred in distributing the Prospectus, any preliminary prospectuses and any
preliminary prospectus supplements to Underwriters.

 

(i)                                     For
a period beginning at the time of execution of the Terms Agreement and ending
one business day after the Closing Date, the Company will not, without the
prior consent of the Representatives, offer, sell, contract to sell or
otherwise dispose of any publicly sold (including pursuant to Rule 144A of the
Act) United States dollar-denominated debt securities issued or guaranteed by
the Company and having a maturity of more than one year from the date of issue.

 

5.                                       Conditions
of the Obligations of the Underwriters. The obligations of the several Underwriters
to purchase and pay for the Securities that are the subject of the applicable
Terms Agreement will be subject to the accuracy of the representations and
warranties on the part of the Company herein on the date hereof and at the time
of execution of such Terms Agreement and on the Closing Date, to the accuracy
of the statements of Company officers made pursuant to the provisions hereof,
to the performance by the Company of its obligations hereunder and to the following
additional conditions precedent:

 

(a)                                  The
Prospectus shall have been filed with the Commission in accordance with the
Rules and Regulations and Section 4(a) of this Agreement. The Registration
Statement shall have become effective under the Act and no stop order
suspending the effectiveness of the Registration Statement or of any part
thereof shall have been issued and no proceedings for that

 

5

 

purpose shall have been instituted or, to the
knowledge of the Company or any Underwriter, shall be contemplated by the
Commission.

 

(b)                                 Subsequent
to the execution of the Terms Agreement, there shall not have occurred (i) any
change, or any development involving a prospective change, in or affecting particularly
the properties, assets, operations, business or condition (financial or
otherwise) of the Company or its subsidiaries which, in the judgment of the
Representatives, is so material and adverse as to make it impractical or
inadvisable to proceed with the offering or the delivery of the Securities or
the Registered Securities as contemplated by the Registration Statement and the
Prospectus; (ii) any downgrading in (or withdrawal of) the rating of any debt
securities of the Company by Standard & Poor’s Corporation or Moody’s
Investors Service, Inc., or any public announcement that either such
organization has under surveillance or review its rating of any debt securities
of the Company (other than an announcement with positive implications of a possible
upgrading, and no implication of a possible downgrading, of such rating); (iii)
any suspension or limitation of trading in securities generally on the New York
Stock Exchange, or any setting of minimum prices or trading on such exchange,
or any suspension of trading of any securities of the Company on any exchange
or in the over-the-counter market; (iv) any banking moratorium declared by
Federal or New York authorities or a material disruption in commercial banking
or securities settlement or clearance services; or (v) a material adverse
change in the financial markets in the United States or in the international
financial markets, or any outbreak or escalation of major hostilities in which
the United States is involved, any declaration of war by Congress or any other
substantial national or international calamity or emergency if, in the judgment
of the Representatives, the effect of any such outbreak, escalation,
declaration, calamity or emergency makes it impractical or inadvisable to
proceed with completion of the sale of and payment for the Securities.

 

(c)                                  The
Underwriters shall have received an opinion, dated the Closing Date, of Briggs
and Morgan, Professional Association, counsel for the Company, to the effect
that:

 

(i)                                     The
Company has been duly incorporated and is an existing corporation in good
standing under the laws of the State of Delaware, with corporate power and
authority to own, lease and operate its properties and conduct its business as described
in the Prospectus; the Company is duly qualified to do business as a foreign corporation
in good standing in all jurisdictions in which it owns or leases substantial properties
or in which the conduct of its business requires such qualification, except where
the failure to so qualify would not, individually or in the aggregate, have a
material adverse effect on the properties, assets, operations, business or
condition (financial or otherwise) of the Company and its subsidiaries, taken
as a whole; each “significant subsidiary” (as defined in Regulation S-X of the
Commission) of the Company has been duly incorporated and is an existing
corporation in good standing under the laws of the jurisdiction of its
incorporation, with corporate power and authority to own, lease and operate its
properties and conduct its business as described in the Prospectus; each such significant
subsidiary of the Company is in good standing and is duly qualified to do business
as a foreign corporation in all jurisdictions in which it owns or leases
substantial properties or in which the conduct of its business requires such
qualification, except where the failure to be in good standing or so qualify
would not, individually or in the aggregate, have a material adverse effect on
the properties, assets, operations, business or

 

6

 

condition
(financial or otherwise) of the Company and its subsidiaries, taken as a whole;
all of the issued and outstanding capital stock of each such significant
subsidiary has been duly authorized and validly issued and is fully paid and
non-assessable, and all of such capital stock is owned by the Company, directly
or through subsidiaries, free and clear of any mortgage, pledge, lien,
encumbrance, claim or equity;

 

(ii)                                  The
Securities have been duly authorized by the Company and the terms thereof have
been established in accordance with the Indenture; and when duly executed and
authenticated in accordance with the provisions of the Indenture and delivered
to the Underwriters in accordance with this Agreement and the Terms Agreement
against payment of the agreed upon consideration therefor, the Securities will constitute
valid and legally binding obligations of the Company, entitled to the benefits of
the Indenture and enforceable against the Company in accordance with their
terms, subject to (a) bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating
to or affecting the enforcement of creditors’ rights, (b) to general principles
of equity (regardless of whether enforceability is considered in a proceeding
in equity or at law), (c) any requirement that a claim with respect to any
Security denominated in other than U.S. dollars (or a judgment denominated in
other than U.S. dollars in respect of such claim) be converted into U.S. dollars
at a rate of exchange prevailing on a date determined in accordance with applicable
law and (d) governmental authority to limit, delay or prohibit the making of payments
outside of the United States or in a foreign currency or currency unit;

 

(iii)                               The
Securities and the Indenture conform in all material respects to the
description thereof contained in the Prospectus;

 

