Document:

ex_10-1.htm

    
      

    

    ASSET
      PURCHASE AGREEMENT

    

    

    This
      ASSET PURCHASE AGREEMENT dated as of December 28, 2007 (the
      "Agreement") is entered into by and between 247MGI, Inc.
      (“247MGI”) a publicly traded corporation organized under the
      laws of, and domiciled in, the State of Florida, Sovereign Research, LLC
      (“Sovereign”), a Florida limited liability company and a wholly-owned
      subsidiary of Sovereign ("Buyer"), and SOYO Group,
      Inc., a publicly traded corporation organized under the laws of, and
      domiciled in, the State of Nevada (“Seller”).

    

    

    PREAMBLE

    

    WHEREAS,
      Seller owns certain assets comprising its “VOIP Division” that are used to
      transmit telephone calls over the internet (the “Assets”);
      and

    

    WHEREAS,
      the Assets are more particularly described on Schedule 1.1; and

    

    WHEREAS,
      Seller desires to convey, sell and assign to Buyer all of Seller’s right, title
      and interest in and to the Assets, upon the terms and conditions contained
      in
      this Agreement; and

    

    WHEREAS,
      Buyer desires to purchase the Assets upon the terms and conditions contained
      in
      this Agreement.

    

    NOW
      THEREFORE, in consideration of the mutual promises and covenants set
      forth herein, and for other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties agree as
      follows:

    

    1.  Sale
      and Purchase of Assets.

    

    1.1  Sale
      and Purchase of Assets.  Subject to the terms and conditions of
      this Agreement, at the closing described in Section 6 (the
      "Closing"), Seller shall sell, assign and convey the Assets to
      Buyer, and Buyer shall purchase the Assets from Seller.

    

    1.2  Liabilities
      Excluded.  In connection with Buyer’s purchase of the Assets,
      Buyer shall not assume or become responsible for any indebtedness, liabilities
      or obligations of Seller (the “Liabilities”).

    

    2.  Purchase
      Price; Payment.

    

    2.1  Purchase
      Price.  The purchase price for the Assets shall be the sum of
      $1,000,000 (the “Purchase Price”), which the parties agree and
      acknowledge is equal to Seller’s audited value of the Assets.  The
      Purchase Price shall be paid by delivery to Seller at the Closing, of one or
      more certificates evidencing an aggregate of,40,000,000  shares of the
      authorized but unissued common stock of 247MGI (the “247MGI
      Shares”).

    

    2.2  The
      247MGI Shares.  The 247MGI Shares have not been registered under
      the Securities Act of 1933, as amended (the “Act”), and such
      securities may not be sold, assigned, pledged, hypothecated, transferred or
      otherwise disposed of absent registration under the Act or the availability
      of
      an applicable exemption therefrom.  Resale of the 247MGI Shares shall
      also be limited under Section 8.3 of this Agreement.  Each certificate
      evidencing any of the 247MGI Shares shall bear the following or substantially
      legend:

    

    These
      securities have not been registered under the Securities Act of 1933, as
      amended, or any state securities laws and may not be sold or otherwise
      transferred­ or disposed of except pursuant to an effective registration
      statement under any applicable federal and state securi­ties laws, or an
      opinion of counsel satisfac­tory to the Company that an exemp­tion from
      registration is available.

    

    2.3  Delivery
      of the 247MGI Shares.  The 247MGI Shares shall be issued at the
      Closing and delivered to and retained by 247MGI for delivery to the Seller
      as
      follows: (i) one-half of the 247MGI Shares shall be delivered to the Seller,
      by
      overnight courier, upon Seller’s delivery to 247MGI of a shipping manifest
      evidencing that the Assets have been entrusted to a reputable trucking company
      and are enroute to 247MGI’s facilities, and (ii) the balance of the 247MGI
      Shares shall be delivered to the Seller, by overnight courier, within 48 hours
      of Seller’s receipt of the Assets.

    

    3.  Representations
      and Warranties of Seller.  Except as otherwise set forth in a
      disclosure schedule delivered by Seller at the time this Agreement is executed
      and delivered (the “Seller Disclosure Schedule”), Seller,
      hereby represents and warrants to 247MGI and Buyer, as of the date hereof and
      as
      of the Closing Date, as follows.

    

    3.1  Authority
      and Enforcement.  Seller has all requisite power and authority to
      execute and deliver this Agreement, and to consummate the transactions
      contemplated hereby.  Seller has taken all action necessary for the
      execution and delivery of this Agreement and the consummation of the
      transactions contemplated hereby, and this Agreement constitutes the valid
      and
      binding obligation of Seller, enforceable against Seller in accordance with
      its
      terms, except as may be affected by bankruptcy, insolvency, moratoria or other
      similar laws affecting the enforcement of creditors’ rights generally and
      subject to the qualification that the availability of equitable remedies is
      subject to the discretion of the court before which any proceeding therefore
      may
      be brought.

    

    3.2  No
      Conflicts or Defaults.  The execution and delivery of this
      Agreement by Seller and the consummation of the transactions contemplated hereby
      do not and shall not, with or without the giving of notice or the passage of
      time, (i) violate, breach or conflict with the articles of organization, bylaws
      or corresponding organizational documents of Seller, (ii) result in a material
      breach of, or a material default or loss of rights under, any covenant,
      agreement, mortgage, indenture, lease, instrument, permit or license to which
      Seller is a party or by which Seller is bound, or any judgment, order or decree,
      or any law, rule or regulation to which Seller or any of its assets is subject,
      (iii) result in the creation of, or give any party the right to create, any
      lien, charge, encumbrance, security interest or any other right or adverse
      interest (“Liens”) upon any of the Assets, (iv) terminate or
      give any party the right to terminate, amend, abandon or refuse to perform,
      any
      material agreement, arrangement or commitment relating to the Assets, or (v)
      have a material adverse effect on the acquisition or ownership of the Assets
      by
      Buyer or consummation of the transactions contemplated hereby (a “Seller
      Material Adverse Effect”).

    

    3.3  Consents
      of Third Parties.  The execution, delivery and performance of this
      Agreement and the consummation of the transactions contemplated hereby by Seller
      does not require the consent of any person, or such consent has or will be
      obtained, in writing, prior to the Closing.

    

    3.4  No
      Litigation. There are no legal, equitable, administrative,
      arbi­tra­­tion, governmental, regulatory or other proceedings
      pending against Seller, or, to the best knowledge of Seller, threatened against
      it, an adverse determination to which would be likely to result in a Seller
      Material Adverse Effect.

    

    3.5  No
      Options or Other Agreements.  There are no options or
      agree­ments of any charac­ter relating to the Assets to which Seller is
      a party, or by which Seller is bound that, if exercised or consummated, would
      be
      likely to result in a Seller Material Adverse Effect.

    

    3.6  Title
      to Assets.  Seller is the owner of the Assets, free and clear of
      all Liens.  Upon consummation of the transactions contemplated hereby,
      Buyer will acquire good and marketable title to the Assets.

    

    3.7  Taxes.  Seller
      has filed all tax returns that it was required to file, and has paid all taxes
      indicated on such returns for such periods which are due and payable as of
      the
      date hereof.  All such tax returns were in all respects true, complete
      and correct and filed on a timely basis.  None of the income tax
      returns filed by, on behalf of or with respect to Seller is currently the
      subject of an audit, and no notice of a planned audit has been received by
      or on
      behalf of Seller

    

    3.8  Compliance
      with Laws.  Seller is and, to its knowledge, others who perform
      services on its behalf, have been and are in compliance with all applicable
      federal, state, local and foreign laws, rules, regulations, standards, orders
      and decrees, except where noncompliance would not, singly or in the aggregate,
      have a Seller Material Adverse Effect; and Seller has not received any notice
      citing action or inaction by Seller, or others who perform services on its
      behalf, that would constitute non-compliance with any applicable federal, state,
      local or foreign laws, rules, regulations or standards and that would likely
      have a Seller Material Adverse Effect.

