Document:

Exhibit 10.1 - 3.21.2015

EXHIBIT 10.1

THE PEPSICO INTERNATIONAL RETIREMENT PLAN

DEFINED CONTRIBUTION PROGRAM

(PIRP-DC)

Effective as of January 1, 2011

TABLE OF CONTENTS

	
		
	ARTICLE I – HISTORY AND GENERAL INFORMATION
	1

	ARTICLE II – DEFINITIONS AND CONSTRUCTION
	2

	2.01    Definitions.
	2

	2.02    Construction.
	6

	ARTICLE III – MEMBERSHIP
	8

	3.01    Eligibility for Membership.
	8

	3.02    Admission to Membership.
	8

	3.03    Active and Inactive Membership.
	8

	ARTICLE IV – CONTRIBUTIONS
	9

	4.01    Contributions.
	9

	4.02    Special Contribution Rules for Covered Transfers.
	10

	4.03    Offsets.
	10

	ARTICLE V – MEMBER ACCOUNTS
	12

	5.01    Accounting for Members’ Interests.
	12

	5.02    Vesting.
	12

	5.03    Special Vesting Rules for Covered Transfers.
	12

	ARTICLE VI – DISTRIBUTION OF BENEFITS
	13

	6.01    Distribution Rules Generally.
	13

	6.02    Distributions Upon Termination of Employment.
	13

	6.03    Distributions Upon Death.
	13

	6.04    Valuation.
	13

	6.05    Designation of Dependant.
	13

	ARTICLE VII – ADMINISTRATION
	15

	7.01    Authority to Administer Plan.
	15

	7.02    Facility of Payment.
	15

	7.03    Claims Procedure.
	15

	7.04    Limitations on Actions.
	16

	7.05    Restriction of Venue.
	17

	7.06    Effect of Specific References.
	17

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	ARTICLE VIII – AMENDMENT AND TERMINATION
	18

	8.01    Continuation of the Plan.
	18

	8.02    Amendment.
	18

	8.03    Termination.
	18

	ARTICLE IX – MISCELLANEOUS
	19

	9.01    Unfunded Plan.
	19

	9.02    Costs of the Plan.
	19

	9.03    Temporary Absence of Member.
	19

	9.04    Taxes, Etc.
	19

	9.05    Nonguarantee of Employment.
	19

	9.06    No Right to Benefits.
	19

	9.07    Charges on Benefits.
	20

	9.08    Prohibited Misconduct.
	20

	9.09    Notices.
	21

	9.10    Plan Documentation.
	22

	9.11    Currency of Payment.
	22

	9.12    Governing Law.
	22

	9.13    Exemption from ERISA.
	22

	9.14    Exemption from Section 409A.
	22

	ARTICLE X – SIGNATURE
	24

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ARTICLE I – HISTORY AND GENERAL INFORMATION

PepsiCo, Inc. (the “Corporation”) first established the PepsiCo International Retirement Plan effective as of September 1, 1980.  The Plan at that time was comprised of the “PepsiCo International Retirement Plan Trust Indenture” and the “Plan Rules.”  The Plan was amended and restated in its entirety, effective September 2, 1982.  

The Plan was again amended and restated effective October 1, 2003, whereupon the Plan Rules became the “Plan A Rules” (applicable to benefits funded by the Corporation’s contributions to the trust established by the PepsiCo International Retirement Plan Trust Indenture) and the “Plan B Rules” (applicable to benefits funded by the Corporation as they arise) took effect.  

The Plan was further amended effective January 1, 2005, to provide that no person subject to taxation in the United States of America may in any way have their right to a benefit from the Plan come into existence, increase or in any way be enhanced, but instead will be determined as if they had left the Corporation and any Associated Company permanently before becoming subject to U.S. taxation.  
 
Effective January 1, 2010, the Plan A Rules and Plan B Rules were amended and restated in their entirety to form one Plan document.  The amendment and restatement referred to in the prior sentence remains in effect, and it sets forth the terms of the “DB Program.”  

Effective January 1, 2011, the Corporation established a new defined contribution structure (the “DC Program”) to benefit selected international employees for whom it has been determined to be appropriate (i.e., employees on assignments outside of their home countries for whom it is judged to be impractical to have them participate in their home country retirement plans, and employees who are among a selected group of senior globalists on United States tax equalized packages).  The terms of the DC Program are set forth in this document, which is the governing legal document for the DC Program.  Together, the DC Program and the DB Program set forth the terms of a single Plan.

At all times, the Plan is unfunded and unsecured for purposes of the United States Internal Revenue Code and Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  The benefits of an executive are an obligation of that executive’s individual employer.  With respect to his employer, the executive has the rights of an unsecured general creditor.  The Plan is also intended to be exempt from ERISA as a plan maintained outside of the United States primarily for the benefit of persons substantially all of whom are nonresident aliens of the United States.  

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ARTICLE II – DEFINITIONS AND CONSTRUCTION

2.01    Definitions.

Where the following words and phrases appear in this governing document for the DC Program, they shall have the meaning set forth below, unless a different meaning is plainly required by the context:

(a)  “Approved Transfer” means any of the following that are initiated or approved by the Corporation or (with the approval of the Corporation) by a Member’s Employer – 

(1)  The Member’s transfer to employment based in the United States or its territories;

(2)  The Member’s secondment to a work location in the United States or its territories; 

(3)  Any other change in the Member’s employment circumstances that will cause the Member to become a U.S. Person.

(b)  “Associated Company” means any company or undertaking which (i) is directly or indirectly controlled by or associated in business with the Corporation, and (ii) which has agreed, subject to the ongoing consent of the Vice President, to perform and observe the conditions, stipulations and provisions of the DC Program and to be included among the Employers under the DC Program.  “Associated Companies” means all such companies or undertakings.

(c)  “Corporation” means PepsiCo, Inc., a corporation organized and existing under the laws of the State of North Carolina, or its successor or successors.

(d)  “Dependant” means the person who shall receive the balance of a Member’s PIRP-DC Account upon the Member’s death. 

(e)  “DB Program” means the portion of the Plan that provides a program of defined benefits and that is described in the governing legal document entitled “The PepsiCo International Retirement Plan Defined Benefit Program (PIRP DB), as it may be amended from time to time.  The DB Program is also sometimes referred to as “PIRP-DB”.

(f)  “DC Program” means the portion of the Plan that provides a program of defined contributions and that is described in the governing legal document entitled “The PepsiCo International Retirement Plan Defined Contribution Program (PIRP-DC), as it may be amended from time to time.  The DC Program is also sometimes referred to as “PIRP-DC.”

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(g)  “Distribution Valuation Date” means the date as specified by the Vice President from time to time as of which PIRP-DC Accounts are valued for purposes of distributions under Article VI.  Currently, the Distribution Valuation Date for a Member is the month end that occurs just after the event specified in Article VI that triggers the Member’s distribution.  Accordingly, if the trigger event occurs on December 30 of a year, the current Distribution Valuation Date is December 31 of that year, and if the trigger event occurs on December 31 of a year, the current Distribution Valuation Date is January 31 of the following year.  The Vice President may change any current Distribution Valuation Date.  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 preceding business day.  

(h)  “Effective Date” means the date as of which the DC Program is effective, January 1, 2011. 

(i) “Eligible Employee” means an individual who the Vice President has determined (i) is employed exclusively outside of the United States on the regular staff of an Approved Employer on a full-time salaried basis, (ii) is neither actively accruing benefits that are derived from service under the DB Program nor is designated as being eligible to accrue such benefits, and (iii) is described in at least one of the following paragraphs 

(1)  The individual is on an assignment outside of his home country and it is judged to be impractical to have him participate in the retirement plan(s) sponsored by the Corporation (or an Affiliated Company) in his home country; 

(2)  The individual is on his second (or more) consecutive assignment outside of his home country, and the retirement plan(s) available to the individual in his home country do not include a retirement plan that is sponsored by the Corporation or an Affiliated Company (e.g., a case where only a statutory plan is available to the individual); or 

(3)  The individual is among a selected group of senior globalists on United States tax equalized packages whose positions and employment terms are among those that the Vice President has determined make them eligible to be considered for status as Active Members.  

The Vice President shall have the discretion to designate as an Eligible Employee any individual employed by an Approved Employer on a part-time basis who, but for his part-time status, otherwise satisfies the requirements of this subsection. 

(j)  “Eligible Spouse” means the individual to whom the Member is married, or to whom the Member was married on the date of his death.  The determination of whether a Member is married shall be made by the Vice President based on the law of the location that is determined by the Vice President to be the Member’s principal residence; 

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provided, however, that for purposes of the DC Program, a Member shall have only one Eligible Spouse.

(k)  “Employers” means the Corporation and any and every Associated Company or such one or more of any of them as the context shall determine or the circumstances require. “Employer” in relation to any person means whichever it is of the Employers in whose employment that person is or was at the relevant time or those Employers (if more than one) in whose employment he had been during the relevant period.  An “Approved Employer” means an Employer that, as of the time in question, has been approved by the Vice President (and remains approved) to have its Eligible Employees become and continue as Active Members hereunder.

(l)  “Entry Date” means the date as of which an Eligible Employee becomes a Member, which shall be the date that the Vice President specifies for the Eligible Employee’s admission to Membership.

(m)  “Interest Credit” means the credit made annually to a Member’s PIRP-DC Account pursuant to Section 4.01(b).

(n)  “Interest Rate” means the annualized rate of interest used to determine a Member’s Interest Credit.  As of the Effective Date, the Interest Rate is the rate of interest on 30-year Treasury securities as prescribed by the Commissioner of the United States Internal Revenue Service for the month of September immediately preceding the first day of the Plan Year to which an Interest Credit relates.  The Vice President shall have the discretion to change from time to time the basis for determining the Interest Rate as necessary to ensure that the Interest Rate is readily determinable and administrable, and that it can be reasonably expected to provide substantially a market rate of interest over time.  At all times the Interest Rate shall not exceed a level that may be considered to constitute earnings under Treasury Regulation § 1.409A-1(o).  

