Document:

exhib10_32-1.htm

  

    
 

    

    

    
      
        
          	 
      
	 
      
	 
      
	 
      
	 
      
	
                  YUM!
      BRANDS

                
	 
      
	
                  LEADERSHIP
      RETIREMENT PLAN

                
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	
                  Plan
      Document for the 409A Program,

                
	
                  Effective
      as of January 1, 2005 (with amendments through December
    2008)

                
	
                   
      

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    
      
        	
                YUM!
      Brands Leadership Retirement Plan

                Table
      of Contents

              	 
      
	 
      	
                Page

              
	
                ARTICLE I – FOREWORD

              	
                1

              
	
                ARTICLE II – DEFINITIONS

              	
                2

              
	
                2.01

              	
                Allocation Date:

              	
                2

              
	
                2.02

              	
                Authorized Leave of
Absence:

              	
                2

              
	
                2.03

              	
                Base Compensation:

              	
                2

              
	
                2.04

              	
                Beneficiary:

              	
                2

              
	
                2.05

              	
                Bonus Compensation:

              	
                3

              
	
                2.06

              	
                Break in Service Payment
      Election:

              	
                3

              
	
                2.07

              	
                Change in Control:

              	
                3

              
	
                2.08

              	
                Code:

              	
                5

              
	
                2.09

              	
                Company:

              	
                5

              
	
                2.10

              	
                Disability:

              	
                5

              
	
                2.11

              	
                Disability Benefits:

              	
                6

              
	
                2.12

              	
                Disability Leave of
Absence:

              	
                6

              
	
                2.13

              	
                Disability Payment
Election:

              	
                6

              
	
                2.14

              	
                Earnings Credit:

              	
                6

              
	
                2.15

              	
                Earnings Rate:

              	
                6

              
	
                2.16

              	
                Employer:

              	
                7

              
	
                2.17

              	
                Employer Credit / Employer Credit
      Percentage:

              	
                7

              
	
                2.18

              	
                ERISA:

              	
                7

              
	
                2.19

              	
                Executive / Eligible
    Executive:

              	
                7

              
	
                2.20

              	
                409A Program:

              	
                7

              
	
                2.21

              	
                Key Employee:

              	
                8

              
	
                2.22

              	
                LRP Account:

              	
                9

              
	
                2.23

              	
                LRP Benefit:

              	
                9

              
	
                2.24

              	
                One-Year Break in Service:

              	
                9

              
	
                2.25

              	
                Participant:

              	
                10

              
	
                2.26

              	
                Plan:

              	
                10

              
	
                2.27

              	
                Plan Administrator:

              	
                10

              
	
                2.28

              	
                Plan Year:

              	
                10

              
	
                2.29

              	
                Pre-409A Program:

              	
                10

              
	
                2.30

              	
                Retirement:

              	
                10

              
	
                2.31

              	
                Section 409A:

              	
                10

              
	
                2.32

              	
                Separation from Service:

              	
                10

              
	
                2.33

              	
                Spouse:

              	
                11

              
	
                2.34

              	
                Termination Date:

              	
                11

              
	
                2.35

              	
                Valuation Date:

              	
                11

              
	
                2.36

              	
                Vesting Schedule:

              	
                11

              
	
                2.37

              	
                Vested LRP Account:

              	
                11

              
	
                2.38

              	
                Year of Participation:

              	
                12

              
	
                2.39

              	
                Year of Service:

              	
                12

              
	
                2.40

              	
                YUM! Organization:

              	
                12

              

      

    

    
      
         

      

      
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                YUM!
      Brands Leadership Retirement Plan

                Table
      of Contents

              	 
      
	 
      	
                Page

              
	
                ARTICLE III – PARTICIPATION

              	
                13

              
	
                3.01

              	
                Eligibility to Participate.

              	
                13

              
	
                3.02

              	
                Inception of Participation.

              	
                14

              
	
                3.03

              	
                Termination of
    Participation.

              	
                15

              
	
                3.04

              	
                Break in Service.

              	
                15

              
	
                ARTICLE IV – ELECTIONS

              	
                17

              
	
                4.01

              	
                Beneficiaries.

              	
                17

              
	
                4.02

              	
                Deferral of Payment While Receiving Disability
      Benefits.

              	
                17

              
	
                4.03

              	
                Break in Service Deferral of
      Payment.

              	
                18

              
	
                ARTICLE V – PARTICIPANT LRP
      BENEFITS

              	
                21

              
	
                5.01

              	
                Credits to a Participant’s LRP
      Account.

              	
                21

              
	
                5.02

              	
                Vesting Schedule.

              	
                24

              
	
                5.03

              	
                Distribution of a Participant’s Vested LRP
      Account.

              	
                25

              
	
                5.04

              	
                Valuation.

              	
                27

              
	
                5.05

              	
                FICA Taxes and LRP Account
      Reduction.

              	
                27

              
	
                ARTICLE VI – PLAN
      ADMINISTRATION

              	
                28

              
	
                6.01

              	
                Plan Administrator.

              	
                28

              
	
                6.02

              	
                Powers of the Plan
      Administrator.

              	
                28

              
	
                6.03

              	
                Compensation, Indemnity and
      Liability.

              	
                29

              
	
                6.04

              	
                Taxes.

              	
                29

              
	
                6.05

              	
                Records and Reports.

              	
                30

              
	
                6.06

              	
                Rules and Procedures.

              	
                30

              
	
                6.07

              	
                Applications and Forms.

              	
                30

              
	
                6.08

              	
                Conformance with Section
    409A.

              	
                30

              
	
                ARTICLE VII – CLAIMS
    PROCEDURES

              	
                31

              
	
                7.01

              	
                Claims for Benefits.

              	
                31

              
	
                7.02

              	
                Appeals.

              	
                31

              
	
                7.03

              	
                Special Claims Procedures for Disability
      Determinations.

              	
                31

              
	
                7.04

              	
                Exhaustion of Claims
      Procedures.

              	
                32

              
	
                7.05

              	
                Limitations on Actions.

              	
                33

              
	
                ARTICLE VIII – AMENDMENT AND
      TERMINATION

              	
                35

              
	
                8.01

              	
                Amendment to the Plan.

              	
                35

              
	
                8.02

              	
                Termination of the Plan.

              	
                35

              
	
                ARTICLE IX – MISCELLANEOUS

              	
                37

              
	
                9.01

              	
                Limitation on Participant
      Rights.

              	
                37

              
	
                9.02

              	
                Unfunded Obligation of Individual
      Employer.

              	
                37

              
	
                9.03

              	
                Other Benefit Plans.

              	
                37

              
	
                9.04

              	
                Receipt or Release.

              	
                37

              
	
                9.05

              	
                Governing Law.

              	
                38

              

      

    

    
      
         

      

      
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                  YUM!
      Brands Leadership Retirement Plan

                  Table
      of Contents

                	 
      
	
                   
      

                	
                  Page

                
	
                  9.06

                	
                  Adoption of Plan by Related
      Employers.

                	
                  38

                
	
                  9.07

                	
                  Rules of Construction.

                	
                  38

                
	
                  9.08

                	
                  Successors and Assigns; Nonalienation of
      Benefits.

                	
                  39

                
	
                  9.09

                	
                  Facility of Payment.

                	
                  39

                
	
                  ARTICLE X – SIGNATURE

                	
                  40

                
	
                  APPENDIX

                	
                  41

                
	
                  APPENDIX ARTICLE A – LRP BENEFITS FOR CERTAIN
      PARTICIPANTS

                	
                  42

                
	
                  A.01

                	
                  Scope.

                	
                  42

                
	
                  A.02

                	
                  Allocation Date for Class I Appendix
      Participants.

                	
                  42

                
	
                  A.03

                	
                  Employer Credit for Class I Appendix
      Participants.

                	
                  42

                
	
                  A.04

                	
                  Special Interim Earnings Rate for Class I Appendix
      Participants.

                	
                  44

                
	
                  A.05

                	
                  Vesting for Class I Appendix
      Participants.

                	
                  45

                
	
                  A.06

                	
                  Initial Eligibility Date for Class II Appendix
      Participants.

                	
                  45

                
	
                  A.07

                	
                  Employer Credit Percentage for Class II Appendix
      Participants.

                	
                  45

                

        

      

    

    

    
      
         

      

      
        iii 

        
          

        

      

      
         

      

    

    ARTICLE
I – FOREWORD

     

    YUM!
Brands, Inc. (the “Company”) established the YUM! Brands Leadership Retirement
Plan (the “Plan”) to benefit selected executives who are not eligible to
participate in the YUM! Brands Retirement Plan.  The Plan was
effective as of April 1, 2002, and it was originally known as the Supplemental
Executive Retirement Plan.

    

    This
document is effective as of January 1, 2005 (the “Effective
Date”).  Effective January 1, 2008, this document was amended and
restated to add additional eligible executives and make certain other design
changes.  In December 2008, this document was further amended and
restated to make certain changes for Section 409A and other items.

    

    This
document sets forth the terms of the Plan that are applicable to benefits that
are subject to Section 409A, i.e., generally, benefits
that are earned or vested after December 31, 2004 (the “409A
Program”).  Other benefits under the Plan shall be governed by a
separate set of documents that set forth the pre-Section 409A terms of the Plan
(the “Pre-409A Program”).  Together, this document and the documents
for the Pre-409A Program describe the terms of a single
plan.  However, amounts subject to the terms of this 409A Program and
amounts subject to the terms of the Pre-409A Program shall be tracked separately
at all times.  The preservation of the terms of the Pre-409A Program,
without material modification, and the separation between the 409A Program
amounts and the Pre-409A Program amounts are intended to be sufficient at all
times to permit the Pre-409A Program to remain exempt from Section
409A.

    

    With
respect to benefits covered by this document, this document sets forth the terms
of the Plan, specifying the group of executives of the Company and certain
affiliated employers who are eligible to participate and the Plan’s general
provisions for determining and distributing benefits.  Additional and
alternate provisions applicable to certain eligible executive’s benefits are set
forth in the Appendix.

    

    The Plan
is unfunded and unsecured for purposes of the Code and ERISA.  The
benefits of an executive are an obligation of that executive’s individual
employer.  With respect to his employer, the executive has the rights
of an unsecured general creditor.

    

    

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    ARTICLE
II – DEFINITIONS

     

    When used
in this Plan, the following bold terms shall have the meanings set forth below
unless a different meaning is plainly required by the context:

    

    2.01           Allocation
Date:

     

    The date
as of which an Employer Credit is credited to the Participant’s LRP
Account.  Except as otherwise provided in the Appendix for one or more
specific Participants, the last business day of each Plan Year shall be an
Allocation Date.  In addition, when a Participant no longer is an
active Participant, the last day of the calendar quarter containing his
Termination Date shall also be an Allocation Date.

    

    2.02           Authorized
Leave of Absence:

     

    A period
of time when a Participant is considered to remain in the employment of his
Employer (except as provided below) while not actively rendering services to his
Employer as a result of one or more of the following –

    

    (a)           Any
absence of 6 months or less (or 24 months or less, if the Participant retains a
contractual right to return to work) that is authorized by an Employer under the
Employer’s standard personnel practices, whether paid or unpaid, as long as
there is a reasonable expectation that the Participant will return to perform
services for the Employer;

    

    (b)           A
leave of absence pursuant to the Uniformed Services Employment and Reemployment
Rights Act (“USERRA”); or

    

    (c)           A
leave of absence pursuant to the Family Medical Leave Act (“FMLA”) or any other
similar family medical leave law of a particular state, if such law provides for
a longer leave of absence than the FMLA.

    

    2.03           Base
Compensation:

     

    An
Eligible Executive’s gross base salary, as determined by the Plan Administrator
and to the extent paid in U.S. dollars from an Employer’s U.S. payroll for a
period that the Eligible Executive is an active Participant in the
Plan.  For any applicable period, an Eligible Executive’s gross base
salary shall be determined without regard to any reductions that may apply to
the base salary, including applicable tax withholdings, Executive-authorized
deductions (including deductions for the YUM! Brands 401(k) Plan and applicable
health and welfare benefits), tax levies and garnishments.

    

    2.04           Beneficiary:

     

    The
person or persons (including a trust or trusts) properly designated by a
Participant, as determined by the Plan Administrator, to receive the
Participant’s Vested LRP Account in the event of the Participant's
death.  To be effective, any Beneficiary designation must be in
writing, signed by the Participant, and filed with the Plan Administrator prior
to the Participant’s death, and it must meet such other standards (including the
requirement for spousal consent to the naming of a non-Spouse beneficiary by a
married Participant) as the Plan Administrator shall require from time to
time.  An incomplete Beneficiary designation, as determined by the
Plan Administrator, shall be void and of no effect.  If some but not
all of the persons designated by a Participant to receive his Vested LRP Account
at death predecease the Participant, the Participant’s surviving Beneficiaries
shall be entitled to the portion of the Participant’s Vested LRP Account
intended for such pre-deceased persons in proportion to the surviving
Beneficiaries’ respective shares; provided that primary beneficiaries shall be
paid before contingent beneficiaries.  If no designation is in effect
at the time of a Participant’s death or if all designated Beneficiaries have
predeceased the Participant, then the Participant’s Beneficiary shall be (i) in
the case of a Participant who is married at death, the Participant’s Spouse, or
(ii) in the case of a Participant who is not married at death, the Participant’s
estate.  In determining whether a Beneficiary designation that relates
to the Plan is in effect, unrevoked designations that were received prior to the
Effective Date of the 409A Program shall be considered.  A Beneficiary
designation of an individual by name (or name and relationship) remains in
effect regardless of any change in the designated individual’s relationship to
the Participant.  A Beneficiary designation solely by relationship
(for example, a designation of “Spouse,” that does not give the name of the
Spouse) shall designate whoever is the person (if any) in that relationship to
the Participant at his death.  An individual who is otherwise a
Beneficiary with respect to a Participant’s Vested LRP Account ceases to be a
Beneficiary when all applicable payments have been made from the LRP
Account.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.05           Bonus
Compensation:

     

    The gross
amount of an Eligible Executive’s target annual incentive or bonus award, which
shall be equal to the Eligible Executive’s current annualized Base Compensation
in effect as of the applicable Allocation Date multiplied by the
Eligible Executive’s current target bonus percentage, in effect as of the
applicable Allocation Date, under his Employer’s annual incentive or bonus
plan.  Bonus Compensation shall be determined by the Plan
Administrator and shall only be taken into account to the extent paid in U.S.
dollars from an Employer’s U.S. payroll.  An Eligible Executive’s
Bonus Compensation shall be determined without regard to any reductions that may
apply, including applicable tax withholdings, Executive-authorized deductions
(including deductions for the YUM! Brands 401(k) Plan and applicable health and
welfare benefits), tax levies, and garnishments.

