Document:

EX-10.16

Exhibit 10.16

Gartner, Inc.

Enhanced Benefits Program — Operating Committee

Effective December 19, 2008

Gartner Operating Committee Members (U.S. Associates),

As a member of Gartner’s Operating Committee employed in the United States, you play a
vital role in the overall success of our corporate performance. To that end, you have
been asked to collaborate across organizational lines and make or support those
decisions that build the total organization’s value. In recognition of this
responsibility, you have the opportunity to participate in an enhanced executive
benefits package.

These enhanced benefits include:

	•	 	Enhanced severance policy
	 
	•	 	35 Paid Time Off days
	 
	•	 	$15,000 annual payment to purchase the perquisites of your choice (grossed up for
tax purposes)
	 
	•	 	discretionary matching contribution under the Deferred Compensation Plan
	 
	•	 	Annual executive medical exam

Enhanced Severance Policy

The role you play as a senior leader has a higher risk/reward than other roles. In
order to ensure that you are focused on your responsibilities, we have included an
enhanced severance policy as part of this package.

If you are terminated without Cause (including as a result of the elimination of
your position) then you will be entitled to receive the following:

	•	 	your current annual base salary through your termination date (and a lump sum
payment equal to any accrued, unused PTO, up to a maximum of 25 days) plus
continued base salary for a period of twelve months following the termination date,
payable in accordance with Gartner’s regular payroll schedule as in effect from
time to time;
	 
	•	 	the right to exercise all options and other exercisable rights held by you that
are vested as of the termination date for a period of 90 days following the
termination date;
	 
	•	 	reimbursement for COBRA premiums incurred, minus the contribution paid by active
associates, to continue group health benefits under Gartner’s plan (or, at
Gartner’s election, to obtain substantially similar health benefits through a third
party carrier) for twelve months for you and any other family members (i.e., your
spouse and any eligible children) for whom you have made the appropriate election.

Except as provided above, you shall not be entitled to any other compensation, severance
or other benefits, other than any benefits otherwise available to you under this Policy
in the case of a Change in Control.

If you are terminated without Cause (including as a result of the elimination of your
position) during the 12 month period following a Change of Control, then, in addition to
the payments and benefits describe above, all outstanding equity awards shall vest in
full and all outstanding equity awards with an exercise feature shall be immediately
exercisable, and shall remain exercisable for 12 months following the termination date.

 

 

Gartner, Inc.

Enhanced Benefits Program

For purposes of this policy in connection with a Change in Control only, “outstanding equity
awards shall include all outstanding performance-based equity awards as to which the performance
criteria have not been certified, as of the termination date, by the Compensation Committee at
target, as well as all other outstanding equity awards.

“Cause” means (i) your failure to perform your assigned duties or responsibilities (other
than a failure resulting from disability) in such a manner as to cause material loss, damage or
injury to Gartner; (ii) gross negligence or serious misconduct by you in connection with the
discharge of the duties of your position in such a manner as to cause material loss, damage or
injury to Gartner; (iii) your use of drugs or alcohol in such a manner as to materially interfere
with the performance of your assigned duties; or (iv) your being convicted of, or entering a plea
of nolo contendere to, a felony. In each instance, the foregoing acts and omissions shall not
constitute Cause unless and until you have been provided with written notice from Gartner
describing your act or omission that otherwise would constitute Cause and your failure to remedy
such act or omission within 30 days of receiving written notice.

“Change in Control” shall have the same meaning as in Gartner’s 2003 Long Term Incentive
Plan.

In order to receive any benefits under the Enhanced Severance Policy, you must execute and deliver
a release of claims acceptable to Gartner within 60 days following termination. Payment of amounts
that are exempt from Section 409A (see Appendix A) will begin upon the expiration of the release’s
revocation period, but payment of any Section 409A “deferred compensation” will begin only upon the
expiration of the 60-day period (subject to any further delay required under Appendix A).

Paid-Time-Off (PTO) Program

Gartner understands the importance of time away from work and how it results in a better frame of
mind to provide outstanding results. As a senior leader of Gartner, you will be eligible for the
highest level of PTO days, 35 days per year.