(iv)                              The
Indenture has been duly authorized, executed and delivered by the Company, has
been duly qualified under the Trust Indenture Act and constitutes a valid and
legally binding obligation of the Company, enforceable against the Company in accordance
with its terms, subject to (a) bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting
the enforcement of creditors’ rights, (b) to general principles of equity (regardless
of whether enforceability is considered in a proceeding in equity or at law), (c)
any requirement that a claim with respect to any Security denominated in other
than U.S. dollars (or a judgment denominated in other than U.S. dollars in
respect of such claim) be converted into U.S. dollars at a rate of exchange
prevailing on a date determined in accordance with applicable law and (d)
governmental authority to limit, delay or prohibit the making of payments
outside of the United States or in a foreign currency or currency unit;

 

(v)                                 Each
document filed pursuant to the Exchange Act and incorporated by reference in
the Prospectus (other than the financial statements and the notes thereto and
the supporting schedules and other financial or statistical data derived therefrom
contained or incorporated by reference therein, as to which no opinion need be given)
complied when filed, or as subsequently amended, as to form in all material respects
with the Exchange Act and the Rules and Regulations thereunder;

 

7

 

(vi)                              No
consent, approval, authorization or order of, or filing with, any governmental
agency or body or any court is required by the Company for the consummation of
the transactions contemplated by this Agreement and the Terms Agreement in
connection with the issuance or sale of the Securities by the Company, except
such as have been obtained and made under the Act and the Trust Indenture Act and
such as may be required under state securities laws or Blue Sky laws of various
jurisdictions;

 

(vii)                           The
Registration Statement has become effective under the Act, the Prospectus was
duly filed with the Commission pursuant to the subparagraph of Rule 424(b)
specified in such opinion on the date specified therein, and, to the knowledge
of such counsel, no stop order suspending the effectiveness of the Registration
Statement or of any part thereof has been issued and no proceedings for that
purpose have been instituted or are pending or threatened under the Act; the
Registration Statement, as of its effective date, the date of the Terms
Agreement and the applicable Closing Date, and the Prospectus, as of the date
of the Terms Agreement and the applicable Closing Date, and any amendment or
supplement thereto, as of its date, complied and comply as to form in all material
respects with the requirements of the Act, the Exchange Act, the Trust Indenture
Act and the Rules and Regulations; the information in the Prospectus under the captions
“Description of the Notes” and “Description of the Debt Securities” is accurate
in all material respects; it being understood that such counsel need express no
opinion or belief as to the financial statements and the notes thereto, and the
supporting schedules and other financial or statistical data derived therefrom
contained or incorporated by reference in the Registration Statement or the
Prospectus;

 

(viii)                        This
Agreement and the Terms Agreement have each been duly authorized, executed and
delivered by the Company;

 

(ix)                                The
execution, delivery and performance of the Indenture, this Agreement and the
Terms Agreement, and the issuance and sale of the Securities and compliance
with the terms and provisions thereof did not and will not result in a breach or
violation of any of the terms and provisions of, or constitute a default under,
any law, statute, rule, regulation, judgment or order of any governmental
agency or body or any court having jurisdiction over the Company or any
subsidiary of the Company or any of their properties or any contract,
indenture, mortgage, loan agreement, note, deed of trust, lease or other
instrument to which the Company or any such subsidiary is a party or by which
the Company or any such subsidiary is bound or to which any of the properties
of the Company or any such subsidiary is subject; and such action will not
result in any violation of the provisions of the charter or by-laws of the
Company or any such subsidiary; the Company has the power and authority to
authorize, issue and sell the Securities as contemplated by this Agreement and
the Terms Agreement;

 

(x)                                   The
Company is not, and upon the issuance and sale of the Securities and the
application of the net proceeds therefrom as described in the Prospectus will
not be, an “investment company” within the meaning of the Investment Company
Act of 1940, as amended;

 

8

 

(xi)                                To
the best of such counsel’s knowledge and information, there is not pending or
threatened any action, suit, proceeding, inquiry or investigation to which the
Company or any of its subsidiaries thereof is a party or to which the assets,
properties or operations of the Company or any of its subsidiaries thereof is
subject, before or by any court or governmental agency or body, domestic or
foreign, which might reasonably be expected to result in a material adverse
change in the properties, assets, operations, business or condition (financial
or otherwise) of the Company and its subsidiaries taken as a whole or which
might reasonably be expected to materially and adversely affect the assets, properties
or operations thereof or the consummation of the transactions contemplated
under the Terms Agreement or the performance by the Company of its obligations
thereunder or under the Indenture or the Securities;

 

(xii)                             To
the best of such counsel’s knowledge and information, (A) there are no
contracts, indentures, mortgages, loan agreements, notes, deeds of trust, leases
or other instruments required to be described or referred to in the
Registration Statement or to be filed as exhibits thereto, other than those
described or referred to therein or filed or incorporated by reference as
exhibits thereto, and (B) no default exists in the due performance or
observance of any obligation, agreement, covenant or condition contained in any
contract, indenture, mortgage, loan agreement, note, deed of trust, lease or
other instrument which breach would, individually or in the aggregate, have a
material adverse effect on the properties, assets, operations, business or
condition (financial or otherwise) of the Company and its subsidiaries, taken
as a whole; and

 

(xiii)                          Nothing
has come to such counsel’s attention that causes such counsel to believe that
the Registration Statement or any post-effective amendment thereto, as of its
effective date, the date of the Terms Agreement or the applicable Closing Date,
contained or contains, as the case may be, any untrue statement of a material
fact or omitted or omits to state, as the case may be, any material fact
required to be stated therein or necessary to make the statements therein not
misleading or that the Prospectus or any amendment or supplement thereto, as of
its date, the date of the Terms Agreement or the applicable Closing Date,
included or includes, as the case may be, any untrue statement of a material
fact or omitted or omits to state, as the case may be, any material fact
necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; and the descriptions in the Registration
Statement and Prospectus of statutes, legal and governmental proceedings and
contracts and other documents constitute an accurate summary of such statutes, proceedings,
contracts and other documents in all material respects; it being understood that
such counsel need express no opinion or belief as to the financial statements
and the notes thereto, and the supporting schedules and other financial or
statistical data derived therefrom contained or incorporated by reference in
the Registration Statement or the Prospectus.

