Document:

EX-10.32

Exhibit 10.32

PBG

PENSION EQUALIZATION PLAN

(PEP)

2009 Restatement

 

 

 

PEP PENSION EQUALIZATION PLAN

Table of Contents

	 	 	 	 	 
	 	 	Page
	 	 	No.
	ARTICLE I
— History and Purpose
	 	 	1	 
	 
	 	 	 	 
	1.1 History of Plan
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II — Definitions and Construction
	 	 	2	 
	 
	 	 	 	 
	2.1 Definitions
	 	 	2	 
	(a) Actuarial Equivalent
	 	 	2	 
	(b) Annuity
	 	 	2	 
	(c) Code
	 	 	2	 
	(d) Company or PBG
	 	 	2	 
	(e) Compensation Limitation
	 	 	2	 
	(f) Effective Date
	 	 	2	 
	(g) ERISA
	 	 	2	 
	(h) Participant
	 	 	2	 
	(i) PBG Organization
	 	 	3	 
	(j) PEP Pension
	 	 	3	 
	(k) PepsiCo Prior Plan
	 	 	3	 
	(l) Plan
	 	 	3	 
	(m) Plan Administrator
	 	 	3	 
	(n) Plan Year
	 	 	3	 
	(o) Primary Social Security Amount
	 	 	3	 
	(p) Salaried Plan
	 	 	4	 
	(q) Salaried Plan Participant
	 	 	4	 
	(r) Section 409A
	 	 	4	 
	(s) Section 415 Limitation
	 	 	4	 
	(t) Separation from Service
	 	 	4	 
	(u) Single Lump Sum
	 	 	4	 
	(v) Specified Employee
	 	 	4	 
	(w) Vested Pension
	 	 	5	 
	 
	 	 	 	 
	2.2 Construction
	 	 	5	 
	(a) Gender and Number
	 	 	5	 
	(b) Compounds of the Word “Here”
	 	 	5	 
	 
	 	 	 	 
	ARTICLE
III — Participation
	 	 	5	 
	 
	 	 	 	 
	ARTICLE
IV — Amount of Retirement Pension
	 	 	6	 

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	 	 	Page
	 	 	No.
	4.1 PEP Pension
	 	 	6	 
	(a) Same Form as Salaried Plan
	 	 	6	 
	(b) Different Form than Salaried Plan
	 	 	6	 
	 
	 	 	 	 
	4.2 PEP Guarantee
	 	 	7	 
	(a) Eligibility
	 	 	7	 
	(b) PEP Guarantee Formula
	 	 	7	 
	 
	 	 	 	 
	4.3 Certain Adjustments
	 	 	9	 
	(a) Adjustments for Rehired Participants
	 	 	9	 
	(b) Adjustment for Increased Pension Under Other Plans
	 	 	9	 
	 
	 	 	 	 
	4.4 Reemployment of Certain Participants
	 	 	10	 
	 
	 	 	 	 
	4.5 Vesting; Misconduct
	 	 	10	 
	 
	 	 	 	 
	ARTICLE V
— Death Benefits
	 	 	10	 
	 
	 	 	 	 
	5.1 Death Benefits
	 	 	10	 
	 
	 	 	 	 
	ARTICLE
VI — Distributions
	 	 	11	 
	 
	 	 	 	 
	6.1 Form and Timing of Distributions
	 	 	11	 
	(a) Time and Form of Payment of Grandfathered Benefit
	 	 	11	 
	(b) Time and Form of Payment of Non-Grandfathered Benefit
	 	 	11	 
	 
	 	 	 	 
	6.2 Special Rules for Survivor Options
	 	 	12	 
	(a) Effect of Certain Deaths
	 	 	12	 
	(b) Nonspouse Beneficiaries
	 	 	13	 
	 
	 	 	 	 
	6.3 Designation of Beneficiary
	 	 	13	 
	 
	 	 	 	 
	6.4 Determination of Single Lump Sum Amounts
	 	 	13	 
	(a) Vested Pensions
	 	 	13	 
	(b) 2008 Reorganization
	 	 	13	 
	 
	 	 	 	 
	6.5 Section 162(m) Postponement
	 	 	13	 
	 
	 	 	 	 
	ARTICLE
VII — Administration
	 	 	14	 
	 
	 	 	 	 
	7.1 Authority to Administer Plan
	 	 	14	 
	 
	 	 	 	 
	7.2 Facility of Payment
	 	 	14	 
	 
	 	 	 	 
	7.3 Claims Procedure
	 	 	14	 
	 
	 	 	 	 
	7.4 Effect of Specific References
	 	 	15	 
	 
	 	 	 	 
	7.5 Limitations on Actions
	 	 	15	 
	 
	 	 	 	 
	ARTICLE
VIII — Miscellaneous
	 	 	15	 
	 
	 	 	 	 
	8.1 Nonguarantee of Employment
	 	 	15	 

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	 	 	Page
	 	 	No.
	8.2 Nonalienation of Benefits
	 	 	16	 
	 
	 	 	 	 
	8.3 Unfunded Plan
	 	 	16	 
	 
	 	 	 	 
	8.4 Action by the Company
	 	 	16	 
	 
	 	 	 	 
	8.5 Indemnification
	 	 	16	 
	 
	 	 	 	 
	8.6 Applicable Law
	 	 	16	 
	 
	 	 	 	 
	8.7 Withholding
	 	 	16	 
	 
	 	 	 	 
	ARTICLE
IX — Amendment and Termination
	 	 	16	 
	 
	 	 	 	 
	9.1 Continuation of the Plan
	 	 	17	 
	 
	 	 	 	 
	9.2 Amendments
	 	 	17	 
	 
	 	 	 	 
	9.3 Termination
	 	 	17	 
	 
	 	 	 	 
	APPENDIX
	 	 	18	 
	 
	 	 	 	 
	Foreword
	 	 	18	 
	 
	 	 	 	 
	Article IPO — Transferred and Transition Individuals
	 	 	18	 
	 
	 	 	 	 
	Article B — Special Cases
	 	 	19	 
	 
	 	 	 	 
	Article C
— Transfers From/To PepsiCo, Inc.
	 	 	20	 

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ARTICLE I – History and Purpose

     1.1 History of Plan. The Pepsi Bottling Group, Inc. (the “Company”) established the PBG
Pension Equalization Plan (“PEP” or “Plan”) effective April 6, 1999 for the benefit of salaried
employees of the PBG Organization who participate in the PBG Salaried Employees Retirement Plan
(“Salaried Plan”). The Plan was amended by a First Amendment effective as of May 26, 1999. The
Plan was further amended and completely restated effective January 1, 2006. The Plan provides
benefits for eligible employees whose pension benefits under the Salaried Plan are limited by the
provisions of the Internal Revenue Code of 1986, as amended. In addition, the Plan provides
benefits for certain eligible employees based on the pre-1989 Salaried Plan formula. The Plan is
intended as a nonqualified unfunded deferred compensation plan for federal income tax purposes.
For purposes of the Employee Retirement Income Security Act of 1974 (“ERISA”), the Plan is
structured as two plans. The portion of the Plan that provides benefits based on limitations
imposed by Section 415 of the Internal Revenue Code (the “Code”) is intended to be an “excess
benefit plan” as described in Section 4(b)(5) of ERISA. The portion of the Plan that provides
benefits based on limitations imposed by Section 401(a)(17) of the Code is intended to be a plan
described in Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA providing benefits to a select group
of management or highly-compensated employees.

     The Plan was initially established as a successor plan to the PepsiCo Pension Equalization
Plan, due to PBG’s April 6, 1999 initial public offering and the Plan included historical PepsiCo
provisions which are relevant for eligibility and benefit determinations under the Plan. The Plan
was amended and completely restated effective as of January 1, 2006. Subsequent to October 3,
2004, the Plan has been administered in accordance with a good faith interpretation of Section 409A
of the Code and IRS regulations and other guidance thereunder.

     The Company now wishes to further amend and completely restate the Plan, effective as of
January 1, 2009 except as otherwise explicitly provided in the Plan, to comply with Section 409A of
the Code.

     NOW, THEREFORE, the PBG Pension Equalization Plan is hereby amended and completely restated
(the “2009 Restatement”) as follows.

     1.2 Effect of Amendment and Restatement. The Plan as in effect on October 3, 2004 is referred
to herein as the Prior Plan.

     Except as otherwise explicitly provided in Section 6.1(b)(3) of this Plan, a Participant’s
benefit (including death benefits), determined under the terms of the Plan as in effect on October
3, 2004 as if the Participant had terminated employment on December 31, 2004, without regard to any
compensation paid or services rendered after 2004, or any other events affecting the amount of or
the entitlement to benefits (other than the Participant’s survival or the Participant’s election
under the terms of the Plan with respect to the time or form of benefit) (the “Grandfathered
Benefit”) shall be paid at the time and in the form provided by the terms of the Plan as in effect
on October 3, 2004.

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     The benefit of a Participant accrued under this Plan based on all compensation and services
taken into account by the Prior Plan and this Plan, less the Participant’s Grandfathered Benefit,
shall be paid in the times and in the form as provided in this Plan. Except as otherwise
explicitly provided in this Plan, this Plan supersedes the Prior Plan effective January 1, 2009,
with respect to amounts accrued and vested after 2004 by Participants who have not commenced
receiving benefits as of January 1, 2009. The Plan has been administered in accordance with a good
faith interpretation of Section 409A of the Internal Revenue Code and IRS regulations and guidance
thereunder since January 1, 2005. Amounts accrued under this Plan after 2004 shall be treated as
payable under a separate Plan for purposes of Section 409A of the Internal Revenue Code.

ARTICLE II – Definitions and Construction

     2.1 Definitions. The following words and phrases, when used in this Plan, shall have the
meaning set forth below unless the context clearly indicates otherwise. Unless otherwise expressly
qualified by the terms or the context of this Plan, the terms used in this Plan shall have the same
meaning as those terms in the Salaried Plan.

          (a) Actuarial Equivalent. Except as otherwise specifically set forth in the Plan or
any Appendix to the Plan with respect to a specific benefit determination, a benefit of equivalent
value computed on the basis of the factors applicable for such purposes under the Salaried Plan.

          (b) Annuity. A Pension payable as a series of monthly payments for at least the life
of the Participant.

          (c) Code. The Internal Revenue Code of 1986, as amended from time to time.

          (d) Company or PBG. The Pepsi Bottling Group, Inc., a corporation organized and
existing under the laws of the State of Delaware, or its successor or successors.

          (e) Compensation Limitation. Benefits not payable under the Salaried Plan because of
the limitations on the maximum amount of compensation which may be considered in determining the
annual benefit of the Salaried Plan Participant under Section 401(a)(17) of the Code.

          (f) Effective Date. The date upon which this Plan was effective, which is April 6,
1999 (except as otherwise provided herein).

          (g) ERISA. Public Law No. 93-406, the Employee Retirement Income Security Act of
1974, as amended from time to time.

          (h) Participant. An Employee participating in the Plan in accordance with the
provisions of Section 3.1.

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          (i) PBG Organization. The controlled group of organizations of which the Company is a
part, as defined by Code section 414 and regulations issued thereunder. An entity shall be
considered a member of the PBG Organization only during the period it is one of the group of
organizations described in the preceding sentence.

          (j) PEP Pension. One or more payments that are payable to a person who is entitled to
receive benefits under the Plan. The term “Grandfather Benefit” shall be used to refer to the
portion of a PEP Pension that is payable in accordance with the Plan as in effect October 3, 2004
and is not subject to Section 409A.

          (k) PepsiCo Prior Plan. The PepsiCo Pension Equalization Plan.

          (l) Plan. The PBG Pension Equalization Plan, the Plan set forth herein, as it may be
amended from time to time. The Plan is also sometimes referred to as PEP. For periods before
April 6, 1999, references to the Plan refer to the PepsiCo Prior Plan.

          (m) Plan Administrator. The Company, which shall have authority to administer the
Plan as provided in Article VII.

          (n) Plan Year. The 12-month period ending on each December 31st.

          (o) Primary Social Security Amount. In determining Pension amounts, Primary Social
Security Amount shall mean:

          (1) For purposes of determining the amount of a Retirement, Vested or Pre-Retirement
Spouse’s Pension, the Primary Social Security Amount shall be the estimated monthly amount
that may be payable to a Participant commencing at age 65 as an old-age insurance benefit
under the provisions of Title II of the Social Security Act, as amended. Such estimates of
the old-age insurance benefit to which a Participant would be entitled at age 65 shall be
based upon the following assumptions:

          (i) That the Participant’s social security wages in any year prior to
Retirement or severance are equal to the Taxable Wage Base in such year, and

          (ii) That he will not receive any social security wages after Retirement or
severance.

However, in computing a Vested Pension under Section 4.2, the estimate of the old-age
insurance benefit to which a Participant would be entitled at age 65 shall be based upon the
assumption that he continued to receive social security wages until age 65 at the same rate
as the Taxable Wage Base in effect at his severance from employment. For purposes of this
subsection, “social security wages” shall mean wages within the meaning of the Social
Security Act.

- 3 -

 

          (2) For purposes of paragraph (1), the Primary Social Security Amount shall exclude
amounts that may be available because of the spouse or any dependent of the Participant or
any amounts payable on account of the Participant’s death. Estimates of Primary Social
Security Amounts shall be made on the basis of the Social Security Act as in effect at the
Participant’s Severance from Service Date, without regard to any increases in the social
security wage base or benefit levels provided by such Act which take effect thereafter.

          (p) Salaried Plan. The PBG Salaried Employees Retirement Plan, as it may be amended
from time to time. Any references herein to the Salaried Plan for a period that is before the
Effective Date shall mean the PepsiCo Salaried Employees Retirement Plan.

          (q) Salaried Plan Participant. An Employee who is a participant in the Salaried Plan.

          (r) Section 409A. Section 409A of the Code and the applicable regulations and other
guidance issued thereunder.

          (s) Section 415 Limitation. Benefits not payable under the Salaried Plan because of
the limitations imposed on the annual benefit of a Salaried Plan Participant by Section 415 of the
Code.

          (t) Separation from Service. A Participant’s separation from service as defined in
Section 409A; provided that for this purpose the term “service recipient” shall include PepsiCo.,
Inc., so long as PepsiCo., Inc. or a member of the PepsiCo., Inc. controlled group maintains an
ownership interest in the Company of at least 20%.