    

    2.06           Break
in Service Payment Election:

     

    The
election to defer the distribution of a Participant’s Pre-Break Subaccount, if
applicable, pursuant to the provisions of Section 4.03.

    

    2.07           Change
in Control:

     

    A “Change
in Control” shall be deemed to occur if the event set forth in any one of the
following paragraphs shall have occurred:

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    (a)           Any
Person is or becomes the Beneficial Owner, directly or indirectly, of securities
of the Company (not including in the securities beneficially owned by such
Person any securities acquired directly from the Company or an Affiliate)
representing 20% or more of the combined voting power of the Company’s then
outstanding securities, excluding any Person who becomes such a Beneficial Owner
in connection with a transaction described in clause (i) of Subsection (c)
below;

    

    (b)           The
following individuals cease for any reason to constitute a majority of the
number of directors then serving; individuals who, on the date hereof,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election
contest, including a consent solicitation, relating to the election of directors
of the Company), whose appointment or election by the Board or nomination for
election by the Company’s stockholders was approved or recommended by a vote of
at least two-thirds (2/3) of the directors then still in office who either were
directors on the date hereof or whose appointment, election or nomination for
election was previously so approved or recommended; or

    

    (c)           There
is consummated a merger or consolidation of the Company or any direct or
indirect Subsidiary with any other corporation, other than (i) a merger or
consolidation immediately following which those individuals who immediately
prior to the consummation of such merger or consolidation, constituted the
Board, constitute a majority of the board of directors of the Company or the
surviving or resulting entity or any parent thereof, or (ii) a merger or
consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no Person is or becomes the Beneficial Owner,
directly or indirectly, of securities of the Company (not including in the
securities beneficially owned by such Person any securities acquired directly
from the Company or an Affiliate) representing 20% or more of the combined
voting power of the Company’s then outstanding securities.

    

    Notwithstanding
the foregoing, a “Change in Control” shall not be deemed to have occurred by
virtue of the consummation of any transaction or series of integrated
transactions immediately following which the record holders of the common stock
of the Company immediately prior to such transaction or series of transactions
continue to have substantially the same proportionate ownership in an entity
which owns all or substantially all of the assets of the Company immediately
following such transaction or series of transactions.

    

    For
purposes of the foregoing, the following capitalized and underlined words shall
have the meanings ascribed to them below:

    

    “Affiliate” shall have
the meaning set forth in Rule 12b-2 under Section 12 of the Exchange
Act.

    

    “Beneficial Owner”
shall have the meaning set forth in Rule 13d-3 under the Exchange Act, except
that a Person shall not be deemed to be the Beneficial Owner of any securities
which are properly filed on a Form 13-G.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended from time to
time.

    

    “Person” shall have
the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used
in Sections 13(d) and 14(d) thereof, except that such term shall not include (i)
the Company or any of its Affiliates; (ii) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any of its
Subsidiaries; (iii) an underwriter temporarily holding securities pursuant to an
offering of such securities; or (iv) a corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company.

    

    “Subsidiary” means any
corporation, partnership, joint venture or other entity during any period in
which at least a fifty percent voting or profits interest is owned, directly or
indirectly, by the Company (or by any entity that is a successor to the
Company).

    

    2.08           Code:

     

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

    

    2.09           Company:

     

    YUM!
Brands, Inc., a corporation organized and existing under the laws of the State
of North Carolina, or its successor or successors.

    

    2.10           Disability:

     

    A
Participant shall be considered to suffer from a Disability, if, in the judgment
of the Plan Administrator (determined in accordance with the provisions of
Section 409A), the Participant –

    

    (a)           Is
unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, or

     

    (b)           By
reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than 12 months, is receiving income replacement benefits for a
period of not less than 3 months under an accident and health plan of the
Company (including the YUM! Brands Short-Term Disability Plan and the YUM!
Brands Long-Term Disability Plan).

    

    A
Participant who has received a Social Security disability award will be
conclusively deemed to satisfy the requirements of Subsection (a).  In
turn, a Participant who has not received a Social Security disability award will
be conclusively deemed to not meet the requirements of Subsection
(a).

     

    
      

      The
related term, “Disabled,” shall mean to suffer from a
Disability.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    

    2.11           Disability
Benefits:

     

    The
receipt by a Participant of short-term disability benefits from the YUM! Brands
Short-Term Disability Plan (or such other short-term disability plan sponsored
by his Employer) or long-term disability benefits from the YUM! Brands Long-Term
Disability Plan (or such other long-term disability plan sponsored by his
Employer).

    

    2.12           Disability
Leave of Absence:

     

    A
continuous period of absence during which the Participant is receiving
Disability Benefits.  A Participant’s Disability Leave of Absence
shall end on the earlier of the date when the Participant is no longer receiving
Disability Benefits or the date that the Participant is entitled to payment
under Section 5.03 as a result of the Participant’s Separation from Service
(i.e., when the
Participant Separates from Service as a result of his Disability or age 55, if
later).  However, if the Participant executes a valid Disability
Payment Election pursuant to Section 4.02, such Participant’s Disability Leave
of Absence shall be extended until the specific payment date listed in the
Disability Payment Election (or such later Disability Payment
Election).  The Participant shall be considered to be on a Disability
Leave of Absence without regard to whether the Participant is generally
considered to be a continuing Employee of the Employer.

    

    2.13           Disability
Payment Election:

     

    The
voluntary election that can be made by a Disabled Participant under Section 4.02
to extend his Disability Leave of Absence and the payment of his LRP
Benefits.

    

    2.14           Earnings
Credit:

     

    The
increment added to a Participant’s LRP Account as a result of crediting the
account with a return based on the Participant’s Earnings Rate.

    

    2.15           Earnings
Rate:

     

    (a)           Earnings Rate as of the
Effective Date.  As of the Effective Date, the Earnings Rate
shall be 6% per annum, compounded annually.  In the event a Valuation
Date occurs less than 12 months after the prior Valuation Date, this Earnings
Rate shall be converted to a rate for the period since the last Valuation Date
by reducing it to a rate that is appropriate for such shorter
period.  Such reduction shall be done in a way that would result in
the specified 6% annual rate of return being earned for the number of such
periods that equals one year.  The Earnings Rate is used to determine
the Earnings Credit that is credited to the Participant’s LRP Account from time
to time pursuant to the provisions of Section 5.01(d).

    

    (b)           Earnings Rate from and after
July 1, 2006.  Except as provided in the Appendix, from and
after July 1, 2006, the Earnings Rate for all Participants shall be 5% per
annum, compounded annually.  In the event a Valuation Date occurs less
than 12 months after the prior Valuation Date, this Earnings Rate shall be
converted to a rate for the period since the last Valuation Date by reducing it
to a rate that is appropriate for such shorter period.  Such reduction
shall be done in a way that would result in the specified 5% annual rate of
return being earned for the number of such periods that equals one
year.  The Earnings Rate is used to determine the Earnings Credit that
is credited to the Participant’s LRP Account from time to time pursuant to the
provisions of Section 5.01(d).

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (c)           Adjustments to the Earnings
Rate.  As provided by Section 5.01(d), the Earnings Rate shall
be evaluated and may be revised by the Company on an annual basis.

    

    2.16           Employer:

     

    The
Company, and each division of the Company and each of the Company’s subsidiaries
and affiliates (if any) that is currently designated as an adopting Employer of
the Plan by the Company.  Where there is a question as to whether a
particular division, subsidiary or affiliate is an Employer under the Plan, the
determination of the Plan Administrator shall be absolutely
conclusive.  An entity shall be an Employer hereunder only for the
period that it is – (a) so determined by the Plan Administrator, and (b) a
member of the YUM! Organization.

    

    2.17           Employer
Credit / Employer Credit Percentage:

     

    The
Employer Credit is an amount that is credited to a Participant’s LRP Account as
of each Allocation Date pursuant to the provisions of Section 5.01(b) and (c) or
the Appendix.  The “Employer Credit Percentage” is the percentage in
Section 5.01(b) of Base Compensation or Bonus Compensation (or both), which is
used to calculate a Participant’s Employer Credit pursuant to Section
5.01(c).

    

    2.18           ERISA:

     

    Public
Law 93-406, the Employee Retirement Income Security Act of 1974, as amended from
time to time.

    

    2.19           Executive
/ Eligible Executive:

     

    An
“Executive” is any individual in an executive classification of an Employer who
(i) is receiving remuneration for personal services that he or she is currently
rendering in the employment of an Employer (or who is on an Authorized Leave of
Absence), and (ii) is paid in U.S. dollars from the Employer’s U.S.
payroll.  An “Eligible Executive” shall have the meaning provided in
Section 3.01.

    

    2.20           409A
Program:

     

    The
program described in this document.  The term “409A Program” is used
to identify the portion of the Plan that is subject to Section
409A.

    
      
         

      

      
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    2.21           Key
Employee:

     

    The
individuals identified in accordance with principles set forth in Subsection
(a), as modified by the following provisions of this Section.

    

    (a)           In
General.  Any Eligible Executive or former Eligible Executive
who at any time during the applicable year is –

    

    (1)           An
officer of an Employer having annual compensation greater than $130,000 (as
adjusted under Code Section 416(i)(1));

    

    (2)           A
5-percent owner of an Employer; or

    

    (3)           A
1-percent owner of an Employer having annual compensation of more than
$150,000.

    

    For
purposes of (1) above, no more than 50 employees identified in the order of
their annual compensation (or, if lesser, the greater of 3 employees or 10
percent of the employees) shall be treated as officers.  For purposes
of this Section, annual compensation means compensation as defined in Code
Section 415(c)(3).  The Plan Administrator shall determine who is a
Key Employee in accordance with Code Section 416(i) and the applicable
regulations and other guidance of general applicability issued thereunder or in
connection therewith (including the provisions of Code Section 416(i)(3) that
treat self employed individuals as employees for purposes of this definition);
provided, that Code Section 416(i)(5) shall not apply in making such
determination, and provided further that the applicable year shall be determined
in accordance with Section 409A and that any modification of the foregoing
definition that applies under Section 409A shall be taken into
account.

    

    (b)           Special Operating
Rules.  To ensure that the Company does not fail to identify
any Key Employees based on the provisions of Subsection (a), the Company shall
treat as Key Employees for the Plan Year of their Separation from Service those
individuals who meet the provisions of paragraph (1) or (2) below (or
both).

    

    (1)           The
Company shall treat as Key Employees all Eligible Executives (and former
Eligible Executives) that are classified for any portion of the Plan Year of
their Separation from Service as Level 15 and above; and

    

    (2)           The
Company shall treat as a Key Employee any Eligible Executive who would be a Key
Employee as of his Separation from Service date based on the standards in this
paragraph (2).  For purposes of this paragraph (2), the Company shall
determine Key Employees under Subsection (a)(1) and (3) above based on
compensation (as defined in Code Section 415(c)(3)) that is taken into account
as follows:

    
      
         

      

      
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    (i)           If
the determination is in connection with a Separation from Service in the first
calendar quarter of a Plan Year, the determination shall be made using
compensation earned in the calendar year that is two years prior to the current
calendar year (e.g.,
for a determination made in the first quarter of 2005, compensation earned in
the 2003 calendar year shall be used); and

    

    (ii)           If
the determination is in connection with a Separation from Service in the second,
third or fourth calendar quarter of a Plan Year, the determination shall be made
using the compensation earned in the prior calendar year (e.g., for a determination
made in the second quarter of 2005, compensation earned in the 2004 calendar
year shall be used).

    

    In
addition, a Participant shall be considered an officer for purposes of
Subsection (a)(1), a 5-percent owner for purposes of Subsection (a)(2) or a
1-percent owner for purposes of Subsection (a)(3) with respect to a Separation
from Service distribution, if the Participant was an officer, a 5-percent owner
or a 1-percent owner (as applicable) at some point during the calendar year that
applies, in accordance with Subparagraphs (i) and (ii) above, in determining the
Participant’s compensation for purposes of that Separation from
Service.

    

    2.22           LRP
Account:

     

    The
individual account maintained for a Participant on the books of his Employer
that indicates the dollar amount that, as of any time, is credited under the
Plan for the benefit of the Participant.  The balance in such LRP
Account shall be determined by the Plan Administrator.  The Plan
Administrator may establish one or more subaccounts as it deems necessary for
the proper administration of the Plan, and may also combine one or more
subaccounts to the extent it deems separate subaccounts are not then needed for
sound recordkeeping.  Where appropriate, a reference to a
Participant’s LRP Account shall include a reference to each applicable
subaccount that has been established thereunder.  “Pre-Break
Subaccount” and “Post-Break Subaccount” shall have the meanings given to them in
Section 3.04.

    

    2.23           LRP
Benefit:

     

    The
amount or amounts that are distributable to a Participant (or Beneficiary) in
accordance with Section 5.03.  A Participant’s LRP Benefit shall be
determined by the Plan Administrator based on the terms of the entire
Plan.

    

    2.24           One-Year
Break in Service:

     

    A 12
consecutive-month period beginning on a Participant’s Separation from Service
and ending on the first anniversary of such date.  Subsequent One-Year
Breaks in Service shall begin on the first and later anniversaries of such date
and end on the next following anniversary.  A Break in Service shall
continue until the Participant is reemployed as an eligible
Executive.  No break in service shall begin until after a Participant
is no longer an active Participant pursuant to Section 3.03(b).

    
      
         

      

      
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    2.25           Participant:

    Any
Executive who is qualified to participate in this Plan in accordance with
Section 3.01 and for whom an Employer maintains on its books a LRP
Account.  An active Participant is one who is due an Employer Credit
for the Plan Year (as provided in Section 3.03).  A Break in Service
Participant shall have the meaning assigned by Section 3.04.

