Document:

Exhibit 10.2

 

PROCESSING AND PRODUCTION OUTSOURCING CONTRACT

 

Party A: Harbin Ice Lantern Noodle Factory

 

Party B:  Harbin Hainan Kang-Da Cactus Health Food Co., Ltd.

 

Under the principle of mutual support, mutual benefit and common
development, Party A and Party B have entered into the following agreement
regarding the outsourcing of the production and processing of Cactus Original
Flavor Noodle by Party B to Party A:

 

1.               The term of
cooperation will be 3 years: Party A shall produce 10-20 tons of fine quality
Cactus Original Flavor Noodle monthly in accordance with Party B’s
requirements. Inspection reports (according to national standards) shall be
issued and the products can only leave the factory after passing the quality
inspection.

 

2.               After receiving the
written order for processing from Party B, Party A shall give priority to the
production and organize the production in strict compliance with the processing
and technical specifications set out by Party B.

 

3.               Party A shall be
responsible for providing the flour for production of Cactus Original Flavor
Noodle for Party B, which shall be Party A’s own Premium Grade II flour. The
unit price shall be RMB 1.00 Yuan/500g (this price is
subject to change according to the market price upon a 15-day notice by Party A
to Party B), and the processing fee will be RMB 0.25
Yuan/500g.

 

4.               Before Party B
requests Party to start the processing of Cactus Original Flavor Noodle, Party
B shall provide the quality requirements and technical specifications, and
supply the raw materials and additives for the production of Cactus Original
Flavor Noodle. Party A shall carry out the production in strict compliance with
Party B’s quality requirements and technical specifications. If the production
is not carried out according to Party B’s specifications, which renders the
quality of the processed products not up to the standards, Party A shall be
liable for any losses.

 

5.               Calculations:

 

(1) (Remaining
dough from previous cycle + existing dough for current cycle + new dough) x 0.25
Yuan/500g = processing fee

 

(2) (Remaining dough from previous cycle
+ existing dough for current cycle + new dough + remaining flour from current
cycle) – (Remaining dough from previous cycle + existing dough for current
cycle) = new dough (1.00 Yuan/500g).

 

(3) The calculation method will be as
follows after Party B adopts new packaging: Weight of the final noodle products
– package weight = new dough (1.00 Yuan/500g) 

 

 

Weight of the final noodle products – package
weight = processing fee (0.25 Yuan/500g) Upon
delivery, Party B shall make the payment.

 

6.               Any other issues
not included in this Contract shall be settled through negotiation between the
two parties. This Contract is executed in two counterparts, one for each party.
The Contract will enter into effect upon execution and seals of the both
parties.

 

Party A:  Harbin Ice Lantern
Noodle Factory

Authorized Representative:                                              [name
illegible]

[Seal:] Harbin Ice Lantern Noodle Factory

 

Party B:  Harbin Hainan Kang-Da Cactus Health Food Co., Ltd.

Authorized Representative:                                              Zhou Lixian

[Seal:] Harbin Hainan Kang-Da Cactus Health
Food Co., Ltd.

 

March 10, 2006Exhibit 10.3

 

PROCESSING AND PRODUCTION OUTSOURCING CONTRACT

 

Party A:         Harbin Diwang Pharmacy Co.,Ltd

 

Party B:          Harbin Hainan Kang-Da Cactus Health
Food Co., Ltd.

 

Under the principle of mutual
support, mutual benefit and common development, Party A and Party B have
entered into the following agreement regarding the outsourcing of the
production and processing of Cactus Shuxin Capsules, Cactus Calcium Peptide
Soft Capsules and Cactus Tangkang Capsules by Party B to Party A:

 

1.               The term of cooperation will be 3 years:
Party A shall process and produce Cactus Shuxin Capsules, Cactus Calcium
Peptide Soft Capsules and Cactus Tangkang Capsules according to Party B’s
requirements, and the processing fee will be RMB 10.00 Yuan/bottle. Inspection
reports (according to national standards) shall be issued and the products can
only leave the factory after passing the quality inspection.

 

2.               After receiving the written order for
processing from Party B, Party A shall give priority to the production and
organize the production in strict compliance with the processing and technical
specifications set out by Party B.