(o)  “Member” means an Eligible Employee who has been admitted to Membership in the DC Program pursuant to Article III and who remains entitled to a benefit under the DC Program.  In relation to each of the Employers, any reference to a Member means a Member in or formerly in its employment.  References to “Membership” are references to the status of being a Member.  The terms “Active Member” and “Inactive Member” shall have the respective meanings stated for these terms in Section 3.03.

(p)  “Pay Credit” means the credit made to an Active Member’s PIRP-DC Account pursuant to Section 4.01(a).

(q)  “Plan” means the PepsiCo International Retirement Plan, which as of January 1, 2011 consists of the DC Program and DB Program.

(r)  “Plan Year” means the 12-consecutive month period beginning on January 1 and ending on the following December 31 of the same calendar year.

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(s)  “PepsiCo Organization” means the controlled group of organizations of which the Corporation is a part, as defined by United States Internal Revenue Code section 414 and regulations issued thereunder.  An entity shall only be considered a member of the PepsiCo Organization during the period it is one of the group of organizations described in the preceding sentence. 

(t)  “PIRP-DC Account” means the unfunded, notional account maintained for a Member on the books of the Member’s Employer that indicates the dollar amount that, as of any time, is credited under the DC Program for the benefit of the Member.  The balance in such account shall be determined in accordance with interpretive principles and decisions applied by the Vice President.

(u)  “Salary” means (i) home notional base salary in the case of an Eligible Employee who is not paid on a United States payroll, and (ii) base salary plus bonus in the case of an Eligible Employee who is paid on a United States payroll.  In the case of an Eligible Employee who is employed in  a country other than the United States, the Vice President may authorize the Eligible Employee’s Salary to be increased to reflect an amount of notional bonus that is paid to such Eligible Employee.  The determination of an Eligible Employee’s Salary in accordance with the preceding two sentences shall be made by the Vice President and shall be conclusive and binding on all Eligible Employees.  

(v)  “Service” means the period during which an Eligible Employee was continuously in employment (including all permissible periods of authorized leave of absence) with any Approved Employer.  A permissible period of authorized leave of absence is a period of absence of not more than 12 months, unless a longer period is individually authorized in writing by the Vice President.  A break in service of less than 12 months shall not be considered to have broken the continuity of a Member’s Service.  Other breaks in service (including a break in service of at least 12 months and a break in service before an individual has become a Member) shall break the continuity of an individual’s Service, and employment before the break in service will only be counted as Service if it would otherwise qualify under this subsection and the Vice President approves its being counted.  For an individual who transfers from employment with an Employer while not an Eligible Employee to the status of an Eligible Employee of an Approved Employer, his pre-transfer period of employment with an Employer may be counted as Service only with the approval of the Vice President.  Similarly, for an individual who transfers from employment with an Approved Employer as an Eligible Employee to other employment with an Employer, his post-transfer period of employment with an Employer may be counted as Service only with the approval of the Vice President. Except as otherwise expressly provided by the Vice President, Service shall not include an individual’s periods of employment with any company or undertaking prior to it becoming an Employer or a member of the PepsiCo Organization.  

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(w)  “Status Change” means any change in a Member’s circumstances (other than a change in circumstances that constitutes an Approved Transfer) that will cause the Member to become a U.S. Person.

(x)  “U.S. Person” means: (1) a citizen of the United States of America; (2) a person lawfully admitted for permanent residence in the United States of America at any time during the calendar year, or who has applied for such permanent residence (within the meaning of United States Internal Revenue Code section 7701(b)(1)(A)); or (3) any other person who is a resident alien of the United States of America under United States Internal Revenue Code section 7701(b)(1)(A) because, for example, the person satisfies the substantial presence test under United States Internal Revenue Code section 7701(b)(3) or makes an election to be treated as a United States resident under United States Internal Revenue Code section 7701(b)(4).

(y)  “Valuation date” means each business day, as determined by the Vice President, as of which Members’ PIRP-DC Accounts are valued (for purposes other than distributions under Article VI) in accordance with DC Program procedures that are then currently in effect.  As of the Effective Date, the DC Program shall have a Valuation Date for all Members as of the last day of each Plan Year.  In addition, to the extent provided in Section 4.02, the DC Program shall have a special Valuation Date prior to the end of a Plan Year for Active Member’s who have an Approved Transfer (and for certain Active Members who have a Status Change) as described in Section 4.02.  In accordance with procedures that may be adopted by the Vice President, any current Valuation Date may be changed (but in such case adjustments shall apply in the operation of the DC Program as necessary to prevent duplicate or disproportionate benefits, as determined by the Vice President).  Values are determined as of the close of a Valuation Date or, if such date is not a business day, as of the close of the preceding business day.

(z)  “Vice President” means the Vice President of Benefits of PepsiCo, Inc. 

2.02    Construction.

(a)  Gender and Number:  In this document for the DC Program where the context does not otherwise determine, words importing the masculine gender shall include the feminine gender and words importing the singular number shall include the plural number and vice versa.  

(b)  Determining Periods of Years:  For the purposes of the DC Program, any period of 365 consecutive days (or of 366 consecutive days, if the period includes 29th February) shall be deemed to constitute a year, but not so that in the calculation of a number of years any day is counted more than once.  Where the amount of a benefit depends upon the calculation of a number of years or months without expressly requiring that these should be complete years or months, a proportionate amount (i.e., a number of days) may be given for any part of a year or month which would not otherwise be included in the calculation.  Where this document makes reference to months or parts of a year, or to any other period of time except a day, week or year the Vice President may 

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authorize the period to be counted in days or complete calendar months with each calendar month counted as 1/12th of a year.

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

(d)  Examples:  Whenever an example is provided or the text uses the term “including” followed by a specific item or items, or there is a passage having a similar effect, such passages of the document 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).

(e)  Subdivisions of this Document:  This document is divided and subdivided using the following progression:  articles, sections, subsections, paragraphs, subparagraphs and clauses.  Articles are designated by capital roman numerals.  Sections are designated by Arabic numerals containing a decimal point.  Subsections are designated by lower-case letters in parentheses.  Paragraphs are designated by Arabic numerals in parentheses.  Subparagraphs are designated by lower-case roman numerals in parentheses.  Clauses are designated by upper-case letters in parentheses.  Any reference in a section to a subsection (with no accompanying section reference) shall be read as a reference to the subsection with the specified designation contained in that same section.  A similar rule shall apply with respect to paragraph references within a subsection and subparagraph references within a paragraph.

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ARTICLE III – MEMBERSHIP

3.01    Eligibility for Membership.  

Every person who the Vice President determines is an Eligible Employee shall be eligible for Membership.

3.02    Admission to Membership. 

Every person who the Vice President determines is an Eligible Employee, and who is not during the relevant time a U.S. Person, shall, following the approval of his Membership by the Vice President, be admitted to Membership effective as of his Entry Date.  For this purpose, the relevant time includes a sufficient period before the Eligible Employee’s Proposed Entry Date as is necessary to avoid PIRP-DC Accounts being considered deferred compensation that is subject to Section 409A of the United States Internal Revenue Code.  No Eligible Employee or any other person shall be admitted to Membership without the approval of the Vice President.

3.03    Active and Inactive Membership.  

A Member shall be an Active Member during the period that he is – (a) employed as an Eligible Employee, (b) not a U.S. Person, and (c) currently approved for status as an Active Member by the Vice President.  A Member shall be an Inactive Member during any period that he does not currently meet all of the requirements to be an Active Member.  

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ARTICLE IV – CONTRIBUTIONS

4.01    Contributions.

To the extent provided in subsections (a) and (b) below, the Employer shall allocate Pay Credits and Interest Credits to a Member’s PIRP-DC Account, each determined by the Vice President as follows –   

(a)  Pay Credit.  To receive a Pay Credit for a Plan Year, an individual must be an Active Member during such year.  The amount of an Active Member’s Pay Credit for a Plan Year shall be determined by multiplying the Active Member’s annualized Salary in effect as of that year’s Valuation Date by the Active Member’s applicable percentage, which shall be one of the following:  5%, 8%, 10%, 12% or 18%.  The Vice President shall specify the Active Member’s applicable percentage as of the Active Member’s Entry Date.  For each subsequent Plan Year that the individual is an Active Member, the Vice President may specify a new applicable percentage that shall apply to the Active Member for such Plan Year.  

(b)  Interest Credit.  To receive an Interest Credit for a Plan Year, an individual must be either an Active Member or Inactive Member during such year, and the individual must have had a balance in his PIRP-DC Account as of the prior Plan Year’s Valuation Date.  The amount of a Member’s Interest Credit shall be determined by the Vice President by multiplying the Interest Rate for the period since the last Valuation Date by the balance of the Member’s PIRP-DC Account as of such last Valuation Date.  

A Member’s Pay Credit and Interest Credit shall be determined by the Vice President as soon as administratively practicable after each Valuation Date.  If a Member has less than one full year of Active Membership since such last Valuation Date (e.g., as may apply in the Member’s first and last year of Membership), the Member’s Pay Credit as otherwise determined under subsection (a) above shall be prorated for such period based upon the Member’s fractional year of Active Membership.  If a Member has less than one full year of Membership since such last Valuation Date, any Interest Credit as otherwise available and determined under subsection (b) above shall be prorated for such period based upon the Member’s fractional year of Membership (e.g., as may apply in the Member’s last year of Membership).  A fractional year shall be computed by dividing the Member’s days of Membership or Active Membership (as applicable) during the Plan Year by the total number of days in such Plan Year.  A period of paid leave of absence during a Plan Year shall be considered a period of Active Membership for purposes of determining a Member’s Pay Credit for the Plan Year in accordance with the prior sentence.  However, a period of unpaid leave of absence during a Plan Year shall not be considered a period of Active Membership for purposes of determining a Member’s Pay Credit for the Plan Year in accordance with the prior sentence (and as a result, the Pay Credit for the Plan Year containing the unpaid leave shall be prorated, or there shall be no Pay Credit, all as necessary to limit Pay Credits to the Member’s period of Active Membership during the Plan Year).  In the event a prorated Pay Credit and Interest Credit relate to the Member’s final year of Membership, the Pay Credit and Interest Credit shall be determined as of the Member’s Distribution Valuation Date (with proration based upon the Member’s fractional final year of Membership).  The calculation 

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of the Pay Credit and Interest Credit by the Vice President shall be conclusive and binding on all Members (and their Dependants).  