If your employment should terminate, you will be paid for any unused PTO up to a maximum of
25 days. The rate is based on your base salary only.

Annual Lump-Sum Payment

Under the executive benefit program, Gartner will pay you an annual lump sum payment of $15,000
from which you can choose to purchase the perquisites of your choice. For US taxpayers, this amount
shall be grossed-up. In other words, you will be entitled to receive an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by you of all income and payroll taxes
imposed on the benefit payment and the Gross-Up Payment, you will retain the same amount on an
after tax basis with respect to the benefit payment due that you would have retained had no such
tax been imposed. In all cases, you are responsible for paying your own taxes.

Deferred Compensation Plan- Discretionary Match

OC Members who defer salary or bonus under the Gartner, Inc. Deferred Compensation Plan may be
eligible for an additional Company match in accordance with the terms of

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Gartner, Inc.

Enhanced Benefits Program

that plan. The match is discretionary and determined by the Company each year prior to the
enrollment period; refer to the Deferred Compensation Plan enrollment materials for current
details.

Executive Health Exam

You are eligible for an annual preventive physical examination by Executive Health Exams
International (EHE). There are EHE facilities located in New York and in Stamford. Appointments can
be scheduled on line by registering as a private patient at
https://manaqe.eheintl.com/emr/psched/loqin.isp. Please pay for services in full and submit
the detailed invoice to the Senior Director of Benefits & HRIS, for reimbursement through payroll.
For US taxpayers, the fees or premiums paid on your behalf in regard to this benefit shall be
grossed-up. In other words, you will be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by you of all income and payroll taxes imposed on
the benefit payment and the Gross-Up Payment, you will retain the same amount on an after tax basis
with respect to the benefit payment due that you would have retained had no such tax been imposed.
In all cases, you are responsible for paying your own taxes.

In Conclusion

These benefits are being offered to you to supplement the current benefits package offered to all
associates. You are not required to utilize these additional benefits, but may choose the ones that
best meet your individual requirements.

The receipt of these benefits is contingent upon your signature below. By signing below, you
acknowledge and agree that this enhanced executive benefits package, together with those
non-severance benefits offered generally to all Gartner associates, shall be the only benefits to
which you are entitled, and that any and all other benefits or arrangements, whether oral or in
writing, previously existing between you and Gartner have been superseded and extinguished by this
Program.

Benefits provided under this Program are subject to Appendix A, Compliance with Code Section 409A.

Approved by the Compensation Committee of the Board of Directors of Gartner, Inc. December
19, 2008

	 	 	 	 	 
	 	 	 
	By:  	                       
 	 	 
	 	Title: Lewis G. Schwartz,       	 	 
	 	SVP, General Counsel and Corporate Secretary 	 	 
	 

	 	 	 	 	 
	Acknowledged

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

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Gartner, Inc.

Enhanced Benefits Program

APPENDIX A

Compliance with Code Section 409A

Section 409A of the Internal Revenue Code and the accompanying regulations (“Section 409A”) govern
the payment of nonqualified deferred compensation. Payments and benefits under this Program are
intended to be exempt from Section 409A to the maximum possible extent and, if not exempt, are
intended to comply with the requirements of Section 409A.

The payments and benefits provided under the Enhanced Severance Policy described are intended to be
exempt from Section 409A under the short-term deferral and separation pay exceptions to the maximum
permissible extent; accordingly, each installment payment (i.e., the amount due on each payroll
date) will be treated as a separate payment.

For any amounts provided under this Program that are “deferred compensation” within the meaning of
Section 409A (i.e., not exempt from Section 409A):

	 	(a)	 	if payable as a result of termination of employment and you are a “Specified
Employee” (as determined by Gartner under Section 409A, which generally will includes all
U.S. OC Members) at that time, amounts that otherwise would be paid during the first six
months following termination will be delayed and accumulated for a period of six months
and paid in a lump sum on the first day of the seventh month;
	 
	 	(b)	 	“termination of employment” means the date you experience a “separation from service”
within the meaning of Section 409A; and
	 
	 	(c)	 	Gartner will not accelerate any such payment except to the extent permitted
under Section 409A.