          (u) Single Lump Sum. The distribution of a Participant’s total PEP Pension in excess
of the Participant’s Grandfathered Benefit in the form of a single payment.

          (v) Specified Employee. The individuals identified in accordance with principles set
forth below.

               (1) General. Any Participant who at any time during the applicable year is:

                    (i) An officer of any member of the PBG Organization having annual compensation greater than
$130,000 (as adjusted under Section 416(i)(1) of the Code);

                    (ii) A 5-percent owner of any member of the PBG Organization; or

                    (iii) A 1-percent owner of any member of the PBG Organization having annual compensation of
more than $150,000.

- 4 -

 

               For purposes of (i) above, no more than 50 employees identified in the order of their annual
compensation shall be treated as officers. For purposes of this section, annual compensation means
compensation as defined in Treas. Reg. § 1.415(c)-2(a), without regard to Treasury Reg. §§
1.415(c)-2(d), 1.415(c)-2(e), and 1.415(c)-2(g). The Plan Administrator shall determine who is a
Specified Employee in accordance with Section 416(i) of the Code and the applicable regulations and
other guidance of general applicability issued thereunder or in connection therewith, and provided
further that the applicable year shall be determined in accordance with Section 409A and that any
modification of the foregoing definition that applies under Section 409A shall be taken into
account.

               (1) Applicable Year. Except as otherwise required by Section 409A, the Plan Administrator
shall determine Specified Employees as of the last day of each calendar year, based on compensation
for such year, and such designation shall be effective for purposes of this Plan for the twelve
month period commencing on April 1st of the next following calendar year.

               (2) Rule of Administrative Convenience. In addition to the foregoing, the Plan Administrator
shall treat all other Employees classified as E5 and above on the applicable determination date
prescribed in subsection (2) (i.e., the last day of each calendar year) as a Specified Employee for
purposes of the Plan for the twelve-month period commencing of the applicable April 1st
date. However, if there are at least 200 Specified Employees without regard to this provision,
then it shall not apply. If there are less than 200 Specified Employees without regard to this
provision, but full application of this provision would cause there to be more than 200 Specified
Employees, then (to the extent necessary to avoid exceeding 200 Specified Employees) those
Employees classified as E5 and above who have the lowest base salaries on such applicable
determination date shall not be Specified Employees.

          (w) Vested Pension. The PEP Pension available to a Participant who has a vested PEP
Pension and is not eligible for a Retirement Pension.

     2.2 Construction. The terms of the Plan shall be construed in accordance with this section.

          (a) Gender and Number. The masculine gender, where appearing in the Plan, shall be
deemed to include the feminine gender, and the singular may include the plural, unless the context
clearly indicates to the contrary.

          (b)
Compounds of the Word “Here”. The words “hereof”, “hereunder” and other similar
compounds of the word “here” shall mean and refer to the entire Plan, not to any particular
provision or section.

ARTICLE III – Participation

- 5 -

 

     3.1 Each Salaried Plan Participant whose benefit under the Salaried Plan is curtailed by the
Compensation Limitation or the Section 415 Limitation, or both, and each other Salaried Plan
Participant whose 1988 pensionable “earnings” under the Salaried Plan, as described in Section
4.2(a), were $75,000 or more shall participate in this Plan.

ARTICLE IV – Amount of Retirement Pension

     4.1 PEP Pension. Subject to Section 4.5, a Participant’s PEP Pension shall equal the amount
determined under (a) or (b) of this Section 4.1, whichever is applicable. Such amount shall be
determined as of the date of the Participant’s Separation from Service.

          (a) Same Form as Salaried Plan. If a Participant’s PEP Pension will be paid in the
same form and will commence as of the same time as his pension under the Salaried Plan, then his
monthly PEP Pension shall be equal to the excess of:

          (1) The greater of (i) the monthly pension benefit which would have been payable to
such Participant under the Salaried Plan without regard to the Compensation Limitation and
the Section 415 Limitation, and (ii) if applicable, the amount determined in accordance with
Section 4.2, expressed in such form and payable as of such time; over

          (2) The amount of the monthly pension benefit that is in fact payable to such Salaried
Plan Participant under the Salaried Plan, expressed in such form and payable as of such
time.

     The amount of the monthly pension benefit so determined, less the portion of such benefit that
is the Participant’s Grandfathered Benefit, shall be payable as provided in Section 6.2.

          (b) Different Form than Salaried Plan. If a Participant’s PEP Pension will be paid in
a different form (whether in whole or in part) or will commence as of a different time than his
pension benefit under the Salaried Plan, his PEP Pension shall be the product of:

          (1) The greater of (i) the monthly pension benefit which would have been payable to
such Participant under the Salaried Plan without regard to the Compensation Limitation and
the Section 415 Limitation, and (ii) if applicable, the amount determined in accordance with
Section 4.2, expressed in the form and payable as of such time as applies to his PEP Pension
under this Plan, multiplied by

          (2) A fraction, the numerator of which is the value of the amount determined in Section
4.1(b)(1), reduced by the value of his pension under the Salaried Plan, and the
denominator of which is the value of the amount determined in Section 4.1(b)(1) (with value
determined on a reasonable and consistent basis, in the discretion of the Plan
Administrator, with respect to similarly situated employees).

- 6 -

 

     The amount of the monthly pension benefit so determined, less the portion of such benefit that
is the Participant’s Grandfathered Benefit, shall be payable as provided in Section 6.2.

     Notwithstanding the above, in the event any portion of the accrued benefit of a Participant
under this Plan or the Salaried Plan is awarded to an alternate payee pursuant to a qualified
domestic relations order, as such terms are defined in Section 414(p) of the Code, the
Participant’s total PEP Pension shall be adjusted, as the Plan Administrator shall determine, so
that the combined benefit payable to the Participant and the alternate payee from this Plan and the
Salaried Plan is the amount determined pursuant to subsections 4.1(a) and (b) above.

     4.2 PEP Guarantee. A Participant who is eligible under subsection (a) below shall be entitled
to a PEP Guarantee benefit determined under subsection (b) below, if any.

          (a) Eligibility. A Participant shall be covered by this section if the Participant
has 1988 pensionable earnings from an Employer of at least $75,000. For purposes of this section,
“1988 pensionable earnings” means the Participant’s remuneration for the 1988 calendar year that
was recognized for benefit accrual received under the Salaried Plan as in effect in 1988. “1988
pensionable earnings” does not include remuneration from an entity attributable to any period when
that entity was not an Employer.

          (b) PEP Guarantee Formula. The amount of a Participant’s PEP Guarantee shall be
determined under paragraph (1), subject to the special rules in paragraph (2).

          (1) Formula. The amount of a Participant’s PEP Guarantee under this paragraph
shall be determined as follows:

          (i) Three percent of the Participant’s Highest Average Monthly Earnings for the
first 10 years of Credited Service, plus

          (ii) One percent of the Participant’s Highest Average Monthly Earnings for each
year of Credited Service in excess of 10 years, less

          (iii) One and two-thirds percent of the Participant’s Primary Social Security
Amount multiplied by years of Credited Service not in excess of 30 years.

     In determining the amount of a Vested Pension, the PEP Guarantee shall first be
calculated on the basis of (I) the Credited Service the Participant would have
earned had he remained in the employ of the Employer until his Normal Retirement
Age, and (II) his Highest Average Monthly Earnings and Primary Social Security
Amount at his Severance from Service Date, and then shall be reduced by multiplying
the resulting amount by a fraction, the numerator of which is the Participant’s
actual years of Credited Service on his Severance from Service Date and the
denominator of which is the years of Credited Service he would

- 7 -

 

     have
earned had he remained in the employ of an Employer until his Normal Retirement
Age.

          (2) Calculation. The amount of the PEP Guarantee shall be determined pursuant
to paragraph (1) above, subject to the following special rules:

          (i) Surviving Eligible Spouse’s Annuity: Subject to subparagraph (iii)
below and the last sentence of this subparagraph, if the Participant has an Eligible
Spouse and has commenced receipt of an Annuity under this section, the Participant’s
Eligible Spouse shall be entitled to receive a survivor annuity equal to 50 percent
of the Participant’s Annuity under this section, with no corresponding reduction in
such Annuity for the Participant. Annuity payments to a surviving Eligible Spouse
shall begin on the first day of the month coincident with or following the
Participant’s death and shall end with the last monthly payment due prior to the
Eligible Spouse’s death. If the Eligible Spouse is more than 10 years younger than
the Participant, the survivor benefit payable under this subparagraph shall be
adjusted as provided below.

          (A) For each full year more than 10 but less than 21 that the surviving
Eligible Spouse is younger than the Participant, the survivor benefit
payable to such spouse shall be reduced by 0.8 percent.

          (B) For each full year more than 20 that the surviving Eligible Spouse
is younger than the Participant, the survivor benefit payable to such spouse
shall be reduced by an additional 0.4 percent.

          This subparagraph applies only to a Participant who retires on or after his
Early Retirement Date.

          (ii) Reductions. The following reductions shall apply in determining a
Participant’s PEP Guarantee.

          (A) If the Participant will receive an Early Retirement Pension, the
payment amount shall be reduced by 3/12ths of 1 percent for each month by
which the benefit commencement date precedes the date the Participant would
attain his Normal Retirement Date.

          (B) If the Participant is entitled to a Vested Pension, the payment
amount shall be reduced to the Actuarial Equivalent of the amount payable at
his Normal Retirement Date (if payment commences before such date), and the
reductions set forth in the Salaried Plan for any Pre-Retirement Spouse’s
coverage shall apply.

          (C) This clause applies if the Participant will receive his PEP
Guarantee in a form that provides an Eligible Spouse benefit,
continuing for the life of the surviving spouse, that is greater than that

- 8 -

 

provided under subparagraph (i). In this instance, the Participant’s
PEP Guarantee under this section shall be reduced so that the total value of
the benefit payable on the Participant’s behalf is the Actuarial Equivalent
of the PEP Guarantee otherwise payable under the foregoing provisions of
this section.

          (D) This clause applies if the Participant will receive his PEP
Guarantee in a form that provides a survivor annuity for a beneficiary who
is not his Eligible Spouse. In this instance, the Participant’s PEP
Guarantee under this section shall be reduced so that the total value of the
benefit payable on the Participant’s behalf is the Actuarial Equivalent of a
Single Life Annuity for the Participant’s life.

          (E) This clause applies if the Participant will receive his PEP
Guarantee in a Annuity form that includes inflation protection described in
the Salaried Plan. In this instance, the Participant’s PEP Guarantee under
this section shall be reduced so that the total value of the benefit payable
on the Participant’s behalf is the Actuarial Equivalent of the elected
Annuity without such protection.

          (iii) Lump Sum Conversion. The amount of the PEP Guarantee determined
under this section for a Participant whose Retirement Pension will be distributed in
the form of a lump sum shall be the Actuarial Equivalent of the Participant’s PEP
Guarantee determined under this section, taking into account the value of any
survivor benefit under subparagraph (i) above and any early retirement reductions
under subparagraph (ii)(A) above.

     4.3 Certain Adjustments. Pensions determined under the foregoing sections of this Article are
subject to adjustment as provided in this section. For purposes of this section, “specified plan”
shall mean the Salaried Plan or a nonqualified pension plan similar to this Plan. A nonqualified
pension plan is similar to this Plan if it is sponsored by a member of the PBG Organization and if
its benefits are not based on participant pay deferrals (this category of similar plans includes
the PepsiCo Prior Plan).

          (a) Adjustments for Rehired Participants. This subsection shall apply to a current or
former Participant who is reemployed after his Annuity Starting Date and whose benefit under the
Salaried Plan is recalculated based on an additional period of Credited Service. In the event of
any such recalculation, the Participant’s PEP Pension shall also be recalculated hereunder. For
this purpose, the PEP Guarantee under Section 4.2 is adjusted for in-service distributions and
prior distributions in the same manner as benefits are adjusted under the Salaried Plan, but by
taking into account benefits under this Plan and any specified plans.

          (b) Adjustment for Increased Pension Under Other Plans. If the benefit paid under a
specified plan on behalf of a Participant is increased after PEP benefits on his behalf
have been determined (whether the increase is by order of a court, by agreement of the plan
administrator of the specified plan, or otherwise), the PEP benefit for the Participant shall

- 9 -

 

be
recalculated. If the recalculation identifies an overpayment hereunder, the Plan Administrator
shall take such steps as it deems advisable to recover the overpayment. It is specifically
intended that there shall be no duplication of payments under this Plan and any specified plans.

     4.4 Reemployment of Certain Participants. In the case of a current or former Participant who
is reemployed and is eligible to reparticipate in the Salaried Plan after his Annuity Starting
Date, payment of his non-Grandfathered PEP Pension will not be suspended. If such Participant
accrues an additional PEP Pension for service after such reemployment, his PEP Pension on his
subsequent Separation from Service shall be reduced by the present value of PEP benefits previously
distributed to such Participant, as determined by the Plan Administrator.

     4.5 Vesting; Misconduct. A Participant shall be fully vested in his Accrued Benefit at the
time he becomes fully vested in his accrued benefit under the Salaried Plan. Notwithstanding the
preceding, or any other provision of the Plan to the contrary, a Participant shall forfeit his or
her entire PEP Pension if the Plan Administrator determines that such Participant has engaged in
“Misconduct” as defined below, determined without regard to whether the Misconduct occurred before
or after the Participant’s Severance from Service. The Plan Administrator may, in its sole
discretion, require the Participant to pay to the Employer any PEP Pension paid to the Participant
within the twelve month period immediately preceding a date on which the Participant engaged in
such Misconduct, as determined by the Plan Administrator.