 

3.               The production of Cactus Shuxin
Capsules, Cactus Calcium Peptide Soft Capsules and Cactus Tangkang Capsules by
Part A for Party B shall be carried out in compliance with the requirements of
relevant national standards. Party A must use (according to Party B’s formula)
all cactus materials provided by Party B, and the products delivered must have
passed quality inspections according to national standards.

 

4.               Before Party B requests Party to start
the processing of Cactus Shuxin Capsules, Cactus Calcium Peptide Soft Capsules
and Cactus Tangkang Capsules, Party B shall provide the quality requirements
and technical specifications, and supply the raw materials and additives for
the production of Cactus Beer. Party A shall carry out the production in strict
compliance with Party B’s quality requirements and technical specifications. If
the production is not carried out according to Party B’s specifications, which renders
the quality of the processed products not up to the standards, Party A shall be
liable for any losses.

 

5.               Payment:
Party A shall inform Party B of the completion of the production. Upon
inspection and acceptance of Party A’s delivery, Party B shall make a lump sum
payment for goods and the processing fee.

 

6.               Any
other issues not included in this Contract shall be settled through negotiation
between the two parties. This Contract is executed in two counterparts, one for
each party. The Contract will enter into effect upon execution and seals of the
both parties.

 

 

Party A: Harbin Diwang Pharmacy
Co.,Ltd

Authorized Representative:               Wang Changsheng

[Seal:] Harbin Diwang Pharmacy
Co.,Ltd

 

Party B: Harbin Hainan Kang-Da
Cactus Health Food Co., Ltd.

Authorized Representative:               Zhou Lixian

[Seal:] Harbin Hainan Kang-Da
Cactus Health Food Co., Ltd.

 

March 10, 2006Exhibit 10.4

 

PROCESSING
AND PRODUCTION OUTSOURCING CONTRACT

 

Party A:                            Hualan Dairy Plant, Bin
County

 

Party B:                              Harbin Hainan Kang-Da
Cactus Health Food Co., Ltd.

 

Under the principle of mutual support, mutual benefit and common
development, Party A and Party B have entered into the following agreement
regarding the outsourcing of the production and processing of Cactus Protein
Nutrients by Party B to Party A:

 

1.               The term of
cooperation will be 3 years: Party A shall process and produce the Cactus
Protein Nutrients according to Party B’s requirements, and the processing fee
will be RMB 12.00 Yuan/bottle. Party A will provide soy protein whose price
shall be based on the market price prevailing at the time of production.
Inspection reports (according to national standards) shall be issued and the
products can only leave the factory after passing the quality inspection.

 

2.               After receiving the
written order for processing from Party B, Party A shall give priority to the
production and organize the production in strict compliance with the processing
and technical specifications set out by Party B.

 

3.               The production of
Cactus Protein Nutrients by Part A for Party B shall be carried out in
compliance with the requirements of relevant national standards. Party A must
use (according to Party B’s formula) all cactus materials provided by Party B,
and the products delivered must have passed quality inspections according to
national standards.

 

4.               Before Party B
requests Party to start the processing of Cactus Protein Nutrient, Party B
shall provide the quality requirements and technical specifications, and supply
the raw materials and additives for the production of Cactus Protein Nutrients.
Party A shall carry out the production in strict compliance with Party B’s quality
requirements and technical specifications. If the production is not carried out
according to Party B’s specifications, which renders the quality of the
processed products not up to the standards, Party A shall be liable for any
losses.

 

5.               Payment: Party A
shall inform Party B of the completion of the production. Upon inspection
and acceptance of Party A’s delivery, Party B shall make a lump sum payment for
goods and the processing fee.

 

6.               Any other issues
not included in this Contract shall be settled through negotiation between the
two parties. This Contract is executed in two counterparts, one for each party.
The Contract will enter into effect upon execution and seals of the both
parties.

 

Party A: Hualan Dairy Plant, Bin County

Authorized Representative:                                              Liu
Pengfei

 

 

[Seal:] Hualan Dairy Plant, Bin County

 

Party B: Harbin Hainan Kang-Da Cactus Health Food Co., Ltd.