Any reimbursements or in-kind benefits provided under this Program will be administered in
accordance with Section 409A, such that: (a) the amount of expenses eligible for reimbursement or
in-kind benefits provided during one year will not affect the expenses eligible for reimbursement
or the in-kind benefits provided in any other year; (b) reimbursement of eligible expenses will be
made on or before December 31 of the year following the year in which the expense was incurred; and
(c) the right to reimbursement or in-kind benefits is not subject to liquidation or to exchange for
another benefit. Any “gross-up” payment under this Program will be made no later than December 31
of the year following the year in which the you pay the related taxes.

Nothing in the Program or this Appendix A should be interpreted as an entitlement to or guarantee
of any particular tax treatment.

4EX-10.29

Exhibit 10.29

THE PBG DIRECTORS’ STOCK PLAN

(As Amended and Restated as of October 2, 2008)

1. Purposes

     The principal purposes of The PBG Directors’ Stock Plan (the “Plan”) are to provide
compensation to those members of the Board of Directors of The Pepsi Bottling Group, Inc. (“PBG”)
who are not also employees of PBG, to assist PBG in attracting and retaining outside directors with
experience and ability on a basis competitive with industry practices, and to associate more fully
the interests of such directors with those of PBG’s shareholders.

2. Effective Date

     The Plan was unanimously approved by the Board of Directors of PBG, conditional on shareholder
approval, and became effective on May 23, 2001, superseding The PBG Directors’ Stock Plan of 1999.
The Plan was amended on January 23, 2003 and further amended and restated effective as of February
2, 2006, as of July 19, 2006, February 8, 2007 and further amended March 27, 2008. This amendment
and restatement of the Plan is effective as of October 2, 2008, and it shall apply to awards made
on or after that date.

3. Administration

     The Plan shall be administered and interpreted by the Board of Directors of PBG (the “Board”).
The Board shall have full power and authority to administer and interpret the Plan and to adopt
such rules, regulations, guidelines and instruments for the administration of the Plan and for the
conduct of its business as the Board deems necessary or advisable. The Board’s interpretations of
the Plan, and all actions taken and determinations made by the Board pursuant to the powers vested
in them hereunder, shall be conclusive and binding on all parties concerned, including PBG, its
directors and shareholders and any employee of PBG. The costs and expenses of administering the
Plan shall be borne by PBG and not charged against any award or to any award recipient.

4. Eligibility

     Directors of PBG who are not employees of PBG (“Non-Employee Directors”) are eligible to
receive awards under the Plan. Directors of PBG who are employees of PBG are not eligible to
participate in the Plan, but shall be eligible to participate in other PBG benefit and compensation
plans.

5. Initial Award

     Under the Plan, each Non-Employee Director shall, on the first day of the month after
commencing service as a Non-Employee Director of PBG, receive a formula grant of restricted stock
(“Restricted Stock”). The number of shares of Restricted Stock to be included in each such award
shall be determined by dividing $25,000 by the Fair Market Value (as defined below) of a share of
PBG Common Stock on the date of grant (the “Stock Grant Date”), or if such day is not a trading day
on the New York Stock Exchange (“NYSE”), on the immediately preceding trading day. The number of
shares so determined shall be rounded up to the nearest number of whole shares. If the recipient of
the Restricted Stock continuously remains a director of PBG, the Restricted Stock granted hereunder
shall vest and any restrictions thereon shall lapse on the first anniversary of the Stock Grant
Date; provided, however, that, in the event of a Non-Employee Director’s death or
Disability (as defined in Section 6(c)), the Restricted Stock granted to such Non-Employee Director
shall vest and any restrictions thereon shall lapse immediately. Notwithstanding the foregoing, a
Non-Employee Director may not sell or otherwise transfer any Restricted Stock granted to him or her
prior to the date such Non-Employee Director ceases to serve as a director for any reason. The
Non-Employee Director shall have all of the rights of

 

 

a stockholder with respect to such Restricted Stock, including the right to receive all
dividends or other distributions paid or made with respect to the stock. Any dividends or
distributions that are paid or made in PBG Common Stock shall be subject to the same restrictions
as the Restricted Stock in respect of which such dividends or distributions were paid or made.
However, any dividends or distributions paid or made in cash shall not be subject to the
restrictions. Each Restricted Stock award shall be evidenced by an agreement setting forth the
terms and conditions thereof, which terms and conditions shall not be inconsistent with those set
forth in this Plan.

