Document:

Retention Agreement

 Exhibit 10.64 
 Execution Copy 
 RETENTION AGREEMENT (this
“Agreement”) dated as of October 2, 2009, between PepsiCo, Inc., a North Carolina corporation (the “Company”), and Eric J. Foss (the “Executive”). 

WHEREAS, on August 3, 2009, (i) the Company, The Pepsi Bottling Group, Inc., (“PBG”),
and Pepsi-Cola Metropolitan Bottling Company, Inc., a wholly-owned subsidiary of the Company (“Metro”) entered into an Agreement and Plan of Merger (the “PBG Merger Agreement”), pursuant to which PBG will be merged
with and into Metro with Metro continuing as the surviving corporation and a wholly owned subsidiary of the Company (the “PBG Merger”) and (ii) the Company, PepsiAmericas, Inc. (“PAS”), and Metro entered into
an Agreement and Plan of Merger pursuant to which PAS will merge with and into Metro with Metro continuing as the surviving corporation and a wholly owned subsidiary of the Company (the “PAS Merger,” together with the PBG Merger,
the “Mergers”); and 
 WHEREAS the Company has determined that it is in the best
interests of the Company and its shareholders to assure that the Company will have the dedication of the Executive following the PBG Merger with respect to PepsiCo North American Bottling Operations (as defined below); 

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, and
intending to be legally bound hereby, the parties hereto agree as follows: 
 SECTION 1.
Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below: 
 (a)    “Affiliate(s)” means, with respect to any specified Person, any other Person that, directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, such specified Person. 

(b)    “Board” means the Board of the Directors of the Company or any committee
thereof. 
 (c)    “Cause” means the occurrence of any one of the
following: 
 (i)    the Executive’s continued and willful failure,
for at least 14 days following written notice from the Company, to perform substantially the Executive’s employment duties, except as a result of incapacity due to physical or mental illness; 

(ii)    the Executive’s gross negligence or willful misconduct in the
performance of the Executive’s employment duties that results in material harm to the Company; 
 (iii)    the Executive’s conviction of, or plea of guilty or nolo contendere to, any felony; 

 (iv)    the Executive’s
commission of an act of deceit or fraud in connection with the performance of the Executive’s employment duties intended to result in personal and unauthorized enrichment of the Executive at the Company’s expense; or 

(v)    the Executive’s material breach of a material obligation of the
Executive to the Company which, if correctable, remains uncorrected for 30 days following written notice of such breach by the Company to the Executive. 

For purposes of this provision, no act or failure to act on the part of the Executive shall be considered
“willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company. 

(d)    “Code” means the Internal Revenue Code of 1986, as amended from time to
time, and the regulations promulgated thereunder. 
 (e)    “Disability”
means the Executive’s absence for a period of 180 consecutive business days as a result of incapacity due to a physical or mental condition, illness or injury which is determined to be total and permanent by a physician mutually acceptable to
the Company and the Executive or the Executive’s legal representative (such acceptance not to be unreasonably withheld) after such physician has completed an examination of the Executive; provided, however, that if an amount
payable pursuant to this Agreement constitutes deferred compensation (within the meaning of Section 409A of the Code) and payment of such amount is intended to be triggered pursuant to Section 409A(a)(2)(A)(ii) of the Code by the
Executive’s disability, such term shall mean that the Executive is considered “disabled” within the meaning of Section 409A of the Code; provided further that Executive shall make himself available for such examination
upon the reasonable request of the Company, and the Company shall be responsible for the cost of such examination. 
 (f)    “Employment Period” means the period of the Executive’s employment hereunder commencing on the Effective Date and, unless earlier terminated in accordance
with Section 4, ending on the second anniversary thereof. 
 (g)    “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor statute thereto. 
 (h)    “Excise Tax” means the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such tax.

 (i)    “Fiscal Year” means a fiscal year of the Company. 

(j)    “Payment” means any payment, right, benefit or distribution (or combination
thereof) by the Company, any of its Affiliates or any trust established by the Company or its Affiliates, to or for the benefit of the Executive, whether paid, payable, distributed, distributable or provided pursuant to this Agreement or otherwise,
including any 

  
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payment, benefit or other right that constitutes a “parachute payment” within the meaning of Section 280G of the Code. 

(k)    “PBG Equity Incentive Plans” means any equity-based or equity-related plans,
practices, policies or programs of PBG or its Affiliates (not including the Company or any of its Subsidiaries prior to the Effective Date) in effect prior to the Effective Date, including the PBG 2004 Long-Term Incentive Plan, the PBG 2002
Long-Term Incentive Plan, the PBG 2000 Long-Term Incentive Plan, the Pepsi Bottling Group, Inc. 1999 Long-Term Incentive Plan, and the PBG Stock Incentive Plan, or any award agreements thereunder. 

(l)    “PepsiCo North American Bottling Operations” or “PNABO”
means the unit of the Company comprising the bottling businesses of the Company or any Affiliates in Canada, Mexico and the United States that were conducted by PAS and PBG or any of their Affiliates (not including the Company or any of its
Subsidiaries) in Canada, Mexico and the United States immediately prior to the PAS Merger and PBG Merger, respectively. 
 (m)    “Person” means any individual, corporation, partnership, group, association or other entity. 

(n)    “Protection Period” means the period commencing on the Effective Date and
ending on the second anniversary thereof. 
 (o)    “Qualifying
Termination” means any termination of the Executive’s employment (i) by the Company, for any reason other than death or Disability, that is effective (or with respect to which the Executive is given written notice) during the
Protection Period or (ii) by the Executive, for any reason, that is effective (or with respect to which the Executive has given written notice) during the Protection Period. 

(p)    “Subsidiary” means any entity in which the Company, directly or indirectly,
possesses 50% or more of the total combined voting power of all classes of its stock. 

(q)    “Synergy(ies)” means the integration-driven cost savings achieved by PNABO
and the Company in the United States and Canada as a result of the Mergers, which savings shall be determined by the Company in good faith and which savings shall exclude the costs incurred by the Company to achieve such savings. 

(r)    “Synergy Target (Year 1)” means the amount to be established by the Board
and communicated to the Executive that represents the total Synergies target that the Board expects the Executive to achieve for the period from the Effective Date to the first anniversary of the Effective Date. 

(s)    “Synergy Target (Years 1 and 2 Combined)” means the amount to be established
by the Board and communicated to the Executive that that represents the total Synergies target that the Board expects the Executive to achieve for the period from the Effective Date to the second anniversary of the Effective Date. 

  
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 (t)    “Termination Date” means the
date (if any) on which the termination of the Executive’s employment, in accordance with the terms of this Agreement, is effective. 
 SECTION 2. Effectiveness and Term. (a) This Agreement shall become effective as of the date on which the Effective Time (as defined in the PBG Merger Agreement) of the PBG Merger occurs
(the “Effective Date”). In the event that the Effective Time shall not occur or the Executive ceases for any reason to be employed by PBG through the Effective Date, this Agreement shall be null and void ab initio and of no further
force and effect. At the Effective Time, the Retention Agreement by and between PBG and the Executive, dated as of May 18, 2009, as the same may have been amended (the “Prior Retention Agreement”) and any and all liabilities,
rights and obligations of all parties thereunder shall automatically terminate in their entirety without the requirement of any action of any party to the Prior Retention Agreement and the Executive’s rights to any payments or benefits
thereunder shall automatically be waived and forfeited by the Executive. This Agreement shall remain in effect until the second anniversary of the Effective Date. 

SECTION 3. Terms of Employment. (a) Position and Duties. (i) During the Employment Period,
the Executive shall serve the Company as the chief executive officer of PNABO, with such duties and responsibilities as are consistent with such position, and shall report directly and exclusively to the Chief Executive Officer of the Company,
provided that the Executive shall report to the Board from time to time as the Board may request. The Chief Executive Officer of the Company shall approve all the Executive’s organization design decisions and the appointment of
all executives who directly report to the Executive. Any changes to compensation and benefits arrangements covering any employees of PNABO shall be subject to approval by the Board or the appropriate officer of the Company. The Executive’s
responsibilities shall include active participation in all senior executive team meetings and functions of the Company, as directed by the Chief Executive Officer of the Company. The Executive shall also serve on a bottling operations advisory board
that will be established to guide the integration activities for the PAS and PBG businesses through at least the first anniversary of the Effective Date and that will be headed by the Chief Executive Officer of the Company. This advisory committee
will meet at least every eight weeks for at least two hours per meeting. 

(ii)    During the Employment Period, and excluding any periods of vacation and sick
leave to which the Executive is entitled, the Executive agrees to devote substantially all of his business attention and time to the business and affairs of the Company and its affiliated companies and, to the extent necessary to discharge the
duties and responsibilities assigned to the Executive hereunder, to use the Executive’s reasonable best efforts to perform faithfully and efficiently such duties and responsibilities. Notwithstanding the foregoing, Executive may serve on
corporate, civic, industry and charitable boards or committees and manage his personal investments and affairs; provided that such activities, either individually or collectively, do not materially interfere with the performance of his
duties and responsibilities hereunder; and, provided, further, that the Executive’s service on any corporate, civic, industry or charitable boards or committees other than those on which the Executive currently serves, which are
set 

  
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forth on Exhibit A, shall be subject to the Company’s prior approval pursuant to the policy applicable to senior executives of the Company. 

(b)    Compensation. As compensation for the Executive’s services hereunder during the
Employment Period, the Executive shall be eligible to receive the compensation set forth in this Section 3(b). 
 (i)    Base Salary. During the Employment Period, the Executive shall receive an annual base salary (“Annual Base Salary”) at a rate of not less than $1,000,000
payable in accordance with the Company’s normal payroll policies. 

(ii)    Annual Bonus. In the event that the Effective Date occurs prior to
the determination of the Executive’s 2009 annual bonus, the 2009 annual bonus will be determined and paid in accordance with the terms of PBG’s annual incentive plan in effect immediately prior to the Effective Date based on the attainment
of the pre-existing performance goals as determined in the reasonable, good faith judgment of the Company. With respect to each Fiscal Year that concludes during the Employment Period commencing with the 2010 Fiscal Year, the Executive shall be
eligible to earn a target annual bonus equal to 150% of the Executive’s Annual Base Salary (the “Target Annual Bonus”). The actual annual bonus for any Fiscal Year commencing with the 2010 Fiscal Year, which could be higher or
lower than the Target Annual Bonus, shall be based on attainment of performance goals established each year by the Company under the annual incentive compensation plan of the Company applicable to senior executives; provided, however, that, in the
event that the Effective Date occurs after the Executive’s 2010 annual bonus target and related performance goals have been established by PBG, the Company shall have the discretion to make adjustments to such performance goals or to establish
new performance goals for the 2010 annual bonus and the total annual bonus target for 2010 (before and after the Effective Date) shall not exceed the Target Annual Bonus and, provided, further, that the 2010 annual bonus (including
with respect to periods during 2010 before and after the Effective Date) shall not exceed 100% of the Target Annual Bonus if the Synergy Target (Year 1) has not been achieved. 

(iii)    Annual Equity Awards. For each Fiscal Year during the Employment
Period, the Executive shall be eligible for an annual grant of equity compensation awards having a target aggregate value of not less than $2,100,000 (the “Annual Equity Awards”); provided that the Executive is actively
employed on the grant date for such annual grant. Half the value of each Annual Equity Award shall be granted in the form of stock options and half the value of each Annual Equity Award shall be granted in the form of performance stock units (the
value of each such award to be determined as of the grant date of the award in accordance with the Company’s normal valuation method for equity compensation grants), and each Annual Equity Award shall otherwise be made on terms and conditions
no less favorable than those provided to similarly situated executives of the Company. Notwithstanding the foregoing, the Annual Equity Award for the 2010 Fiscal Year (the “Initial Equity Award”) shall vest on the second anniversary
of the grant date; the performance stock units subject to the Initial Equity Award shall be settled as soon as practicable thereafter based on and subject to 

  
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achievement of the performance targets, as determined by the Board; and the stock options subject to the Initial Equity Award shall be exercisable from the second anniversary of the grant date
for the remainder of the full ten (10)-year term, subject to the terms of the PepsiCo, Inc. 2007 Long-Term Incentive Plan or any successor plan. In the event that the Executive’s employment is terminated by the Company without Cause prior to
the second anniversary of the Effective Date or the Executive voluntarily resigns his employment on or after the first anniversary of the Effective Date but before the second anniversary of the Effective Date, a pro rata portion of the Initial
Equity Award will vest in proportion to the Executive’s active service from the Effective Date to the Termination Date over the period from the Effective Date to the second anniversary thereof, and the remaining portion of the Initial Equity
Award shall be forfeited; provided, however, the vested performance stock units subject to the Initial Equity Award shall be settled as soon as practicable following the second anniversary of the grant date, net of applicable tax
withholding, based on and subject to achievement of the applicable performance targets, as determined by the Board, and the vested stock options subject to the Initial Equity Award shall first be exercisable on the second anniversary of the grant
date, in each case, regardless of any such earlier pro rata vesting and shall remain exercisable for the remainder of the full ten (10)-year term, subject to the terms of the PepsiCo, Inc. 2007 Long-Term Incentive Plan or any successor plan. For the
avoidance of doubt, if the Executive voluntarily resigns prior to the first anniversary of the Effective Date or the Executive is terminated by the Company as a result of Cause, no pro rata vesting of the Initial Equity Award shall occur and the
entire Initial Equity Award shall be forfeited. In the event of termination of employment as a result of death or Disability, the Annual Equity Awards shall vest, be exercisable or forfeited in accordance with the terms and conditions of the
agreements evidencing the Awards; provided such treatment shall be no less favorable to the Executive (or his beneficiaries) than the treatment that would apply if the Executive’s employment termination was due to his voluntary resignation
instead of death or Disability. 
 (iv)    Special Integration Equity
Award. The Executive shall receive an award of performance stock units having a target aggregate value of $2,500,000 (the “Integration Equity Award”). The grant date for the Integration Equity Award shall be the first business
day of the first calendar quarter that begins on or after the Effective Date and the number of performance stock units subject to the Integration Equity Award shall be determined by dividing the target aggregate value of the Integration Equity Award
by the average of the high and low sale prices of a share of the Company’s common stock on The New York Stock Exchange on the grant date (rounded up to the nearest quarter). A portion of the Special Integration Award shall vest on the first
anniversary of the Effective Date and shall be settled, net of applicable tax withholding, as soon as practicable thereafter based on and subject to the level of achievement of the Synergy Target (Year 1) pursuant to the performance schedule
communicated to the Executive by the Company, as determined by the Board, and a portion of the Integration Equity Award shall vest (on a cumulative basis) on the second anniversary of the Effective Date and be settled, net of applicable tax
withholding and net of any portion of the Integration Equity Award that has previously been settled, as soon as practicable 

  
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thereafter based on and subject to the level of achievement of the Synergy Target (Years 1 and 2 Cumulative) pursuant to the performance schedule communicated to the Executive by the Company, as
determined by the Board. The actual amount of the Integration Equity Award that vests on the first anniversary of the Effective Date may be higher or lower than 50% of the Integration Equity Award and the amount that vests on the second anniversary
of the Effective Date may be lower (on a cumulative basis) than 100% of the Integration Equity Award, based on the level of achievement of the Synergy Target (Year 1) and Synergy Target (Years 1 and 2 Cumulative) as of such dates, respectively, as
determined by the Board based on the performance schedule communicated to the Executive by the Company. In the event that either (I) the Executive is terminated by the Company without Cause prior to the second anniversary of the Effective Date
or (II) the Executive voluntarily resigns his employment or his employment terminates due to death or Disability on or after the first anniversary of the Effective Date but before the second anniversary of the Effective Date, the portion of the
Integration Equity Award that would otherwise vest and be settled in accordance with the foregoing based on the level of achievement of the Synergy Target (Year 1) (if the Terminate Date occurs prior to the first anniversary of the Effective Date by
reason of termination by the Company without Cause) or the Synergy Target (Years 1 and 2 combined) (if the Termination Date occurs between the first and second anniversaries of the Effective Date) shall be prorated based on the proportion of the
Executive’s active service during the relevant performance year, and the remaining outstanding portion of the Integration Equity Award shall be forfeited. For the avoidance of doubt, if the Executive voluntarily resigns prior to the first
anniversary of the Effective Date or the Executive is terminated by the Company as a result of Cause, no pro rata vesting of the Integration Equity Award shall occur and the entire Integration Equity Award shall be forfeited. 