    

    2.26           Plan:

     

    The YUM!
Brands Leadership Retirement Plan, the plan set forth herein and in the Pre-409A
Program documents, as it may be amended and restated from time to time (subject
to the limitations on amendment that are applicable hereunder and under the
Pre-409A Program).

    

    2.27           Plan
Administrator:

     

    The
Company’s Chief People Officer, who shall have the authority to administer the
Plan as provided in Article V.  In turn, the Chief People Officer has
the authority to re-delegate operational responsibilities to other persons or
parties.  As of the Effective Date, the Chief People Officer has
delegated to the Company’s Compensation Department the day to day administration
of the Plan.  References in this document to the Plan Administrator
shall be understood as referring to the Chief People Officer, the Company’s
Compensation Department and any others delegated by the Chief People Officer, as
appropriate under the circumstances.

    

    2.28           Plan
Year:

     

    The
12-consecutive month period beginning on January 1 and ending on the following
December 31 of each year.

    

    2.29           Pre-409A
Program:

     

    The
portion of the Plan that governs benefits that are not subject to Section
409A.  The terms of the Pre-409A Program are set forth in a separate
set of documents.

    

    2.30           Retirement:

     

    A
Participant’s Separation from Service after attaining age 60.

    

    2.31           Section
409A:

     

    Section
409A of the Code and the applicable regulations and other guidance of general
applicability that is issued thereunder.

    

    2.32           Separation
from Service:

     

    A
Participant’s separation from service with the YUM! Organization, within the
meaning of Section 409A(a)(2)(A)(i).  The term may also be used as a
verb (i.e., “Separates from Service”) with no change in meaning.  In
addition, a Separation from Service shall not occur while the
Participant is on an Authorized Leave of Absence or a Disability Leave of
Absence.  For purposes of a Disability Leave of Absence, a Separation
from Service shall occur on the earlier of the date that the Participant has
reached 29 continuous months of a Disability Leave of Absence or the date that
the Participant formally resigns his employment with the Employer and the Yum!
Organization.

    
      
         

      

      
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    2.33           Spouse:

     

    An
individual shall only be recognized by the Plan Administrator as a Spouse or as
being “married” to an Eligible Executive, if – (i) the individual is of the
opposite gender to the Eligible Executive, (ii) the individual and the Eligible
Executive are considered to be legally married (including a common law marriage,
if the common law marriage was formed in one of the states that permit the
formation of a common law marriage), and (iii) the marriage of the individual
and the Eligible Executive is recognized on the relevant day as valid in the
state where the Eligible Executive resides.

    

    2.34           Termination
Date:

     

    The date
that a Participant’s active participation in this Plan terminates as defined in
Section 3.03.

    

    2.35           Valuation
Date:

     

    Each date
as specified by the Plan Administrator from time to time as of which Participant
LRP Accounts are valued in accordance with Plan procedures that are currently in
effect.  As of the Effective Date, the Plan shall have a Valuation
Date for all Plan Participants as of the last day of each Plan
Year.  In addition, if a Participant is entitled to a distribution
under Article V, such Participant shall have a Valuation Date under the Plan
that is the last day of the calendar quarter that contains the date as of which
such Participant becomes entitled to a distribution under Article
V.  In accordance with procedures that may be adopted by the Plan
Administrator, any current Valuation Date may be changed.  Values
under the Plan are determined as of the close of a Valuation Date.  If
a Valuation Date is not a business day, then the Valuation Date will be the
immediately preceding business day.

    

    2.36           Vesting
Schedule:

     

    The
schedule under which a Participant’s LRP Account becomes vested and
nonforfeitable in accordance with Section 5.02 or the Appendix.

    

    2.37           Vested
LRP Account:

     

    The
portion of a Participant’s LRP Account that has become vested and nonforfeitable
within the meaning of Section 5.02(a) or the Appendix.

    
      
         

      

      
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    2.38           Year
of Participation:

     

    The
period during a Plan Year (or such other period as provided in the Appendix) –
(a) during which an Eligible Executive is an active Participant, and (b)
during which an Eligible Executive has not incurred a Termination Date (the
“Participation Period”).  An Eligible Executive is considered an
active Participant only for the period from and after when his participation
begins under Section 3.02 until when it terminates under Section
3.03.  If the Participation Period encompasses the entire Plan Year
(or such other period as provided in the Appendix), the Participant shall be
credited with a complete Year of Participation for such Plan Year (or such other
period as provided in the Appendix).  If the Participation Period
covers only a portion of the Plan Year (or such other period as provided in the
Appendix), then the Participant shall be credited with a fractional Year of
Participation for such Plan Year (or such other period as provided in the
Appendix).  Such fractional Year of Participation shall be equal to
the number of months during the Participation Period divided by twelve;
provided, that if the Participation Period includes at least one day of a month,
the Eligible Executive shall receive credit for the whole month.

    

    2.39           Year
of Service:

     

    The
number of 12-month periods of the most recent continuous employment with the
YUM! Organization commencing on the Participant’s most recent day of employment
or re-employment with the YUM! Organization and ending on the Participant’s
Separation from Service (including those periods that may have occurred prior to
becoming a Plan Participant).  Years of Service shall include
completed years and months.  A partial month shall be counted as a
whole month.  If an individual is previously employed by the YUM!
Organization, incurs a Separation from Service, is rehired by the YUM!
Organization and becomes a Participant in this Plan, the individual’s previous
period or periods of employment are only credited towards the Participant’s
Years of Service to the extent provided in Section 3.01(e) and Section
3.04.

    

    2.40           YUM!
Organization:

     

    The
controlled group of organizations of which the Company is a part, as defined by
Code section 414(b) and (c) and the regulations issued thereunder.  An
entity shall be considered a member of the YUM! Organization only during the
period it is one of the group of organizations described in the preceding
sentence.

    

    
      
         

      

      
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    ARTICLE
III – PARTICIPATION

     

    3.01           Eligibility
to Participate.

     

    (a)           Rules Effective from and
after January 1, 2008.  Effective from and after January 1,
2008, an Executive shall be eligible to participate in this Plan, if the
Executive satisfies all of the following requirements:

    

    (1)           The
Executive meets one of the following –

    

    (i)           The
Executive is classified by his Employer as Level 12 or above on January 1, 2008
(and while he remains so classified);

    

    (ii)           The
Executive is hired by an Employer on or after January 1, 2008 as an Executive
classified as Level 12 or above (and while he remains so classified);
or

    

    (iii)           The
Executive is promoted by an Employer on or after January 1, 2008 from below
Level 12 into a Level 12 or above position (and while he remains so
classified);

    

    (2)           The
Executive is not eligible to participate in the YUM! Brands Retirement Plan;
and

    

    (3)           The
Executive has attained at least age 21.

    

    (b)           Rules Effective for the 2007
Plan Year.  Effective from and after January 1, 2007 and before
January 1, 2008, an Executive shall be eligible to participate in this Plan, if
the Executive satisfies all of the following requirements:

    

    (1)           The
Executive meets one of the following –

    

    (i)           The
Executive is classified by his Employer as Level 14 or above on January 1, 2007
(and while he remains so classified);

    

    (ii)           The
Executive is hired by an Employer on or after January 1, 2007 and before January
1, 2008 as an Executive classified as Level 14 or above (and while he remains so
classified); or

    

    (iii)           The
Executive is promoted by an Employer on or after January 1, 2007 and before
January 1, 2008 from below Level 14 into a Level 14 or above position (and while
he remains so classified);

    

    (2)           The
Executive is not eligible to participate in the YUM! Brands Retirement Plan;
and

    
      
         

      

      
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    (3)           The
Executive has attained at least age 40.

    

    (c)           Rules Effective as of the
Effective Date through December 31, 2006.  Effective from and
after the Effective Date and through December 31, 2006, an Executive shall be
eligible to participate in this Plan, if the Executive satisfies all of the
following requirements:

    

    (1)           The
Executive has been selected by his Employer to participate in this Plan (and
while he remains selected);

    

    (2)           The
Executive is not eligible to participate in the YUM! Brands Retirement Plan;
and

    

    (3)           The
Executive has attained at least age 40.

    

    (d)           Special Eligibility
Rules.  If an Executive was a Participant in the Pre-409A
Program immediately prior to January 1, 2005, the Executive shall remain a
Participant in this Plan subject to the regular participation rules of the Plan,
including Section 3.03.  Further, if an Executive became a Participant
in the Plan by satisfying Section 3.01(b) or (c), such Executive shall remain a
Participant in the Plan after the applicable timeperiod subject to the regular
participation rules of the Plan, including Section 3.03.

    

    (e)           Certain Rehired
Executives.  If an Executive was previously employed by the
YUM! Organization, such Executive was not eligible to participate in this Plan
(e.g., the Executive
was eligible to participate in the YUM! Brands Retirement Plan) as a result of
such previous employment and such Executive is later rehired by the Yum!
Organization and becomes eligible to participate in this Plan on or after his
rehire date, then such rehired Executive –

    

    (1)           Shall
be credited at the start of his first Year of Participation with Years of
Service that include his service relating to his prior period or periods of
employment with the Yum! Organization; and

    

    (2)           Shall
not receive an Employer Credit or any LRP Benefit with respect to any period
prior to his rehire date.

    

    During
the period an individual satisfies the eligibility requirements of the above
Subsections, whichever applies to the individual, he shall be referred to as an
“Eligible Executive.”

    

    3.02           Inception
of Participation.

     

    An
Eligible Executive shall become a Participant in this Plan as of date the
Participant first satisfies the eligibility requirements to be an Eligible
Executive that are set forth in Section 3.01.

    
      
         

      

      
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    3.03           Termination
of Participation.

    (a)           General.  Except
as modified below and except as provided in subsection (b), an individual’s
eligibility to participate actively in this Plan shall cease upon his
“Termination Date,” which is the earliest to occur of the
following:

    

    (1)           The
date the individual ceases to be an Eligible Executive; or

    

    (2)           The
first day an individual begins a period of severance (i.e., the period that follows
a Separation from Service).

    

    Notwithstanding
the prior sentence, an individual shall continue to participate actively in this
Plan during a period of an Authorized Leave of Absence, and an individual who is
on an Authorized Leave of Absence shall have a “Termination Date” on the day the
individual does not return to active work at the end of such Authorized Leave of
Absence.  The calculation of an individual’s Employer Credit shall not
take into account any compensation earned from and after his Termination
Date.  In addition, a Participant’s Participation Period for purposes
of determining Years of Participation shall end on the Participant’s Termination
Date.  If an individual incurs a Termination Date but otherwise
remains an employee of the YUM! Organization (e.g., does not incur a Separation
from Service), such individual shall continue to accrue Years of Service while
remaining in the employ of the YUM! Organization.

    

    (b)           Disability Leave of
Absence.  Notwithstanding subsection (a) above, an individual
shall continue to participate actively in this Plan during a period of a
Disability Leave of Absence.  Accordingly, such individual shall have
a “Termination Date” on the last day of his Disability Leave of
Absence.  If the Participant executes a valid Disability Payment
Election pursuant to Section 4.02, such Participant’s Disability Leave of
Absence shall be extended until the specific payment date listed in the
Disability Payment Election (or such later Disability Payment
Election).  However, if the Participant’s Disability Leave of Absence
terminates due to the Participant’s cessation of Disability Benefits and he
returns to active work with an Employer, such Participant shall not have a
Termination Date (and active participation shall continue) if the Participant
returns to work as an eligible Executive pursuant to Section 3.01.  A
Participant’s Participation Period for purposes of determining Years of
Participation shall end on the Participant’s Termination Date.  Active
participation in this Plan shall continue as provided above without regard to
whether the Participant is generally considered to be a continuing Employee of
the Employer.

    

    (c)           Effect of Distribution of
Benefits.  An individual, who has been a Participant under the
Plan, ceases to be a Participant on the date his Vested LRP Account is fully
distributed.

    

    3.04           Break
in Service.

     

    (a)           Less than a One-Year Break
in Service.  If a Participant incurs a break in service and
returns in an eligible classification, but such break in service is less than a
One-Year Break in Service, such Participant shall be deemed to not have incurred
a Termination Date and his Participation Period, Years of Service, Employer
Credit and Earnings Credit shall be recomputed as if such break in service never
occurred.

    
      
         

      

      
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    (b)           One-Year Break in Service –
Vested Participants.  A Participant who has satisfied the
requirements for vesting under Section 5.02 at the time he incurs a One-Year
Break in Service and who is again employed at any time thereafter in an eligible
classification shall re-participate in this Plan as of the date he becomes an
eligible Executive.  Such individual’s pre-break Years of Service
shall be restored in determining his rights and benefits under the
Plan.  In addition, such individual shall begin a new Participation
Period beginning with the date he once again becomes an active Participant
pursuant to Section 3.02.  However, such individual shall not be
entitled to an Employer Credit for the period of the break.

    

    (c)           One-Year Break in Service –
Non-Vested Participants.  Any Participant not described in
subsection (b) who incurs a One-Year Break in Service and who is again employed
in an eligible classification shall re-participate in this Plan as of the date
he becomes an eligible Executive.  His pre-break Years of Service
shall be restored, but only if the number of his consecutive One-Year Breaks in
Service is less than the greater of: (i) 5, or (ii) the aggregate number of his
pre-break Years of Service.  In addition, such individual shall begin
a new Participation Period beginning with the date he once again becomes an
active Participant pursuant to Section 3.02.  However, such individual
shall not be entitled to an Employer Credit for the period of the
break.

    

    (d)           Break in Service
Subaccounts.  If a Participant incurs a break in service under
this Section and the Participant did not receive a distribution of his LRP
Benefit during or as a result of the break in service (e.g., the break in service
occurs prior to the Participant’s 55th
birthday), the Employer Credits (and the Earnings Credits related thereto) that
are credited after the break in service shall be credited to a separate
subaccount of the Participant’s LRP Account (the “Post-Break
Subaccount”).  The Post-Break Subaccount shall be separately
distributed from the value of the Participant’s pre-break LRP Account, which
shall be referred to as the “Pre-Break Subaccount.”  An affected
Participant shall be able to extend the payment date of the Participant’s
Pre-Break Subaccount by making a Break in Service Payment Election pursuant to
Section 4.03.  A Participant’s Pre-Break Subaccount and Post-Break
Subaccount shall consist of the Participant’s entire LRP Account.  A
Participant who has a Pre-Break and Post-Break Subaccount shall be referred to
as a “Break in Service Participant.”