 

(d)                                 The
Underwriters shall have received from Sidley Austin Brown & Wood LLP, counsel for the Underwriters, such
opinion or opinions, dated the Closing Date, with respect to the Securities,
the disclosure in the Registration Statement and the Prospectus and other related
matters as they may require, and the Company shall have furnished to such
counsel such documents as they request for the purpose of enabling them to pass
upon such matters.

 

9

 

(e)                                  The
Underwriters shall have received a certificate, dated the Closing Date, of the
Chairman and Chief Executive Officer or any Vice President and the principal
financial or accounting officer of the Company in which such officers, to the
best of their knowledge after reasonable investigation, shall state that the
representations and warranties of the Company in this Agreement are true and
correct, that the Company has complied with all agreements and satisfied all
conditions on its part to be performed or satisfied hereunder at or prior to
the Closing Date, that no stop order suspending the effectiveness of the
Registration Statement or of any part thereof has been issued and no
proceedings for that purpose have been instituted or are contemplated by the
Commission and that, subsequent to the date of the most recent financial statements
of the Company in or incorporated by reference in the Prospectus, there has
been no material adverse change in the properties, assets, operations, business
or condition (financial or otherwise) of the Company and its subsidiaries taken
as a whole except as set forth in or contemplated by the Prospectus.

 

(f)                                    The
Underwriters shall have received a letter or letters, dated the Closing Date,
of KPMG LLP, confirming that they are independent public accountants within the
meaning of the Act and the applicable published Rules and Regulations
thereunder and stating in effect that:

 

(i)                                     in
their opinion, the financial statements and schedules audited by them and
included or incorporated by reference in the Registration Statement or the Prospectus
comply in form in all material respects with the applicable accounting requirements
of the Act and the Exchange Act and the related published Rules and Regulations;

 

(ii)                                  they
have performed the procedures specified by the American Institute of Certified
Public Accountants for a review of interim financial information as described
in Statement of Auditing Standards No. 100, Interim Financial Information, on any
unaudited financial statements included or incorporated by reference in the Registration
Statement or the Prospectus;

 

(iii)                               on
the basis of the review, if any, referred to in clause (ii) above, a reading of
the latest available interim financial statements of the Company, inquiries of officials
of the Company who have responsibility for financial and accounting matters and
other specified procedures, nothing came to their attention that caused them to
believe that:

 

(A)                              the
unaudited consolidated financial statements, if any, included or incorporated
by reference in the Registration Statement or the Prospectus do not comply as
to form in all material respects with the applicable accounting requirements of
the Act and the Exchange Act and the related published Rules and Regulations or
any material modification should be made to such unaudited financial statements
for them to be in conformity with generally accepted accounting principles;

 

(B)                                the
unaudited summary financial information, if any, included or incorporated by
reference in the Registration Statement or the

 

10

 

Prospectus
does not agree with the amounts set forth in the unaudited consolidated
financial statements from which it was derived or was not determined on a basis
substantially consistent with that of the audited financial statements included
or incorporated by reference in the Registration Statement or the Prospectus;

 

(C)                                at
the date of the latest available balance sheet read by such accountants, there
was any change in the capital stock or any increase in long-term debt,
including current maturities, or decrease in total shareholders’ equity of the
Company and consolidated subsidiaries, in each case as compared with amounts
shown on the latest balance sheet included or incorporated by reference in the
Registration Statement or the Prospectus; and at a subsequent specified date not
more than three business days prior to the Closing Date, there was any change greater
than three percent in the capital stock or any increase greater than five percent
in long-term debt, including current maturities, or decrease greater than 3% in
total shareholders’ equity of the Company and consolidated subsidiaries as compared
with amounts shown on the latest balance sheet included or incorporated by
reference in the Prospectus; and

 

(D)                               for
the period from the date of the latest income statement included or
incorporated by reference in the Prospectus to the closing date of the latest
available income statements read by such accountants, there were any decreases,
as compared with the corresponding period of the preceding year, in consolidated
net sales, operating income or net income of the Company and consolidated
subsidiaries; and for the period from the closing date of the latest available
income statement included or incorporated by reference in the Registration
Statement or the Prospectus to a subsequent specified date not more than three
business days prior to the Closing Date, there were any decreases, as compared
with the corresponding period in the preceding year, in consolidated net sales,
operating income or net income of the Company and consolidated subsidiaries;

 

except in all
cases set forth in clauses (C) and (D) above for changes, increases or decreases
which the Registration Statement and the Prospectus disclose have occurred or
may occur;

 

(iv)                              in
addition to the procedures specified in clause (ii) above, they have carried
out certain other limited procedures of a nature customarily the subject of independent
auditors’ comfort letters with respect to (A) specified dollar amounts (or percentages
derived from such dollar amounts) and (B) other financial information of a nature
customarily the subject of independent auditors’ comfort letters, which is contained
or incorporated by reference in the Registration Statement or the Prospectus, including,
without limitation, the ratios of earnings to fixed charges, and have found
such dollar amounts, percentages and other financial information to be in
agreement with the relevant accounting and financial records specified in such
letter, except as otherwise specified in such letter.

 

11

 

The Company
will furnish the Representatives with such additional copies of such opinions,
certificates, letters and documents as they reasonably request.

 

6.                                       Indemnification
and Contribution.

 

(a)                                  The
Company will indemnify and hold harmless each Underwriter against any losses,
claims, damages or liabilities, joint or several, to which such Underwriter may
become subject, under the Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are
based upon any untrue statement or alleged untrue statement of any material
fact contained in the Registration Statement, the Prospectus, or any amendment
or supplement thereto, or any related preliminary prospectus or preliminary prospectus
supplement, or arise out of or are based upon the omission or alleged omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, and will reimburse each Underwriter
for any legal or other expense reasonably incurred by such Underwriter in
connection with investigating or defending any such loss, claim, damage,
liability or action as such expenses are incurred; provided, however, that the Company
will not be liable in any such case to the extent that any such loss, claim,
damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement in or omission or alleged omission from any of such
documents in reliance upon and in conformity with written information furnished
to the Company by any Underwriter through the Representatives, if any,
specifically for use therein.