(v)    Converted PBG Equity Awards. Upon the Effective Date, all outstanding
equity-based, equity-related and other long-term incentive awards (including restricted stock units granted pursuant to the Strategic Leadership Awards (if any)) then held by the Executive that were granted pursuant to the PBG Equity Incentive Plans
prior to the Effective Date (the “Converted Equity Awards”) (A) shall be converted into equity-based awards of the Company in accordance with the terms of the PBG Merger Agreement, (B) to the extent subject to
performance-based vesting criteria (including restricted stock units granted pursuant to the PBG Strategic Leadership Awards (if any)), shall be deemed to have been earned at the target performance level and (C) to the extent then unexercisable
or unvested, shall automatically and immediately become fully vested, exercisable or settled, as applicable; provided that, in the event that any such award constitutes “deferred compensation” (within the meaning of
Section 409A) and the exercise, payment or settlement of such award pursuant to this Section 3(b)(v) would result in the imposition of additional taxes or penalties under Section 409A, such award shall automatically and immediately
cease to be forfeitable but shall not be exercisable, payable or settleable, as the case may be, until the earliest date on which such award would otherwise be exercisable, payable or settleable in accordance with its terms and without the
imposition of such additional taxes or penalties, all as reasonably determined 

  
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in good faith by the Company. Except as set forth in this Section 3(b)(v), the terms and conditions of the Converted Equity Awards in effect immediately prior to the Effective Time shall
remain in full force and effect. 
 (vi)    Stock Ownership
Requirement. During the Employment Period, the Executive shall at all times own a number of shares of the Company’s common stock equal to six (6) times the Annual Base Salary, consistent with the stock ownership level applicable to
similarly situated senior executives under the Company’s stock ownership guidelines. The following equity interests shall count towards satisfying the foregoing ownership requirement: (I) shares of the Company’s common stock held
directly by the Executive or his immediate family members, (II) shares of the Company’s common stock allocated to the Executive’s account in the 401(k) plan of the Company or its Subsidiaries or (III) share equivalents credited to the
Executive’s account under the PBG Executive Income Deferral Program or its successor (the “EID Plan”). 
 SECTION 4. Termination of Employment. (a) Qualifying Termination. In the event of a Qualifying Termination: 

(i)    Severance Pay. The Company shall pay the Executive an amount equal to
(I) two (the “Multiple”) times the sum of (A) the Executive’s Annual Base Salary and (B) the Executive’s Target Annual Bonus, in a single lump-sum cash payment payable within ten days after the date the
release described in Section 4(a)(viii) becomes effective and irrevocable (the “Release Effective Date”) (or such later date as may be required to comply with the provisions of Section 409A of the Code) plus
(II) interest at the Default Rate on the amount determined under (I) for the period beginning on the Effective Date and ending on the date the cash payment pursuant to this Section 4(a)(i) is due; provided, however, that
such cash payment is paid in lieu of, and the Executive hereby waives the right to receive, any other cash severance payment relating to salary or bonus continuation the Executive is otherwise eligible to receive upon termination of employment under
any severance plan, practice, policy or program of PBG, any Affiliate of PBG, the Company or any Subsidiary or under any agreement between PBG or the Company and the Executive. 

(ii)    Prorated Annual Bonus. With respect to the annual bonus for which the
Executive was eligible under the Company’s annual incentive plan for the Fiscal Year in which the Termination Date occurs, the Company shall pay to the Executive an amount equal to the product of (A) the Executive’s Target Annual
Bonus and (B) a fraction, the numerator of which is the number of days elapsed in the Fiscal Year in which the Termination Date occurs through the Termination Date, and the denominator of which is 365, in a single lump-sum cash payment within
ten business days after the Release Effective Date (or such later date as may be required to comply with the provisions of Section 409A of the Code). 

(iii)    Continued Welfare Benefits. During the 24-month period following the
Termination Date, the Company shall permit the Executive to purchase continued medical, dental and vision coverage for the Executive and the Executive’s 

  
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eligible spouse and dependents (if any) under the Company’s insurance plans pursuant to the Consolidated Omnibus Reconciliation Act of 1985, as amended (“COBRA”). The
Company shall reimburse the Executive for the Executive’s purchase of such continued coverage at the rate of 160% of the Executive’s cost of such continued coverage; provided, however that, in the event that the release
described under Section 4(a)(viii) does not become effective prior to the 45th day after the Termination Date, the Company shall cease to have any obligation to provide any such reimbursements; and provided, further,
however, that any continued coverage pursuant to this Section 4(a)(iii) shall cease upon the Executive’s becoming eligible for comparable coverage from a subsequent employer. Any period of continued coverage pursuant to this
Section 4(a)(iii) shall be recognized for purposes of satisfying the Company’s obligations under COBRA. 
 (iv)    Outplacement Counseling. During the number of years following the Termination Date equal to 50% of the Multiple, the Executive shall be entitled to reimbursement from
the Company, upon the Executive’s presentation to the Company of a written invoice from the applicable vendor requesting payment, for the cost of executive level outplacement services offered by a vendor selected by the Executive;
provided that the amount of such reimbursements shall not exceed $50,000 per year. 

(v)    Early Retirement Benefits. In the event that, as of the Termination
Date, the Executive has not attained an age of at least 55, the Executive shall be eligible to receive the Special Early Retirement Benefits set forth on Exhibit B hereto. In the event that, as of the Termination Date, the Executive has
(A) been credited with 10 years of service under the Company’s Salaried Employees Retirement Plan and (B) attained an age of at least 55, the Executive shall be eligible to receive early retirement benefits as provided for under the
terms of the Company’s benefit plans. 
 (vi)    Accrued
Rights. The Executive shall be entitled to (A) payments of any unpaid annual base salary or other amount earned or accrued through the Termination Date and for reimbursement of any unreimbursed business expenses incurred through the
Termination Date, (B) the Executive’s annual bonus (determined in accordance with the applicable Company bonus plan) for the year immediately prior to the year in which the Termination Date occurs in the event that the annual bonus for
such prior year has not been paid to the Executive by the Termination Date, (C) any payments or benefits explicitly set forth in any other agreements, benefit plans, practices, policies and programs (including the Company’s vacation
policies) in which the Executive participates and (D) any other rights the Executive may have to welfare or fringe benefits (other than severance benefits) under any other agreement or arrangement between the Executive and the Company or any
Subsidiary (the rights to such payments, the “Accrued Rights”). For the avoidance of doubt, the Executive shall not be permitted to defer or contribute any amounts under the EID Plan after the Termination Date; provided that
the Executive’s account balances under the EID Plan shall be paid to the Executive in accordance with the terms thereunder. 
 (vii)    Release of Claims. Notwithstanding any provision of this Agreement to the contrary, the Company shall not be obligated to make any payments

  
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described in Section 4(a)(i) through (v), unless, on or before the 45th day after the Termination Date, the Executive has executed and delivered a Separation Agreement and Release in the
form of Exhibit C hereto and such release has become effective and irrevocable in accordance with its terms prior to such 45th day. 
 (b)    Non-Qualifying Termination. In the event of any termination of the Executive’s employment that is not a Qualifying Termination (a “Non-Qualifying
Termination”) and that occurs within the Protection Period, the Executive (and, in the case of the Executive’s death, the Executive’s estate) shall not be entitled to any additional payments or benefits from the Company under
Section 4(a), other than the Accrued Rights and the payments and benefits pursuant to Section 4(a)(i), (ii) and (v). For the avoidance of doubt, the Executive shall not be entitled to any payments or benefits pursuant to
Section 4(a) in the event of any termination (either a Qualifying Termination or a Non-Qualifying Termination) occurring after the Protection Period. 
 (c)    Termination Procedures. The following procedures shall be applicable to any termination of the Executive’s employment during the Protection Period: 

(i)    Termination for Cause. The Company shall provide prompt written notice
to the Executive of the facts that the Company believes in good faith give rise to Cause. The termination of the Executive’s employment for Cause shall not be effective unless and until there shall have been delivered to the Executive a copy of
a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board at a meeting of the Board called and held for such purpose (after the Executive is given a reasonable opportunity, together with
counsel, to be heard before the Board), finding that, in the good faith opinion of the Board, the Executive is guilty of the conduct that constitutes Cause and specifying the particulars thereof in detail. Any termination for Cause shall be
effective as of the date designated in such Board resolution. 

(ii)    Termination by the Company without Cause; Voluntary Termination by the
Executive. The Executive’s employment with the Company may be terminated by the Executive voluntarily or by the Company without Cause at any time and for any reason; provided, however, that the Executive shall be required to
give the Company at least 30 days’ advance written notice of any such termination by the Executive and the Company shall be required to give to the Executive at least 30 days’ advance written notice of any such termination by the Company.

 (iii)    Death; Disability. The Executive’s termination of
employment as a result of the Executive’s death shall be effective upon Executive’s death. The Executive’s termination of employment due to Disability shall be effective on the date that a final determination of Disability has been
made. 
 SECTION 5. Parachute Payments. In the event that the aggregate amount of any Payments that
could be considered “parachute payments” (as defined in Section 280G of the Code) (such payments, the “Parachute Payments”) exceeds the greatest amount of Parachute

  
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Payments that may be paid, provided or delivered to the Executive without giving rise to any liability for the Excise Tax, then the aggregate amount of Parachute Payments to which the Executive
is entitled shall be reduced to an amount equal to the amount which produces the greatest after-tax benefit to the Executive after taking into account any Excise Tax to be payable by the Executive. For the avoidance of doubt, this provision will
reduce the amount of Parachute Payments otherwise payable to the Executive, if doing so would place the Executive in a better net after-tax economic position as compared with not doing so (taking into account the Excise Tax payable in respect of
such Parachute Payments). The Company shall reduce or eliminate the Parachute Payments by first reducing or eliminating the portion of the Parachute Payments that are payable in cash and then by reducing or eliminating the non-cash portion of the
Parachute Payments, in each case, in reverse order beginning with payments or benefits which are to be paid the furthest in the future. This Section 5 shall take precedence over the provisions of any other plan, arrangement or agreement
governing the Executive’s rights and entitlements to any Payment. All determinations to be made under this Section 5 shall be made, at the Company’s expense, by a nationally recognized certified public accounting firm selected by the
Company (other than any such firm that serves as the Company’s auditor or otherwise has a material recurring business relationship with the Company), and written copies thereof shall be promptly delivered to the Executive. For the avoidance of
doubt, this Section 5 shall not be applicable to the extent that the Executive is not subject to the Excise Tax by virtue of the Executive’s tax residence. 

SECTION 6. Indemnification and Insurance. Commencing upon the Effective Date and for so long thereafter as
the Executive could be subject to liability, the Company shall keep in place an officers’ and directors’ liability insurance policy (or policies) providing comprehensive coverage to the Executive for claims relating to the Executive’s
service as director, officer or employee of the Company or its Affiliates, at a level that is no less favorable to the Executive (e.g., with respect to scope, amounts and deductibles) than the level in effect with respect to the Executive at the
Effective Date or, if more favorable to the Executive, the level provided to then-current directors and officers of the Company and its Affiliates. The Company shall indemnify the Executive to the fullest extent permitted by the Company’s
Amended and Restated Articles of Incorporation, any officer indemnification agreement between the Executive and the Company and the general laws of the State of North Carolina and shall provide indemnification expenses in advance to the extent
permitted thereby. The indemnification and advance of expenses provided by the Company pursuant to this Agreement shall not be deemed exclusive of any other rights to which the Executive may be entitled under any law (common or statutory), or any
agreement, vote of stockholders or disinterested directors or other provision that is consistent with law, both as to action in his or her official capacity and as to action in another capacity while holding office or while employed or acting as
agent for the Company, and such rights shall continue in respect of all events occurring while the Executive was a director of or employed by the Company that continue after the Executive has ceased to be a director of or employed by the Company,
and shall inure to the benefit of the estate, heirs, executors and administrators of the Executive. The Executive shall also benefit from the director and officer indemnification and insurance coverage specified in Section 7.04 of the PBG
Merger Agreement. 

  
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 SECTION 7. Restrictive Covenants.
(a) Acknowledgements. The Executive acknowledges and recognizes the highly competitive nature of the businesses of the Company and its Affiliates. The Executive further acknowledges that the Executive has been and shall be provided with
access to sensitive and proprietary information about the clients, prospective clients, knowledge capital and business practices of the Company and its Affiliates, and has been and shall be provided with the opportunity to develop relationships with
customers, prospective customers, consultants, employees, representatives and other agents of the Company and its Affiliates, and the Executive further acknowledges that such proprietary information and relationships are extremely valuable assets in
which the Company and its Affiliates have invested and shall continue to invest substantial time, effort and expense. 
 (b)    Non-Competition. The Executive agrees that while employed by the Company and thereafter until a number of years after the Termination Date equal to the Multiple (such
period, the “Restriction Period”), the Executive shall not, directly or indirectly, on the Executive’s behalf or on behalf of any other person, firm, corporation, association or other entity, as an employee, stockholder,
director, advisor, partner, agent, consultant or otherwise, provide services or perform activities for, or acquire or maintain any ownership interest in, a beverage business (including a water business) in the United States, Canada or Mexico that
competes with any businesses being conducted or proposed to be conducted by PNABO, including the Coca-Cola Company, Dr Pepper Snapple Group, Inc., Cott Corporation and their respective parents, divisions, subsidiaries, affiliates, bottlers,
licensees or franchisees (such a beverage business, a “Competitive Enterprise”). Notwithstanding anything in this Section 7(b), the Executive shall not be considered to be in violation of this Section 7(b) solely by reason
of owning, directly or indirectly, any securities of a Competitive Enterprise if (i) the Executive’s interest does not exceed 5% in the aggregate of any class of securities of such Competitive Enterprise and (ii) such securities are
listed on a national securities exchange or registered under securities laws of Canada or the United States. 