    

    

    

    

    

    

    

    
      
         

      

      
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    ARTICLE
IV – ELECTIONS

     

    4.01           Beneficiaries.

     

    A
Participant shall be able to designate, on a form provided by the Plan
Administrator for this purpose, a Beneficiary to receive payment, in the event
of his death, of the Participant’s Vested LRP Account.  A Beneficiary
shall be paid in accordance with the terms of the Beneficiary designation form,
as interpreted by the Plan Administrator in accordance with the terms of this
Plan.  At any time, a Participant may change a Beneficiary designation
by completing a new Beneficiary designation form that is signed by the
Participant and filed with the Plan Administrator prior to the Participant’s
death, and that meets such other standards (including the requirement of Spousal
consent for married Participants) as the Plan Administrator shall require from
time to time.

    

    4.02           Deferral
of Payment While Receiving Disability Benefits.

     

    (a)           General.  Effective
from and after January 1, 2008, subject to subsection (b) below, a Participant
who is on a Disability Leave of Absence (and active participation continues
under Section 3.03(b)) may make one or more elections to extend the time of
payment of his LRP Benefit.  This opportunity to extend the
Participant’s time of payment is referred to as a “Disability Payment
Election.”

    

    (b)           Requirements for Disability
Payment Elections.  A Disability Payment Election must comply
with all of the following requirements:

    

    (1)           If
a Participant’s LRP Benefit will be paid at age 55 pursuant to Section 5.03(a)
(e.g,, because the
Participant’s Separation from Service occurred prior to age 55), the Participant
must make his first Disability Payment Election no later than 12 months before
the Participant’s 55th
birthday; provided however a Participant can make a valid Disability Payment
Election within 12 months of his 55th
birthday, if the Participant’s 55th
birthday is in the 2009 calendar year and if the Participant makes the
Disability Payment Election during the 2008 calendar year.

    

    (2)           If
a Participant’s LRP Benefit will be paid at Separation from Service pursuant to
Section 5.03(a) (e.g.,
because the Participant will be age 55 or older upon Separation from
Service), the Participant must make his first Disability Payment Election at
least 12 months before his Separation from Service; provided however a
Participant can make a valid Disability Payment Election within 12 months of his
Separation from Service, if the Participant’s Separation from Service occurs in
the 2009 calendar year and if the Participant makes the Disability Payment
Election during the 2008 calendar year.

    

    (3)           A
Participant’s first Disability Payment Election must specify a new specific
payment date for his LRP Benefits that is at least 5 years after his 55th
birthday or Separation from Service, whichever is applicable as provided in
paragraphs (1) or (2).

    
      
         

      

      
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    (4)           Subsequent
Disability Payment Elections must be made at least 12 months before the specific
payment date of the prior Disability Payment Election and must provide for a new
specific payment date for his LRP Benefits that is at least 5 years after the
prior specific payment date listed in the prior Disability Payment
Election.

    

    (5)           All
Disability Payment Elections must specify a specific payment date, and
Separation from Service or any other event cannot be selected on a Disability
Payment Election.

    

    (6)           All
Disability Payment Elections must comply with all of the requirements of this
Section 4.02.

    

    (7)           A
Participant cannot change the form of payment of his LRP Benefit pursuant to a
Disability Payment Election.

    

    (8)           A
Participant may not make a Disability Payment Election if the election would
provide for a specific payment date after the Participant’s 80th
birthday.

    

    A
Disability Payment Election will be void and payment will be made based on the
provisions of the Plan other than this Section 4.02, if all of the provisions of
the foregoing paragraphs of this subsection are not satisfied in
full.  A Participant’s Disability Payment Election shall become
effective 12 months after the date on which the election is made pursuant to
Section 409A(a)(4)(C)(i).  If a Participant’s Disability Payment
Election becomes effective in accordance with the provisions of this subsection,
the Participant’s prior payment date shall be superseded (including any specific
payment date specified in a prior Disability Payment Election).

    

    (c)           Plan Administrator’s
Role.  Each Participant has the sole responsibility to make a
Disability Payment Election by contacting the Plan Administrator and to comply
with the requirements of this Section.  The Plan Administrator may
provide a notice of a Disability Payment Election opportunity to some or all
affected Participants, but the Plan Administrator is under no obligation to
provide such notice (or to provide it to all affected Participants, in the event
a notice is provided only to some Participants).  The Plan
Administrator has no discretion to waive or otherwise modify any requirement set
forth in this Section or in Section 409A.

    

    4.03           Break
in Service Deferral of Payment.

     

    (a)           General.  Effective
from and after January 1, 2008, subject to subsection (b) below, a Break in
Service Participant may make one or more elections to extend the time of payment
of his Pre-Break Subaccount.  This opportunity to extend the
Participant’s time of payment for his Pre-Break Subaccount is referred to as a
“Break in Service Payment Election.”

    

    (b)           Requirements for Break in
Service Payment Elections.  A Break in Service Payment Election
must comply with all of the following requirements:

    
      
         

      

      
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    (1)           The
Participant must make his first Break in Service Payment Election no later than
12 months before the Participant’s 55th
birthday, and the Break in Service Payment Election must provide for either (i)
a specific payment date that is at least 5 years after the Participant’s 55th
birthday, or (ii) the later of a specific payment date that is at least 5 years
after the Participant’s 55th
birthday or his Separation from Service; provided however a Participant can make
a valid Break in Service Payment Election within 12 months of his 55th
birthday, if the Participant’s 55th
birthday is in the 2009 calendar year and if the Participant makes the Break in
Service Payment Election during the 2008 calendar year.

    

    (2)           Subsequent
Break in Service Payment Elections must be made at least 12 months before the
specific payment date of the prior election and must provide for a new specific
payment date that is at least 5 years after the specific payment date listed in
the prior election.  If a Participant’s prior election was the later
of 5 years after his 55th
birthday or Separation from Service, a subsequent Break in Service Payment
Election must be made at least 12 months prior to the specific payment date
selected on the prior election and at least 12 months prior to his Separation
from Service.  Such subsequent Break in Service Payment Election must
also provide for a distribution on the later of a new specific payment date that
is least 5 years after the specific payment date listed in the prior election or
his Separation from Service.

    

    (3)           All
Break in Service Payment Elections must specify a specific payment
date.

    

    (4)           All
Break in Service Payment Elections must comply with all of the requirements of
this Section 4.03.

    

    (5)           A
Participant cannot change the form of payment of his LRP Benefit pursuant to a
Break in Service Payment Election.

    

    (6)           A
Participant may not make a Break in Service Payment Election if the election
would provide for a specific payment date after the Participant’s 80th
birthday.

    

    (7)           The
Break in Service Payment Election shall only apply to distribution of the Break
in Service Participant’s Pre-Break Subaccount.

    

    (8)           A
Break in Service Payment Election may not be made if Section 5.03(e)
applies.

    

    A Break
in Service Payment Election will be void and payment will be made based on the
provisions of the Plan other than this Section 4.03, if all of the provisions of
the foregoing paragraphs of this subsection are not satisfied in
full.  A Participant’s Break in Service Payment Election shall become
effective 12 months after the date on which the election is made pursuant to
Section 409A(a)(4)(C)(i).  If a Participant’s Break in Service Payment
Election becomes

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    effective
in accordance with the provisions of this subsection, the Participant’s prior
payment date shall be superseded (including any specific payment date specified
in a prior Break in Service Payment Election).

    

    (c)           Plan Administrator’s
Role.  Each Participant has the sole responsibility to make a
Break in Service Payment Election by contacting the Plan Administrator and to
comply with the requirements of this Section.  The Plan Administrator
may provide a notice of a Break in Service Payment Election opportunity to some
or all affected Participants, but the Plan Administrator is under no obligation
to provide such notice (or to provide it to all affected Participants, in the
event a notice is provided only to some Participants).  The Plan
Administrator has no discretion to waive or otherwise modify any requirement set
forth in this Section or in Section 409A.

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    ARTICLE
V – PARTICIPANT LRP BENEFITS

     

    5.01           Credits
to a Participant’s LRP Account.

     

    (a)           General.  The
Plan Administrator shall credit to each Participant’s LRP Account the Employer
Credit (if any) and the Earnings Credit at the times and in the manner specified
in this Section.  A Participant’s LRP Account is solely a bookkeeping
device to track the value of his LRP Benefit (and the Employer’s liability
therefor).  No assets shall be reserved or segregated in connection
with any LRP Account, and no LRP Account shall be insured or otherwise
secured.

    

    (b)           Employer Credit
Percentage.  A Participant’s Employer Credit Percentage (if
any) shall be determined under the following subsections –

    

    (1)           For Periods From and After
January 1, 2008.  For Plan Years beginning from and after
January 1, 2008, unless otherwise provided in the Appendix for one or more
specific Participants, a Participant’s Employer Credit Percentage (if any) shall
be equal to (i) 1.0% for a Participant of any level whose age is less than 40 as
of the Allocation Date and (ii) the following applicable percentage for a
Participant whose age is 40 or greater as of the Allocation Date –

    

    
      
        
          
            
              
                
                  
                    	
                            Participant Level as of Allocation
      Date

                             

                          	
                            Employer Credit Percentage for

                             Participants Age 40 or
      Greater

                             

                          
	
                            Level
      12

                          	
                            4.5%

                          
	
                            Level
      13

                          	
                            5.0%

                          
	
                            Level
      14

                          	
                            5.5%

                          
	
                            Level
      15

                          	
                            6.5%

                          
	
                            Level
      16

                          	
                            7.5%

                          
	
                            Leadership
      Team (LT)

                          	
                            8.0%

                          
	
                            Partners
      Council (PC)

                          	
                            9.5%

                          

                  

                

              

            

          

        

      

    

    

    (2)           For Periods Prior to January
1, 2008.  For Plan Years beginning prior to January 1, 2008,
unless otherwise provided in the Appendix for one or more specific Participants,
a Participant’s Employer Credit Percentage (if any) shall be equal to the
following –

    

    
      
        
          	
                  Participant Level as of Allocation
      Date

                   

                	
                  Employer Credit
  Percentage

                
	
                  Level
      14

                	
                  5.5%

                
	
                  Level
      15

                	
                  6.5%

                
	
                  Level
      16

                	
                  7.5%

                
	
                  Leadership
      Team (LT)

                	
                  8.0%

                
	
                  Partners
      Council (PC)

                	
                  9.5%

                

        

      

    

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    The
Participant shall be assigned the corresponding Employer Credit Percentage for a
Plan Year based upon his level (and age) as of the Allocation Date, regardless
of whether the Participant was at that level (or age) for the entire Plan
Year.

    

    (c)           Employer Credit
Amount.

    

    (1)           General
Rules.  Unless otherwise provided in the Appendix for one or
more specified Participants, the Plan Administrator shall convert the Employer
Credit Percentage into a dollar amount by multiplying the Employer Credit
Percentage by the Participant’s Base Compensation and Bonus Compensation (each
as modified in paragraph (2) below) for the Plan Year, thereafter crediting the
resulting product to the Participant’s LRP Account.  The Employer
Credit shall be determined by the Plan Administrator as soon as administratively
practicable after each Allocation Date and shall be credited to the
Participant’s LRP Account effective as of the Allocation Date.  The
calculation of the Employer Credit by the Plan Administrator shall be conclusive
and binding on all Participants (and their Beneficiaries).  A
Participant shall not receive an Employer Credit for any Allocation Dates that
occur after the Participant’s Termination Date.

    

    (2)           Operating
Rules.  The following operating rules shall apply for purposes
of determining a Participant’s Employer Credit under this Subsection
(c):

    

    (i)           The
Plan Administrator shall use the Participant’s annualized Base Compensation in
effect on the Allocation Date (without regard to whether the Participant’s Base
Compensation changed during the Plan Year) in determining the Participant’s Base
Compensation and Bonus Compensation.

    

    (ii)           If
a Participant has less than 1 full Year of Participation for the Plan Year
(e.g., as may apply in
the Participant’s first and last Plan Year of Participation), the Participant’s
Base Compensation and Bonus Compensation that shall be used shall be multiplied by the
Participant’s fractional Year of Participation for the Plan Year.

    

    (iii)           If
the Participant is on an Authorized Leave of Absence or a Disability Leave of
Absence when an Allocation Date occurs, and as of the Allocation Date the
Participant is not treated by his Employer as having currently applicable
information with respect to Base Compensation, Bonus Compensation or Participant
level, then the item or items of information that is inapplicable shall be
replaced with the corresponding information that was applicable to the
Participant as of the day prior to the Participant going on the Authorized Leave
of Absence or Disability Leave of Absence.

    

    (iv)           For
those Employer Credits that are made from and after when a Participant attains
age 40, a Participant shall not receive an Employer Credit under the Plan after
the Participant’s LRP Account has been credited with 20 full Employer Credits as
an age 40 or older active Participant (i.e., after 20 full Years of
Participation as an age 40 or older active Participant in the
Plan).  For this purpose, a Participant’s Years of Participation shall
be the total number that is counted pursuant to the break in service rules in
Article III, and fractional Years of Participation shall be aggregated into full
Years of Participation.  Accordingly, if a Participant has an initial
fractional Year of Participation and thereafter works continuously as an
Eligible Executive for at least 20 years, the Participant would have an initial
fractional Year of Participation, followed by 19 full Years of Participation,
and ending with a fractional Year of Participation, which when added to the
initial Year of Participation results in a full Year of
Participation.  Employer Credits that are made before a Participant
attains age 40 shall not be limited pursuant to this
subparagraph.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    

    (d)           Earnings
Credit.

    

    (1)           General
Rules.  As of each Valuation Date, the Plan Administrator shall
determine a Participant’s Earnings Credit for the period since the last
Valuation Date by multiplying the Earnings Rate for the period since the last
Valuation Date by the balance of the Participant’s LRP Account as of the current
Valuation Date.  This Earnings Credit will be determined as soon as
practicable after the applicable Valuation Date, and it shall be credited to the
Participant’s LRP Account effective as of such Valuation Date.  If a
Participant has less than 1 full Year of Participation for the Plan Year (e.g., as may apply in the
Participant’s first and last Plan Year of participation), the Participant shall
receive a pro-rated Earnings Credit for that Plan Year that shall be based upon
the Participant’s fractional Year of Participation for the Plan Year that was
earned prior to the Valuation Date on which the pro-rated Earnings Credit will
be made.