6. Annual Stock Option Award

     (a) Under the Plan, each Non-Employee Director shall receive an annual formula grant of
options to purchase shares of PBG Common Stock (“Options”) at a fixed price (the “Exercise Price”).
Such grant shall be made annually on April 1 (the “Option Grant Date”); provided,
however, that each individual who commences services as a Non-Employee Director after April
1 of a year shall receive a pro-rated annual formula grant of options (a “Pro-Rated Grant”) with
respect to his or her first year of service, on the first day of the month following the date he or
she commences service (the “Pro-Rated Option Grant Date”). To receive a grant of Options, a
Non-Employee Director must be actively serving as a director of PBG on the Option Grant Date or the
Pro-Rated Option Grant Date, as applicable.

     (b) The number of Options to be included in each annual option award shall be determined by
dividing the Grant Amount (as defined below) by the Fair Market Value (as defined below) of a share
of PBG Common Stock on the Option Grant Date or Pro-Rated Option Grant Date, as applicable, or if
such day is not a trading day on the NYSE, on the immediately preceding trading day. Grant Amount
shall mean $210,000, except that, in the case of a Pro-Rated Grant, Grant Amount shall mean the
following: (i) $157,500 in the case of an individual who commences service as a Non-Employee
Director of PBG on or after April 2 and on or before June 30; (ii) $105,000 in the case of an
individual who commences service as a Non-Employee Director of PBG on or after July 1 and on or
before September 30; (iii) $52,500 in the case of an individual who commences service as a
Non-Employee Director of PBG on or after October 1 and on or before December 31. No Pro-Rated
Grant shall be made in the case of an individual who commences service as a Non-Employee Director
of PBG on or after January 1 and on or before April 1. The number of Options so determined shall
be rounded up (if necessary) to the nearest number of whole Options. “Fair Market Value” shall
mean the average of the high and low per share sale prices for PBG Common Stock on the composite
tape for securities listed on the NYSE for the day in question, except that such average price
shall be rounded up (if necessary) to the nearest cent.

     (c) Options shall vest and become immediately exercisable on the Option Grant Date or
Pro-Rated Option Grant Date, as applicable. Each Option shall have an Exercise Price equal to the
Fair Market Value of PBG Common Stock on the Option Grant Date or Pro-Rated Option Grant Date, as
applicable, or if such day is not a trading day on the NYSE, on the immediately preceding trading
day. Each Option shall have a term of ten years; provided, however, in the event
the holder thereof shall cease to be a director of PBG, or its successor, for a reason other than
death or Disability (as defined below), such Options shall terminate and expire upon the earlier of
(i) the expiration of the original term, or (ii) five years from the date the holder ceased to be a
director. For purposes of this Section 6 and Section 5 above, a Non-Employee Director has a
“Disability” if he or she is totally disabled as determined using the standards PBG applies under
its long term disability program.

     (d) Non-Employee Directors may exercise their Options by giving an exercise notice to PBG in
the manner specified from time to time by the Board. Options may be exercised by using either a
standard cash exercise procedure or a cashless exercise procedure. From time to time, the Board
may change or adopt procedures relating to Option exercises. If, at any time, a Non-Employee
Director suffers a Disability or is otherwise incapable of exercising his or her Options before the
expiration thereof, the Board may take any steps it deems appropriate to prevent such Options from
lapsing prior to being exercised.

     (e) Each Option award shall be evidenced by a written agreement setting forth the terms and
conditions thereof, which terms and conditions shall not be inconsistent with those set forth in
this Plan.