Authorized Representative:                                              Zhou
Lixian

[Seal:] Harbin Hainan Kang-Da Cactus Health Food Co., Ltd.

 

March 10, 2006EXHIBIT 4.1

 

YUM! BRANDS, INC.

 

OFFICERS’ CERTIFICATE

 

Pursuant to Section 2.1 and
Section 2.3(a) of the Indenture, dated as of May 1, 1998 (the “Indenture”),
between YUM! Brands, Inc. (formerly TRICON Global Restaurants, Inc.), a North
Carolina corporation (the “Company”), and J.P. Morgan Trust Company, National
Association, as successor trustee (the “Trustee”), the undersigned, Ted F.
Knopf, Senior Vice President of Finance and Corporate Controller of the
Company, and R. Scott Toop, Vice President, Associate General Counsel and
Assistant Secretary of the Company, hereby certify on behalf of the Company as
follows:

 

1.                                       AUTHORIZATION.  The establishment of a series of Securities
of the Company has been approved and authorized in accordance with the
provisions of the Indenture pursuant to a resolution adopted by the Board of
Directors of the Company on September 22, 1997.

 

2.                                       COMPLIANCE
WITH COVENANTS AND CONDITIONS PRECEDENT. 
All covenants and conditions precedent provided for in the Indenture
relating to the establishment of a series of Securities have been complied
with.

 

3.                                       TERMS.  The terms of the series of Securities
established pursuant to this Officers’ Certificate shall be as follows:

 

(i)                                     TITLES.  The title of the series of Securities is the “6.25%
Senior Notes due April 15, 2016” (the “Notes”).

 

(ii)                                  AGGREGATE
PRINCIPAL AMOUNT.  The aggregate
principal amount of the Notes which may be authenticated and delivered pursuant
to the Indenture (except for Notes (i) authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Notes
pursuant to Sections 2.8, 2.9, 2.11, 3.6, 9.5 or 10.3 of the Indenture or (ii)
which, pursuant to Section 2.4 of the Indenture, are deemed never to have been
authenticated and delivered) is initially limited to $300,000,000, subject,
however to the Company’s right to increase such limit upon the delivery to the
Trustee of an Officers’ Certificate specifying a higher amount.

 

(iii)                               REGISTERED
SECURITIES IN BOOK-ENTRY FORM.  The Notes
will be issued in book-entry form (“Book-Entry Notes”) and represented by one
or more global notes (the “Global Notes”) in fully registered form, without
coupons.  The initial Depositary with
respect to the Global Notes will be The Depository Trust Company, New York, New
York (“DTC”), as Depositary for the accounts of its participants.  So long as the Depositary for a Global Note,
or its nominee, is the registered owner of the Global Note, the Depositary or
its nominee, as the case may be, will be considered the sole owner or holder of
the Notes in book-entry form represented by such Global Note for all purposes
under the Indenture. Book-Entry Notes will not be exchangeable for Notes in
definitive form (“Definitive Notes”) except that, if the Depositary with respect
to any Global Note or Notes is at any time unwilling or unable to continue as
Depositary and a successor Depositary is not appointed by the Company within 90
days, the Company will issue Definitive Notes in exchange for the Book-Entry
Notes represented

 

 

by any such Global Note or Notes.  In addition, the Company may at any time and
in its sole discretion determine not to have a Global Note or Notes, and, in
such event, will issue Definitive Notes in exchange for the Book-Entry Notes
represented by such Global Note or Notes in accordance with the provisions of
Section 2.8 of the Indenture.

 

(iv)                              PERSONS
TO WHOM INTEREST PAYABLE.  Interest will
be payable to the Person in whose name a Note is registered at the close of
business (whether or not a Business Day) on the Regular Record Date with
respect to such Note, except for interest payable on a Note surrendered for
redemption as set forth in paragraph (viii) below.

 

(v)                                 STATED
MATURITY.  The principal amounts of the
Notes will be payable on April 15, 2016, subject to earlier redemption as set
forth in paragraph (viii) below.