    

    3.9  Intellectual
      Property.  To the extent that the Assets include any trademarks,
      copyrights, trade names, service marks, trade secrets, license agreements,
      proprietary processes, business methods or similar tangible or intangible
      property (“Intellectual Property”), such Intellectual Property
      is owned by Seller, free and clear of all Liens.  To the best of
      Seller’s knowledge, such Intellectual Property does not infringe upon or
      otherwise violate the rights of any third person, and Seller has received no
      notice of any such infringement or violation.  To the extent that any
      such Intellectual Property is licensed by Seller to any third party, the license
      is in full force and effect, the licensee is not in breach or violation of
      the
      license agreement and Seller have no knowledge that any such Intellectual
      Property is being used in violation of Seller’ proprietary rights.

    

    3.10  Securities
      Laws.  Seller is an accredited investor within the meaning of Rule
      501 of Regulation D under the Act.  Seller is acquiring the 247MGI
      Shares for its own account, for investment purposes only, and without a view
      towards the distribution or resale thereof, except in compliance with applicable
      Federal and State securities law.

    

    3.11  Acknowledgment
      of Risks.  Seller recognizes and acknowledges that the
      transactions contemplated by this Agreement are speculative and involve a high
      degree of risk.  Such risks include, but are not limited to, the
      following:

    

    (1)  the
      business of 247MGI is recently commenced, untested and, subject to all of the
      risks inherent of a new business;

    

    (2)  247MGI
      has not generated any revenues from operations, or obtained any orders for
      its
      services, and there is no assurance that 247MGI will operate
      profitably;

    

    (3)  there
      is
      currently only a limited trading market for 247MGI’s securities and there is no
      assurance that an active trading market will develop or be
      maintained;

    

    (4)  unless
      an
      active market develops for 247MGI’s securities, Seller may have difficulty
      reselling the 247MGI Shares, at a profit or at all;

    

    (5)  247MGI
      will require additional financing in order to implement its business plans
      -
      there is no assurance that required financing will be available to 247MGI on
      acceptable terms;

    

    (6)  future
      financings will dilute the relative ownership of 247MGI by its existing
      shareholders, and depending on the price at which additional shares are issued,
      may dilute the book value per share of 247MGI’s common stock;

    

    (7)  247MGI
      will have to overcome the challenges of marketing, on-line commerce and
      introduction of a new product in order to succeed, and there is no assurance
      that it will be able to do so;

    

    (8)  247MGI
      will face competition from many entities, most of whom have greater financial
      and physical resources than does 247MGI;

    

    (9)  as
      its
      business develops, 247MGI may have difficulty attracting and retaining qualified
      personnel; and

    

    (10)  those
      additional risks identified from time to time in filings by 247MGI with the
      SEC,

    

    3.12  Disclosure.  The
      representations, warranties and acknowledgments of Seller set forth herein
      are
      true, complete and accurate in all material respects, do not omit to state
      any
      material fact, or omit any fact necessary to make such representations,
      warranties and acknowledgments, in light of the circumstances under which they
      are made, not misleading.

    

    4.  Representations
      and Warranties of 247MGI and Buyer.  Except as otherwise set forth
      in a disclosure schedule delivered by 247MGI and Buyer at the time this
      Agreement is executed and delivered (the “Buyer/247MGI Disclosure
      Schedule”), 247MGI and Buyer hereby make the following representations
      and warranties to Seller, as of the date hereof and as of the Closing
      Date.

    

    4.1  Organization
      and Good Standing.  247MGI and Buyer is each a business entity
      duly organized, validly existing and in good standing under the laws of its
      jurisdiction of formation, with full power and authority to own, lease and
      operate its business and properties and to carry on its business in the places
      and in the manner as presently conducted or proposed to be
      conducted.  247MGI and Buyer are each in good standing as a foreign
      corporation in each jurisdiction in which the properties owned, leased or
      operated, or the business conducted, by it requires such qualification, except
      where the failure to so qualify would not have a material adverse effect on
      the
      business of 247MGI or Buyer, as the case may be, or consummation of the
      transactions contemplated hereby (a “Buyer Material Adverse
      Effect”).

    

    4.2  Authority
      and Enforcement.  247MGI and Buyer have all requisite power and
      authority to execute and deliver this Agreement, and to consummate the
      transactions contemplated hereby.  247MGI and Buyer have each taken
      all action necessary for the execution and delivery of this Agreement and the
      consummation of the transactions contemplated hereby, and this Agreement
      constitutes the valid and binding obligation of 247MGI and Buyer, enforceable
      against each in accordance with its terms, except as may be affected by
      bankruptcy, insolvency, moratoria or other similar laws affecting the
      enforcement of creditors’ rights generally and subject to the qualification that
      the availability of equitable remedies is subject to the discretion of the
      court
      before which any proceeding therefore may be brought.

    

    4.3  No
      Conflicts or Defaults.  The execution and delivery of this
      Agreement by 247MGI and Buyer and the consummation of the transactions
      contemplated hereby do not and shall not (a) contravene the articles of
      organization, bylaws or corresponding organizational documents of 247MGI or
      Buyer or (b) with or without the giving of notice or the passage of time (i)
      violate, conflict with, or result in a material breach of, or a material default
      or loss of rights under, any covenant, agreement, mortgage, indenture, lease,
      instrument, permit or license to which 247MGI or Buyer is a party or by which
      247MGI or Buyer is bound, or any judgment, order or decree, or any law, rule
      or
      regulation to which 247MGI or Buyer is subject, (ii) result in the creation
      of,
      or give any party the right to create, any Lien upon any assets or properties
      of
      247MGI or Buyer, (iii) terminate or give any party the right to terminate,
      amend, abandon or refuse to perform, any material agreement, arrangement or
      commitment relating to which 247MGI or Buyer a party, or (iv) result in a Buyer
      Material Adverse Effect.

    

    4.4  Consents
      of Third Parties.  The execution, delivery and performance of this
      Agreement and the consummation of the transactions contemplated hereby by 247MGI
      or Buyer does not require the consent of any person, or such consent has been
      or
      will be obtained, in writing, prior to the Closing.

    

    4.5  247MGI’s
      Capitalization.  247MGI is authorized to issue (a) 500,000,000
      shares of common stock, $01 par value per share, of which 35,272,614 shares
      are
      issued and outstanding and (b) 5,000,000 shares of preferred stock, $.01 par
      value per share, none of which are issued or outstanding.  In
      addition, (i) 247MGI has reserved an aggregate of 62,000,000 shares for issuance
      on exercise of outstanding options (not including options issuable but not
      yet
      granted under 247MGI’s employment agreement with its president) and other
      securities convertible into common stock of 247MGI and (ii) 247MGI intends
      to
      convert indebtedness owed to its president into shares of 247MGI’s Series AA
      Preferred Stock.

    

    4.6  Securities.  The
      247MGI Shares have been duly authorized, and upon issuance pursuant to the
      provisions hereof, will be validly issued, fully paid and
      non-assessable.

    

    4.7  Reporting
      Company.  247MGI has a class of securities registered pursuant to
      Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”) and as of the date hereof, 247MGI has filed all reports required to be
      filed by it under the Exchange Act.  The reports filed by 247MGI under
      the Exchange Act may be viewed at the website of the Securities and Exchange
      Commission at www.sec.gov.

    

    4.8  Disclosure.  The
      representations, warranties and acknowledgments of Buyers set forth herein
      are
      true, complete and accurate in all material respects and do not omit any fact
      necessary to make such representations, warranties and acknowledgments not
      misleading.

    

    5.  Conditions
      to Closing.

    

    5.1  Conditions
      Precedent to 247MGI and Buyer’s Obligation to Close.  The
      obligation of 247MGI and Buyer to consummate the transactions contemplated
      by
      this Agreement is subject to satisfaction of the following conditions on or
      prior to the Closing Date:

    

    (1)  The
      representations and warranties of Seller set forth in Section 3 above shall
      be
      true and correct in all material respects at and as of the Closing
      Date.

    

    (2)  Seller
      shall have performed and complied with all of its covenants hereunder in all
      material respects through the Closing Date.