    

    (2)           Revisions to Earnings
Rate.  As of the end of each Plan Year, beginning with the end
of the 2007 Plan Year, the Company shall analyze the current Earnings Rate to
determine if the rate provides a market rate of interest.  If the
Earnings Rate is considered to provide a market rate of interest, then the
Earnings Rate will remain the same for the following Plan Year.  If
the Company concludes, in its discretion, that the Earnings Rate does not
provide for a market rate of interest, then the Company currently intends to
establish a new Earnings Rate to provide a market rate of interest, and the
Company currently intends that such new Earnings Rate will apply for the
following Plan Year.  The determination of a market rate of interest
shall be entirely within the discretion of the Company and shall be based on
such factors as the Company determines to consider (e.g., the current 30-year
Treasury Bond yield, the current yield on a certificate of deposit equal to the
remaining time period for the average Participant to reach Retirement and the
LRP Account balance for the average Participant, and such other factors as the
Company shall determine in its sole discretion).  The Company’s
determination regarding a market rate of interest is final and non-reviewable,
and the Company reserves the right to revise its intent in this
regard.  If the Earnings Rate is revised for a Plan Year, the Company
shall authorize attaching an Exhibit to this Plan document indicating the
revised Earnings Rate and the Plan Year to which it applies.

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    

    5.02           Vesting
Schedule.

     

    (a)           General.  Upon
a Separation from Service, a Participant shall only be entitled to a
distribution (at the time provided in Section 5.03) of the portion (if any) of
his LRP Account that has become vested and nonforfeitable at such time pursuant
to the Vesting Schedule (as determined under this Section) that applies to the
Participant.  The portion (if any) of the Participant’s LRP Account
that has not become vested by the Participant’s Separation from Service shall be
forfeited and shall not be distributed to the Participant
hereunder.  The portion of the Participant’s LRP Account (from time to
time) that has become vested and nonforfeitable pursuant to the Participant’s
Vesting Schedule and this Section 5.02 shall be referred to as the Participant’s
“Vested LRP Account.”

    

    (b)           Vesting
Schedule.  Unless Subsection (c) applies or unless otherwise
provided in the Appendix for one or more specific Participants, a Participant’s
LRP Account shall become vested and nonforfeitable pursuant to this
subsection.

    

    (1)           Vesting Schedule as of
January 1, 2008.  Effective January 1, 2008, a Participant
shall become 100% vested in his LRP Account upon attaining three (3) Years of
Service.  For purposes of Participants in this Plan as of December 31,
2007, this paragraph shall apply to all existing LRP Account balances as of
January 1, 2008 based on the Participant’s Years of Service earned both before
and after January 1, 2008.

    

    (2)           Vesting Schedule before
January 1, 2008.  For periods prior to January 1, 2008, a
Participant’s LRP Account shall become vested as follows –

    

    (i)           Upon
attaining five (5) Years of Service, a Participant shall become 50% vested in
his LRP Account, and

    

    (ii)           Upon
attaining ten (10) Years of Service, a Participant shall become 100% vested in
his LRP Account.

    

    (c)           Acceleration of
Vesting.  Notwithstanding Subsection (b) above, a Participant’s
LRP Account shall become 100% vested and nonforfeitable upon the earliest of the
following to occur:

    

    (1)           The
Participant’s Retirement;

    

    (2)           The
Participant becoming Disabled;

    

    (3)           The
Participant’s death; or

    

    (4)           The
occurrence of a Change in Control.

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    5.03           Distribution
of a Participant’s Vested LRP Account.

    The
portion of the Participant’s Vested LRP Account that is governed by the terms of
this 409A Program shall be distributed as provided in this
Section.  All distributions shall be paid in cash.  In no
event shall any portion of a Participant’s Vested LRP Account be distributed
earlier or later than is allowed under Section 409A.

    

    (a)           Distribution Upon Separation
from Service.  Unless the provisions of subsection (b), (c),
(d) or (e) apply, a Participant’s Vested LRP Account shall be distributed upon a
Participant’s Separation from Service (other than for death) as
follows:

    

    (1)           If
a Participant is age 55 or older on the Participant’s Separation from Service,
the Participant’s Vested LRP Account shall be distributed in a single lump sum
payment as of the last day of the calendar quarter that occurs on or immediately
follows the Participant’s Separation from Service.

    

    (2)           If
a Participant is less than age 55 on the Participant’s Separation from Service,
the Participant’s Vested LRP Account shall be distributed in a single lump sum
payment as of the last day of the calendar quarter that occurs on or immediately
follows the Participant’s 55th
birthday.

    

    (3)           If
the Participant is classified as a Key Employee at the time of the Participant’s
Separation from Service (or at such other time for determining Key Employee
status as may apply under Section 409A), then such Participant’s Vested LRP
Account shall not be paid, as a result of the Participant’s Separation from
Service, earlier than the date that is at least 6 months after the Participant’s
Separation from Service.  This shall be implemented as follows
–

    

    (i)           If
the Participant is less than age 55 on the Participant’s Separation from Service
and the Participant is classified as a Key Employee, the distribution shall
occur as provided in paragraph (2) above, or if later, the last day of the
calendar quarter that occurs on or immediately follows the date that is 6 months
after the Participant’s Separation from Service; and

    

    (ii)           If
the Participant is age 55 or older on the Participant’s Separation from Service
and the Participant is classified as a Key Employee, the distribution shall
occur as of the last day of the calendar quarter that occurs on or immediately
follows the date that is 6 months after the Participant’s Separation from
Service.

    

    If the
Participant’s Vested LRP Account balance is zero on his Separation from Service,
the Participant shall be deemed to have received a distribution on his
Separation from Service equal to zero dollars and the unvested portion of his
LRP Benefit shall be forfeited subject to Section 3.04.

    

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

     

    
      (b)           Distributions Upon
Death.  Notwithstanding subsection (a), (c) or (d), if a
Participant dies, the Participant’s Vested LRP Account shall be distributed in
accordance with the following terms and conditions:

       

    

    (1)           Upon
a Participant’s death, the Participant’s Vested LRP Account shall be distributed
in a single lump sum payment as of the last day of calendar quarter that occurs
on or immediately follows the Participant’s death.  Amounts paid
following a Participant’s death shall be paid to the Participant’s
Beneficiary.

    

    (2)           Any
claim to be paid any amounts standing to the credit of a Participant in
connection with the Participant’s death must be received by the Plan
Administrator at least 14 days before any such amount is
distributed.  Any claim received thereafter is untimely, and it shall
be unenforceable against the Plan, the Company, the Plan Administrator or any
other party acting for one or more of them.

    

    (c)           Disability Payment
Elections.  If a Participant has made a valid Disability
Payment Election, his Vested LRP Account shall be distributed in a single lump
sum payment on the last day of the calendar quarter that occurs on or
immediately follows the specific payment date selected on the Disability Payment
Election.

    

    (d)           Break in
Service.  Subject to subsection (e), a Break in Service
Participant’s Vested LRP Account shall be distributed as follows:

    

    (1)           Pre-Break
Subaccount.  A Break in Service Participant’s Pre-Break
Subaccount shall be distributed in a single lump sum payment as of the last day
of the calendar quarter that occurs on or immediately follows the Participant’s
55th
birthday.  However, if a Break in Service Participant has made a valid
Break in Service Payment Election, his Pre-Break Subaccount shall be distributed
in a single lump sum payment on the last day of the calendar quarter that occurs
on or immediately follows the specific payment date (or if applicable, a later
Separation from Service) as selected on the Break in Service Payment
Election.

    

    (2)           Post-Break
Subaccount.  The distribution of a Break in Service
Participant’s Post-Break Subaccount shall be governed by the provisions of
subsection (a).

    

    (e)           Involuntary
Cashout.  Notwithstanding subsection (a) or (d), if a
Participant incurs a Separation from Service (other than for death or
Disability) and the Participant’s Vested LRP Benefit (together with any other
deferred compensation benefits that are required to be aggregated with the LRP
Benefit under Section 409A) is equal to or less than $15,000 at any time on or
after such Separation from Service, the Participant’s Vested LRP Account shall
be distributed in a single lump sum payment as of the last day of the calendar
quarter on or immediately following the Participant’s Separation from Service
(or on or immediately following such later date that this subsection is
determined to apply).  However, if the Participant is classified as a
Key Employee at the time of the Participant’s Separation from Service (or at
such other time for determining Key Employee status as may apply under Section
409A), then such Participant’s Vested LRP Account shall be paid as of the last
day of the calendar quarter on or immediately following the date that is 6
months after the Participant’s Separation from Service.

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    

    (f)           Actual Payment
Date.  An amount payable on a date specified in this Section
shall be paid no later than the later of (a) the end of the calendar year in
which the specified date occurs, or (b) the 15th day
of the third calendar month following such specified date.  In
addition, the Participant (or Beneficiary) is not permitted to designate the
taxable year of the payment.

    

    5.04           Valuation.

     

    In
determining the amount of any individual distribution pursuant to Section 5.03,
the Participant's LRP Account shall continue to be credited with earnings
(whether positive or negative) as specified in Section 5.01(d) until the
Valuation Date that is used in determining the amount of the distribution under
Section 5.03.  The Valuation Date to be used in valuing a distribution
under Section 5.03 shall be the Valuation Date that occurs on the last day of
the calendar quarter on which the payment is to be made.

    

    

    5.05           FICA
Taxes and LRP Account Reduction.

     

    (a)           Calculation of FICA
Taxes.  For each Plan Year in which a Participant’s Account (or
portion of the Account) vests pursuant to Section 5.02 or the Appendix, the
Company shall calculate the applicable FICA taxes that are due and shall pay
such FICA taxes to the applicable tax authorities as provided by Treasury
Regulation Section 31.3121(v)(2)-1.  The amount of the applicable FICA
taxes that are the responsibility of the Participant pursuant to Code Section
3101 shall be paid from the Participant’s LRP Account as provided in Subsection
(b).

    

    (b)           Reduction in LRP Account
Balance.  Effective as of each Allocation Date in a Plan Year
for which FICA taxes are paid for a Participant pursuant to Subsection (a), the
Company shall withhold such FICA taxes from the Participant’s LRP Account and
reduce the Participant’s LRP Account balance by the following amount
–

    

    (1)           The
amount of the applicable FICA taxes calculated by the Company that are the
responsibility of the Participant pursuant to Code Section 3101 (the “FICA
Amount”), plus

    

    (2)           The
amount of Federal, state and local income taxes that are due on the distribution
of the FICA Amount from the Participant’s LRP Account, which net of its own
Federal, state and local income taxes, is sufficient to enable the Company to
pay the full FICA Amount from the Participant’s LRP Account to the applicable
tax authorities.

    

    The
amount calculated pursuant to this Subsection shall be final and binding on the
Participant and shall reduce the Participant’s LRP Account effective as of each
applicable Allocation Date for which a FICA Amount is paid.

    

    

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    ARTICLE
VI – PLAN ADMINISTRATION

     

    6.01           Plan
Administrator.

     

    The Plan
Administrator is responsible for the administration of the Plan.  The
Plan Administrator has the authority to name one or more delegates to carry out
certain responsibilities hereunder, as specified in the definition of Plan
Administrator.  Action by the Plan Administrator may be taken in
accordance with procedures that the Plan Administrator adopts from time to time
or that the Company’s Law Department determines are legally
permissible.

    

    6.02           Powers
of the Plan Administrator.

     

    The Plan
Administrator shall administer and manage the Plan and shall have (and shall be
permitted to delegate) all powers necessary to accomplish that purpose,
including the power:

    

    (a)           To
exercise its discretionary authority to construe, interpret, and administer this
Plan;

    

    (b)           To
exercise its discretionary authority to make all decisions regarding
eligibility, participation and benefits, to make allocations and determinations
required by this Plan, and to maintain records regarding Participants’ LRP
Accounts;

    

    (c)           To
compute and certify to the Employer the amount and kinds of payments to
Participants or their Beneficiaries, and to determine the time and manner in
which such payments are to be paid;

    

    (d)           To
authorize all disbursements by the Employer pursuant to this Plan;

    

    (e)           To
maintain (or cause to be maintained) all the necessary records for
administration of this Plan;

    

    (f)           To
make and publish such rules for the regulation of this Plan as are not
inconsistent with the terms hereof;

    

    (g)           To
delegate to other individuals or entities from time to time the performance of
any of its duties or responsibilities hereunder;

    

    (h)           To
hire agents, accountants, actuaries, consultants and legal counsel to assist in
operating and administering the Plan; and

    

    (i)           To
perform any other acts or make any other decisions with respect to the Plan as
it deems are appropriate or necessary.

    

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    The Plan
Administrator has the exclusive and discretionary authority to construe and to
interpret the Plan, to decide all questions of eligibility for benefits, to
determine the amount and manner of payment of such benefits and to make any
determinations that are contemplated by (or permissible under) the terms of this
Plan, and its decisions on such matters shall be final and conclusive on all
parties.  Any such decision or determination shall be made in the
absolute and unrestricted discretion of the Plan Administrator, even if (1) such
discretion is not expressly granted by the Plan provisions in question, or (2) a
determination is not expressly called for by the Plan provisions in question,
and even though other Plan provisions expressly grant discretion or call for a
determination.  As a result, benefits under this Plan will be paid
only if the Plan Administrator decides in its discretion that the applicant is
entitled to them.  In the event of a review by a court, arbitrator or
any other tribunal, any exercise of the Plan Administrator’s discretionary
authority shall not be disturbed unless it is clearly shown to be arbitrary and
capricious.