(c)    Non-Solicitation of Employees. During the Restriction Period, the Executive hereby
agrees not to, directly or indirectly, solicit or hire, or assist any other person or entity in soliciting or hiring, any employee of the Company or any of its Affiliates to perform services for any entity (other than the Company or its Affiliates),
or attempt to induce any such employee to leave the employ of the Company or its Affiliates; provided, however, that the restrictions of this Section 7(c) shall not apply to the placement of general advertisements or the use of
general search firm services which are not targeted directly or indirectly towards employees of the Company or its Affiliates; provided further that the Executive shall not be considered to have engaged in any conduct prohibited by this
Section 7(c) with respect to an employee so long as the Executive shall not have recommended or otherwise identified such employee as a candidate for employment and shall not have otherwise been actively involved in the solicitation or hiring
of such employee. 
 (d)    Non-Solicitation of Customers. During the Restriction
Period, the Executive hereby agrees not to, in any manner, directly or indirectly, (i) solicit a customer or prospective customer of the Company and its Affiliates to transact business with a Competitive Enterprise or to reduce or refrain from
doing any business with the Company and its Affiliates or (ii) interfere with or damage (or attempt to interfere with or damage) any relationship between 

  
 12 

 
the Company and its Affiliates and a customer or prospective customer of the Company and its Affiliates. 
 (e)    Confidentiality. During the Executive’s employment with the Company and thereafter, the Executive shall hold in strict confidence any Proprietary or Confidential
Information related to the Company and its Affiliates, except that the Executive may disclose such information as required by law, court order, regulation or similar order. For purposes of this Agreement, the term “Proprietary or
Confidential Information” shall mean all information relating to the Company or its Affiliates (such as business plans, trade secrets, or financial information of strategic importance to the Company or its Affiliates) that is not generally
known in the beverage industry, that was learned, discovered, developed, conceived, originated or prepared during the Executive’s employment with the Company and the disclosure of which would be harmful to the business prospects, financial
status or reputation of the Company or its Affiliates at the time of any disclosure by the Executive. 

(f)    Nondisparagement. During the Executive’s employment with the Company and for a
number of years thereafter equal to the Multiple, the Executive shall not make any comments or statements to the press, employees of the Company or its Affiliates, any individual or entity with whom the Company or its Affiliates has a business
relationship or any other person, if such comment or statement is disparaging to the Company, any of its Affiliates or any of its current or former officers, members or directors, except for truthful statements as may be required by law. 

(g)    Return of Property. The Executive agrees that upon the Executive’s termination of
employment, the Executive (or, in the event of the Executive’s death, the Executive’s heirs or estate) at the request of the Company and its Affiliates, shall immediately return to the Company and its Affiliates all original books, papers,
plans, information, letters and other data, and shall immediately return or destroy all copies thereof or therefrom, in any way relating to the business of the Company and its Affiliates, and shall promptly thereafter certify to the Company in
writing that such actions have been completed. 
 (h)    Remedies. The Executive
hereby agrees that it is impossible to measure in money the damages which will accrue to the Company by reason of a failure by the Executive to perform any of the Executive’s obligations under Section 7(b), (c), (d), (e), (f) or (g).
Accordingly, if the Company or any of its Affiliates institutes any action or proceeding to enforce Section 7(b), (c), (d), (e), (f) or (g), to the extent permitted by applicable law, the Executive hereby waives the claim or defense that
the Company or its Affiliates has an adequate remedy at law, and the Executive shall not urge in any such action or proceeding the claim or defense that any such remedy at law exists. 

SECTION 8. No Mitigation or Offset. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive or others. In no event shall the
Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and, except as otherwise

  
 13 

 
expressly provided for in this Agreement, such amounts shall not be reduced whether or not the Executive obtains other employment. 

SECTION 9. Non-Exclusivity of Rights. Except as specifically provided in Section 4(a)(i), nothing in
this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, practice, policy or program provided by the Company or an Affiliate for which the Executive may qualify, nor shall anything in this Agreement
or the accompanying Separation Agreement and Release limit or otherwise affect any rights the Executive may have under any contract or agreement with the Company or an Affiliate. Vested benefits and other amounts that the Executive is otherwise
entitled to receive under any incentive compensation (including any equity award agreement), deferred compensation, retirement, pension or other plan, practice, policy or program of, or any contract or agreement with, the Company or an Affiliate
shall be payable in accordance with the terms of each such plan, practice, policy, program, contract or agreement, as the case may be, except as explicitly modified by this Agreement. 

SECTION 10. Withholding. The Company may deduct and withhold from any amounts payable under this Agreement
such Federal, state, local, foreign or other taxes as are required to be withheld pursuant to any applicable law or regulation. 
 SECTION 11. Assignment. (a) This Agreement is personal to the Executive and, without the prior written consent of the Company, shall not be assignable by the Executive otherwise than by
will or the laws of descent and distribution, and any assignment in violation of this Agreement shall be void. 

(b)    Notwithstanding the foregoing Section 11(a), this Agreement and all rights of the
Executive hereunder shall inure to the benefit of, and be enforceable by, the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive should die while
any amounts would still be payable to him or her hereunder if he or she had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee
or other designee or, should there be no such designee, to the Executive’s estate. 

(c)    The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Company (a “Successor”) to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would have
been required to perform it if no such succession had taken place. As used in this Agreement, (i) the term “Company” shall mean the Company as hereinbefore defined and any Successor and any permitted assignee to which this Agreement
is assigned and (ii) the term “Board” shall mean the Board as hereinbefore defined and the board of directors or equivalent governing body of any Successor and any permitted assignee to which this Agreement is assigned. 

SECTION 12. Dispute Resolution. (a) Except for any proceeding brought pursuant to Section 7(h), the
parties agree that any dispute arising out of or relating to this Agreement or the formation, breach, termination or validity thereof, shall be settled by binding arbitration by a 

  
 14 

 
panel of three arbitrators in accordance with the commercial arbitration rules of the American Arbitration Association. The arbitration proceedings shall be located in New York, New York. The
arbitrators shall not be empowered to award damages in excess of compensatory damages, and each party hereby irrevocably waives any damages in excess of compensatory damages. Judgment upon any arbitration award may be entered into any court having
jurisdiction thereof and the parties consent to the jurisdiction of any court of competent jurisdiction located in the State of New York. 
 (b)    If the Executive shall prevail with respect to at least one material issue in any arbitration brought by the Executive or the Company to enforce or interpret any provision
contained herein, the Company, to the fullest extent permitted by applicable law, shall indemnify the Executive for the Executive’s reasonable attorneys’ fees and disbursements incurred in such arbitration and hereby agrees (i) to pay
in full all such fees and disbursements and (ii) to pay prejudgment interest on any money judgment obtained by the Executive from the earliest date that payment to the Executive should have been made under this Agreement until such judgment
shall have been paid in full, which interest shall be calculated at the Default Rate set forth in Section 13. In no event shall any reimbursement be made to the Executive for such attorneys’ fees and disbursements that are incurred after
the tenth anniversary of the date of the Executive’s death. 
 SECTION 13. Default in Payment.
Any payment not made within ten business days after it is due in accordance with this Agreement shall thereafter bear interest, compounded annually, at a rate that is 120% of the applicable Federal long-term rate (pursuant to Code
Section 1274(d) or any successor provision) applicable for annual compounding, as published by the U.S. Internal Revenue Service and in effect at the time such payment is due (the “Default Rate”). 

SECTION 14. GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO BE MADE IN THE STATE OF NEW YORK, AND
THE VALIDITY, INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS AGREEMENT IN ALL RESPECTS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS PRINCIPLES OF CONFLICTS OF LAW. 

SECTION 15. Amendment; No Waiver. No provision of this Agreement may be amended, modified, waived or discharged
except by a written document signed by the Executive and a duly authorized officer of the Company. The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such
party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. No failure or delay by either party in exercising any right or power hereunder will operate as a
waiver thereof, nor will any single or partial exercise of any such right or power, or any abandonment of any steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power. No
agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party, which are not set forth expressly in this Agreement. 

  
 15 

 SECTION 16. Severability. If any term or provision of this
Agreement is invalid, illegal or incapable of being enforced by any applicable law or public policy, all other conditions and provisions of this Agreement shall nonetheless remain in full force and effect so long as the economic and legal substance
of the transactions contemplated by this Agreement is not affected in any manner materially adverse to any party. Upon any such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto
shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally
contemplated to the fullest extent possible. 
 SECTION 17. Entire Agreement. This Agreement sets
forth the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto, and any prior agreement of the parties hereto in respect of the subject matter contained herein is hereby terminated and canceled. None of the parties shall be liable or bound to any other
party in any manner by any representations and warranties or covenants relating to such subject matter except as specifically set forth herein. 
 SECTION 18. Survival. The rights and obligations of the parties arising under the provisions of this Agreement, including Sections 4, 5, 6, 7, 8, 10, 11, 12, 13, 14 and 23, shall survive
and remain binding and enforceable, notwithstanding the expiration of the Protection Period or the term of this Agreement, the termination of the Executive’s employment with the Company for any reason or any settlement of the financial rights
and obligations arising from the Executive’s employment hereunder, to the extent necessary to preserve the intended benefits of such provisions. 
 SECTION 19. Notices. All notices or other communications required or permitted by this Agreement will be made in writing and all such notices or communications will be deemed to have been duly
given when delivered or (unless otherwise specified) mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed as follows: 

 

			
	If to the Company:	  	 PepsiCo, Inc.
 700 Anderson
Hill Road
 Purchase, New York 10577

		
		  	 Attention: Chief Personnel Officer
 Fax: 914-253-3008

		
	If to the Executive:    	  	At the address for the Executive most recently on file with the Company

 or to such other address as any party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 

  
 16 

 SECTION 20. Headings and References. The headings of this
Agreement are inserted for convenience only and neither constitute a part of this Agreement nor affect in any way the meaning or interpretation of this Agreement. When a reference in this Agreement is made to a Section, such reference shall be to a
Section of this Agreement unless otherwise indicated. 
 SECTION 21. Counterparts. This
Agreement may be executed in one or more counterparts (including via facsimile), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. 

SECTION 22. Interpretation. For purposes of this Agreement, the words “include” and
“including”, and variations thereof, shall not be deemed to be terms of limitation but rather shall be deemed to be followed by the words “without limitation”. The term “or” is not exclusive. The word “extent”
in the phrase “to the extent” shall mean the degree to which a subject or other thing extends, and such phrase shall not mean simply “if”. 
 SECTION 23. Section 409A. (a) It is intended that the provisions of this Agreement comply with Section 409A of the Code, and any and any rules or regulations promulgated
thereunder from time to time (collectively, “Section 409A”), and all provisions of this Agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under
Section 409A (such taxes and penalties, “Section 409A Taxes”). 

(b)    Neither the Executive nor any of the Executive’s creditors or beneficiaries shall have
the right to subject any deferred compensation (within the meaning of Section 409A) payable under this Agreement to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment. Except as permitted
under Section 409A, any deferred compensation (within the meaning of Section 409A) payable to the Executive or for the Executive’s benefit under this Agreement may not be reduced by, or offset against, any amount owing by the
Executive to the Company or any of its Affiliates. 
 (c)    If, at the time of the
Executive’s separation from service (within the meaning of Section 409A), (i) the Executive shall be a specified employee (within the meaning of Section 409A and using the identification methodology selected by the Company from
time to time) and (ii) the Company shall make a good faith determination that an amount payable hereunder constitutes deferred compensation (within the meaning of Section 409A) the payment of which is required to be delayed pursuant to the
six-month delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A, then the Company (or its Affiliate, as applicable) shall not pay such amount on the otherwise scheduled payment date but shall instead
accumulate such amount and pay it on the first business day after such six-month period. 

(d)    If any payment or benefit to be provided under this Agreement is delayed as provided in
Section 23(c) (a “Delayed Payment”), then interest at the Default Rate on such Delayed Payment for the period beginning on the date such Delayed Payment would otherwise have been provided in the absence of Section 23(c)
and ending on the date of receipt of such Delayed Payment shall also be paid by the Company to the Executive at the time of payment. 

  
 17 

 (e)    In the event that the Company determines that
any provision of this Agreement does not comply with Section 409A and that the Executive may become subject to a Section 409A Tax, the Executive shall cooperate with the Company to execute any amendment to the provisions hereof reasonably
necessary to avoid the imposition of such Section 409A Tax, but only to the minimum extent necessary to avoid the application of such Section 409A Tax and only to the extent that the Executive would not, as a result, suffer (i) any
reduction in the total present value of the amounts otherwise payable to the Executive, or the benefits otherwise to be provided to the Executive, by the Company or (ii) any material increase in the risk of the Executive not receiving such
amounts or benefits. 
 (f)    Except as specifically permitted by Section 409A, the
benefits and reimbursements provided to the Executive under Sections 4(a) and 12(b) and otherwise under this Agreement during any calendar year shall not affect the benefits and reimbursements to be provided to the Executive in any other
calendar year, any such reimbursements shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense was incurred and the right to such benefits and reimbursements shall not be liquidated or
exchanged for any other benefit. 
 SECTION 24. Attorney’s Fees. The Executive shall be
entitled to reimbursement from the Company, upon the Executive’s presentation to the Company of a written invoice, for the reasonable attorney’s fees and costs that the Executive incurred in negotiating this Agreement; provided that the
amount of such reimbursements shall not exceed $25,000. 

  
 18 

 IN WITNESS WHEREOF, this Agreement has been executed by the parties
as of the date first written above. 
  

			
	PEPSICO, INC.,
		
	By:	 	/s/    Indra K. Nooyi
	 Name: Indra K. Nooyi
 Title: Chairman and Chief Executive Officer

	
	EXECUTIVE,
		
	By:	 	/s/    Eric J. Foss
	 Name: Eric J. Foss

  
 19 

 EXHIBIT A 

CURRENT BOARDS AND COMMITTEES OF EXECUTIVE 
 1. UDR, Inc. Board of Directors 
 2. Industry Affairs Council of the Grocery
Manufacturers of America 

  
 Exhibit A
– Page 1 

 EXHIBIT B 

SPECIAL EARLY RETIREMENT BENEFITS 
 This Exhibit B sets forth the Special Early Retirement Benefits that will be provided to the Executive under the Agreement in the event that the Executive incurs a Qualifying Termination or
Non-Qualifying Termination during the Protection Period and, as of the Termination Date, has not yet attained an age of at least 55, as required by Section 4(a)(v) of the Agreement. Such benefits shall consist of a (A) Special Early
Retirement Lump Sum Benefit, (B) Special Early Retiree Medical Benefit, (C) Special Early Retiree Life Insurance Benefit and (D) retirement treatment under the terms of long-term incentive awards granted after the Effective Date
except for the Initial Equity Award and the Integration Equity Award. Any such benefit shall be provided in accordance with the terms of the applicable Company benefit and compensation plan or arrangement. 