    

    (3)  No
      action, suit, or proceeding shall be pending or threatened before any court
      or
      quasi-judicial or administrative agency of any federal, state, local, or foreign
      jurisdiction or before any arbitrator wherein an unfavorable injunction,
      judgment, order, decree, ruling, or charge would likely (i) prevent or
      adversely affect 247MGI or Buyer’s consummation of any of the transactions
      contemplated by this Agreement or (ii) cause any of the transactions
      contemplated by this Agreement to be rescinded following consummation (and
      no
      such injunction, judgment, order, decree, ruling, or charge shall be in
      effect).

    

    (4)  No
      material adverse change shall have taken place with respect to the Assets,
      and
      no event shall have occurred that could reasonably be foreseen to result in
      a
      Seller Material Adverse Effect;

    

    (5)  Seller
      shall have delivered to Buyer a certificate to the effect that each of the
      conditions specified above in Sections 5.1(1) - (4) has been complied with
      in
      all material respects;

    

    (6)  All
      actions to be taken by Seller in connection with consummation of the
      transactions contemplated hereby and all certificates, opinions, instruments,
      and other documents required to effect the transactions contemplated hereby
      will
      be reasonably satisfactory in form and substance to the 247MGI and
      Buyer.

    

    5.2  Conditions
      Precedent to Seller’ Obligation to Close.  The obligation of
      Seller to consummate the transactions contemplated by this Agreement is subject
      to satisfaction of the following conditions on or prior to the Closing
      Date:

    

    (1)  The
      representations and warranties of 247MGI and Buyer set forth in Section 4 above
      shall be true and correct in all material respects at and as of the Closing
      Date.

    

    (2)  247MGI
      and Buyer shall each have performed and complied with their respective covenants
      hereunder in all material respects through the Closing Date.

    

    (3)  No
      action, suit, or proceeding shall be pending or threatened before any court
      or
      quasi-judicial or administrative agency of any federal, state, local, or foreign
      jurisdiction or before any arbitrator wherein an unfavorable injunction,
      judgment, order, decree, ruling, or charge would likely (i) prevent or
      adversely affect Seller’s consummation of any of the transactions contemplated
      by this Agreement or (ii) cause any of the transactions contemplated by this
      Agreement to be rescinded following consummation (and no such injunction,
      judgment, order, decree, ruling, or charge shall be in effect);

    

    (4)  No
      material adverse change shall have taken place with respect to 247MGI or Buyer,
      and no event shall have occurred, that could reasonably be foreseen to result
      in
      a Buyer Material Adverse Effect.

    

    (5)  247MGI
      and Buyer shall each have delivered to the Seller a certificate to the effect
      that each of the conditions specified above in Sections 5.2(1) - (4) has been
      complied with in all respects; and

    

    (6)  All
      actions to be taken by Buyers in connection with consummation of the
      transactions contemplated hereby and all certificates, opinions, instruments,
      and other documents required to effect the transactions contemplated hereby
      will
      be reasonably satisfactory in form and substance to the Seller.

    

    6.  Closing;
      Closing Date.  A closing of the transactions contemplated hereby
      (the “Closing”) will take place at 10:00 am on December 10,
      2007, at the offices of counsel to the Buyer, or at such other place, date
      and
      time that is agreed upon by Seller and Buyer.  The date on which the
      Closing is held is referred to in this Agreement as the "Closing
      Date."

    

    7.  Documents
      to be Delivered at the Closing.

    

    7.1  Documents
      to be Delivered by Seller.  At the Closing, Seller shall deliver,
      or cause to be delivered, to Buyer the documents required by Article 5 hereof,
      and the following:

    

    (1)  a
      duly
      executed bill of sale, dated the Closing Date, transferring to Buyer all of
      Seller's right, title and interest in and to the Assets together with possession
      of the Assets; and

    

    (2)  such
      other certificates, documents and instruments as Buyers may have reasonably
      requested in connection with the transaction contemplated hereby.

    

    7.2  Documents
      to be Delivered by Buyers.  At the Closing, 247MGI and Buyer shall
      deliver to Seller the following:

    

    (1)  certificates
      evidencing the 247MGI Shares, to be held by 247MGI and delivered in accordance
      with Section 2.3, above; and

    

    (2)  such
      other certificates, documents and instruments as Seller may have reasonably
      requested in connection with the transaction contemplated hereby.

    

    8.  Additional
      Covenants.

    

    8.1  Further
      Assurances.  If, at any time after the Closing, the parties shall
      consider or be advised that any further deeds, assignments or assurances in
      law
      or that any other things are necessary, desirable or proper to complete the
      transactions contemplated hereby in accordance with the terms of this agreement
      or to vest, perfect or confirm, of record or otherwise, the title to any
      property or rights of the parties hereto, the parties agree that their proper
      officers and directors shall execute and deliver all such proper deeds,
      assignments and assurances in law and do all things necessary, desirable or
      proper to vest, perfect or confirm title to such property or rights and
      otherwise to carry out the purpose of this Agreement, and that the proper
      officers and directors the parties are fully authorized to take any and all
      such
      action.

    

    8.2  No
      Public Disclosure.  Without the prior written consent of the
      other, which written consent will not be unreasonably withheld, no party to
      this
      Agreement will, and will each cause their respective representatives not to,
      make any release to the press or other public disclosure with respect to either
      the fact that discussions or negotiations have taken place concerning the
      transactions contemplated by this Agreement, the existence or contents of this
      Agreement or any prior correspondence relating to this transactions contemplated
      by this Agreement, except for such public disclosure as may be necessary for
      the
      party proposing to make the disclosure not to be in violation of or default
      under any applicable law, regulation or governmental order.

    

    8.3  Limitations
      on Resale of the 247MGI Shares.  Seller acknowledges that, absent
      registration under the Act, the 247MGI Shares may be resold only pursuant to
      an
      exemption from registration under the Act such as Rule 144.  As
      partial consideration to 247MGI under this Agreement, Seller hereby agrees
      not
      to sell any of the 247MGI Shares, under Rule 144 or otherwise, for a period
      of
      one year following the Closing, without the prior written consent of
      247MGI.  Commencing one year following the Closing, Seller hereby
      agrees that, unless otherwise agreed to in writing by 247MGI (a) Seller’s sales
      of the 247MGI Shares shall be limited to not more than 25,000 shares per day
      and
      not more than 250,000 shares per quarter and (b) subject to the foregoing,
      Seller will sell 247MGI Shares only during the 90 day period following the
      filing of 247MGI’s Form 10-QSB or 10-KSB, as applicable.

    

    8.4  Seller
      Financial Statements.  On or before March 31, 2008, the Seller
      shall deliver to 247MGI financial statements of Seller’s VOIP Division as of
      December 31, 2006 and 2005, and for each of the years then ended, and as of
      September 30, 2007 and 2006, and for each of the nine months then ended,
      prepared by management in accordance with generally accepted accounting
      principles in the United States, in form and substance reasonably satisfactory
      to Buyer (the “Seller Financial Statements”).  The Seller Financial
      Statements shall be true and correct in all material respects and there shall
      be
      no material liabilities or obligations, direct or indirect, actual or
      contingent, individually or in the aggregate, of Seller’s VOIP Division that are
      not set forth in the Seller Financial Statements.

    

    9.  Indemnification
      and Related Matters.

    

    9.1  Indemnification
      by the Seller.  Seller hereby indemnifies and hold 247MGI and
      Buyer harmless from and against any and all damages, losses, liabilities,
      obligations, costs or expenses incurred by 247MGI and/or Buyer arising out
      of
      the breach of any representation or warranty of Seller hereunder, and/or
      Seller’s failure to perform any covenant or obligation required to be performed
      by any of them hereunder.

    

    9.2  Indemnification
      by 247MGI and Buyer.  247MGI and Buyer each hereby severally
      indemnifies and holds Seller harmless from and against any and all damages,
      losses, liabilities, obligations, costs or expenses incurred by Seller and
      arising out of the breach of any representation or warranty of 247MGI or Buyer,
      as the case may be, hereunder, or 247MGI or Buyer's failure to perform any
      covenant or obligation required to be performed by either of them
      hereunder.