          “Misconduct” means any of the following, as determined by the Plan Administrator in good
faith: (i) violation of any agreement between the Company or Employer and the Participant,
including but not limited to a violation relating to the disclosure of confidential information or
trade secrets, the solicitation of employees, customers, suppliers, licensors or contractors, or
the performance of competitive services; (ii) violation of any duty to the Company or Employer,
including but not limited to violation of the Company’s Code of Conduct; (iii) making, or causing
or attempting to cause any other person to make, any statement (whether written, oral or
electronic), or conveying any information about the Company or Employer which is disparaging or
which in any way reflects negatively upon the Company or Employer unless required by law or
pursuant to a Company or Employer policy; (iv) improperly disclosing or otherwise misusing any
confidential information regarding the Company or Employer; (v) unlawful trading in the securities
of the Company or of another company based on information garnered as a result of that
Participant’s employment or other relationship with the Company; (vi) engaging in any act which is
considered to be contrary to the best interests of the Company or Employer, including but not
limited to recruiting or soliciting employees of the Employer; or (vii) commission of a felony or
other serious crime or engaging in any activity which constitutes gross misconduct.

ARTICLE V – Death Benefits

     5.1 Death Benefits. Each Participant entitled to a PEP Pension under this Plan who dies
before his Annuity Starting Date shall be entitled to a death benefit equal in amount to the
additional death benefit to which the Participant would have been entitled under the Salaried

- 10 -

 

Plan
if the PEP Pension as determined under Article IV was payable under the Salaried Plan instead of
this Plan. The death benefit with respect to a Participant’s PEP Pension in excess of the
Grandfathered Benefit shall become payable on the Participant’s date of death in a Single Lump Sum
payment.

          Payment of any death benefit of a Participant who dies before his Annuity Starting Date under
the Plan shall be made to the persons and in the proportions to which any death benefit under the
Salaried Plan is or would be paid.

ARTICLE VI – Distributions

     The terms of this Article govern the distribution of benefits to a Participant who becomes
entitled to payment of a PEP Pension under the Plan.

     6.1 Form and Timing of Distributions. Subject to Section 6.5, this Section shall govern the
form and timing of PEP Pensions.

          (a) Time and Form of Payment of Grandfathered Benefit. The Grandfathered Benefit of a
Participant shall be paid in the form and at the time or times provided by the terms of the Plan as
in effect on October 3, 2004.

          (b) Time and Form of Payment of Non-Grandfathered Benefit. Except as provided below,
the PEP Pension payable to a Participant in excess of the Grandfathered Benefit shall be become
payable in a Single Lump Sum on the Separation from Service of the Participant.

          (1) Certain Vested Pensions. A Participant (i) who incurred a Separation from
Service during the period January 1, 2005 through December 31, 2008 (other than a
Participant described in (3) below); and (ii) whose Annuity Starting Date has not occurred
as of January 1, 2009, shall receive his PEP Pension in excess of his Grandfathered Benefit
in a Single Lump Sum which shall become payable on January 1, 2009.

          (2) Annuity Election. A Participant who (i) attained age 50 on or before
January 1, 2009, (ii) on or before December 31, 2008 irrevocably elected to receive a Single
Life Annuity, a 50%, 75% or 100% Joint and Survivor Annuity, or a 10 Year Certain and Life
Annuity; and (iii) incurs a Termination of Employment on or after July 1, 2009 after either
attainment of age 55 and the tenth anniversary of the Participant’s initial employment date
or attainment of age 65 and the fifth anniversary of the Participant’s initial employment
date, shall receive his PEP Pension in excess of his Grandfathered Benefit in the form
elected commencing on the first day of the month coincident with or next following his
Separation from Service. If such Participant Separates from Service
prior to July 1, 2009 or prior to attainment of age 55 and the tenth anniversary of the
Participant’s employment date, or prior to attainment of age 65 and the fifth anniversary of
the Participant’s employment, the Participant’s PEP Pension in

- 11 -

 

excess of his Grandfathered
Pension shall be payable in a Single Lump Sum on the Participant’s Separation from Service.

          (3) 2008 Reorganization. The entire PEP Pension of a Participant who (i) was
involuntarily Separated from Service on or after November 1, 2008 and on or before December
19, 2008; (ii) at the time of Separation from Service had attained age 50 and had not
attained age 55, and had 10 or more years of Service; and (iii) is eligible for special
retirement benefits as described in the letter agreement executed and not revoked by the
Participant, shall become payable in a Single Lump Sum on the last day of the Participant’s
“Transition Period” as defined in the letter agreement.

          (4) Specified Employees. If a Participant is classified as a Specified
Employee at the time of the Participant’s Separation from Service (or at such other time for
determining Specified Employee status as may apply under Section 409A), then no amount shall
be payable pursuant to this Section 6.1(b) until at least six (6) months after such a
Separation from Service. Any payment otherwise due in such six month period shall be
suspended and become payable at the end of such six month period, with interest at the
applicable interest rates used for computing a Single Lump Sum payment on the date of
Separation from Service.

               (5) Actual Date of Payment. An amount payable on a date specified in this Article VI
or in Article V shall be paid as soon as administratively feasible after such date; but no later
than the later of (a) the end of the calendar year in which the specified date occurs; or (b) the
15th day of the third calendar month following such specified date and the Participant
(or Beneficiary) is not permitted to designate the taxable year of the payment. The payment date
may be postponed further if calculation of the amount of the payment is not administratively
practicable due to events beyond the control of the Participant (or Beneficiary), and the payment
is made in the first calendar year in which the calculation of the amount of the payment is
administratively practicable.

     6.2 Special Rules for Survivor Options.

          (a) Effect of Certain Deaths. If a Participant makes an Annuity election described in
Section 6.1(b)(2) and the Participant dies before his Separation from Service, the election shall
be disregarded. Such a Participant may change his coannuitant of a Joint and Survivor Annuity at
any time prior to his Separation from Service, and may change his beneficiary of a Ten Years
Certain and Life Annuity at any time. If the Participant dies after such election becomes
effective but before his non-Grandfathered PEP Pension actually commences, the election shall be
given effect and the amount payable to his surviving Eligible Spouse or other beneficiary shall
commence on the first day of the month following his death (any back payments due the Participant
shall be payable to his estate). In the case of a Participant who elected a 10 Year Certain and
Life Annuity, if such Participant dies: (i) after benefits have commenced; (ii)
without a surviving primary or contingent beneficiary, and (iii) before receiving 120 payments
under the form of payment, then the remaining payments due under such form of payment shall be paid
to the Participant’s estate. If payments have commenced under such form of payment to a
Participant’s primary or contingent beneficiary and

- 12 -

 

such beneficiary dies before payments are
completed, then the remaining payments due under such form of payment shall be paid to such
beneficiary’s estate.

          (b) Nonspouse Beneficiaries. If a Participant’s beneficiary is not his Eligible
Spouse, he may not elect:

          (1) The 100 percent survivor option described in Section 6.1(b)(2) with a nonspouse
beneficiary more than 10 years younger than he is, or

          (2) The 75 percent survivor option described in Section 6.1(b)(2) with a nonspouse
beneficiary more than 19 years younger than he is.

     6.3 Designation of Beneficiary. A Participant who has elected to receive all or part of his
pension in a form of payment that includes a survivor option shall designate a beneficiary who will
be entitled to any amounts payable on his death. Such designation shall be made on a PEP Election
Form. A Participant shall have the right to change or revoke his beneficiary designation at any
time prior to when his election is finally effective. The designation of any beneficiary, and any
change or revocation thereof, shall be made in accordance with rules adopted by the Plan
Administrator. A beneficiary designation shall not be effective unless and until filed with the
Plan Administrator

     6.4 Determination of Single Lump Sum Amounts. Except as otherwise provided below, a Single
Lump Sum payable under Article V or Section 6.1 shall be determined in the same manner as the
single lump sum payment option prescribed in Section 6.1(b)(3) of the Salaried Plan.

          (a) Vested Pensions. If on the date of Separation from Service of a Participant such
Participant is not entitled to retire with an immediate pension under the Salaried Plan, the Single
Lump Sum payable to the Participant under Section 6.1 shall be determined in the same manner as the
single lump sum payment option prescribed in Section 6.1(b)(3) of the Salaried Plan but
substituting (for Plan Years beginning before 2012) the applicable segment rates for the blended
30 year Treasury and segment rates that would otherwise be applicable.

          (b) 2008 Reorganization. Notwithstanding subsection (a) above, the Single Lump Sum
payment for a Participant whose employment was involuntarily terminated as a result of the 2008
Reorganization on or after November 1, 2008 and on or before December 19, 2008 shall be determined
based on the applicable interest rates and mortality used by the Salaried Plan for optional lump
sum distributions in December 2008, provided that in no event shall such Single Lump Sum payment be
less than the Single Lump Sum determined based on the applicable interest rates and mortality used
by the Salaried Plan for lump sum distributions for the month in which the Single Lump Sum is
distributed to the Participant.

     6.5 Section 162(m) Postponement. Notwithstanding any other provision of this Plan to the
contrary, no PEP Pension shall be paid to any Participant prior to the earliest date on which the
Company’s federal income tax deduction for such payment is not precluded by Section 162(m) of the
Code. In the event any payment is delayed solely as a result of the preceding restriction, such

- 13 -

 

payment shall be made as soon as administratively feasible following the first date as of which
Section 162(m) of the Code no longer precludes the deduction by the Company of such payment.
Amounts deferred because of the Section 162(m) deduction limitation shall be increased by simple
interest for the period of delay at the annual rate of six percent (6%).

ARTICLE VII – Administration

     7.1 Authority to Administer Plan. The Plan shall be administered by the Plan Administrator,
which shall have the authority to interpret the Plan and issue such regulations as it deems
appropriate. The Plan Administrator shall maintain Plan records and make benefit calculations, and
may rely upon information furnished it by the Participant in writing, including the Participant’s
current mailing address, age and marital status. The Plan Administrator’s interpretations,
determinations, regulations and calculations shall be final and binding on all persons and parties
concerned. The Company, in its capacity as Plan Administrator or in any other capacity, shall not
be a fiduciary of the Plan for purposes of ERISA, and any restrictions that apply to a party in
interest under section 406 of ERISA shall not apply to the Company or otherwise under the Plan.

     7.2 Facility of Payment. Whenever, in the Plan Administrator’s opinion, a person entitled to
receive any payment of a benefit or installment thereof hereunder is under a legal disability or is
incapacitated in any way so as to be unable to manage his financial affairs, the Plan Administrator
may make payments to such person or to the legal representative of such person for his benefit, or
the Plan Administrator may apply the payment for the benefit of such person in such manner as it
considers advisable. Any payment of a benefit or installment thereof in accordance with the
provisions of this section shall be a complete discharge of any liability for the making of such
payment under the provisions of the Plan.

     7.3 Claims Procedure. The Plan Administrator shall have the exclusive discretionary authority
to construe and to interpret the Plan, to decide all questions of eligibility for benefits and to
determine the amount of such benefits, and its decisions on such matters are final and conclusive.
This discretionary authority is intended to be absolute, and in any case where the extent of this
discretion is in question, the Plan Administrator is to be accorded the maximum discretion
possible. Any exercise of this discretionary authority shall be reviewed by a court, arbitrator or
other tribunal under the arbitrary and capricious standard (i.e., the abuse of
discretion standard). If, pursuant to this discretionary authority, an assertion of any right to a
benefit by or on behalf of a Participant or beneficiary is wholly or partially denied, the Plan
Administrator, or a party designated by the Plan Administrator, will provide such claimant within
the 90-day period following the receipt of the claim by the Plan Administrator, a comprehensible
written notice setting forth:

          (a) The specific reason or reasons for such denial;

          (b) Specific reference to pertinent Plan provisions on which the denial is based;

- 14 -

 

          (c) A description of any additional material or information necessary for the claimant to
submit to perfect the claim and an explanation of why such material or information is necessary;
and

          (d) A description of the Plan’s claim review procedure. The claim review procedure is
available upon written request by the claimant to the Plan Administrator, or the designated party,
within 60 days after receipt by the claimant of written notice of the denial of the claim, and
includes the right to examine pertinent documents and submit issues and comments in writing to the
Plan Administrator, or the designated party. The decision on review will be made within 60 days
after receipt of the request for review, unless circumstances warrant an extension of time not to
exceed an additional 60 days, and shall be in writing and drafted in a manner calculated to be
understood by the claimant, and include specific reasons for the decision with references to the
specific Plan provisions on which the decision is based.

          If within a reasonable period of time after the Plan receives the claim asserted by the
Participant, the Plan Administrator, or the designated party, fails to provide a comprehensible
written notice stating that the claim is wholly or partially denied and setting forth the
information described in (a) through (d) above, the claim shall be deemed denied. Once the claim
is deemed denied, the Participant shall be entitled to the claim review procedure described in
subsection (d) above. Such review procedure shall be available upon written request by the
claimant to the Plan Administrator, or the designated party, within 60 days after the claim is
deemed denied. Any claim under the Plan that is reviewed by a court shall be reviewed solely on
the basis of the record before the Plan Administrator at the time it made its determination.

     7.4 Effect of Specific References. Specific references in the Plan to the Plan
Administrator’s discretion shall create no inference that the Plan Administrator’s discretion in
any other respect, or in connection with any other provision, is less complete or broad.

     7.5 Limitations on Actions. Any claim filed under this Article VII and any action brought in
state or federal court by or on behalf of a Participant or a Beneficiary for the alleged wrongful
denial of Plan benefits or for the alleged interference with ERISA-protected rights must be brought
within three years of the date the Participant’s or Beneficiary’s cause of action first accrues.
Failure to bring any such cause of action within this three-year time frame shall preclude a
Participant or Beneficiary, or any representative of the Participant or Beneficiary, from bringing
the claim or cause of action. Correspondence or other communications following the mandatory
appeals process described in this Article VII shall have no effect on this three-year time frame.

ARTICLE VIII– Miscellaneous

     8.1 Nonguarantee of Employment. Nothing contained in this Plan shall be construed as a
contract of employment between an Employer and any Employee, or as a right of any Employee to be
continued in the employment of an Employer, or as a limitation of the right of an Employer to
discharge any of its Employees, with or without cause.

- 15 -

 

     8.2 Nonalienation of Benefits. Benefits payable under the Plan or the right to receive future
benefits under the Plan shall not be 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 benefits payable hereunder, including
any assignment or alienation in connection with a divorce, separation, child support or similar
arrangement, shall be null and void and not binding on the Company. The Company shall not in any
manner be liable for, or subject to, the debts, contracts, liabilities, engagements or torts of any
person entitled to benefits hereunder.