 

(b)                                 Each
Underwriter will indemnify and hold harmless the Company against any losses,
claims, damages or liabilities to which the Company may become subject, under
the Act or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the
Registration Statement, the Prospectus, or any amendment or supplement thereto,
or any related preliminary prospectus or preliminary prospectus supplement, or
arise out of or are based upon the omission or the alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, in each case to the extent, but only to the
extent, that such untrue statement or alleged untrue statement or omission or
alleged omission was made in reliance upon and in conformity with written
information furnished to the Company by such Underwriter through the
Representatives, if any, specifically for use therein, and will reimburse the
Company for any legal or other expenses reasonably incurred by the Company in
connection with investigating or defending any such loss, claim, damage,
liability or action as such expenses are incurred.

 

(c)                                  Promptly
after receipt by an indemnified party under this Section 6 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof
is to be made against the indemnifying party under subsection (a) or (b) above,
notify the indemnifying party of the commencement thereof, but the omission so
to notify the indemnifying party will not relieve it from any liability which
it may have to any indemnified party otherwise than under subsection (a) or (b)
above. In the case of parties indemnified pursuant to subsection (a) above,
counsel to the indemnified parties shall be selected by the Representatives
and, in the case of parties indemnified pursuant to subsection (b) above,
counsel to the indemnified parties shall be selected by the Company. An indemnifying
party will be entitled to participate in the defense of any such action;
provided, however, that counsel to the indemnifying party shall not,

 

12

 

except with the consent of the indemnified
party, also be counsel to the indemnifying party). In no event shall the
indemnifying party be liable to such indemnified party under this Section 6 for
the fees and expenses of more than one counsel (in addition to local counsel)
separate from its own counsel for all indemnified parties in connection with
any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances.

 

(d)                                 If
the indemnification provided for in this Section 6 is unavailable or insufficient
to hold harmless an indemnified party under subsection (a) or (b) above, then
each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of the losses, claims, damages or liabilities
referred to in subsection (a) or (b) above (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one
hand and the Underwriters on the other from the offering of the Securities or
(ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault
of the Company on the one hand and the Underwriters on the other in connection with
the statements or omissions which resulted in such losses, claims, damages or
liabilities as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand and the Underwriters
on the other shall be deemed to be in the same proportion as the total net
proceeds from the offering (before deducting expenses) received by the Company
bear to the total underwriting discounts and commissions received by the Underwriters.
The relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Company or the Underwriters and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such untrue
statement or omission. The Company and the Underwriters agree that it would not
be just and equitable if contribution pursuant to this subsection (d) were determined
by pro rata allocation (even if the Underwriters were treated as one entity) or
by any other method of allocation that does not take into account the equitable
considerations referred to in this subsection (d). The amount paid by an
indemnified party as a result of the losses, claims, damages or liabilities
referred to in the first sentence of this subsection (d) shall be deemed to include
any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any action or claim which is the
subject of this subsection (d).  Notwithstanding
the provisions of this subsection (d), no Underwriter shall be required to contribute
any amount in excess of the amount by which the total price at which the
Securities underwritten by it and distributed to the public were offered to the
public exceeds the amount of any damages which such Underwriter has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’
obligations in this subsection (d) to contribute are several in proportion to
their respective underwriting obligations and not joint.

 

(e)                                  The
obligations of the Company under this Section 6 shall be in addition to any
liability which the Company may otherwise have and shall extend, upon the same
terms and conditions, to each person, if any, who controls any Underwriter
within the meaning of the Act; and the obligations of the Underwriters under
this Section shall be in addition to any

 

13

 

liability which the respective Underwriters
may otherwise have and shall extend, upon the same terms and conditions, to
each director of the Company, to each officer of the Company who has signed the
Registration Statement and to each person, if any, who controls the Company
within the meaning of the Act.

 

7.                                       Default
of Underwriters. If any Underwriter defaults or Underwriters default in their
obligations to purchase Securities under the Terms Agreement and the aggregate
principal amount of the Securities that such defaulting Underwriter or
Underwriters agreed but failed to purchase does not exceed 10% of the total
principal amount of the Securities, the Representatives may make arrangements
satisfactory to the Company for the purchase of such Securities by other persons,
including any of the Underwriters, but if no such arrangements are made by the
Closing Date, the non-defaulting Underwriters shall be obligated severally, in
proportion to their respective commitments under the Terms Agreement, to
purchase the Securities that such defaulting Underwriters agreed but failed to
purchase. If any Underwriter defaults or Underwriters default and the aggregate
principal amount of the Securities with respect to which such default or
defaults occur exceeds 10% of the total principal amount of the Securities and arrangements
satisfactory to the Representatives and the Company for the purchase of such Securities
by other persons are not made within 36 hours after such default, such Terms Agreement
will terminate without liability on the part of any nondefaulting Underwriter
or the Company, except as provided in Section 8. As used in this Agreement, the
term “Underwriter” includes any person substituted for an Underwriter under
this Section. Nothing herein will relieve a defaulting Underwriter from
liability for its default. The respective commitments of the several
Underwriters for the purposes of this Section shall be determined without
regard to reduction in the respective Underwriters’ obligations to purchase the
principal amounts of the Securities set forth opposite their names in the Terms
Agreement as a result of Delayed Delivery Contracts entered into by the
Company.

 

The foregoing
obligations and agreements set forth in this Section will not apply if the Terms
Agreement specifies that such obligations and agreements will not apply.