4.02    Special Rules for Approved Transfers and Status Changes.

(a)  Automatic Special Valuation Dates for Approved Transfers.  Notwithstanding Section 4.01 above, in the case of an Active Member who will have an Approved Transfer during a Plan Year, the Active Member shall automatically have a special Valuation Date as of the last business day before the earlier of – (a) the Active Member’s Approved Transfer, or (b) the day the Active Member would become a U.S. Person in connection with the Approved Transfer.  

(b)  Special Valuation Dates for Status Changes.  Also notwithstanding Section 4.01 above, in the case of an Active Member who will have a Status Change, the Active Member may request that the Vice President grant him a special Valuation Date as of the last business day before the Active Member’s Status Change.  In order for a special Valuation Date related to a Status Change to be valid and effective under the DC Program, the Active Member’s request and the Vice President’s approval of the request must both be completely final and in place prior to the special Valuation Date.  

A special Valuation Date under either subsection (a) or (b) above shall apply solely for purposes of determining and allocating the Active Member’s Pay Credit for such Plan Year.  The Pay Credit that the affected Active Member shall receive on this special Valuation Date shall be prorated to reflect the Member’s period of Active Membership during the Plan Year through the special Valuation Date.  If a Member has a Status Change during a Plan Year but is not timely and effectively authorized for a special Valuation Date as provided in subsection (b) above, the Member will not receive a Pay Credit for such Plan Year.     

4.03    Offsets.

Notwithstanding Sections 4.01 and 4.02 above, the Corporation may reduce the amount of any payment or benefit that is or would become payable to or on behalf of a Member by the amount of any obligation of the Member to the Corporation or by the amount of – 

(a)  Any material benefits accrued by the Member under a retirement plan sponsored by the Corporation or by any country, state, province or other political subdivision or locality, to the extent the Vice President determines that the benefit amount under such retirement plan is for Service or Salary that is taken into account in providing Pay Credits under the DC Program, and

(b)  Any termination indemnity or other payment to the Member by the Employer or PepsiCo Organization related to the Member’s termination of employment, to the extent the Vice President determines that the payment is reasonably related to Service that is taken into account in providing Pay Credits under the DC Program.  

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Consistent with the foregoing, appropriate reductions may be made in the Pay Credits and Interest Credits that otherwise would be provided to the Member under Sections 4.01 and 4.02, the balance in the Member’s PIRP-DC Account under Article V, or the Member’s distributions under Article VI.  The determination of whether a benefit is material and all other aspects of the application of this Section 4.03 is solely in the independent discretion of the Vice President.   

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ARTICLE V – MEMBER ACCOUNTS

5.01    Accounting for Members’ Interests.

Pay Credits and Interest Credits shall be credited to a Member’s PIRP-DC Account as of the Valuation Date to which such credits relate (or, in the case of Pay Credits and Interest Credits that relate to the Member’s final year of Membership, as of the Member’s Distribution Valuation Date) or as soon as administratively practicable thereafter.  A Member’s PIRP-DC Account is a bookkeeping device to track the notional value of the Member’s Pay Credits and Interest Credits (and his Employer’s liability for such credits).  No assets shall be reserved or segregated in connection with any PIRP-DC Account, and no PIRP-DC Account shall be funded, insured or otherwise secured.

5.02    Vesting.  

Subject to Sections 4.03 and 9.14, a Member shall be fully vested in, and have a nonforfeitable right to, his PIRP-DC Account upon completing 3 years of Service, or if earlier, upon the death or disability of the Member while employed by the Employer or PepsiCo Organization.  The determination of whether a Member has become disabled for this purpose shall be made by the Vice President in accordance with such standards as the Vice President deems to be appropriate as of the time in question. 

5.03    Special Vesting for Approved Transfers and Status Changes.

(a)  Automatic Special Vesting for Approved Transfers.  Notwithstanding Section 5.02 above, in the case of an Active Member who will have an Approved Transfer during a Plan Year, the Active Member shall automatically have special vesting apply as of the last business day before the earlier of – (a) the Active Member’s Approved Transfer, or (b) the day the Active Member would become a U.S. Person in connection with the Approved Transfer.  

(b)  Special Vesting for Status Changes.  Also notwithstanding Section 5.02 above, in the case of an Active Member who will have a Status Change, the Active Member may request that the Vice President apply special vesting to him as of the last business day before the Active Member’s Status Change.  In order for special vesting related to a Status Change to be valid and effective under the DC Program, the Active Member’s request and the Vice President’s approval of the request must both be completely final and in place prior to the date that the special vesting applies.  

The effect of special vesting applying to a Member in accordance with this either subsection (a) or (b) above is that the Member will become vested, to the same extent as could apply under Section 5.02 if the Member vested under that Section, as of the date that the special vesting applies.  

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ARTICLE VI – DISTRIBUTION OF BENEFITS

6.01    Distribution Rules Generally.

A Member’s PIRP-DC Account shall be distributed based upon first to occur of the Member’s termination of employment with the PepsiCo Organization or death, as provided in Sections 6.02 and 6.03 respectively, subject to Section 4.06 (vesting).  All distributions shall be made in cash.

6.02    Distributions Upon Termination of Employment.  

If a Member’s PIRP-DC Account becomes distributable based upon his termination of employment with the PepsiCo Organization, such distribution shall be made in a single lump sum payment on the first of the month that immediately follows the Member’s Distribution Valuation Date.  In the case of a Member whose termination of employment with the PepsiCo Organization occurs as a result of the Member becoming disabled, for purposes of this Section, the determination of whether such Member is disabled and the date on which such Member’s termination of employment is considered to occur shall be made by the Vice President.

6.03    Distributions Upon Death.  

If a Member’s PIRP-DC Account becomes distributable based upon his death, such distribution shall be made in a single lump sum payment on the first day of the month that immediately follows the Member’s Distribution Valuation Date.  Amounts paid following a Member’s death shall be paid to the Member’s Dependant; provided, however, that if no Dependant designation is in effect at the time of the Member’s death (as determined by the Vice President), or if all persons designated as Dependants have predeceased the Member, then the payments to be made pursuant to this Section shall be distributed to the Member’s Eligible Spouse, or if the Member is not married at the time of his death, to his estate.  

6.04    Valuation.

In determining the amount of any individual distribution pursuant to this Article, the Member’s PIRP-DC Account shall continue to be credited with Interest Credits (and debited for expenses) as specified in Article V until the Member’s Distribution Valuation Date.  

6.05    Designation of Dependant.

A Member shall designate one or more Dependants who will be entitled to any amounts payable on his death.  A Member shall have the right to change or revoke his Dependant designation at any time prior to the effective date of such election.  If the Member is married at the time he or she designates a Dependant(s), any designation under this section of a Dependant(s) who is not the Member’s Eligible Spouse shall require the written consent of the Member’s Eligible Spouse.  A revocation of a Dependant(s) does not require consent by the Member’s Eligible Spouse.  The designation of any Dependant(s), and any change or revocation thereof, and any written consent of a Member’s Eligible Spouse required by this Section shall be made in 

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accordance with rules adopted by the Vice President, shall be made in writing on forms provided by the Vice President, and shall not be effective unless and until filed with the Vice President.

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ARTICLE VII – ADMINISTRATION

7.01    Authority to Administer Plan.  

(a)  Administration by the Vice President:  The Plan shall be administered by the Vice President, who shall have the authority to interpret the Plan and issue such regulations as he deems appropriate. All actions by the Vice President hereunder may be taken in his sole discretion, and all interpretations, determinations and regulations made or issued by the Vice President shall be final and binding on all persons and parties concerned.  

(b)  Authority to Delegate: The Vice President may delegate any of his responsibilities under the Plan to other persons or entities, or designate or employ other persons to carry out any of his duties, responsibilities or other functions under the Plan.  Any reference in the Plan to an action by the Vice President shall, to the extent applicable, refer to such action by the Vice President’s delegate or other designated person.  

7.02    Facility of Payment.

Whenever, in the opinion of the Vice President, a person entitled to receive any payment of a benefit hereunder is under a legal disability or is incapacitated in any way so as to be unable to manage his financial affairs, the Vice President may direct that payments from the Plan be made to such person’s legal representative for his benefit, or that the payment be applied for the benefit of such person in such manner as the Vice President considers advisable.  Any payment of a benefit 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.

7.03    Claims Procedure.  

The Vice President 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 his decisions on such matters are final and conclusive.  As a result, benefits under this Plan will be paid only if the Vice President decides in his discretion that the person claiming such benefits is entitled to them.  This discretionary authority is intended to be absolute, and in any case where the extent of this discretion is in question, the Vice President 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 Member or Dependant (a “claimant”) is wholly or partially denied, the Vice President, or a party designated by the Vice President, will provide such claimant within the 90-day period following the receipt of the claim by the Vice President, a comprehensible written notice setting forth:

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

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

(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 (including the time limits applicable to such process).

If the Vice President determines that special circumstances require an extension of time for processing the claim he may extend the response period from 90 to 180 days.  If this occurs, the Vice President will notify the claimant before the end of the initial 90-day period, indicating the special circumstances requiring the extension and the date by which the Vice President expects to make the final decision.  Upon review, the Vice President shall provide the claimant a full and fair review of the claim, including the opportunity to submit to the Vice President comments, document, records and other information relevant to the claim and the Vice President’s review shall take into account such comments, documents, records and information regardless of whether it was submitted or considered at the initial determination.  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.  If this occurs, notice of the extension will be furnished to the claimant before the end of the initial 60-day period, indicating the special circumstances requiring the extension and the date by which the Vice President expects to make the final decision.  The final decision shall be in writing and drafted in a manner calculated to be understood by the claimant; include specific reasons for the decision with references to the specific Plan provisions on which the decision is based; and provide that the claimant is entitled to receive, upon request and free of charge, copies of, all documents, records, and other information relevant to his claim for benefits.