Special Early Retirement Lump Sum Benefit 
 The Executive shall be eligible to receive a special early retirement benefit (“Special Early Retirement Benefit”) based on benefit formulas (without regard to any change thereto after
the Effective Date that would result in a material reduction in the Executive’s employee benefits in the aggregate (without regard to annual bonuses) or that would violate the covenant of the Company set forth in Section 7.06(a) of the PBG
Merger Agreement) under the Pepsi Bottling Group, Inc. Salaried Employees Retirement Plan or any successor plan (the “Salaried Plan”) and the Pepsi Bottling Group, Inc. Pension Equalization Plan or any successor plan (the
“PEP” and, together with the Salaried Plan, the “Plans”). The Special Early Retirement Benefit shall be based on the early retirement benefit formula under each Plan, and shall be calculated using the more favorable early
retirement reduction factors and other actuarial factors associated with the early retirement benefit formula (the “Early Retirement Factors”), in each case, without regard to any change thereto after the Effective Date that would
result in a material reduction in the Executive’s employee benefits in the aggregate (without regard to annual bonuses) or that would violate the covenant of the Company set forth in Section 7.06(a) of the PBG Merger Agreement. 

The Special Early Retirement Benefit shall equal (x) the Executive’s benefit under the Plans as of the Termination Date,
determined based on the Early Retirement Factors minus (y) the Executive’s deferred vested benefit under the Plans as of the Termination Date, determined based on the standard benefit formula and standard reduction formula
thereunder (in each case, without regard to any change thereto after the Effective Date that would result in a material reduction in the Executive’s employee benefits in the aggregate (without regard to annual bonuses) or that would violate the
covenant of the Company set forth in Section 7.06(a) of the PBG Merger Agreement). 
 The Special Early Retirement Benefit
shall be paid in a single cash lump sum, and shall be paid as soon as practicable by the Company, after the Termination Date (or such later date as may be required to comply with the provisions of Section 409A of the Code). The interest rate(s)
used for determining such lump sum amount shall not exceed the interest rate(s) that would have been applicable to such determination if made on the Effective Date. 

  
 Exhibit B
– Page 1 

 Special Early Retiree Medical Benefit 

The Executive shall also be entitled to Special Early Retiree Medical Benefit coverage under the Company’s retiree medical program
as in effect from time to time and generally available to the Company’s retirees; provided that the Executive’s medical coverage pursuant to Special Early Retiree Medical Benefit coverage shall commence after termination of the
Executive’s medical coverage under Section 4(a)(iii) of the Agreement. The Executive shall be responsible for the retiree’s cost of the Special Early Retiree Medical Benefit coverage, and such costs shall be comparable to the retiree
medical costs generally paid by the Company’s retirees. 
 Special Early Retiree Life Insurance Benefit 

The Executive shall also be entitled to Special Early Retiree Life Insurance coverage as in effect from time to time and generally
available to the Company’s retirees. Such coverage shall commence as of the Termination Date. Under the Special Early Retiree Life Insurance coverage currently made available by the Company, the Executive shall be eligible to receive life
insurance coverage up to the basic life insurance coverage provided under the Company’s Basic Life Insurance Program; provided that such coverage is subject to 10% annual reductions until age 65 (at which point, the Executive shall be
provided with coverage equal to $5000). The Executive shall be responsible for the retiree’s cost of the special Early Retiree Life Insurance coverage, if any, and such costs shall be comparable to the retiree life insurance costs generally
paid by the Company’s retirees. 
 Long-Term Incentive Plan 

The Executive shall also be treated as having terminated employment as a result of “Retirement” for purposes of the annual
long-term incentive awards granted to the Executive by the Company after the Effective Date other than the Initial Equity Award and the Integration Equity Award (the terms of which are set forth in Sections 3(b)(iii) and (iv) of the
Agreement) or any other special retention award. As a result of such Retirement treatment, a pro rata portion of each outstanding annual long-term incentive award (other than the Initial Equity Award and the Integration Equity Award (the terms of
which are set forth in Sections 3(b)(iii) and (iv) of the Agreement) or any other special retention award) shall vest on his last day of employment in proportion to the Executive’s active service from the grant date to his Termination
Date; provided, however, that the settlement of any performance stock units shall remain subject to attainment of the applicable performance targets and, with respect to any options, the Executive shall be able to exercise such options
from the originally scheduled vesting date until the end of the options’ term. 

  
 Exhibit B
– Page 2 

 EXHIBIT C 

SEPARATION AGREEMENT AND RELEASE 
 I.    Release. For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned, with the intention of binding himself/herself,
his/her heirs, executors, administrators and assigns, does hereby release and forever discharge PepsiCo, Inc., a North Carolina corporation (the “Company”), and its present and former subsidiaries, together with their present and
former directors, officers and employees and their respective successors, predecessors and assigns (collectively, the “Released Parties”), from any and all claims, actions, causes of action, demands, rights, damages, debts,
accounts, suits, expenses, attorneys’ fees and liabilities of whatever kind or nature in law, equity, or otherwise, whether now known or unknown (collectively, the “Claims”), which the undersigned now has, owns or holds, or has
at any time heretofore had, owned or held against any Released Party, arising out of or in any way connected with the undersigned’s employment relationship with the Company, its subsidiaries or successors, predecessors or assigns, or the
termination thereof, under any Federal, state or local statute, rule, or regulation, or principle of common, tort or contract law, including but not limited to, the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. §§ 201
et seq., the Family and Medical Leave Act of 1993, as amended (the “FMLA”), 29 U.S.C. §§ 2601 et seq., Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C.
§§ 2000e et seq., the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. §§ 621 et seq., the Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §§ 12101
et seq., the Worker Adjustment and Retraining Notification Act of 1988, as amended, 29 U.S.C. §§ 2101 et seq., the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C.
§§ 1001 et seq., and any other equivalent or similar Federal, state, or local statute; provided, however, that nothing herein shall release the Company of its obligations to the Executive (i) under that certain
Retention Agreement between the undersigned and the Company, (ii) with respect to payments, rights and benefits under employee benefit plans and arrangements that have vested or accrued as of the Termination Date (as defined in such Retention
Agreement) or (iii) with respect to any directors’ and officers’ indemnification or insurance arrangements. The undersigned understands that, as a result of executing this Separation Agreement and Release, he/she will not have the
right to assert that the Company or any other Released Party unlawfully terminated his/her employment or violated any of his/her rights in connection with his/her employment or otherwise. 

The undersigned affirms that he/she has not filed, caused to be filed, or presently is a party to any Claim, complaint or
action against any Release Party in any forum or form and that he/she knows of no facts which may lead to any Claim, complaint or action being filed against any Release Party in any forum by the undersigned or by any agency or group. 

The undersigned further declares and represents that he/she has carefully read and fully understands the terms of this
Separation Agreement and Release and that he/she has been advised and had the opportunity to seek the advice and assistance of counsel with regard to this Separation Agreement and Release, that he/she may take up to and including 21 days from
receipt of this Separation Agreement and Release, to consider whether to sign this Separation Agreement and Release, that he/she may revoke this Separation Agreement and Release within seven calendar days after signing it by delivering to the
Company written notification of 

  
 Exhibit C
– Page 1 

 
revocation, and that he/she knowingly and voluntarily, of his/her own free will, without any duress, being fully informed and after due deliberate action, accepts the terms of and signs the same
as his own free act. 
 II.    Protected Rights. The Company and the undersigned
agree that nothing in this Separation Agreement and Release is intended to or shall be construed to affect, limit or otherwise interfere with any non-waivable right of the undersigned under any Federal, state or local law, including the right to
file a charge or participate in an investigation or proceeding conducted by the Equal Employment Opportunity Commission (“EEOC”) or to exercise any other right that cannot be waived under applicable law. The undersigned is
releasing, however, his/her right to any monetary recovery or relief should the EEOC or any other agency pursue Claims on his/her behalf. Further, should the EEOC or any other agency obtain monetary relief on his/her behalf, the undersigned assigns
to the Company all rights to such relief. 
 III.    Severability. If any term or
provision of this Separation Agreement and Release is invalid, illegal or incapable of being enforced by any applicable law or public policy, all other conditions and provisions of this Separation Agreement and Release shall nonetheless remain in
full force and effect so long as the economic and legal substance of the transactions contemplated by this Separation Agreement and Release is not affected in any manner materially adverse to any party. 

IV.    GOVERNING LAW. THIS SEPARATION AGREEMENT AND RELEASE SHALL BE DEEMED TO BE MADE IN
THE STATE OF NEW YORK, AND THE VALIDITY, INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS AGREEMENT IN ALL RESPECTS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS PRINCIPLES OF CONFLICTS OF LAW. 

Effective on the eighth calendar day following the date set forth below. 

 

			
	PEPSICO, INC.
		
	By:	 	 
	 Name:
 Title:

	
	EMPLOYEE,
	
	 
	 Name:
 Date Signed:

  
 Exhibit C
– Page 2PBG Pension Equalization Plan (Plan Document for the 409A Program)

 Exhibit 10.65 

 

 

 PENSION EQUALIZATION PLAN 
 (PEP) 
 Restatement Effective April 1, 2009 

 PBG PENSION EQUALIZATION PLAN (PEP) 

Restatement Effective April 1, 2009 
 Table of Contents 
  

							
	 	 	 	  	Page
No.	 
	 ARTICLE I – History and Purpose
	  	 	5	  
			
	 1.1
	 	 History of Plan
	  	 	5	  
		
	 ARTICLE II – Definitions and Construction
	  	 	6	  
			
	 2.1
	 	 Definitions
	  	 	6	  
		 	 (a)    Actuarial Equivalent
	  	 	6	  
		 	 (b)    Annuity
	  	 	6	  
		 	 (c)    Code
	  	 	6	  
		 	 (d)    Company or PBG
	  	 	6	  
		 	 (e)    Compensation Limitation
	  	 	6	  
		 	 (f)     Effective Date
	  	 	6	  
		 	 (g)    EID
	  	 	7	  
		 	 (h)    ERISA
	  	 	7	  
		 	 (i)     Participant
	  	 	7	  
		 	 (j)     PBG Organization
	  	 	7	  
		 	 (k)    PEP Pension
	  	 	7	  
		 	 (l)     PepsiCo Prior Plan
	  	 	7	  
		 	 (m)   Plan
	  	 	7	  
		 	 (n)    Plan Administrator
	  	 	7	  
		 	 (o)    Plan Year
	  	 	7	  
		 	 (p)    Primary Social Security Amount
	  	 	7	  
		 	 (q)    Salaried Plan
	  	 	8	  
		 	 (r)     Salaried Plan Participant
	  	 	8	  
		 	 (s)    Section 409A
	  	 	8	  
		 	 (t)     Section 415 Limitation
	  	 	8	  
		 	 (u)    Separation from Service
	  	 	8	  
		 	 (v)    Single Lump Sum
	  	 	8	  
		 	 (w)   Specified Employee
	  	 	8	  
		 	 (x)    Vested Pension
	  	 	10	  
			
	 2.2
	 	 Construction
	  	 	10	  
		 	 (a)    Gender and Number
	  	 	10	  
		 	 (b)    Compounds of the Word “Here”
	  	 	10	  
		
	 ARTICLE III – Participation
	  	 	10	  

  
 - i -

							
		
	 ARTICLE IV – Amount of Retirement Pension
	  	 	10	  
			
	 4.1
	 	 PEP Pension
	  	 	10	  
		 	 (a)    Same Form as Salaried Plan
	  	 	10	  
		 	 (b)    Different Form than Salaried Plan
	  	 	11	  
			
	 4.2
	 	 PEP Guarantee
	  	 	12	  
		 	 (a)    Eligibility
	  	 	12	  
		 	 (b)    PEP Guarantee Formula
	  	 	12	  
			
	 4.3
	 	 Certain Adjustments
	  	 	15	  
		 	 (a)    Adjustments for Rehired Participants
	  	 	15	  
		 	 (b)    Adjustment for Increased Pension Under Other Plans
	  	 	15	  
			
	 4.4
	 	 Reemployment of Certain Participants
	  	 	15	  
			
	 4.5
	 	 Vesting; Misconduct
	  	 	15	  
		
	 ARTICLE V – Death Benefits
	  	 	16	  
			
	 5.1
	 	 Death Benefits
	  	 	16	  
		
	 ARTICLE VI – Distributions
	  	 	16	  
			
	 6.1
	 	 Form and Timing of Distributions
	  	 	16	  
		 	 (a)    Time and Form of Payment of Grandfathered Benefit
	  	 	17	  
		 	 (b)    Time and Form of Payment of Non-Grandfathered Benefit
	  	 	17	  
			
	 6.2
	 	 Special Rules for Survivor Options
	  	 	18	  
		 	 (a)    Effect of Certain Deaths
	  	 	18	  
		 	 (b)    Nonspouse Beneficiaries
	  	 	18	  
			
	 6.3
	 	 Designation of Beneficiary
	  	 	18	  
			
	 6.4
	 	 Determination of Single Lump Sum Amounts
	  	 	19	  
		 	 (a)    Vested Pensions
	  	 	19	  
		 	 (b)    2008 Reorganization
	  	 	19	  
			
	 6.5
	 	 Section 162(m) Postponement
	  	 	19	  
		
	 ARTICLE VII – Administration
	  	 	19	  
			
	 7.1
	 	 Authority to Administer Plan
	  	 	19	  
			
	 7.2
	 	 Facility of Payment
	  	 	20	  
			
	 7.3
	 	 Claims Procedure
	  	 	20	  
			
	 7.4
	 	 Effect of Specific References
	  	 	21	  
			
	 7.5
	 	 Limitations on Actions
	  	 	21	  

  
 - ii -

							
		
	 ARTICLE VIII – Miscellaneous
	  	 	21	  
			
	 8.1
	 	 Nonguarantee of Employment
	  	 	21	  
			
	 8.2
	 	 Nonalienation of Benefits
	  	 	21	  
			
	 8.3
	 	 Unfunded Plan
	  	 	22	  
			
	 8.4
	 	 Action by the Company
	  	 	22	  
			
	 8.5
	 	 Indemnification
	  	 	22	  
			
	 8.6
	 	 Applicable Law
	  	 	22	  
			
	 8.7
	 	 Withholding
	  	 	22	  
		
	 ARTICLE IX – Amendment and Termination
	  	 	22	  
			
	 9.1
	 	 Continuation of the Plan
	  	 	22	  
			
	 9.2
	 	 Amendments
	  	 	23	  
			
	 9.3
	 	 Termination
	  	 	23	  
		
	 APPENDIX
	  	 	25	  
		
	 Foreword
	  	 	25	  
		
	 Article IPO – Transferred and Transition Individuals
	  	 	25	  
		
	 Article B – Special Cases
	  	 	26	  
		
	 Article C – Transfers From/To PepsiCo, Inc.
	  	 	27	  

  
 - iii -

 PBG PENSION EQUALIZATION PLAN (PEP) 

Restatement Effective April 1, 2009 
 ARTICLE I – History and Purpose 
 1.1 History of Plan.
The Pepsi Bottling Group, Inc. (the “Company”) established the PBG Pension Equalization Plan (“PEP” or “Plan”) effective April 6, 1999 for the benefit of salaried employees of the PBG Organization who participate
in the PBG Salaried Employees Retirement Plan (“Salaried Plan”). The Plan was amended by a First Amendment effective as of May 26, 1999. The Plan was further amended and completely restated effective January 1, 2006. The Plan
provides benefits for eligible employees whose pension benefits under the Salaried Plan are limited by the provisions of the Internal Revenue Code of 1986, as amended. In addition, the Plan provides benefits for certain eligible employees based on
the pre-1989 Salaried Plan formula. The Plan is intended as a nonqualified unfunded deferred compensation plan for federal income tax purposes. For purposes of the Employee Retirement Income Security Act of 1974 (“ERISA”), the Plan is
structured as two plans. The portion of the Plan that provides benefits based on limitations imposed by Section 415 of the Internal Revenue Code (the “Code”) is intended to be an “excess benefit plan” as described in
Section 4(b)(5) of ERISA. The remainder of the Plan is intended to be a plan described in Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA providing benefits to a select group of management or highly-compensated employees. 