     8.3 Unfunded Plan. The Company’s obligations under the Plan shall not be funded, but shall
constitute liabilities by the Company payable when due out of the Company’s general funds. To the
extent the Participant or any other person acquires a right to receive benefits under this Plan,
such right shall be no greater than the rights of any unsecured general creditor of the Company.

     8.4 Action by the Company. Any action by the Company under this Plan may be made by the Board
of Directors of the Company or by the Compensation Committee of the Board of Directors, with a
report of any actions taken by it to the Board of Directors. In addition, such action may be made
by any other person or persons duly authorized by resolution of said Board to take such action.

     8.5 Indemnification. Unless the Board of Directors of the Company shall determine otherwise,
the Company shall indemnify, to the full extent permitted by law, any employee acting in good faith
within the scope of his employment in carrying out the administration of the Plan.

     8.6 Applicable Law. All questions pertaining to the construction, validity and effect of the
Plan shall be determined in accordance with the provisions of ERISA. In the event ERISA is not
applicable or does not preempt state law, the laws of the state of New York shall govern.

     If any provision of this Plan is, or is hereafter declared to be, void, voidable, invalid or
otherwise unlawful, the remainder of the Plan shall not be affected thereby.

     8.7 Withholding. The Employer shall withhold from amounts due under this Plan the amount
necessary to enable the employer to remit to the appropriate government entity or entities on
behalf of the Participant as may be required by the federal income tax withholding provisions of
the Code, by an applicable state’s income tax, or by an applicable city, county or municipality’s
earnings or income tax act. The Employer may withhold from the compensation of, or collect from, a
Participant
the amount necessary to remit on behalf of the Participant any FICA taxes which may be
required with respect to amounts accrued by a Participant hereunder as determined by the Employer.

ARTICLE IX – Amendment and Termination

- 16 -

 

     9.1 Continuation of the Plan. While the Company and the Employers intend to continue the Plan
indefinitely, they assume no contractual obligation as to its continuance. In accordance with
Section 8.4, the Company hereby reserves the right, in its sole discretion, to amend, terminate, or
partially terminate the Plan at any time.

     9.2 Amendments. The Company may, in its sole discretion, make any amendment or amendments to
this Plan from time to time, with or without retroactive effect, at any time before the
Participant’s Separation from Service. An Employer (other than the Company) shall not have the
right to amend the Plan. Any amendments made to the Plan shall be subject to any restrictions on
amendment that are applicable to ensure continued compliance under Section 409A.

     9.3 Termination. The Company may terminate the Plan and all other plans aggregated with the
Plan pursuant to Treas. Reg. §1.409A-1(c), subject to the Section 409A distribution timing
provisions and the restrictions on maintaining future deferred compensation arrangements set forth
in Treas. Reg. §1.409A-3(h)(2)(viii) (no new nonqualified plan within three years).

     The Company also may terminate the Plan and distribute all vested accrued benefits in a lump
sum payment within twelve months after a change in control as permitted under Section 409A.

     The Company also may terminate the Plan and distribute all vested accrued benefits in a lump
sum payment as of the date of the corporate dissolution of the Company in a transaction taxable
under Section 331 of the Code or in the event of the bankruptcy of the Company with the approval of
the Bankruptcy Court pursuant to 11 U.S.C. §504(b)(1).

     In addition, the Company may terminate the Plan and distribute all vested benefits as may
otherwise be permitted by the Commissioner of the Internal Revenue Service under Section 409A.

     A termination of the Plan must comply with the provisions of Section 409A, including, but not
limited to, restrictions on the timing of final distributions and the adoption of future deferred
compensation arrangements.

- 17 -

 

APPENDIX

Foreword

     This Appendix sets forth additional provisions applicable to individuals specified in the
Articles of this Appendix. In any case where there is a conflict between the Appendix and the main
text of the Plan, the Appendix shall govern.

Article IPO – Transferred and Transition Individuals

     IPO.1 Scope. This Article supplements the main portion of the Plan document with respect to
the rights and benefits of Transferred and Transition Individuals following the spinoff of this
Plan from the PepsiCo Prior Plan.

     IPO.2 Definitions. This section provides definitions for the following words or phrases in
boldface and underlined. Where they appear in this Article with initial capitals they shall have
the meaning set forth below. Except as otherwise provided in this Article, all defined terms shall
have the meaning given to them in Section 2.1 of the Plan.

          (a) Agreement. The 1999 Employee Programs Agreement between PepsiCo, Inc. and The
Pepsi Bottling Group, Inc.

          (b) Close of the Distribution Date. This term shall take the definition given it in
the Agreement.

          (c) Transferred Individual. This term shall take the definition given it in the
Agreement.

          (d) Transition Individual. This term shall take the definition given it in the
Agreement.

     IPO.3 Rights of Transferred and Transition Individuals. All Transferred Individuals who
participated in the PepsiCo Prior Plan immediately prior to the Effective Date shall be
Participants in this Plan as of the Effective Date. The spinoff of this Plan from the PepsiCo
Prior Plan shall not result in a break in the Service or Credited Service of Transferred
Individuals or Transition Individuals. Notwithstanding anything in the Plan to the contrary, and
as provided in Section 2.04 of the Agreement, all service, all compensation, and all other
benefit-affecting determinations for Transferred Individuals that, as of the Close of the
Distribution Date, were recognized under the PepsiCo Prior Plan for periods immediately before such
date, shall as of the Effective Date continue to receive full recognition, credit and validity and
shall be taken into account under this Plan as if such items occurred under this Plan, except to
the extent that duplication of benefits would result. Similarly, notwithstanding anything to the
contrary in the Plan, the benefits of Transition Individuals shall be determined in accordance with
section 8.02 of the Agreement. 

- 18 -

 

Article B – Special Cases

     B.1 This Article B of the Appendix supplements the main portion of the Plan document and is
effective as of January 28, 2002.

     B.2 This Article shall apply to certain highly compensated management individuals who were (i)
hired as a Band IV on or about January 28, 2002 and (ii) designated by the Senior Vice President of
Human Resources as eligible to receive a supplemental retirement benefit (the “Participant”).

     B.3 Notwithstanding Article IV of the Plan, the amount of the total PEP Pension under this
Plan shall be equal to the excess of (1) the monthly pension benefit which would have been payable
to such individual under the Salaried Plan without regard to the Compensation Limitation and the
Section 415 Limitation, determined as if such individual’s employment commencement date with the
Company were September 10, 1990; (2) the sum of (i) the amount of the monthly pension benefit that
is in fact payable under the Salaried Plan; and (ii) the monthly amount of such individual’s
deferred, vested benefit under any qualified or nonqualified defined benefit pension plan
maintained by PepsiCo., Inc. or any affiliate of PepsiCo., Inc., Tricom or YUM!, as determined by
the administrator using reasonable assumptions to adjust for different commencement dates so that
the total benefit of such individual does not exceed the amount described in (1) above.

     B.4 In the event of the death of such individual while employed by the Company, the
individual’s beneficiary shall be entitled to a death benefit as provided in Article V, determined
based on the formula for the total benefit described above, and reduced by the survivor benefits
payable by the Salaried Plan and the other plans described above. The net amount so determined
shall be payable in a Single Lump Sum as prescribed in Article V.

     B.5 The Plan Administrator shall, in its sole discretion, adjust any benefit determined
pursuant to this Article B to the extend necessary or appropriate to ensure that such individual’s
benefit in the aggregate does not exceed the Company’s intent to ensure overall pension benefits
equal to the benefits that would be applicable if such individual had been continuously employed by
the Company for the period commencing September 10, 1990 to the date of Separation from Service.

- 19 -

 

Article C – Transfers From/To PepsiCo, Inc.

     C.1 This Article supplements and overrides the main portion of the Plan with respect to
Participants who (i) transfer from the Company to PepsiCo, Inc.; and (ii) transfer from PepsiCo,
Inc. to the Company.

     C.2 Notwithstanding Article IV of the Plan, the PEP Pension of a Participant who (i) transfers
from the Company to PepsiCo., Inc. or (ii) transfers to PepsiCo, Inc. from the Company shall be
determined as set forth below.

     C.3 Transfers to PepsiCo, Inc. The PEP Pension of a Participant who transfers to
PepsiCo, Inc. shall be determined as of the date of such transfer in the manner described in
Article IV, including the Salaried Plan offset regardless of whether such benefit under the
Salaried Plan is transferred to a qualified plan of PepsiCo, Inc. On such Participant’s Separation
from Service, the PEP Pension so determined shall become payable in accordance with Article VI.

     C.4 Transfers from PepsiCo., Inc. The PEP Pension of a Participant who transfers from
PepsiCo, Inc. shall be determined as of the date of the Participant’s Separation from Service in
the manner described in Article IV and shall be reduced by any benefit accrued by the Participant
under any qualified or nonqualified plan maintained by PepsiCo, Inc. that is based on credited
service included in the determination of the Participant’s benefit under this Plan so that the
total benefit from all plans does not exceed the benefit the Participant would have received had
the Participant been solely employed by the Company. The Plan Administrator shall make such
adjustments as the Plan Administrator deems appropriate to effectuate the intent of this Section
C.4.

- 20 -EX-10.33

Exhibit 10.33

EXECUTIVE INCOME

DEFERRAL PROGRAM

2009 Restatement

 

 

PBG

Executive Income Deferral Program

2009 Restatement

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I — HISTORY AND PURPOSE
	 	 	1	 
	 
	 	 	 	 
	1.1 History and Purpose
	 	 	1	 
	1.2 Type of Plan
	 	 	1	 
	1.3 Effect of Restatement
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II — DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	2.1 Account
	 	 	2	 
	2.2 Act
	 	 	2	 
	2.3 Base Compensation
	 	 	2	 
	2.4 Beneficiary
	 	 	2	 
	2.5 Bonus Compensation
	 	 	2	 
	2.6 Code
	 	 	2	 
	2.7 Company
	 	 	2	 
	2.8 Deferral Subaccount
	 	 	2	 
	2.9 Distribution Valuation Date
	 	 	2	 
	2.10 Election Form
	 	 	3	 
	2.11 Eligible Executive
	 	 	3	 
	2.12 Employer
	 	 	3	 
	2.13 Executive
	 	 	3	 
	2.14 Mandatory Deferral
	 	 	3	 
	2.15 NAV
	 	 	3	 
	2.16 Participant
	 	 	3	 
	2.17 PBG Organization
	 	 	3	 
	2.18 Performance Period
	 	 	3	 
	2.19 Plan
	 	 	4	 
	2.20 Plan Administrator
	 	 	4	 
	2.21 Plan Year
	 	 	4	 
	2.22 Recordkeeper
	 	 	4	 
	2.23 Retirement
	 	 	4	 
	2.24 Second Look Election
	 	 	4	 
	2.25 Section 409A
	 	 	4	 
	2.26 Separation from Service
	 	 	4	 
	2.27 Specific Payment Date
	 	 	4	 
	2.28 Specified Employee
	 	 	5	 
	2.29 Unforeseeable Emergency
	 	 	5	 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	2.30 Valuation Date
	 	 	6	 
	 
	 	 	 	 
	ARTICLE III — ELIGIBILITY AND PARTICIPATION
	 	 	7	 
	 
	 	 	 	 
	3.1 Eligibility to Participate
	 	 	7	 
	3.2 Termination of Eligibility to Defer
	 	 	7	 
	3.3 Termination of Participation
	 	 	7	 
	 
	 	 	 	 
	ARTICLE IV — DEFERRAL OF COMPENSATION
	 	 	8	 
	 
	 	 	 	 
	4.1 Deferral Election
	 	 	8	 
	4.2 Time and Manner of Deferral Election
	 	 	9	 
	4.3 Period of Deferral
	 	 	10	 
	4.4 Form of Deferral Payment
	 	 	10	 
	4.5 Second Look Election
	 	 	10	 
	4.6 Mandatory Deferrals
	 	 	12	 
	 
	 	 	 	 
	ARTICLE V — INTERESTS OF PARTICIPANTS
	 	 	14	 
	 
	 	 	 	 
	5.1 Accounting for Participants’ Interests
	 	 	14	 
	5.2 Investment Options
	 	 	14	 
	5.3 Method of Allocation
	 	 	15	 
	5.4 Vesting of a Participant’s Account
	 	 	16	 
	 
	 	 	 	 
	ARTICLE VI — DISTRIBUTIONS
	 	 	17	 
	 
	 	 	 	 
	6.1 General Rules
	 	 	17	 
	6.2 Distributions Based on a Specific Payment Date
	 	 	18	 
	6.3 Distributions on Account of a Separation from Service
	 	 	18	 
	6.4 Distributions on Account of Death
	 	 	19	 
	6.5 Distributions on Account of Retirement
	 	 	20	 
	6.6 Distributions on Account of Unforeseeable Emergency
	 	 	20	 
	6.7 Distributions of Mandatory Deferrals
	 	 	21	 
	6.8 Valuation
	 	 	21	 
	6.9 Section 162(m) — Automatic Deferral
	 	 	22	 
	6.10 Impact of Section 16 of the Act on Distributions
	 	 	22	 
	6.11 Actual Date of Payment
	 	 	23	 
	 
	 	 	 	 
	ARTICLE VII — PLAN ADMINISTRATION
	 	 	24	 
	 
	 	 	 	 
	7.1 Plan Administrator
	 	 	24	 
	7.2 Action
	 	 	24	 
	7.3 Powers of the Plan Administrator
	 	 	24	 
	7.4 Compensation, Indemnity and Liability
	 	 	25	 
	7.5 Withholding
	 	 	25	 

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TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	7.6 Conformance with Section 409A
	 	 	26	 
	 
	 	 	 	 
	ARTICLE VIII — CLAIMS PROCEDURE
	 	 	27	 
	 
	 	 	 	 
	8.1 Claims for Benefits
	 	 	27	 
	8.2 Appeals of Denied Claims
	 	 	27	 
	 
	 	 	 	 
	ARTICLE IX — AMENDMENT AND TERMINATION
	 	 	28	 
	 
	 	 	 	 
	9.1 Amendment of Plan
	 	 	28	 
	9.2 Termination of Plan
	 	 	28	 
	 
	 	 	 	 
	ARTICLE X — MISCELLANEOUS
	 	 	29	 
	 
	 	 	 	 
	10.1 Limitation on Participant’s Rights
	 	 	29	 
	10.2 Unfunded Obligation of Individual Employer
	 	 	29	 
	10.3 Receipt or Release
	 	 	29	 
	10.4 Governing Law
	 	 	29	 
	10.5 Adoption of Plan by Related Employers
	 	 	29	 
	10.6 Gender, Tense and Examples
	 	 	29	 
	10.7 Successors and Assigns; Nonalienation of Benefits
	 	 	30	 
	10.8 Facility of Payment
	 	 	30	 

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ARTICLE
I – HISTORY AND PURPOSE

     1.1 History and Purpose. The Pepsi Bottling Group, Inc. (the “Company”) established the PBG
Executive Income Deferral Program (the “Plan”) to permit Eligible Executives to defer base pay and
certain other compensation under its executive compensation programs. The Plan was originally
adopted effective as of April 7, 1999. Thereafter, the Plan was amended and restated in its
entirety effective as of October 11, 2000 (subject to other specific effective dates set forth
therein).