 

(vi)                              RATE
OF INTEREST; INTEREST PAYMENT DATES; REGULAR RECORD DATES; ACCRUAL OF
INTEREST.  The Notes will bear interest
at the rate of 6.25% per annum. Interest on the Notes will be payable
semiannually in arrears on April 15 and October 15 of each year (each, an “Interest
Payment Date”), commencing on October 15, 2006. 
The Regular Record Date shall be April 1 or October 1 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment
Date.  The Notes will bear interest from
April 13, 2006, or from the most recent Interest Payment Date to which interest
has been paid or duly provided for until the principal thereof is paid or made
available for payment.  Interest payments
shall be the amount of interest accrued from and including the most recent
Interest Payment Date in respect of which interest has been paid or duly
provided for (or from and including April 13, 2006, if no interest has been
paid or duly provided for with respect to such Note), to but excluding the next
succeeding Interest Payment Date.

 

(vii)                           PLACE
OF PAYMENT; REGISTRATION OF TRANSFER AND EXCHANGE; NOTICES TO COMPANY.  Payment of the principal of and interest on
the Notes will be made at the Corporate Trust Office of the Trustee in the
Borough of Manhattan, The City of New York, or at any other office or agency
designated by the Company for such purpose; provided,
that at the option of the Company, payment of interest may be made by check
mailed to the address of the Person entitled thereto as such address shall
appear in the register of Securities; and provided,
further, that the Holder of the Notes shall be entitled to receive
payments of principal of and interest on the Notes by wire transfer of
immediately available funds, if appropriate wire transfer instructions have
been received in writing by the Trustee not less than 15 days prior to the
applicable payment date.

 

The Notes may be presented
for exchange and registration of transfer at the Corporate Trust Office of the
Trustee in the Borough of Manhattan, The City of New York, or at the office of
any transfer agent hereafter designated by the Company for such purpose.  Notices and demands to or upon the Company in
respect of the Notes and the Indenture may be served at YUM! Brands, Inc., 1441
Gardiner Lane, Louisville, Kentucky 40213, Attention: Treasurer.

 

(viii)                        REDEMPTION.  The Notes are not entitled to any mandatory
redemption or sinking fund payments. 
However, the Notes are redeemable, at the option of the Company, in
whole at any time or in part from time to time at a Redemption Price equal to
the greater of (i) 100% of the principal amount of the Notes to be redeemed
plus accrued and unpaid interest

 

2

 

thereon to the Redemption Date;  and (ii) the sum of the remaining scheduled
payments of principal of and interest on the Notes to be redeemed (not
including any portion of the payment of interest accrued as of the Redemption
Date), discounted to their present value as of the Redemption Date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Adjusted Treasury Rate (as defined herein), as determined by the
Quotation Agent (as defined herein), plus 20 basis points, plus accrued and
unpaid interest on the principal amount to be redeemed to the Redemption Date;
provided, however, that the installments of interest whose Stated Maturity is
prior to the relevant Redemption Date shall be payable to the Holders of such
Notes, or one or more Predecessor Securities, of record at the close of
business on the relevant Regular Record Date.

 

“Adjusted Treasury Rate” means,
with respect to any Redemption Date, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue (as
defined herein), assuming a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury Price
(as defined herein) for such Redemption Date.

 

“Comparable Treasury Issue”
means the United States Treasury security selected by the Quotation Agent as
having an actual or interpolated maturity comparable to the remaining term of
the Notes to be redeemed that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the
Notes.  “Quotation Agent” means one of
the Reference Treasury Dealers (as defined herein) who the Company appointed.

 

“Comparable Treasury Price”
means, with respect to any Redemption Date, (i) the average of the Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest such Reference Treasury Dealer Quotations (as defined
herein), or (ii) if the Trustee is provided fewer than four such Reference
Treasury Dealer Quotations, the average of all such Quotations.

 

“Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any
Redemption Date, the average, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Company and the Trustee by such Reference Treasury
Dealer at 5:00 p.m. on the third business day preceding such Redemption Date.

 

“Reference Treasury Dealer”
means each of Goldman, Sachs & Co, Citigroup Global Markets Inc. and J.P.
Morgan Securities Inc., and their respective successors, and, at the Company’s
option, additional Primary Treasury Dealers; provided, however, that if any of
the foregoing ceases to be a primary U.S. Government securities dealer in New
York City (a “Primary Treasury Dealer”), the Company will substitute another
Primary Treasury Dealer.

