EX-10.2






 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 Exhibit 10.2 

Execution Version 

EXCHANGE AGREEMENT 

ROYALTY PHARMA PLC 
 AND

 ROYALTY PHARMA HOLDINGS LIMITED 

AND 
 RPI US PARTNERS
2019, LP 
 AND 

RPI INTERNATIONAL HOLDINGS 2019, LP 

AND 
 RPI INTERNATIONAL
PARTNERS 2019, LP 
 AND 

RPI EPA HOLDINGS, LP 
  





 
 Eighth Floor 

Ten Bishops Square 
 London E1 6EG

 Tel: + 44 20 7012 9600 
 Fax: +
44 20 7012 9601 

  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 CONTENTS 
  

					
	 CLAUSE
	  	 PAGE

			
	 1.
	    	 Interpretation
	  	   2

			
	 2.
	    	 Investor Exchange
	  	   6

			
	 3.
	    	 EPA Exchange
	  	   8

			
	 4.
	    	 Adjustments to Exchange Rate
	  	 10

			
	 5.
	    	 Transfer Restrictions
	  	 11

			
	 6.
	    	 Restrictions on Exchanges
	  	 11

			
	 7.
	    	 Share Capital
	  	 11

			
	 8.
	    	 Assignment and Other Dealings
	  	 12

			
	 9.
	    	 Entire Agreement; Effective Date
	  	 12

			
	 10.
	    	 Variation and Waiver
	  	 13

			
	 11.
	    	 Costs and Expenses
	  	 13

			
	 12.
	    	 Notices
	  	 13

			
	 13.
	    	 Severance
	  	 16

			
	 14.
	    	 Third Party Rights
	  	 16

			
	 15.
	    	 Further Assurances
	  	 16

			
	 16.
	    	 Counterparts
	  	 16

			
	 17.
	    	 Governing Law and Jurisdiction
	  	 16

			
	 18.
	    	 Tax Treatment
	  	 16



  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 THIS EXCHANGE AGREEMENT (the “Agreement”) is entered into as a deed
and is made on 16 June 2020. 
 BETWEEN: 
  

	(1)	 ROYALTY PHARMA PLC, a public limited company incorporated in England and Wales with company number
12446913 and with its registered office at The Pavilions, Bridgwater Road, Bristol BS13 8AE (“Parent”); 


  

	(2)	 ROYALTY PHARMA HOLDINGS LIMITED, a private limited company incorporated in England and Wales with
company number 12453789 and with its registered office at The Pavilions, Bridgwater Road, Bristol BS13 8AE (“Holdings”); 


  

	(3)	 RPI US PARTNERS 2019, LP, a Delaware limited partnership (the “Continuing US Investors
Partnership”); 


  

	(4)	 RPI INTERNATIONAL HOLDINGS 2019, LP, a Cayman Islands limited partnership (the “Continuing
International Investors Partnership”); 


  

	(5)	 RPI INTERNATIONAL PARTNERS 2019, LP, a Cayman limited partnership (“RPI International
Partners ” and together with Continuing International Investors Partnership and Continuing US Investors Partnership, the “Continuing Investors Partnerships”); and 



 

	(6)	 RPI EPA HOLDINGS, LP, a Delaware limited partnership (“EPA Holdings”).



 RECITALS: 
  

	(A)	 In connection with the initial public offering of Parent A Shares (the “IPO”), the Parent
intends to consummate the transactions described in Recitals (B) and (C) below and in the Registration Statement on Form S-1 originally filed with the Commission on 22 May 2020, as amended
(Registration No. 333-238632). 


  

	(B)	 In connection with the IPO (i) the Continuing Investors Partnerships will hold Parent B Shares directly
or indirectly, and (ii) Holdings will issue Holdings B Shares to be held indirectly by the Continuing Investors Partnerships (to be held directly by the Depositary, who will issue Holdings B DRs to RPI International Partners and the Continuing
US Investors Partnership). 


  

	(C)	 In connection with the IPO, Holdings will also issue the Holdings C Share to EPA Holdings, which will
entitle EPA Holdings to bonus issuances of EPA B Shares by Holdings (to be issued to the Depositary, who will issue EPA B DRs to EPA Holdings) from time to time, in accordance with the terms of the Holdings Articles. 



 

	(D)	 The parties to this Exchange Agreement wish to provide for the exchange of (i) Holdings B DRs for
Parent A Shares, and (ii) EPA B DRs for Parent A Shares in connection with and either before or following the IPO, in each case on the terms and subject to the conditions set forth herein. 



 

	(E)	 Parent shall not have any obligation to acquire any Holdings B DRs or EPA B DRs pursuant to the terms of
this Agreement unless a Continuing Investors Partnership or EPA Holdings has properly exercised an Exchange Right with respect to such Holdings 



  
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 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  


	 	 
B DRs or EPA B DRs in accordance with the terms of and subject to the conditions of this Agreement. 


  

	(F)	 The Parties intend that any Exchange consummated hereunder be treated for U.S. federal income tax purposes,
to the extent permitted by law, as a taxable sale of Holdings B Shares, including for these purposes the EPA B Shares. 


  

	(G)	 In consideration of the mutual covenants and undertakings contained herein and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties have entered into this Agreement on the terms set out herein. 



IT IS AGREED as follows: 
  

	1.	 INTERPRETATION 



 

	1.1	 The following definitions shall apply in this Agreement: 



“Act” means the Companies Act 2006, as amended from time to time; 

“Business Day” means a day other than a Saturday, Sunday or public holiday in England when banks in London and New
York are open for business; 
 “Cede” means Cede & Co., nominee for DTC; 

“Code” means the Internal Revenue Code of 1986, as amended; 

“Commission” means the U.S. Securities and Exchange Commission or any successor thereto; 

“Continuing Investor” means an investor who holds an LP Interest; 

“Depositary” means any depositary, custodian or nominee approved by the Parent Board or the Holdings Board
(as applicable) that holds or will hold legal title to the Parent A Shares, Holdings B Shares or EPA B Shares (as applicable) for the purposes of facilitating beneficial ownership of such Parent A Shares, Holdings B Shares or EPA B Shares (as
applicable) by the Continuing Investors Partnerships or EPA Holdings or any Continuing Investors or EPA Investors (as applicable); 

“DTC” means The Depository Trust Company; 

“Encumbrance” means a mortgage, charge, pledge, lien, assignment, option, restriction, equity, right of first
refusal, right of pre-emption, third party right or interest, other encumbrance or security interest of any kind, or other type of deed or arrangements having similar effect; 

“EPA B DRs” means the depositary receipts issued by a Depositary to EPA Holdings in respect of the EPA B
Shares; 
 “EPA B Interests” means the EPA B DRs (together with the corresponding interest in EPA B Shares); 

  
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 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 “EPA B Shares” means the Holdings B Shares issued to EPA
Holdings in respect of equity performance awards awarded in accordance with the terms of the Holdings Articles and the terms of the Holdings C Share; 

“EPA Distribution Notice” means a written notice from an EPA Investor to EPA Holdings, in a form satisfactory
to EPA Holdings and substantially in the form attached hereto as Schedule 3; 
 “EPA Exchange” means an
exchange of EPA B Interests for Parent A Shares pursuant to the terms of this Agreement; 
 “EPA Exchange Closing
Date” has the meaning provided in clause 3.4; 
 “EPA Investor” means a person who holds
partnership interests in EPA Holdings; 
 “Exchange” means either an EPA Exchange or an Investor Exchange,
as the case may be; 
 “Exchange Election Notice” means a written notice from a Continuing Investor to a
Continuing Investors Partnership, substantially in the form attached hereto as Schedule 1; 
 “Exchange
Notice” means a written notice from the relevant Continuing Investors Partnership or EPA Holdings, as applicable, to each of Holdings and Parent, substantially in the form attached hereto as Schedule 2; 

“Exchange Rate” means the number of Parent A Shares receivable (i) for each Holdings B DR in an Investor
Exchange pursuant to clause 2 of this Agreement, or (ii) for each EPA B DR in an EPA Exchange pursuant to clause 3 of this Agreement. The initial Exchange Rate will be 1:1 and will be subject to further adjustments from time to time in
accordance with clause 4 of this Agreement; 
 “Exchange Right” means the right of the Continuing US
Investors Partnership or RPI International Partners to implement an Investor Exchange in accordance with the terms of this Agreement; 