    

    9.3  Procedure
      for Indemnification.  Any party entitled to indemnification under
      this Article IX (an "Indemnified Party") will give written notice to the
      indemnifying party of any matters giving rise to a claim for indemnification;
      provided, that the failure of any party entitled to indemnification hereunder
      to
      give notice as provided herein shall not relieve the indemnifying party of
      its
      obligations under this Article IX except to the extent that the indemnifying
      party is actually prejudiced by such failure to give notice.  In case
      any action, proceeding or claim is brought against an Indemnified Party in
      respect of which indemnification is sought hereunder, the indemnifying party
      shall be entitled to participate in and, unless in the reasonable judgment
      of
      counsel to the Indemnified Party a conflict of interest between it and the
      indemnifying party may exist with respect of such action, proceeding or claim,
      to assume the defense thereof with counsel reasonably satisfactory to the
      Indemnified Party.  In the event that the indemnifying party advises
      an Indemnified Party that it will contest such a claim for indemnification
      hereunder, or fails, within 30 days of receipt of any indemnification notice
      to
      notify, in writing, such person of its election to defend, settle or compromise,
      at its sole cost and expense, any action, proceeding or claim (or discontinues
      its defense at any time after it commences such defense), then the Indemnified
      Party may, at its option, defend, settle or otherwise compromise or pay such
      action or claim.  In any event, unless and until the indemnifying
      party elects in writing to assume and does so assume the defense of any such
      claim, proceeding or action, the Indemnified Party's costs and expenses arising
      out of the defense, settlement or compromise of any such action, claim or
      proceeding shall be losses subject to indemnification hereunder.  The
      Indemnified Party shall cooperate fully with the indemnifying party in
      connection with any settlement negotiations or defense of any such action or
      claim by the indemnifying party and shall furnish to the indemnifying party
      all
      information reasonably available to the Indemnified Party, which relates to
      such
      action or claim.  The indemnifying party shall keep the Indemnified
      Party fully apprised at all times as to the status of the defense or any
      settlement negotiations with respect thereto.  If the indemnifying
      party elects to defend any such action or claim, then the Indemnified Party
      shall be entitled to participate in such defense with counsel of its choice
      at
      its sole cost and expense.  The indemnifying party shall not be liable
      for any settlement of any action, claim or proceeding effected without its
      prior
      written consent.  Notwithstanding anything in this Article IX to the
      contrary, the indemnifying party shall not, without the Indemnified Party’s
      prior written consent, settle or compromise any claim or consent to entry of
      any
      judgment in respect thereof which imposes any future obligation on the
      Indemnified Party or which does not include, as an unconditional term thereof,
      the giving by the claimant or the plaintiff to the Indemnified Party of a
      release from all liability in respect of such claim.  The indemnity
      agreements contained herein shall be in addition to (a) any cause of action
      or
      similar rights of the Indemnified Party against the indemnifying party or
      others, and (b) any liabilities the indemnifying party may be subject
      to.

    

    9.4  Time
      for Assertion.  No party to this Agreement shall have any
      liability (for indemnification or otherwise) with respect to any representation,
      warranty or covenant or obligation to be performed and complied hereunder,
      unless notice of any such liability is provided on or before 12 months from
      the
      date hereof.

    

    9.5  Basket.  Notwithstanding
      any conflicting or inconsistent provisions hereof, Seller shall not be liable
      in
      damages, indemnity or otherwise to Buyers in respect of the inaccuracy or breach
      of any representations, warranties, covenants or agreements herein, except
      to
      the extent that the damages to Buyers, singularly or in the aggregate, exceed
      the sum of $25,000.  Notwithstanding any conflicting or inconsistent
      provisions hereof, Buyers shall not be liable in damages, indemnity or otherwise
      to Seller in respect to the inaccuracy or breach of any representations,
      warranties, covenants or agreements herein except to the extent that damages
      to
      Seller exceed, individually or in the aggregate, the sum of
      $25,000.

    

    10.  Termination.

    

    10.1  Termination
      by Mutual Consent.  This Agreement may be terminated by mutual
      consent of the parties, in writing, signed by each of the parties
      hereto.

    

    10.2  Termination
      Due to Lapse of Time.  This Agreement may be terminated by either
      party if the Closing does not occur prior to December 10, 2007; provided,
      however, that a party wholly or partially responsible for the Closing not
      occurring prior to such date may not terminate this Agreement pursuant to this
      subsection.

    

    10.3  Termination
      by Buyers.  This Agreement may be terminated by 247MGI or Buyer by
      written notice to Seller, in the event of a material breach of any
      representation or warranty of Seller hereunder, or in the event Seller fails
      to
      perform any material covenant or obligation required to be performed by it
      hereunder and such failure remains uncured for ten days following such written
      notice.

    

    10.4  Termination
      by Seller.  This Agreement may be terminated by Seller, by written
      notice to 247MGI or Buyer, in the event of a material breach of any
      representation or warranty of 247MGI or Buyer hereunder, or in the event 247MGI
      or Buyer fails to perform any material covenant or obligation required to be
      performed by it hereunder and such failure remains uncured for ten days
      following such written notice.

    

    10.5  Effect
      of Termination.  Termination of this Agreement under Section 10.2,
      10.3 or 10.4 hereof shall not preclude the parties from pursuing all remedies
      available to them under applicable law arising by reason of such
      termination.

    

    11.  Miscellaneous.

    

    11.1  Finders.  247MGI
      and Buyer on the one hand, and Seller, on the other hand, represent and warrant
      that they have not employed or utilized the services of any broker or finder
      in
      connection with this Agreement or the transactions contemplated by
      it.  Seller shall indemnify and hold 247MGI and Buyer harmless from
      and against any and all claims for brokers' commissions made by any party as
      a
      result of this Agreement and the transaction contemplated hereunder to the
      extent that any such commission was incurred, or alleged to have been incurred,
      by, through or under Seller.  247MGI and Buyer, jointly and severally,
      shall indemnify and hold Seller harmless from and against any and all claims
      for
      brokers' commissions made by any party as a result of this Agreement and
      transaction contemplated hereunder to the extent that any such commission was
      incurred, or alleged to have been incurred, by, through or under 247MGI or
      Buyer.

    

    11.2  Expenses.  Except
      as otherwise specifically provided in this Agreement, each party shall bear
      their own respective expenses incurred in connection with this Agreement and
      in
      connection with all obligations required to be performed by each of them under
      this Agreement.

    

    11.3  Entire
      Agreement; No Waiver.  This Agreement, the Schedules and any
      instruments and agreements to be executed pursuant to this Agreement, sets
      forth
      the entire understanding of the parties hereto with respect to its subject
      matter, merges and supersedes all prior and contemporaneous understandings
      with
      respect to its subject matter and may not be waived or modified, in whole or
      in
      part, except by a writing signed by each of the parties hereto.  No
      waiver of any provision of this Agreement in any instance shall be deemed to
      be
      a waiver of the same or any other provision in any other
      instance.  Failure of any party to enforce any provision of this
      Agreement shall not be construed as a waiver of its rights under such
      provision.

    

    11.4  Jurisdiction
      and Governing Law.  This Agreement shall in all respects be
      governed by and construed in accordance with the laws of the State of Florida
      are applicable to agreements made and fully to be performed in such state,
      without giving effect to conflicts of law principles.  The parties
      further: (a) agree that any legal suit, action or proceeding arising out of
      or
      relating to this Agreement shall be instituted exclusively in any Federal or
      State court of competent jurisdiction within the County of Broward, State of
      Florida, (b) waive any objection that they may have now or hereafter to the
      venue of any such suit, action or proceeding, and (c) irrevocably consent to
      the
      in personam jurisdiction of any Federal or State court of competent jurisdiction
      within the County of Broward, State of Florida in any such suit, action or
      proceeding.  The parties each further agree to accept and acknowledge
      service of any and all process which may be served in any such suit, action
      or
      proceeding in a Federal or State court of competent jurisdiction within the
      County of Broward, State of Florida, and that service of process upon the
      parties mailed by certified mail to their respective addresses shall be deemed
      in every respect effective service of process upon the parties, in any action
      or
      proceeding.

    

    11.5  Construction.  Headings
      contained in this Agreement are for convenience only and shall not be used
      in
      the interpretation of this Agreement.  References herein to Articles,
      Sections and Exhibits are to the articles, sections and exhibits, respectively,
      of this Agreement.  The Seller Disclosure Schedule and Buyer/247MGI
      Disclosure Schedule are hereby incorporated herein by reference and made a
      part
      of this Agreement.  As used herein, the singular includes the plural,
      and the masculine, feminine and neuter gender each includes the others where
      the
      context so indicates.