Any claim under the Plan that is reviewed by a court, arbitrator or any other tribunal shall be reviewed solely on the basis of the record before the Vice President at the time it made its determination.  In addition, any such review shall be conditioned on the claimant’s having fully exhausted all rights under this section.  

7.04    Limitations on Actions.

Any claim filed under Article VII and any action filed in any court or other tribunal by or on behalf of a former or current Employee, Member, Dependant or any other individual, person or entity (collectively, a “Petitioner”) for the alleged wrongful denial of Plan benefits must be brought within two years of the date the Petitioner’s cause of action first accrues.  For purposes of this subsection, a cause of action with respect to a Petitioner’s benefits under the Plan shall be deemed to accrue not later than earlier of (i) when the Petitioner has received the calculation of the benefits that are the subject of the claim or legal action; (ii) the date identified to the Petitioner by the Vice President on which payment shall be made; or (ii) when he has actual or constructive knowledge of the facts that are the basis of his claim.  Failure to bring any such 

16

claim or cause of action within this two-year time frame shall preclude a Petitioner, or any representative of the Petitioner, from filing the claim or cause of action.  Correspondence or other communications following the mandatory appeals process described above shall have no effect on this two-year time frame.  

7.05    Restriction of Venue.

Any claim or action filed in court or any other tribunal in connection with the Plan by or on behalf of a Petitioner shall only be brought or filed in the state or federal courts of New York, specifically the state or federal court, whichever applies, located nearest the Corporation’s headquarters.

7.06    Effect of Specific References.

Specific references in the Plan to the Vice President’s discretion shall create no inference that the Vice President’s discretion in any other respect, or in connection with any other provision, is less complete or broad.

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ARTICLE VIII – AMENDMENT AND TERMINATION

8.01    Continuation of the Plan.  

While the Corporation intends to continue the Plan indefinitely, it assumes no contractual obligation as to its continuance.  The Corporation hereby reserves the right, in its sole discretion, to amend, terminate, or partially terminate the Plan at any time provided, however, that no such amendment or termination shall reduce the balance (determined as of the date of such amendment or termination) in the Plan account maintained for the benefit of a Member or his Dependant, except to the extent the Member becomes entitled to an amount under another plan or practice maintained by an Employer.  Specific forms (including times) of payment are not protected under the preceding sentence.

8.02    Amendment.  

The Corporation may, in its sole discretion, make any amendment or amendments to this Plan from time to time, with or without retroactive effect, subject to Section 8.01.  An Employer (other than the Corporation) shall not have the right to amend the Plan.

8.03    Termination.  

The Corporation may terminate the Plan, either as to its participation or as to the participation of one or more Employers.  If the Plan is terminated with respect to fewer than all of the Employers, the Plan shall continue in effect for the benefit of the employees of the remaining Employers.

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ARTICLE IX – MISCELLANEOUS
9.01    Unfunded Plan.

The Employers’ obligations under the Plan shall not be funded, but shall constitute liabilities by the Employer payable when due out of the Employer’s general funds.  To the extent a Member 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 Employer.  

9.02    Costs of the Plan.

Unless otherwise agreed by the Corporation, all costs, charges and expenses of or incidental to the administration and management of the Plan shall be the costs, charges and expenses of the Employers and shall be paid by each Employer based on the proportion of Members who are employed by such Employer as compared to the total number of Members at the time the cost or expense is incurred.

9.03    Temporary Absence of Member.

If a Member is absent from duty by reason other than death, discharge, retirement or quitting (e.g., sickness, accident, layoff, vacation), he shall be deemed to have terminated employment on the date that is 12 months after the date on which he is absent, unless the Vice President determines otherwise.  If the Member’s absence from duty is by reason of his service as a full-time member of the armed forces of any country or of any organization engaged in national service of any such country, he shall not be deemed to have terminated employment so long as he is regarded by the Employer as remaining in employment or until he shall resign permanently from employment, whichever shall first occur.

9.04    Taxes, Etc.

In the event any tax or assessment or other duty is determined by the Vice President to be owing in respect of any benefit payable from the Plan, the Plan shall be entitled to withhold an amount not exceeding the amount of any such tax or assessment or other duty from the benefit payable and shall apply the same in satisfaction of said tax or assessment or other duty.

9.05    Nonguarantee of Employment.

Nothing in the Plan shall be construed as a contract of employment between an Employer and any of its employees, or as a right of any such employee to continue in the employment of the Employer, or as a limitation of the right of an Employer to discharge any of its employees, with or without cause.  

9.06    No Right to Benefits.

No person, whether or not being a Member, shall have any claim, right or interest under the Plan except as provided by the terms of the Plan.  In the event of a Member’s termination of employment by an Employer, the resulting cessation of his Membership shall not be grounds for 

19

any damages or any increase in damages in any action brought against the Employer or any member of the PepsiCo Organization with respect to such termination.

9.07    Charges on Benefits.
 
All benefits in respect of a Member under the Plan shall stand charged with and be subject to deductions therefrom of all sums in respect of losses to a member of the PepsiCo Organization or Employer or otherwise caused by misdemeanor of the Member and on production by the member of the PepsiCo Organization or Employer of proof satisfactory to the Vice President that any such loss ought to be made good by a Member.  The relevant amount shall be deductible from the Member’s benefits and be payable to the Employer or member of the PepsiCo Organization whose receipt shall be a valid discharge for the same.

9.08    Prohibited Misconduct.

(a)  Notwithstanding any other provision of this Plan to the contrary, if the Vice President determines that a Member has engaged in Prohibited Misconduct at any time prior to the second anniversary of his termination of employment with the PepsiCo Organization, the Member shall forfeit all Pay Credits and Interest Credits (whether paid previously, being paid currently or payable in the future), and his PIRP-DC Account shall be adjusted to reflect such forfeiture and previously paid Pay Credits and Interest Credits shall be recovered.  As a condition to Membership in this Plan, each Member agrees to this and each Member agrees to repay PepsiCo the amounts it seeks to recover under this Section 9.08.  

(b)  Any of the following activities engaged in, directly or indirectly, by a Member shall constitute Prohibited Misconduct:

(1)  The Member accepting any employment, assignment, position or responsibility, or acquiring any ownership interest, which involves the Member’s “Participation” (as defined below) in a business entity that markets, sells, distributes or produces “Covered Products” (as defined below), unless such business entity makes retail sales or consumes Covered Products without in any way competing with the PepsiCo Organization.

(2)  The Member, directly or indirectly (including through someone else acting on the Member’s recommendation, suggestion, identification or advice), soliciting any PepsiCo Organization employee to leave the PepsiCo Organization’s employment or to accept any position with any other entity.

(3)  The Member using or disclosing to anyone any confidential information regarding the PepsiCo Organization other than as necessary in his position with the PepsiCo Organization.  Such confidential information shall include all non-public information the Member acquired as a result of his positions with the PepsiCo Organization which might be of any value to a competitor of the PepsiCo Organization, or which might cause any economic loss 

20

or substantial embarrassment to the PepsiCo Organization or its customers, bottlers, distributors or suppliers if used or disclosed.  Examples of such confidential information include non-public information about the PepsiCo Organization’s customers, suppliers, distributors and potential acquisition targets; its business operations and structure; its product lines, formulas and pricing; its processes, machines and inventions; its research and know-how; its financial data; and its plans and strategies.

(4)  The Member engaging in any acts that are considered to be contrary to the PepsiCo Organization’s best interests, including violating the Corporation’s Code of Conduct, engaging in unlawful trading in the securities of the Corporation or of any other company based on information gained as a result of his employment with the PepsiCo Organization, or engaging in any other activity which constitutes gross misconduct.

(5)  The Member engaging in any activity that constitutes fraud.

For purposes of this subsection, “Participation” shall be construed broadly to include:  (i) serving as a director, officer, employee, consultant or contractor with respect to such a business entity; (ii) providing input, advice, guidance or suggestions to such a business entity; or (iii) providing a recommendation or testimonial on behalf of such a business entity or one or more products it produces.  For purposes of this subsection, “Covered Products” shall mean any product that falls into one or more of the following categories, so long as the PepsiCo Organization is producing, marketing, selling or licensing such product anywhere in the world – beverages, including without limitation carbonated soft drinks, tea, water, juice drinks, sports drinks, coffee drinks and value-added dairy drinks; juices and juice products; snacks, including salty snacks, sweet snacks meat snacks, granola and cereal bars, and cookies; hot cereals; pancake mixes; value-added rice products; pancake syrups; value-added pasta products; ready-to-eat cereals; dry pasta products; or any product or service that the Member had reason to know was under development by the PepsiCo Organization during the Member’s employment with the PepsiCo Organization.

9.09    Notices.

Any notice which under the Plan is required to be given to or served upon the Plan shall be deemed to be sufficiently given to or served upon the Plan if it is in writing and delivered to the Vice President.  In any case where under the Plan any notice shall be required to be given to Members, it shall be sufficient if such notice is delivered to the Member’s last known address on file in the records of the Employer or delivered to the Member pursuant to any other method (e.g., electronically) that the Vice President determines is reasonably available to the Member.

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9.10    Plan Documentation.

Every Member shall on demand be entitled to a copy of the Plan.

9.11    Currency of Payment.

Payment of benefits under the Plan shall be made in United States dollars, or other "eligible currency," as approved by the Vice President.  The amount otherwise payable in United States dollars would be converted to the selected currency using the exchange rate, based on the methodology approved by the Vice President from time to time.

9.12    Governing Law.

The Plan shall in all respects be governed by and interpreted according to the laws of the State of New York. 

9.13    Exemption from ERISA.

The Plan is intended to be exempt from the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), as a plan maintained outside of the United States primarily for the benefit of persons substantially all of whom are nonresident aliens of the United States.  In order to preserve this exemption from ERISA, Active Membership in the Plan shall be limited to individuals who are nonresident aliens of the United States and whose assigned work locations are outside the United States, and it is intended that all permanent records and documentation relating to the administration of the Plan shall be kept at a location that is outside of the United States.    