“Governmental Entity” means any court, administrative agency, regulatory or self-regulatory body, commission
or other governmental authority, quasi-governmental organization, board, bureau, or instrumentality, domestic or foreign, and any subdivision, department or branch of any of the foregoing, or any private body exercising any tax, regulatory or
governmental or quasi-governmental authority or any securities exchange; 
 “Governmental Order” means any
writ, judgment, injunction, order, decree, stipulation, determination or award of any nature entered by or with any Governmental Entity with competent jurisdiction; 

“Holdings Articles” means the articles of association of Holdings in effect from time to time; 

  
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 Confidential Treatment Requested by Royalty Pharma plc 

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 “Holdings B DRs” means the depositary receipts issued by a
Depositary to the Continuing US Investors Partnership and RPI International Partners in respect of the Holdings B Shares; 

“Holdings B Interests” means the full beneficial ownership of and full entitlement to the Holdings B DRs
distributed (or to be distributed) by a Continuing Investors Partnership to a Continuing Investor pursuant to an Exchange Election Notice (together with the corresponding interest in Holdings B Shares); 

“Holdings B Shares” means the non-voting class B ordinary shares of
US$10.22343609 in the capital of Holdings as at the date hereof; 
 “Holdings Board” means the board of
directors of Holdings, as constituted from time to time; 
 “Holdings C Share” means the non-voting class C ordinary share of US$1 in the capital of Holdings as at the date hereof; 

“Investor Exchange” means an exchange of Holdings B Interests for Parent A Shares pursuant to the terms of
this Agreement; 
 “Investor Exchange Closing Date” has the meaning provided in clause 2.4; 

“IPO” has the meaning provided in Recital (A); 

“Lock-Up Agreements” means each of the respective lock-up agreements entered into in connection with the IPO between the underwriters to the IPO and certain individual counterparties thereto, pursuant to which such individual counterparties agree, among other
things, not to undertake certain dealings with respect to their interests in Parent A Shares without the consent of the underwriters; 

“Lock-Up Period” means the period of 180 days following the date of
the final prospectus relating to the IPO; 
 “LP Interest” means a limited partnership interest in the
Continuing US Investors Partnership or the Continuing International Investors Partnership; 
 “Parent A
DRs” means the depositary receipts issued by a Depositary to, or for the benefit of, the Continuing Investors or EPA Holdings in respect of the Parent A Shares; 

“Parent A Shares” means the voting ordinary class A shares of US$0.0001 each in the capital of Parent as at
the date hereof; 
 “Parent Articles” means the articles of association of Parent in effect from time to
time; 
 “Parent B Shares” means the voting class B shares of US$0.000001 each in the capital of Parent as
at the date hereof; 
 “Parent Board” means the board of directors of Parent, as constituted from time to
time; 

  
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 Confidential Treatment Requested by Royalty Pharma plc 

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 “Parent Deferred Shares ” means the deferred shares in the
capital of Parent; 
 “Parent Restricted A Shares ” has the meaning provided in clause 5.1; and 

“Securities Act” means the U.S. Securities Act of 1933, as amended, and the rules and regulations of the
Commission promulgated thereunder. 
  

	1.2	 Clause and Schedule headings shall not affect the interpretation of this Agreement. 



 

	1.3	 References to clauses and Schedules are to clauses of and Schedules to this Agreement and references to
paragraphs are to paragraphs of the relevant Schedule. 


  

	1.4	 The Schedules form part of this Agreement and shall have effect as if set out in full in the body of this
Agreement. Any reference to this Agreement includes the Schedules. 


  

	1.5	 A reference to this Agreement or to any other Agreement or document referred to in this Agreement is
a reference to this Agreement or such other agreement or document as varied, superseded or novated (in each case, other than in breach of the provisions of this Agreement or the provisions of the agreement or document in question, as appropriate)
from time to time. 


  

	1.6	 Unless the context otherwise requires, words in the singular shall include the plural and in the plural
shall include the singular. 


  

	1.7	 Unless the context otherwise requires, a reference to one gender shall include a reference to the other
genders. 


  

	1.8	 A “person” includes a natural person, corporate or unincorporated body (whether or not
having a separate legal personality). 


  

	1.9	 A reference to a party means an original party to this Agreement, together with their permitted
assigns 


  

	1.10	 A reference to a company shall include any company, corporation or other body corporate, wherever and
however incorporated or established. 


  

	1.11	 A reference to a holding company or a subsidiary means a holding company or a subsidiary (as
the case may be) as defined in section 1159 of the Act and for the purposes only of the membership requirement contained in sections 1159(1)(b) and (c), a company shall be treated as a member of another company even if its shares in that other
company are registered in the name of: 


  

	 	(a)	 another person (or its nominee), by way of security or in connection with the taking of security; or



  

	 	(b)	 its nominee. 


  

	1.12	 A reference to “writing” or “written” includes emails.



  

	1.13	 Any words following the terms “including”, “include”, “in
particular” or “for example ” or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms. 



  
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	1.14	 Where the context permits, other and otherwise are illustrative and shall not limit the sense
of the words preceding them. 


  

	1.15	 A reference to a statute or statutory provision is a reference to it as amended, extended or re-enacted from time to time, provided that, as between the parties, no such amendment, extension or re-enactment made after the date of this Agreement shall apply for the
purposes of this Agreement to the extent that it would impose any new or extended obligation, liability or restriction on, or otherwise adversely affect the rights of, any party. 



 

	1.16	 A reference to a statute or statutory provision shall include all subordinate legislation made from time to
time under that statute or statutory provision. 


  

	1.17	 Any obligation on a party not to do something includes an obligation not to allow that thing to be done.



  

	1.18	 A reference to a time of day is, unless otherwise stated, a reference to London time. 



 

	2.	 INVESTOR EXCHANGE 



 

	2.1	 Upon the terms and subject to the conditions of this clause 2, each Continuing Investors Partnership, upon
receipt of an Exchange Election Notice executed by, or on behalf of, a Continuing Investor in a form satisfactory to it, will, as soon as practicable thereafter and in any event within five Business Days of receipt of the Exchange Election Notice,
deliver an Exchange Notice and a copy of such Exchange Election Notice to the Parent and Holdings specifying the number of Holdings B Interests which are to be exchanged for Parent A Shares in accordance with the provisions of this clause 2.



  

	2.2	 No Investor Exchange shall be permitted (and, if attempted, shall be void ab initio) if, in the good faith
determination of Holdings, such Investor Exchange would pose a material risk that Holdings would be a “publicly traded partnership” as defined in Section 7704 of the Code, provided that an Investor Exchange will not be prohibited on
this basis for so long as Holdings continues to satisfy the “private placements” safe harbor pursuant to Section 1.7704-1 of the Treasury Regulations promulgated under Section 7704 of the
Code. 


  

	2.3	 Each Investor Exchange pursuant to this clause 2 shall be at the Exchange Rate in effect at the applicable
closing date of such Investor Exchange. 


  

	2.4	 If an Exchange Notice has been delivered pursuant to this clause 2, then subject to clauses 2.6 to 2.10, the
closing of such Investor Exchange shall occur within three Business Days of delivery of such Exchange Notice or such later date as may be agreed between the Continuing Investor Partnership delivering the relevant Exchange Notice, Holdings and the
Parent (the “Investor Exchange Closing Date”). 


  

	2.5	 On or before the Investor Exchange Closing Date, the parties shall take the following actions in order to
implement an Investor Exchange: 


  

	 	(a)	 the relevant Continuing Investors Partnership will take the actions which such Continuing Investors
Partnership has been authorized or instructed to take under the applicable Exchange Election Notice; 



  
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	 	(b)	 Parent will issue new Parent A Shares (as determined by reference to the applicable Exchange Rate) to the
nominee for the Depositary on behalf of the relevant Continuing Investor and instruct the Depositary to issue corresponding new Parent A DRs to, or for the benefit of, the Continuing Investor in consideration for the transfer to Parent of the
relevant Holdings B Interests; 


  

	 	(c)	 subject to clauses 2.6 and 2.7 below, as and to the extent applicable, Parent or the relevant Continuing
Investors Partnership will instruct the Depositary to (i) cancel such Parent A DRs, (ii) procure the transfer by its nominee of the underlying Parent A Shares to Cede, as nominee for DTC, and (iii) instruct DTC to credit the account
of the applicable DTC participant, for the benefit of the Continuing Investor, with the relevant number of Parent A Shares; and 


  

	 	(d)	 Parent will automatically re-designate into Parent Deferred Shares,
in accordance with the provisions of the Parent Articles, a number of Parent B Shares registered in the name of the relevant Continuing Investors Partnership equivalent to the number of Parent A Shares issued. 