    

    11.6  Notices.  All
      notices and other communications under this Agreement shall be in writing and
      shall be deemed given when delivered personally (including by confirmed legible
      telecopier transmission) or mailed by certified mail, return receipt requested,
      to the parties at the following addresses (or to such address as a party may
      have specified by notice given to the other party pursuant to this
      provision):

    

    

    If
      to
      Seller, c/o:

    

     

    SOYO
      GROUP, INC.

    1420
      South Vintage Avenue

    Ontario,
      CA 91761

    Attention:
      Ming Chok

    Facsimile
      (909) 937-0783

    

    If
      to
      247MGI, INC. or Buyer:

    

    1007
      N.
      Federal Hwy

    #D-6

    Fort
      Lauderdale, FL 33304

    Attention:
      Matthew Dwyer, President

    Telecopy
      No.:  (954) 323-2542

    

    With
      a
      copy to:

    

    Schneider
      Weinberger & Beilly LLP

    2200
      Corporate Boulevard, N.W.

    Suite
      210

    Boca
      Raton, Florida  33431-7307

    Attention:
      Steven I. Weinberger, Esq.

    Telecopy
      No.:  (561) 362-9612

    

    11.7  Separability.  In
      the event that any provision hereof would, under applicable law, be invalid
      or
      enforceable in any respect, such provision shall be construed by modifying
      or
      limiting it so as to be valid and enforceable to the maximum extent compatible
      with, and permissible under, applicable law.  The invalidity or
      unenforceability of any provision of this Agreement shall not affect the
      validity or enforceability of any other provision of this Agreement which shall
      remain in full force and effect.

    

    11.8  Binding
      Effect; Assignment.  This Agreement shall be binding upon and
      inure to the benefit of the parties and their respective successors and
      permitted assigns.  Nothing in this Agreement shall create or be
      deemed to create any third party beneficiary rights in any person or entity
      not
      a party to this Agreement.  No assignment of this Agreement or of any
      rights or obligation hereunder may be made by either party (by operation of
      law
      or otherwise) without the prior written consent of the other and any attempted
      assignment without the required consent shall be void.

    

    11.9  Best
      Knowledge.  As used in this Agreement "to the best of Seller's
      knowledge" or words of similar import shall mean actual or constructive
      knowledge possessed by an executive officer of Seller, including such actual
      or
      constructive knowledge that would be expected to be known upon the exercise
      of
      reasonable business judgment, and "to the best of 247MGI or Buyers knowledge"
      or
      words of similar import shall mean actual or constructive knowledge possessed
      by
      an executive officer of 247MGI or Buyer, including such actual or constructive
      knowledge that would be expected to be known upon the exercise of reasonable
      business judgment.

    

    11.10  Counterparts.  This
      Agreement may be executed in counterparts, each of which shall be an original,
      but which together shall constitute one and the same Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, we have executed this Agreement as of the date and
      year first above written.

    

    247MGI,
      INC.

    

    

    

    By:           /s/Matthew
      P. Dwyer___________

    
      	
               

            	
              Matthew
                P. Dwyer, President

            

    

    

    

    

    SOVEREIGN
      RESEARCH, LLC

    

    

    

    By:           /s/Matthew
      P. Dwyer______________

    
      	
               

            	
              Matthew
                P. Dwyer, Managing Member

            

    

    

    

    

    SOYO
      GROUP, INC.

    

    

    

    By:           /s/Ming
      Chok__________________

    
      	
               

            	
              Ming
                Chok, Chief Executive Officer

            

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      1.1

    

    ASSET
      SCHEDULEEX-10.1

Exhibit 10.1

PEPSICO ANNUAL LONG-TERM INCENTIVE AWARD

STOCK OPTION / RESTRICTED STOCK UNITS TERMS AND CONDITIONS

These Terms and Conditions, along with the PepsiCo Annual Long-Term Incentive Award Summary
(the “Award Summary”) delivered herewith and signed by the individual named on the Award Summary
(the “Participant”) shall constitute an Agreement made as of the Grant Date (as indicated on the
Award Summary), by and between PepsiCo, Inc., a North Carolina corporation having its principal
office at 700 Anderson Hill Road, Purchase, New York 10577 (“PepsiCo,” and with its divisions and
direct and indirect subsidiaries, the “Company”), and the Participant.

W I T N E S S E T H:

WHEREAS, the Board of Directors and shareholders of PepsiCo have approved the PepsiCo, Inc.
2007 Long-Term Incentive Plan (the “Plan”), for the purposes and subject to the provisions set
forth in the Plan; and

WHEREAS, pursuant to the authority granted to it in the Plan, the Compensation Committee of
the Board of Directors of PepsiCo (the “Committee”), by resolution duly adopted at a meeting held
on or prior to the Grant Date, authorized the grant to the Participant of the stock options and/or
restricted stock units set forth on the Award Summary; and

WHEREAS, awards granted under the Plan are to be evidenced by an Agreement in such form and
containing such terms and conditions as the Committee shall determine.

NOW, THEREFORE, it is mutually agreed as follows:

A. Terms and Conditions Applicable to Stock Options. These terms and conditions shall
apply with respect to the stock options, if any, granted to the Participant as indicated on the
Award Summary.

1. Grant. In consideration of the Participant remaining in the employ of the Company,
PepsiCo hereby grants to the Participant, on the terms and conditions set forth herein, the right
and option to purchase the number of shares of PepsiCo Common Stock, par value $.0167 per share,
indicated on the Award Summary, at the Grant/Exercise Price per share indicated on the Award
Summary (the “Option Exercise Price”), which was the Fair Market Value (as defined below) of
PepsiCo Common Stock on the Grant Date. The right to purchase each such share is referred to herein
as an “Option.” All Options granted hereunder shall be “Non-Qualified Stock Options” as defined in
the Plan.

2.  Vesting and Exercisability. Subject to the terms and conditions set forth herein,
the Options shall become fully vested on the vesting date set forth in the Award Summary (the
“Vesting Date”) and shall be exercisable from the Vesting Date through the expiration date set
forth in the Award Summary (the “Expiration Date”). Options may vest only while the Participant is
actively employed by the Company. Once vested and exercisable, and until terminated, all or any
portion of the Options may be exercised from time to time and at any time under procedures that the
Committee or its delegate shall establish from time to time, including, without limitation,
procedures regarding the frequency of exercise and the minimum number of Options which may be
exercised at any time.

3. Exercise Procedure. Subject to terms and conditions set forth herein, Options may
be exercised by giving written notice of exercise to PepsiCo in the manner specified from time to
time by PepsiCo. The aggregate Option Exercise Price for the shares being purchased, together with
any amount which the Company may be required to withhold upon such exercise in respect of
applicable foreign, federal (including FICA), state and local taxes, must be paid in full at the
time of issuance of such shares.

4. Effect of Termination of Employment, Death, Retirement and Total Disability.

(a) Termination of Employment. Options may vest only while the Participant is actively
employed by the Company. Thus, no vesting shall occur following the termination of the
Participant’s active employment with the Company, and all unvested Options shall automatically be
forfeited and cancelled upon the date that the Participant’s active employment with the Company
terminates. Only vested Options may be exercised. Subject to subparagraphs 4(b), 4(c) and 4(d),
vested Options shall be exercisable until, and shall automatically be forfeited and cancelled upon,
the earlier of the Expiration Date and the date that is the last trading day on the New York Stock
Exchange during the 90-calendar day period after the date the Participant’s employment with the
Company terminates. It is intended that an authorized leave of absence may extend employment for
purposes of determining the period when vested Options may be exercised. However, an authorized
leave of absence will not be treated as active employment, and, as a result, vesting of unvested
Options will not be extended by any such period.