9.14    Exemption from Section 409A.

In order to permit this Plan to be completely exempt from United States Internal Revenue Code section 409A, this Plan shall be subject to the special operating rules and limitations in this Section 9.14.  It is the intent of the Plan that no Member who is a U.S. Person may in any way have their benefit from the Plan vest, increase or in any way be enhanced (collectively, a “Benefit Enhancement”) as a result of their compensation or service while a U.S. Person.  However, Interest Credits may be provided on the PIRP-DC Account of a Member who is a U.S. Person, but only to the extent the balance in the PIRP-DC Account is derived from Pay Credits that relate to Service completed while the Member was not a U.S. Person (and Interest Credits on such Pay Credits).  Accordingly, no Member shall become entitled to a Benefit Enhancement with respect to a calendar year until it is determined, following the close of such year, that the Member was not a U.S. Person with respect to such year.  Notwithstanding the preceding sentence, and subject to Section 4.07(b), in the calendar year a Member’s benefit under this Plan is scheduled to commence, the Vice President may authorize a Benefit Enhancement for the calendar year of benefit commencement to the extent the Vice President determines satisfactorily that the Member will not be a U.S. Person for such year.  In other cases, the Member’s benefit will commence under this Plan without any Benefit Enhancement related to the calendar year of commencement, and appropriate adjustments will be made to the Member’s benefit in the 

22

following year if it is determined that the Member was not a U.S. Person in such calendar year of commencement.

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ARTICLE X – SIGNATURE 

This Plan is hereby adopted this 16th day of December, 2010, to be effective as of January 1, 2011.
                
	
			
	 
	 
	 

	 
	PEPSICO, INC.

	 
	 
	 

	 
	By:
	/s/ Cynthia M. Trudell

	 
	 
	Cynthia M. Trudell

	 
	 
	Senior Vice President, Human Resources Chief Personnel Officer

	 
	 
	 

	 
	 
	 

APPROVED:

By:  /s/ Stacy L. DeWalt
Stacy L. DeWalt
Employee Benefits Counsel
Law Department

24

AMENDMENT ONE TO THE 
PEPSICO INTERNATIONAL RETIREMENT PLAN
 (As Amended and Restated Effective as of January 1, 2010)

The PepsiCo International Retirement Plan (the “Plan”) is hereby amended as follows, effective January 1, 2011:

I.

Section (I)(f)(1) of Table A of the Defined Benefit Program component of the Plan is hereby deleted in its entirety and replaced as follows:

		
	(1)
	The Pension calculated as provided in (b) above, but based on the Pensionable Service the Member would have earned had he remained an Active Member until his Normal Retirement Age (subject to a maximum of 35 years) and Highest Average Monthly Salary as of September 30, 2003, reduced by a fraction, the numerator of which is the Member’s actual years of Pensionable Service prior to October 1, 2003 (subject to a maximum of 35 years) and the denominator of which is the years of Pensionable Service he would have earned had he remained an Active Member until his Normal Retirement Age.

II.

The fifth paragraph of Article I – History and General Information of the Defined Contribution Program component of the Plan is hereby deleted in its entirety and replaced with the following:

Effective January 1, 2011, the Corporation established a new defined contribution structure (the “DC Program”) to benefit selected international employees for whom it has been determined to be appropriate (i.e., employees on assignments outside of their home countries for whom it is judged to be impractical to have them participate in their home country retirement plans, and employees who are among a selected group of senior globalists on United States tax equalized packages).  The terms of the DC Program are set forth in this document, which is the governing legal document for the DC Program.  

Together, the DC Program and the DB Program set forth the terms of a single Plan.  The DC Program is also sometimes referred to in employee communications as the PepsiCo International Pension Plan or “PIPP.”

                
	
			
	 
	 
	 

	 
	PEPSICO, INC.

	 
	 
	 

	 
	By:
	/s/ Cynthia M. Trudell

	 
	 
	Cynthia M. Trudell

	 
	 
	Executive Vice President, Human Resources Chief Personnel Officer

	 
	 
	Date: December 20, 2011

APPROVED:

By:  /s/ Stacy L. DeWalt
Stacy L. DeWalt
Employee Benefits Counsel
Law Department

2

AMENDMENT TWO TO THE
PEPSICO INTERNATIONAL RETIREMENT PLAN
(As Amended and Restated Effective as of January 1, 2010)

The PepsiCo Internal Retirement Plan (the “Plan”) is hereby amended as follows, effective as of January 1, 2013:

I.
The last paragraph of Section 2.01(v) of the Defined Benefit Program is amended in its entirety to read as follows:
If a Member has Salary in accordance with the prior sentence and then ceases to be employed by an Employer (but the Member remains employed by a member of the PepsiCo Organization), compensation while employed by the member of the PepsiCo Organization that otherwise would qualify as Salary hereunder shall be considered Salary for purposes of the DB Program.  In the event a Member’s Salary is either (i) paid in currency other than United States dollars or (ii) paid in United States dollars but not tied to the United States salary ranges established by the Corporation, as updated from time to time, such currency shall be converted to United States dollars according to procedures established by the Global Mobility Team, or if no so such procedures exist as of the time in question, as reasonably determined by the Vice President.  Notwithstanding the foregoing provisions of this definition, the Vice President may exercise his discretion to determine a Member's Salary based on an alternative definition that is different than that set forth above.  

II.
The Defined Contribution Program is amended by the addition of the following Appendix thereto:
APPENDIX
Effective January 1, 2013, the Vice President, in his or her sole discretion, may establish Pay Credit schedules other than those provided for in Section 4.01 of the DC Program (i.e., other than the 5%, 8%, 10%, 12% or 18% schedules provided therein) to apply in the case of a Member (or Members) specifically designed by the Vice President for this purpose, provided that each such arrangement otherwise meets all applicable requirements of the Plan. 
            

	
			
	 
	 
	 

	 
	PEPSICO, INC.

	 
	 
	 

	 
	By:
	/s/ Cynthia M. Trudell

	 
	 
	Cynthia M. Trudell

	 
	 
	Executive Vice President, Human Resources Chief Personnel Officer

	 
	 
	Date: December 18, 2013

APPROVED:

By:    /s/ Stacy D. Grindal
Stacy D. Grindal
Senior Legal Director, 
Employee Benefits Counsel

Date:  December 12, 2013

2Exhibit 10.1

 

SETTLEMENT AGREEMENT AND RELEASE

 

It is hereby agreed by and among the parties herein as follows:

 

1.                                      Parties and Effective Date

 

1.1.                            “AIG” shall mean American International Group, Inc.

 

1.2.                            “Plaintiffs” shall mean (i) AIG and International Lease Finance Corporation (“ILFC”), on behalf of and including themselves and all their present or former parents, direct and indirect subsidiaries, divisions, and affiliates, (ii) current and former employees, directors, officers, shareholders, partners, managers, investors, principals, attorneys, accountants, auditors, insurers, representatives, independent contractors, vendors, suppliers, servants and agents of the entities described in the foregoing clause (i) (for the avoidance of doubt, such employees, directors, officers, shareholders, partners, managers, investors, principals, attorneys, accountants, auditors, insurers, representatives, independent contractors, vendors, suppliers, servants and agents only constitute “Plaintiffs” in their capacity as such of (and for) an entity identified in clause (i) and not otherwise), and (iii) the predecessors, successors, heirs, and assigns of each of the Persons described in the foregoing clauses (i) and (ii).

 

1.3.                            “ALC” shall mean (i) Air Lease Corporation on behalf of and including itself and all its present or former parents, direct and indirect subsidiaries, divisions, and affiliates, (ii) current and former employees, directors, officers, shareholders, partners, managers, investors, principals, attorneys, accountants, auditors, insurers, representatives, independent contractors, vendors, suppliers, servants and agents of the entities described in the foregoing clause (i) (for the avoidance of doubt, such employees, directors, officers, shareholders, partners, managers, investors, principals, attorneys, accountants, auditors, insurers, representatives, independent contractors, vendors, suppliers, servants and agents only constitute “ALC” in their capacity as such of (and for) an entity identified in clause (i) and not otherwise), and (iii) the predecessors, successors, heirs, and assigns of each of the Persons described in the foregoing clauses (i) and (ii).

 

1.4.                            “The Leonard Green Defendants” shall mean (i) Leonard Green & Partners, L.P., Green Equity Investors V, L.P., and Green Equity Investors Side V, L.P. on behalf of and including themselves and all their present or former parents, direct and indirect subsidiaries, general partners, limited partners, divisions, and affiliates, (ii) current and former employees, directors, officers, shareholders, partners, managers, investors, principals, attorneys, accountants, auditors, insurers, representatives, independent contractors, vendors, suppliers, servants and agents of the entities described in the foregoing clause (i) (for the avoidance of doubt, such employees, directors, officers, shareholders, partners, managers, investors, principals, attorneys, accountants, auditors, insurers, representatives, independent contractors, vendors, suppliers, servants and agents only constitute “Leonard Green” in their capacity as such of (and for) an entity identified in clause (i) and not otherwise), and (iii) the predecessors, successors, heirs, and assigns of each of the Persons described in the foregoing clauses (i) and (ii).

 

1

 

1.5.                            “The Individual Defendants” shall mean (i) Steven Udvar-Házy, John Plueger, Marc Baer, Grant Levy, Michael Bai, Housni Chraibi, Chi Yan, Robert McNitt, Jenny Van Le, Lance Pekala, and William MacCary, and (ii) attorneys, accountants, auditors, insurers, representatives, and agents of each of the Persons described in the foregoing clauses (i) (for the avoidance of doubt, such employees, attorneys, accountants, auditors, insurers, representatives and agents only constitute “Individual Defendants” in their capacity as such of (and for) an entity identified in clause (i) and not otherwise), and (iii) the predecessors, successors, heirs, and assigns of each of the Persons described in the foregoing clauses (i) and (ii).

 

1.6.                            “Defendants” shall mean ALC, the Leonard Green Defendants, and the Individual Defendants.