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     (f) No Option shall contain a feature for the deferral of compensation within the meaning of
Treasury Regulation section 1.409A-1(b)(5)(i)(A)(3).

7. Annual Restricted Stock Unit Award

     (a) Under the Plan, each Non-Employee Director shall receive an annual formula grant of
restricted stock units (“RSUs”). When a Non-Employee Director’s RSUs become payable, they shall be
settled in shares of PBG Common Stock with the Non-Employee Director receiving one share of PBG
Common Stock for each RSU. The grant of RSUs shall be made annually on April 1 (the “RSU Grant
Date”); provided, however, that each individual who commences service as a
Non-Employee Director after April 1 of a year shall receive a pro-rated annual formula grant of
RSUs (a “Pro-Rated RSU Grant”) with respect to his or her first year of service on the first day of
the month following the date he or she commences service (the “Pro-Rated RSU Grant Date”). To
receive a grant of RSUs, a Non-Employee Director must be actively serving as a director of PBG on
the RSU Grant Date or the Pro-Rated RSU Grant Date, as applicable.

     (b) The number of RSUs to be included in each annual RSU award shall be determined by dividing
the RSU Grant Amount (as defined below) by the Fair Market Value of a share of PBG Common Stock on
the RSU Grant Date or Pro-Rated RSU Grant Date, as applicable, or if such day is not a trading day
on the NYSE, on the immediately preceding trading day. RSU Grant Amount shall mean $70,000, except
that, in the case of a Pro-Rated RSU Grant, RSU Grant Amount shall mean the following: (i) $52,500
in the case of an individual who commences service as a Non-Employee Director on or after April 2
and on or before June 30; (ii) $35,000 in the case of an individual who commences service as a
Non-Employee Director on or after July 1 and on or before September 30; (iii) $17,500 in the case
of an individual who commences service as a Non-Employee Director on or after October 1 and on or
before December 31. No Pro-Rated RSU Grant shall be made in the case of an individual who
commences service as a Non-Employee Director on or after January 1 and on or before April 1. The
number of RSUs so determined shall be rounded up (if necessary) to the nearest number of whole
RSUs.

     (c) RSUs shall vest on the RSU Grant Date or Pro-Rated RSU Grant Date, as applicable. RSUs
shall be payable on the RSU Grant Date or Pro-Rated RSU Grant Date, as applicable, unless the
Non-Employee Director timely elects to defer the payment of such RSUs. In general, any such
deferral election with respect to RSUs must be made in the calendar year preceding the year of the
grant. However, in the case of a Pro-Rated RSU Grant, any such deferral election may be made as
late as one day prior to the Pro-Rated RSU Grant Date, provided that when the election is made, the
Non-Employee Director is then initially eligible to participate in the Plan, within the meaning of
Treasury Regulation section 1.409A-2(a)(7)(ii), taking into account any other plan that would be
aggregated with the Plan pursuant to Treasury Regulation section 1.409A-1(c)(2). Any such election
to defer the payment date of an RSU Grant or a Pro-Rated RSU Grant must specify a future payment
date (the beginning of any calendar quarter) that will result in a minimum deferral period of at
least two years.

     (d) Notwithstanding any deferral election made pursuant to the immediately preceding provision, a Non-Employee Director’s RSUs shall be paid as of the beginning of the calendar quarter
following the Non-Employee Director’s Permanent Disability (as defined below), Separation from
Service (as defined below) with PBG or death. For purposes of this Plan, a Non-Employee Director
shall be considered to have a Permanent Disability as of the first date on which the Non-Employee
Director would be considered disabled within the meaning of Section 409A(a)(2)(C) of the Internal
Revenue Code of 1986, as amended (“Code”). For purposes of this Plan, the determination of when a
Non-Employee Director has incurred a separation from service with PBG shall be made in accordance
with Section 409A(a)(2)(A)(i) of the Code (“Separation from Service”).