 

8.                                       Survival
of Certain Representations and Obligations. The respective indemnities, agreements,
representations, warranties and other statements of the Company or its officers
and of the several Underwriters set forth in or made pursuant to this Agreement
or in the Terms Agreement will remain in full force and effect, regardless of
any investigation, or statement as to the results thereof, made by or on behalf
of any Underwriter, the Company or any of their respective representatives,
officers or directors or any controlling person and will survive delivery of
and payment for the Securities. If the Terms Agreement is terminated pursuant
to Section 7 or if for any reason the purchase of the Securities by the
Underwriters under the Terms Agreement is not consummated, the Company shall
remain responsible for the expenses to be paid or reimbursed by it pursuant to
Section 4 and the respective obligations of the Company and the Underwriters
pursuant to Section 6 shall remain in effect. If the purchase of the Securities
by the Underwriters is not consummated for any reason other than solely because
of the termination of this Agreement pursuant to Section 7 or the occurrence of
any event specified in clause (iii) (other than with respect to the Company’s
securities), (iv) or (v) of Section 5(b), the Company will reimburse the
Underwriters for all out-of-pocket expenses (including fees and disbursements of
counsel) reasonably incurred by them in connection with the offering of the
Securities.

 

14

 

9.                                       Notices.
All communications hereunder will be in writing and, if sent to the Underwriters,
will be mailed, delivered or telegraphed and confirmed to them c/o J.P. Morgan Securities
Inc., 270 Park Avenue, New York, New York 10017, Attention: High Grade
Syndicate Desk, 8th Floor, Fax: 212-834-6081 or, if sent
to the Company, will be mailed, delivered or telegraphed and confirmed to it at
PepsiAmericas, Inc., 4000 Dain Rauscher Plaza, 60 South Sixth Street,
Minneapolis, Minnesota 55402, Attention: Secretary.

 

10.                                 Successors.
This Agreement will inure to the benefit of and be binding upon the Company and
such Underwriters as are identified in Terms Agreements and their respective successors
and the officers and directors and controlling persons referred to in Section
6, and no other person will have any right or obligation hereunder.

 

11.                                 Applicable
Law. This Agreement and the Terms Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

 

15

 

If the
foregoing correctly sets forth our agreement, please indicate your acceptance
hereof in the space provided for that purpose below.

 

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PEPSIAMERICAS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Alexander H. Ware

  	
   

  
	
   

  	
   

  	
  Name:
  Alexander H. Ware

  
	
   

  	
   

  	
  Title: Executive Vice President and

  Chief Financial Officer

  

 

CONFIRMED AND ACCEPTED, as of

the date first above written:

 

CITIGROUP GLOBAL MARKETS INC.

J.P. MORGAN SECURITIES INC.

BANC OF AMERICA SECURITIES LLC

WACHOVIA CAPITAL MARKETS, LLC

BNP PARIBAS SECURITIES CORP.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

WELLS FARGO SECURITIES, LLC

LOOP CAPITAL MARKETS, LLC

 

	
  By:

  	
  J.P. MORGAN
  SECURITIES INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Robert
  Bottamedi

  	
   

  
	
   

  	
  Name: 

  	
  Robert
  Bottamedi

  
	
   

  	
  Title:

  	
  Vice
  President

  
				

 

 

On behalf of itself and the

other Underwriters

 

16

 

ANNEX
I

 

PEPSIAMERICAS,
INC.

(“COMPANY”)

 

DEBT
SECURITIES

 

TERMS
AGREEMENT

 

                          ,
200  

 

PepsiAmericas, Inc.

4000 Dain Rauscher Plaza

60 South Sixth Street

Minneapolis, Minnesota 55402

Attention:

 

Dear Sirs:

 

On behalf of
the several Underwriters named in Schedule A hereto (“Underwriters”) and for
their respective accounts, we offer to purchase, on and subject to the terms
and conditions of the Underwriting Agreement dated, 200   between
PepsiAmericas, Inc. and the Underwriters (“Underwriting Agreement”), the
following securities (“Securities”) on the following terms:

 

Title: [        %]
[FLOATING RATE]—Notes,—Debentures—Due [YEAR]

 

Principal
Amount: $                      .

 

Interest: [ %
PER ANNUM, FROM, 200  , PAYABLE [FREQUENCY] ON [DATES], COMMENCING
200  , TO HOLDERS OF RECORD ON THE PRECEDING                     
OR                 ,
AS THE CASE MAY BE.] [ZERO COUPON.]

 

Maturity:                                       ,
        .

 

Optional
Redemption: [NONE][SPECIFY TERMS]

 

Sinking Fund:
[YES][NO]

 

Delayed
Delivery Contracts: [NONE] [SPECIFY TERMS]

 

Purchase
Price:         % of principal amount[,
plus accrued interest[, IF ANY,] from                   ,
200  ].

 

[Initial
Public Offering Price:         % of
principal amount, plus accrued interest [, IF ANY,] from             ,
200  ].

 

Form:                                                       

 

I-1

 

Closing: A.M.
on                                     ,
200  , at             
in Federal (same day) funds.

 

Representative[s]:
[NAME[S] AND ADDRESS[ES]]

 

The respective
principal amounts of the Securities to be purchased by each of the Underwriters
are set forth opposite their names in Schedule A hereto.

 

It is
understood that we may, with your consent, amend this offer to add additional Underwriters
and reduce the aggregate principal amount to be purchased by the Underwriters listed
in Schedule A hereto by the aggregate principal amount to be purchased by such
additional Underwriters.

 

The provisions
of the Underwriting Agreement are incorporated herein by reference.

 

The Securities
will be made available for checking and packaging at the office of                 
at least 24 hours prior to the Closing Date.