 

	2.6	 If an Exchange Election Notice has been served in respect of Parent A Shares that are Parent Restricted A
Shares and/or subject to the terms of the Lock-Up Agreements, in each case to the extent applicable, then until such time as the Parent A Shares cease to be Parent Restricted Shares and/or subject to the terms
of the Lock-Up Agreements, the relevant Parent A Shares will continue to be held in the name of the nominee for the Depositary on behalf of the relevant Continuing Investor in accordance with the provisions of
clause 2.5(b) above, with the Continuing Investor holding Parent A DRs, or Parent A DRs being held on their behalf by one or more nominees. 


  

	2.7	 Subject to clause 2.6 above, if an Exchange Election Notice has been served by or on behalf of a Continuing
Investor in circumstances where the DTC participant account details, and associated contact information, are not specified in the Exchange Election Notice, then until such time as the relevant Continuing Investor provides such outstanding
information by notice in writing to each of Holdings, Parent and the Depositary, the relevant Parent A Shares to which the Continuing Investor is entitled will continue to be held in the name of the nominee for the Depositary on behalf of the
relevant Continuing Investor in accordance with the provisions of clause 2.5(b) above, with the Continuing Investor holding Parent A DRs, or Parent A DRs being held on their behalf by one or more nominees. 



 

	2.8	 The obligation of any of the parties to consummate an Investor Exchange in accordance with this clause 2
shall be subject to the condition that there shall be no Governmental Order that is then in effect that restrains or prohibits the Investor Exchange. 


  

	2.9	 Notwithstanding any other provision of this Agreement, the obligation of the Parent and Holdings to
consummate an Investor Exchange in accordance with this clause 2 shall be subject to the good faith determination by Parent that such Investor Exchange would not be prohibited by applicable law or regulation and would not violate any contract,
commitment, agreement, instrument, arrangement, understanding, obligation or undertaking to which the Parent or Holdings is subject. 


  

	2.10	 If, for any reason, Parent determines in its sole and absolute discretion that the mechanics for
implementing an Investor Exchange pursuant to clause 2.5 are not 



  
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 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  


	 	 
practicable, breach any applicable law or regulation or result in or may result in any adverse effect or require any onerous action (including for the avoidance of doubt, the preparation of any
valuation report under s.593 of the Act) then each of the parties agrees to enter into, authorize and approve (including through the provision of any necessary shareholder approvals) such alternative transaction structure as Parent may propose in
order to issue the same number of Parent A Shares as would otherwise have been issued through an Investor Exchange, including, without limitation: 


  

	 	(a)	 by delaying an Investor Exchange in order to comply with any applicable law or regulation (including,
without limitation, the production by Parent of a valuation report under s.593 of the Act); 


  

	 	(b)	 by cancelling the Holdings B Shares which are the subject of the relevant Investor Exchange, together with
any associated capital reduction of Holdings; or 


  

	 	(c)	 by transferring Holdings B Shares which are the subject of the relevant Investor Exchange rather than
transferring Holdings B DRs contemplated by the Exchange Election Notice representing such Holdings B Shares. 


  

	3.	 EPA EXCHANGE 



 

	3.1	 Upon the terms and subject to the conditions of this clause 3, EPA Holdings will, upon issuance of any EPA B
Shares, as soon as practicable thereafter and in any event within five Business Days of issuance of such EPA B Shares deliver an Exchange Notice to the Parent and Holdings specifying the number of EPA B Interests that are to be exchanged for Parent
A Shares in accordance with the provisions of this clause 3. 


  

	3.2	 No EPA Exchange shall be permitted (and, if attempted, shall be void ab initio) if, in the good faith
determination of Holdings, such EPA Exchange would pose a material risk that Holdings would be a “publicly traded partnership” as defined in Section 7704 of the Code, provided that an EPA Exchange will not be prohibited on this basis
for so long as Holdings continues to satisfy the “private placements” safe harbor pursuant to Section 1.7704-1 of the Treasury Regulations promulgated under Section 7704 of the Code



  

	3.3	 Each EPA Exchange pursuant to this clause 3 shall be at the Exchange Rate in effect at the applicable
closing date of such EPA Exchange. 


  

	3.4	 If an Exchange Notice has been delivered pursuant to this clause 3, then subject to clauses 3.6 to 3.9
below, the closing of such EPA Exchange shall occur within three Business Days of issuance of such Exchange Notice or such later date as may be agreed between EPA Holdings, Holdings and the Parent (the “EPA Exchange Closing Date”).



  

	3.5	 On or before the EPA Exchange Closing Date, the parties shall take the following actions in order to
implement an EPA Exchange: 


  

	 	(a)	 EPA Holdings will take all actions which are necessary to implement the EPA Exchange in accordance with the
terms of this Agreement; 


  

	 	(b)	 Parent will issue new Parent A Shares (as determined by reference to the applicable Exchange Rate) to the
nominee for the Depositary on behalf of EPA 



  
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Holdings and instruct the Depositary to issue corresponding new Parent A DRs to, or for the benefit of, EPA Holdings in consideration for the transfer to Parent of the relevant EPA B Interests,
provided that EPA Holdings may, in its sole discretion following receipt of an EPA Distribution Notice, subsequently transfer such Parent A DRs to an EPA Investor; and 



 

	 	(c)	 subject to clause 3.6 below, Parent or EPA Holdings will instruct the Depositary to (i) cancel such
Parent A DRs, (ii) procure the transfer by its nominee of the underlying Parent A Shares to Cede, as nominee for DTC, and (iii) instruct DTC to credit the accounts of the applicable DTC participant for the benefit of either EPA Holdings,
or, subject to prior receipt by EPA Holdings of an EPA Distribution Notice in respect of the relevant Parent A DRs, the relevant EPA Investor with the relevant number of Parent A Shares. 



 

	3.6	 If an Exchange Notice has been served in respect of Parent A Shares that are Parent Restricted A Shares
and/or subject to the terms of the Lock-Up Agreements, in each case to the extent applicable, then until such time as the Parent A Shares cease to be Parent Restricted Shares and/or subject to the terms of the
Lock-Up Agreements, the relevant Parent A Shares will continue to be held in the name of the nominee for the Depositary on behalf of EPA Holdings or the relevant EPA Investor (as applicable) in accordance with
the provisions of clause 3.5(b) above, with EPA Holdings or the relevant EPA Investor (as applicable) holding Parent A DRs or Parent A DRs being held on behalf of EPA Holdings or the relevant EPA Investor (as applicable) by one or more nominees.



  

	3.7	 The obligation of any of the parties to consummate an EPA Exchange in accordance with this clause 3 shall be
subject to the condition that there shall be no Governmental Order that is then in effect that restrains or prohibits the EPA Exchange. 


  

	3.8	 Notwithstanding any other provision of this Agreement, the obligation of the Parent and Holdings to
consummate an EPA Exchange in accordance with this clause 3 shall be subject to the good faith determination by Parent that such EPA Exchange would not be prohibited by applicable law or regulation and would not violate any contract, commitment,
agreement, instrument, arrangement, understanding, obligation or undertaking to which the Parent or Holdings is subject. 


  

	3.9	 If, for any reason, Parent determines in its sole discretion that the mechanics for implementing an EPA
Exchange pursuant to clause 3.5 are not practicable, breach any applicable law or regulation or result in or may result in any adverse effect or require any onerous action (including for the avoidance of doubt, the preparation of any valuation
report under s.593 of the Act) then each of the parties agrees to enter into, authorize and approve (including through the provision of any necessary shareholder approvals) such alternative transaction structure as Parent may propose in order to
issue the number of Parent A Shares as would otherwise have been issued through an EPA Exchange, including, without limitation: 


  

	 	(a)	 by delaying an EPA Exchange in order to comply with any applicable law or regulation (including, without
limitation, the production by Parent of a valuation report under s.593 of the Act); 



  
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	 	(b)	 by cancelling the EPA B Shares which are the subject of the relevant EPA Exchange, together with any
associated capital reduction of Holdings; and 


  

	 	(c)	 by transferring EPA B Shares which are the subject of the relevant EPA Exchange rather than transferring EPA
B DRs representing such EPA B Shares. 