     (e) During any period that the payment of RSUs is deferred, the Non-Employee Director whose
RSUs are deferred shall be entitled to be credited with dividend equivalents. Dividend equivalents
shall equal the dividends actually paid with respect to a corresponding amount of PBG Common Stock
during the deferral period, while the RSUs remain unpaid, and shall be credited on the date such
dividends are actually paid. Upon crediting, a Non-Employee Director’s dividend equivalents shall
be immediately converted to additional RSUs (whole and/or fractional, as appropriate) by dividing
the aggregate amount of dividend equivalents credited to the Non-Employee Director on a day by the
Fair Market Value of a share of PBG Common Stock on such day,

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or if such day is not a trading day on the NYSE, on the immediately preceding trading day.
Additional RSUs credited under this Section 7(e) are in turn entitled to be credited with dividend
equivalents, and a Non-Employee Director’s aggregate additional RSUs shall be paid out at the same
time as the underlying RSUs to which they relate. Any cumulative fractional RSU remaining at such
time shall be rounded up to a whole RSU prior to its settlement in PBG Common Stock.

     (f) Each RSU award shall be evidenced by a written agreement setting forth the terms and
conditions thereof, which terms and conditions shall not be inconsistent with those set forth in
this Plan.

8. Non-Executive Chair Annual Award

     (a) Under the Plan, a Non–Employee Director serving as Non-Executive Chair of the Board (the
“Chair”) shall receive an additional annual formula grant of restricted stock units (“Chair RSUs”).
Such grant shall be made upon commencement of services as Chair, unless otherwise determined by the
Board; and annually, thereafter, on the anniversary of formal commencement of services as Chair,
except as otherwise determined by the Board (the “Chair RSU Grant Date”). When the Chair’s RSUs
become payable, they shall be settled in shares of PBG Common Stock with the Chair receiving one
share of PBG Common Stock for each Chair RSU.

     (b) The number of Chair RSUs to be included in each Chair RSU award shall be determined by
dividing the Chair RSU Grant Amount (as defined below) by the Fair Market Value of a share of PBG
Common Stock on the Chair RSU Grant Date or, if such day is not a trading day on the NYSE, on the
immediately preceding trading day. The Chair RSU Grant Amount shall mean $100,000. The number of
Chair RSUs so determined shall be rounded up (if necessary) to the nearest number of whole RSUs.

     (c) Chair RSUs shall vest on the Chair RSU Grant Date. Notwithstanding the foregoing, payment
of the Chair RSUs shall be deferred until such time as the Chair ceases to serve as a director of
PBG for any reason. The Chair RSUs shall be paid as of the beginning of the calendar quarter
following the Chair’s Permanent Disability, Separation from Service with PBG or death.

     (d) During any period that the payment of Chair RSUs is deferred, the Chair shall be entitled
to be credited with dividend equivalents. Dividend equivalents shall equal the dividends actually
paid with respect to a corresponding amount of PBG Common Stock during the period payment of the
Chair RSUs is deferred, and shall be credited on the date such dividends are actually paid. Upon
crediting, the Chair’s dividend equivalents shall be immediately converted to additional RSUs
(whole and/or fractional, as appropriate) by dividing the aggregate amount of dividend equivalents
credited to the Chair on a day by the Fair Market Value of a share of PBG Common Stock on such day,
or if such day is not a trading day on the NYSE, on the immediately preceding trading day.
Additional RSUs credited under this Section 8(d) are in turn entitled to be credited with dividend
equivalents, and the Chair’s aggregate additional RSUs shall be paid out at the same time as the
underlying Chair RSUs to which they relate. Any cumulative fractional RSU remaining at such time
shall be rounded up to a whole RSU prior to its settlement in PBG Common Stock.

     (e) Each Chair RSU award shall be evidenced by a written agreement setting forth the terms and
conditions thereof, which terms and conditions shall not be inconsistent with those set forth in
this Plan.

9. Shares of Stock Subject to the Plan

     The shares that may be delivered under this Plan shall not exceed an aggregate of 300,000
shares of PBG Common Stock, adjusted, if appropriate, in accordance with Section 11 below; provided
that any shares authorized but not delivered under the Prior Plan (as hereinafter defined) shall be
available for delivery under this Plan in addition to the above mentioned 300,000 shares. The
shares granted or delivered under the Plan may be newly issued shares of Common Stock or treasury
shares.