 

Notice of any redemption will be
mailed at least 30 days but not more than 60 days before the Redemption Date to
each Holder of the Notes to be redeemed. 
Unless the Company defaults in payment of the Redemption Price, on and
after the Redemption Date, interest will cease to accrue on the Notes or
portions thereof called for redemption.

 

3

 

(ix)                                DENOMINATIONS.  The Notes are issuable in denominations of
$1,000 and integral multiples thereof.

 

(x)                                   SECURITY
REGISTER; PAYING AGENT.  The register of
Securities for the Notes will be initially maintained at the Corporate Trust
Office of the Trustee.  The Company
hereby appoints the Trustee as the initial Paying Agent.

 

(xi)                            FORM.  The Notes will be in substantially the form
set forth in Exhibit A attached hereto and may have such other terms as are
provided in such form.

 

Capitalized terms used in this
Officers’ Certificate and not otherwise defined herein shall have the meanings
set forth in the Indenture.

 

Each of the undersigned, for
himself, states that he has read and is familiar with the provisions of Article
Two of the Indenture relating to the establishment of Securities thereunder and
the establishment of a form of Security representing a series of Securities
thereunder and, in each case, the definitions therein relating thereto; that he
is generally familiar with the other provisions of the Indenture and with the
affairs of the Company and its acts and proceedings and that the statements and
opinions made by him in this Certificate are based upon such familiarity; and
that he has made such examination or investigation as is necessary to enable
him to determine whether or not the covenants and conditions referred to above
have been complied with; and in his opinion, such covenants and conditions have
been complied with.

 

Insofar as this Certificate
relates to legal matters it is based upon the Opinion of Counsel delivered to
the Trustee contemporaneously herewith pursuant to Section 2.4 of the Indenture
and relating to the Notes.

 

4

 

IN WITNESS WHEREOF, the
undersigned have hereunto signed this Certificate on behalf of the Company as
of this 13th day of April, 2006.

 

	
  YUM! BRANDS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Ted F. Knopf

  	
   

  
	
   

  	
  Name:

  	
  Ted F. Knopf

  
	
   

  	
  Title:

  	
  Senior Vice President of
  Finance and

  Corporate Controller

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ R. Scott Toop

  	
   

  
	
   

  	
  Name:

  	
  R. Scott Toop

  
	
   

  	
  Title:

  	
  Vice President,

  
	
   

  	
   

  	
  Associate General Counsel
  and

  Assistant Secretary

  
					

 

5

 

EXHIBIT A

 

Form
of Note

 

 

Unless and until it is exchanged
in whole or in part for Notes in definitive form, this Note may not be
transferred except as a whole by the Depositary to a nominee of the Depositary
or by a nominee of the Depositary to the Depositary or another nominee of the
Depositary or by the Depositary or any such nominee to a successor Depositary
or a nominee of such successor Depositary. 
Unless this certificate is presented by an authorized representative of
The Depository Trust Company, New York, New York (“DTC”) to the issuer or its
agent for registration of transfer, exchange or payment, and any certificate
issued is registered in the name of Cede & Co. or such other name as
requested by an authorized representative of DTC and any payment is made to
Cede & Co. or such other entity as is requested by an authorized
representative of DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof,
Cede & Co., has an interest herein.

 

	
  REGISTERED

  	
   

  	
  YUM!
  BRANDS, INC.

  	
   

  	
  REGISTERED

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.25%
  SENIOR NOTE DUE APRIL 15, 2016

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NO. R-1

  	
   

  	
  Principal
  Amount: $300,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CUSIP:
  988498 AB 7

  

 