    

    6.03           Compensation,
Indemnity and Liability.

     

    The Plan
Administrator shall serve without bond and without compensation for services
hereunder.  All expenses of the Plan and the Plan Administrator shall
be paid by the Employer.  To the extent deemed appropriate by the Plan
Administrator, any such expense may be charged against specific Participant LRP
Accounts, thereby reducing the obligation of the Employer.  No member
of the Plan Administrator, and no individual acting as the delegate of the Plan
Administrator, shall be liable for any act or omission of any other member or
individual, nor for any act or omission on his own part, excepting his own
willful misconduct.  The Employer shall indemnify and hold harmless
each member of the Plan Administrator and any employee of the Company (or a
Company affiliate, if recognized as an affiliate for this purpose by the Plan
Administrator) acting as the delegate of the Plan Administrator against any and
all expenses and liabilities, including reasonable legal fees and expenses,
arising out of his service as the Plan Administrator (or his serving as the
delegate of the Plan Administrator), excepting only expenses and liabilities
arising out of his own willful misconduct.

    

    6.04           Taxes.

     

    If the
whole or any part of any Participant’ s LRP Account becomes liable for the
payment of any estate, inheritance, income, employment, or other tax which the
Company may be required to pay or withhold, the Company will have the full power
and authority to withhold and pay such tax out of any moneys or other property
in its hand for the account of the Participant.  If such withholding
is made from a Participant’s Plan distribution (or the Participant’s LRP
Account), the amount of such withholding will reduce the amount of the Plan
distribution (or the Participant’s LRP Account).  To the extent
practicable, the Company will provide the Participant notice of such
withholding.  Prior to making any payment, the Company may require
such releases or other documents from any lawful taxing authority as it shall
deem necessary.  In addition, to the extent required by Section 409A
amounts deferred under this Plan shall be reported on the Participants’ Forms
W-2.  Also, any amounts that become taxable hereunder shall be
reported as taxable wages on a Participant’s Form W-2.

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    

    6.05           Records
and Reports.

     

    The Plan
Administrator shall exercise such authority and responsibility as it deems
appropriate in order to comply with ERISA and government regulations issued
thereunder relating to records of Participants’ service and benefits,
notifications to Participants; reports to, or registration with, the Internal
Revenue Service; reports to the Department of Labor; and such other documents
and reports as may be required by ERISA.

    

    6.06           Rules
and Procedures.

     

    The Plan
Administrator may adopt such rules and procedures as it deems necessary,
desirable, or appropriate.  To the extent practicable and as of any
time, all rules and procedures of the Plan Administrator shall be uniformly and
consistently applied to Participants in the same circumstances.  When
making a determination or calculation, the Plan Administrator shall be entitled
to rely upon information furnished by a Participant or Beneficiary and the legal
counsel of the Plan Administrator or the Company.

    

    6.07           Applications
and Forms.

     

    The Plan
Administrator may require a Participant or Beneficiary to complete and file with
the Plan Administrator an application for a distribution and any other forms (or
other methods for receiving information) approved by the Plan Administrator, and
to furnish all pertinent information requested by the Plan
Administrator.  The Plan Administrator may rely upon all such
information so furnished it, including the Participant’s or Beneficiary’s
current mailing address, age and marital status.

    

    6.08           Conformance
with Section 409A.

     

    At all
times during each Plan Year, this Plan shall be operated (i) in accordance with
the requirements of Section 409A, and (ii) to preserve the status of benefits
under the Pre-409A Program as being exempt from Section 409A, i.e., to preserve the
grandfathered status of the Pre-409A Program.  In all cases, the
provisions of this Section shall apply notwithstanding any contrary provision of
the Plan that is not contained in this Section.

    

    
      
         

      

      
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    ARTICLE
VII – CLAIMS PROCEDURES

     

    7.01           Claims
for Benefits.

     

    If a
Participant, Beneficiary or other person (hereafter, “Claimant”) does not
receive timely payment of any benefits which he believes are due and payable
under the Plan, he may make a claim for benefits to the Plan
Administrator.  The claim for benefits must be in writing and
addressed to the Plan Administrator.  If the claim for benefits is
denied, the Plan Administrator shall notify the Claimant in writing within 90
days after the Plan Administrator initially received the benefit
claim.  However, if special circumstances require an extension of time
for processing the claim, the Plan Administrator shall furnish notice of the
extension to the Claimant prior to the termination of the initial 90-day period
and such extension may not exceed one additional, consecutive 90-day
period.  Any notice of extension shall indicate the reasons for the
extension and the date by which the Plan Administrator expects to make a
determination.  Any notice of a denial of benefits shall be in writing
and drafted in a manner calculated to be understood by the Claimant and shall
advise the Claimant of the basis for the denial, any additional material or
information necessary for the Claimant to perfect his claim, and the steps which
the Claimant must take to have his claim for benefits reviewed on
appeal.

    

    7.02           Appeals.

     

    Each
Claimant whose claim for benefits has been denied may file a written request for
a review of his claim by the Plan Administrator.  The request for
review must be filed by the Claimant within 60 days after he received the
written notice denying his claim.  Upon review, the Plan Administrator
shall provide the Claimant a full and fair review of the claim, including the
opportunity to submit written comments, documents, records and other information
relevant to the claim and the Plan Administrator's review shall take into
account such comments, documents, records and information regardless of whether
they were submitted or considered at the initial determination.  The
decision of the Plan Administrator shall be made within 60 days after receipt of
a request for review and will be communicated in writing and in a manner
calculated to be understood by the Claimant.  Such written notice
shall set forth the basis for the Plan Administrator's decision.  If
there are special circumstances which require an extension of time for
completing the review, the Plan Administrator shall furnish notice of the
extension to the Claimant prior to the termination of the initial 60-day period
and such extension may not exceed one additional, consecutive 60-day
period.  Any notice of extension shall indicate the reasons for the
extension and the date by which the Plan Administrator expects to make a
determination.

    

    7.03           Special
Claims Procedures for Disability Determinations.

     

    Notwithstanding
Sections 7.01 and 7.02, if the claim or appeal of the Claimant relates to
benefits while a Participant is disabled, such claim or appeal shall be
processed pursuant to the applicable provisions of Department of Labor
Regulation Section 2560.503-1 relating to disability benefits, including
Sections 2560.503-1(d), 2560.503-1(f)(3), 2560.503-1(h)(4) and
2560.503-1(i)(3).  These provisions include the
following:

    
      
         

      

      
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    (a)           If
the Plan Administrator wholly or partially denies a Claimant’s claim for
disability benefits, the Plan Administrator shall provide the Claimant, within a
45-day response period following the receipt of the claim by the Plan
Administrator, a comprehensible written notice setting forth (1) the basis for
the denial, (2) any additional material or information necessary for the
Claimant to perfect his claim, and (3) the steps which the Claimant must take to
have his claim for benefits reviewed on appeal.  If, for reasons
beyond the control of the Plan Administrator, an extension of time is required
for processing the claim, the Plan Administrator will send a written notice of
the extension, an explanation of the circumstances requiring extension and the
expected date of the decision before the end of the 45-day
period.  The Plan Administrator may only extend the 45-day period
twice, each in 30-day increments.  If at any time the Plan
Administrator requires additional information in order to determine the claim,
the Plan Administrator shall send a written notice explaining the unresolved
issues that prevent a decision on the claim and a listing of the additional
information needed to resolve those issues.  The Claimant will have 45
days from the receipt of that notice to provide the additional information, and
during the time that a request for information is outstanding, the running of
the time period in which the Plan Administrator must decide the claim will be
suspended.

    

    (b)           If
the Plan Administrator denies all or part of a claim, further review of the
claim is available upon written request by the Claimant to the Plan
Administrator within 180 days after receipt by the Claimant of written notice of
the denial.  Upon review, the Plan Administrator shall provide the
Claimant a full and fair review of the claim, including the opportunity to
submit written comments, documents, records and other information relevant to
the claim and the Plan Administrator’s review shall take into account such
comments, documents, records and information regardless of whether it was
submitted or considered at the initial determination.  The decision on
review shall be made within 45 days after receipt of the request for review,
unless circumstances beyond the control of the Plan Administrator warrant an
extension of time not to exceed an additional 45 days.  If this
occurs, written notice of the extension will be furnished to the Claimant before
the end of the initial 45-day period, indicating the special circumstances
requiring the extension and the date by which the Plan Administrator expects to
make the final decision.  The final decision shall be in writing and
drafted in a manner calculated to be understood by the Claimant, and shall
include the specific reasons for the decision with references to the specific
Plan provisions on which the decision is based.

    

    7.04           Exhaustion
of Claims Procedures.

     

    Before
filing any claim or action in court or in another tribunal, the Executive,
former Executive, Participant, former Participant, Spouse, former Spouse or
other individual, person, entity, representative, or group of one or more of the
foregoing (collectively, a “Claimant”) must first fully exhaust all of the
Claimant’s actual or potential rights under the claims procedures of Sections
7.01, 7.02 and 7.03, including such rights as the Plan Administrator may choose
to provide in connection with novel claims, disputes or issues or in particular
situations.  For purposes of the prior sentence, any Claimant that has
any claim, dispute, issue or matter that implicates in whole or in part
–

    
      
         

      

      
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    (a)           The
interpretation of the Plan,

    

    (b)           The
interpretation of any term or condition of the Plan,

    

    (c)           The
interpretation of the Plan (or any of its terms or conditions) in light of
applicable law,

    

    (d)           Whether
the Plan or any term or condition under the Plan has been validly adopted or put
into effect,

    

    (e)           Whether
the Plan or any term or condition under the Plan satisfies any applicable law,
or

    

    (f)           Any
claim, issue or matter deemed similar to any of the foregoing by the Plan
Administrator

    

    (or two
or more of these) shall not be considered to have satisfied the exhaustion
requirement of this Section unless the Claimant first submits the claim,
dispute, issue or matter to the Plan Administrator to be processed pursuant to
the claims procedures of Sections 7.01, 7.02 and 7.03 or to be otherwise
considered by the Plan Administrator, and regardless of whether claims,
disputes, issues or matters that are not listed above are of greater
significance or relevance.  The exhaustion requirement of this Section
shall apply even if the Plan Administrator has not previously defined or
established specific claims procedures that directly apply to the submission and
consideration of such claim, dispute, issue or matter, and in which case the
Plan Administrator (upon notice of the claim, dispute, issue or matter) shall
either promptly establish such claims procedures or shall apply (or act by
analogy to) the claims procedures of Sections 7.01, 7.02 and 7.03 that apply to
claims for benefits.  Upon review by any court or other tribunal, this
exhaustion requirement is intended to be interpreted to require exhaustion in as
many circumstances as possible (and any steps necessary to effect this intent
should be taken).

    

    7.05           Limitations
on Actions.

     

    Effective
from and after January 1, 2008, any claim or action filed in state or Federal
court (or any other tribunal) by or on behalf of a Claimant (as defined in
Section 7.04) with respect to this Plan must be brought within the applicable
timeframe that relates to the claim or action, listed as follows:

    

    (a)           Any
claim or action relating to the alleged wrongful denial of Plan benefits must be
brought within two years of the earlier of the date that the Claimant received
the payment of the Plan benefits that are the subject of the claim or action or
the date that the Claimant has received his calculation of Plan benefits that
are the subject of the claim or action; and

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    (b)           Any
other claim or action not covered by subsection (a) above (including a claim or
action relating to an alleged interference or violation of ERISA-protected
rights), must be brought within two years of the date when the Claimant has
actual or constructive knowledge of the acts that are alleged to give rise to
the claim or action.

    

    Failure
to bring any such claim or action within the aforementioned timeframes shall
mean that such claim or action is null and void and of no
effect.  Correspondence or other communications (including the
mandatory claims procedures in this Article VII) by the Company, an Employer,
the Plan Administrator or any other person or entity related or affiliated with
the YUM! Organization shall have no effect on the above timeframes.

    

    

    
      
         

      

      
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    ARTICLE
VIII – AMENDMENT AND TERMINATION

     

    8.01           Amendment
to the Plan.

     

    The
Company, or its delegate, has the right in its sole discretion to amend this
Plan in whole or in part at any time and in any manner, including the terms and
conditions of LRP Benefits, the terms on which distributions are made, and the
form and timing of distributions.  However, except for mere clarifying
amendments necessary to avoid an inappropriate windfall, no Plan amendment shall
reduce the balance of a Participant’s Vested LRP Account as of the date such
amendment is adopted.  In addition, the Company shall have the limited
right to amend the Plan at any time, retroactively or otherwise, in such
respects and to such extent as may be necessary to fully qualify it under
existing and applicable laws and regulations, and if and to the extent necessary
to accomplish such purpose, may by such amendment decrease or otherwise affect
benefits to which Participants may have already become entitled, notwithstanding
any provision herein to the contrary.

    

    The
Company’s right to amend the Plan shall not be affected or limited in any way by
a Participant’s Retirement or other Separation from Service.  In
addition, the Company’s right to amend the Plan shall not be affected or limited
in any way by a Participant’s death or Disability.  Prior practices by
the Company or an Employer shall not diminish in any way the rights granted the
Company under this Section.  Also, it is expressly permissible for an
amendment to affect less than all of the Participants covered by the
Plan.

    

    Any
amendment shall be in writing and adopted by the Company or by any officer of
the Company who has authority or who has been granted or delegated the authority
to amend this Plan.  An amendment or restatement of this Plan shall
not affect the validity or scope of any grant or delegation of such authority,
which shall instead be solely determined based upon the terms of the grant or
delegation (as determined under applicable law).  All Participants and
Beneficiaries shall be bound by such amendment.

    

    Any
amendments made to the Plan shall be subject to any restrictions on amendment
that are applicable to ensure continued compliance under Section
409A.

    

    8.02           Termination
of the Plan.

     

    The
Company expects to continue this Plan, but does not obligate itself to do
so.  The Company reserves the right to discontinue and terminate the
Plan at any time, in whole or in part, for any reason (including a change, or an
impending change, in the tax laws of the United States or any
state).  Such termination shall be in writing and adopted by the
Company or by any officer of the Company who has authority or who has been
granted or delegated the authority to terminate this Plan.  An
amendment or restatement of this Plan shall not affect the validity or scope of
any grant or delegation of such authority, which shall instead be solely
determined based upon the terms of the grant or delegation (as determined under
applicable law).