     The earned and vested account balances in the Plan were frozen as of December 31, 2004, except
for adjustments for earnings and losses, because of Section 409A of the Internal Revenue Code
enacted by the American Jobs Creation Act of 2004 (“Section 409A”). Contributions after 2004 and
amounts that were not vested as of December 31, 2004, were credited to separate accounts designed
to comply with Section 409A. This 2009 Restatement governs payment of amounts credited to such
separate accounts.

     1.2 Type of Plan. For federal income tax purposes, the Plan is intended to be a nonqualified
unfunded deferred compensation plan. For purposes of the Employee Retirement Income Security Act
of 1974 (“ERISA”) the Plan is intended to be a plan described in Sections 201(2), 301(a)(3) and
401(a)(1) of ERISA providing benefits to a select group of management or highly compensated
employees.

     1.3 Effect of Restatement. This 2009 Restatement is effective January 1, 2009, except as
otherwise explicitly provided in this document.

     The Plan document as in effect on October 3, 2004, without regard to this amendment and
restatement, is referred to herein as the Pre-409A Program. Each Participant’s vested account as
of December 31, 2004, as adjusted for earnings or losses in accordance with the Pre-409A Program,
are referred to as the Grandfathered Accounts. Payment of benefits credited to Grandfathered
Accounts shall be governed by the Pre-409A Program. The preservation of the terms of the Pre-409A
Program, without material modification, with respect to the Grandfathered Accounts, is intended to
permit the Grandfathered Accounts to remain exempt from Section 409A, and the administration of the
Plan shall be consistent with this intent.

     Contributions for periods on or after January 1, 2005, and amounts that became vested on or
after January 1, 2005, as adjusted for earnings and losses, are credited to separate accounts.
Payment of amounts during the period after 2004 and before 2009 that were credited to such
non-grandfathered accounts were administered in accordance with a good faith interpretation of
Section 409A, as documented in part in interim Plan restatement drafts, Plan summaries and
administration forms.

     On and after January 1, 2009, payment of amounts credited to such non-grandfathered accounts
shall be governed by this 2009 Restatement, as amended from time to time.

 

 

ARTICLE
II – DEFINITIONS

     When used in this 2009 Restatement of the Plan, the following 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 or her Employer to
determine, from time to time, the Participant’s interest under this Plan. The balance in such
Account shall be determined by the Recordkeeper pursuant to any guidelines established by the Plan
Administrator. Each Participant’s Account shall consist of at least one Deferral Subaccount for
each separate deferral under Section 4.1. The Recordkeeper may also establish such additional
Deferral Subaccounts as it deems necessary for the proper administration of the Plan. The
Recordkeeper may also combine Deferral Subaccounts to the extent it deems separate accounts are not
needed for sound recordkeeping. Where appropriate, a reference to a Participant’s Account shall
include a reference to each applicable Deferral Subaccount that has been established thereunder.

     2.2 Act. The Securities Exchange Act of 1934, as amended.

     2.3 Base Compensation. An Eligible Executive’s base salary, to the extent payable in U.S.
dollars from an Employer’s U.S. payroll.

     2.4 Beneficiary. The person or persons (including a trust or trusts) properly designated by a
Participant, as determined by the Plan Administrator, to receive the Participant’s Account in the
event of the Participant’s death.

     2.5 Bonus Compensation. An Eligible Executive’s annual incentive award under his or her
Employer’s annual incentive plan or the PBG Executive Incentive Compensation Plan, to the extent
payable in U.S. dollars from an Employer’s U.S. payroll.

     2.6 Code. The Internal Revenue Code of 1986, as amended from time to time.

     2.7 Company. The Pepsi Bottling Group, Inc. (also referred to herein as “PBG”), a corporation
organized and existing under the laws of the State of Delaware, or its successor or successors.

     2.8 Deferral Subaccount. A Subaccount of a Participant’s Account maintained to reflect his or
her interest in the Plan attributable to each deferral (or separately tracked portion of a
deferral) of Base Compensation and Bonus Compensation, and earnings or losses credited to such
Subaccount in accordance with Section 5.1(b).

     2.9 Distribution Valuation Date. Each date as specified by the Plan Administrator from time to
time as of which Participant Accounts are valued for purposes of a distribution from a
Participant’s Account. The current Distribution Valuation Dates are March 31, June 30, September
30 and December 31. Any current Distribution Valuation Date may be changed by the Plan
Administrator, provided that such change does not result in a change in the time of

- 2 -

 

payment that is
impermissible under Section 409A. Values are determined as of the close of a Distribution
Valuation Date or, if such date is not a business day, as of the close of the immediately preceding
business day.

     2.10 Election Form. The form prescribed by the Plan Administrator on which a Participant
specifies the amount of his or her Base Compensation or Bonus Compensation (or both) to be deferred
and the time and form of his or her deferral payout, pursuant to the provisions of Article IV. An
Election Form need not exist in a paper format, and it is expressly contemplated that the Plan
Administrator may make available for use such technologies, including voice response systems and
electronic forms, as it deems appropriate from time to time.

     2.11 Eligible Executive. The term, Eligible Executive, shall have the meaning given to it in
Section 3.1.

     2.12 Employer. The Company and each of the Company’s subsidiaries and affiliates (if any)
that is currently designated as an Employer by the Plan Administrator. An entity shall be an
Employer hereunder only for the period that it is (i) so designated by the Plan Administrator, and
(ii) a member of the PBG Organization.

     2.13 Executive. Any person in an executive classification of an Employer who (i) is receiving
remuneration for personal services rendered in the employment of the Employer, and (ii) is paid in
U.S. dollars from the Employer’s U.S. payroll.

     2.14 Mandatory Deferral. That portion of an Eligible Executive’s Base Compensation that is
mandatorily deferred under Section 4.6 pursuant to the requirements established by the Compensation
Committee from time to time.

     2.15 NAV. The net asset value of a phantom unit in one of the phantom funds offered for
investment under the Plan, determined as of any date in the same manner as applies on that date
under the actual fund that is the basis of the phantom fund offered by the Plan.

     2.16 Participant. Any Executive who is qualified to participate in this Plan in accordance
with Section 3.1 and who has an Account. An active Participant is one who is currently deferring
under Section 4.1.

     2.17 PBG Organization. The controlled group of organizations of which the Company is a part,
as defined by Sections 414(b)
and (c) of the Code and the regulations issued thereunder. An entity shall be considered a
member of the PBG Organization only during the period it is one of the group of organizations
described in the preceding sentence.

     2.18 Performance Period. The 52/53 week fiscal year of the Employer for which Bonus
Compensation is calculated and determined. A Performance Period shall be deemed to relate to the
Plan Year in which the Performance Period ends.

- 3 -

 

     2.19 Plan. The PBG Executive Income Deferral Program, the plan set forth herein and in the
Pre-409A Program document, as the plan may be amended and restated from time to time (subject to
the limitations on amendment that are applicable hereunder and under the Pre-409A Program).

     2.20 Plan Administrator. The Compensation and Management Development Committee of the Board
of Directors of the Company (the “Compensation Committee”) or its delegate or delegates, which
shall have the authority to administer the Plan as provided in Article VII.

     2.21 Plan Year. The twelve-consecutive month period beginning on January 1 and ending on
December 31.

     2.22 Recordkeeper. For any designated period of time, the party to whom the Plan
Administrator delegates the responsibility to maintain the records of Participant Accounts, process
Participant transactions and perform other duties in accordance with any procedures and rules
established by the Plan Administrator.

     2.23 Retirement. Separation from Service after either (i) attainment of age 55 and the tenth
anniversary of the Participant’s initial employment date; or (ii) attainment of age 65 and the
fifth anniversary of the Participant’s initial employment date.

     For purposes of this section, if a Participant commences employment within the PBG
Organization immediately following employment with PepsiCo, Inc., the Participant’s initial
employment date shall be the date such Participant first became employed by PepsiCo., Inc.

     2.24 Second Look Election. The term Second Look Election shall have the meaning given to it
in Section 4.5.

     2.25 Section 409A. Section 409A of the Code and the applicable regulations and other guidance
of general applicability that are issued thereunder.

     2.26 Separation from Service. A Participant’s separation from service as defined in Section
409A; provided that for this purpose,
the term “service recipient” shall include PepsiCo, Inc. so long as PepsiCo, Inc. or a member
of the PepsiCo, Inc. controlled group maintains an ownership interest in the Company of at least
20%. The term may also be used as a verb (i.e., “Separates from Service”) with no change in
meaning.

     2.27 Specific Payment Date. A specific date selected by an Eligible Executive that triggers a
lump sum payment of a deferral or the start of installment payments for a deferral, as provided in
Section 4.4. The Specific Payment Dates that are available to be selected by Eligible Executives
shall be determined by the Plan Administrator, and the currently available Specific Payment Dates
shall be reflected on the Election Forms that are made available from time to time by the
authorization of the Plan Administrator. In the event that an Election Form only provides

- 4 -

 

for
selecting a month and a year as the Specific Payment Date, the first day of the month that is
selected shall be the Specific Payment Date.

     2.28 Specified Employee. The individuals identified in accordance with the principles set
forth below.

          (a) General. Any Participant who at any time during the applicable year is:

               (1) An officer of any member of the PBG Organization having annual compensation greater than
$130,000 (as adjusted for the applicable year under Section 416(i)(1) of the Code);

               (2) A 5-percent owner of any member of the PBG Organization; or

               (3) A 1-percent owner of any member of the PBG Organization having annual compensation of more
than $150,000.

     For purposes of (1) above, no more than 50 employees identified in the order of their annual
compensation shall be treated as officers. For purposes of this section, annual compensation means
compensation as defined in Treas. Reg. §1.415(c)-2(a), without regard to Treas. Reg.
§§1.415(c)-2(d), 1.415(c)-2(e), and 1.415(c)-2(g). The Plan Administrator shall determine who is a
Specified Employee in accordance with Section 416(i) of the Code and the applicable regulations and
other guidance of general applicability issued thereunder or in connection therewith, and provided
further that the applicable year shall be determined in accordance with Section 409A and that any
modification of the foregoing definition that applies under Section 409A shall be taken into
account.

          (b) Applicable Year. Except as otherwise required by Section 409A, the Plan
Administrator shall determine Specified Employees as of the last day of each calendar year, based
on compensation for such year, and such designation shall be effective for purposes of this Plan
for the twelve month period commencing on April 1st of the next following calendar year.

          (c) Rule of Administrative Convenience. In addition to the foregoing, the Plan
Administrator shall treat all other employees classified as E5 and above on the applicable
determination date prescribed in subsection (b) (i.e., the last day of each calendar year) as a
Specified Employee for purposes of the Plan for the twelve month period commencing on the
applicable April 1st date. However, if there are at least 200 Specified Employees
without regard to this provision, then it shall not apply. If there are less than 200 Specified
Employees without regard to this provision, but full application of this provision would cause
there to be more than 200 Specified Employees, then (to the extent necessary to avoid exceeding 200
Specified Employees) those employees classified as E5 and above who have the lowest base salaries
on such applicable determination date shall not be Specified Employees.

     2.29 Unforeseeable Emergency. A severe financial hardship to the Participant resulting from:

- 5 -

 

          (a) An illness or accident of the Participant, the Participant’s spouse or a dependent (as
defined in Section 152 of the Code, without regard to Sections 152(b)(1), 152(b)(2) and
152(d)(1)(B) of the Code) of the Participant;

          (b) Loss of the Participant’s property due to casualty; or

          (c) Any other similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant.

     The Recordkeeper shall determine the occurrence of an Unforeseeable Emergency in accordance
with Treas. Reg. §1.409A-3(i)(3) and any guidelines established by the Plan Administrator.

     2.30 Valuation Date. Each date, as determined by the Recordkeeper, as of which Participant
Accounts are valued in accordance with Plan procedures that are currently in effect. In accordance
with procedures that may be adopted by the Plan Administrator, any current Valuation Date may be
changed.

- 6 -

 

ARTICLE
III – ELIGIBILITY AND PARTICIPATION

     3.1 Eligibility to Participate.

          (a) In General.

               (1) Subject to the election timing rules of Article IV, an Executive who is classified as
salary band E1 or above shall be eligible to defer compensation under the Plan, provided that an
Eligible Executive who makes an irrevocable election to participate for a Plan Year shall remain an
Eligible Executive for the remainder of that Plan Year regardless of whether such Executive is
subsequently classified in a salary band below E1. An individual who becomes an Eligible Executive
during a Plan Year may make a deferral election for that Plan Year only if such individual
satisfies the requirements for newly-eligible status under Section 409A. Any such election shall
be subject to the election restrictions set forth in Article IV.

               (2) Notwithstanding Paragraph (1) above, from time to time the Plan Administrator may modify,
limit or expand the class of Executives eligible to defer hereunder, pursuant to criteria for
eligibility that need not be uniform among all or any group of Executives; provided that the Plan
Administrator may remove an Executive from eligibility to participate effective only as of the end
of a Plan Year.

          (b) During the period an individual satisfies all of the eligibility requirements of this
section, he or she shall be referred to as an Eligible Executive.

          (c) Each Eligible Executive becomes an active Participant on the date an amount is first
withheld from his or her compensation pursuant to an Election Form submitted by the Executive to
the Recordkeeper (or, if authorized, the Plan Administrator) under Section 4.1.