 

1.7.                            This Settlement Agreement and Release (this “Agreement”) is made and entered into as of the 22nd day of April 2015 (the “Effective Date”), by and between AIG, ILFC, AerCap Holdings N.V. (“AerCap”), ALC, the Leonard Green Defendants, and the Individual Defendants.  The above parties are sometimes referred to in this Agreement individually as “Party” or collectively as “the Parties.”

 

2.                                      Background Facts

 

This Agreement is made in light of the following facts:

 

2.1.                            On April 24, 2012, AIG and ILFC filed a lawsuit against ALC, Steven Udvar-Házy, John Plueger, Grant Levy, Marc Baer, Robert McNitt, William MacCary, Jenny Van Le, Chi Yan, Michael Bai, Lance Pekala, and Housni Chraibi in Los Angeles Superior Court.  That lawsuit was captioned American International Group and International Lease Finance Corporation v. Air Lease Corporation, Steven Udvar-Hazy, John Plueger, Marc Baer, Grant Levy, Michael Bai, Housni Chraibi, Lance Pekala, Chi Yan, Robert McNitt, Jenny Van Le, William MacCary and Does 1-20, Los Angeles Superior Court Case No. BC483370.  The lawsuit alleged the following causes of action: Breach of Fiduciary Duty, Aiding and Abetting Breach of Fiduciary Duty, Breach of Duty of Loyalty, Aiding and Abetting Breach of Duty of Loyalty, Misappropriation of Trade Secrets, and Violations of Penal Code Section 502, Labor Code Section 2834, Labor Code Section 2856, Labor Code Section 2863, Labor Code Section 2857, and California Business & Professions Code 17200.  Not all Defendants were named in all causes of action.

 

2.2.                            On August 15, 2013, ALC filed cross claims against AIG and ILFC (“Cross-Complaint”).  ALC alleged the following causes of action:  Breach of Contract for the Sale of Goods, California Business and Professions Code Section 17200, Breach of Written Contract, Intentional Interference with Contractual Relations, Intentional Interference with Prospective Economic Relations, and Declaratory Judgment.  On November 14, 2013, ALC filed its Second Amended Cross-Complaint that alleged Breach of Contract for the Sale of Goods.  The above-referenced lawsuit, including as amended, together with the Cross-Complaint, including as amended, shall be referred to as “the Litigation” throughout this Agreement.

 

2.3.                            In response to the Complaints as amended in this Litigation, Defendants answered, denied the causes of action, and asserted affirmative defenses.  In response to the Cross-Complaint as amended in this Litigation, Plaintiffs answered, denied the causes of action, and asserted affirmative defenses.

 

2

 

2.4.                            On August 1, 2014, AIG and ILFC dismissed Lance Pekala without prejudice from the Litigation.

 

2.5.                            On April 23, 2014, AIG and ILFC filed their Fifth Amended Complaint adding Leonard Green & Partners, L. P. as a defendant in the Litigation.  By the Seventh Amended Complaint, filed on January 2, 2015, Green Equity Investors V, L.P. and Green Equity Investors Side V, L.P. were added as defendants in the Litigation.  The causes of action against ALC, the Individual Defendants, and the Leonard Green Defendants were as follows:  Breach of Fiduciary Duty, Aiding and Abetting Breach of Fiduciary Duty, Conspiracy to Breach Fiduciary Duty, Breach of the Duty of Loyalty, Aiding and Abetting Breach of the Duty of Loyalty, Conspiracy to Breach the Duty of Loyalty, Intentional Interference with Prospective Economic Relations, Aiding and Abetting Intentional Interference with Prospective Economic Relations, Conspiracy to Intentionally Interfere with Prospective Economic Relations, Negligent Interference with Prospective Economic Relations, Misappropriation of Trade Secrets, Violation of Penal Code Section 502, Conversion, Conspiracy to Commit Conversion, Breach of Contract, and Violation of Business and Professions Code Section 17200.  Not all Defendants were named in all causes of action.

 

2.6.                            Since the filing of the lawsuit, a subsidiary of AerCap, on or about May 15, 2014, purchased ILFC from AIG.  For purposes of this Agreement, AerCap and each of its direct and indirect subsidiaries and affiliates is therefore a parent and/or affiliate of ILFC as those terms are used in paragraph 1.2 above and is therefore providing and receiving the releases and covenants not to sue in paragraphs 5.1, 5.2, 5.3 and 5.4  below.  Notwithstanding AerCap’s purchase of ILFC from AIG, AIG represents that AIG, pursuant to the terms of a Joint Litigation Agreement between AIG and ILFC amended and restated as of May 14, 2014, retained control of the Litigation and any decision or consent to a settlement, compromise or discharge of the Litigation and is entitled to all amounts received by AIG and/or ILFC in a settlement or compromise of the Litigation.

 

3.                                      Purpose of this Agreement

 

3.1.                            The Parties now desire to fully and finally settle the Litigation and all related claims on the terms and conditions set forth in this Agreement. It is the intent of the Parties that there be a complete and global resolution of all potential and actual claims related to the facts and allegations in the Litigation, including claims not yet asserted against other parties.  By way of example, this would include but not be limited to claims against former ILFC employees, related to the facts and allegations in the Litigation, who left ILFC to join ALC and other investors, banks, real estate agents, and consultants who worked with ALC and its founders, but who have not yet been named as a defendant in the Litigation.  This would also include any claims against any current or former AIG or ILFC employees, related to the facts and allegations in the Litigation, who did not leave ILFC to join ALC.

 

3

 

3.2.                            The Parties acknowledge and agree that the execution of this Agreement by the Parties is for settlement purposes only and is intended solely as a compromise of claims, cross-claims, and defenses that the Parties recognize they would have contested had the Litigation not settled, and that no Party admits any wrongdoing or liability with respect to any matter alleged in the Litigation.  This settlement of claims in the Litigation among the Parties is voluntary and does not and shall not constitute an admission or other basis for liability by any of the Parties or an admission of the existence of any facts upon which liability could be based.

 

4.                                      Agreements and Undertakings

 

In light of the foregoing and in consideration for the releases, agreements, representations, warranties and undertakings set forth in this Agreement, the Parties agree as follows:

 

4.1.                            Within three (3) business days of the Effective Date, the Parties shall file in Los Angeles Superior Court a joint stipulation of dismissal with prejudice of all claims and cross-claims set forth in the Litigation, in the form attached hereto as Exhibit A.  In addition, within three (3) business days of the Effective Date, AIG and ILFC shall file in the California Court of Appeal a notice of dismissal of the pending petition for writ of mandamus, Case No. B258943, related to this Litigation, in the form attached hereto as Exhibit B.

 

4.2.                            In full and final settlement of all of AIG and ILFC’s claims in and related to the Litigation, ALC covenants and agrees to pay AIG the sum of $72 million, to be paid in two equal installments as follows:

 

(a)                                 By no later than June 30, 2015, ALC will cause to be delivered to AIG the sum of $36 million.  Such payment shall have been made by ALC by wire transfer to the account set forth in Exhibit C (the “Account”).

 

(b)                                 By no later than September 30, 2015, ALC will cause to be delivered to AIG the additional sum of $36 million by wire transfer to the Account.

 

4.3.                            Subject to the provisions of section 5.5 (ii) below, the monetary consideration set forth in paragraph 4.2 hereby constitutes the sole and entire payment to be made in settlement of the released claims, and AIG, ILFC, and AerCap, on the one hand, and Defendants, on the other hand, will not attempt to collect from each other their attorney’s fees and expenses in connection with any matters related to this dispute and/or this settlement.

 

4.4.                            No Party shall make any disclosure, or comment publicly or privately with third parties, about this Agreement or the settlement, except (a) as provided in paragraph 4.5 below, (b) on a need-to-know basis to the Parties’ respective accountants, financial advisors, attorneys, auditors, insurers and their claims representatives and reinsurers, officers, directors, partners, general partners, limited partners, and employees provided such persons are subject to confidentiality obligations; (c) as necessary to comply or enforce the terms of the Agreement; (d) as required by a discovery request, subpoena, question during testimonial proceedings, or similar procedure; (e) public securities filings summarizing the terms of this Agreement (without additional comment), including a copy of this Settlement Agreement; (f) as any Party deems necessary under any law, rule, accounting rule, tax rule or regulation, including, but not limited to, federal or state securities laws; (g) in response to a request made by a Governmental

 

4

 

Authority having jurisdiction over any Party; (h) to any agency or auditor that supervises, regulates, or audits any Party; (i) as otherwise required by law; (j) to the extent necessary or advisable for the purpose of financial reporting, including SEC and regulatory filings; or (k) as mutually agreed upon in a writing signed by all of the Parties.

 

4.5.                            Any public comments from the Parties regarding the resolution of this matter will be limited to a statement that the matter has been resolved and the Litigation has concluded.

 

4.6.                            The Parties agree that they will make no direct or indirect publication of any statements intended to be derogatory of the other Party’s claims and defenses asserted in the Litigation.

 

5.                                      Releases

 

5.1.                            In consideration for the payment set forth above, Plaintiffs hereby release and forever discharge all persons, including but not limited to ALC, the Individual Defendants, and the Leonard Green Defendants (collectively, the “Defendant Releasees”), of and from any and all claims, losses, debts, charges, damages, demands, obligations, indemnities, causes of action, lawsuits, liabilities, breaches of duty, misfeasance, malfeasance, promises, controversies, contracts, judgments, awards, penalties, costs, and expenses, of whatever nature, type, kind, description or character, whether known or unknown, suspected and unsuspected, including malicious prosecution and abuse of process and including but not limited to any claims that Plaintiffs could assert at common law or by any statute, rule, regulation, ordinance or law, whether federal, state or local, or on any other grounds whatsoever, which Plaintiffs do, did, or might have, own, or hold, from the beginning of time through the Effective Date, that arise out of or relate to the allegations in the Complaint and Cross-Complaint in the Litigation, including any amendments, to any fact revealed in the course of discovery in the Litigation that relates to the Litigation, or to any act or omission in the conduct of the Litigation or this settlement.