The Plan was initially established as a successor plan to the PepsiCo Pension Equalization Plan, due to PBG’s April 6, 1999
initial public offering and the Plan included historical PepsiCo provisions which are relevant for eligibility and benefit determinations under the Plan. The Plan was amended and completely restated effective as of January 1, 2006 and further
amended and completely restated effective as of January 1, 2009 to comply with Section 409A of the Code and to make certain other changes. 
 The Company now wishes to further amend and completely restate the Plan effective as of April 1, 2009 to add provisions implementing changes in the company’s retirement program and to make
certain other changes. 
 NOW, THEREFORE, the PBG Pension Equalization Plan is hereby amended and completely
restated in the form of this April 1, 2009 Restatement as follows. 
 1.2 Effect of Amendment and
Restatement. The Plan as in effect on October 3, 2004 is referred to herein as the Prior Plan. 
 Except as
otherwise explicitly provided in Section 6.1(b)(3) of this Plan, a Participant’s benefit (including death benefits), determined under the terms of the Plan as in effect on October 3, 2004 as if the Participant had terminated
employment on December 31, 2004, without regard to any compensation paid or services rendered after 2004, or any other events affecting the amount of or the entitlement to benefits (other than the Participant’s survival or the
Participant’s 

  
 - 5 -

 
election under the terms of the Plan with respect to the time or form of benefit) (the “Grandfathered Benefit”) shall be paid at the time and in the form provided by the terms of the
Plan as in effect on October 3, 2004. 
 The benefit of a Participant accrued under this Plan based on all compensation and
services taken into account by the Prior Plan and this Plan, less the Participant’s Grandfathered Benefit, shall be paid in the times and in the form as provided in this Plan. Except as otherwise explicitly provided in this Plan, this Plan
superseded the Prior Plan effective January 1, 2009, with respect to amounts accrued and vested after 2004 by Participants who had not commenced receiving benefits as of January 1, 2009. The Plan was administered in accordance with a good
faith interpretation of Section 409A of the Internal Revenue Code and IRS regulations and guidance thereunder from January 1, 2005 through December 31, 2008. Amounts accrued under this Plan after 2004 shall be treated as payable under
a separate Plan for purposes of Section 409A of the Internal Revenue Code. 
 ARTICLE II – Definitions and
Construction 
 2.1 Definitions. The following words and phrases, when used in this Plan, shall have the
meaning set forth below unless the context clearly indicates otherwise. Unless otherwise expressly qualified by the terms or the context of this Plan, the terms used in this Plan shall have the same meaning as those terms in the Salaried Plan.

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

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

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

(d) Company or PBG. The Pepsi Bottling Group, Inc., a corporation organized and existing under the laws of
the State of Delaware, or its successor or successors. 
 (e) Compensation Limitation. Benefits not
payable under the Salaried Plan because of the limitations on the maximum amount of compensation which may be considered in determining the annual benefit of the Salaried Plan Participant under Section 401(a)(17) of the Code. 

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

  
 - 6 -

 (g) EID. The PBG Executive Income Deferral Program, as amended
from time to time. 
 (h) ERISA. Public Law No. 93-406, the Employee Retirement Income
Security Act of 1974, as amended from time to time. 
 (i) Participant. An Employee participating
in the Plan in accordance with the provisions of Section 3.1. 
 (j) PBG Organization. The
controlled group of organizations of which the Company is a part, as defined by Code section 414 and regulations issued thereunder. An entity shall be considered a member of the PBG Organization only during the period it is one of the group of
organizations described in the preceding sentence. 
 (k) PEP Pension. One or more payments that
are payable to a person who is entitled to receive benefits under the Plan. The term “Grandfather Benefit” shall be used to refer to the portion of a PEP Pension that is payable in accordance with the Plan as in effect October 3, 2004
and is not subject to Section 409A. 
 (l) PepsiCo Prior Plan. The PepsiCo Pension
Equalization Plan. 
 (m) Plan. The PBG Pension Equalization Plan, the Plan set forth herein, as it
may be amended from time to time. The Plan is also sometimes referred to as PEP. For periods before April 6, 1999, references to the Plan refer to the PepsiCo Prior Plan. 

(n) Plan Administrator. The person or persons designated by the Company in accordance with Article VII.

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

(p) Primary Social Security Amount. In determining Pension amounts, Primary Social Security Amount shall
mean: 
 (1) For purposes of determining the amount of a Retirement, Vested or Pre-Retirement Spouse’s
Pension, the Primary Social Security Amount shall be the estimated monthly amount that may be payable to a Participant commencing at age 65 as an old-age insurance benefit under the provisions of Title II of the Social Security Act, as amended. Such
estimates of the old-age insurance benefit to which a Participant would be entitled at age 65 shall be based upon the following assumptions: 
 (i) That the Participant’s social security wages in any year prior to Retirement or severance are equal to the Taxable Wage Base in such year, and 

  
 - 7 -

 (ii) That he will not receive any social security wages after Retirement or
severance. 
 However, in computing a Vested Pension under Section 4.2, the estimate of the old-age insurance benefit to
which a Participant would be entitled at age 65 shall be based upon the assumption that he continued to receive social security wages until age 65 at the same rate as the Taxable Wage Base in effect at the earlier of his severance from employment or
the date such participant ceased to accrue benefits under both the Salaried Plan and this Plan. For purposes of this subsection, “social security wages” shall mean wages within the meaning of the Social Security Act. 

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

(q) Salaried Plan. The PBG Salaried Employees Retirement Plan, as it may be amended from time to time. Any
references herein to the Salaried Plan for a period that is before the Effective Date shall mean the PepsiCo Salaried Employees Retirement Plan. 
 (r) Salaried Plan Participant. An Employee who is a participant in the Salaried Plan. 
 (s) Section 409A. Section 409A of the Code and the applicable regulations and other guidance issued thereunder. 

(t) Section 415 Limitation. Benefits not payable under the Salaried Plan because of the limitations
imposed on the annual benefit of a Salaried Plan Participant by Section 415 of the Code. 
 (u)
Separation from Service. A Participant’s separation from service as defined in Section 409A; provided that for this purpose the term “service recipient” shall include PepsiCo., Inc., so long as PepsiCo., Inc. or a
member of the PepsiCo., Inc. controlled group maintains an ownership interest in the Company of at least 20%. 

(v) Single Lump Sum. The distribution of a Participant’s total PEP Pension in excess of the
Participant’s Grandfathered Benefit in the form of a single payment. 
 (w) Specified
Employee. The individuals identified in accordance with principles set forth below. 

  
 - 8 -

 (1) General. Any Participant who at any time during the applicable
year is: 
 (i) An officer of any member of the PBG Organization having annual compensation greater than
$130,000 (as adjusted under Section 416(i)(1) of the Code); 
 (ii) A 5-percent owner of any member of the
PBG Organization; or 
 (iii) A 1-percent owner of any member of the PBG Organization having annual compensation
of more than $150,000. 
 For purposes of (i) above, no more than 50 employees identified in the order of
their annual compensation shall be treated as officers. For purposes of this section, annual compensation means compensation as defined in Treas. Reg. § 1.415(c)-2(a), without regard to Treasury Reg. §§ 1.415(c)-2(d), 1.415(c)-2(e),
and 1.415(c)-2(g). The Plan Administrator shall determine who is a Specified Employee in accordance with Section 416(i) of the Code and the applicable regulations and other guidance of general applicability issued thereunder or in connection
therewith, and provided further that the applicable year shall be determined in accordance with Section 409A and that any modification of the foregoing definition that applies under Section 409A shall be taken into account. 

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

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

  
 - 9 -

 (x) Vested Pension. The PEP Pension available to a Participant
who has a vested PEP Pension and is not eligible for a Retirement Pension. 
 2.2 Construction. The terms
of the Plan shall be construed in accordance with this section. 
 (a) Gender and Number. The
masculine gender, where appearing in the Plan, shall be deemed to include the feminine gender, and the singular may include the plural, unless the context clearly indicates to the contrary. 

(b) Compounds of the Word “Here”. The words “hereof”, “hereunder” and other
similar compounds of the word “here” shall mean and refer to the entire Plan, not to any particular provision or section. 
 ARTICLE III – Participation 
 3.1 Each Salaried Plan Participant whose
benefit under the Salaried Plan is curtailed by the Compensation Limitation or the Section 415 Limitation, or both, and each other Salaried Plan Participant (i) who is a Grandfathered Employee as defined in Section 3.7 of the Salaried
Plan and who makes elective deferrals to the EID on or after April 1, 2009 (inclusively); (ii) who would be considered a Grandfathered Participant as defined in Section 3.7 of the Salaried Plan if the Participant was not classified by
the Employer as salary band E3-E8 or MP; or (iii) whose 1988 pensionable “earnings” under the Salaried Plan, as described in Section 4.2(a), were $75,000 or more, shall participate in this Plan. 

ARTICLE IV – Amount of Retirement Pension 
 4.1 PEP Pension. Subject to Section 4.5, a Participant’s PEP Pension shall equal the amount determined under (a) or (b) of this Section 4.1, whichever is applicable.
Such amount shall be determined as of the date of the Participant’s Separation from Service. 
 (a)
Same Form as Salaried Plan. If a Participant’s PEP Pension will be paid in the same form and will commence as of the same time as his pension under the Salaried Plan, then his monthly PEP Pension shall be equal to the excess of:

 (1) The greater of: 
 (i) the monthly pension benefit which would have been payable to such Participant under the Salaried Plan without regard to (I) the Compensation Limitation; (II) the Section 415 Limitation;
(III) the exclusion from Earnings of amounts deferred at the election of the Participant under the EID on or after April 1, 2009; and (IV) the March 31, 2009 exclusion from the Salaried

  
 - 10 -

 
Plan definition of a Grandfathered Participant of a Participant who, as of such date, was classified as salary band E3-E8 or MP and had attained age 50 and completed five years of Service or
whose sum of his age and years of Service was at least 65; and 
 (ii) if applicable, the amount determined in
accordance with Section 4.2, expressed in such form and payable as of such time; over  
 (2) The
amount of the monthly pension benefit that is in fact payable to such Salaried Plan Participant under the Salaried Plan, expressed in such form and payable as of such time. 
 The amount of the monthly pension benefit so determined, less the portion of such benefit that is the Participant’s Grandfathered Benefit, shall be payable as provided in Section 6.2.

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

(1) The greater of: 
 (i) the monthly pension benefit which would have been payable to such Participant under the Salaried Plan without regard to (I) the Compensation Limitation; (II) the Section 415 Limitation;
(III) the exclusion from Earnings of amounts deferred at the election of the Participant under the EID on or after April 1, 2009; and (IV) the March 31, 2009 exclusion from the Salaried Plan definition of a Grandfathered Participant of a
Participant who, as of such date, was classified as salary band E3-E8 or MP and had attained age 50 and completed five years of Service or whose sum of his age and years of Service was at least 65; and 

(ii) if applicable, the amount determined in accordance with Section 4.2, expressed in the form and payable as of
such time as applies to his PEP Pension under this Plan, multiplied by 
 (2) A fraction, the numerator of
which is the value of the amount determined in Section 4.1(b)(1), reduced by the value of his pension under the Salaried Plan, and the denominator of which is the value of the amount determined in Section 4.1(b)(1) (with value
determined on a reasonable and consistent basis, in the discretion of the Plan Administrator, with respect to similarly situated employees). 
 The amount of the monthly pension benefit so determined, less the portion of such benefit that is the Participant’s Grandfathered Benefit, shall be payable as provided in Section 6.2.

  
 - 11 -

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

 4.2 PEP Guarantee. A Participant who is eligible under subsection (a) below shall be entitled to a PEP
Guarantee benefit determined under subsection (b) below, if any. 
 (a) Eligibility. A
Participant shall be covered by this section if the Participant has 1988 pensionable earnings from an Employer of at least $75,000. For purposes of this section, “1988 pensionable earnings” means the Participant’s remuneration for the
1988 calendar year that was recognized for benefit accrual received under the Salaried Plan as in effect in 1988. “1988 pensionable earnings” does not include remuneration from an entity attributable to any period when that entity was not
an Employer. 
 (b) PEP Guarantee Formula. The amount of a Participant’s PEP Guarantee shall
be determined under paragraph (1), subject to the special rules in paragraph (2). 
 (1) Formula. The
amount of a Participant’s PEP Guarantee under this paragraph shall be determined as follows: 
 (i) Three
percent of the Participant’s Highest Average Monthly Earnings for the first 10 years of Credited Service, plus 
 (ii) One percent of the Participant’s Highest Average Monthly Earnings for each year of Credited Service in excess of 10 years, less 

(iii) One and two-thirds percent of the Participant’s Primary Social Security Amount multiplied by years of Credited
Service not in excess of 30 years. 
 In determining the amount of a Vested Pension, the PEP Guarantee shall
first be calculated on the basis of (I) the Credited Service the Participant would have earned had he continued to accrue Credited Service until his Normal Retirement Age, and (II) his Highest Average Monthly Earnings and Primary Social
Security Amount at the earlier of his Severance from Service Date or the date such Participant ceased to accrue additional benefits under both the Salaried Plan and this Plan, and then shall be reduced by multiplying the resulting amount by a
fraction, the numerator of which is the Participant’s actual years of Credited Service on the earlier of his Severance from Service Date or the date such Participant ceased to accrue additional benefits under both the Salaried Plan and

  
 - 12 -

 
this Plan and the denominator of which is the years of Credited Service he would have earned had he continued to accrue Credited Service until his Normal Retirement Age. 