10. Deferral of Initial Awards

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     (a) Non-Employee Directors may make an advance, one-time election to defer into PBG phantom
stock units all of the shares of Restricted Stock otherwise granted under Section 5. Any such
election shall be made at least one day prior to the grant date of such Restricted Stock. The
deferral period shall equal the Non-Employee Director’s period of service as a director of PBG
(i.e., such deferral period shall end in the event of the Non-Employee Director’s Permanent
Disability, Separation from Service or death), and such deferral shall be paid as of the beginning
of the calendar quarter following such Separation from Service. Non-Employee Directors who elect
to defer receipt of such shares shall be credited on the grant date with a number of phantom stock
units equal to that number of shares of Restricted Stock which they would have received had they
not elected to defer. During the deferral period, the value of the phantom stock units will
fluctuate based on the market value of PBG Common Stock. At the end of the deferral period, all
payments of deferred awards shall be made in shares of PBG Common Stock (one share of PBG Common
Stock for each PBG phantom stock unit), unless the Board in its discretion decides to make the
distribution in cash or in a combination of cash and shares of PBG Common Stock. To the extent
that a distribution is made in cash, in whole or in part, the Non-Employee Directors will receive
the aggregate value of the PBG phantom stock units credited to them which are to be paid in cash.
The value of PBG phantom stock units will be determined by multiplying the number of PBG phantom
stock units which are to be paid in cash by the Fair Market Value of PBG Common Stock on the last
NYSE trading day of the deferral period.

     (b) During the deferral period, the Non-Employee Director whose Restricted Stock is deferred
as phantom stock units shall be entitled to be credited with dividend equivalents. Dividend
equivalents shall equal the dividends actually paid with respect to a corresponding amount of PBG
Common Stock during the deferral period and shall be credited on the date such dividends are
actually paid. Upon crediting, a Non-Employee Director’s dividend equivalents shall be immediately
converted to additional phantom stock units (whole and/or fractional, as appropriate) by dividing
the aggregate amount of dividend equivalents credited to the Non-Employee Director on a day by the
Fair Market Value of a share of PBG Common Stock on such day, or if such day is not a trading day
on the NYSE, on the immediately preceding trading day. Additional phantom stock units credited
under this Section 10(b) are in turn entitled to be credited with dividend equivalents, and a
Non-Employee Director’s aggregate additional phantom stock units shall be paid out at the same time
as the underlying phantom stock units to which they relate. Any fractional phantom stock unit
remaining at such time shall be rounded up to a whole phantom stock unit prior to its settlement in
PBG Common Stock.

11. Dilution and Other Adjustments

     The number and kind of shares of PBG Common Stock issuable under the Plan, or which may or
have been awarded to any Non-Employee Director, shall be adjusted proportionately by the Board, as
may be, and to such extent (if any), determined to be appropriate and equitable by the Board, to
reflect stock dividends, stock splits, recapitalizations, mergers, consolidations, combinations or
exchanges of shares, any spin off or other distribution of assets of the Company to its
shareholders, any partial or complete liquidation, or other similar corporate changes. Such
adjustment shall be conclusive and binding for all purposes of the Plan.

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12. Effect of Misconduct

     Notwithstanding anything to the contrary herein, if a Non-Employee Director commits
“Misconduct,” he or she shall forfeit all rights to any unexercised Options, any RSUs and
Restricted Stock, as well as any phantom stock units credited to him or her under Section 10. For
purposes of this Plan, Misconduct occurs if a majority of the Board determines that a Non-Employee
Director has: (a) engaged in any act which is considered to be contrary to the Company’s best
interests; (b) violated the Company’s Code of Conduct or engaged in any other activity which
constitutes gross misconduct; (c) engaged in unlawful trading in the securities of PBG or of any
other company based on information gained as a result of his or her service as a director of PBG;
or (d) disclosed to an unauthorized person or misused confidential information or trade secrets of
the Company.