 

5.2.                            In consideration for the covenants set forth above, Plaintiffs hereby covenant not to sue any Defendant Releasee, or otherwise assert against any Defendant Releasee any claims, damages, demands, or causes of action, lawsuits, judgments, awards, penalties, costs, and expenses, of whatever nature, whether known or unknown, from the beginning of time through the Effective Date, that arise out of or relate to the allegations in the Complaint and Cross-Complaint in the Litigation, including any amendments, to any fact revealed in the course of discovery in the Litigation that relates to the Litigation, or to any act or omission in the conduct of the Litigation or this settlement.

 

5.3.                            In consideration for the releases and covenants set forth above, Defendants hereby release and forever discharge all persons, including but not limited to Plaintiffs (collectively, the “AIG Releasees”), of and from any and all claims, losses, debts, charges, damages, demands, obligations, indemnities, causes of action, lawsuits, liabilities, breaches of duty, misfeasance, malfeasance, promises, controversies, contracts, judgments, awards, penalties, costs, and expenses, of whatever nature, type, kind, description or character, whether known or unknown, suspected and unsuspected, including malicious prosecution and abuse of process and including but not limited to any claims that Defendants could assert at common law or by any statute, rule, regulation, ordinance or law, whether federal, state or local, or on any other grounds whatsoever,

 

5

 

which Defendants do, did, or might have, own, or hold, from the beginning of time through the Effective Date, that arise out of or relate to the allegations in the Complaint and Cross-Complaint in the Litigation, including any amendments, to any fact revealed in the course of discovery in the Litigation that relates to the Litigation, or to any act or omission in the conduct of the Litigation or this settlement.

 

5.4.                            In consideration for the covenants set forth above, Defendants hereby covenant not to sue any AIG Releasee, or otherwise assert against any AIG Releasee any claims, damages, demands, or causes of action, lawsuits, judgments, awards, penalties, costs, and expenses, of whatever nature, whether known or unknown, from the beginning of time through the Effective Date, that arise out of or relate to the allegations in the Complaint and Cross-Complaint in the Litigation, including any amendments, to any fact revealed in the course of discovery in the Litigation that relates to the Litigation, or to any act or omission in the conduct of the Litigation or this settlement.

 

5.5.                            Notwithstanding any other provision of this Agreement, nothing herein shall restrict in any way Defendants’ right to pursue any insurance claims they may have relating to this settlement or to the Litigation, except that (i) Defendants may not pursue any insurance coverage claim against any insurer with which ALC has an insurance policy that is currently an AIG-affiliated insurer relating to this settlement or the Litigation, and (ii) AIG and ALC represent to each other that, based on their respective reasonable due diligence, each is unaware of any reinsurance contract issued by any AIG-affiliated entity that would require AIG to reimburse any of ALC’s insurers for any insurance claim paid to any Defendant relating to this settlement or the Litigation.

 

5.6.                            WAIVER OF CIVIL CODE SECTION 1542:  The Parties specifically understand, acknowledge and agree that this is a full and final release, applying to any and all of the claims released in paragraphs 5.1 and 5.3 above.  The Parties, having been fully advised by counsel, hereby expressly waive any right or benefit of the provisions of Section 1542 of the California Civil Code, which provides as follows, and under all federal, state and common-law statutes or principles of similar effect:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

5.7.                            Each of the Parties acknowledges the inclusion of unknown claims in the releases was separately bargained for and was an essential element of the settlement.

 

5.8.                            Nothing in the Settlement Agreement will release or serve as a bar to (i) any claims based on any actions by the Parties that occur after the Effective Date or (ii) any claims alleging breach of the Settlement Agreement.

 

6

 

6.                                      Warranties of Authority and Nonassignment

 

6.1.                            Each of the Parties to this Agreement warrants that said Party has full authority to enter into this Agreement, to make the releases and covenants set forth in paragraphs 5.1 to 5.6, and to enter into the obligations set forth in this Agreement. The Parties hereby warrant that they have not assigned or transferred any claim to any other party or person, and that no other consents, approvals, authorizations, releases or settlements are necessary from any other person or entity to release and discharge completely the other Parties from the claims specified above.

 

7.                                      Further Representations and Warranties

 

7.1.                            In entering into this Agreement, the Parties represent and warrant that they have fully discussed and reviewed all aspects of this Agreement with their counsel; that they have carefully reviewed and understand all of the provisions of this Agreement; and that they are freely, knowingly, and voluntarily entering into this Agreement without any form of duress.

 

7.2.                            In entering into this Agreement, all Parties represent and warrant that they have made such investigation of the facts pertaining to this settlement and this Agreement as they deem necessary and that they are not relying on and have not relied upon any representation or statement made by any other Party or by any person affiliated with or representing any of the other Parties with respect to any of the facts involved in the disputes compromised or with regard to the claims or asserted claims of either.

 

8.                                      Alternative Dispute Resolution

 

8.1.                            In the event any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, should arise between the Parties, the Parties shall make a good faith effort to resolve the dispute, claim or controversy informally through direct communication between the Parties before resorting to the Alternative Dispute Resolution procedure specified in paragraphs 8.2 to 8.5.

 

8.2.                            The Parties agree that any and all disputes, claims or controversies arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, that cannot, within 7 calendar days of being raised, be resolved informally through direct communication between the Parties, shall be submitted to Robert Meyer at Loeb & Loeb, for a confidential mediation in Los Angeles, California, and if the matter is not resolved through a good faith and expedited mediation effort, then it shall be submitted to an arbitrator for final and binding arbitration pursuant to the arbitration provisions set forth in paragraphs 8.3-8.4 below.  If Mr. Meyer is not available for a mediation, the Parties will jointly petition Mr. Meyer to select a neutral mediator.  Any Party may commence mediation by providing to Mr. Meyer and the other Party a written request for mediation, setting forth the subject of the dispute and the relief requested. All offers, promises, conduct and statements, whether oral or written, made in the course of the mediation by any of the Parties, their agents, employees, experts and attorneys, and by the mediator or his employees, are confidential, privileged and inadmissible for any purpose to the full extent provided by California law.

 

7

 

8.3.                            Any Party may initiate arbitration with respect to the matters submitted to mediation by filing a written demand for arbitration at any time following fourteen (14) days after the initial mediation session or forty-five (45) days after the date of filing the written request for mediation, whichever occurs first.  The mediation may continue after the commencement of arbitration if the Parties so desire.  The provisions of this section 8 may be enforced by any court of competent jurisdiction, and if a Party refuses to mediate or arbitrate, the Party seeking enforcement shall be entitled to an award of all costs, fees and expenses, including attorneys’ fees, to be paid by the party against whom enforcement is ordered.

 

8.4.                            Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, that cannot be resolved through the meet and confer and mediation methods specified in paragraphs 8.1 to 8.3, including the determination of the scope or applicability of this Agreement to arbitrate, shall be determined by final and binding arbitration in Los Angeles, California, before an agreed upon arbitrator.  If the Parties cannot agree upon an arbitrator, the JAMS rules for arbitrator selection shall apply.  The arbitration shall be governed by the JAMS Streamlined Arbitration Rules & Procedures.  The arbitration proceedings between the Parties shall be kept confidential.  Notwithstanding the foregoing, the fact of the arbitration between the Parties and the arbitrator’s decision (i.e., the final award) shall not be confidential.  The arbitrator shall be empowered to award, without limitation, any interim or permanent injunctive or equitable relief that would be available in a court of competent jurisdiction. The arbitrator may, in the award, allocate all or part of the costs of the arbitration, including the fees of the arbitrator and the reasonable attorneys’ fees of the prevailing party.  Judgment on the award may be entered under seal in any court having jurisdiction. This clause shall not preclude the Parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction.  The provisions of this clause may be enforced by any court of competent jurisdiction, and the Party seeking enforcement shall be entitled to an award of all costs, fees and expenses, including attorneys’ fees, to be paid by the Party against whom enforcement is ordered.  Notwithstanding Section 12 below, this Section 8 shall be governed by the Federal Arbitration Act, 9 U.S.C. § 1 et seq.

 

8.5.                            Notwithstanding the foregoing, with respect only to any breaches of the confidentiality terms set forth in paragraphs 4.4-4.6 above, the parties agree that Robert Meyer at Loeb & Loeb acting as an arbitrator shall make a final and binding determination of any disputes.  Mr. Meyer shall have the authority to order the Parties to provide any discovery or information he deems appropriate to determine the fact and scope of any alleged breach of those terms.  Mr. Meyer shall also have the authority to order any remedy he deems appropriate to address any such breach, including issuing a public statement to correct any misimpression of the facts and circumstances relating to the settlement created by such breach, or the disclosure of information necessary to reasonably respond to the breach.

 

9.                                      Performance of Agreement

 

9.1.                            The Parties each agree to perform all acts and execute, deliver and file all documents necessary to carry out the provisions, purposes and intent of this Agreement.

 

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10.                               Successors In Interest

 

10.1.                     This Agreement shall be binding upon and shall inure to the benefit of each of the Parties hereto and each of their respective successors in interest and assigns.

 

11.                               Mutually Drafted Settlement Agreement

 

11.1.                     Each of the Parties hereto has been fully and competently represented by counsel of its own choosing in the negotiation and preparation of this Agreement.  Accordingly, the Parties agree that the rule of construction of contracts resolving any ambiguities against the drafting party shall be inapplicable to this Agreement.  Each of the Parties hereto further acknowledges that it has read this entire Agreement and fully understands its terms, conditions and effects.

 

12.                               California Law

 

12.1.                     All questions with respect to the construction of this Agreement, and the rights and liabilities of the Parties hereto, shall be governed by and construed in accordance with the laws of the State of California without reference to conflicts of law principles or rules.

 

13.                               Entire Agreement

 

13.1.                     This Agreement, including Exhibits, contains the entire agreement of the Parties relating to the subject matters addressed herein and may not be modified or amended except by a further document in writing signed by the Parties. In executing this Agreement and making the settlement contained herein, none of the Parties is relying upon any promise, representation or statement not contained within this Agreement.