(2) Calculation. The amount of the PEP Guarantee shall be determined pursuant to paragraph (1) above, subject
to the following special rules: 
 (i) Surviving Eligible Spouse’s Annuity: Subject to subparagraph
(iii) below and the last sentence of this subparagraph, if the Participant has an Eligible Spouse and has commenced receipt of an Annuity under this section, the Participant’s Eligible Spouse shall be entitled to receive a survivor annuity
equal to 50 percent of the Participant’s Annuity under this section, with no corresponding reduction in such Annuity for the Participant. Annuity payments to a surviving Eligible Spouse shall begin on the first day of the month coincident with
or following the Participant’s death and shall end with the last monthly payment due prior to the Eligible Spouse’s death. If the Eligible Spouse is more than 10 years younger than the Participant, the survivor benefit payable under this
subparagraph shall be adjusted as provided below. 
 (A) For each full year more than 10 but less than 21 that
the surviving Eligible Spouse is younger than the Participant, the survivor benefit payable to such spouse shall be reduced by 0.8 percent. 
 (B) For each full year more than 20 that the surviving Eligible Spouse is younger than the Participant, the survivor benefit payable to such spouse shall be reduced by an additional 0.4 percent.

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

 (ii) Reductions. The following reductions shall apply in determining a Participant’s PEP
Guarantee. 
 (A) If the Participant will receive an Early Retirement Pension, the payment
amount shall be reduced by 3/12ths of 1 percent for each month by which the benefit commencement date
precedes the date the Participant would attain his Normal Retirement Date. 
 (B) If the Participant is entitled
to a Vested Pension, the payment amount shall be reduced to the Actuarial Equivalent of the amount payable at his Normal Retirement Date (if payment commences before such date), and the reductions set forth in the Salaried Plan for any
Pre-Retirement Spouse’s coverage shall apply. 

  
 - 13 -

 (C) This clause applies if the Participant will receive his PEP Guarantee
in a form that provides an Eligible Spouse benefit, continuing for the life of the surviving spouse, that is greater than that provided under subparagraph (i). In this instance, the Participant’s PEP Guarantee under this section shall be
reduced so that the total value of the benefit payable on the Participant’s behalf is the Actuarial Equivalent of the PEP Guarantee otherwise payable under the foregoing provisions of this section. 

(D) This clause applies if the Participant will receive his PEP Guarantee in a form that provides a survivor annuity for
a beneficiary who is not his Eligible Spouse. In this instance, the Participant’s PEP Guarantee under this section shall be reduced so that the total value of the benefit payable on the Participant’s behalf is the Actuarial Equivalent of a
Single Life Annuity for the Participant’s life. 
 (E) This clause applies if the Participant will receive
his PEP Guarantee in a Annuity form that includes inflation protection described in the Salaried Plan. In this instance, the Participant’s PEP Guarantee under this section shall be reduced so that the total value of the benefit payable on the
Participant’s behalf is the Actuarial Equivalent of the elected Annuity without such protection. 
 (iii)
Lump Sum Conversion. The amount of the PEP Guarantee determined under this section for a Participant whose Retirement Pension will be distributed in the form of a lump sum shall be the Actuarial Equivalent of the Participant’s PEP
Guarantee determined under this section, taking into account the value of any survivor benefit under subparagraph (i) above and any early retirement reductions under subparagraph (ii)(A) above. 

(iv) April 1, 2009 Salaried Plan Changes. 

(A) The amount of the PEP Guarantee determined under this section for a Participant who, as of March 31, 2009, was
classified as salary band E3-E8 or MP and who had attained age 50 and completed five years of Service or (inclusively) whose sum of his age and years of Service was at least 65 shall be determined as if such Participant were a Grandfathered
Participant in the Salaried Plan (so that Earnings and Credited Service were not frozen as of March 31, 2009). 
 (B) Highest Average Monthly Earnings shall be determined without regard to the exclusion from Earnings under the Salaried Plan of amounts deferred at the election of the Participant under the EID on or
after April 1, 2009. 

  
 - 14 -

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

(a) Adjustments for Rehired Participants. This subsection shall apply to a current or former Participant who
is reemployed after his Annuity Starting Date and (i) whose benefit under the Salaried Plan is recalculated based on an additional period of Credited Service, or (ii) whose benefit under the Salaried Plan would have been recalculated,
based on an additional period of Credited Service if the Participant would have been considered a Grandfathered Participant as defined in Section 3.7 of the Salaried Plan if the Participant was not classified by the Employer as salary band
E3-E8 or MP. In such event, the Participant’s PEP Pension shall be recalculated hereunder. For this purpose, the PEP Guarantee under Section 4.2 is adjusted for in-service distributions and prior distributions in the same manner as
benefits are adjusted under the Salaried Plan, but by taking into account benefits under this Plan and any specified plans. 
 (b) Adjustment for Increased Pension Under Other Plans. If the benefit paid under a specified plan on behalf of a Participant is increased after PEP benefits on his behalf have been
determined (whether the increase is by order of a court, by agreement of the plan administrator of the specified plan, or otherwise), the PEP benefit for the Participant shall be recalculated. If the recalculation identifies an overpayment
hereunder, the Plan Administrator shall take such steps as it deems advisable to recover the overpayment. It is specifically intended that there shall be no duplication of payments under this Plan and any specified plans. 

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

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

  
 - 15 -

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

ARTICLE V – Death Benefits 
 5.1 Death Benefits. Each Participant entitled to a PEP Pension under this Plan who dies before his Annuity Starting Date shall be entitled to a death benefit equal in amount to the
additional death benefit to which the Participant would have been entitled under the Salaried Plan if the PEP Pension as determined under Article IV was payable under the Salaried Plan instead of this Plan. The death benefit with respect to a
Participant’s PEP Pension in excess of the Grandfathered Benefit shall become payable on the Participant’s date of death in a Single Lump Sum payment. 
 Payment of any death benefit of a Participant who dies before his Annuity Starting Date under the Plan shall be made to the persons and in the proportions to which any death benefit under the Salaried
Plan is or would be paid. 
 ARTICLE VI – Distributions 

The terms of this Article govern the distribution of benefits to a Participant who becomes entitled to payment of a PEP Pension under the
Plan. 
 6.1 Form and Timing of Distributions. Subject to Section 6.5, this Section shall govern the form and
timing of PEP Pensions. 

  
 - 16 -

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

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

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

(3) 2008 Reorganization. The entire PEP Pension of a Participant who (i) was involuntarily Separated from
Service on or after November 1, 2008 and on or before December 19, 2008; (ii) at the time of Separation from Service had attained age 50 and had not attained age 55, and had 10 or more years of Service; and (iii) is eligible for
special retirement benefits as described in the letter agreement executed and not revoked by the Participant, shall become payable in a Single Lump Sum on the last day of the Participant’s “Transition Period” as defined in the letter
agreement. 
 (4) Specified Employees. If a Participant is classified as a Specified Employee at the time
of the Participant’s Separation from Service (or at such other time for determining Specified Employee status as may apply under Section 409A), then no amount shall be payable pursuant to this Section 6.1(b) until at least six
(6) months after such a Separation from Service. Any payment otherwise due in such six month period 

  
 - 17 -

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

6.2 Special Rules for Survivor Options. 

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

(b) Nonspouse Beneficiaries. If a Participant’s beneficiary is not his Eligible Spouse, he may not
elect: 
 (1) The 100 percent survivor option described in Section 6.1(b)(2) with a nonspouse beneficiary
more than 10 years younger than he is, or 
 (2) The 75 percent survivor option described in
Section 6.1(b)(2) with a nonspouse beneficiary more than 19 years younger than he is. 
 6.3 Designation of
Beneficiary. A Participant who has elected to receive all or part of his pension in a form of payment that includes a survivor option shall designate a beneficiary 

  
 - 18 -

 
who will be entitled to any amounts payable on his death. Such designation shall be made on a PEP Election Form. A Participant shall have the right to change or revoke his beneficiary designation
at any time prior to when his election is finally effective. The designation of any beneficiary, and any change or revocation thereof, shall be made in accordance with rules adopted by the Plan Administrator. A beneficiary designation shall not be
effective unless and until filed with the Plan Administrator 
 6.4 Determination of Single Lump Sum
Amounts. Except as otherwise provided below, a Single Lump Sum payable under Article V or Section 6.1 shall be determined in the same manner as the single lump sum payment option prescribed in Section 6.1(b)(3) of the
Salaried Plan. 
 (a) Vested Pensions. If on the date of Separation from Service of a Participant
such Participant is not entitled to retire with an immediate pension under the Salaried Plan, the Single Lump Sum payable to the Participant under Section 6.1 shall be determined in the same manner as the single lump sum payment option
prescribed in Section 6.1(b)(3) of the Salaried Plan but substituting (for Plan Years beginning before 2012) the applicable segment rates for the blended 30 year Treasury and segment rates that would otherwise be applicable. 

(b) 2008 Reorganization. Notwithstanding subsection (a) above, the Single Lump Sum payment for a
Participant whose employment was involuntarily terminated as a result of the 2008 Reorganization on or after November 1, 2008 and on or before December 19, 2008 shall be determined based on the applicable interest rates and mortality used
by the Salaried Plan for optional lump sum distributions in December 2008, provided that in no event shall such Single Lump Sum payment be less than the Single Lump Sum determined based on the applicable interest rates and mortality used by the
Salaried Plan for lump sum distributions for the month in which the Single Lump Sum is distributed to the Participant. 
 6.5
Section 162(m) Postponement. Notwithstanding any other provision of this Plan to the contrary, no PEP Pension shall be paid to any Participant prior to the earliest date on which the Company’s federal income tax
deduction for such payment is not precluded by Section 162(m) of the Code. In the event any payment is delayed solely as a result of the preceding restriction, such payment shall be made as soon as administratively feasible following the first
date as of which Section 162(m) of the Code no longer precludes the deduction by the Company of such payment. Amounts deferred because of the Section 162(m) deduction limitation shall be increased by simple interest for the period of delay
at the annual rate of six percent (6%). 
 ARTICLE VII – Administration 

7.1 Authority to Administer Plan. The Plan shall be administered by the Plan Administrator appointed by the Company’s
Board of Directors or its delegate, who shall have all powers necessary or appropriate to enable the Plan Administrator to carry out the Plan Administrator’s administrative duties. Such powers and duties shall include, without limitation,

  
 - 19 -

 
the authority to interpret the Plan and determine all questions that may arise hereunder as to the status and rights of Employees, Participants and Beneficiaries. The Plan Administrator shall
maintain Plan records and make benefit calculations, and may rely upon information furnished it by the Participant in writing, including the Participant’s current mailing address, age and marital status. The Plan Administrator’s
interpretations, determinations, regulations and calculations shall be final and binding on all persons and parties concerned. The Company shall not be a fiduciary of the Plan for purposes of ERISA, and any restrictions that apply to a party in
interest under section 406 of ERISA shall not apply to the Company or otherwise under the Plan. 
 7.2 Facility of
Payment. Whenever, in the Plan Administrator’s opinion, a person entitled to receive any payment of a benefit or installment thereof hereunder is under a legal disability or is incapacitated in any way so as to be unable to manage his
financial affairs, the Plan Administrator may make payments to such person or to the legal representative of such person for his benefit, or the Plan Administrator may apply the payment for the benefit of such person in such manner as it considers
advisable. Any payment of a benefit or installment thereof in accordance with the provisions of this section shall be a complete discharge of any liability for the making of such payment under the provisions of the Plan. 

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

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

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

(c) A description of any additional material or information necessary for the claimant to submit to perfect the claim and
an explanation of why such material or information is necessary; and 
 (d) A description of the Plan’s
claim review procedure. The claim review procedure is available upon written request by the claimant to the Plan Administrator, or the designated party, within 60 days after receipt by the claimant of written notice of the denial of the claim, and
includes the right to examine pertinent documents and submit issues and comments in 

  
 - 20 -

 
writing to the Plan Administrator, or the designated party. The decision on review will be made within 60 days after receipt of the request for review, unless circumstances warrant an extension
of time not to exceed an additional 60 days, and shall be in writing and drafted in a manner calculated to be understood by the claimant, and include specific reasons for the decision with references to the specific Plan provisions on which the
decision is based. 
 If within a reasonable period of time after the Plan receives the claim asserted by the
Participant, the Plan Administrator, or the designated party, fails to provide a comprehensible written notice stating that the claim is wholly or partially denied and setting forth the information described in (a) through (d) above, the
claim shall be deemed denied. Once the claim is deemed denied, the Participant shall be entitled to the claim review procedure described in subsection (d) above. Such review procedure shall be available upon written request by the claimant to
the Plan Administrator, or the designated party, within 60 days after the claim is deemed denied. Any claim under the Plan that is reviewed by a court shall be reviewed solely on the basis of the record before the Plan Administrator at the time the
Plan Administrator’s determination was made. 
 7.4 Effect of Specific References. Specific references in the
Plan to the Plan Administrator’s discretion shall create no inference that the Plan Administrator’s discretion in any other respect, or in connection with any other provision, is less complete or broad. 

7.5 Limitations on Actions. Any claim filed under this Article VII and any action brought in state or federal court by or
on behalf of a Participant or a Beneficiary for the alleged wrongful denial of Plan benefits or for the alleged interference with ERISA-protected rights must be brought within three years of the date the Participant’s or Beneficiary’s
cause of action first accrues. Failure to bring any such cause of action within this three-year time frame shall preclude a Participant or Beneficiary, or any representative of the Participant or Beneficiary, from bringing the claim or cause of
action. Correspondence or other communications following the mandatory appeals process described in this Article VII shall have no effect on this three-year time frame. 
 ARTICLE VIII– Miscellaneous 
 8.1 Nonguarantee of
Employment. Nothing contained in this Plan shall be construed as a contract of employment between an Employer and any Employee, or as a right of any Employee to be continued in the employment of an Employer, or as a limitation of the right
of an Employer to discharge any of its Employees, with or without cause. 
 8.2 Nonalienation of Benefits.
Benefits payable under the Plan or the right to receive future benefits under the Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution, or levy of any
kind, either voluntary or involuntary, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise dispose of any right to benefits payable hereunder,

  
 - 21 -

 
including any assignment or alienation in connection with a divorce, separation, child support or similar arrangement, shall be null and void and not binding on the Company. The Company shall not
in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements or torts of any person entitled to benefits hereunder. 
 8.3 Unfunded Plan. The Company’s obligations under the Plan shall not be funded, but shall constitute liabilities by the Company payable when due out of the Company’s general
funds. To the extent the Participant or any other person acquires a right to receive benefits under this Plan, such right shall be no greater than the rights of any unsecured general creditor of the Company. 