(b) Retirement Prior to Age 62. If the Participant’s employment terminates prior to
the Vesting Date, by reason of the Participant’s Retirement (as defined below) prior to attaining
at least age 62, then: (i) a portion of the Options shall vest on the Participant’s last day of
active employment with the Company, with such portion determined in proportion to the Participant’s
active service (measured in calendar days) during the period commencing on the Grant Date and
ending on the Vesting Date; (ii) the Options shall continue to become exercisable in accordance
with Paragraph A.2 of this Agreement, with no change in the earliest date of exercise as a result
of the vesting provided by this subparagraph 4(b); and (iii) the Options may be exercised by the
Participant prior to the Expiration Date in accordance with this Agreement.

(c) Death, Total Disability, or Retirement on or After Age 62. If the Participant’s
employment terminates by reason of the Participant’s death, Total Disability (as defined below), or
Retirement after attaining at least age 62, then: (i) the Options shall become fully vested on the
Participant’s last day of active employment with the Company (which, for purposes of Total
Disability, means the effective date of Total Disability); (ii) the Options shall continue to
become exercisable in accordance with Paragraph A.2 of this Agreement, with no change in the
earliest date of exercise as a result of the vesting provided by this subparagraph 4(c); and
(iii) the Options may be exercised by the Participant’s legal representative (or any person to whom
the Options may be transferred by will or the applicable laws of descent and distribution), in the
event of death, or the Participant, in the event of Retirement or Total Disability, prior to the
Expiration Date in accordance with this Agreement.

(d) Transfers to a Related Entity. In the event the Participant transfers to a Related
Entity (as defined below), as a result of actions by PepsiCo, the Options shall become fully vested
on the date of such transfer and shall become exercisable as soon as practicable thereafter and
shall otherwise remain outstanding and be exercisable in accordance with this Agreement.

5. Buy-Out of Option Gains. Except as provided in Paragraph C.3, at any time after any
Option becomes exercisable, the Committee shall have the right, in its sole discretion and without
the consent of the Participant, to cancel such Option and to cause PepsiCo to pay to the
Participant the excess of the Fair Market Value of the shares of Common Stock covered by such
Option over the Option Exercise Price of such Option as of the date the Committee provides written
notice (the “Buy Out Notice”) of its intention to exercise such right. Payments of such buy out
amounts pursuant to this provision shall be effected by PepsiCo as promptly as possible after the
date of the Buy Out Notice and shall be made in shares of Common Stock. The number of shares shall
be determined by dividing the amount of the payment to be made by the Fair Market Value of a share
of Common Stock at the date of the Buy Out Notice, and by rounding up any fractional share to a
whole share. Payments of any such buy out amounts shall be made net of the minimum applicable
foreign, federal (including FICA), state and local withholding taxes, if any.

6. No Rights as Shareholder. The Participant shall have no rights as a holder of
PepsiCo Common Stock with respect to the Options granted hereunder unless and until such Options
are exercised and the shares have been registered in the Participant’s name as owner.

B. Terms and Conditions Applicable to Restricted Stock Units. These terms and
conditions shall apply with respect to the restricted stock units, if any, granted to the
Participant as indicated on the Award Summary.

1. Grant. In consideration of the Participant remaining in the employ of the Company,
PepsiCo hereby grants to the Participant, on the terms and conditions set forth herein, the number
of restricted stock units indicated on the Award Summary (the “Restricted Stock Units”).

2. Vesting. Subject to the terms and conditions set forth herein and subparagraphs
2(a) and (b) below, the Restricted Stock Units shall become fully vested on the Vesting Date and
shall be payable as soon as practicable after that date. Restricted Stock Units may vest only while
the Participant is actively employed by the Company. The Restricted Stock Units payable pursuant to
the preceding sentence shall be reduced by any Restricted Stock Units that are paid pursuant to
subparagraphs (a) and (b) below.

(a) Eligibility for Retirement Prior to Age 62. A Participant shall be vested in 33%
of his Restricted Stock Units on the first February 1 that follows the Grant Date if on such
February 1 the Participant: (i) is eligible for Retirement, (ii) is not yet age 62, and (iii) has
been actively employed by the Company continuously since the Grant Date. This vested portion shall
be paid as soon as practicable after this February 1. A Participant shall be vested in 66% of his
Restricted Stock Units on the second February 1 that follows the Grant Date if on such February 1
the conditions in (i), (ii) and (iii) of this Paragraph B.2(a) are satisfied. This vested portion
shall be paid as soon as practicable after this second February 1 (net of any Restricted Stock
Units previously paid out).

(b) Eligibility for Retirement on or After Age 62. A Participant shall be fully vested
in his Restricted Stock Units on the first February 1 that follows the Grant Date if on such
February 1 the Participant: (i) is eligible for Retirement, (ii) is at least age 62, and (iii) has
been actively employed by the Company continuously since the Grant Date. The Participant’s
Restricted Stock Units shall be payable as soon as practicable after this February 1. A Participant
shall be fully vested in his Restricted Stock Units on the second February 1 that follows the Grant
Date if on such February 1 the conditions in (i), (ii) and (iii) of this Paragraph B.2(b) are
satisfied. The Participant’s Restricted Stock Units shall be payable as soon as practicable after
this second February 1 (net of any Restricted Stock Units previously paid out).

3. Payment. Restricted Stock Units that vest and become payable shall be settled in
shares of PepsiCo Common Stock with the Participant receiving one share of PepsiCo Common Stock for
each vested Restricted Stock Unit. No fractional shares shall be delivered under this Agreement,
and so any fractional share that may be payable shall be rounded to the nearest whole share. Any
amount that the Company may be required to withhold upon the settlement of Restricted Stock Units
and/or the payment of dividend equivalents (see Section B.5 below) in respect of applicable
foreign, federal (including FICA), state and local taxes, must be paid in full at the time of the
issuance of shares or payment of cash. Unless the Participant makes other arrangements to satisfy
this withholding obligation in accordance with procedures approved by the Company in its
discretion, the Company shall withhold shares to satisfy the required withholding obligation
related to the settlement of Restricted Stock Units.

4. Effect of Termination of Employment, Death, Retirement and Total Disability.

(a) Termination of Employment. Restricted Stock Units may vest and become payable only
while the Participant is actively employed by the Company. Thus, vesting ceases upon the
termination of the Participant’s active employment with the Company. Subject to subparagraphs 4(b),
4(c) and 4(d), all unvested Restricted Stock Units shall automatically be forfeited and canceled
upon the date that the Participant’s active employment with the Company terminates. An authorized
leave of absence will not be treated as active employment, and, as a result, the vesting of
Restricted Stock Units will not be extended by any such period.

(b) Retirement Prior to Age 62. If the Participant’s employment terminates prior to
the Vesting Date, by reason of the Participant’s Retirement prior to attaining age 62, then a whole
number of Restricted Stock Units shall vest on the Participant’s last day of active employment with
the Company, with such number determined in proportion to the Participant’s active service
(measured in calendar days) during the period commencing on the Grant Date and ending on the
Vesting Date, and shall be payable as soon as practicable after that date (net of any Restricted
Stock Units previously paid out).

(c) Death, Total Disability, or Retirement on or After Age 62. If the Participant’s
employment terminates by reason of the Participant’s death, Total Disability (as defined below), or
Retirement after attaining at least age 62, then the Restricted Stock Units shall become fully
vested on the Participant’s last day of active employment with the Company (which, for purposes of
Total Disability, means the effective date of Total Disability) and will be payable as soon as
practicable after that date (net of any Restricted Stock Units previously paid out).

(d) Transfers to a Related Entity. In the event the Participant transfers to a Related
Entity (as defined below), as a result of actions by PepsiCo, the Restricted Stock Units shall
become fully vested on the date of such transfer and shall be payable as soon as practicable after
that date (net of any Restricted Stock Units previously paid out).

5. Dividend Equivalents. During the vesting period, the Participant shall accumulate
dividend equivalents with respect to the Restricted Stock Units, which dividend equivalents shall
be paid in cash (without interest) to the Participant only if and when the applicable Restricted
Stock Units vest and become payable. Dividend equivalents shall equal the dividends actually paid
with respect to PepsiCo Common Stock during the vesting period while (and to the extent) the
Restricted Stock Units remain outstanding and unpaid.

6. No Rights as Shareholder. The Participant shall have no rights as a holder of
PepsiCo Common Stock with respect to the Restricted Stock Units granted hereunder unless and until
such Restricted Stock Units have been settled in shares of Common Stock that have been registered
in the Participant’s name as owner.