 

14.                               Headings

 

14.1.                     Paragraph headings are for convenience only and are not part of the Agreement.

 

15.                               Counterparts

 

15.1.                     The Parties may execute this Agreement in counterparts, each of which shall be deemed an original or the equivalent thereof. Signatures by facsimile or in electronic form (including in PDF form) are binding, and the Parties will exchange duplicate original signatures promptly after execution of this Agreement.

 

16.                               Notice

 

16.1.                     All notices under this Agreement shall be sent by email and U.S. mail to the following:

 

9

 

To AIG:

Michael Leahy

Deputy General Counsel

AIG

80 Pine Street

New York, New York 10005

 

Copies to:

Michael Carlinsky

Quinn Emanuel Urquhart & Sullivan

51 Madison Avenue

New York, New York 10010

michaelcarlinsky@quinnemanuel.com

 

To ILFC:

Scot Kennedy

Vice President

International Lease Finance Corporation

10250 Constellation Boulevard

31st Floor

Los Angeles, CA 90067

(310) 788-1999

skennedy@aercap.com

 

Copies to:

Keith Hallam

Cravath, Swaine & Moore LLP

825 Eighth Avenue

New York, New York 10019-7475

(212) 474-1000

khallam@cravath.com

 

To AerCap:

AerCap House

Stationsplein 965

1117 CE Schipol

The Netherlands

Attention:   Scot Kennedy, Vice President Legal

+31 20 655 9655

skennedy@aercap.com

 

Copies to:

Keith Hallam

Cravath, Swaine & Moore LLP

 

10

 

825 Eighth Avenue

New York, New York 10019-7475

(212) 474-1000

khallam@cravath.com

 

To ALC:
  Carol Forsyte
 General Counsel, Air Lease Corporation
 2000 Avenue of the Stars, Suite 1000N
 Los Angeles, CA 90067
 (310) 553-0555
 cforsyte@airleasecorp.com

 

Copies to:

Carolyn Hoecker Luedtke
 Munger, Tolles & Olson LLP
 560 Mission Street, 27th Floor
 San Francisco, CA  94105
 (415) 512-4027
 Carolyn.Luedtke@mto.com

 

To the Leonard Green Defendants:
  Adrian Maizey

Chief Operating Officer

Leonard Green & Partners, L.P.

11111 Santa Monica Blvd., Suite 2000

Los Angeles, CA 90025

(310) 954-0414

amaizey@leonardgreen.com

 

Copies to:
 Michael Bruce Abelson

Susan P. Welch

Abelson Herron Halpern LLP

333 S. Grand Ave., #1550

Los Angeles, CA  90071

(213) 402-1900

mabelson@abelsonherron.com

swelch@abelsonherron.com

 

To Steven Udvar-Házy:
 Air Lease Corporation

2000 Avenue of the Stars, Suite 1000N

Los Angeles, CA  90067

310-553-0555

 

11

 

Copies to:

Bert Deixler

Kendall Brill & Klieger LLP

10100 Santa Monica Blvd., Suite 1725

Los Angeles, California 90067

(310) 272-7910

bdeixler@kbkfirm.com

 

To John Plueger:
  Air Lease Corporation

2000 Avenue of the Stars, Suite 1000N

Los Angeles, CA  90067

310-553-0555

 

Copies to:
 Alexander Cote

Scheper Kim & Harris LLP

One Bunker Hill

601 West Fifth Street, 12th Floor

Los Angeles, CA  90071-2025

(213) 613-4660

acote@scheperkim.com

 

To Grant Levy:
  Air Lease Corporation

2000 Avenue of the Stars, Suite 1000N

Los Angeles, CA  90067

310-553-0555

 

Copies To:

Alexander Cote

Scheper Kim & Harris LLP

One Bunker Hill

601 West Fifth Street, 12th Floor

Los Angeles, CA  90071-2025

(213) 613-4660

acote@scheperkim.com

 

To Marc Baer:
  Air Lease Corporation

2000 Avenue of the Stars, Suite 1000N

Los Angeles, CA  90067

310-553-0555

 

Copies To:
 Alexander Cote

Scheper Kim & Harris LLP

 

12

 

One Bunker Hill

601 West Fifth Street, 12th Floor

Los Angeles, CA  90071-2025

(213) 613-4660

acote@scheperkim.com

 

To Michael Bai:
  Air Lease Corporation

2000 Avenue of the Stars, Suite 1000N

Los Angeles, CA  90067

310-553-0555

 

Copies to:
 Daniel J. Woods

Musick, Peeler & Garrett LLP

One Wilshire Boulevard, Suite 2000

Los Angeles, CA  90017

(213) 629-7622

d.woods@mpglaw.com

 

To Chi Yan:
  Air Lease Corporation

2000 Avenue of the Stars, Suite 1000N

Los Angeles, CA  90067

310-553-0555

 

Copies To:

Daniel J. Woods

Musick, Peeler & Garrett LLP

One Wilshire Boulevard, Suite 2000

Los Angeles, CA  90017

(213) 629-7622

d.woods@mpglaw.com

 

To Housni Chraibi:
  Air Lease Corporation

2000 Avenue of the Stars, Suite 1000N

Los Angeles, CA  90067

310-553-0555

 

Copies To:

Daniel J. Woods

Musick, Peeler & Garrett LLP

One Wilshire Boulevard, Suite 2000

Los Angeles, CA  90017

(213) 629-7622

 

13

 

d.woods@mpglaw.com

 

To Robert McNitt:
  Air Lease Corporation

2000 Avenue of the Stars, Suite 1000N

Los Angeles, CA  90067

310-553-0555

 

Copies To:

Daniel J. Woods

Musick, Peeler & Garrett LLP

One Wilshire Boulevard, Suite 2000

Los Angeles, CA  90017

(213) 629-7622

d.woods@mpglaw.com

 

To Jenny Van Le:

Air Lease Corporation

2000 Avenue of the Stars, Suite 1000N

Los Angeles, CA  90067

310-553-0555

 

Copies To:

Daniel J. Woods

Musick, Peeler & Garrett LLP

One Wilshire Boulevard, Suite 2000

Los Angeles, CA  90017

(213) 629-7622

d.woods@mpglaw.com

 

To William MacCary:
  Air Lease Corporation

2000 Avenue of the Stars, Suite 1000N

Los Angeles, CA  90067

310-553-0555

 

Copies To:

Daniel J. Woods

Musick, Peeler & Garrett LLP

One Wilshire Boulevard, Suite 2000

Los Angeles, CA  90017

(213) 629-7622

d.woods@mpglaw.com

 

14

 

16.2.                     Changes in the names or addresses of the representatives set forth above may be made by a written notification to the other party at its address set forth above (or such other addresses subsequently designated by any Party).

 

17.                               Gender and Number

 

17.1.                     Wherever the context so requires, the singular shall include the plural; the plural shall include the singular; the masculine gender shall include the feminine and neuter genders; the feminine gender shall include the masculine and neuter genders; and the neuter gender shall include the masculine and feminine genders.

 

15

 

IN WITNESS WHEREOF, the Parties hereto have agreed to and executed this Agreement.

 

 

	
April   22, 2015
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael W. Leahy
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
Michael   W. Leahy, VP & Deputy GC
    
	
 
    	
 
    	
American   International Group, Inc.
    
	
 
    	
 
    	
 
    
	
April   23, 2015
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   W.M. Den Dikken
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
W.M.   Den Dikken CEO
    
	
 
    	
 
    	
International   Lease Finance Corporation
    
	
 
    	
 
    	
 
    
	
April   23, 2015
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Keith Helming 
    	
/s/   Marnix Den Heijer
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
Keith   Helming
   Authorised Signatory
    	
Marnix   Den Heijer
   Authorised Signatory
    
	
 
    	
 
    	
AerCap   Holdings N.V.
    	
 
    
	
April   22, 2015
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Carol Forsyte
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
Carol   Forsyte Executive Vice President and General Counsel
    
	
 
    	
 
    	
Air   Lease Corporation
    
	
April   22, 2015
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Cody Franklin
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
Cody   Franklin
    
	
 
    	
 
    	
Cody   Franklin, Chief Financial Officer of GEI Capital V, LLC, the General Partner   of Green Equity Investors V, L.P. and Green Equity Investors Side V, L.P.
    
	
April   22, 2015
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Cody Franklin
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
Cody   Franklin
    
	
 
    	
 
    	
Cody   Franklin, Chief Financial Officer, Leonard Green & Partners, L.P.
    

 

16

 

	
April   22, 2015
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Steven F. Udvar-Házy
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
Steven   F. Udvar-Házy
    
	
 
    	
 
    	
Steven   Udvar-Házy
    
	
 
    	
 
    	
 
    
	
April   22, 2015
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John Plueger
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
John   Plueger
    
	
 
    	
 
    	
John   Plueger
    
	
 
    	
 
    	
 
    
	
April   22, 2015
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Grant Levy
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
Grant   Levy
    
	
 
    	
 
    	
Grant   Levy
    
	
 
    	
 
    	
 
    
	
April   22, 2015
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Marc Baer
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
Marc   Baer
    
	
 
    	
 
    	
Marc   Baer
    
	
 
    	
 
    	
 
    
	
April   22, 2015
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Bai
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
Michael   Bai
    
	
 
    	
 
    	
Michael   Bai
    
	
 
    	
 
    	
 
    
	
April   22, 2015
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Chi Yan
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
Chi   Yan
    
	
 
    	
 
    	
Chi   Yan
    
	
 
    	
 
    	
 
    
	
April   22, 2015
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Housni Chraibi
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
Housni   Chraibi
    
	
 
    	
 
    	
Housni   Chraibi
    

 

17

 

	
April   22, 2015
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert McNitt
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
Robert   McNitt
    
	
 
    	
 
    	
Robert   McNitt
    
	
 
    	
 
    	
 
    
	
April   22, 2015
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jenny Van Le
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
Jenny   Van Le
    
	
 
    	
 
    	
Jenny   Van Le
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
April   22, 2015
    	
By:
    	
/s/   William MacCary
    
	
 
    	
 
    	
 
    
	
 
    	
Print   Name:
    	
William   MacCary
    
	
 
    	
 
    	
William   MacCary
    

 

18

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