YUM! Brands, Inc., a corporation
duly organized and existing under the laws of the State of North Carolina
(herein referred to as the “Company,” which term includes any successor
corporation under the Indenture as hereinafter referred to) for value received,
hereby promises to pay to Cede & Co., or registered assigns, the principal
sum of THREE HUNDRED MILLION DOLLARS on April 15, 2016 and to pay interest
thereon from April 13, 2006 or from the most recent Interest Payment Date to
which interest has been paid or duly provided for semiannually in arrears on
April 15 and October 15, in each year, commencing on October 15, 2006 at the
rate of 6.25% per annum, until the principal hereof is paid or made available
for payment.  The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Indenture (as defined herein), be paid to the person in whose
name this Note (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date, which shall be the April 1 or
October 1 (whether or not a Business Day), as the case may be, next preceding
such Interest Payment Date.  Except as
otherwise provided in the Indenture, any such interest not punctually paid or
duly provided for on any Interest Payment Date (herein called “Defaulted
Interest”) will forthwith cease to be payable to the Holder on the Regular
Record Date with respect to such Interest Payment Date and may either be paid
to the person in whose name this Note (or one or more Predecessor Securities)
is registered at the close of business on a Special Record Date for the payment
of such Defaulted Interest to be fixed by the Trustee, notice of which shall be
given to Holders of Notes not less than 10 days prior to such Special Record
Date, or be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange on which the Notes may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture.  Payment of
the principal and interest on this Note will be made at the office or agency of
the Company maintained for that purpose in the Borough of Manhattan, The City
of New York, and at any other office or agency maintained by the Company for
such purpose, in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of
the Company payment of interest may be made by check mailed to the address of
the Person entitled thereto as such address shall appear in the register of
Securities; and provided, further, that
the Holder of this Note shall be entitled to receive payments of principal of
and interest on this Note by wire transfer of immediately available funds, if
appropriate wire transfer instructions have been received in writing by the
Trustee not less than 15 days prior to the applicable payment date.

 

Reference is hereby made to the
further provisions of this Note set forth herein, which further provisions
shall for all proposes have the same effect as if set forth at this place.

 

Unless the certificate of
authentication hereon has been executed by the Trustee or its duly appointed
authenticating agent by manual signature, this Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

 

 

IN WITNESS WHEREOF, YUM! Brands,
Inc. has caused this instrument to be signed by the manual signature of its
Chairman of the Board, one of its Vice Chairmen, its President or one of its
Vice Presidents, or the Treasurer or any Assistant Treasurer, under its
corporate seal reproduced thereon attested by its Secretary or one of its
Assistant Secretaries.

 

	
   

  	
   

  	
  YUM! BRANDS, INC.

  
	
   

  	
   

  	
   

  
	
  (SEAL)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ted F. Knopf

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President of
  Finance and

  Corporate Controller

  
	
   

  	
   

  	
   

  
						

 

	
  ATTEST:

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Linda Gregg

  
	
  Title:

  	
  Assistant Secretary

  
					

 

Dated: April 13, 2006

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes of the
series designated herein referred to in the within-mentioned Indenture.

 

	
  J.P. MORGAN TRUST COMPANY,
  NATIONAL ASSOCIATION, as Trustee

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

2

 

YUM!
BRANDS, INC.

6.25%
SENIOR NOTE DUE APRIL 15, 2016

 

This Note is one of a duly
authorized issue of securities (herein called the “Securities”) of the Company
(which term includes any successor corporation under the Indenture hereinafter
referred to), issued and to be issued pursuant to such Indenture.  This Note is one of a series designated by
the Company as its 6.25% Senior Notes due April 15, 2016, initially limited in
aggregate principal amount to $300,000,000.

 

The Company issued this Note
pursuant to an Indenture, dated as of May 1, 1998 (herein called the
“Indenture”), between the Company and J.P. Morgan Trust Company, National
Association, as Trustee (herein called the “Trustee,” which term includes any
successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Notes and of the terms upon which the Notes
are, and are to be, authenticated and delivered.

 

The Notes are issuable in registered
form, without coupons, in denominations of $1,000 and any integral multiple
thereof.  As provided in the Indenture
and subject to certain limitations therein set forth, the Notes are
exchangeable for a like aggregate principal amount of Notes of like tenor of
any authorized denomination, as requested by the Holder surrendering the same,
upon surrender of the Note or Notes to be exchanged at any office or agency
described below where the Notes may be presented for registration of transfer.

 

Interest on the Notes shall be
calculated on the basis of a 360-day year consisting of twelve 30-day months.