     3.2 Termination of Eligibility to Defer. An individual’s eligibility to participate actively
by making deferrals (or a deferral election) under Article IV shall cease upon the “Election
Termination Date” (as defined below) occurring after the earliest of:

          (a) Subject to Section 4.1(b), the date he or she Separates from Service; or

          (b) The date the Executive ceases to be eligible under criteria described in Section 3.1(a)(2)
above.

     3.3 Termination of Participation. An individual, who has been an active Participant under the
Plan, ceases to be a Participant on the date his or her Account is fully paid out.

- 7 -

 

ARTICLE
IV – DEFERRAL OF COMPENSATION

     4.1 Deferral Election.

          (a) Deferrals of Base Compensation. Each Eligible Executive may make an election to
defer under the Plan any whole percentage (up to 80%) of his or her Base Compensation in the manner
described in Section 4.2. A newly Eligible Executive may only defer the portion of his or her
eligible Base Compensation that is earned for services performed after the date of his or her
election. Subject to the foregoing sentence, any Base Compensation deferred by an Eligible
Executive for a Plan Year shall will be deducted each pay period during the Plan Year for which he
or she has Base Compensation and is an Eligible Executive. Base Compensation paid after the end of
a Plan Year for services performed during the final payroll period of the preceding Plan Year shall
be treated as Base Compensation for services in the subsequent Plan Year.

          (b) Deferrals of Bonus Compensation.

               (1) General Rules. Each Eligible Executive may make an election to defer under the Plan any
whole percentage (up to 100%) of his or her Bonus Compensation in the manner described in Section
4.2. An Eligible Executive that is hired, transferred or promoted into a position eligible for the
Plan during a Plan Year may not defer any portion of his or her Bonus Compensation earned for the
Performance Period relating to the Plan Year in which he or she is hired, transferred or promoted;
provided that a promoted Executive may elect to defer Bonus Compensation if such Executive was
eligible for such compensation as of the first day of the Plan Year. The percentage of Bonus
Compensation deferred by an Eligible Executive for a Plan Year will be deducted from his or her
payment under the applicable compensation program at the time it would otherwise be paid, provided
he or she satisfies all conditions for payment that would apply in the absence of a deferral.

               (2) Performance Criteria. Notwithstanding subsection (b)(1) above, an Eligible Executive
shall not be eligible to defer Bonus Compensation for a Plan Year unless the Bonus Compensation is
contingent on the satisfaction of organizational or individual performance criteria for the
Performance Period that relates to the Plan Year, such criteria have been established in writing by
not later than 90 days after the beginning of the applicable Performance Period, and the Bonus
Compensation satisfies the requirements for performance-based compensation under 409A.

          (c) Election Form Rules. To be effective in deferring Base or Bonus Compensation, an
Eligible Executive’s Election Form must set forth the percentage of Base/Bonus Compensation
(whichever applies) to be deferred, and any other information that may be required by the Plan
Administrator from time to time. In addition, the Election Form must meet the requirements of
Section 4.2. To avoid the application of certain default choices, the Eligible Executive may also
specify the deferral period under Section 4.3, and the form of payment under Section 4.4. It is
contemplated that an Eligible Executive will specify the

- 8 -

 

investment choice under Section 5.2 (in multiples of 5%) for the Eligible Executive’s
deferral. However, this is not a condition for making an effective election.

     4.2 Time and Manner of Deferral Election.

          (a) Deferrals of Base Compensation. Ordinarily, an Eligible Executive must make a
deferral election for a Plan Year with respect to Base Compensation no later than October 31 of the
year prior to the Plan Year in which the Base Compensation would otherwise be paid. However, an
individual who newly becomes an Eligible Executive will have 30 days from the date the individual
becomes an Eligible Executive to make a deferral election with respect to Base Compensation that is
earned for services performed after the election is received (the “30-Day Election Period”). The
30-Day Election Period may be used to make an election for Base Compensation that otherwise would
be paid in the Plan Year in which the individual becomes an Eligible Executive. In addition, the
30-Day Election Period may be used to make an election for Base Compensation that would otherwise
be paid in the next Plan Year (i.e., the Plan Year following when the individual becomes an
Eligible Executive), if the individual becomes an Eligible Executive after October 1 and not later
than December 31 of a Plan Year. Thus, if a Base Compensation deferral election for a Plan Year is
made after October 31 of the prior Plan Year in reliance on the 30-day rule, then the Plan
Administrator shall apply the restriction that the election may only apply to Base Compensation
earned for services performed after the date the election is received.

          (b) Deferrals of Bonus Compensation. An Eligible Executive must make a deferral
election with respect to his or her Bonus Compensation at least six months prior to the end of the
Performance Period for which the applicable Bonus Compensation is paid, and this election will be
the Eligible Executive’s bonus deferral election for the Plan Year to which the Performance Period
relates.

          (c) General Provisions. A separate deferral election under (a) or (b) above must be
made by an Eligible Executive for each category of a Plan Year’s compensation that is eligible for
deferral. If a properly completed and executed Election Form is not actually received by the
Recordkeeper (or, if authorized, the Plan Administrator) by the prescribed time in (a) and (b)
above, the Eligible Executive will be deemed to have elected not to defer any Base Compensation or
Bonus Compensation, as the case may be, for the applicable Plan Year. Except as provided in the
next sentence, an election is irrevocable once received and determined by the Plan Administrator to
be properly completed (and in all cases shall be irrevocable not later than the latest date
permitted under Section 409A for the applicable kind of initial election). Increases or decreases
in the percentage a Participant elects to defer shall not be permitted during a Plan Year; provided
that if a Participant receives a hardship distribution under a cash or deferred profit sharing plan
that is sponsored by a member of the PBG Organization and such plan requires that deferrals be
suspended for a period of time following the hardship distribution, the Plan Administrator shall
cancel the Participant’s deferral election so that no deferrals shall be made during such
suspension period. If an election is cancelled because of a hardship distribution, any later
deferral elections shall be subject to the provisions governing initial
deferral elections. Notwithstanding the preceding three sentences, to the extent necessary

- 9 -

 

because of circumstances beyond the control of the Executive, the Plan Administrator may grant an
extension of any election period and may permit (to the extent deemed necessary for orderly Plan
administration or to avoid undue hardship to an Eligible Executive) the modification of an
election. Any such extension or modification shall be available only if (1) it does not extend the
time for making an election beyond the latest time permitted under Section 409A, (2) the Plan
Administrator determines that it otherwise meets the minimum requirements of Section 409A and is
desirable for Plan administration, and (3) only upon such conditions as may be required by the Plan
Administrator.

     4.3 Period of Deferral. An Eligible Executive making a deferral election shall specify a
deferral period on his or her Election Form by designating either a Specific Payment Date or the
date he or she incurs a Separation from Service. Notwithstanding an Eligible Executive’s actual
election of a Specific Payment Date, an Eligible Executive shall be deemed to have elected a period
of deferral of not less than:

          (a) For Base Compensation, at least one year after the end of the Plan Year during which the
Base Compensation would have been paid absent the deferral; and

          (b) For Bonus Compensation, at least two years after the date the Bonus Compensation would
have been paid absent the deferral.

     In the case of a deferral to a Specific Payment Date, if an Eligible Executive’s Election Form
either fails to specify a period of deferral or specifies a period less than the applicable
minimum, the Eligible Executive shall be deemed to have selected a Specific Payment Date equal to
the minimum period of deferral as provided in subsections (a) and (b) above.

     4.4 Form of Deferral Payment. An Eligible Executive making a deferral election shall specify
a form of payment on his or her Election Form by designating either a lump sum payment or
installment payments to be paid over a period of no more than 20 years. Any election for
installment payments shall also specify (a) the frequency for which installment payments shall be
paid, which shall be quarterly, semi-annually and annually and (b) the fixed number of years over
which installments are to be paid. If an Eligible Executive fails to make a form of payment
election for a deferral as provided above, he or she shall be deemed to have elected a lump sum
payment.

     4.5 Second Look Election.

          (a) General. Subject to subsection (b) below, a Participant who has made a valid
initial deferral in accordance with the foregoing provisions of this Article that provides for
payment on a Specified Payment Date may subsequently make another one-time election regarding the
time and/or form of payment of his or her deferral. This opportunity to modify the Participant’s
initial election is referred to as a “Second Look Election.”

          (b) Requirements for Second Look Elections. A Second Look Election must comply with
all of the following requirements:

- 10 -

 

               (1) If a Participant’s initial election specified payment based on a Specific Payment Date,
the Participant may only make a Second Look Election if the election is made at least twelve months
before the Participant’s original Specific Payment Date. In addition, in this case the
Participant’s Second Look Election must delay the payment of the Participant’s deferral to a new
Specific Payment Date that is at least 5 years after the original Specific Payment Date.

               (2) A Second Look Election will not be effective until twelve months after it is made.

               (3) A Separation from Service may not be specified as the payout date resulting from a Second
Look Election.

               (4) A Participant may make only one Second Look Election for each individual deferral, and all
Second Look Elections must comply with all of the requirements of this Section 4.5.

               (5) A Participant who changes the form of his or her payment election from lump sum to
installments will be subject to the provisions of the Plan regarding installment payment elections
in Section 4.4, and such installment payments must begin no earlier than 5 years after when the
lump sum payment would have been paid based upon the Participant’s initial election.

               (6) If a Participant’s initial election specified payment in the form of installments and the
Participant wants to elect installment payments over a greater number of years, the election will
be subject to the provisions of the Plan regarding installment payment elections in Section 4.4,
and the first payment date of the new installment payment schedule must be no earlier than 5 years
after the first payment date that applied under the Participant’s initial installment election.

               (7) If a Participant’s initial election specified payment in the form of installments and the
Participant wants to elect instead payment in a lump sum, the earliest payment date of the lump sum
must be no earlier than five years after the first payment date that applied under the
Participant’s initial installment election.

               (8) For purposes of this section, all of a Participant’s installment payments related to a
specific deferral election shall be treated as a single payment.

     A Second Look Election will be void and payment will be made based on the Participant’s
original election under Sections 4.3 and 4.4 if all of the provisions of the foregoing Paragraphs
of this subsection are not satisfied in full. However, if a Participant’s Second Look Election
becomes effective in accordance with the provisions of this subsection, the Participant’s
original election shall be superseded (including the Specific Payment Date specified therein),
and

- 11 -

 

this original election shall not be taken into account with respect to the deferral that is
subject to the Second Look Election.

          (c) Plan Administrator’s Role. Each Participant has the sole responsibility to elect
a Second Look Election by contacting the Recordkeeper (or, if authorized, the Plan Administrator)
and to comply with the requirements of this section. The Plan Administrator or the Recordkeeper
may provide a notice of a Second Look Election opportunity to some or all Participants, but the
Recordkeeper and Plan Administrator is under no obligation to provide such notice (or to provide it
to all Participants, in the event a notice is provided only to some Participants). The
Recordkeeper and the Plan Administrator have no discretion to waive or otherwise modify any
requirement for a Second Look Election set forth in this section or in Section 409A.

     4.6 Mandatory Deferrals.

          (a) In General. As provided in this section, Base Compensation may be deferred under
the Plan on a non-elective basis. In the case of an Eligible Executive whose Base Compensation for
a Plan Year is determined by the Compensation Committee, the Compensation Committee may require a
portion of the Eligible Executive’s Base Compensation for the Plan Year to be deferred under the
Plan. Such portion of the Eligible Executive’s Base Compensation that the Compensation Committee
requires to be deferred under this Section 4.6 on a non-elective basis shall be referred to as a
“Mandatory Deferral.”

          (b) Time for Committee’s Determination. If, prior to the decision by the Compensation
Committee with respect a Mandatory Deferral, the Eligible Executive has not earned a binding right
to the portion of his Base Compensation that is to be deferred mandatorily, the Compensation
Committee may require the deferral of such Base Compensation not later than when the Eligible
Executive earns a binding right to the Base Compensation. However, if the Eligible Executive has
already earned a binding right to some or all of the Base Compensation to be deferred mandatorily,
then to be effective hereunder any determination by the Compensation Committee to require deferral
of such portion of the Eligible Executive’s Base Compensation must be made no later than December
31st of the year prior to the Plan Year in which such portion of Base Compensation would
otherwise be paid and as of December 31st of such prior year the determination shall be
irrevocable. Any Mandatory Deferral for a Plan Year shall be credited to a separate Deferral
Subaccount for such Plan Year.

          (c) Time and Form of Payment. At the time that the Compensation Committee provides
for the Mandatory Deferral of an Eligible Executive’s Base Compensation, the Compensation Committee
shall (1) designate a Specific Payment Date for such Mandatory Deferral within the parameters of
Section 4.3, and (2) designate a form of payment for such Mandatory Deferral (e.g., lump sum or
installments) within the parameters of Section 4.4(a). The Compensation Committee may retain the
right to change the time and form of payment of any Mandatory Deferral, but any such change must
meet the requirements of Section 4.5 (applied as if the decision by the Compensation Committee were
a decision by the Eligible Executive).

- 12 -

 

The Eligible Executive shall be entitled to elect to change the time and form of payment under
Section 4.5 only to the extent expressly permitted by the Compensation Committee.

- 13 -

 

ARTICLE
V – INTERESTS OF PARTICIPANTS

     5.1 Accounting for Participants’ Interests.

          (a) Deferral Subaccounts. Each Participant shall have at least one separate Deferral
Subaccount for each separate deferral of Base Compensation or Bonus Compensation made by the
Participant under this Plan. A Participant’s deferral shall be credited to his or her Account as
soon as practicable following the date the compensation would be paid in the absence of a deferral.
A Participant’s Account is a bookkeeping device to track the value of the Participant’s deferrals
(and his or her 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 or her Account had actually been invested as directed by the
Participant in accordance with this Article. 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 or her
Employer’s liability to make deferred payments to or on behalf of the Participant.

     5.2 Investment Options.

          (a) General. Each of a Participant’s Deferral Subaccounts 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 or her Beneficiary) from those offered by the Plan
Administrator for this purpose from time to time. The Plan Administrator may discontinue any
phantom investment option with respect to some or all Accounts, and it may provide rules for
transferring 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).