  

	4.	 ADJUSTMENTS TO EXCHANGE RATE 



 

	4.1	 The Exchange Rate as of the date of this Agreement shall be 1:1. The Exchange Rate shall be adjusted
accordingly if there is (i) any subdivision of the Holdings B Shares into a greater number of Holdings B Shares or consolidation of the Holdings B Shares into a smaller number of Holdings B Shares (in each case howsoever effected, including by
way of share split, reverse share split, share distribution, reclassification, reorganization, recapitalization or otherwise) or any similar event, in each case that is not accompanied by an identical adjustment of the Parent A Shares, or
(ii) any sub-division of the Parent A Shares into a greater number of Parent A Shares or consolidation of the Parent A Shares into a smaller number of Parent A Shares (in each chase howsoever effected,
including by way of share split, reverse share split, share distribution, reclassification, reorganization, recapitalization or otherwise) or any similar event, in each case that is not accompanied by an identical adjustment of the Holdings B
Shares, in either case, an “Adjustment Event”. 


  

	    	 For example, and purely for illustrative purposes, if an Adjustment Event occurs pursuant to which each
Holdings B Share is sub-divided from one share of US$0.01 each into ten shares of US$0.001 each, then the Exchange Rate should be adjusted so that, immediately following such Adjustment Event, the Exchange
Rate would be 10:1, i.e. ten Holdings B Shares would be exchanged for one Parent A Share. 


  

	4.2	 If there is any reclassification, reorganization, recapitalization or other similar transaction in which the
Parent A Shares are converted or changed into another security, securities or other property, then upon any subsequent Exchange, Parent shall procure that the relevant Continuing Investors Partnership or EPA Holdings (as the case may be) shall
receive an amount of such security, securities or other property that such person would have received if such Exchange had occurred immediately prior to the effective date of such reclassification, reorganization, recapitalisation or other similar
transaction, taking into account any adjustment as a result of any subdivision into a greater number of securities or other property or consolidation into a smaller number of securities or other property (in each case howsoever effected, including
by way of share split, reverse share split, share distribution, reclassification, reorganization, recapitalization or otherwise) or any similar event that occurs after the effective time of such reclassification, reorganization, recapitalization or
other similar transaction. 


  

	4.3	 For the avoidance of doubt if there is any reclassification, reorganization, recapitalization or other
similar transaction in which the Parent A Shares are converted or changed into another security, securities or other property, Parent shall procure that this clause 4 shall continue to be applicable, mutatis mutandis, with respect to such
security or other property. 



  
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	5.	 TRANSFER RESTRICTIONS 



 

	5.1	 Each Continuing Investors Partnership understands and agrees, and EPA Holdings understands and agrees, that:



  

	 	(a)	 the Parent A Shares to be issued following completion of an Exchange (any such Parent A Shares, being
referred to herein as “Parent Restricted A Shares”) may not be transferred except in compliance with the Securities Act, any other applicable securities or “blue sky” laws, and the terms and conditions of this
Agreement; 


  

	 	(b)	 unless exchanged pursuant to an effective registration statement or Rule 144 under the Securities Act, the
Parent Restricted A Shares are restricted securities under the Securities Act and the rules and regulations promulgated thereunder; and 


  

	 	(c)	 it shall not transfer (or solicit any offers in respect of any transfer of any Parent Restricted A Shares),
except in compliance with the Securities Act, any other applicable securities or “blue sky” laws, and the terms and conditions of this Agreement. 


  

	5.2	 Any attempt to transfer any Parent Restricted A Shares otherwise than in compliance with this Agreement
shall be void ab initio, and Parent shall not, and shall cause any transfer agent not to, give any effect in Parent’s share register to such an attempted transfer. 



 

	6.	 RESTRICTIONS ON EXCHANGES 



 

	6.1	 If Parent is dissolved, liquidated or wound up for any reason, any Exchange Right shall expire upon final
distribution of the assets of the Parent pursuant to the operation of such dissolution, liquidation or winding-up process. 



 

	6.2	 Save for the transfer restrictions set out in clause 5, the provisions of clauses 6.1 above and any other
applicable provisions of this Agreement, the Exchange Right granted pursuant to the terms of this Agreement shall not have any restrictions on exercise. 


  

	7.	 SHARE CAPITAL 



 

	7.1	 Parent shall ensure to the fullest extent possible in accordance with applicable law that at all times it is
able to issue in compliance with its constitution and applicable law the maximum number of Parent A Shares required by applicable law for the purposes of issuing Parent A Shares upon the exchange of Holdings B DRs and Holdings B Shares or EPA B DRs
and EPA B Shares for Parent A Shares in accordance with the terms of this Agreement. 


  

	7.2	 If any Parent A Shares require registration with or approval of any Governmental Entity under any federal,
state or national law before such Parent A Shares may be issued following an Exchange, Parent shall use reasonable efforts to cause such Parent A Shares to be duly registered or approved, as the case may be. 



 

	7.3	 Parent shall list and register (where required) and use its reasonable efforts to maintain the listing and
registration (if applicable) of the Parent A Shares required to be delivered 



  
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upon completion of any Exchange prior to such delivery in accordance with the requirements of the securities exchange upon which the Parent A Shares are listed at the time of such Exchange (it
being understood that any such Parent A Shares may be subject to transfer restrictions under applicable securities laws). 


  

	7.4	 Subject to compliance by the Continuing Investors Partnerships and EPA Holdings with the relevant terms of
this Agreement applicable to each of them, Parent hereby covenants to the Continuing Investors Partnerships and EPA Holdings that all Parent A Shares issued upon an Exchange will, upon issuance, be validly issued and fully paid.



  

	7.5	 This Agreement shall apply to (i) the Holdings B DRs and Holdings B Shares held by the Continuing
Investors Partnerships as of the date hereof, (ii) any Holdings B DRs or Holdings B Shares acquired by the Continuing Investors Partnerships after the date hereof, and (iii) any EPA B DRs or EPA B Shares acquired by EPA Holdings after the
date hereof. This Agreement shall apply to, mutatis mutandis, and all references to Holdings B DRs, Holdings B Shares, EPA B DRs or EPA B Shares shall be deemed to include, any security, securities or other property of Parent or Holdings that
may be issued in respect of, in exchange for or in substitution of Holdings B DRs, Holdings B Shares, EPA B DRs or EPA B Shares, as the case may be, by reason of any distribution, dividend, subdivision or consolidation (howsoever effected, including
by way of share split, reverse share split, share distribution, reclassification, reorganization, recapitalization, merger, exchange (other than an Exchange) or other transaction). 



 

	7.6	 Save to the extent expressly contemplated by this Agreement (and to the extent within their power), Parent
and Holdings shall use all reasonable efforts to remove any impediment that in the good faith judgment of Parent and Holdings would cause any Exchange to be prohibited by applicable law or regulation or that would case an Exchange to violate any
contract, commitment, agreement, instrument, arrangement, understanding, obligation or undertaking to which the Parent or Holdings is subject. 


  

	8.	 ASSIGNMENT AND OTHER DEALINGS 



 

	    	 No party shall assign, transfer, mortgage, charge, subcontract, declare a trust over or deal in any other
manner with any or all of his rights and obligations under this Agreement (or any other document referred to in it) without the prior written consent of each of the other parties to this Agreement. 



 

	9.	 ENTIRE AGREEMENT; EFFECTIVE DATE 



 

	9.1	 This Agreement, together with the Parent Articles, the Holdings Articles and any Exchange Notice served in
accordance with the terms of this Agreement, constitutes the entire agreement between the parties and supersedes and extinguishes all previous discussions, correspondence, negotiations, drafts, agreements, promises, assurances, warranties,
representations, arrangements and understandings between them, whether written or oral, relating to its subject matter. 