C. Terms and Conditions Applicable to Stock Options and Restricted Stock Units.

1. Prohibited Conduct. 

(a) The Participant agrees that, at any time prior to the exercise of the Options or vesting
of the Restricted Stock Units granted hereunder, and for a period of twelve months after the later
of (i) completion of all such exercises of Stock Options, (ii) vesting of Restricted Stock Units or
(iii) termination of the Participant’s employment with the Company for any reason whatsoever
(including Retirement or Total Disability), he or she will not engage in any of the following
activities anywhere in the world:

(1) Non-Competition. Participant shall not accept any employment, assignment, position
or responsibility, or acquire any ownership interest, which involves the Participant’s
Participation in a business entity that markets, sells, distributes or produces Covered Products,
unless such business entity makes retail sales or consumes Covered Products without in any way
competing with the Company.

(2) Raiding Employees. Participant shall not in any way, directly or indirectly
(including through someone else acting on the Participant’s recommendation, suggestion,
identification or advice), solicit any Company employee to leave the Company’s employment or to
accept any position with any other entity.

(3) Non-Disclosure. Participant shall not use or disclose to anyone any confidential
information regarding the Company other than as necessary in his or her position with the Company.
Such confidential information shall include all non-public information the Participant acquired as
a result of his or her positions with the Company which might be of any value to a competitor of
the Company, or which might cause any economic loss or substantial embarrassment to the Company or
its customers, bottlers, distributors or suppliers if used or disclosed. Examples of such
confidential information include, without limitation, non-public information about the Company’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) Misconduct. Participant shall not engage in any acts that are considered to be
contrary to the Company’s best interests, including, but not limited to, violating the Company’s
Code of Conduct, engaging in unlawful trading in the securities of PepsiCo or of any other company
based on information gained as a result of his or her employment with the Company, or engaging in
any other activity which constitutes gross misconduct.

(b) In the event the Company determines that the Participant has breached any term of
Paragraph C.1(a), in addition to any other remedies the Company may have available to it, the
Company may in its sole discretion:

(1) Cancel any unexercised Options or unvested Restricted Stock Units granted hereunder;

(2) Require the Participant to pay to the Company all gains realized from the exercise of any
Options granted hereunder, which have been exercised within the twelve-month period immediately
preceding the date as of which the Participant has breached a provision of Paragraph C.1(a), as
determined by the Company; and/or

(3) Require the Participant to pay to the Company the value (determined as of the date the
forfeiture restrictions on the Restricted Stock Units lapse) of any Restricted Stock Units, which
have been paid within the twelve-month period immediately preceding the date as of which the
Participant has breached a provision of Paragraph C.1(a), as determined by the Company.

2. Adjustment for Change in Common Stock. In the event of any change in the
outstanding shares of PepsiCo Common Stock by reason of any stock split, stock dividend,
recapitalization, reorganization, merger, consolidation, combination or exchange of shares,
spin-off or other similar corporate change, (a) the number and type of shares which the Participant
may purchase pursuant to the Options and the Option Exercise Price at which the Participant may
purchase such shares shall be adjusted, and (b) the number and type of shares to which the
Restricted Stock Units held by the Participant relate shall be adjusted, in the case of (a) and
(b), as may be, and to such extent (if any), determined to be appropriate and equitable by the
Committee.

3. Effect of Change in Control. In the event of a Change in Control (as defined in the
Plan), the following provisions shall apply:

(a) If the successor corporation (or affiliate thereto) (1) assumes the outstanding Options
and Restricted Stock Units granted hereunder or (2) replaces the outstanding Options and Restricted
Stock Units with equity awards that preserve the existing value of such Options and Restricted
Stock Units at the time of the Change in Control and provide for subsequent payout in accordance
with a vesting schedule that is the same or more favorable to the Participant than the vesting
schedule applicable to such Options and Restricted Stock Units, then the outstanding Options and
Restricted Stock Units or such substitutes thereof shall remain outstanding and be governed by
their respective terms and the provisions of the Plan, subject to Paragraph C.3(c) below.

(b) If the outstanding Options and Restricted Stock Units granted hereunder are not assumed or
replaced in accordance with Paragraph C.3(a) above, then upon the Change in Control, (1) the
outstanding Options granted hereunder shall immediately vest and become exercisable and shall
remain outstanding in accordance with their terms and the outstanding Restricted Stock Units
granted hereunder shall immediately vest and shall be payable immediately in accordance with their
terms or, if later, as of the earliest permissible date under Code Section 409A and (2),
notwithstanding Paragraph C.3(b)(1) but after taking into account the accelerated vesting set forth
therein, the Board may, in its sole discretion, provide for cancellation of the outstanding Options
and Restricted Stock Units at the time of the Change in Control in which case a payment of cash,
property or a combination thereof shall be made to the Participant that is determined by the Board
in its sole discretion and that, in the case of the Restricted Stock Units, is at least equal to
the value of the consideration that would be received in such Change in Control by the holders of
PepsiCo’s securities relating to such awards and, in the case of the outstanding Options, is at
least equal to the excess, if any, of the value of such consideration over the Option Exercise
Price for such Options.

(c) If the outstanding Options and Restricted Stock Units granted hereunder are assumed or
replaced in accordance with Paragraph C.3(a) and the Participant’s employment with the Company is
terminated by the Company for any reasons other than Cause or by the Participant for Good Reason,
in each case, within the two-year period commencing on the Change in Control, then, as of the date
of the Participant’s termination, (1) the outstanding Options granted hereunder shall immediately
vest and become exercisable and shall remain outstanding until the Expiration Date and (2) the
outstanding Restricted Stock Units granted hereunder shall immediately vest and shall be payable
immediately in accordance with their terms or, if later, as of the earliest permissible date under
Code Section 409A. For purposes of this Paragraph C.3, “Cause” and “Good Reason” are defined in the
Plan and a termination for Cause or Good Reason is subject to the terms and conditions set forth in
the Plan.

4. Nontransferability. Unless the Committee specifically determines otherwise: (a) the
Options and Restricted Stock Units are personal to the Participant and, with respect to Options,
during the Participant’s lifetime, such Options may be exercised only by the Participant, and
(b) the Options and Restricted Stock Units shall not be transferable or assignable, other than in
the case of the Participant’s death by will, the laws of descent and distribution.

5. Definitions. As used in this Agreement, the following terms shall have the meanings
set forth below:

(a) “Covered Products” means any product which falls into one or more of the following
categories, so long as the Company 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 syrup; value-added pasta
products; ready-to-eat cereals; dry pasta products; or any product or service which the Participant
had reason to know was under development by the Company during the Participant’s employment with
the Company.

(b) “Fair Market Value” of a share of PepsiCo Common Stock on any date shall mean an amount
equal to the mean of the high and low sales prices for a share of PepsiCo Common Stock as reported
on the composite tape for securities listed on The New York Stock Exchange, Inc. on the date in
question (or if no sales of Common Stock were made on said Exchange on such date, on the next
preceding day on which sales were made on such Exchange), rounded up to nearest one-fourth.

(c) “Participation” shall be construed broadly to include, without limitation: (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.

(d) “Related Entity” shall mean any entity as to which the Company directly or indirectly owns
20% or more of the entity’s voting securities, general partnership interests, or other voting or
management rights.

(e) “Retirement” shall mean (i) early, normal or late retirement under the U.S. pension plan
of the Company in which the Participant participates (if any), (ii) retirement as explicitly set
out in an individual agreement between the Company and the Participant for this purpose in effect
on the Grant Date, (iii) termination of employment after attaining at least age 55 with at least
10 years of service with the Company (or, if earlier, after attaining at least age 65 and
completing at least five years of service with the Company), or (iv) retirement as otherwise
determined by the Committee.

(f) “Total Disability” shall mean becoming totally and permanently disabled, as determined for
purposes of the Company’s Long Term Disability Plan (or in the absence of such Disability Plan
being applicable to the Participant, as determined by the Committee in its sole discretion).