          (b) Phantom Investment Options. The basic phantom investment options offered under
the Plan are as follows:

               (1) Phantom PBG Stock Fund. Participant Accounts invested in this phantom option are adjusted
to reflect an investment in the PBG Stock Fund, which is offered under the PBG 401(k) Savings
Program. An amount deferred or transferred into this option is converted to phantom units in the
PBG Stock Fund by dividing such amount by the NAV of the fund on the Valuation Date as of which the
amount is treated as invested in this option by the Plan Administrator. A Participant’s interest
in the Phantom PBG Stock Fund is valued as of a Valuation Date (or a Distribution Valuation Date)
by multiplying the number of phantom units
credited to the Participant’s Account on such date by the NAV of a unit in the PBG Stock Fund
on such date. If shares of PBG Common Stock change by reason of any stock split, stock

- 14 -

 

dividend,
recapitalization, merger, consolidation, spin-off, 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 and kind of phantom units credited to an Account
or Subaccount as the Plan Administrator may determine to be necessary or appropriate. In no event
will shares of PBG Common Stock actually be purchased or held under this Plan, and no Participant
shall have any rights as a shareholder of PBG Common Stock on account of an interest in this
phantom option.

               (2) Phantom PBG 401(k) Funds. From time to time, the Plan Administrator shall designate which
(if any) of the investment options under the PBG 401(k) Savings Program shall be available as
phantom investment options under this Plan. Participant Accounts invested in these phantom options
are adjusted to reflect an investment in the corresponding investment options under the PBG 401(k)
Savings Program. An amount deferred or transferred into one of these options is converted to
phantom units in the applicable PBG 401(k) Savings Program fund of equivalent value by dividing
such amount by the NAV of a unit in such fund on the date as of which the amount is treated as
invested in the option by the Plan Administrator. Thereafter, a Participant’s interest in each
such phantom option is valued as of a Valuation Date (or a Distribution Valuation Date) by
multiplying the number of phantom units credited to his or her Account on such date by the NAV of a
unit in the applicable PBG 401(k) Savings Program fund on such date.

               (3) Other Funds. From time to time, the Plan Administrator shall designate which (if any)
other investment options shall be available as phantom investment options under this Plan. These
may be in addition to those provided for above. They may also be in lieu of some or all of them.
Any of these phantom investment options shall be administered under procedures implemented from
time to time by the Plan Administrator.

     5.3 Method of Allocation.

          (a) Deferral Elections. With respect to any deferral election by a Participant, the
Participant must use his or her Election Form to allocate the deferral in 5% increments among the
phantom investment options then offered by the Plan Administrator. If an Election Form related to
an original deferral election specifies phantom investment options for less than 100% of the
Participant’s deferral, the Recordkeeper shall allocate the Participant’s deferrals to the Phantom
Security Plus Fund to the extent necessary to provide for investment of 100% of the Participant’s
deferral. If an Election Form related to an original deferral election specifies phantom
investment options for more than 100% of the Participant’s deferral, the Recordkeeper shall prorate
all of the Participant’s investment allocations to the extent necessary to reduce (after rounding
to 5% increments) the Participant’s aggregate investment percentages to 100%.

          (b) Fund Transfers. A Participant may reallocate previously deferred amounts in a
Deferral Subaccount by properly completing and submitting a fund transfer form provided by the Plan
Administrator or Recordkeeper or by following such other non-paper procedures,
such as electronically, that the Plan Administrator may designate, and specifying, in 5%
increments, the reallocation of his or her Deferral Subaccounts among the phantom investment

- 15 -

 

options then offered by the Plan Administrator for this purpose. If a fund transfer form or other
designated method provides for investing less than or more than 100% of the Participant’s Account,
it will be void and disregarded. Any fund transfer form that is not void under the preceding
sentence shall be effective as of the Valuation Date next occurring after its receipt by the
Recordkeeper, but the Plan Administrator or the Recordkeeper may also specify a minimum number of
days in advance of which such transfer form must be received in order for the form to become
effective as of such next Valuation Date. If more than one transfer form is received on a timely
basis for a Deferral Subaccount, the transfer form that the Plan Administrator or Recordkeeper
determines to be the most recent shall be followed.

          (c) Phantom PBG Stock Fund Restrictions. Notwithstanding the preceding provisions of
this section, to the extent necessary to ensure compliance with Rule 16b-3(f) of the Act, the
Company may arrange for tracking of any such transaction defined in Rule 16b-3(b)(1) of the Act
involving the Phantom PBG Stock Fund and the Company may bar or alter the effective date of any
such transaction to the extent it would not be exempt under Rule 16b-3(f). The Company may impose
blackout periods pursuant to the requirements of the Sarbanes-Oxley Act of 2002 whenever the
Company determines that circumstances warrant. Further, the Company may impose quarterly blackout
periods on insider trading in the Phantom PBG Stock Fund as needed (as determined by the Company),
timed to coincide with the release of the Company’s quarterly earnings reports. The commencement
and termination of these blackout periods in each quarter, the parties to which they apply and the
activities they restrict shall be as set forth in the official insider trading policy promulgated
by the Company from time to time. These provisions shall apply notwithstanding any provision of
the Plan to the contrary except Section 7.6 (relating to compliance with Section 409A).

     5.4 Vesting of a Participant’s Account. A participant’s interest in the value of his or her
Account shall at all times be 100% vested, which means that it will not forfeit as a result of his
or her Separation from Service.

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ARTICLE
VI – DISTRIBUTIONS

     6.1 General Rules. A Participant’s Deferral Subaccount(s) that are governed by the terms of
this 2009 Restatement shall be distributed as provided in this Article, subject in all cases to
Sections 5.3(c), 6.10 and 7.3(j) (relating to compliance with securities laws with respect to the
Phantom PBG Stock Fund). All Deferral Subaccount balances (including those hypothetically invested
in the Phantom PBG Stock Fund) shall be distributed in cash. In no event shall any portion of a
Participant’s Account be distributed earlier or later than is allowed under Section 409A.
Subsequent reemployment of the Participant shall not affect the payment of the Participant’s
Deferral Account for which a payment event previously occurred.

     The following general rules shall apply for purposes of interpreting the provisions of this
Article VI.

          (a) Section 6.2 (Distributions Based on a Specific Payment Date) applies when a Participant
has elected to defer until a Specific Payment Date (including pursuant to a Second Look Election)
and the Specific Payment Date is reached before the Participant’s (i) Separation from Service
(other than for Retirement); or (ii) death. However, if such a Participant Separates from Service
(other than for Retirement or death) prior to the Specific Payment Date (or prior to an installment
payment pursuant to a Specific Payment Date or Second Look Election), Section 6.3 shall apply to
the extent it would result in an earlier distribution. If such a Participant dies prior to the
Specific Payment Date (or prior to an installment payment pursuant to a Specific Payment Date),
Section 6.4 shall apply to the extent it would result in an earlier distribution of all or part of
a Participant’s Account.

          (b) Section 6.3 (Distributions on Account of a Separation from Service) applies (i) when a
Participant has elected to defer until a Separation from Service and then the Participant Separates
from Service (other than for Retirement or death); or (ii) when applicable under subsection (a)
above.

          (c) Section 6.4 (Distributions on Account of Death) applies when the Participant dies. If a
Participant is entitled to receive or is receiving a distribution under Section 6.2, 6.3 or 6.5
(see below) at the time of his death, Section 6.4 shall take precedence over those sections to the
extent Section 6.4 would result in an earlier distribution of all or part of a Participant’s
Account.

          (d) Section 6.5 (Distributions on Account of Retirement) applies when a Participant has
elected to defer until a Separation from Service and then the Participant Separates from Service on
account of his or her Retirement. Subsection (c) of this section provides for when Section 6.4
takes precedence over Section 6.5.

          (e) Section 6.6 (Distributions on Account of Unforeseeable Emergency) applies when the
Participant incurs an Unforeseeable Emergency prior to when a Participant’s Account is distributed
under Sections 6.2 through 6.5. In this case, the provisions of Section 6.6

- 17 -

 

shall take precedence over Sections 6.2 through 6.5 to the extent Section 6.6 would result in
an earlier distribution of all or part of the Participant’s Account.

          (f) Section 6.7 (Distributions of Mandatory Deferrals) shall apply to all distributions of
Mandatory Deferrals, and the provisions of Section 6.7 shall take precedence over Sections 6.2
through 6.6 with respect to distributions of all Mandatory Deferrals.

     6.2 Distributions Based on a Specific Payment Date. This Section shall apply to distributions
that are to be made upon the occurrence of a Specific Payment Date (including distributions
pursuant to a Second Look Election). In the event a Participant’s Specific Payment Date for a
Deferral Subaccount is reached before an amount becomes payable to the Participant on account of
(i) the Participant’s Separation from Service (other than for Retirement), or (ii) the
Participant’s death, such Deferral Subaccount shall be distributed based on the occurrence of such
Specific Payment Date in accordance with the following terms and conditions:

          (a) If a Participant’s Deferral Subaccount is to be paid in the form of a lump sum pursuant to
Section 4.4 or 4.5, whichever is applicable, the Deferral Subaccount shall be valued as of the last
Distribution Valuation Date preceding the Participant’s Specific Payment Date, and the resulting
amount shall be payable in a single lump sum on the Specific Payment Date.

          (b) If a Participant’s Deferral Subaccount is to be paid in the form of installments pursuant
to Section 4.4 or 4.5, whichever is applicable, the Participant’s first installment payment shall
be payable on the Specific Payment Date. Thereafter, installment payments shall continue in
accordance with the schedule elected by the Participant, except as provided in Sections 6.3, 6.4
and 6.6 (relating to distributions upon Separation from Service (other than Retirement or death),
death or Unforeseeable Emergency). The amount of each installment shall be determined under
Section 6.8 based on the Distribution Valuation Date immediately preceding the date such
installment is payable. Notwithstanding the preceding provisions of this subsection, if the
Participant Separates from Service (other than for Retirement) or dies, the Participant’s Deferral
Subaccounts that would otherwise be distributed based on such Specific Payment Date shall instead
be distributed in accordance with Section 6.3 or 6.4 (relating to distributions on account of
Separation from Service or death), whichever applies, but only to the extent it would result in an
earlier distribution of the Participant’s Subaccount.

     6.3 Distributions on Account of a Separation from Service. A Participant’s total Account
shall be distributed upon the occurrence of a Participant’s Separation from Service (other than for
Retirement or death) in accordance with the terms and conditions of this section. When used in
this section, the phrase “Separation from Service” shall only refer to a Separation from Service
that is not for Retirement or death.

          (a) Subject to subsection (c), for those Deferral Subaccounts that have a Specific Payment
Date (including a Specific Payment Date resulting from a Second Look Election) that is after the
Participant’s Separation from Service, such Deferral Subaccounts shall be payable in a

- 18 -

 

single lump
sum payment on the first day of the month following the end of the calendar quarter following the
quarter in which the Participant’s Separation from Service occurs to the extent such payment would
result in an earlier distribution to the Participant.

          (b) Subject to subsection (c), if the Participant’s Separation from Service is on or after the
Specific Payment Date (including a Specific Payment Date resulting from a Second Look Election)
applicable to a Participant’s Deferral Subaccount and the Participant has selected installment
payments as the form of distribution for the Deferral Subaccount, then the remainder of such
Deferral Subaccount shall be payable in a single lump sum payment on the first day of the month
following the end of the calendar quarter following the quarter in which the Participant’s
Separation from Service occurs to the extent such payment would result in an earlier distribution
to the Participant).

          (c) If the Participant is classified as a Specified Employee at the time of the Participant’s
Separation from Service (or at such other time for determining Specified Employee status as may
apply under Section 409A), then such Participant’s Account shall be payable, to the extent such
payment is due as a result of the Participant’s Separation from Service, on the first day of the
month following the end of the second calendar quarter following the quarter in which the
Participant’s Separation from Service occurs, valued as of the immediately preceding Distribution
Valuation Date.

          Amounts payable in accordance with this Section 6.3 shall be determined based on the
Distribution Valuation Date immediately preceding the date such amount is payable.

     6.4 Distributions on Account of Death.

          (a) Upon a Participant’s death, the value of the Participant’s Account under the Plan shall be
payable in a single lump sum payment on the first day of the month following the end of the
calendar quarter following the quarter in which the Participant’s death occurs, valued as of the
last Distribution Valuation Date preceding the date such amount becomes payable. If the
Participant is receiving installment payments at the time of the Participant’s death, or a Specific
Payment Date distribution (including a Specific Payment Date resulting from a Second Look Election)
is payable prior to the date an amount is payable under this Section 6.4, such payment or
installment payment shall be made in accordance with the terms of the applicable deferral election
that governs such payment until the time that the lump sum payment is due to be paid under the
preceding sentence of this subsection. Immediately prior to the time that such lump sum payment is
scheduled to be paid, all installment payments shall cease and the remaining balance of the
Participant’s Account shall be distributed at such scheduled payment time in a single lump sum.
Amounts paid following a Participant’s death, whether a lump sum or installments, shall be paid to
the Participant’s Beneficiary.

          (b) Each Participant may designate a Beneficiary or Beneficiaries (contingently,
consecutively, or successively) of a death benefit and, from time to time, may change his or her
designated Beneficiary. A Beneficiary may be a trust. A beneficiary designation shall be made in
writing in a form prescribed by the Plan Administrator and delivered to the Plan Administrator

- 19 -

 

while the Participant is alive. If there is no designated Beneficiary surviving at the death of a
Participant, payment of any death benefit of the Participant shall be made to the estate of the
Participant.

          (c) Any claim to be paid any amounts standing to the credit of a Participant in connection
with the Participant’s death must be received by the Recordkeeper or the Plan Administrator at
least 14 days before any such amount is paid out by the Recordkeeper. Any claim received
thereafter is untimely, and it shall be unenforceable against the Plan, the Company, the Plan
Administrator, the Recordkeeper or any other party acting for one or more of them.

     6.5 Distributions on Account of Retirement. If a Participant incurs a Separation from Service
on account of his or her Retirement, the Participant’s Account shall be distributed in accordance
with the terms and conditions of this section.

          (a) If the Participant’s Retirement is prior to the Specific Payment Date that is applicable
to a Deferral Subaccount, the Participant’s deferral election pursuant to Sections 4.3, 4.4 or 4.5
(i.e., time and form of payment) shall continue to be given effect, and the Deferral Subaccount
shall be distributed based upon the provisions of subsections (a) and (b) under Section 6.2,
whichever applies (relating to distribution based on a Specific Payment Date).