8.4 Action by the Company. Any action by the Company under this Plan may be made by the Board of Directors of the Company
or by the Compensation Committee of the Board of Directors, with a report of any actions taken by it to the Board of Directors. In addition, such action may be made by any other person or persons duly authorized by resolution of said Board to take
such action. 
 8.5 Indemnification. Unless the Board of Directors of the Company shall determine otherwise, the
Company shall indemnify, to the full extent permitted by law, any employee acting in good faith within the scope of his employment in carrying out the administration of the Plan. 

8.6 Applicable Law. All questions pertaining to the construction, validity and effect of the Plan shall be
determined in accordance with the provisions of ERISA. In the event ERISA is not applicable or does not preempt state law, the laws of the state of New York shall govern. 
 If any provision of this Plan is, or is hereafter declared to be, void, voidable, invalid or otherwise unlawful, the remainder of the Plan shall not be affected thereby. 

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

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

  
 - 22 -

 9.2 Amendments. The Company may, in its sole discretion, make any amendment or
amendments to this Plan from time to time, with or without retroactive effect, at any time before the Participant’s Separation from Service. An Employer (other than the Company) shall not have the right to amend the Plan. Any amendments made to
the Plan shall be subject to any restrictions on amendment that are applicable to ensure continued compliance under Section 409A. 
 9.3 Termination. The Company may terminate the Plan and all other plans aggregated with the Plan pursuant to Treas. Reg. §1.409A-1(c), subject to the Section 409A distribution
timing provisions and the restrictions on maintaining future deferred compensation arrangements set forth in Treas. Reg. §1.409A-3(h)(2)(viii) (no new nonqualified plan within three years). 

The Company also may terminate the Plan and distribute all vested accrued benefits in a lump sum payment within twelve months after a
change in control as permitted under Section 409A. 
 The Company also may terminate the Plan and distribute all vested
accrued benefits in a lump sum payment as of the date of the corporate dissolution of the Company in a transaction taxable under Section 331 of the Code or in the event of the bankruptcy of the Company with the approval of the Bankruptcy Court
pursuant to 11 U.S.C. §504(b)(1). 
 In addition, the Company may terminate the Plan and distribute all vested benefits as
may otherwise be permitted by the Commissioner of the Internal Revenue Service under Section 409A. 
 A termination of the
Plan must comply with the provisions of Section 409A, including, but not limited to, restrictions on the timing of final distributions and the adoption of future deferred compensation arrangements. 

  
 - 23 -

 The above restated Plan is hereby adopted and approved, to be effective as of April 1,
2009 (except as otherwise provided), this 23rd day of December, 2009. 
  

									
		 		 	THE PEPSI BOTTLING GROUP, INC.
					
		 		 		 	By:	 	/s/ John Berisford
		 		 		 		 	John Berisford, Senior Vice President, Human Resources
			
	APPROVED	 		 	
				
	/s/ Christine Morace	 		 		 	
	Law Department	 		 		 	

  
 - 24 -

 APPENDIX 
 Foreword 
 This Appendix sets forth additional provisions applicable
to individuals specified in the Articles of this Appendix. In any case where there is a conflict between the Appendix and the main text of the Plan, the Appendix shall govern. 
 Article IPO – Transferred and Transition Individuals 
 IPO.1
Scope. This Article supplements the main portion of the Plan document with respect to the rights and benefits of Transferred and Transition Individuals following the spinoff of this Plan from the PepsiCo Prior Plan. 

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

(a) Agreement. The 1999 Employee Programs Agreement between PepsiCo, Inc. and The Pepsi Bottling
Group, Inc. 
 (b) Close of the Distribution Date. This term shall take the definition given it in
the Agreement. 
 (c) Transferred Individual. This term shall take the definition given it in the
Agreement. 
 (d) Transition Individual. This term shall take the definition given it in the
Agreement. 
 IPO.3 Rights of Transferred and Transition Individuals. All Transferred Individuals who participated
in the PepsiCo Prior Plan immediately prior to the Effective Date shall be Participants in this Plan as of the Effective Date. The spinoff of this Plan from the PepsiCo Prior Plan shall not result in a break in the Service or Credited Service of
Transferred Individuals or Transition Individuals. Notwithstanding anything in the Plan to the contrary, and as provided in Section 2.04 of the Agreement, all service, all compensation, and all other benefit-affecting determinations for
Transferred Individuals that, as of the Close of the Distribution Date, were recognized under the PepsiCo Prior Plan for periods immediately before such date, shall as of the Effective Date continue to receive full recognition, credit and validity
and shall be taken into account under this Plan as if such items occurred under this Plan, except to the extent that duplication of benefits would result. Similarly, notwithstanding anything to the contrary in the Plan, the benefits of Transition
Individuals shall be determined in accordance with section 8.02 of the Agreement. 

  
 - 25 -

 Article B – Special Cases 

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

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

B.3 Notwithstanding Article IV of the Plan, the amount of the total PEP Pension under this Plan shall be equal to the excess of
(1) the monthly pension benefit which would have been payable to such individual under the Salaried Plan without regard to the Compensation Limitation and the Section 415 Limitation, determined as if such individual’s employment
commencement date with the Company were September 10, 1990; (2) the sum of (i) the amount of the monthly pension benefit that is in fact payable under the Salaried Plan; and (ii) the monthly amount of such individual’s
deferred, vested benefit under any qualified or nonqualified defined benefit pension plan maintained by PepsiCo., Inc. or any affiliate of PepsiCo., Inc., Tricom or YUM!, as determined by the administrator using reasonable assumptions to adjust for
different commencement dates so that the total benefit of such individual does not exceed the amount described in (1) above. 
 B.4 In the event of the death of such individual while employed by the Company, the individual’s beneficiary shall be entitled to a death benefit as provided in Article V, determined based on the
formula for the total benefit described above, and reduced by the survivor benefits payable by the Salaried Plan and the other plans described above. The net amount so determined shall be payable in a Single Lump Sum as prescribed in Article V.

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

  
 - 26 -

 Article C – Transfers From/To PepsiCo, Inc. 

C.1 This Article supplements and overrides the main portion of the Plan with respect to Participants who (i) transfer from the
Company to PepsiCo, Inc.; and (ii) transfer from PepsiCo, Inc. to the Company. 
 C.2 Notwithstanding Article IV of the
Plan, the PEP Pension of a Participant who (i) transfers from the Company to PepsiCo., Inc. or (ii) transfers to PepsiCo, Inc. from the Company shall be determined as set forth below. 

C.3 Transfers to PepsiCo, Inc. The PEP Pension of a Participant who transfers to PepsiCo, Inc. shall be determined as of the date
of such transfer in the manner described in Article IV, including the Salaried Plan offset regardless of whether such benefit under the Salaried Plan is transferred to a qualified plan of PepsiCo, Inc. On such Participant’s Separation from
Service, the PEP Pension so determined shall become payable in accordance with Article VI. 
 C.4 Transfers from PepsiCo.,
Inc. The PEP Pension of a Participant who transfers from PepsiCo, Inc. shall be determined as of the date of the Participant’s Separation from Service in the manner described in Article IV and shall be reduced by any benefit accrued by the
Participant under any qualified or nonqualified plan maintained by PepsiCo, Inc. that is based on credited service included in the determination of the Participant’s benefit under this Plan so that the total benefit from all plans does not
exceed the benefit the Participant would have received had the Participant been solely employed by the Company. Notwithstanding the preceding, effective for transfers on or after January 1, 2005, in no event shall such benefit be less than the
benefit the Participant would have received based solely on the Participant’s employment by the Company. The Plan Administrator shall make such adjustments as the Plan Administrator deems appropriate to effectuate the intent of this Section
C.4. 

  
 - 27 -

 AMENDMENT TO THE 

PBG PENSION EQUALIZATION PLAN 
 RESTATEMENT EFFECTIVE APRIL 1, 2009 
 The PBG Pension Equalization Plan
Restatement Effective April 1, 20009 (the “Plan”) is hereby amended as set forth below, effective as of the “Effective Time” (as defined in Amendment No. 7 below) and contingent upon the occurrence of the Effective
Time. 
  

	1.	Section 1.1 is amended in its entirety to read as follows: 

 “1.1 History of Plan. The Pepsi Bottling Group, Inc. (“PBG”) established the PBG Pension Equalization Plan (“PEP” or “Plan”) effective April 6, 1999
for the benefit of salaried employees of the PBG Organization who participate in the PBG Salaried Employees Retirement Plan (“Salaried Plan”). The Plan was initially established as a successor plan to the PepsiCo Pension Equalization Plan,
due to PBG’s April 6, 1999 initial public offering, and the Plan included historical PepsiCo provisions which are relevant for eligibility and benefit determinations under the Plan. The Plan provides benefits for eligible employees whose
pension benefits under the Salaried Plan are limited by the provisions of the Internal Revenue Code of 1986, as amended. In addition, the Plan provides benefits for certain eligible employees based on the pre-1989 Salaried Plan formula. Effective
April 1, 2009, the Plan also provides benefits for employees whose eligible pay under the Salaried Plan is reduced due to the employees’ elective deferrals under the PBG Executive Income Deferral Program and for certain executives who
would be “Grandfathered Participants” under the Salaried Plan but for their classification as salary band E3-E8 or MP (or its equivalent, for periods on and after the Effective Time). The Plan is intended as a nonqualified unfunded
deferred compensation plan for federal income tax purposes. For purposes of the Employee Retirement Income Security Act of 1974 (“ERISA”), the Plan is structured as two plans. The portion of the Plan that provides benefits based on
limitations imposed by Section 415 of the Internal Revenue Code (the “Code”) is intended to be an “excess benefit plan” as described in Section 4(b)(5) of ERISA. The remainder of the Plan is intended to be a plan
described in Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA providing benefits to a select group of management or highly-compensated employees. 
 The Plan has been amended from time to time, most recently in the form of an amendment and complete restatement effective as of April 1, 2009 (“2009 Restatement”). PBG now wishes to further
amend the Plan as a result of the merger of PBG with and into Pepsi-Cola Metropolitan Bottling Company, Inc., a wholly-owned subsidiary of PepsiCo, Inc. (the “Company”), pursuant to the Agreement and

  
 1 

 
Plan of Merger dated as of August 3, 2009 among PBG, the Company and Pepsi-Cola Metropolitan Company, Inc., and to facilitate the Company’s assumption of PBG’s role as the
Plan’s sponsor. 
 NOW, THEREFORE, effective as of the Effective Time (as defined in Article
II) except as otherwise provided, the PBG Pension Equalization Plan is hereby amended as follows:” 
  

	2.	The definition of “Company or PBG” in Section 2.1(d) is deleted and replaced with the following: 

“(d) Company. PepsiCo, Inc., a corporation organized and existing under the laws of the State of North Carolina or its
successor or successors. For periods prior to the Effective Time, “Company” means The Pepsi Bottling Group, Inc.” 
  

	3.	The definition of “PBG Organization” in Section 2.1(i) is deleted and replaced with the following: 

“(i) PepsiCo/PBG Organization. The controlled group of organizations of which the Company is a part, as defined by
Section 414 of the Code and the regulations issued thereunder. An entity shall be considered a member of the PepsiCo/PBG Organization only during the period it is one of the group of organizations described in the preceding sentence. The
application of this definition for periods prior to the Effective Time shall take into account the different definition of “Company” that applies before the Effective Time.” 

 

	4.	The definition of “Plan Administrator” in Section 2.1(n) is amended to read as follows: 

“(n) Plan Administrator. The PepsiCo Administration Committee (PAC), which shall have authority to administer the Plan
as provided in Article VII.” 
  

	5.	The definition of “Separation from Service” in section 2.1(u) is amended to read as follows: 

“(u) Separation from Service. A Participant’s separation from service as defined in Section 409A.”

  

	6.	The definition of “Specified Employee” in Section 2.1(w) is amended by adding a new paragraph (4) at the end thereof to read as follows:

 “(4) Identification of Specified Employees On and After the Effective Time. Notwithstanding the
foregoing, for the periods on after the Effective Time, Specified Employees shall be identified as follows: 

  
 2 

 (i) For the period that begins on the Effective Time and ends on
March 31, 2010, Specified Employees shall be identified by combining the lists of Specified Employees of all Employers as in effect immediately prior to the Effective Time. The foregoing method of identifying Specified Employees is intended to
comply with Treas. Reg. § 1.409A-1(i)(6)(i), which authorizes the use of an alternative method of identifying Specified Employees that complies with Treas. Reg. §§ 1.409A-1(i)(5) and -1(i)(8) and Section VII.C.4.d of the Preamble to
the Final Regulations under Section 409A of the Code, which permits “service recipients to simply combine the pre-transaction separate lists of specified employees where it is determined that such treatment would be administratively less
burdensome.” 
 (ii) For periods beginning on or after April 1, 2010, Specified Employees under any
plan or arrangement sponsored by an Employer that is subject to Section 409A of the Code shall be identified in accordance with an alternative method of identifying Specified Employees under Treas. Reg. § 1.409A-1(i)(5) adopted on a global
basis by the Company for all such plans and arrangements, or if no such alternative method is adopted, in accordance with the default method for identifying Specified Employees under Treas. Reg. § 1.409A-1(i)(1), (2), (3) and (4).”

  

	7.	The following new definitions are added to Section 2.1: 

 “Effective Time. The date given to that term in the Agreement and Plan of Merger dated as of August 3, 2009, among The Pepsi Bottling Group, Inc., PepsiCo, Inc., and Pepsi-Cola
Metropolitan Bottling Company, Inc.” 
 “Employee. A individual who qualifies as an “Employee”
as that term is defined in the Salaried Plan.” 
 “Employer. An entity that qualifies as an
“Employer” as that term is defined in the Salaried Plan.” 
  

	8.	The lead-in paragraph of Section 4.2 is amended in its entirety to read as follows: 

“4.2 PEP Guarantee. Subject to the next sentence, a Participant who is eligible under subsection (a) below shall
be entitled to a PEP Guarantee benefit determined under subsection (b) below, if any. An individual whose eligibility under the Salaried Plan is restricted by a Home Plan Rules provision (e.g., the restriction in Appendix Article HPR of
the Salaried Plan) shall not be eligible to accrue any benefit under this Section 4.2 with respect to a period during which the individual is subject to such restriction.” 

 

	9.	Section 8.3 is amended to read as follows: 

 “8.3 Unfunded Plan. Obligations under the Plan shall constitute unfunded liabilities of a Participant’s Employer payable when due out of the Employer’s general

  
 3 

 
funds. To the extent a participant or any other person acquires a right to receive benefits under this Plan, such right shall be no greater than the rights of any unsecured general creditor of
the Employer.” 
  

	10.	Minor corrections to the Plan necessary to carry forth the above amendments, including re-alphabetizing and renumbering the defined terms in Article II to reflect
changes thereto, and corrections to cross-references affected by these amendments, shall be made as necessary after applying the foregoing amendments. 

 Dated this 19 day of February 2010. 
  