 

Please signify
your acceptance of the foregoing by return wire not later than 3:00 P.M. today.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  [NAME AND
  SIGNATURE BLOCK FOR

  UNDERWRITER(S)]

  

 

I-2

 

SCHEDULE
A

 

	
  Underwriter

  	
   

  	
  Principal

  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [UNDERWRITER(S)]

  	
   

  	
  $

  	
    

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
    

  	
   

  

 

I-3

 

ANNEX
II

 

                          ,
200  

 

DELAYED
DELIVERY CONTRACT

 

PepsiAmericas, Inc.

c/o

 

 

Gentlemen:

 

The
undersigned hereby agrees to purchase from PepsiAmericas, Inc., a Delaware corporation
(“Company”), and the Company agrees to sell to the undersigned, as of the date hereof,
for delivery on                       ,
200   (“Delivery Date”).

 

	
   

  	
  $                          

  

 

principal amount of the Company’s                               
securities (“Securities”), offered by the Company’s Prospectus dated                     ,
200  , and a Prospectus Supplement dated                       ,
200   relating thereto, receipt of copies of which is hereby
acknowledged, at       % of the principal amount
thereof plus accrued interest, if any, and on the further terms and conditions
set forth in this Delayed Delivery Contract (“Contract”).

 

Payment for
the Securities that the undersigned has agreed to purchase for delivery on the Delivery
Date shall be made to the Company or its order by certified or official bank
check in Federal (same day) funds at the office of                             
at 10:00 A.M. on the Delivery Date upon delivery to the undersigned of the
Securities to be purchased by the undersigned for delivery on such Delivery
Date in definitive fully registered form and in such denominations and registered
in such names as the undersigned may designate by written or telegraphic communication
addressed to the Company not less than five full business days prior to the Delivery
Date.

 

It is
expressly agreed that the provisions for delayed delivery and payment are for
the sole convenience of the undersigned; that the purchase hereunder of
Securities is to be regarded in all respects as a purchase as of the date of
this Contract; that the obligation of the Company to make delivery of and
accept payment for, and the obligation of the undersigned to take delivery of
and make payment for, Securities on the Delivery Date shall be subject only to
the conditions that (1) investment in the Securities shall not at the Delivery
Date be prohibited under the laws of any jurisdiction in the United States to
which the undersigned is subject and (2) the Company shall have sold to the
Underwriters the total principal amount of the Securities less the principal amount
thereof covered by this and other similar Contracts. The undersigned represents
that its investment in the Securities is not, as of the date hereof, prohibited
under the laws of any jurisdiction to which the undersigned is subject and
which governs such investment.

 

II-1

 

Promptly after
completion of the sale to the Underwriters the Company will mail or deliver to
the undersigned at its address set forth below notice to such effect,
accompanied by a copy of the opinion of counsel for the Company delivered to
the Underwriters in connection therewith.

 

This Contract
will inure to the benefit of and be binding upon the parties hereto and their respective
successors, but will not be assignable by either party hereto without the
written consent of the other.

 

It is
understood that the acceptance of any such Contract is in the Company’s sole discretion
and, without limiting the foregoing, need not be on a first-come, first-served
basis. If this Contract is acceptable to the Company, it is requested that the
Company sign the form of acceptance below and mail or deliver one of the
counterparts hereof to the undersigned at its address set forth below. This
will become a binding contract between the Company and the undersigned when
such counterpart is so mailed or delivered.

 

	
   

  	
  Yours very truly,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME OF PURCHASER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [TITLE OF SIGNATORY]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [ADDRESS OF PURCHASER]

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted, as of the above date.

  	
   

  
	
   

  	
   

  
	
  PEPSIAMERICAS, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
					

 

II-2Exhibit 10.2

 

PEPSIAMERICAS,
INC.

 

DEBT
SECURITIES

 

TERMS
AGREEMENT

 

May 11, 2005

 

PepsiAmericas, Inc.

4000 Dain Rauscher Plaza

60 South Sixth Street

Minneapolis, Minnesota 55402

Attention: Alexander H. Ware

 

Ladies and Gentlemen:

 

On behalf of
the several Underwriters named in the table below (“Underwriters”) and for their
respective accounts, we offer to purchase, on and subject to the terms and
conditions of the Underwriting Agreement dated May 11, 2005 between
PepsiAmericas, Inc. (“Company”) and the Underwriters (“Underwriting Agreement”),
$250,000,000 aggregate principal amount of its 5.00% Notes due 2017 (the “2017
Notes”) and $250,000,000 aggregate principal amount of its 5.50% Notes due 2035
(the “2035 Notes”, and together with the “2017 Notes”, the “Securities”) in the
respective amounts set forth below opposite their respective names at the
respective purchase prices set forth below.

 

	
  Underwriter

  	
   

  	
  Principal Amount of

  2017 Notes

  	
   

  	
  Principal Amount of

  2035 Notes

  	
   

  
	
  Citigroup Global Markets Inc.

  	
   

  	
  $

  	
  75,000,000

  	
   

  	
  $

  	
  75,000,000

  	
   

  
	
  J.P. Morgan Securities Inc.

  	
   

  	
  75,000,000

  	
   

  	
  75,000,000

  	
   

  
	
  Banc of America Securities LLC

  	
   

  	
  47,500,000

  	
   

  	
  47,500,000

  	
   

  
	
  Wachovia Capital Markets, LLC

  	
   

  	
  25,000,000

  	
   

  	
  25,000,000

  	
   

  
	
  BNP Paribas Securities Corp.

  	
   

  	
  10,000,000

  	
   

  	
  10,000,000

  	
   

  
	
  Merrill Lynch, Pierce, Fenner & Smith
  Incorporated

  	
   

  	
  10,000,000

  	
   

  	
  10,000,000

  	
   

  
	
  Wells Fargo Securities, LLC

  	
   

  	
  5,000,000

  	
   

  	
  5,000,000

  	
   

  
	
  Loop Capital Markets, LLC

  	
   

  	
  2,500,000

  	
   

  	
  2,500,000

  	
   

  
	
  Total:

  	
   

  	
  $

  	
  250,000,000

  	
   

  	
  $

  	
  250,000,000

  	
   

  

 

The 2017 Notes shall have the following
terms:

 

Title: 5.00%
Notes due 2017.