    

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    
      Termination
of the Plan shall be binding on all Participants (and a partial termination
shall be binding upon all affected Participants), but in no event may such
termination reduce the balance of a Participant’s Vested LRP Account at
the time of the termination.  If this Plan is terminated (in whole or
in part), the affected Participants’ Vested LRP Accounts may either be paid in a
single lump sum immediately, or distributed in some other manner consistent with
this Plan, as provided by the Plan termination resolution.  The
Company’s rights under this Section shall be no less than its rights under
Section 8.01.  Thus, for example, the Company may amend the Plan
pursuant to the third sentence of Section 8.01 in conjunction with the
termination of the Plan, and such amendment will not violate the prohibition on
reducing a Participant’s Vested LRP Account under this Section
8.02.  This Section is subject to the same restrictions related to
compliance with Section 409A that apply to Section 8.01.

    

    
      
         

      

      
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    ARTICLE
IX – MISCELLANEOUS

     

    9.01           Limitation
on Participant Rights.

     

    Participation
in this Plan does not give any Participant the right to be retained in the
Employer's or Company's employ (or any right or interest in this Plan or any
assets of the Company or Employer other than as herein provided).  The
Company and Employer reserve the right to terminate the employment of any
Participant without any liability for any claim against the Company or Employer
under this Plan, except for a claim for payment of benefits as provided
herein.

    

    9.02           Unfunded
Obligation of Individual Employer.

     

    The
benefits provided by this Plan are unfunded.  All amounts payable
under this Plan to Participants are paid from the general assets of the
Participant’s individual Employer.  Nothing contained in this Plan
requires the Company or Employer to set aside or hold in trust any amounts or
assets for the purpose of paying benefits to Participants.  Neither a
Participant, Beneficiary, nor any other person shall have any property interest,
legal or equitable, in any specific Employer asset.  This Plan creates
only a contractual obligation on the part of a Participant’s individual
Employer, and the Participant has the status of a general unsecured creditor of
his Employer with respect to benefits granted hereunder.  Such a
Participant shall not have any preference or priority over, the rights of any
other unsecured general creditor of the Employer.  No other Employer
guarantees or shares such obligation, and no other Employer shall have any
liability to the Participant or his Beneficiary.  In the event a
Participant transfers from the employment of one Employer to another, the former
Employer shall transfer the liability for benefits made while the Participant
was employed by that Employer to the new Employer (and the books of both
Employers shall be adjusted appropriately).

    

    9.03           Other
Benefit Plans.

     

    This Plan
shall not affect the right of any Eligible Executive or Participant to
participate in and receive benefits under and in accordance with the provisions
of any other employee benefit plans which are now or hereafter maintained by any
Employer, unless the terms of such other employee benefit plan or plans
specifically provide otherwise or it would cause such other plan to violate a
requirement for tax-favored treatment.

    

    9.04           Receipt
or Release.

     

    Any
payment to a Participant or Beneficiary in accordance with the provisions of
this Plan shall, to the extent thereof, be in full satisfaction of all claims
against the Plan Administrator, the Employer and the Company, and the Plan
Administrator may require such Participant or Beneficiary, as a condition
precedent to such payment, to execute a receipt and release to such
effect.

    
      
         

      

      
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    9.05           Governing
Law.

     

    This Plan
shall be construed, administered, and governed in all respects in accordance
with ERISA and, to the extent not preempted by ERISA, in accordance with the
laws of the State of Kentucky.  If any provisions of this instrument
shall be held by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions hereof shall continue to be fully
effective.

    

    9.06           Adoption
of Plan by Related Employers.

     

    The Plan
Administrator may select as an Employer any division of the Company, as well as
any member of the YUM! Organization, and permit or cause such division or
organization to adopt the Plan.  The selection by the Plan
Administrator shall govern the effective date of the adoption of the Plan by
such related Employer.  The requirements for Plan adoption are
entirely within the discretion of the Plan Administrator and, in any case where
the status of an entity as an Employer is at issue, the determination of the
Plan Administrator shall be absolutely conclusive.

    

    9.07           Rules
of Construction.

     

    The
provisions of this Plan shall be construed according to the following
rules:

    

    (a)           Gender and
Number.  Whenever the context so indicates, the singular or
plural number and the masculine, feminine, or neuter gender shall be deemed to
include the other.

    

    (b)           Examples.  Whenever
an example is provided or the text uses the term “including” followed by a
specific item or items, or there is a passage having a similar effect, such
passage of the Plan shall be construed as if the phrase “without limitation”
followed such example or term (or otherwise applied to such passage in a manner
that avoids limitation on its breadth of application).

    

    (c)           Compounds of the Word
“Here”.  The words "hereof", “herein”, "hereunder" and other
similar compounds of the word "here" shall mean and refer to the entire Plan,
not to any particular provision or section.

    

    (d)           Effect of Specific
References.  Specific references in the Plan to the Plan
Administrator’s discretion shall create no inference that the Plan
Administrator’s discretion in any other respect, or in connection with any other
provisions, is less complete or broad.

    

    (e)           Subdivisions of the Plan
Document.  This Plan document is divided and subdivided using
the following progression: articles, sections, subsections, paragraphs,
subparagraphs and clauses.  Articles are designated by capital roman
numerals.  Sections are designated by Arabic numerals containing a
decimal point.  Subsections are designated by lower-case letters in
parentheses.  Paragraphs are designated by Arabic numbers in
parentheses.  Subparagraphs are designated by lower-case roman
numerals in parenthesis.  Clauses are designated
by upper-case letters in parentheses.  Any reference in a section to a
subsection (with no accompanying section reference) shall be read as a reference
to the subsection with the specified designation contained in that same
section.  A similar reading shall apply with respect to paragraph
references within a subsection and subparagraph references within a
paragraph.

    
      
         

      

      
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    (f)           Invalid
Provisions.  If any provision of this Plan is, or is hereafter
declared to be void, voidable, invalid or otherwise unlawful, the remainder of
the Plan shall not be affected thereby.

    

    9.08           Successors
and Assigns; Nonalienation of Benefits.

     

    This Plan
inures to the benefit of and is binding upon the parties hereto and their
successors, heirs and assigns; provided, however, that the amounts credited to
the LRP Account of a Participant are not (except as provided in Sections 5.05
and 6.04) subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution or levy of any
kind, either voluntary or involuntary, and any attempt to anticipate, alienate,
sell, transfer, assign, pledge, encumber, charge or otherwise dispose of any
right to any benefits payable hereunder, including, without limitation, any
assignment or alienation in connection with a separation, divorce, child support
or similar arrangement, will be null and void and not binding on the Plan or the
Company or any Employer.  Notwithstanding the foregoing, the Plan
Administrator reserves the right to make payments in accordance with a divorce
decree, judgment or other court order as and when cash payments are made in
accordance with the terms of this Plan from the Vested LRP Account of a
Participant.  Any such payment shall be charged against and reduce the
Participant’s Account.

    

    9.09           Facility
of Payment.

     

    Whenever,
in the Plan Administrator's opinion, a Participant or Beneficiary entitled to
receive any payment hereunder is under a legal disability or is incapacitated in
any way so as to be unable to manage his financial affairs, the Plan
Administrator may direct the Employer to make payments to such person or to the
legal representative of such person for his benefit, or to apply the payment for
the benefit of such person in such manner as the Plan Administrator considers
advisable.  Any payment in accordance with the provisions of this
Section shall be a complete discharge of any liability for the making of such
payment to the Participant or Beneficiary under the Plan.

    

    

    
      
         

      

      
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    ARTICLE
X – SIGNATURE

     

    

    IN
WITNESS WHEREOF, this 409A Program is hereby amended and restated by the
Company’s duly authorized officer to be effective as provided
herein.

     

     

    
      
        
          	 
      	
                  YUM!
      BRANDS, INC.

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                  By:

                
	 
      	
                  Anne
      Byerlein, Chief People Officer

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                  Signature
      Date

                   

                

        

      

    

     

    
 

    

    

    
      
         

      

      
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    APPENDIX

     

    

    This
Appendix modifies particular terms of this Plan document as it may apply to
certain groups and situations.  Except as specifically modified in
this Appendix, the foregoing main provisions of this Plan document shall fully
apply in determining the rights and benefits of Participants.  In the
event of a conflict between this Appendix and the foregoing main provisions of
this Plan document, the Appendix shall govern.

    

    

    

    
      
         

      

      
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    APPENDIX
ARTICLE A – LRP BENEFITS FOR CERTAIN PARTICIPANTS

     

    

    A.01           Scope.

     

    This
Article A provides special rules that relate to certain Participants in the
Plan.  This Article A applies only to the following Class I Appendix
Participants and Class II Appendix Participants listed as follows –

    

    (a)           Class
I Appendix Participants are Scott Bergren, Clyde Leff, Micky Pant, Robert
Lauber, Michael Liewen and effective as of May 7, 2007, Albert Baladi;
and

    

    (b)           Class
II Appendix Participants are Brian Niccol, Angelia Pelham, Misty Reich, Patrick
Grismer, Douglas Hasselo and William Pearce.

    

    A.02           Allocation
Date for Class I Appendix Participants.

     

    (a)           From and After January 1,
2007.  Beginning from and after January 1, 2007, the Allocation
Date listed in Article II shall apply to each Class I Appendix
Participant.

    

    (b)           Plan Years Prior to January
1, 2007.  Except as provided in Subsection (c) below, for Plan
Years prior to January 1, 2007, the Allocation Date for a Class I Appendix
Participant shall be each anniversary of a Class I Appendix Participant’s date
of hire by his Employer beginning with the first anniversary that is one (1)
year after his date of hire.  A Class I Appendix Participant shall
also have an Allocation Date on his Termination Date.

    

    (c)           Transition Rules for
2006.  For the 2006 Plan Year, each Class I Appendix
Participant shall have two (2) Allocation Dates during the 2006 Plan
Year.  The first Allocation Date shall be as provided in Subsection
(b) above.  The second Allocation Date shall be as of the last
business day of the 2006 Plan Year.  In determining the Employer
Credit amount for each Allocation Date during 2006, the Plan Administrator shall
use the Class I Appendix Participant’s annualized Base Compensation in effect on
each Allocation Date (and shall not prorate the compensation if the Class I
Appendix Participant received an increase in Base Compensation during the
applicable period).  In addition, for the second Allocation Date
(which shall be on the last business day of the 2006 Plan Year) the Class I
Appendix Participant’s Base Compensation that shall be used shall be equal to
the Class I Appendix Participant’s annualized Base Compensation in effect on the
second Allocation Date multiplied by the
Class I Appendix Participant’s fractional Year of Participation earned from the
period beginning from the first Allocation Date and ending on the second
Allocation Date.

    

    A.03           Employer
Credit for Class I Appendix Participants.

     

    (a)           Employer Credit
Percentage.  In lieu of the Employer Credit Percentage under
Section 5.01(b), a Class I Appendix Participant’s Employer Credit Percentage
(and his “Maximum
Years of Employer Credits” in Subsection (b)(2)(vi) below) shall be equal to the
following –

    
      

      
        
          	
                  Class I Appendix Participant

                   

                	
                  Employer Credit Percentage

                	
                  Maximum Years of

                   Employer Credits

                   

                
	
                  Albert
      Baladi

                	
                  21.5%

                	
                  No
      maximum

                
	
                  Scott
      Bergren

                	
                  28%

                	
                  No
      maximum

                
	
                  Clyde
      Leff

                	
                  20%

                	
                  9

                
	
                  Micky
      Pant

                	
                  20%

                	
                  No
      maximum

                
	
                  Robert
      Lauber

                	
                  16%

                	
                  20

                
	
                  Michael
      Liewen

                	
                  20%

                	
                  12

                

        

      

      

    

    
      
         

      

      
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    The
Employer Credit Percentage listed above shall remain the same during the Class I
Appendix Participant’s participation in the Plan and shall not change due to a
change in his employment level or age.

    

    (b)           Employer Credit
Amount.

    

    (1)           General
Rule.  In lieu of the provisions under Section 5.01(c), a Class
I Appendix Participant’s Employer Credit shall be determined by the Plan
Administrator by converting the Employer Credit Percentage into a dollar amount
by multiplying the Employer Credit Percentage by the Class I Appendix
Participant’s Base Compensation (as modified in paragraph (2) below), thereafter
crediting the resulting product to the Class I Appendix Participant’s LRP
Account.  However, notwithstanding the foregoing, effective from and
after January 1, 2008 the Employer Credit for Scott Bergren, Mickey Pant and
Albert Baladi shall be determined by multiplying their respective Employer
Credit Percentages by their Base Compensation and Bonus Compensation (as
modified in paragraph (2) below), and thereafter crediting the resulting product
to their respective LRP Accounts.  The Employer Credit shall be
determined by the Plan Administrator as soon as administratively practicable
after each Allocation Date and shall be credited to the Class I Appendix
Participant’s LRP Account effective as of the Allocation Date.  The
calculation of the Employer Credit by the Plan Administrator shall be conclusive
and binding on all Class I Appendix Participants (and their
Beneficiaries).

    

    (2)           Operating
Rules.  The following operating rules shall apply for purposes
of determining a Class I Appendix Participant’s Employer Credit under this
Subsection (b):

    

    (i)           The
Plan Administrator shall use the Class I Appendix Participant’s annualized Base
Compensation in effect on the Allocation Date (and shall not prorate the
compensation if the Class I Appendix Participant received an increase in Base
Compensation during the applicable period).

    
      
         

      

      
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    (ii)           If
a Class I Appendix Participant has less than one (1) Year of Participation
measured from the last Allocation Date for which the Class I Appendix
Participant received an Employer Credit to the current Allocation Date (e.g., as may apply upon the
Class I Appendix Participant’s Termination Date), the Class I Appendix
Participant’s Base Compensation that shall be used shall be equal to the Class I
Appendix Participant’s annualized Base Compensation multiplied by the
Class I Appendix Participant’s fractional Year of Participation for such
period.

    

    (iii)           If
applicable, the transition rules in Section A.02 for the 2006 Plan Year shall
apply.

    

    (iv)           The
rules of Section 5.01(c)(2)(iii) shall apply (i.e., the rules on Employer
Credits during an Authorized Leave of Absence); provided, however, an Employer
Credit for a Class I Appendix Participant shall only be based on his Base
Compensation (or his Base Compensation and Bonus Compensation for Scott Bergren,
Mickey Pant and Albert Baladi).