6. Notices. Any notice to be given to PepsiCo in connection with the terms of this
Agreement shall be addressed to PepsiCo at Purchase, New York 10577, Attention: Vice President,
Compensation, or such other address as PepsiCo may hereafter designate to the Participant. Any such
notice shall be deemed to have been duly given when personally delivered, addressed as aforesaid,
or when enclosed in a properly sealed envelope or wrapper, addressed as aforesaid, and deposited,
postage prepaid, with the federal postal service.

7. Binding Effect.

(a) This Agreement shall be binding upon and inure to the benefit of any assignee or successor
in interest to PepsiCo, whether by merger, consolidation or the sale of all or substantially all of
PepsiCo’s assets. PepsiCo will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or assets of
PepsiCo expressly to assume and agree to perform this Agreement in the same manner and to the same
extent that PepsiCo would be required to perform it if no such succession had taken place.

(b) This Agreement shall be binding upon and inure to the benefit of the Participant or his or
her legal representative and any person to whom the Options and Restricted Stock Units may be
transferred by will or the applicable laws of descent and distribution.

8. No Contract of Employment; Agreement’s Survival. This Agreement is not a contract
of employment, nor does it impose on the Company any obligation to retain the Participant in its
employ. This Agreement shall survive the termination of the Participant’s employment for any
reason.

9. Registration, Listing and Qualification of Shares. The Committee may require that
the Participant make such representations and agreements and furnish such information as the
Committee deems appropriate to assure compliance with or exemption from the requirements of any
securities exchange, any foreign, federal, state or local law, any governmental regulatory body, or
any other applicable legal requirement, and PepsiCo Common Stock shall not be issued unless and
until the Participant makes such representations and agreements and furnished such information as
the Committee deems appropriate.

10. Amendment; Waiver. The terms and conditions of this Agreement may be amended in
writing by the chief personnel officer or chief legal officer of PepsiCo (or either of their
delegates), provided, however, that (i) no such amendment shall be adverse to the Participant
(except to the extent the Committee reasonably determines that such amendment is necessary or
appropriate to comply with applicable law, including the provisions of Code Section 409A and the
regulations thereunder pertaining to the deferral of compensation, or the rules and regulations of
any stock exchange on which PepsiCo Common Stock is listed or quoted); and (ii) the amendment must
be permitted under the Plan. The failure to exercise, or any delay in exercising, any right, power
or remedy under this Agreement shall not waive any right, power or remedy which the Board, the
Committee or the Company has under this Agreement.

11. Severability or Reform by Court. In the event that any provision of this Agreement
is deemed by a court to be broader than permitted by applicable law, then such provision shall be
reformed (or otherwise revised or narrowed) so that it is enforceable to the fullest extent
permitted by applicable law. If any provision of this Agreement shall be declared by a court to be
invalid or unenforceable to any extent, the validity or enforceability of the remaining provisions
of this Agreement shall not be affected.

12. Prospectus and Award Acceptance. The Participant has been provided a copy of
PepsiCo’s Prospectus relating to the Plan, the Options and the shares covered thereby, and the
Restricted Stock Units. By signing the Award Summary, the Participant agrees that he or she has
reviewed the Prospectus, and fully understands his or her rights under the Plan. Unless and until
the Participant signs the Award Summary and returns the Agreement to the Company, notwithstanding
the other terms of this Agreement, the Participant shall not be entitled to the proceeds of any
Option exercise or Restricted Stock Unit payment.

13. Plan Controls. The Options, Restricted Stock Units and the terms and conditions
set forth herein are subject in all respects to the terms and conditions of the Plan and any
guidelines, policies or regulations which govern administration of the Plan, which shall be
controlling. The Board reserves its rights to amend or terminate the Plan at any time without the
consent of the Participant; provided, however, that Options and Restricted Stock Units outstanding
under the Plan at the time of such action shall not be adversely affected thereby (except to the
extent the Committee reasonably determines that such amendment is necessary or appropriate to
comply with applicable law, including the provisions of Code Section 409A and the regulations
thereunder pertaining to the deferral of compensation, or the rules and regulations of any stock
exchange on which PepsiCo Common Stock is listed or quoted). All interpretations or determinations
of the Committee or its delegate shall be final, binding and conclusive upon the Participant (and
his or her legal representatives and any recipient of a transfer of the Options or Restricted Stock
Units permitted by this Agreement) on any question arising hereunder or under the Plan or other
guidelines, policies or regulations which govern administration of the Plan.

14. Participant Acknowledgement. By entering into this Agreement, the Participant
acknowledges and agrees that:

(a) the Option and/or Restricted Stock Unit grant will be exclusively governed by the terms of
the Plan, including the right reserved by the Company to amend or cancel the Plan at any time
without the Company incurring liability to the Participant (except for Options and Restricted Stock
Units already granted under the Plan);

(b) stock options and restricted stock units are not a constituent part of the Participant’s
salary and that the Participant is not entitled, under the terms and conditions of his/her
employment, or by accepting or being awarded the Options and/or Restricted Stock Units pursuant to
this Agreement to require options, restricted stock units or other awards to be granted to him/her
in the future under the Plan or any other plan;

(c) upon exercise of the Options or vesting of Restricted Stock Units the Participant will
arrange for payment to the Company an estimated amount to cover employee payroll taxes resulting
from the exercise and/or, to the extent necessary, any balance may be withheld from the
Participant’s wages;

(d) benefits received under the Plan will be excluded from the calculation of termination
indemnities or other severance payments;

(e) in the event of termination of the Participant’s employment, a severance or notice period
to which the Participant may be entitled under local law and which follows the date of termination
specified in a notice of termination will not be treated as active employment for purposes of this
Agreement and, as a result, vesting of unvested Options or Restricted Stock Units will not be
extended by any such period;

(f) the Participant will seek all necessary approval under, make all required notifications
under and comply with all laws, rules and regulations applicable to the ownership of stock options
and stock and the exercise of stock options, including, without limitation, currency and exchange
laws, rules and regulations; and, in the event that any of the Participant’s Options or Restricted
Stock Units, including any such awards previously granted, become subject to the Indian fringe
benefit tax (“FBT”), the Participant will be responsible for the FBT imposed on such awards and
consents to provide payment to the Company of the applicable FBT at the time such FBT is due in
accordance with the procedures specified from time to time by the Company; and

(g) this Agreement will be interpreted and applied so that the Options and Restricted Stock
Units will not be subject to Code Section 409A. If notwithstanding the preceding sentence, the
Restricted Stock Units become subject to Code Section 409A, then the specified time of payment of
the Restricted Stock Units for purposes of Code Section 409A shall be the calendar year in which
the short-term deferral period expires with respect to the Restricted Stock Unit (or by such later
time as may be permitted by Code Section 409A under the circumstances).

15. Governing Law. This Agreement shall be governed by, construed and enforced in
accordance with the laws of North Carolina, without giving effect to conflict of laws principles.

16. Entire Agreement. This Agreement constitutes the entire understanding between the
parties to this Agreement.

1

PepsiCo Annual Long-Term Incentive Award Summary

Executive Name:

Grant Date:

Grant Price: $

CORE ANNUAL AWARD

Restricted Stock Units:

Stock Options:

CORE ANNUAL AWARD DETAILS

RESTRICTED STOCK UNITS AWARD

US Dollar Value Core Annual Award:

Percentage RSU:

Restricted Stock Unit Award Value:

Grant Price: $

Number of Restricted Stock Units Granted:

Vesting Date*:

STOCK OPTIONS AWARD

US Dollar Value Core Annual Award:

Percentage Stock Options:

Stock Option Award Value:

Conversion Factor: 4x

Stock Option Award Face Value:

Option Exercise (Grant) Price: $

Number of Options Granted:

Vesting Date*:

Expiration Date:

* Vesting and exercisability are subject to the terms and conditions of the award

I accept my PepsiCo Annual Long-Term Incentive Award as described above, subject to all the
terms and conditions set forth in the attached.

	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

{Executive Name}

Date:

 

	 	 
	 	 

 

 

 
	 	

 
	 	

 

{Name/Title of PepsiCo Officer}

Sign and date this page. Fax entire agreement to PepsiCo Executive Compensation Dept. no later
than {Date}. Fax number {x-xxx-xxx-xxxx}.

2

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