 

Interest Rate:
5.00% per year.

 

 

Stated
Maturity: May 15, 2017, unless redeemed earlier at the Company’s option.

 

Principal
Amount: $250,000,000.

 

Denominations:
$1,000 and integral multiples in excess thereof.

 

Interest
Payment Dates: Payable semiannually in arrears on each May 15 and November 15,
beginning November 15, 2005, to holders of record on the immediately preceding
May 1 or November 1, as the case may be.

 

Issue Date:
May 18, 2005.

 

Interest
Accrual: From and including the Issue Date to but excluding May 15, 2017 or
earlier redemption, computed on the basis of a 360-day year consisting of twelve
30-day months.

 

Original Issue
Discount: None.

 

Price to
Public: 99.182% of principal amount, plus accrued interest, if any, from and
including the Issue Date.

 

Purchase Price
(to be paid in immediately available funds): 98.507% of the principal amount.

 

Optional
Redemption by Company: Redeemable, in whole or in part, at the Company’s option
at any time and from time to time upon not fewer than 30 nor more than 60 days’
prior written notice to the holders thereof, at the Redemption Price, together
with unpaid interest accrued to the Redemption Date.

 

The “Redemption
Price” equals the greater of:

 

(1)         100% of the principal amount of the
2017 Notes being redeemed;

 

and

 

(2)         as determined by an
Independent Investment Banker, the sum of the present values of the remaining
scheduled payments of principal and interest on the 2017 Notes being redeemed
from the Redemption Date (exclusive of interest payable on such Redemption
Date) through the Stated Maturity, discounted to the Redemption Date on a
semiannual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Rate plus 0.15%.

 

“Comparable
Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining
term of the 2017 Notes to be redeemed that would be used, at the time of
selection and in accordance with customary financial practice, in pricing new issues
of corporate debt securities of comparable maturity to the remaining term of
the 2017 Notes to be redeemed.

 

2

 

 “Comparable Treasury Price” means, with
respect to any Redemption Date, (i) the arithmetic average of at least three
Reference Treasury Dealer Quotations for such Redemption Date, after excluding
the highest and lowest such Reference Treasury Dealer Quotations or (ii) if
fewer than five Reference Treasury Dealer Quotations are obtained, the
arithmetic mean of all such obtained Reference Treasury Dealer Quotations.

 

“Independent
Investment Banker” means one of the Redemption Treasury Dealers appointed by
the Trustee after consultation with the Company.

 

“Redemption
Date” means the date or dates specified by the Company for the redemption of
the 2017 Notes pursuant to the Company’s optional redemption right.

 

“Redemption
Treasury Dealer” means each of Citigroup Global Markets Inc., J.P. Morgan Securities
Inc., Banc of America Securities LLC, Wachovia Capital Markets, LLC, BNP
Paribas Securities Corp., Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Wells Fargo Brokerage Services LLC, Loop Capital Markets, LLC and
their respective successors. If any of the Redemption Treasury Dealers ceases
to be a primary U.S. government securities dealer in New York City (a “Primary
Treasury Dealer”), we may substitute another Primary Treasury Dealer.

 

“Reference
Treasury Dealer Quotations” means, with respect to each Redemption Treasury
Dealer and any Redemption Date, the arithmetic average, as determined by the
Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed
in each case as a percentage of its principal amount) quoted in writing to the
Trustee by such Redemption Treasury Dealer at 5:00 p.m. (New York City time) on
the third Business Day before such Redemption Date.

 

“Treasury Rate”
means, with respect to any Redemption Date, (i) the yield, under the heading
which represents the average for the week immediately prior to the third
Business Day before such Redemption Date, appearing in the most recently published
statistical release designated H.15(519) or any successor publication which is
published weekly by the Federal Reserve and which established yields on
actively traded United States Treasury securities adjusted to constant maturity
under the caption “Treasury Constant Maturities,” for the maturity
corresponding to the remaining term of the 2017 Notes to be redeemed (if no maturity
is within three months before or after such remaining term, yields for the two
published maturities most closely corresponding to such remaining term shall be
determined and the Treasury Rate shall be interpolated or extrapolated from
such yields on a straight-line basis, rounding to the nearest month) or (ii) if
such release (or any successor release) is not published during the week
preceding the third Business Day before such Redemption Date or does not
contain such yields, the rate per annum equal to the semiannual equivalent
yield to maturity of the Comparable Treasury Issue for the 2017 Notes to be
redeemed, calculated using a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury Price
for such Redemption Date.

 

3

 

Optional
Redemption by Holder: None.

 

Sinking Fund:
None.

 

Trade Date:
May 11, 2005.

 

Closing (Issue
Date): 9:30 a.m., Minneapolis, Minnesota time, May 18, 2005 in federal (same
day) funds payable to the Company’s account.

 

Delayed
Delivery Contracts: None.

 

Representatives:
Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.

 

Exact name in
which the 2017 Notes are to be registered (registered owner): Cede & Co.

 

Settlement and
Trading: Book-entry only via DTC.

 

The 2035 Notes shall have the following
terms:

 

Title: 5.50%
Notes due 2035.

 

Interest Rate:
5.50% per year.

 

Stated
Maturity: May 15, 2035, unless redeemed earlier at the Company’s option.

 

Principal Amount:
$250,000,000.

 

Denominations:
$1,000 and integral multiples in excess thereof.

 

Interest
Payment Dates: Payable semiannually in arrears on each May 15 and November 15,
beginning November 15, 2005, to holders of record on the immediately preceding
May 1 or November 1, as the case may be.

 

Issue Date:
May 18, 2005.

 

Interest
Accrual: From and including the Issue Date to but excluding May 15, 2035 or
earlier redemption, computed on the basis of a 360-day year consisting of twelve
30-day months.

 

Original Issue
Discount: None.