    

    (v)           Notwithstanding
anything in the Plan or the Appendix to the contrary, a Class I Appendix
Participant shall not receive an Employer Credit using his applicable Bonus
Compensation; provided however this subparagraph shall not apply to Scott
Bergren, Mickey Pant and Albert Baladi.

    

    (vi)           A
Class I Appendix Participant shall not receive an Employer Credit under the Plan
after the Class I Appendix Participant’s LRP Account has been credited with the
“Maximum Years of Employer Credits” listed in the chart in Subsection (a) above
(i.e., after the
applicable number of full Years of Participation as an active Participant in the
Plan).  For this purpose, all of a Class I Appendix Participant’s
Years of Participation shall be counted (including Years of Participation before
a break in service), and fractional Years of Participation shall be aggregated
into full Years of Participation.  However, if a Class I Appendix
Participant has “no maximum” listed in the chart in Subsection (a) above, then
the provisions of this subparagraph shall not apply to such Class I Appendix
Participant.

    

    A.04           Special
Interim Earnings Rate for Class I Appendix Participants.

     

    Notwithstanding
Section 2.11(b), the Earnings Rate for Class I Appendix Participants for the
period prior to January 1, 2007 shall be the Earnings Rate provided in Section
2.11(a) (i.e., 6% per
annum).  Beginning from and after January 1, 2007, the Earnings Rate
for Class I Appendix Participants shall be as provided in Section 2.11(b) (i.e., 5% per annum), subject
to adjustment in Section 5.01(d).

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

    

    A.05           Vesting
for Class I Appendix Participants.

     

    In lieu
of Section 5.02(b), a Class I Appendix Participant’s LRP Account shall become
vested and nonforfeitable as follows:

    

    (a)           For
Scott Bergren, his LRP Account shall become vested and nonforfeitable as
follows:

    

    
      
        	
                Years of Service

                 

              	
                Vested Percentage

              
	
                1

              	
                0%

              
	
                2

              	
                25%

              
	
                3

              	
                50%

              
	
                4

              	
                75%

              
	
                5

              	
                100%

              

      

    

    

    (b)           For
all Class I Appendix Participants other than Scott Bergren, their LRP Accounts
shall become 100% vested and nonforfeitable after five (5) Years of
Service.

    

    (c)           Effective
January 1, 2008, all Class I Appendix Participants shall become 100% vested in
his LRP Account upon attaining three (3) Years of Service.  For
purposes of Class I Appendix Participants in this Plan as of December 31, 2007,
this paragraph shall apply to all existing LRP Account balances as of January 1,
2008 based on the Class I Appendix Participant’s Years of Service earned both
before and after January 1, 2008.

    

    A.06           Initial
Eligibility Date for Class II Appendix Participants.

     

    Each
Class II Appendix Participant’s initial eligibility date under Section 3.02(b)
shall be July 1, 2006.

    

    A.07           Employer
Credit Percentage for Class II Appendix Participants.

     

    In lieu
of the Employer Credit Percentage under Section 5.01(b), a Class II Appendix
Participant’s Employer Credit Percentage shall be equal to the following
–

    

    
      
        	
                Class II Appendix Participant Level as
      of

                 Allocation Date

                 

              	
                Employer Credit
  Percentage

              
	
                Level
      14

              	
                7.0%

              
	
                Level
      15

              	
                8.0%

              
	
                Level
      16

              	
                9.0%

              
	
                Leadership
      Team (LT)

              	
                9.5%

              
	
                Partner
      Counsel (PC)

              	
                11.5%

              

      

    

    

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

    The
Employer Credit Percentage listed above shall be used for all Allocation Dates
for a Class II Appendix Participant that occur while the Class II Appendix
Participant is earning Years of Service under the Plan that is prior to a break
in service.  The Class II Appendix Participant shall be assigned the
corresponding Employer Credit Percentage for a Plan Year based upon his level
status as of the Allocation Date, regardless of whether the Class II Appendix
Participant was at that level for the entire Plan Year.  The amount of
the Employer Credit shall then be calculated under the provisions of Section
5.01(c).

    

    46exhib10_35.htm

  

    
      

      

      

      

      

      

      

      2009

      

      

      

      

      

      

      

      

      

    

    
      

      Yum!
Performance Share Plan Summary

       

    

    
      March
27, 2009

      

      

      

      

      

      

      

      

      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Eligibility

            

    

    

    You are
eligible to earn an award under the Yum! Performance Share Plan (the “Plan”) if
you are the Chief Executive Officer, Chief Financial Officer, or Brand
President, as determined by the committee administering the
Program.

    

    
      	
              Introduction

            

    

    

    As a
participant in the Plan, you will be granted Units which will represent shares
of Yum! common stock.  You will receive a share of Yum! stock for each
Unit at the end of the three calendar year Performance Period (2009-2011),
provided that the total number of shares you receive will be adjusted up or down
depending on the Compound Annual Growth Rate during the Performance Period, and
adjusted for dividends paid on Yum! shares during the Performance Period, as
described below.

    

    
      	
              Grant
      of Units

            

    

    

    At the
beginning of the Performance Period, you will receive a grant with a face value
equal to 33% of your target bonus for the first year of the Performance
Period.  This face value will be divided by the closing price of a
share of Yum! stock on March 27, 2009, the date the Program was established, to
determine the number of units granted.

    

    
      	
              Dividends

            

    

    

    As Yum!
dividends are declared during the Performance Period, you will be granted
additional Units.  The number of Units allocated to you for that
Performance Period will be increased by the number of units equal to the
dividend amount that would be payable with respect to the number of shares of
Stock equal to the number of Units allocated to the Participant on the dividend
record date divided by the Fair Market Value of a share of Stock on the date of
payment of the dividend.

    

    
      	
              Earned
      Units

            

    

    

    As soon
as practicable after the end of the Performance Period, you will receive shares
of Yum! stock equal to the number of Units you were granted at the beginning of
the Performance Period, plus the additional Units attributable to the dividends
paid during the Performance Period, multiplied by the Performance Multiplier for
the Performance Period.

    
      
         

      

      
        
          

          2

        

      

      
         

      

    

    

    

    The
Performance Multiplier will be based on Yum!’s Compound Annual Growth Rate for
the Performance Period, determined in accordance with the following
schedule:

    

    
      	
              If
      the Compound Annual Growth Rate for EPS for the Performance Period
      is:

            	
              The
      Performance Multiplier will be:

            
	
               

              Less
      than 7% per year

            	
               

              0%

            
	
               

              At
      least 7% but less than 8.5%

            	
               

              50%

            
	
               

              At
      least 8.5% but less than 10%

            	
               

              75%

            
	
               

              At
      least 10% but less than 11.5%

            	
               

              100%

            
	
               

              At
      least 11.5% but less than 13%

            	
               

              125%

            
	
               

              At
      least 13% but less than 14.5%

            	
               

              150%

            
	
               

              At
      least 14.5% but less than 16%

            	
               

              175%

            
	
               

              Greater
      than 16%

            	
               

              200%

            

    

    

    EPS is
defined in the appendix.

    

    
      	
              Employment
      Termination during Performance
Period

            

    

    

    If your
employment terminates before the last day of the Performance Period, you will
forfeit all Units granted to you for that Performance Period, subject to the
following:

    

    Retirement or
Disability

    If your
employment terminates during the Performance Period by reason of your retirement
or disability before the end of the Performance Period, then, for each
Performance Period that ends after your employment terminates, you will receive
the number of shares of Yum! stock that you would have received for that
Performance Period, determined as though your employment termination did not
occur during the Performance Period (and based on the actual performance for the
entire Performance Period), subject to a pro rata reduction to reflect the
portion of the applicable Performance Period after your termination
date.  The distribution for each Performance Period will be made at
the same time distribution would have been made if your employment had continued
through the end of the Performance Period.

    
      
         

      

      
        
          

          3

        

      

      
         

      

    

    

    

    Death

    If your
employment ends before the end of the Performance Period by reason of your
death, your estate will receive a distribution of shares of Yum! stock for all
Performance Periods that have not ended at the time of your employment
termination, with distribution to be made at the same time distribution would
have been made with respect to the Performance Period that ends on the last day
of the year in which your employment terminates.  The distribution
will include:

    

    
      	
              ●

            	
              The
      shares of Yum! stock earned for the Performance Period that ends on the
      last day of the year in which the employment termination occurs, based on
      the actual performance for the entire Performance
  Period.

            
	
              ●

            	
              The
      shares of Yum! stock that you would have received for Performance Periods
      that end after the last day of the year in which your employment
      termination occurs for each of those Performance Periods, determined as
      though the target level of performance had been achieved for each such
      Performance Period.

            

    

    

    However,
the number of shares distributable to your estate after your death will be
subject to a pro rata reduction to reflect the portion of the respective
Performance Period after the Date of Termination.

    

    
      	
              Deferred
      Distribution

            

    

    

    You may
elect, not later than June 20, 2009, to defer distribution with respect to Units
in accordance with the Executive Income Deferral Program (“EID”), subject to the
terms of that plan.  During the period of such deferral and prior to
distribution, deferred amounts will be deemed to be invested in shares of Yum!
stock in accordance with the terms of the EID.  Units earned by you
for the Performance Period, and which you have deferred under the EID, will be
vested and nonforfeitable on and after the date they have been earned (as
described above) for the Performance Period.

    

    If your
employment terminates by reason of your retirement, disability, or death and you
have elected to defer distribution of the shares under the EID, distribution
will be made in accordance with the applicable terms of the
EID.

    
      
         

      

      
        
          

          4

        

      

      
         

      

    

    

    

    
      	
              Miscellaneous

            

    

    

    
      	
              ●

            	
              If
      you have questions about the Plan, contact Mark Lagestee at
      502-874-8184.

            
	 
      	 
      
	
              ●

            	
              The
      awards granted under the Plan are granted pursuant to and subject to the
      terms of the Yum! Brands, Inc. Performance Share Plan
      Summary.  Capitalized terms used herein but not otherwise
      defined shall have the meaning given to such terms under that
      document.

            
	 
      	 
      
	
              ●

            	
              The
      number of Units and the manner of determining the Performance Multiplier
      may be adjusted to reflect acquisitions, re-franchising, and extraordinary
      or unplanned events that occur during the Performance
    Period.

            
	 
      	 
      
	
              ●

            	
              Yum!
      reserves the sole discretionary right to modify, amend, or terminate the
      Program at any time.  Yum! retains the sole and exclusive
      authority to construe and interpret the Program, decide all questions of
      fact and questions or eligibility and determine the amount, manner and
      time of payment of any Award, which shall be final and
      binding.

            
	 
      	 
      
	
              ●

            	
              This
      Summary is not a contract.  It does not confer any employment
      rights nor does it give any employee or former employee any rights to
      continued employment.

            
	 
      	 
      
	
              ●

            	
              If
      the number of shares delivered to a participant under the Plan is based on
      attainment of a level of objective performance goals that is later
      determined to have been inaccurate, such inaccuracy was caused by
      misconduct by an employee of Yum! or one of its subsidiaries, and as a
      result the number of shares delivered to a participant (or that would have
      been delivered in the absence of an election to defer distribution) is
      greater than it should have been, then:

            
	 
      	 
      

    

    
      
         

      

      
        
          

          5

        

      

      
         

      

    

    

    
      	
              (1)         The
      participant (regardless of whether then employed) whose misconduct caused
      the inaccuracy will be required to repay the excess.

            
	 
      	 
      
	
              (2)         The
      Compensation Committee of the Board of Directors may require an active or
      former participant (regardless of whether then employed) to repay the
      excess previously received by that participant if the Committee concludes
      that the repayment is necessary to prevent the participant from unfairly
      benefiting from the inaccuracy.  However, repayment under this
      paragraph (2) shall apply to an active or former participant only if the
      Committee reasonably determines that, prior to the time such shares were
      paid (or, if payment of the shares is electively deferred by the
      participant, at the time the shares would have been paid in the absence of
      the deferral), such participant knew or should have known that the share
      amount was greater than it should have been by reason of the
      inaccuracy.  Further, the amount to be repaid by the participant
      may not be greater than the excess of (i) the shares paid to the
      participant over (ii) the shares that would have been paid to a
      participant in the absence of the inaccuracy, provided that, in
      determining the amount under this clause (ii), the Committee may take into
      account only the inaccuracy of which the participant knew or should have
      known, and which the participant knew or should have known was caused by
      misconduct.

            
	 
      	 
      
	
              (3)         The
      committee may also adjust a participant’s future compensation in
      consideration of the above-described adjustment, and Yum! and its
      subsidiaries may set off against the amount of any such gain any amount
      owed to the participant.  For this purpose, the term
      “misconduct” means fraudulent or illegal conduct or omission that is
      knowing or intentional.  The foregoing provisions do not apply
      to reductions in shares delivered under this Plan made after a Change in
      Control (as defined in the Long Term Incentive Plan).

            
	 
      	 
      
	
              ●

            	
               The
      Plan is voluntary, and you have chosen to participate in the
      Plan.  You understand that all amounts paid under the Plan are
      paid as an advance that is contingent on the accuracy of the measures used
      to determine attainment of the level of objective performance
      goals.  If the amount advanced to you under the Plan is
      determined to have been greater than it should have been as a result of
      such measures having been determined to be inaccurate, you agree to repay
      any excess amounts to Yum! or its subsidiaries if Yum! or a subsidiary
      requests repayment.  If a participant does not wish
      to participate in the Plan, including all the conditions specified, the
      participant must notify Anne Byerlein on or before April 3,
      2009.

            

    

    
      
         

      

      
        
          

          6

        

      

      
         

      

    

    APPENDIX

    

    Earnings
Per Share:  For purposes of
determining the award available to any participant for the performance period,
operating earnings per share shall mean Yum!’s earnings per share for each
fiscal year during the performance period before special items which are
believed to be distortive of Yum!'s consolidated results on a year over year
basis and adjusted to account for any change during any fiscal year during the
performance period in corporate capitalization, such as a stock split, reverse
stock split, or stock dividend, any corporate transaction such as a
reorganization, reclassification, merger or consolidation or separation,
including spin-off, of the Company or any events that are unusual in nature or
infrequent in occurrence.

    

    
      

      7

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