13. Withholding Taxes and Code Section 409A

     (a) Except to the extent other arrangements are made by a Non-Employee Director that are
satisfactory to the Company, the Company shall withhold a number of shares of PBG Common Stock
otherwise deliverable having a Fair Market Value sufficient to satisfy the minimum withholding
taxes (if any) required by federal, state, local or foreign law in respect of any award.

     (b) At all times, this Plan shall be interpreted and operated (i) in accordance with the
requirements of Section 409A with respect to deferred compensation that is subject to Code Section
409A, and (ii) to maintain the exemption from Code Section 409A of stock option awards and
undeferred Restricted Stock (collectively, “Excepted Awards”), and (iii) to preserve the status of
deferrals made prior to the effective date of Code Section 409A (“Prior Deferrals”) as exempt from
Section 409A, i.e., to preserve the grandfathered status of Prior Deferrals. Thus, for example, a
Non-Employee Director’s ability to defer a Pro-Rated RSU Grant is conditioned on the Non-Employee
Director not having been previously eligible for a PBG deferral plan of the same type. In
addition, if a Non-Employee Director is determined to be a specified employee (within the meaning
of Code Section 409A(a)(2)(B)(i)), any payment of deferred compensation subject to Section 409A
made based on Separation from Service with PBG shall not be made until the beginning of the
calendar quarter that occurs at least six months after such Separation from Service with PBG.
Similarly, any election that must be made at least one day prior to a specified date must be
effectively made and irrevocable, under the applicable requirements of Code Section 409A, by the
day preceding such specified date.

14. Resale Restrictions, Assignment and Transfer

     Options (unless the Board of Directors specifically determines otherwise), RSUs, Chair RSUs,
Restricted Stock and PBG phantom stock units may not be sold, transferred or assigned, except in
the event of the Non-Employee Director’s death, in which case his or her Options, Restricted Stock
or PBG phantom stock units may be transferred by will or by the laws of descent and distribution.
All restrictions on Restricted Stock granted to a Non-Employee Director shall lapse upon his or her
death. Options may be exercised by the decedent’s personal representative, or by whomever inherits
the Options, at any time, through and including their original expiration date.

     Once awarded, the shares of PBG Common Stock received by Non-Employee Directors may be freely
transferred, assigned, pledged or otherwise subjected to lien, subject to restrictions imposed by
the Securities Act of 1933, as amended, and subject to the trading restrictions imposed by Section
16 of the Securities Exchange Act of 1934, as amended. PBG phantom stock units may not be
transferred or assigned except by will or the laws of descent and distribution.

15. Funding

     The Plan shall be unfunded. PBG shall not be required to establish any special or separate
fund or to make any other segregation of assets to assure the payment of any award under the Plan.

6

 

16. Supersession of Prior Plan

     This Plan superseded The PBG Directors’ Stock Plan of 1999 (the “Prior Plan”) when
shareholders approved this Plan on May 23, 2001. As of that date, all awards granted under the
Prior Plan became subject to the terms of this Plan and all shares that were authorized but not
delivered under the Prior Plan became available for delivery under this Plan, in addition to those
shares authorized for issuance pursuant to Section 8 of this Plan. No awards were made under the
Prior Plan after May 23, 2001.

17. Duration, Amendments and Terminations

     The Board of Directors may terminate or amend the Plan in whole or in part; provided,
however, that the Plan may not be amended more than once every six (6) months, other than
to comport with changes in the Code or the rules and regulations thereunder; provided
further, however, that no such action shall have a material adverse effect on any
rights or obligations with respect to any awards theretofore granted under the Plan, unless
consented to by the recipients of such awards (unless the amendment is required to comply with Code
Section 409A in which case, the amendment shall be effective without consent of the recipient
unless the recipient expressly denies consent to such amendment in writing); and provided
further, however, that with any amendment and the termination of the Plan shall neither
violate Code Section 409A nor adversely affect the exemption of Excepted Awards or the grandfather
of the Prior Deferrals. The Plan shall continue until terminated.

7

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