          (b) If the Participant has selected payment of his or her deferral on account of Separation
from Service, distribution of the related Deferral Subaccount shall commence on the first day of
the month following the end of the calendar quarter following the quarter in which the
Participant’s Retirement occurs. Such distribution shall be made in either a single lump sum
payment (valued as of the immediately preceding Distribution Valuation Date) or in installment
payments depending upon the Participant’s deferral election under Sections 4.4 or 4.5. If the
Participant is entitled to installment payments, such payments shall be made in accordance with the
Participant’s installment election (but subject to acceleration under Sections 6.4 and 6.6 relating
to distributions on account of death and Unforeseeable Emergency) and with the installment payment
amounts determined under Section 6.8. However, if the Participant is classified as a Specified
Employee at the time of the Participant’s Retirement (or at such other time for determining
Specified Employee status as may apply under Section 409A), then such Participant’s Account shall
not be payable, as a result of the Participant’s Retirement, until the first day of the first
calendar quarter that is at least six months after the Participant’s Retirement.

          (c) If the Participant is receiving installment payments in accordance with Section 6.2
(relating to distributions on account of a Specific Payment Date) for one or more Deferral
Subaccounts at the time of his or her Retirement, such installment payments shall continue to be
paid based upon the Participant’s deferral election (but subject to acceleration
under Sections 6.4 and 6.6 relating to distributions on account of death and Unforeseeable
Emergency).

     6.6 Distributions on Account of Unforeseeable Emergency. Prior to the time that an amount
would become distributable under Sections 6.2 through 6.5, a Participant may file a

- 20 -

 

written request
with the Recordkeeper for accelerated payment of all or a portion of the amount credited to the
Participant’s Account based upon an Unforeseeable Emergency. After an individual has filed a
written request pursuant to this section, along with all supporting material that may be required
by the Recordkeeper from time to time, the Recordkeeper shall determine within 60 days (or such
other number of days that is necessary if special circumstances warrant additional time) whether
the individual meets the criteria for an Unforeseeable Emergency. If the Recordkeeper determines
that an Unforeseeable Emergency has occurred, the Participant shall receive a distribution from his
or her Account as soon as administratively practicable thereafter. However, such distribution
shall not exceed the dollar amount necessary to satisfy the Unforeseeable Emergency (plus amounts
necessary to pay taxes reasonably anticipated as a result of the distribution) after taking into
account the extent to which the Unforeseeable Emergency is or may be relieved through reimbursement
or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the
extent the liquidation of such assets would not itself cause severe financial hardship).

     6.7 Distributions of Mandatory Deferrals. This Section 6.7 shall govern the distribution of
all Mandatory Deferrals under the Plan. Unless the Compensation Committee determines otherwise at
the time of the Mandatory Deferral or afterwards (subject to the provisions of Section 4.5), a
Participant’s Deferral Subaccount(s) for a Mandatory Deferral shall be distributed upon the
earliest of the following to occur:

          (a) The Specific Payment Date for the Deferral Subaccount pursuant to the distribution rules
of Section 6.2;

          (b) The Participant’s Separation from Service (other than account of a death) pursuant to the
distribution rules of Section 6.3;

          (c) The Participant’s death pursuant to the distribution rules of Section 6.4;

          (d) The occurrence of an Unforeseeable Emergency with respect to the Participant pursuant to
the distribution rules of Section 6.6.

     6.8 Valuation. In determining the amount of any individual distribution pursuant to this
Article, the Participant’s Deferral Subaccount shall continue to be credited with earnings and
gains (and debited for expenses and losses) as specified in Article V until the Distribution
Valuation Date that is used in determining the amount of the distribution under this Article. If a
particular Section in this Article does not specify a Distribution Valuation Date to be used in
calculating the distribution, the Participant’s Deferral
Subaccount shall continue to be credited with earnings and gains (and debited for expenses and
losses) as specified in Article V until the Distribution Valuation Date that immediately precedes
such distribution. In determining the value of a Participant’s remaining Deferral Subaccount
following an installment distribution from the Deferral Subaccount (or a partial distribution under
Section 6.6 relating to an Unforeseeable Emergency), such distribution shall reduce the value of
the Participant’s Deferral Subaccount as of the close of the Distribution Valuation Date
immediately preceding the payment date for such installment (or partial distribution). The amount
to be distributed in

- 21 -

 

connection with any installment payment shall be determined by dividing the
value of a Participant’s Deferral Subaccount as of such immediately preceding Distribution
Valuation Date (determined before reduction of the Deferral Subaccount as of such Distribution
Valuation Date in accordance with the preceding sentence) by the remaining number of installments
to be paid with respect to the Deferral Subaccount.

     6.9 Section 162(m) — Automatic Deferral. Notwithstanding any other provision of this Plan to
the contrary, and subject to the requirements of Treas. Reg. §1.409A-2(b)(7)(i), no amount shall be
paid to any Participant before the earliest date on which the Employer’s federal income tax
deduction for such payment is not precluded by Section 162(m) of the Code. In the event any
payment is delayed solely as a result of the preceding restriction, such payment shall be made as
soon as administratively feasible following the first date as of which the Employer reasonably
anticipates that Section 162(m) of the Code no longer precludes the deduction by the Employer.

     6.10 Impact of Section 16 of the Act on Distributions. The provisions of Section 5.3(c) and
this Section 6.10 shall apply in determining whether a Participant’s distribution shall be delayed
beyond the date applicable under the preceding provisions of this Article VI.

          (a) In General. This Plan is intended to be a formula plan for purposes of Section 16
of 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) of the Act, if it were approved by the
Company’s Board of Directors or the 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: This Subsection shall govern the distribution of a
deferral that (i) is wholly or partly invested in the Phantom PBG Stock Fund 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 Second Look 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 PBG Stock
Fund would, once made, remain in that fund 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 PBG
Stock Fund 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 Phantom PBG Stock Fund (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 PBG Stock Fund 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 the actual distribution
to the Participant shall be delayed only until the 

earlier of:

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               (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 PBG Stock Fund in connection with the
distribution, and

               (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 PBG Stock Fund, or when the time between the
liquidation and an opposite way transaction is sufficient.

     6.11 Actual Date of Payment. An amount payable on a date specified in this Article VI shall
be paid as soon as administratively feasible after such date; but no later than the later of (a)
the end of the calendar year in which the specified date occurs; or (b) the 15 th day of
the third calendar month following such specified date and the Participant (or Beneficiary) is not
permitted to designate the taxable year of the payment. The payment date may be postponed further
if calculation of the amount of the payment is not administratively practicable due to events
beyond the control of the Participant (or Beneficiary), and the payment is made in the first
calendar year in which the calculation of the amount of the payment is administratively
practicable.

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ARTICLE
VII – PLAN ADMINISTRATION

     7.1 Plan Administrator. The Plan Administrator is responsible for the administration of the
Plan. The Plan Administrator has the authority to name one or more delegates to carry out certain
responsibilities hereunder, as specified in the definition of Plan Administrator. Any such
delegation shall state the scope of responsibilities being delegated.

     7.2 Action. Action by the Plan Administrator may be taken in accordance with procedures that
the Plan Administrator adopts from time to time or that the Company’s Law Department determines are
legally permissible.

     7.3 Powers of the Plan Administrator. The Plan Administrator shall administer and manage the
Plan and shall have (and shall be permitted to delegate) all powers necessary to accomplish that
purpose, including 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 Employers 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 V;

          (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 7.6 (relating to
compliance with Section 409A), the Plan Administrator or the Recordkeeper may

- 24 -

 

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 intra-fund 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 (1) such discretion is not expressly
granted by the Plan provisions in question, or (2) 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. As a result, benefits under this Plan will be paid only if the Plan
Administrator decides in its discretion that the applicant is entitled to them. 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.

     7.4 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 Employers. 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 Employers. No member of the Committee (which serves as the Plan Administrator), 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 or her own part, excepting his or
her own willful misconduct. The Employers will indemnify and hold harmless each member of the
Committee and any employee of the Company (or a Company affiliate, if recognized as an affiliate
for this purpose by the Plan Administrator) acting as the delegate of the Committee against any and
all expenses and liabilities, including reasonable legal fees and expenses, arising in connection
with this Plan out of his or her membership on the Committee (or his or her serving as the delegate
of the Committee), excepting only expenses and liabilities arising out of his or her own willful
misconduct or bad faith.

     7.5 Withholding. The Employer shall withhold from amounts due under this Plan any amount
necessary to enable the Employer to remit to the appropriate government entity or entities on
behalf of the Participant as may be required by the federal income tax withholding provisions of
the Code, by an applicable state’s income tax provisions, or by an applicable city, county or
municipality’s earnings or income tax provisions. The Employer shall withhold from the payroll of,
or collect from, a Participant the amount
necessary to remit on behalf of the Participant any Social Security or Medicare taxes which
may be required with respect to amounts accrued by a Participant hereunder, as determined by the
Company.

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     7.6 Conformance with Section 409A. At all times during each Plan Year, this Plan shall be
operated (i) in accordance with the requirements of Section 409A, and (ii) to preserve the status
of deferrals under the Pre-409A Program as being exempt from Section 409A, i.e., to preserve the
grandfathered status of the Pre-409A Program. Any action that may be taken (and, to the extent
possible, any action actually taken) by the Plan Administrator, the Recordkeeper or the Company
shall not be taken (or shall be void and without effect), if such action violates the requirements
of Section 409A or if such action would adversely affect the grandfather of the Pre-409A Program.
If the failure to take an action under the Plan would violate Section 409A, then to the extent it
is possible thereby to avoid a violation of Section 409A, the rights and effects under the Plan
shall be altered to avoid such violation. A corresponding rule shall apply with respect to a
failure to take an action that would adversely affect the grandfather of the Pre-409A Program. Any
provision in this Plan document that is determined to violate the requirements of Section 409A or
to adversely affect the grandfather of the Pre-409A Program shall be void and without effect. In
addition, any provision that is required to appear in this Plan document to satisfy the
requirements of Section 409A, but that is not expressly set forth, shall be deemed to be set forth
herein, and the Plan shall be administered in all respects as if such provision were expressly set
forth. A corresponding rule shall apply with respect to a provision that is required to preserve
the grandfather of the Pre-409A Program. In all cases, the provisions of this section shall apply
notwithstanding any contrary provision of the Plan that is not contained in this section.

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ARTICLE
VIII – CLAIMS PROCEDURE

     8.1 Claims for Benefits. If a Participant, Beneficiary or other person (hereafter,
“Claimant”) does not receive timely payment of any benefits which he or she believes are due and
payable under the Plan, he or she may make a claim for benefits to the Plan Administrator. The
claim for benefits must be in writing and addressed to the Plan Administrator. If the claim for
benefits is denied, the Plan Administrator will notify the Claimant 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 shall
advise the Claimant of the basis for the denial, any additional material or information necessary
for the Claimant to perfect his or her claim, and the steps which the Claimant must take to appeal
his or her claim for benefits.

     8.2 Appeals of Denied Claims. Each Claimant whose claim for benefits has been denied may file
a written appeal for a review of his or her claim by the Plan Administrator. The request for
review must be filed by the Claimant within 60 days after he or she received the notice denying his
or her claim. The decision of the Plan Administrator will be communicated to the Claimant within
60 days after receipt of a request for appeal. The notice shall set forth the basis for the Plan
Administrator’s decision. However, if special circumstances require an extension of time for
processing the appeal, the Plan Administrator will furnish notice of the extension to the Claimant
prior to the termination of the initial 60-day period and such extension may not exceed one
additional, consecutive 60-day period.

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ARTICLE
IX – AMENDMENT AND TERMINATION

     9.1 Amendment of Plan. The Compensation and Management Development 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, including the manner of making deferral elections, the terms on
which distributions are made, and the form and timing of distributions. However, except for mere
clarifying amendments necessary to avoid an inappropriate windfall, no Plan 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. All Participants and Beneficiaries
shall be bound by such amendment. Any amendments made to the Plan shall be subject to any
restrictions on amendment that are applicable to ensure continued compliance under Section 409A.

     Notwithstanding the preceding, the Company’s Senior Vice President — Human Resources may amend
the Plan without the consent of the Compensation and Management Development Committee for the
purposes of (i) conforming the Plan to the requirements of law, (ii) facilitating the
administration of the Plan, and (iii) clarifying provisions based on the Committee’s interpretation
of the document; provided that such amendment does not relate to the Plan provisions and
restrictions for ensuring compliance with Rule 16b-3 of the Act.

     9.2 Termination of Plan:

          (a) The Company expects to continue this Plan, but does not obligate itself to do so. The
Company, acting by the Compensation and Management Development Committee of the Board of Directors,
or through its entire 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) and their
Beneficiaries, 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), the termination
resolution shall provide for how amounts theretofore credited to affected Participants’ Accounts
will be distributed.

          (b) Notwithstanding subsection (a), a termination of the Plan must comply with the provisions
of Section 409A including, but not limited to, aggregation of plans of the same type, restrictions
on the timing of final distributions, and the adoption of future deferred compensation
arrangements.

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ARTICLE
X – MISCELLANEOUS

     10.1 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 the Employers reserve the right to terminate the employment of any Participant without
any liability for any claim against the Company or the Employers under this Plan, except for a
claim for payment of deferrals as provided herein.

     10.2 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 an
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 the 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 or her
Beneficiary.

     10.3 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 Recordkeeper, the Employers 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.

     10.4 Governing Law. 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 New York. 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.

     10.5 Adoption of Plan by Related Employers. The Plan Administrator may select as an Employer
any subsidiary or affiliate related to the Company by ownership (and that is a member of the PBG
Organization), and permit or cause such subsidiary or affiliate 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.

     10.6 Gender, Tense 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. Whenever an example is provided or the text uses the term “including”

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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).

     10.7 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 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 any 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 Deferral Subaccount of a Participant. Any such payment shall be charged against
and reduce the Participant’s Account.

     10.8 Facility of Payment. Whenever, in the Plan Administrator’s opinion, a Participant or
Beneficiary entitled to receive any payment hereunder is under a legal disability or is
incapacitated in any way so as to be unable to manage his or her 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 or her 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.

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