 

The Notes are not entitled to
any mandatory redemption or sinking fund payments.  However, the Notes are redeemable, at the
option of the Company, in whole at any time or in part from time to time at a
Redemption Price equal to the greater of (i) 100% of the principal amount of
the Notes to be redeemed plus accrued and unpaid interest thereon to the
Redemption Date; and (ii) the sum of the remaining scheduled payments of
principal of and interest on the Notes to be redeemed (not including any
portion of the payment of interest accrued as of the Redemption Date),
discounted to their present value as of the Redemption Date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months) at the
Adjusted Treasury Rate (as defined herein), as determined by the Quotation
Agent (as defined herein), plus 20 basis points, plus accrued and unpaid
interest on the principal amount to be redeemed to the Redemption Date.

 

“Adjusted Treasury Rate” means,
with respect to any Redemption Date, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue (as
defined herein), assuming a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury Price
(as defined herein) for such Redemption Date.

 

“Comparable Treasury Issue”
means the United States Treasury security selected by the Quotation Agent as
having an actual or interpolated maturity comparable to the remaining term of
the Notes to be redeemed that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the
Notes.  “Quotation Agent” means one of
the Reference Treasury Dealers (as defined herein) who the Company appointed.

 

“Comparable Treasury Price”
means, with respect to any Redemption Date, (i) the average of the Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the
Trustee is provided fewer than four such Reference Treasury Dealer Quotations
(as defined herein), the average of all such Quotations.

 

“Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any
Redemption Date, the average, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Company and the Trustee by such Reference Treasury
Dealer at 5:00 p.m. on the third business day preceding such Redemption Date.

 

“Reference Treasury Dealer”
means each of Goldman, Sachs & Co, Citigroup Global Markets Inc. and J.P.
Morgan Securities Inc., and their respective successors, and, at the Company’s
option, additional Primary Treasury

 

3

 

Dealers; provided, however, that if any of the
foregoing ceases to be a primary U.S. Government securities dealer in New York
City (a “Primary Treasury Dealer”), the Company will substitute another Primary
Treasury Dealer.

 

Notwithstanding the foregoing,
installments of interest whose Stated Maturity is prior to the Redemption Date
of any Note will be payable to the Holder of such Note, or one or more
Predecessor Securities, of record at the close of business on the relevant
Regular Record Date referred to above, all as provided in the Indenture.

 

Notice of any redemption will be
mailed at least 30 days but not more than 60 days before the Redemption Date to
each holder of the Notes to be redeemed. 
Unless the Company defaults in payment of the Redemption Price, on and
after the Redemption Date, interest will cease to accrue on the Notes or
portions thereof called for redemption.

 

All notices of redemption shall
state the Redemption Date, the Redemption Price, if fewer than all the
Outstanding Notes are to be redeemed, the identification (and, in the case of
partial redemption, the principal amounts) of the particular Notes to be
redeemed, that on the Redemption Date the Redemption Price will become due and
payable upon each Note, or portion thereof, to be redeemed, that interest on
each Note, or portion thereof, called for redemption will cease to accrue on
the Redemption Date and the place or places where Notes may be surrendered for
redemption. If fewer than all of the Notes are to be redeemed at any time,
selection of such Notes for redemption will be made by the Trustee by such
method as the Trustee shall deem fair and appropriate.

 

In the event of redemption of
this Note in part only, a new Note or Notes of like tenor for the unredeemed
portion hereof will be issued in authorized denominations in the name of the
Holder hereof upon the cancellation hereof.

 

For all purposes of this Note
and the Indenture, unless the context otherwise requires, all provisions
relating to the redemption by the Company of this Note shall relate, in the
case that this Note is redeemed or to be redeemed by the Company only in part,
to that portion of the principal amount of this Note that has been or is to be
redeemed.

 

If an Event of Default with
respect to the Notes shall occur and be continuing, the principal of all the
Notes may be declared due and payable in the manner and with the effect
provided in the Indenture.  Holders of
Notes may not enforce their rights pursuant to the Indenture or the Notes
except as provided in the Indenture.