 

Price to
Public: 99.419% of principal amount, plus accrued interest, if any, from and
including the Issue Date.

 

Purchase Price
(to be paid in immediately available funds): 98.544% of the principal amount.

 

4

 

Optional
Redemption by Company: Redeemable, in whole or in part, at the Company’s option
at any time and from time to time upon not fewer than 30 nor more than 60 days’
prior written notice to the holders thereof, at the Redemption Price, together
with unpaid interest accrued to the Redemption Date.

 

The “Redemption
Price” equals the greater of:

 

(1)         100% of the principal
amount of the 2035 Notes being redeemed; 

 

and

 

(2)         as determined by an
Independent Investment Banker, the sum of the present values of the remaining
scheduled payments of principal and interest on the 2035 Notes being redeemed
from the Redemption Date (exclusive of interest payable on such Redemption
Date) through the Stated Maturity, discounted to the Redemption Date on a
semiannual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Rate plus 0.20%.

 

“Comparable
Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining
term of the 2035 Notes to be redeemed that would be used, at the time of
selection and in accordance with customary financial practice, in pricing new issues
of corporate debt securities of comparable maturity to the remaining term of
the 2035 Notes to be redeemed.

 

“Comparable
Treasury Price” means, with respect to any Redemption Date, (i) the arithmetic
average of at least three Reference Treasury Dealer Quotations for such Redemption
Date, after excluding the highest and lowest such Reference Treasury Dealer
Quotations or (ii) if fewer than five Reference Treasury Dealer Quotations are
obtained, the arithmetic mean of all such obtained Reference Treasury Dealer Quotations.

 

“Independent
Investment Banker” means one of the Redemption Treasury Dealers appointed by
the Trustee after consultation with the Company.

 

“Redemption
Date” means the date or dates specified by the Company for the redemption of
the 2035 Notes pursuant to the Company’s optional redemption right.

 

“Redemption
Treasury Dealer” means each of Citigroup Global Markets Inc., J.P. Morgan
Securities Inc., Banc of America Securities LLC, Wachovia Capital Markets, LLC,
BNP Paribas Securities Corp., Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Wells Fargo Brokerage Services LLC, Loop Capital Markets, LLC and
their respective successors. If any of the Redemption Treasury Dealers ceases
to be a primary U.S. government securities dealer in New York City (a “Primary
Treasury Dealer”), we may substitute another Primary Treasury Dealer.

 

“Reference
Treasury Dealer Quotations” means, with respect to each Redemption Treasury
Dealer and any Redemption Date, the arithmetic average, as determined

 

5

 

by the
Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed
in each case as a percentage of its principal amount) quoted in writing to the
Trustee by such Redemption Treasury Dealer at 5:00 p.m. (New York City time) on
the third Business Day before such Redemption Date.

 

“Treasury Rate”
means, with respect to any Redemption Date, (i) the yield, under the heading
which represents the average for the week immediately prior to the third
Business Day before such Redemption Date, appearing in the most recently published
statistical release designated H.15(519) or any successor publication which is
published weekly by the Federal Reserve and which establishes yields on actively
traded United States Treasury securities adjusted to constant maturity under
the caption “Treasury Constant Maturities,” for the maturity corresponding to
the remaining term of the 2035 Notes to be redeemed (if no maturity is within three
months before or after such remaining term, yields for the two published maturities
most closely corresponding to such remaining term shall be determined and the
Treasury Rate shall be interpolated or extrapolated from such yields on a straight-line
basis, rounding to the nearest month) or (ii) if such release (or any successor
release) is not published during the week preceding the third Business Day
before such Redemption Date or does not contain such yields, the rate per annum
equal to the semiannual equivalent yield to maturity of the comparable Treasury
Issue for the 2035 Notes to be redeemed, calculated using a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such Redemption Date.

 

Optional
Redemption by Holder: None.

 

Sinking Fund:  None.

 

Trade Date:  May 11, 2005.

 

Closing (Issue
Date):  9:30 a.m., Minneapolis, Minnesota time, May 18, 2005 in federal
(same day) funds payable to the Company’s account.

 

Delayed
Delivery Contracts:  None.

 

Representatives:  Citigroup
Global Markets Inc. and J.P. Morgan Securities Inc.

 

Exact name in
which the 2035 Notes are to be registered (registered owner):  Cede
& Co.

 

Settlement and
Trading:  Book-entry only via DTC.

 

Capitalized terms used but not otherwise
defined herein shall have the meaning ascribed to them in the Underwriting
Agreement.

 

The provisions of the Underwriting Agreement
are incorporated herein by reference.

 

6

 

The form of 2017 Note and the form of 2035
Note will be made available for checking at the office of Sidley Austin Brown
& Wood LLP,
787 Seventh Avenue, New York, NY 10019 at least 24 hours prior to the Issue
Date.

 

7

 

Please signify
your acceptance of the foregoing by return wire not later than 3:00 p.m. today.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  CITIGROUP
  GLOBAL MARKETS INC.

  
	
   

  	
  J.P. MORGAN
  SECURITIES INC.

  
	
   

  	
  BANC OF
  AMERICA SECURITIES LLC

  
	
   

  	
  WACHOVIA
  CAPITAL MARKETS, LLC

  
	
   

  	
  BNP PARIBAS
  SECURITIES CORP

  
	
   

  	
  MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

  
	
   

  	
  WELLS FARGO
  SECURITIES, LLC

  
	
   

  	
  LOOP CAPITAL
  MARKETS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  J.P. MORGAN
  SECURITIES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  Bottamedi

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert
  Bottamedi

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
					

 

	
  Accepted and agreed to

  	
   

  
	
  as of the date set forth above.

  	
   

  
	
   

  	
   

  
	
  PEPSIAMERICAS, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Alexander H. Ware

  	
   

  	
   

  
	
  Name: Alexander H. Ware

  	
   

  
	
  Title: Executive Vice President and

  Chief Financial Officer

  	
   

  
				

 

8

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