  

	9.2	 Each party acknowledges that in entering into this Agreement, it does not rely on, and shall have no
remedies in respect of, any statement, representation, assurance or warranty (whether made innocently or negligently) that is not set out in this Agreement or any Exchange Notice served in accordance with the terms of this Agreement.




  
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	9.3	 Nothing in this clause 9 shall limit or exclude any liability for fraud. 



 

	10.	 VARIATION AND WAIVER 



 

	10.1	 No variation of this Agreement shall be effective unless it is in writing and signed by or on behalf of each
of the parties to this Agreement. 


  

	10.2	 A waiver of any right or remedy under this Agreement or by law is only effective if it is given in writing
and is signed by the party waiving such right or remedy. Any such waiver shall apply only to the circumstances for which it is given and shall not be deemed a waiver of any subsequent breach or default. 



 

	10.3	 A failure or delay by any party to exercise any right or remedy provided under this Agreement or by law,
whether by conduct or otherwise, shall not constitute a waiver of that or any other right or remedy, nor shall it prevent or restrict any further exercise of that or any other right or remedy. 



 

	10.4	 No single or partial exercise of any right or remedy provided under this Agreement or by law shall prevent
or restrict the further exercise of that or any other right or remedy. 


  

	10.5	 A person that waives a right or remedy provided under this Agreement or by law in relation to one person, or
takes or fails to take any action against that person, does not affect its rights or remedies in relation to any other person. 


  

	11.	 COSTS AND EXPENSES 



 

	11.1	 Except as expressly provided in this Agreement, each party shall pay its own costs and expenses incurred in
connection with the negotiation, preparation, execution and performance of this Agreement (and any documents referred to in it), provided that to the fullest extent permitted by applicable law Parent shall bear any transfer taxes, stamp taxes or
duties, or other similar taxes in connection with, or arising by reason of any Exchange. 


  

	11.2	 Parent shall promptly co-operate in all filings required to be made
under the Hart-Scott Rodino Antitrust Improvement Act of 1976, as amended in connection with any Exchange (but Parent shall not be obliged to bear and shall be reimbursed by the relevant Continuing Investors Partnership or EPA Holdings (as the case
may be) for the expenses of any such filing or of any information request from any Governmental Entity relating thereto). 


  

	12.	 NOTICES 


  

	12.1	 A notice given to a party under or in connection with this Agreement shall be in writing and shall be
delivered by hand or sent by pre-paid first-class post, recorded delivery or special delivery in each case to that party’s address, or sent by email to that party’s email address, in each case as
specified in clause 12.2 (or to such other address or email address as that party may notify to the other party in accordance with this Agreement). 


  

	12.2	 The addresses and email addresses for service of notices are: 



 

	 	(a)	 In the case of Parent: 



  
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 Confidential Treatment Requested by Royalty Pharma plc 

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	 	(i)	 address: its registered office address for the time being 



 

	 	    	 Royalty Pharma, plc 



	 	    	 110 East 59th Street 



	 	    	 New York, New York 10022; 



 

	 	(ii)	 email address:transfers@royaltypharma.com; and 



 

	 	(iii)	 attention: The Board of Directors, 



 

	 	(b)	 In the case of Holdings: 



 

	 	(i)	 address: its registered office address for the time being 



 

	 	    	 Royalty Pharma Holdings Ltd. 



	 	    	 c/o Royalty Pharma, plc 



	 	    	 110 East 59th Street 



	 	    	 New York, New York 10022; 



 

	 	(ii)	 email address: transfers@royaltypharma.com; and 



 

	 	(iii)	 attention: The Board of Directors; and 



 

	 	(c)	 In the case of the Continuing US Investors Partnership: 



 

	 	(i)	 address: 


  

	 	    	 RPI US Partners 2019, LP 



	 	    	 c/o Royalty Pharma, plc 



	 	    	 110 East 59th Street 



	 	    	 New York, New York 10022; 



 

	 	(ii)	 email address: transfers@royaltypharma.com; and 



 

	 	(iii)	 attention: The General Partner, 



 

	 	(d)	 In the case of the Continuing International Investors Partnership: 



 

	 	(i)	 address: 


  

	 	    	 RPI International Holdings 2019, LP 



	 	    	 c/o Royalty Pharma, plc 



	 	    	 110 East 59th Street 



	 	    	 New York, New York 10022 



 

	 	(ii)	 email address: transfers@royaltypharma.com; and 



 

	 	(iii)	 attention: The General Partner, 



 

	 	(e)	 In the case of RPI International Partners: 



  
 14 


  














 Confidential Treatment Requested by Royalty Pharma plc 

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	 	(i)	 address: 


  

	 	    	 RPI International Partners 2019, LP 



	 	    	 c/o Royalty Pharma, plc 



	 	    	 110 East 59th Street 



	 	    	 New York, New York 10022; 



 

	 	(ii)	 email address: transfers@royaltypharma.com; and 



 

	 	(iii)	 attention: The General Partner, 



 

	 	(f)	 In the case of EPA: 



 

	 	(i)	 address: 


  

	 	    	 RPI EPA Holdings, LP 



	 	    	 c/o Royalty Pharma, plc 



	 	    	 110 East 59th Street 



	 	    	 New York, New York 10022; 



 

	 	(ii)	 email address: transfers@royaltypharma.com; and 



 

	 	(iii)	 attention: The General Partner. 



 

	12.3	 A party may change its details for service of notices as specified in clause 12.2 by giving notice to the
other parties. Any change notified pursuant to this clause 12 shall take effect at 9.00 am on the later of the date (if any) specified in the notice as the effective date for the change or five Business Days after deemed receipt of the notice.



  

	12.4	 Delivery of a notice is deemed to have taken place (provided that all other requirements in this clause 12
have been satisfied) if delivered by hand, at the time the notice is left at the address, or if sent by email, at the time of transmission, provided that the subject line of the email identifies that it is a notice being given under this Agreement,
or if sent by pre-paid first class post, recorded delivery or special delivery on the second Business Day after posting unless, in each case, such deemed receipt would occur outside business hours (meaning
9.00 am to 5.30 pm Monday to Friday on a day that is not a public holiday in the place of deemed receipt), in which case deemed receipt will occur at 9.00 am on the day when business next starts in the place of deemed receipt (and, for the purposes
of this clause 12, all references to time are to local time in the place of deemed receipt). 


  

	12.5	 In providing service in accordance with clause 12.4 above, it shall be sufficient to prove (i) that
personal delivery was made, (ii) that the envelope containing such notice was properly addressed and delivered into the custody of the postal authority as a prepaid first class recorded delivery or airmail letter (as appropriate), (iii) that
the envelope containing such notice was properly addressed and delivered into the custody of the courier service provider, or (iv) that the email was sent to the correct email address of the recipient. 



 

	12.6	 This clause 12 does not apply to the service of any proceedings or other documents in any legal action.




  
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	13.	 SEVERANCE 



 

	    	 If any provision of this Agreement is held by any court of competent jurisdiction to be invalid, illegal or
unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part-provision shall be deemed deleted. Any modification to or
deletion of a provision or part-provision under this clause 13 shall not affect the validity and enforceability of the rest of this Agreement. 


  

	14.	 THIRD PARTY RIGHTS 



 

	14.1	 A person who is not a party to this Agreement shall not have any rights under the Contracts (Rights of Third
Parties) Act 1999 to enforce any term of this Agreement. 


  

	14.2	 The rights of the parties to terminate, rescind or agree any variation, waiver or settlement under this
Agreement are not subject to the consent of any other person. 


  

	15.	 FURTHER ASSURANCES 



 

	    	 Each party to this Agreement shall execute, deliver, acknowledge and file such other documents as may be
reasonably requested from time to time by any other party hereto to give effect to and carry out the transactions contemplated in this Agreement. 


  

	16.	 COUNTERPARTS 



 

	    	 This Agreement may be executed in any number of counterparts, each of which when executed and delivered
shall constitute a duplicate original, but all the counterparts shall together constitute the one agreement. 


  

	17.	 GOVERNING LAW AND JURISDICTION 



 

	17.1	 This Agreement and any dispute or claim arising out of or in connection with it or its subject matter or
formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the law of England and Wales. 



 

	17.2	 Each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to
settle any dispute or claim that arises out of or in connection with this Agreement or its subject matter or formation (including non-contractual disputes or claims). 