 

The Indenture permits, in certain
circumstances therein specified, the amendment thereof without the consent of
the Holders of the Securities.   The
Indenture also permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations under the
Indenture of the Company and the rights of the Holders of the Securities of
each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of a majority in aggregate
principal amount of the Securities at the time Outstanding of each series to be
affected. The Indenture also contains provisions permitting the Holders of a
majority in aggregate principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all the Securities of such
series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their
consequences.  Any such consent or waiver
by the Holder of this Note shall be conclusive and binding upon such Holder and
upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Note.

 

No reference herein to the
Indenture and no provision of this Note or, subject to the provisions for
satisfaction and discharge in Article Eight of the Indenture, of the Indenture
shall alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of and interest on this Note at the times,
place and rate, and in the coin or currency, herein prescribed.

 

The Indenture permits the
Company, by irrevocably depositing, in amounts and maturities sufficient to pay
and discharge at the Stated Maturity or Redemption Date, as the case may be,
the entire indebtedness on all Outstanding Notes, cash or direct obligations
of, or obligations the principal of and interest on which are fully guaranteed
by, the United States government, and which are not subject to prepayment,
redemption or call, with the Trustee in trust solely for the benefit of the
Holders of all Outstanding Notes, to defease the Indenture with respect to such
Notes, and upon such deposit the Company shall be deemed to have paid and
discharged its entire

 

4

 

indebtedness on such Notes. Thereafter,
Holders would be able to look only to such trust fund for payment of principal
and interest at the Stated Maturity or Redemption Date, as the case may be. The
Indenture also permits, in certain circumstances therein specified, the Company
to be released from certain of its obligations under the Indenture on the terms
and subject to the conditions therein provided.

 

As provided in the Indenture and
subject to certain limitations therein set forth, the transfer of this Note is
registrable in the register of Securities, upon surrender of this Note for
registration of transfer at the office or agency of the Company in the Borough
of Manhattan, The City of New York, or at such other offices or agencies as the
Company may designate, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Registrar duly executed
by, the Holder hereof or his attorney duly authorized in writing, and thereupon
one or more new Notes of like tenor, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or
transferees.

 

No service charge shall be made
by the Company, the Trustee or the Registrar for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient
to cover any tax, assessment or other governmental charge payable in connection
therewith (other than exchanges pursuant to Sections 2.11, 3.6 or 9.5 of the
Indenture, not involving any transfer).

 

Prior to due presentment of this
Note for registration of transfer, the Company, the Trustee and any agent of
the Company or the Trustee may treat the person in whose name this Note is
registered as the owner hereof for all purposes, whether or not this Note be
overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary.

 

The Indenture and the Notes shall
be governed by and construed in accordance with the laws of the State of New
York of the United States of America, including without limitation, New York
General Obligations Law Sections 5-1401 and 5-1402 and New York Civil Practice
Law and Rules 327.

 

All undefined terms used in this
Note which are defined in the Indenture shall have the meanings assigned to
them in the Indenture.

 

5

 

ABBREVIATIONS

 

The following abbreviations,
when used in the inscription on the face of this instrument, shall be construed
as though they were written out in full according to applicable laws or
regulations:

 

TEN COM - as tenants in
common

 

UNIF GIFT MIN ACT                   
Custodian                    
- Under Uniform Gifts to Minor Act (State)

(Cust.)                                                                               (Minor)

 

TEN ENT - as tenants by the
entireties

 

JT TEN - as joint tenants
with right of survivor- ship and not as tenants in common

 

Additional
abbreviations may also be used though not in the above list.

 

 

 

FOR VALUE RECEIVED, the
undersigned hereby sells(s), assign(s) and transfer(s) unto

 

Please Insert Social Security
or Employer

Identification number of
assignee

 

            –            –

 

 

Please
Print or Typewrite Name and Address

Including
Postal Zip Code of Assignee

 

 

the within Security and all
rights thereunder, hereby irrevocably constituting and appointing                                  
attorney to transfer said Security on the books of the Company, with full power
of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  

 

	
  NOTICE:

  	
  The signature to this
  assignment must correspond with the name as it appears upon the face of the
  within Note in every particular, without alteration or enlargement or any
  change whatever.

  

 

6

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