									
		 		 	THE PEPSI BOTTLING GROUP, INC.
					
		 		 		 	By:	 	/s/ John Berisford
		 		 		 		 	John Berisford
		 		 		 	Title:	 	Senior Vice President, Human Resources
			
	LAW DEPARTMENT APPROVAL:	 		 	
					
	By:	 	/s/ Christine Morace	 		 		 	
			
		 		 	Consented to and Approved by:
			
		 		 	PEPSICO, INC.
					
		 		 		 	By:	 	/s/ Cynthia M. Trudell
		 		 		 		 	Cynthia M. Trudell
		 		 		 	Title:	 	Senior Vice President and Chief Personnel Officer
				
	LAW DEPARTMENT APPROVAL:	 		 		 	
					
	By:	 	/s/ Stacy L. DeWalt	 		 		 	
		 	PepsiCo, Inc. Law Department	 		 		 	

  
 4 

 SECOND AMENDMENT TO THE 

PBG PENSION EQUALIZATION PLAN 
 RESTATEMENT EFFECTIVE APRIL 1, 2009 
 The PBG Pension Equalization Plan
(“Plan”) was amended and restated in its entirety effective as of April 1, 2009. The Plan was further amended effective February 26, 2010 to, among other things, transfer sponsorship of the Plan to PepsiCo, Inc.
(“Company”) in connection with the merger of The Pepsi Bottling Group, Inc., with and into Pepsi-Cola Metropolitan Bottling Company, Inc., a wholly-owned subsidiary of the Company. 

The Company now wishes to amend the Plan further as a result of the Company’s intention to merge the PBG Salaried Employees
Retirement Plan with and into the PepsiCo Salaried Employees Retirement Plan. 
 NOW, THEREFORE, the Plan is hereby amended
effective as of the date of the merger of the PBG Salaried Employees Retirement Plan with and into the PepsiCo Salaried Employees Retirement Plan, except as otherwise noted below, as follows: 

 

	1.	Section 2.1(q) is amended to read in its entirety as follows: 

“(q) Salaried Plan. The PepsiCo Salaried Employees Retirement Plan; as it may be amended from time to
time; provided that a Participant’s benefit under this Plan shall be determined solely by reference to the PBG Plan Merger Appendix to such plan as if such Appendix were a separate plan.” 

 

	2.	Article C of the Appendix to the Plan is amended, effective as of February 26, 2010, to add the following introductory paragraph: 

“The provisions of this Article C shall only apply to transfers that occur before February 26, 2010 and shall
not apply to any transfer to PepsiCo, Inc. or from PepsiCo, Inc. that occurs on or after such date.” 
 [The remainder of
this page is intentionally left blank. Signature page follows.] 

 IN WITNESS WHEREOF, PepsiCo, Inc. hereby adopts the foregoing Second Amendment this 14th day
of June, 2010. 
  

									
		 		 	PEPSICO, INC.
					
		 		 		 	By:	 	/s/ Cynthia M. Trudell
		 		 		 		 	Cynthia M. Trudell
		 		 		 		 	Senior Vice President and Chief Personnel Officer
			
	APPROVED:	 		 	
					
	By:	 	/s/ Stacy L. DeWalt	 		 		 	
		 	Stacy L. DeWalt, Employee Benefits	 		 		 	
		 	Attorney, Law Department	 		 		 	
		 	Date: May 26, 2010	 		 		 	

  
 -2-

 THIRD AMENDMENT TO THE 

PBG PENSION EQUALIZATION PLAN 
 RESTATEMENT EFFECTIVE APRIL 1, 2009 
 The PBG Pension Equalization Plan
(“Plan”) was amended and restated in its entirety effective as of April 1, 2009. The Plan was further amended effective February 26, 2010 to, among other things, transfer sponsorship of the Plan to PepsiCo, Inc.
(“Company”) in connection with the merger of The Pepsi Bottling Group, Inc., with and into Pepsi-Cola Metropolitan Bottling Company, Inc., a wholly-owned subsidiary of the Company; and effective June 14, 2010, to revise the
Plan’s definition of “Salaried Plan” to reflect the merger of the PBG Salaried Employees Retirement Plan with and into the PepsiCo Salaried Employees Retirement Plan. 

The Company now wishes to amend the Plan further to reflect changes in the Salaried Plan and to revise the statute of limitations
provision, and add venue provisions. 
 NOW, THEREFORE, the Plan is hereby amended effective as of January 1, 2011, as
follows: 
  

	1.	Section 3.1 is amended to read in its entirety as follows: 

 “3.1 Each Salaried Plan Participant whose benefit under the Salaried Plan is curtailed by the Compensation Limitation or the Section 415 Limitation, or both, and each other Salaried Plan
Participant (i) who is a Grandfathered Employee as defined in Section 3.7 of the Salaried Plan and who made elective deferrals to the EID on or after April 1, 2009 and before January 1, 2011 (inclusively); (ii) who would
have been considered a Grandfathered Participant as defined in Section 3.7 of the Salaried Plan during the period April 1, 2009 through December 31, 2010 if the Participant had not been classified by the Employer as salary band E3-E8
or MP on March 31, 2009; or (iii) whose 1988 pensionable “earnings” under the Salaried Plan, as described in Section 4.2(a), were $75,000 or more, shall participate in this Plan.” 

 

	2.	Section 4.1 is amended to read in its entirety as follows: 

 “4.1 PEP Pension. Subject to Sections 4.5 and 8.8, a Participant’s PEP Pension shall equal the amount determined under (a) or (b) of this Section 4.1, whichever is
applicable. Such amount shall be determined as of the date of the Participant’s Separation from Service. 

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

 (1) The greater of: 

(i) the monthly pension benefit which would have been payable to such Participant under the Salaried Plan without regard
to (I) the Compensation Limitation; (II) the Section 415 Limitation; (III) the exclusion from Earnings of amounts deferred at the election of the Participant under the EID on or after April 1, 2009 and before January 1, 2011; and
(IV) the April 1, 2009 through December 31, 2010 exclusion from the Salaried Plan definition of a Grandfathered Participant of a Participant who, as of March 31, 2009, was classified as salary band E3-E8 or MP and had attained age 50
and completed five years of Service or whose sum of his age and years of Service was at least 65; and 
 (ii) if
applicable, the amount determined in accordance with Section 4.2, expressed in such form and payable as of such time; over  
 (2) The amount of the monthly pension benefit that is in fact payable to such Salaried Plan Participant under the Salaried Plan, expressed in such form and payable as of such time. 

The amount of the monthly pension benefit so determined, less the portion of such benefit that is the Participant’s
Grandfathered Benefit, shall be payable as provided in Section 6.2. 
 (b) Different Form than
Salaried Plan. If a Participant’s PEP Pension will be paid in a different form (whether in whole or in part) or will commence as of a different time than his pension benefit under the Salaried Plan, his PEP Pension shall be the product
of: 
 (1) The greater of: 

(i) the monthly pension benefit which would have been payable to such Participant under the Salaried Plan without regard
to (I) the Compensation Limitation; (II) the Section 415 Limitation; (III) the exclusion from Earnings of amounts deferred at the election of the Participant under the EID on or after April 1, 2009 and before January 1, 2011; and
(IV) the March 31, 2009 through December 31, 2010 exclusion from the Salaried Plan definition of a Grandfathered Participant of a Participant who, as of such date, was classified as salary band E3-E8 or MP and had attained age 50 and
completed five years of Service or whose sum of his age and years of Service was at least 65; and 

  
 - 2 -

 (ii) if applicable, the amount determined in accordance with
Section 4.2, expressed in the form and payable as of such time as applies to his PEP Pension under this Plan, multiplied by 
 (2) A fraction, the numerator of which is the value of the amount determined in Section 4.1(b)(1), reduced by the value of his pension under the Salaried Plan, and the denominator of which is
the value of the amount determined in Section 4.1(b)(1) (with value determined on a reasonable and consistent basis, in the discretion of the Plan Administrator, with respect to similarly situated employees). 

The amount of the monthly pension benefit so determined, less the portion of such benefit that is the Participant’s
Grandfathered Benefit, shall be payable as provided in Section 6.2. 
 Notwithstanding the above, in the
event any portion of the accrued benefit of a Participant under this Plan or the Salaried Plan is awarded to an alternate payee pursuant to a qualified domestic relations order, as such terms are defined in Section 414(p) of the Code, the
Participant’s total PEP Pension shall be adjusted, as the Plan Administrator shall determine, so that the combined benefit payable to the Participant and the alternate payee from this Plan and the Salaried Plan is the amount determined pursuant
to subsections 4.1(a) and (b) above, as applicable.” 
  

	3.	The first paragraph of Section 4.2 is amended to read in its entirety as follows: 

“4.2 PEP Guarantee. Subject to Section 8.8, a Participant who is eligible under subsection
(a) below shall be entitled to a PEP Guarantee benefit determined under subsection (b) below, if any.” 
  

	4.	Section 4.2(b)(2)(iv) is amended to read in its entirety as follows: 

“(iv) April 1, 2009 Salaried Plan Changes.  

(A) The amount of the PEP Guarantee determined under this section for a Participant who, as of March 31, 2009, was
classified as salary band E3-E8 or MP and who had attained age 50 and completed five years of Service or (inclusively) whose sum of his age and years of Service was at least 65 shall be determined as if such Participant were a Grandfathered
Participant in the Salaried Plan on April 1, 2009 (so that Earnings and Credited Service were not frozen as of March 31, 2009 for the period April 1, 2009 through December 31, 2010). 

(B) Highest Average Monthly Earnings shall be determined without regard to the exclusion from Earnings under the Salaried
Plan of 

  
 - 3 -

 
amounts deferred at the election of the Participant under the EID on or after April 1, 2009 and before January 1, 2011.” 

 

	5.	The first paragraph of Section 4.5 is amended to read in its entirety as follows: 

“4.5 Vesting; Misconduct. Subject to Section 8.8, a Participant shall be fully vested in his
Accrued Benefit at the time he becomes fully vested in his accrued benefit under the Salaried Plan. Notwithstanding the preceding, or any other provision of the Plan to the contrary, a Participant shall forfeit his or her entire PEP Pension if the
Plan Administrator determines that such Participant has engaged in “Misconduct” as defined below, determined without regard to whether the Misconduct occurred before or after the Participant’s Severance from Service. The Plan
Administrator may, in its sole discretion, require the Participant to pay to the Employer any PEP Pension paid to the Participant within the twelve month period immediately preceding a date on which the Participant has engaged in such Misconduct, as
determined by the Plan Administrator.” 
  

	6.	Section 7.5 is amended to read in its entirety as follows: 

 “7.5 Limitations on Actions. Effective for claims and actions filed on or after January 1, 2011, any claim filed under Article VII and any action filed in state or federal court by
or on behalf of a former or current Employee, Participant, beneficiary or any other individual, person or entity (collectively, a “Petitioner”) for the alleged wrongful denial of Plan benefits or for the alleged interference with or
violation of ERISA-protected rights must be brought within two years of the date the Petitioner’s cause of action first accrues. For purposes of this subsection, a cause of action with respect to a Petitioner’s benefits under the Plan
shall be deemed to accrue not later than the earliest of (i) when the Petitioner has received the calculation of the benefits that are the subject of the claim or legal action (ii) the date identified to the Petitioner by the Plan
Administrator on which payments shall commence, or (iii) when the Petitioner has actual or constructive knowledge of the facts that are the basis of his claim. For purposes of this subsection, a cause of action with respect to the alleged
interference with ERISA-protected rights shall be deemed to accrue when the claimant has actual or constructive knowledge of the acts that are alleged to interfere with ERISA-protected rights. Failure to bring any such claim or cause of action
within this two-year time frame shall preclude a Petitioner, or any representative of the Petitioner, from filing the claim or cause of action. Correspondence or other communications following the mandatory appeals process described in
Section 7.3 shall have no effect on this two-year time frame.” 
  

	7.	A new Section 7.6 is added to the Plan, to read in its entirety as follows: 

“7.6 Restriction on Venue. Any claim or action filed in court or any other tribunal in connection with
the Plan by or on behalf of a Petitioner (as defined in Section 7.5 above) shall only be brought or filed in the United States 

  
 - 4 -

 
District Court for the Southern District of New York, effective for claims or actions filed on or after January 1, 2011.” 

 

	8.	A new Section 8.8 is added to the Plan, to read as follows: 

 “8.8 Section 457A. To avoid the application of Code section 457A (“Section 457A”) to a Participant’s PEP Pension, the following shall apply to a Participant who transfers
to a work location outside of the United States to provide services to a member of the PepsiCo Organization that is neither a United States corporation nor a pass-through entity that is wholly owned by a United States corporation (“Covered
Transfer”): 
 (a) The Participant shall automatically vest in his or her PEP Pension as of the last
business day before the Covered Transfer; 
 (b) From and after the Covered Transfer, any benefit accruals or
other increases or enhancements to the Participant’s Pension relating to – 
 (1) Service (as defined
in the Salaried Plan), or 
 (2) The attainment of a specified age while in the employment of the PepsiCo
Organization (“Age Attainment”), 
 (collectively, “Benefit Enhancement”) will not be credited to the
Participant until the last day of the Plan Year in which the Participant renders the Service or has the Age Attainment that results in such Benefit Enhancement, and then only to the extent permissible under subsection (c) below at that time;
and 
 (c) The Participant shall have no legal right to (and the Participant shall not receive) any Benefit
Enhancement that relates to Service or Age Attainment from and after the Covered Transfer to the extent such Benefit Enhancement would constitute compensation that is includable in income under Section 457A. 

Notwithstanding the foregoing, subsections (a) and (b) above shall not apply to a Participant who has a Covered Transfer if,
prior to the Covered Transfer, the Company provides a written communication (either to the Participant individually, to a group of similar Participants, to Participants generally, or in any other way that causes the communication to apply to the
Participant – i.e., an “Applicable Communication”) that these subsections do not apply to the Covered Transfer in question. Subsection (b) shall cease to apply as of the earlier of – (i) the date the Participant
returns to service for a member of the PepsiCo Organization that is a United States corporation or a pass-through entity that is wholly owned by a United States corporation, or (ii) the effective date for such cessation that is stated in an
Applicable Communication.” 

  
 - 5 -

 IN WITNESS WHEREOF, PepsiCo, Inc. hereby adopts the foregoing Third Amendment this 16th day
of December, 2010. 
  

									
		 		 	PEPSICO, INC.
					
		 		 		 	By:	 	/s/ Cynthia M. Trudell
		 		 		 		 	Cynthia M. Trudell
		 		 		 		 	 Senior Vice President, Human Resources
 Chief Personnel Officer

			
	APPROVED:	 		 	
					
	By:	 	/s/ Stacy L. DeWalt	 		 		 	
		 	Stacy L. DeWalt	 		 		 	
		 	 Employee Benefits Counsel
 Law
Department
	 		 		 	
				
	Date: November 30, 2010	 		 		 	

  
 - 6 -

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