 

	18.	 TAX TREATMENT 



 

	    	 The parties to this Agreement intend that this Agreement shall be treated as part of the partnership
agreement of Holdings pursuant to Section 761(c) of the Code and Sections 1.704-1(b)(2)(ii)(h) and 1.761-1(c) of the Treasury Regulations promulgated thereunder.
Except as otherwise required by applicable law: (a) the parties shall report each Exchange consummated hereunder as a taxable sale of Holdings B Shares by a Continuing Investor or an EPA Investor (as applicable) to Parent; and (b) no party
shall take a contrary position on any income tax return, amendment thereof or communication with a taxing authority (unless a final “determination” within the meaning of Section 1313(a)(1) of the Code requires a different tax
treatment). 



  
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 Confidential Treatment Requested by Royalty Pharma plc 

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 IN WITNESS WHEREOF this Agreement has been executed and delivered as a Deed on the
date first stated above. 

  
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 Confidential Treatment Requested by Royalty Pharma plc 

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	  EXECUTED and DELIVERED as a DEED
	
	  for and on behalf of
	
	  ROYALTY PHARMA PLC
		
	By:	 	  /s/ Pablo Legorreta
	
	Name:   Pablo Legorreta
	
	Title:   Director

  
  

			
	IN THE PRESENCE OF:
		
	   
	 	   

	
	Witness’s signature:    /s/ Jason Mehar
	
	Witness’s name:   Jason Mehar
	
	 Witness’s address:   110 E. 59th Street, Suite 3300

                          
       New York, NY 10022



  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  


			
	  EXECUTED and DELIVERED as a DEED
	
	  for and on behalf of
	
	   ROYALTY PHARMA HOLDINGS

  LIMITED

		
	By:	 	  /s/ Pablo Legorreta
	
	Name: Pablo Legorreta
	
	Title: Director

  
  

			
	IN THE PRESENCE OF:
		
	   
	 	   

	
	Witness’s signature:    /s/ Jason Mehar
	
	Witness’s name: Jason Mehar
	
	 Witness’s address: 110 E. 59th Street, Suite 3300

                          
     New York, NY 10022



  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  


			
	  EXECUTED and DELIVERED as a DEED
	
	  for and on behalf of
	
	  RPI US PARTNERS 2019, LP
	
	 /s/ Pablo Legorreta

	
	Signature of Director/Authorised Signatory
	
	 Pablo Legorreta

	
	Print Name


  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  


			
	  EXECUTED and DELIVERED as a DEED
	
	  for and on behalf of
	
	   RPI INTERNATIONAL HOLDINGS 2019,

  LP

	
	 /s/ Pablo Legorreta

	
	Signature of Director/Authorised Signatory
	
	 Pablo Legorreta

	
	Print Name


  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  


			
	  EXECUTED and DELIVERED as a DEED
	
	  for and on behalf of
	
	   RPI INTERNATIONAL PARTNERS 2019,

  LP

	
	 /s/ Pablo Legorreta

	
	Signature of Director/Authorised Signatory
	
	 Pablo Legorreta

	
	Print Name


  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  


			
	  EXECUTED and DELIVERED as a DEED
	
	  for and on behalf of
	
	  RPI EPA HOLDINGS, LP
	
	 /s/ Pablo Legorreta

	
	Signature of Director/Authorised Signatory
	
	 Pablo Legorreta

	
	Print Name


  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 SCHEDULE 1 

EXCHANGE ELECTION NOTICE 

☐        The undersigned hereby irrevocably elects to exchange the number of its limited
partnership interests (“LP Interests”) indicated below in either RPI International Holdings 2019, LP, or RPI US Partners 2019, LP for Holdings B Interests and, subject to the terms of that certain Exchange Agreement dated [●]
2020 (“Exchange Agreement”), to immediately exchange such Holdings B Interests for Class A ordinary shares (the “Parent A Shares”) of Royalty Pharma plc (“Parent”). Capitalized terms used but
not defined herein shall have the meanings provided in the Exchange Agreement. 
 Number of RPI International Holdings 2019, LP 

LP Interests to be
exchanged                                       
                  
 Number of RPI US Partners 2019, LP 

LP Interests to be
exchanged                                       
                  
 The DTC
Participant Account into which the undersigned’s interests in Parent A Shares are to be received following completion of the Investor Exchange contemplated by this Exchange Election Notice (together with the undersigned’s contact
information) is as follows: 
 DTC Participant Account
Number                                        
         
 Contact
Information                                       
                                

                        
                                         
                                      

                        
                                         
                                      

By executing this Exchange Election Notice, the undersigned (i) confirms that the undersigned has received a copy of and
has reviewed the terms and conditions of the Exchange Agreement and irrevocably elects to exchange the number of its LP Interests indicated above for commensurate Holdings B Interests as satisfaction in full of all obligations of the relevant
Continuing Investors Partnerships in respect of such LP Interests; and (ii) irrevocably elects to exchange all Holdings B Interests received in respect of such LP Interests for Parent A Shares pursuant to the terms and conditions of the
Exchange Agreement. 
 The undersigned hereby represents and warrants and agrees that (i) the undersigned has full
legal capacity to execute and deliver this Exchange Election Notice and to perform the undersigned’s obligations hereunder; (ii) this Exchange Election Notice constitutes a legal, valid and binding obligation of the undersigned;
(iii) this Exchange Election Notice has been duly executed and delivered by the undersigned; (iv) the undersigned has valid title to the LP Interests free and clear of any Encumbrance; (v) the LP Interests will be transferred to the
applicable Continuing Investors Partnership free and clear of any Encumbrance, other than transfer restrictions imposed by or under applicable securities laws, the Exchange Agreement or any Lock-Up Agreement;
(vi) the Holdings B Interests will be transferred to the Parent free and clear of any Encumbrance, other than transfer restrictions imposed by or under applicable securities laws, the Exchange Agreement or any
Lock-Up Agreement; and (vii) no consent, approval, authorization, order, registration or qualification of any third party or Governmental Entity having jurisdiction over the undersigned or the LP
Interests or the Holdings B Interests is required to be obtained by the undersigned for the redemption of the LP Interests or transfer 

  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 
of such Holdings B Interests to the Parent. 
 Notwithstanding any
other provision herein, by providing this Exchange Election Notice, the undersigned (a) makes all of the representations and gives all of the warranties set out herein to each of the Parent and the relevant Continuing Investors Partnership,
(b) makes all of the representations and gives all of the warranties which it has previously provided to the relevant Continuing Investors Partnership in connection with its subscription for the LP Interests to the Parent in connection with the
Investor Exchange, which are deemed repeated to the Parent hereby, (c) confirms that such representations and warranties remain correct, (d) permits any documentation and supporting information containing such representations and
warranties or referred to in, or supplied in connection with, the same to be provided to the Parent, (e) agrees to notify the Parent as soon as reasonably practicable following becoming aware that any such representations and warranties are, or
may be, incorrect, and (f) authorizes the relevant Continuing Investors Partnership or Parent to take all such actions, do all such things and, on behalf of the Continuing Investor, approve, execute or sign and deliver all documents, consents,
forms of agreements, as are contemplated pursuant to the terms of this Exchange Election Notice and the Exchange Agreement or, in the absolute discretion of the relevant Continuing Investors Partnership, are reasonably necessary or desirable in
order to implement the Investor Exchange, including, amongst other matters: (i) providing instructions to the Depositary and/or DTC (via the Depositary or otherwise) on behalf of the relevant Continuing Investor, (ii) if applicable,
directing the Depositary to register the Continuing Investor as holder of the Holdings B DRs prior to completion of the Investor Exchange, (iii) directing the Depositary to register Parent as holder of the Holdings B DRs following completion of
the Investor Exchange, and (iv) providing or obtaining any shareholder approvals required or desirable to implement the Investor Exchange, including through any alternative procedure contemplated by clause 2.10 of the Exchange Agreement. 

On or prior to the Investor Exchange Closing Date (to the extent necessary to implement the Investor Exchange on the Investor
Exchange Closing Date): (a) each Continuing Investors Partnership is authorized to redeem such LP Interests in the relevant Continuing Investors Partnership as is set out above and (b) subject to clause 2.10 of the Exchange Agreement, in
consideration for the redemption contemplated in the preceding clause (a), the relevant Continuing Investors Partnership will be authorized by the undersigned to distribute and, if applicable, subsequently, to instruct the Depositary to transfer the
number of Holdings B DRs corresponding to the number of LP Interests specified herein, in accordance with the instructions set out herein, on behalf of the undersigned to Parent. 

If the Investor Exchange is implemented in accordance with the terms of Section 12.4.3 of the limited partnership
agreement of the Continuing US Investors Partnership, the undersigned authorizes the Continuing US Investors Partnership to take all such actions, do all such things and, on behalf of the Continuing Investor, approve, execute or sign and deliver all
documents, consents, forms of agreements, as are, in the absolute discretion of the Continuing US Investors Partnership, reasonably necessary or desirable in relation to the treatment of 8% of the Continuing Investor’s LP Interests held as at
the date of this Agreement (the “Restricted LP Interests”) taking account of the arrangements contemplated by the limited partnership agreement of the Continuing US Investors Partnership or otherwise, including, without limitation,
the treatment of the Restricted LP Interests in accordance with the special limited partnership interest issued to the general partner of the Continuing US Investors Partnership pursuant to the terms of Annex C of the limited partnership agreement
of the Continuing US Investors Partnership. 

  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 The undersigned hereby reaffirms and acknowledges its obligations under the
limited partnership agreement of the applicable Continuing Investors Partnership to comply with and join and enter into the Lock-Up Agreement, to the extent that the
Lock-Up Period continues to apply. By signing and returning this Exchange Election Notice, to the extent that the Lock-Up Period continues to apply, the undersigned
accepts and agrees to be bound by and subject to all of the terms and conditions of and agreements contained in the Lock-Up Agreement, with all attendant rights, duties and obligations thereunder. If the Lock-Up Period continues to apply at the time of execution of this Exchange Election Notice, the undersigned has attached to this Exchange Election Notice, or hereby instructs the applicable Continuing Investors
Partnership to execute on its behalf and attach to this Exchange Election Notice, a duly executed signature page to the Lock-Up Agreement, in substantially the form attached as Appendix 1 to this Exchange
Election Notice, and the undersigned acknowledges and agrees that the parties to the Lock-Up Agreement may treat the execution and delivery of such signature page by, or on behalf of, the undersigned as the
execution and delivery of the Lock-Up Agreement by the undersigned and, upon receipt of this Exchange Election Notice by the applicable Continuing Investors Partnership, the signature by or on behalf of the
undersigned shall constitute a counterpart signature to the signature page of the Lock-Up Agreement. 

The undersigned hereby acknowledges and agrees that: 

 

	 	(a)	 the Parent Restricted A Shares to be issued following completion of an Exchange may not be transferred
except in compliance with the Securities Act, any other applicable securities or “blue sky” laws, and the terms and conditions of the Exchange Agreement; 



 

	 	(b)	 unless exchanged pursuant to an effective registration statement or Rule 144 under the Securities Act, the
Parent Restricted A Shares are restricted securities under the Securities Act and the rules and regulations promulgated thereunder; and 


  

	 	(c)	 it shall not transfer (or solicit any offers in respect of any transfer of any Parent Restricted A Shares)
except in compliance with the Securities Act, any other applicable securities or “blue sky” laws, and the terms and conditions of the Exchange Agreement. 



The parties hereto intend that this Exchange Election Notice shall be treated as part of the partnership agreement of Holdings
pursuant to Section 761(c) of the Code and Sections 1.704-1(b)(2)(ii)(h) and 1.761-1(c) of the Treasury Regulations promulgated thereunder. Except as otherwise
required by applicable law: (a) the parties shall report each Exchange consummated hereunder as a taxable sale of Holdings B Shares by a Continuing Investor to Parent; and (b) no party shall take a contrary position on any income tax
return, amendment thereof or communication with a taxing authority (unless a final “determination” within the meaning of Section 1313(a)(1) of the Code requires a different tax treatment). 

The undersigned hereby irrevocably constitutes and appoints each officer of RPI EPA Holdings, LP as the attorney-in-fact and agent of the undersigned, with full power of substitution, as its true and lawful
attorneys-in-fact and agents to do any and all things and to take any and all actions that may be necessary or desirable, in the absolute discretion of RPI EPA Holdings,
LP, to implement the Investor Exchange which is the subject of this Exchange Election Notice or anything otherwise contemplated by this Exchange Election Notice. 

  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 The undersigned hereby agrees that each of the Parent and the relevant
Continuing Investors Partnership shall have the right to enforce against the undersigned any of the representations made or warranties given by the undersigned in favour of the Parent and the relevant Continuing Investors Partnership pursuant to the
terms of this Exchange Election Notice. 
 This Exchange Election Notice should be executed and mailed, delivered or e-mailed to RPI EPA Holdings, LP, at the following address or email address:  
 By Regular,
Registered or Certified Mail; Hand or Overnight Delivery: 
 [RPI International Holdings 2019, LP]/[RPI US Partners 2019, LP]1 
 c/o RPI EPA Holdings, LP 

110 East 59th Street, Suite 3300 

New York, NY 10022 
 (212) 883-2288 
 By E-mail Transmission: 

transfers@royaltypharma.com 

Subject Line: Exchange Election 

Notwithstanding the place where this Exchange Election Notice has been executed by the undersigned, it is expressly agreed
that all of the terms and provisions hereof shall be governed by and construed under the laws of the State of New York applicable to contracts made and to be entirely performed in such state. 

To the fullest extent permitted by law, in the event of any proceedings arising out of the terms and conditions of this
Exchange Election Notice, the parties hereto irrevocably (i) consent and submit to the exclusive jurisdiction of the Supreme Court, State of New York, New York County and of the U.S. District Court for the Southern District of New York,
(ii) waive any defense based on doctrines of venue or forum non conveniens, or similar rules and doctrines, and (iii) agree that all claims in respect of such a proceeding must be heard and determined exclusively in the Supreme
Court, State of New York, New York County or the U.S. District Court for the Southern District of New York. Process in any such proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such
court. 
 IN WITNESS WHEREOF, the undersigned has executed this Exchange Election Notice this
     day of
                                    . 2020. 

 

			
		 	LIMITED PARTNER:
		
		 	 
		 	 (write name of Limited Partner)

		
		 	
By:                      
                                         
  

	 Name:
	 	
	 Title:
	 	


  

1 Delete as applicable 

  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 Acknowledgement by Continuing Investors Partnership 

[RPI International Holdings 2019, LP]/[RPI US Partners 2019, LP]2 acknowledges receipt of
this Exchange Election Notice and further acknowledges that, immediately following the redemption of the LP Interests in accordance with the terms of this Exchange Election Notice, the full beneficial ownership of and the full entitlement to the
Holdings B DRs the subject of this Exchange Election Notice will pass to the relevant Continuing Investor, and accordingly [RPI International Holdings 2019, LP]/[RPI US Partners 2019, LP]3 will no
longer hold such Holdings B DRs as its property but on behalf of, and to the order of, the relevant Continuing Investor. 
 Signed for and
on behalf of [RPI International Holdings 2019, LP]/[RPI US Partners 2019, LP]4 
  

                       
                                         

 By: RPI EPA Holdings, LP 
 in its capacity as general
partner of 
 [RPI International Holdings 2019, LP]/[RPI US Partners 2019,LP]5 

 
  

2 Delete as applicable 

3 Delete as applicable 

4 Delete as applicable 

5 Delete as applicable 

  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 Annex 1 to Exchange Election Notice 

Form of signature page to Lock-Up Agreement 

 

			
	 Very truly yours,

		
	  
	 	  

		 	 Exact Name of Holder

		
		 	  

		 	 Authorized Signature

		
		 	  

		 	 Name of Authorized Signatory, if applicable

		
		 	  

		 	 Title of Authorized Signatory, if applicable




  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 SCHEDULE 2 

EXCHANGE NOTICE 
 [On
letterhead of relevant Continuing Investors Partnership or EPA Holdings] 
 Royalty Pharma PLC 

Suite 1, 3rd Floor 

11-12 St. James’s Square 

London 
 United Kingdom 

Royalty Pharma Holdings Limited 
 Suite 1, 3rd Floor 
 11-12 St. James’s Square 

London 
 United Kingdom 

[DATE] 
 Exchange Notice 

We refer to the Exchange Agreement entered into on [●] 2020 between Royalty Pharma PLC, Royalty Pharma Holdings Limited, RPI US Partners
2019, LP, RPI International Holdings 2019, LP, RPI International Partners 2019, LP and RPI EPA Holdings, LP (the “Exchange Agreement”). 

Terms defined in the Exchange Agreement shall have the same meaning when used in this notice. 

[This notice constitutes an Exchange Notice for the purposes of clause 2.1 of the Exchange Agreement and we hereby confirm that we have
received a validly completed and executed Exchange Election Notice from a Continuing Investor specifying that such Continuing Investor wishes to exchange the number of LP Interests specified in the attached Exchange Election Notice for Parent A
Shares in accordance with the terms of the Exchange Agreement and we hereby confirm that [●] Holdings B DRs be exchanged for Parent A Shares in accordance with the terms of the Exchange Agreement. 

Simultaneously with the issuance of the relevant Parent A Shares in accordance with the terms of clause 2 of the Exchange Agreement, an
equivalent number of Parent B Shares registered in the name of the undersigned should be re-designated into Parent Deferred Shares.]6 

[This notice constitutes an Exchange Notice for the purposes of clause 3.1 of the Exchange Agreement and we hereby confirm that we have been
issued with [●] EPA B Interests by Holdings which are to be exchanged for Parent A Shares in accordance with the terms of the Exchange Agreement.]7 

 
  

6 Delete in the context of an EPA Exchange. 

7 Delete in the context of an Investor Exchange 

  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 Yours sincerely 
  

                       
                              

[Name of relevant Continuing Investors Partnership]/[EPA Holdings] 

  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 SCHEDULE 3 

EPA DISTRIBUTION NOTICE 

The undersigned acknowledges that Royalty Pharma Holdings Limited (“Holdings”) has issued EPAs to RPI EPA Holdings,
LP (“EPA Holdings”) in accordance with the terms of the Holdings Articles. Capitalized terms used but not defined herein shall have the meanings provided in the Exchange Agreement dated [●], 2020 (“Exchange
Agreement”). 
 The DTC Participant Account into which the undersigned’s interests in Parent A Shares are to
be received following completion of an applicable EPA Exchange (together with the undersigned’s contact information) is as follows: 

DTC Participant Account
Number                                        
                                         
    
 Contact
Information                                       
                                        
                             

                     
                                         
                                         
                                      

                     
                                         
                                         
                                      

The undersigned further acknowledges that, pursuant to the terms of clause 3.1 of the Exchange Agreement, following the
issuance of EPA B Shares to EPA Holdings in satisfaction of EPAs, EPA Holdings shall serve notice on each of Parent and Holdings to exchange its EPA B Interests for Parent A Shares in accordance with the terms of the Exchange Agreement 

The undersigned hereby represents and warrants and agrees that (i) the undersigned has full legal capacity to execute and
deliver this EPA Distribution Notice and to perform the undersigned’s obligations hereunder; (ii) this EPA Distribution Notice constitutes a legal, valid and binding obligation of the undersigned; and (iii) this EPA Distribution
Notice has been duly executed and delivered by the undersigned. 
 By providing this EPA Distribution Notice, the
undersigned (a) makes all of the representations and gives all of the warranties set out herein to each of the Parent and EPA Holdings, and (b) authorizes EPA Holdings or Parent to take all such actions, do all such things and on behalf of
the undersigned approve, execute or sign and deliver all documents, consents, forms or agreements as, in the absolute discretion of EPA Holdings, are reasonably necessary or desirable in order to implement any distribution or transfer of Parent A
DRs or Parent A Shares to the undersigned at any time following completion of an EPA Exchange, including, amongst other matters, providing instructions to the Depositary and/or DTC (via the Depositary or otherwise) on behalf of the undersigned. 

The undersigned hereby acknowledges its obligations to comply with and join and enter into the
Lock-Up Agreement, to the extent that the Lock-Up Period continues to apply. By signing and returning this EPA Distribution Notice, to the extent that the Lock-Up Period continues to apply, the undersigned accepts and agrees to be bound by and subject to all of the terms and conditions of and agreements contained in the Lock-Up
Agreement, with all attendant rights, duties and obligations thereunder. The parties to the Lock-Up Agreement shall treat the execution and delivery hereof by the undersigned as the execution and delivery of
the Lock-Up Agreement by the undersigned and, upon receipt of this EPA Distribution Notice by EPA Holdings, the signature by or on behalf of the undersigned set forth below shall constitute a counterpart
signature to the signature page of the Lock-Up Agreement. 

  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 The undersigned hereby acknowledges and agrees that: 

 

	 	(a)	 the Parent Restricted A Shares to be issued following completion of an EPA Exchange may not be transferred
except in compliance with the Securities Act, any other applicable securities or “blue sky” laws, and the terms and conditions of the Exchange Agreement; 



 

	 	(b)	 unless exchanged pursuant to an effective registration statement or Rule 144 under the Securities Act, the
Parent Restricted A Shares are restricted securities under the Securities Act and the rules and regulations promulgated thereunder; and 


  

	 	(c)	 it shall not transfer (or solicit any offers in respect of any transfer of any Parent Restricted A Shares)
except in compliance with the Securities Act, any other applicable securities or “blue sky” laws, and the terms and conditions of the Exchange Agreement. 



The parties hereto intend that this EPA Distribution Notice shall be treated as part of the partnership agreement of Holdings
pursuant to Section 761(c) of the Code and Sections 1.704-1(b)(2)(ii)(h) and 1.761-1(c) of the Treasury Regulations promulgated thereunder. Except as otherwise
required by applicable law: (a) the parties shall report each Exchange consummated hereunder as a taxable sale of Holdings B Shares by EPA Holdings to Parent; and (b) no party shall take a contrary position on any income tax return,
amendment thereof or communication with a taxing authority (unless a final “determination” within the meaning of Section 1313(a)(1) of the Code requires a different tax treatment). 

The undersigned hereby irrevocably constitutes and appoints each officer of EPA Holdings as the
attorney-in-fact and agent of the undersigned, with full power of substitution, as its true and lawful
attorneys-in-fact and agents to do any and all things and to take any and all actions that may be necessary to distribute or transfer Parent A DRs or Parent A Shares to
the undersigned at any time following completion of an EPA Exchange. 
 The undersigned hereby agrees that each of the
Parent and EPA Holdings shall have the right to enforce against the undersigned any of the representations made or warranties given by the undersigned in favour of the Parent and EPA Holdings pursuant to the terms of this EPA Distribution Notice.

 This EPA Distribution Notice should be executed and mailed, delivered or e-mailed
to EPA Holdings, at the following address or email address:  
 By Regular, Registered or Certified Mail; Hand or Overnight
Delivery: 
 RPI EPA Holdings, LP 

110 East 59th Street, Suite 3300 

New York, NY 10022 
 (212) 883-2288 
 By E-mail Transmission: 

transfers@royaltypharma.com 

Subject Line: Exchange Election 

  














 Confidential Treatment Requested by Royalty Pharma plc 

Pursuant to 17 C.F.R. Section 200.83 
  

 Notwithstanding the place where this EPA Distribution Notice has been
executed by an EPA Investor, it is expressly agreed that all of the terms and provisions hereof shall be governed by and construed under the laws of the State of New York applicable to contracts made and to be entirely performed in such state. 

To the fullest extent permitted by law, in the event of any proceedings arising out of the terms and conditions of this EPA
Distribution Notice, the parties hereto irrevocably (i) consent and submit to the exclusive jurisdiction of the Supreme Court, State of New York, New York County and of the U.S. District Court for the Southern District of New York,
(ii) waive any defense based on doctrines of venue or forum non conveniens, or similar rules and doctrines, and (iii) agree that all claims in respect of such a proceeding must be heard and determined exclusively in the Supreme
Court, State of New York, New York County or the U.S. District Court for the Southern District of New York. Process in any such proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such
court. 
 IN WITNESS WHEREOF, the undersigned has executed this EPA Distribution Notice this
         day of
                                         
       . 2020. 
  

			
	EPA INVESTOR:
	
	  

	 (write name of EPA Investor)

		
	 By:
	 	  

		 	     Name:

		 	     Title: