Document:

Exhibit 4.2

 

 

YUM! BRANDS, INC.

 

AND

 

U.S. BANK NATIONAL ASSOCIATION, TRUSTEE

 

 

 

3.625% Senior Notes due 2031

 

 

 

FIRST SUPPLEMENTAL INDENTURE

 

 

 

Dated as of September 25, 2020

 

to

 

Indenture Dated as of September 25,
2020

 

Debt Securities

 

 

     

     

    

 

FIRST SUPPLEMENTAL
INDENTURE, dated as of September 25, 2020, (this “Supplemental Indenture”), between YUM! Brands, Inc., a
North Carolina corporation (the “Company”), and U.S. Bank National Association, a national banking association, as
trustee (the “Trustee”).

 

Recitals of The Company

 

WHEREAS, the Company
has heretofore executed and delivered to the Trustee an Indenture (the “Base Indenture”), dated as of September 25,
2020 (as supplemented by this Supplemental Indenture, the “Indenture”), providing for the issuance from time to time
of one or more series of Securities;

 

WHEREAS, Section 9.1(e) of
the Base Indenture provides that the Company and the Trustee may, without the consent of any Holders of Securities, enter into
an indenture supplemental to the Base Indenture to establish the form or terms of Securities of any series as permitted by Sections
2.1 and 3.1 of the Base Indenture;

 

WHEREAS, the Company
has duly authorized the execution and delivery of this Supplemental Indenture to provide for the issuance of $1,050,000,000 aggregate
principal amount of its 3.625% Senior Notes due 2031 (the “Notes”); and

 

WHEREAS, the Company
has requested and hereby requests that the Trustee execute and deliver this Supplemental Indenture; all the conditions and requirements
necessary to make this Supplemental Indenture, when duly executed and delivered, a valid and binding agreement in accordance with
its terms and for the purposes herein expressed, have been performed and fulfilled; and the execution and delivery of this Supplemental
Indenture have been duly authorized in all respects.

 

NOW THEREFORE, THIS
SUPPLEMENTAL INDENTURE WITNESSETH: For and in consideration of the premises and the issuance of the series of Securities provided
for herein, the Company and the Trustee mutually covenant and agree as follows:

 

     

     

    

 

ARTICLE 1

 

RELATION
TO THE BASE INDENTURE; DEFINITIONS; RULES OF CONSTRUCTION

 

Section 1.1            Relation
to the Base Indenture. This Supplemental Indenture constitutes an integral part of the Base Indenture.

 

Section 1.2            Definitions.
For all purposes of this Supplemental Indenture, the following terms shall have the respective meanings set forth in this Section 1.2.

 

“Applicable
Premium” means on any Redemption Date, the excess (to the extent positive) of: (a) the present value at such Redemption
Date of (i) the Redemption Price of such Note on December 15, 2030, equal to 100% of the principal amount of such Note
(excluding accrued but unpaid interest), plus (ii) all required interest payments due on such Note to and including December 15,
2030 (excluding accrued but unpaid interest), computed upon the Redemption Date using a discount rate equal to the Applicable Treasury
Rate at such Redemption Date plus 50 basis points; over (b) the outstanding principal amount of such Note; in each case as
calculated by the Company or on behalf of the Company by such Person as the Company shall designate; provided that the Trustee
cannot be designated without its consent.

 

“Applicable
Treasury Rate” means the yield to maturity at the time of computation of United States Treasury securities with a constant
maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) which has become publicly
available at least two Business Days (but not more than five Business Days) prior to the Redemption Date (or, if such statistical
release is not so published or available, any publicly available source of similar market data selected by the Company in good
faith)) most nearly equal to the period from the Redemption Date to December 15, 2030; provided, however, that
if the period from the Redemption Date to December 15, 2030 is not equal to the constant maturity of a United States Treasury
security for which a weekly average yield is given, the Applicable Treasury Rate shall be obtained by linear interpolation (calculated
to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for which such yields
are given, except that if the period from the Redemption Date to such applicable date is less than one year, the weekly average
yield on actually traded United States Treasury securities adjusted to a constant maturity of one year shall be used.

 

“Base
Indenture” has the meaning set forth in the recitals hereto.

 

“Business
Day” means each day that is not a Saturday, Sunday or other day on which banking institutions in New York, New York,
United States or the jurisdiction of the place of payment are authorized or required by law, regulation or executive order to close.

 

    2

     

    

 

“Certificated
Security” means a Security registered in the name of the Holder thereof and issued in accordance with Section 2.4
hereof, substantially in the form of the Security attached hereto as Exhibit A and that does not bear the Global Security
Legend.

 

“Change
of Control” means the occurrence of any of the following: (1) the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of
the Exchange Act), other than the Company or one of its Subsidiaries becomes the beneficial owner (as defined in Rules 13d-3
and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Company’s Voting Stock or other Voting
Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged or changed, measured by voting power
rather than number of shares; or (2) the direct or indirect sale, transfer, conveyance or other disposition (other than by
way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the Company’s
assets and the assets of the Company’s Subsidiaries, taken as a whole, to one or more Persons, other than the Company or
one of the Company’s Subsidiaries. Notwithstanding the foregoing, a transaction shall not be deemed to be a Change of Control
if (1) the Company becomes a direct or indirect wholly-owned subsidiary of a holding company and (2)(A) the direct or
indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same
as the holders of the Company’s Voting Stock immediately prior to that transaction or (B) immediately following that
transaction no “person” (as that term is used in Section 13(d)(3) of the Exchange Act) (other than a holding
company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the
Voting Stock of such holding company.

 

“Change
of Control Offer” has the meaning set forth in Section 2.5(a).

 

“Change
of Control Payment” has the meaning set forth in Section 2.5(a).

 

“Change
of Control Payment Date” has the meaning set forth in Section 2.5(a).

 

“Change
of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event.

 

“Company”
has the meaning set forth in the introductory paragraph hereof.

 

“Exchange
Act” means the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission
promulgated thereunder.

 

“Global
Security” has the meaning set forth in Section 2.4(a).

 

“Global
Security Legend” means the legend set forth in Section 2.4(c), which is to be placed on all Global Securities
issued under the Indenture.

 

“Indenture”
has the meaning set forth in the recitals hereto.

 

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“Investment
Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent)
by S&P, and the equivalent investment grade credit rating from any replacement rating agency or rating agencies.

 

“Moody’s”
means Moody’s Investors Service, Inc., or any of its successors or assigns.

 

“Notes”
has the meaning set forth in the recitals hereto, and means any Notes authenticated and delivered pursuant to the Indenture.

 

“Participant”
means a member of, or a participant in, the Depositary.

 

“Paying
Agent” means any Person (including the Company) authorized by the Company to pay the principal of, premium, if any, or
interest on, any Notes on behalf of the Company.

 

“Rating
Agencies” means (1) each of Moody’s and S&P, and (2) if either Moody’s or S&P ceases to
rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a
 “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) of the Exchange
Act selected by the Company (as certified by a Board Resolution) as a replacement agency for Moody’s or S&P, or both
of them, as the case may be.

 

“Rating
Event” means the rating on the Notes is lowered by each of the Rating Agencies and the Notes are rated below an Investment
Grade Rating by each of the Rating Agencies on any day within the 60-day period (which 60-day period will be extended so long as
the rating of the Notes is under publicly announced consideration for a possible downgrade by any of the Rating Agencies) after
the earlier of (1) the occurrence of a Change of Control and (2) public notice of the Company’s intention to effect
a Change of Control; provided, however, that a Rating Event otherwise arising by virtue of a particular reduction in rating shall
not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Rating Event for purposes
of the definition of Change of Control Triggering Event) if the Rating Agencies making the reduction in rating to which this definition
would otherwise apply do not announce or publicly confirm or inform the Trustee in writing at the Company’s request that
the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect
of, the applicable Change of Control (whether or not the applicable Change of Control has occurred at the time of the Rating Event).

 

“S&P”
means Standard & Poor’s Ratings Services, a division of S&P Global Inc., or any of its successors or assigns.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Supplemental
Indenture” has the meaning set forth in the introductory paragraph hereof.

 

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“Trustee”
has the meaning set forth in the introductory paragraph hereof until a successor replaces it in accordance with the applicable
provisions of the Indenture and thereafter means the successor serving thereunder.

 

“Voting
Stock” means, with respect to any specified “person” (as that term is used in Section 13(d)(3) of
the Exchange Act), as of any date, the Capital Stock of such person that is at the time entitled to vote generally in the election
of the board of directors of such person.

 

Section 1.3            Rules of
Construction. For all purposes of this Supplemental Indenture, except as expressly provided or unless the context otherwise
requires:

 

(a)           capitalized
terms used herein without definition shall have the meanings specified in the Base Indenture;

 

(b)           all
references herein to Articles and Sections, unless otherwise specified, refer to the corresponding Articles and Sections of this
Supplemental Indenture;

 

(c)           the
words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Supplemental
Indenture as a whole and not to any particular Article, Section or other subdivision; and

 

(d)           in
the event of a conflict with the definition of terms in the Base Indenture, the definitions in this Supplemental Indenture shall
control.

 

ARTICLE 2

 

THE
NOTES

 

Section 2.1            Title
of the Notes. There is hereby established by this Supplemental Indenture a separate series of Securities under the Indenture,
designated as the “3.625% Senior Notes due 2031.”

 

Section 2.2            Limitation
on Aggregate Principal Amount.

 

(a)           The
Notes are initially limited in aggregate principal amount to $1,050,000,000, except for such Notes authorized and delivered upon
registration of transfer of, or in exchange for, or in lieu of other notes, pursuant to Sections 3.4, 3.5, 3.6, 9.6 or 11.7 of
the Base Indenture or Section 2.5 hereof. The Company may, from time to time, without the consent of Holders of the Securities
of any series, issue Securities under the Indenture in addition, and with identical terms, to the $1,050,000,000 aggregate principal
amount of Notes (other than the issue date, the issue price and the amount of the first payment of interest). Any such additional
Securities and the Notes will be treated as a single series for purposes of the Indenture; provided that if the additional Securities
are not fungible with the Notes for United States federal income tax purposes, the additional Securities will have a separate CUSIP
number. Any such increase in the authorized aggregate principal amount of the Notes shall be evidenced by an Officers’ Certificate
delivered to the Trustee, without further action by the Company.

 

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Section 2.3            Terms
of the Notes.

 

(a)           The
Depository Trust Company is hereby designated as the Depositary for the Notes, which shall be issued in the form of Global Securities
as further provided in Section 2.4.

 

(b)           The
principal of the Notes is payable on March 15, 2031.

 

(c)           The
Notes shall bear interest at an annual rate of 3.625%, from September 25, 2020, or from the most recent date on which interest
has been paid or provided for, payable semi-annually in arrears on March 15 and September 15 of each year commencing
March 15, 2021, until the principal of such Notes is paid or made available for payment. The interest so payable will be paid
to the person in whose name the Notes are registered at the close of business on the preceding March 1 or September 1,
respectively. If the date on which interest is payable is not a Business Day, the interest will be paid on the next following Business
Day and no interest shall accrue for the intervening period.

 

(d)           Payment
of the principal of (and premium, if any, on) and any such interest on the Notes will be made at the office or agency of the Company
maintained for that purpose, in such coin or currency of the United States of America as at the time of payment is legal tender
for payment of public and private debts; provided, however, that at the option of the Company payment of interest
may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register.
U.S. Bank National Association is appointed as the Trustee and Paying Agent for the Notes to perform the functions set forth in
the Indenture to be performed by such offices.

 

(e)           At
any time prior to December 15, 2030, the Notes will be redeemable in whole at any time or in part from time to time, at the
Company’s option, at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed plus the Applicable
Premium as of, and accrued and unpaid interest, if any, thereon to but excluding, the Redemption Date.

 

On or after December 15,
2030, the Notes will be redeemable in whole at any time or in part from time to time, at the Company’s option, at a Redemption
Price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest, if any, thereon to but
excluding, the Redemption Date.

 

If the Redemption Date
is on or after a Regular Record Date, and on or before the related Interest Payment Date, the accrued and unpaid interest will
be paid to the Person in whose name the Note is registered at the close of business on such Regular Record Date, and no additional
interest will be payable to Holders whose Notes will be subject to redemption by the Company

 

(f)           The
Notes are not entitled to any mandatory redemption or sinking fund payments.

 

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(g)           The
Notes shall be issued in denominations of $2,000 and integral multiples of $1,000 in excess of $2,000.

 

(h)           The
entire principal amount of the Notes shall be payable upon the acceleration of the Maturity thereof pursuant to Section 5.2
of the Indenture.

 

(i)            Additional
Amounts will not be payable to the Holders of the Notes.

 

(j)            The
Notes shall have such other terms and provisions as are provided in the form thereof set forth in Exhibit A hereto, which
terms and provisions are hereby expressly made a part of the Indenture and, to the extent applicable, the Company and the Trustee,
by their execution and delivery of this Supplemental Indenture expressly agree to such terms and provisions and to be bound thereby.
Except as otherwise expressly permitted by the Indenture, all Notes shall be identical in all respects. Notwithstanding any differences
among them, all Notes issued under the Indenture, including any Notes issued after the date hereof pursuant to and in accordance
with the terms hereof, shall vote and consent together on all matters as one class.

 

(k)           The
Company shall be required to offer to purchase the Notes, in accordance with Section 2.5 hereof, upon the occurrence of a
Change of Control Triggering Event.

 

Section 2.4            Book
Entry Provisions; Transfer and Exchange.

 

(a)           The
Notes shall be issued initially in the form of one or more permanent global notes (“Global Securities”). Each Global
Security initially shall (i) be registered in the name of the Depositary for such Global Security or the nominee of such Depositary,
(ii) be deposited with, or on behalf of, the Depositary or with the Trustee as custodian for such Depositary, (iii) bear
the Global Security Legend and (iv) be dated the date of its authentication. Except as provided in Section 2.4(b), owners
of beneficial interests in Global Securities will not be entitled to receive physical delivery of certificated Notes.

 

Participants and other
owners of beneficial interests in Global Securities shall have no rights under the Indenture with respect to any Global Security
held on their behalf by the Depositary, or the Trustee as its custodian, or under such Global Security, and the Depositary or,
if applicable, the nominee of such Depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee
as the absolute owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy
or other authorization furnished by the Depositary or shall impair, as between the Depositary and its Participants, the operation
of customary practices governing the exercise of the rights of a Holder of any Security.

 

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(b)           Notwithstanding
any other provision in the Indenture, no Global Security may be exchanged in whole or in part for Securities registered, and no
transfer of a Global Security in whole or in part may be registered, in the name of any Person other than the Depositary for such
Global Security or a nominee thereof unless (i) such Depositary (A) has notified the Company that it is unwilling or
unable to continue as Depositary for such Global Security or (B) has ceased to be a clearing agency registered as such under
the Exchange Act, and in either case of (A) or (B) the Company fails to appoint a successor Depositary within 90 calendar
days, (ii) the Company, at its option, executes and delivers to the Trustee a Company Order stating that it elects to cause
the issuance of the Securities in certificated form and that all Global Securities shall be exchanged in whole for Securities that
are not Global Securities (in which case, such exchange shall be effected by the Trustee) or (iii) there shall have occurred
and be continuing an Event of Default with respect to the Notes. In all cases, Certificated Securities delivered in exchange for
any Global Security or beneficial interests in Global Securities will be registered in the names, and issued in any approved denominations,
requested by or on behalf of the Depositary (in accordance with its customary procedures). Global Securities also may be exchanged
or replaced, in whole or in part, as provided in Sections 3.4 and 3.6 of the Base Indenture. Every Security authenticated and delivered
in exchange for, or in lieu of, a Global Security or any portion thereof, pursuant to this Section 2.4 or Sections 3.4 and
3.6 of the Base Indenture, shall be authenticated and delivered in the form of, and shall be, a Global Security. A Global Security
may not be exchanged for another Note other than as provided in this Section 2.4(b).

 

(c)           Legend.
The following legend shall appear on the face of all Global Securities.

 

“THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
OF A DEPOSITARY OR A SUCCESSOR DEPOSITARY. TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN
PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE.

 

UNLESS THIS CERTIFICATE IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT AND ANY SUCH CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.”

 

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Section 2.5            Offer
to Purchase Upon Change of Control Triggering Event.

 

(a)           If
a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Notes pursuant to Section 2.3(e) hereof,
the Company shall be required to make an offer to purchase all of the Notes pursuant to the offer described in this Section 2.5
(the “Change of Control Offer”) at a price in cash equal to 101% of the aggregate principal amount of Notes repurchased
plus accrued and unpaid interest, if any, on the Notes repurchased to, but excluding, the date of repurchase (the “Change
of Control Payment”), subject to the right of Holders of the Notes of record on the relevant Regular Record Date to receive
interest due on the relevant Interest Payment Date. Within 30 days following any Change of Control Triggering Event or, at the
Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may
constitute the Change of Control, the Company shall mail notice to Holders of the Notes, with a copy to the Trustee, describing
the transaction that constitutes or may constitute the Change of Control Triggering Event and with the following information:

 

(i)            that
a Change of Control Offer is being made pursuant to this Section 2.5, and that all Notes properly tendered pursuant to such
Change of Control Offer will be accepted for payment by the Company;

 

(ii)           the
purchase price and the purchase date, which will be no earlier than 30 days nor later than 60 days from the date such notice is
mailed, except in the case of a conditional Change of Control Offer made in advance of a Change of Control as described in clause
(viii) below (the “Change of Control Payment Date”);

 

(iii)          that
any Note not properly tendered will remain outstanding and continue to accrue interest;

 

(iv)          that
unless the Company defaults in the payment of the Change of Control Payment, all Notes accepted for payment pursuant to the Change
of Control Offer will cease to accrue interest, on the Change of Control Payment Date;

 

(v)           that
Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be required to surrender such Notes, with
the form entitled “Option of Holder to Elect Purchase” on the reverse of such Notes completed, to the Paying Agent
specified in the notice at the address specified in the notice prior to the close of business on the third Business Day preceding
the Change of Control Payment Date;

 

(vi)          that
Holders will be entitled to withdraw their tendered Notes and their election to require the Issuer to purchase such Notes; provided
that the Paying Agent receives, not later than the close of business on the second Business Day prior to the expiration date of
the Change of Control Offer, a telegram, facsimile transmission or letter setting forth the name of the Holder of the Notes, the
principal amount of Notes tendered for purchase, and a statement that such Holder is withdrawing its tendered Notes and its election
to have such Notes purchased;

 

(vii)         that
Holders whose Notes are being purchased only in part will be issued new Notes and such new Notes will be equal in principal amount
to the unpurchased portion of the Notes surrendered. The unpurchased portion of the Notes must be equal to at least $2,000 or any
integral multiple of $1,000 in excess of $2,000;

 

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(viii)        if
such notice is delivered prior to the consummation of a Change of Control, stating that the Change of Control Offer is conditioned
on the Change of Control Triggering Event occurring on or prior to the Change of Control Payment Date; and

 

(ix)           the
other instructions, as determined by the Company, consistent with this Section 2.5, that a Holder must follow.

 

The Trustee shall not
be responsible for determining whether a Change of Control Triggering Event or any component thereof has occurred.

 

The Paying Agent will
promptly deliver to each Holder of the Notes tendered the Change of Control Payment for such Notes, and the Trustee will promptly
authenticate and mail (or cause to be transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered, if any; provided that each such new Note will be in a principal amount of $2,000 or an
integral multiple of $1,000 in excess thereof. The Company will publicly announce the results of the Change of Control Offer on
or as soon as practicable after the Change of Control Payment Date.

 

If the Change of Control
Payment Date is on or after a Regular Record Date and on or before the related Interest Payment Date, any accrued and unpaid interest
will be paid on the relevant Interest Payment Date to the Person in whose name a Note is registered at the close of business on
such Regular Record Date.

 

(b)           On
the Change of Control Payment Date, the Company shall, to the extent permitted by law:

 

(i)            accept
for payment all Notes or portions thereof properly tendered pursuant to the Change of Control Offer;

 

(ii)           deposit
with the Paying Agent an amount equal to the aggregate Change of Control Payment in respect of all Notes or portions thereof so
tendered; and

 

(iii)          deliver
or cause to be delivered to the Trustee for cancellation the Notes so accepted together with an Officers’ Certificate stating
that such Notes or portions thereof have been tendered to and purchased by the Company.

 

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(c)           The
Company shall not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if
(i) a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements
set forth in this Supplemental Indenture applicable to a Change of Control Offer made by the Company and purchases all Notes validly
tendered and not withdrawn under such Change of Control Offer or (ii) a notice of redemption of all outstanding Notes has
been given pursuant to the Indenture, unless and until there is a default in the payment of the Redemption Price on the applicable
Redemption Date or the redemption is not consummated due to the failure of a condition precedent contained in the applicable redemption
notice to be satisfied. In addition, the Company will not repurchase any Notes if there has occurred and is continuing on the Change
of Control Payment Date an Event of Default under the Indenture, other than a Default in the payment of the Change of Control Payment
upon a Change of Control Triggering Event. Notwithstanding anything to the contrary in this Section 2.5, a Change of Control
Offer may be made in advance of the consummation of a Change of Control, conditional upon the Change of Control Triggering Event
occurring on or prior to the Change of Control Payment Date, if a definitive agreement is in place for the Change of Control at
the time of making of the Change of Control Offer.

 

(d)           The
Company shall comply with the requirements of Rule 14e-1 under the Exchange Act, and any other securities laws and regulations
applicable to the repurchase of the Notes pursuant to this Section 2.5. To the extent that the provisions of any such securities
laws or regulations conflict with the provisions of this Section 2.5, the Company shall comply with those securities laws
and regulations and shall not be deemed to have breached its obligations under this Section 2.5 by virtue of any such conflict.

 

(e)           The
provisions of this Section 2.5 may be waived (as provided in Section 10.8 of the Base Indenture) or modified with the
written consent of the Holders of a majority in principal amount of the Notes then Outstanding if the Change of Control Triggering
Event has not yet occurred.

 

Section 2.6            Events
of Default. In addition to the Events of Default specified in Section 5.1 of the Base Indenture, the following shall constitute
an “Event of Default” with respect to the Notes: any default in the payment of any Change of Control Payment in respect
of the Notes as when the same becomes due and payable in accordance with Section 2.5 hereof. Such additional Event of Default
is expressly included in this Supplemental Indenture for the benefit of, and shall be solely applicable to, the series of Securities
established as the Notes by this Supplemental Indenture.

 

ARTICLE 3

 

MISCELLANEOUS
PROVISIONS

 

Section 3.1            Ratification.
The Base Indenture, as supplemented by this Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed and
the Base Indenture shall be modified in accordance therewith and this Supplemental Indenture shall form part of the Base Indenture
for all purposes as therein provided.

 

Section 3.2            Counterparts.
This Supplemental Indenture may be executed in any number of counterparts, each of which when so executed shall be deemed to be
an original, and all such counterparts shall together constitute but one and the same instrument. Signatures of the parties hereto
transmitted by facsimile or PDF may be used in lieu of the originals and shall be deemed to be their original signatures for all
purposes.

 

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Section 3.3            Governing
Law. THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK.

 

Section 3.4            Trustee.
The Trustee makes no representations as to, and shall not be responsible for, the validity, sufficiency or adequacy of this Supplemental
Indenture or the Notes. The recitals and statements herein are deemed to be those of the Company and not of the Trustee. The Trustee
shall not be accountable for the use or application by the Company of the Notes or the proceeds thereof. Neither the Trustee nor
any Paying Agent shall be responsible for monitoring the Company’s ratings or determining whether a Rating Event has occurred.

 

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IN WITNESS WHEREOF,
the parties hereto have caused this Supplemental Indenture to be duly executed as of the day and year first above written.

 

 

	 	YUM! BRANDS,
inc.
	 	 
	 	 
	 	By:	/s/ Keith Siegner
	 	 	Name:	Keith Siegner
	 	 	Title:	Vice
    President, Investor Relations, M&A and Treasurer

 

 

	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 	 
	 	 
	 	By:	/s/ Amy E. Anders
	 	 	Name:	Amy E. Anders
	 	 	Title:	Vice President

 

[Signature
page to First Supplemental Indenture]

 

    

     

    

 

EXHIBIT A

 

Form of Notes

 

    A-1

     

    

 

YUM! BRANDS, INC.

 

3.625%
SENIOR NOTE DUE 2031

 

[Insert the Global Security Legend, if
applicable, pursuant to the provisions of the First Supplemental Indenture]

 

	No.                                 	$__________________

 

CUSIP ________________

 

ISIN ________________

 

YUM! Brands, Inc.,
a North Carolina corporation (herein called the “Company,” which term includes any successor corporation under the
Indenture referred to on the reverse hereof), for value received, hereby promises to pay to ______________, the principal sum of
_______________________ Dollars ($____________) on March 15, 2031, and to pay interest thereon from September 25, 2020
or from the most recent Interest Payment Date to which interest has been paid or duly provided for semi-annually in arrears on
March 15 and September 15 in each year commencing March 15, 2021, at the rate of 3.625% per annum until the principal
hereof is paid or made available for payment.

 

The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture referred to on the reverse
hereof, be paid to the Person in whose name this Security is registered at the close of business on the March 1 or the September 1
(whether or not a Business Day), as the case may be, preceding such Interest Payment Date (each such date, a “Regular Record
Date”); provided, however, that, if such Interest Payment Date would fall on a day that is not a Business Day,
such Interest Payment Date shall be the following day that is a Business Day and no interest shall accrue for the intervening period.

 

Payment of the principal
of (and premium, if any, on) and any such interest on this Security will be made at the office or agency of the Company maintained
for that purpose in New York, New York, in such coin or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that at the option of the Company payment of interest
may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register.

 

Reference is hereby
made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

 

Unless the certificate
of authentication hereon referred to on the reverse hereof, has been executed by or on behalf of the Trustee by manual or PDF or
other electronically-imaged (including, without limitation DocuSign or Adobe Sign) signature, this Security shall not be entitled
to any benefit under the Indenture or be valid or obligatory for any purpose.

 

    A-2

     

    

 

* * * * *

 

IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed by the manual or facsimile signature of one of its authorized officers.

 

	 	YUM! BRANDS, INC.
	 	 
	 	By:	                 
	 	 	Name:
	 	 	Title:

 

Trustee’s Certificate of Authentication

 

This is one of the
Securities of the series designated therein referred to in the within mentioned Indenture.

 

	Dated:	 	 	U.S. BANK NATIONAL ASSOCIATION,
	 	 	 	as Trustee
	 	 	 	 
	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	Authorized Signatory

 

    A-3

     

    

 

YUM!
BRANDS, INC.

 

This Security is one
of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in
one or more series under an indenture dated as of September 25, 2020, between the Company and U.S. Bank National Association,
as trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), as supplemented
by a first supplemental indenture, dated as of September 25, 2020, between the Company and the Trustee (collectively, the
 “Indenture,” which term shall have the meaning assigned to it in such instrument), to which Indenture reference is
hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof, initially limited in aggregate principal amount to $1,050,000,000.

 

At any time prior to
December 15, 2030, the Securities will be redeemable in whole at any time or in part from time to time, at the Company’s
option, at a Redemption Price equal to 100% of the principal amount of the Securities to be redeemed plus the Applicable Premium
as of, and accrued and unpaid interest, if any, thereon to but excluding, the Redemption Date.

 

On or after December 15,
2030, the Securities will be redeemable in whole at any time or in part from time to time, at the Company’s option, at a
Redemption Price equal to 100% of the principal amount of the Securities to be redeemed plus accrued and unpaid interest, if any,
thereon to but excluding the Redemption Date.

 

If an Event of Default
with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the Indenture.

 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Securities of each series under the Indenture to be affected at any time by the Company and
the Trustee with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages
in aggregate principal amount of the Securities of each series at the time Outstanding, on behalf of all the Holders of all Securities
of such series, to waive certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder
of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security
issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

 

No reference herein
to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of (and premium, if any, on) and interest on this Security at the times, place
and rate, and in the coin or currency, as prescribed herein and in the Indenture.

 

    A-4

     

    

 

“Global Security”
and “Global Securities” means a Security or Securities evidencing all or part of a series of Securities, issued to
the Depositary (as hereinafter defined) for such series or its nominee, registered in the name of such Depositary or its nominee,
bearing the Global Securities Legend and dated the date of its authentication. “Depositary” means, with respect to
the Securities of any series issuable or issued in whole or in part in the form of one or more Global Securities, the person designated
as the Depositary by the Company.

 

No holder of any beneficial
interest in this Security held on its behalf by a Depositary or a nominee of such Depositary shall have any rights under the Indenture
with respect to such Global Security, and such Depositary or nominee may be treated by the Company, the Trustee, and any agent
of the Company or the Trustee as the owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing,
nothing herein shall impair, as between a Depositary and such holders of beneficial interests, the operation of customary practices
governing the exercise of the rights of the Depositary, or its nominee, as Holder of any Security.

 

This Security is exchangeable,
in whole but not in part, for Securities registered in the names of Persons other than the Depositary or its nominee or in the
name of a successor to the Depositary or a nominee of such successor depositary only if (i) the Depositary (a) notifies
the Company that it is unwilling or unable to continue as depositary for the Global Securities and the Company fails to appoint
a successor depositary within 90 calendar days or (b) has ceased to be a clearing agency registered under the Exchange Act
and the Company fails to appoint a successor depositary within 90 calendar days, (ii) at any time the Company in its sole
discretion determines to issue Certificated Securities or (iii) there shall have occurred and be continuing an Event of Default
with respect to the Securities. If this Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for
Securities issuable in minimum denominations of $2,000 and in integral multiples of $1,000 in excess thereof and registered in
such names as the Depositary holding this Security shall direct. Subject to the foregoing, this Security is not exchangeable, except
for a Security or Securities of the same aggregate denominations to be registered in the name of such Depositary or its nominee
or in the name of a successor to the Depositary or a nominee of such successor depositary.

 

No recourse shall be
had for the payment of the principal of (and premium, if any, on) or interest on this Security, or for any claim based hereon,
or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator,
stockholder, officer or director, as such, past, present or future, of the Company or any successor corporation, whether by virtue
of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released.

 

All capitalized terms
used in this Security and not otherwise defined herein shall have the meanings assigned to them in the Indenture.

 

    A-5

     

    

 

This Security, including
without limitation the obligation of the Company contained herein to pay the principal of (and premium, if any, on) and interest
on this Security in accordance with the terms hereof and of the Indenture, shall be construed in accordance with and governed
by the laws of the State of New York.

 

    A-6

     

    

 

ASSIGNMENT FORM

 

To assign this Security, fill in the form below:

(I) or (we) assign and transfer this Security to

 

	 
	(Insert assignee’s social security or tax I.D. no.)

                                                                                 

	 
	 

(Print or type assignee’s name, address
and zip code)

 

and irrevocably appoint ____________________________________
agent to transfer this Security on the books of the Company. The agent may substitute another to act for him.

 

Your Signature:
____________________________________________

(Sign exactly as your name
appears on the other side of

this Security)

 

Date: ________________________________

 

Medallion Signature Guarantee: _____________________________________

 

    A-7

     

    

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you elect to have
this Security purchased by the Company pursuant to Section 2.5 of the Supplemental Indenture, check box:

 

Section 2.5
 ̈

 

If you want to elect
to have only part of this Security purchased by the Company pursuant to Section 2.5 of the Supplemental Indenture, state the
amount in principal amount (must be in denominations of $2,000 or an integral multiple of $1,000 in excess thereof):

 

$_____ and specify the denomination or
denominations (which shall not be less than the minimum authorized denomination) of the Securities to be issued to the Holder for
the portion of the within Security not being repurchased (in the absence of any such specification, one such Security will be issued
for the portion not being repurchased):

 

	Date:
                                           	Your Signature	 
	 	 	(Sign exactly as your name appears
on the other side of the Security)

 

	Signature

Guarantee:	
	 	(Signature must be guaranteed)

 

The signature(s) should be guaranteed
by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an
approved signature guarantee medallion program), pursuant to Exchange Act Rule 17Ad-15.

 

    A-8EX-10.2

 Exhibit 10.2 

Abcam plc 
 Long-Term
Incentive Plan (“LTIP”) 
  

					
	Approved by Shareholders:	  	3rd November 2008	  	
			
	Adopted by Company:	  	3rd November 2008	  	
			
	Renewed by Shareholders:	  	8th November 2013	  	
			
	Amended by Company:	  	3rd November 2014	  	
			
	Amended by Company:	  	11th September 2015	  	
			
	Amended by Company:	  	6th November 2018	  	

 Index 
  

							
	1	 	Grant of Awards	  	 	1	 
	2	 	Rights of Participants During the Holding Period	  	 	1	 
	3	 	Release and/or Exercise of Awards	  	 	1	 
	4	 	Lapse of Awards	  	 	3	 
	5	 	Taxation	  	 	3	 
	6	 	Cessation of Employment	  	 	4	 
	7	 	Take-over, Reconstruction, Amalgamation, Winding up, Merger and Demerger of the Company	  	 	5	 
	8	 	Limits & Restrictions	  	 	6	 
	9	 	Adjustments & Amendments	  	 	6	 
	10	 	Shares	  	 	7	 
	11	 	Administration	  	 	8	 
	12    	 	Definitions	  	 	9	 
	SCHEDULE 1	  	 	12	 
	1.	 	DEFINITIONS AND INTERPRETATION	  	 	12	 
	2.	 	CESSATION OF EMPLOYMENT	  	 	12	 
	3.	 	SHARES	  	 	12	 

			
	Abcam plc	  	Abcam plc Long-Term Incentive Plan  

  

	1	 Grant of Awards 

 

	1.1	 The Committee may in its absolute discretion grant Awards to Eligible Employees at any time except during a
Close Period. 

  

	1.2	 The Committee shall determine in respect of each grant of Awards:- 

 

	 	(a)	 the Date of Grant; 

  

	 	(b)	 those Eligible Employees who shall receive an Award; 

 

	 	(c)	 the number of Shares subject to each Award granted; 

 

	 	(d)	 the Holding Period in respect of each Award; 

 

	 	(e)	 whether a Retention Requirement is to apply, and if so, details of the Retention Requirement and the applicable
Retention Period; 

  

	 	(f)	 the Performance Requirements applicable to each Award; and 

 

	 	(g)	 any other terms and conditions applying to each Award including in the case of Awards granted in the form of
Nil Cost Options, the Exercise Price. 

  

	1.3	 The Committee shall issue an Award Certificate to each Participant setting out the Committee’s
determinations under Rule 1.2 in respect of that Participant’s Award. 

  

	2	 Rights of Participants During the Holding Period 

 

	2.1	 A Participant shall have no voting rights or rights to receive dividends in respect of Shares subject to his
Award during the applicable holding period: 

  

	 	(a)	 prior to the Release of the Award in the case of a conditional entitlement to Shares, 

 

	 	(b)	 prior to the Exercise of the Award in the case of a Nil Cost Option. 

 

	3	 Release and/or Exercise of Awards 

 

	3.1	 Subject to Rules 3.2, 3.4, 3.5, 3.6 or 3.7 and 5.31 Awards
shall be Released: 

  

	 	(a)	 at the end of the Holding Period; 

 

	 	(b)	 subject to the terms of any applicable Retention Requirement; 

 

	 	(c)	 subject to the satisfaction of any Performance Requirements or other terms and conditions imposed pursuant to
Rules 1.2(f) and 1.2(g) respectively; and 

  

	 	(d)	 subject to the Participant entering into such election as the Committee requires under Chapter 2 of Part 7 of
the Income Tax (Earnings and Pensions) Act 2003. 

  

	3.2	 Awards may be Released without fully satisfying the requirements of Rule 3.1 in accordance with Rule 62 and Rule 73. 

  

	3.3	 In the case of Awards in the form of Nil Cost Options which have been Released in accordance with Rule 3.1 or
3.2, a Participant may Exercise his Awards from the date of Release to the earliest of the following dates:- 

  

	 	(a)	 the tenth anniversary of the Date of Grant; and 

 

	 	(b)	 the end of the periods set out in Rule 6 and Rule 7. 

 

	3.4	 Notwithstanding any other provision of these Rules, the Committee may reduce or cancel any Award that has not
been Released if: 

  
  

	1 	 Taxation – Release of Shares may be prohibited if the Eligible Employee has not made a Tax Payment or
agreed to sell sufficient Shares to meet this Tax Payment. 

	2 	 On cessation of employment. 

	3 	 On Take-over, Reconstruction, Amalgamation and Winding up of the Company. 

  
  

Pg.1 

			
	Abcam plc	  	Abcam plc Long-Term Incentive Plan  

  

	 	(a)	 there has been a material adverse adjustment to the audited consolidated accounts of the Company for any
accounting period ending before the Release of the Award; or 

  

	 	(b)	 there is reasonable evidence of fraud or other gross misconduct and. in relation to any Award granted following
1 July 2015, material dishonesty, material failure of risk management and/or material wrong-doing on the part of or by the Participant. 

  

	3.5	 In relation to any Award made following 1 July 2015, and notwithstanding any other provision of these
Rules, the Committee may at any time prior to the second anniversary of the date on which any Award has been Released: 

  

	 	(a)	 reduce the number of Shares under another Award which has not been Released; 

 

	 	(b)	 cancel another Award which has not been Released; 

 

	 	(c)	 impose further terms or conditions on another Award which has not been Released; 

 

	 	(d)	 reduce or cancel awards made to the Participant following 1 July 2015 under other share incentive plans
operated by the Company; 

  

	 	(e)	 reduce or cancel any bonus or other cash payment due to a Participant; or 

 

	 	(f)	 require a Participant to make a cash payment to, or to the order of, a Group Company 

if:- 
  

	 	(g)	 there has been a material adverse adjustment to the audited consolidated accounts of the Company for any
accounting period; or 

  

	 	(h)	 there is reasonable evidence of fraud or other gross misconduct, material dishonesty, material failure of risk
management and/or material wrong-doing on the part of or by the Participant. 

  

	3.6	 In relation to any Award made following 1 July 2015, the Committee may take any of the actions referred to
in Rules 3.53.5(a) to 3.53.5(f) (inclusive) throughout any such period that a Participant is subject to a work-related criminal investigation. 

  

	3.7	 In relation to any Award made following 1 July 2015, the Committee may decide at any time that an Award
which has not been Released shall be reduced or cancelled to give effect to a clawback provision of any form contained in any other share incentive plan or bonus plan operated by any Group Company. The reduction or cancellation of the Award shall be
in accordance with the terms of the clawback provision in the relevant plan or, in the absence of any such term, on such basis as the Committee considers appropriate. 

 

	3.8	 The Committee shall act in good faith and treat all Participants fairly, reasonably and equitably when taking
any step under any of Rules 3.4, 3.5, 3.6 or 3.7 and shall notify any affected Participant as soon as possible. 

  

	3.9	 The Committee may in its discretion make any alteration or amendment to Rules 3.4, 3.5, 3.6 or 3.7 as is
necessary or desirable to take account of local laws affecting any Group Company or any Participant. 

  
  

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	Abcam plc	  	Abcam plc Long-Term Incentive Plan  

  

	4	 Lapse of Awards 

 

	4.1	 All subsisting Awards shall lapse on the earliest of the following events:- 

 

	 	(a)	 the date on which the Award lapses pursuant to Rule 64 or
Rule 75; 

  

	 	(b)	 when it has been determined by the Committee that the conditions of Rule 3.1 (c) cannot be satisfied;

  

	 	(c)	 the tenth anniversary of the Date of Grant; or 

 

	 	(d)	 the date on which the Participant is adjudicated bankrupt. 

 

	5	 Taxation 

  

	5.1	 The grant of an Award to an Eligible Employee under the Plan shall be conditional upon the agreement of that
Eligible Employee to indemnify his employing Group Company for any Tax Payment, such agreement to be deemed by the failure of the Eligible Employee to renounce the Award in accordance with Rule 11.5. 

 

	5.2	 The Participant shall pay all expenses and Taxes which arise or result from the grant, Release or Exercise of
an Award, provided that the Company in its absolute discretion and subject to any statutory prohibition may meet any stamp duty or liability for any other Taxes or expenses arising which it deems appropriate. 

 

	5.3	 In a case where a Group Company by virtue of the grant, Release or Exercise of an Award shall be obliged to
make a Tax Payment, the grant, Release or Exercise shall not take place, unless:- 

  

	 	(a)	 the Group Company has received payment prior to the grant, Release or Exercise from the Participant of an
amount not less than the Tax Payment; or 

  

	 	(b)	 authority from the Participant to deduct the Tax Payment from his Emoluments has been received; or

  

	 	(c)	 that Participant giving irrevocable instructions to the Company’s brokers (or any person acceptable to the
Company) for the sale of sufficient Shares on the Release or Exercise to realise an amount equal to the Tax Payment and authority to pay the proceeds of such sale to the employing Group Company. 

 

	5.4	 The Committee may determine that any Award granted under the Plan shall be subject to additional and/or
modified terms and conditions relating to the grant, Release or Exercise of an Award as may be necessary to comply with or take account of any securities, exchange control or taxation laws, regulations, practice or other laws of any territory which
may apply to the relevant Eligible Employee, Participant or Group Company. 

  

	5.5	 In exercising its discretion under Rule 5.4 above the Committee may:- 

 

	 	(a)	 require an Eligible Employee and/or a Participant to make such declarations or take such other action as may be
required for the purpose of any securities, exchange control or taxation laws, regulations, practice or other laws of any territory which may be applicable to him at the Date of Grant, Release or Exercise; and 

 

	 	(b)	 adopt any supplemental rules or procedures governing the grant, Release or Exercise of an Award as may be
required for the purpose of any securities, exchange control or taxation laws, regulations, practice or other laws of any territory which may be applicable to an Eligible Employee or Participant. 

 

	5.6	 The Committee may in its discretion determine whether the Participant shall be liable for the employers’
national insurance contributions payable on the Release or Exercise of an Award. 

  

 

	4 	 On cessation of employment. 

	5 	 On Take-over, Reconstruction, Amalgamation and Winding up of the Company. 

  
  

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	Abcam plc	  	Abcam plc Long-Term Incentive Plan  

  

	6	 Cessation of Employment 

 

	6.1	 Subject to Rule 6.2, if a Participant ceases to be employed by a Group Company for any reason an Award that has
not been Released shall lapse unless the Committee in its absolute discretion determines otherwise for reasons including, amongst others, injury, disability, ill health, retirement, redundancy and death. 

 

	6.2	 If the Committee, in accordance with its discretion under Rule 6.1, determines that an Award shall not lapse on
cessation, the proportion of the Award which shall be Released (subject to any adjustment pursuant to any of Rules 3.4, 3.5, 3.6 or 3.7) will be calculated based upon the amount of the relevant Holding Period completed on the date of cessation and
on the satisfaction of the Performance Requirements relating to the Award. 

  

	6.3	 For the purposes of calculating the number of Awards which shall be Released in accordance with Rule 6.2 the
Committee shall:- 

  

	 	(a)	 firstly, pro-rate the number of Awards based on the amount of the
relevant Holding Period completed on the date of cessation; and 

  

	 	(b)	 secondly, determine when the Performance Requirements shall be measured and when the Awards are Released, which
shall be either: 

  

	 	6.3.1	 at the date of cessation of employment; or 

 

	 	6.3.2	 the end of the relevant Holding Period. 

 

	6.4	 Where a Participant who ceases to be employed by a Group Company is subject to a Retention Requirement, the
Retention Requirement shall continue to apply after the Participant has ceased to be employed by a Group Company, unless the Committee determines otherwise. 

  

	6.5	 It shall be a condition of participation in the Plan that a Participant shall not be entitled to any
compensation in the event of cessation, lapse or alteration of any actual or prospective rights under the Plan or under any Award granted thereunder. No provisions of the Plan form part of any contract of employment between any Group Company and a
Participant. 

  

	6.6	 Nothing in the Plan or in any document issued pursuant thereto shall confer upon any person any right to
continue in the employ of any Group Company or shall affect the right of any Group Company to terminate the employment of any person, or shall impose upon any Group Company or employees of such Group Company, the Committee or their respective
servants or agents any liability for the loss of any rights under the Plan which may result if that person’s employment is so terminated (whether such termination is in breach of the relevant terms and conditions of employment or otherwise). In
no circumstances shall any Participant, by reason of ceasing to be employed by any Group Company be entitled to any compensation for any loss of any actual or prospective right or benefit under the Plan which he might otherwise have enjoyed, whether
such compensation is claimed by way of damages for wrongful or unfair dismissal or other breach of contract or by way of compensation for loss of office or otherwise. 

 

	6.7	 For the purposes of Rule 6, no Participant shall be treated as ceasing to be employed by a Group Company until
he ceases to hold office or employment in any Group Company. 

  

	6.8	 No benefit under the Plan shall be pensionable. 

 

	6.9	 In the case of Awards granted in the form of Nil Cost Options, the Participant shall have, such period as is
determined by the Committee in its discretion, from his date of cessation of employment to Exercise all Released Awards including those Awards Released as a result of the operation of Rule 6, at the end of which period any Awards that have not been
Exercised shall lapse. 

  
  

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	Abcam plc	  	Abcam plc Long-Term Incentive Plan  

  

	7	 Take-over, Reconstruction, Amalgamation, Winding up, Merger and Demerger of the Company

  

	7.1	 If any company or person acting alone or in concert with another or others obtains Control of the Company
(“Control Change”), the Committee on becoming aware thereof shall notify each Participant. 

  

	7.2	 If the Court sanctions a scheme of arrangement or compromise under Section 899 of the Companies Act 2006
which amounts to a Control Change, the Committee on becoming aware thereof shall notify each Participant. 

  

	7.3	 If any company or person becomes bound or entitled to acquire Shares under Sections 979 to 982 or 983 to 985 of
the Companies Act 2006, the Committee on becoming aware thereof shall notify each Participant. 

  

	7.4	 Subject to Rule 7.5, on the occurrence of any of the events set out in Rule 7.1, Rule 7.2 and Rule 7.3, a
proportion of the Award shall be Released (subject to any adjustment pursuant to any of the Rules 3.4, 3.5, 3.6 or 3.7) and any Retention Requirement shall cease to apply, unless the Committee determines otherwise. The proportion of the Award which
shall be Released shall be determined by the Committee in its absolute discretion. In exercising its discretion the Committee shall take account of whatever factors it considers appropriate, including the proportionate satisfaction of the relevant
Performance Requirements on such date and the amount of the relevant Holding Period completed. 

  

	7.5	 For the purposes of Rule 7.1, Rule 7.2 and Rule 7.8 a Control Change shall only occur where there is a Control
Change of the ultimate Holding Company of the Company. 

  

	7.6	 If a voluntary winding up of the Company is proposed or if an order is made for the compulsory winding up of
the Company, the Committee, in its absolute discretion, shall notify each Participant. On the occurrence of such event all Awards shall be Released. 

  

	7.7	 If, as a result of events specified in Rule 7.1 or Rule 7.2 above, a company has obtained Control of the
Company or if a company has become bound or entitled as stated in Rule 7.3 above (such company referred to as the “Acquiring Company”), the Participant may, by agreement with the Acquiring Company, cancel each subsisting Award (the
“Old Award”) in exchange for a replacement award (the “New Award”) provided that the New Award:- 

  

	 	(a)	 is over shares in the Acquiring Company or some other company which has Control of the Acquiring Company or is
a member of a consortium owning either the Acquiring Company or having Control of the Acquiring Company; 

  

	 	(b)	 is a right over such number of shares as have an aggregate Market Value equal to those Shares subject to the
Old Award at the date of exchange and is otherwise upon identical terms to the Old Award. 

 The New Award shall for all
purposes of the Plan be treated as having been acquired on the same Date of Grant as the Old Award and thereafter references in these Rules to the Company, Shares and Awards, where appropriate, shall be construed as references to the Acquiring
Company and its shares and New Awards. 
  

	7.8	 In the event that the Company merges with another company, or any of the businesses of the Group are demerged
(whether such merger or demerger is effected by way of sale, distribution or in any other manner) the Committee shall have the discretion whether or not to take any action pursuant to this Rule 7.8 and, if they decide to do so, shall notify each
Participant whether any Award shall be Released and/or adjustments be made to the number of Shares comprised in an Award in such manner and with effect from such date as the Committee shall determine to be appropriate and the advisors of the Company
confirm to be fair and reasonable provided that should the merger or demerger amount to a Control Change then the Committee shall apply the provisions of Rule 7.4. 

  
  

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	Abcam plc	  	Abcam plc Long-Term Incentive Plan  

  

	7.9	 The Committee shall notify Participants as soon as reasonably practicable of any adjustments made pursuant to
Rule 7.8 and may call in Award Certificates for endorsement or replacement. 

  

	7.10	 In the case of Awards granted in the form of Nil Cost Options, the participants shall have such period as
determined by the Committee in its discretion from the date of the occurrence of any of the events set out in Rules 7.1 to 7.4 (inclusive), Rule 7.7 and Rule 7.8 to Exercise all Nil Cost Options including those Options Released as a result of the
operation of this Rule 7, at the end of which period any Options not exercised shall lapse. 

  

	8	 Limits & Restrictions 

 

	8.1	 An Award shall be personal to a Participant and neither the Award nor any rights under the Award may be
transferred, assigned, pledged, charged or otherwise disposed of by a Participant to any other person (except in accordance with these Rules) and if a Participant shall do, suffer or permit any such act or thing whereby he would or might be deprived
of the legal and/or beneficial ownership of an Award that Award shall lapse forthwith. 

  

	8.2	 In respect of Awards which shall be satisfied by the subscription of Shares, the total number of Shares over
which such Awards may be granted as determined on any Date of Grant, when added to the number of Shares issued or remaining issuable pursuant to rights to subscribe for Shares granted under the Plan and Any Other Share Plan during the preceding 10
years shall not exceed 10% of the number of Shares in issue on the relevant Date of Grant. For the purposes of this Rule 8.2, there shall be ignored Awards to subscribe for Shares:- 

 

	 	(a)	 granted under Any Other Share Plan which were granted prior to the Company’s first listing of Shares on
the Exchange; or 

  

	 	(b)	 granted under the Plan or Any Other Share Plan which have lapsed, become void, been cancelled or which
otherwise become incapable of being Released. 

 For the purposes of this Rule 8.2 where Awards are intended to be
satisfied or are satisfied by the transfer and/or re-issue of Treasury Shares these Shares shall be deemed to count against the limits set out in this Rule. 

 

	8.3	 The maximum level of Award (being the aggregate Market Value of Shares subject to the Award at the date of
grant) that can be granted to an Eligible Employee under this Plan in any financial year shall be limited to 400% of such Eligible Employee’s Emoluments. For the purposes of this Rule 8.3, there shall be ignored Awards granted under the Plan or
awards under Any Other Share Plan which have lapsed, become void, been cancelled or which otherwise become incapable of being Released. 

  

	8.4	 The Plan shall terminate on the earlier of the following dates: 

 

	 	(a)	 any date determined by the Committee to be the date of termination of the Plan; and 

 

	 	(b)	 the fifth anniversary of the Adoption Date or Date of Renewal. 

 

	8.5	 Following termination of the Plan pursuant to this Rule no further Awards shall be granted, but the subsisting
rights and obligations of Participants at that time shall continue in force as if the Plan had not been terminated. 

  

	9	 Adjustments & Amendments 

 

	9.1	 If a variation of the issued share capital of the Company by way of a bonus issue or rights issue, sub-division, consolidation, reduction or otherwise shall take place then the number of Shares subject to an Award and the terms and conditions 

  
  

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applying to such Award shall be adjusted in such manner and with effect from such date as the Committee may determine to be appropriate and as the advisors of the Company shall have confirmed in
writing to be, in their opinion, fair and reasonable. 

  

	9.2	 The Committee shall have the power from time to time to make and amend such regulations for the implementation
and administration of the Plan in a manner consistent with the Plan as it thinks fit including (without limitation) to interpret and apply the Rules so as to give effect to the intention of any Retention Requirement, and to make any amendments to
these Rules. 

  

	9.3	 Without the prior approval of the Company in general meeting, an amendment may not be made for the benefit of
existing or future Participants to the Rules relating to: 

  

	 	(a)	 the basis for determining an Eligible Employee’s entitlement (or otherwise) to be made an Award and/or to
acquire Shares on the exercise of an Nil Cost Option and/or the Release of an Award (as the case may be) under the Plan; 

  

	 	(b)	 the persons to whom an Award may be made; 

 

	 	(c)	 the limit on the aggregate number of Shares over which Awards may be made; 

 

	 	(d)	 the limit on the number of Shares over which Awards may be made to any one Eligible Employee;

  

	 	(e)	 the price at which Shares may be acquired under an Award; 

 

	 	(f)	 this Rule 9.3 

except for: 
  

	 	(g)	 an amendment which is of a minor nature and benefits the administration of the Plan; or 

 

	 	(h)	 an amendment which is of a minor nature and is necessary or desirable in order to take account of a change of
legislation or to obtain or maintain favourable tax, exchange control or regulatory treatment for Participants, the Company or some other Group Company. 

  

	9.4	 No alteration shall be made which would materially affect any subsisting rights of Participants granted prior
to the date of the alteration without the prior consent or sanction of the majority of that number of Participants who responded to the notification by the Company of such proposed alteration except in accordance with Rules 5.4 and 5.5.

  

	9.5	 Any matters pertaining or pursuant to the Plan which are not dealt with by these Rules and any uncertainty or
dispute as to the meaning of these Rules shall be determined or resolved by decision of the Committee which shall be binding on the Company and all Participants. 

 

	9.6	 In the application of Rule 1.2(f), if events subsequently occur which cause the Committee to consider that the
existing Performance Requirements have become unfair or impractical it may, in its discretion (provided such discretion is exercised fairly and reasonably) amend the relevant Performance Requirements so that in the reasonable opinion of the
Committee they shall be no more or less difficult to abide by or satisfy as when they were originally imposed or last amended. 

  

	10	 Shares 

  

	10.1	 Subject to Rule 10.2 below, any Shares to be issued pursuant to the Release or Exercise of an Award shall be
allotted and issued, and any Shares to be transferred shall be transferred to the relevant Participant or a nominee nominated by a Participant not later than 30 days after the date of Release or Exercise of the Award. Such Shares shall rank pari
passu in all respects with other Shares of the same class save that the Participant shall have no entitlement in relation to rights 

  
  

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attaching to the Shares until the date of such allotment or transfer. Shares to be allotted shall not rank for any dividend or other distribution to be paid by reference to a record date before
the date of allotment. 

  

	10.2	 Any allotment and issue or transfer of Shares pursuant to this Plan shall be subject to such consents (if any)
of HM Treasury and/or other authorities as may from time to time be required. 

  

	10.3	 The Company shall apply to the relevant Exchange on which the Shares are listed for Shares issued pursuant to
the Release of Awards to be admitted to trading on such Exchange on or as soon as practicable after allotment. 

  

	10.4	 The Release of Awards may be satisfied by the subscription of Shares by the Trustees of the Trust and/or the
transfer of Shares held by the Trustees of the Trust and/or the issue of Shares and/or the transfer of Treasury Shares by the Company pursuant to section 727 of the Companies Act 2006 or any combination thereof. The Committee may determine which
method or combination thereof shall be used to satisfy the Release or Exercise of Awards. 

  

	10.5	 The Trustees may determine in their discretion to undertake the responsibility of satisfying Awards on behalf
of the Company. 

  

	10.6	 Shares that are issued may not be subscribed for at less than their nominal value. 

 

	10.7	 The Company shall:- 

  

	 	(a)	 when necessary keep available for issue sufficient authorised and unissued Shares to satisfy all rights to
subscribe for Shares from time to time subsisting under Awards granted pursuant to the Plan, taking account of any other obligations of the Company to allot and issue Shares; and/or 

 

	 	(b)	 ensure when necessary that it is in a position to satisfy or procure the satisfaction of all rights to acquire
Shares from time to time subsisting under the Plan, taking account of other obligations of the Company in relation to the provision of Shares. 

  

	11	 Administration 

 

	11.1	 Notices or documents under the Plan required to be given by the Company to an Eligible Employee or a
Participant shall be properly given if delivered to him at his normal place of work or sent to him by first class post at his last known address and any notice or document required to be given to the Company shall be properly given if delivered or
sent by first class post to the registered office of the Company from time to time addressed to the Company Secretary. 

  

	11.2	 Participation in the Plan shall not entitle a Participant to receive copies of any notice or other document
sent by the Company to its shareholders prior to the Release and/or Exercise of the Award. 

  

	11.3	 The Company shall bear the costs of establishing and administering the Plan. 

 

	11.4	 The Company shall maintain or cause to be maintained all necessary accounts and records relating to the Plan.

  

	11.5	 A Participant may at any time prior to the Release and/or Exercise of an Award renounce the Award (in whole or
in part) by serving notice in writing on the Company of such intention. The renunciation shall be effective from the date of receipt of such notice by the Company. 

 

	11.6	 The Rules and the operation of the Plan shall be governed and construed in accordance with English Law.

  
  

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	12	 Definitions 

  

	12.1	 In these Rules the following words and expressions have the following meanings:- 

 

					
		 	“Act”	  	The Corporation Tax Act 2010.
		 	“Adoption Date”	  	3rd November 2008
		 	“Any Other Share Plan”	  	any “employees’ share scheme” (as such term is defined in section 1166 of the Companies Act
2006) (other than this Plan) which provides for the subscription of Shares by or on behalf of employees of the Company, or any associated company (within the meaning of Section 449 of the Act).
		 	“Award”	  	a conditional entitlement to Shares or a Nil Cost Option over Shares.
		 	“Award Certificate”	  	a document evidencing an Award issued by the Company in such form as the Committee may from time to time
prescribe.
		 	“Close Period”	  	such time as Eligible Employees of the Company are prohibited from dealing in Shares, for whatever reason,
in accordance with rule 21 of the Alternative Investment Market Rules or the relevant provision in any regulations governing an Exchange (as replaced, amended or re-enacted from time to time) and/or such code as the Company may have established from
time to time or such other statutory, regulatory or other prohibition from dealing in Shares or rights over Shares.
		 	“Committee”	  	the remuneration committee of the Company.
		 	“Company”	  	Abcam plc (registered number 03509322).
		 	“Control”	  	control within the meaning of Section 1124 of the Act (and “Controlled” shall be construed
accordingly).
		 	“Date of Grant”	  	the date on which an Award is granted under Rule 1.
		 	“Date of Renewal”	  	8th November 2013
		 	“Eligible Employee”	  	any employee of a Group Company with a minimum period of continuous service with a Group Company, such
minimum period to be determined by the Committee in its absolute discretion, or a trustee acting on behalf of such employee.
		 	“Emoluments”	  	base salary or notional base salary provided to an Eligible Employee.
		 	“Exchange”	  	the Alternative Investment Market or any other recognised exchange on which the Company’s Shares are
listed from time to time.
		 	“Group”	  	the Company, any “Subsidiary” of the Company, any “Holding Company” of the Company and
any Subsidiary of any such Holding Company (as such terms are defined in section 1159 of the Companies Act 2006) and the term “Group Company” shall be construed accordingly.
		 	“Exercise”	  	the payment of the Exercise Price and the resulting purchase of the Shares subject to the Released
Award.
		 	“Exercise Price”	  	such value determined by the Committee in its discretion which must be paid by the Participant to acquire
the Shares subject to his Released Award. The Committee may determine an Exercise Price for each Share subject to an Award or a single Exercise Price to Exercise some or all of the Shares subject to an Award.
		 	“Financial Year”	  	the accounting reference period of the Company as defined in section 291 of the Companies Act
2006.

  
  

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		 	“Holding Period”	  	the period set by the Committee in accordance with Rule 1.2(d) which shall be three years from the Date of
Grant of the Award or such other period set by the Committee in its discretion.
		 	“Market Value”	  	on any dealing day means an amount equal to the closing price quoted for a Share on the Exchange.
		 	“Nil Cost Option”	  	a right to purchase a number of Shares subject to the satisfaction of the conditions and the payment of the
Exercise Price.
		 	“Participant”	  	an Eligible Employee who has been granted and still has a subsisting Award. Reference to a Participant shall
include, where the context so admits or requires, his personal representatives.
		 	“Plan”	  	Abcam plc Long-Term Incentive Plan as established by the Rules.
		 	“Performance Requirements”	  	such performance requirements or conditions (if any) as the Committee shall determine which must normally be
satisfied before an Award may be Released.
		 	“Released”	  	shall mean:-
		 	 	  	 •  where an Award
has been granted in the form of a conditional share entitlement the point when the beneficial and legal ownership of the Shares subject to an Award transfer to the Participant; and

		 	 	  	 •  where an Award
has been granted in the form of a Nil Cost Option the point at which the Award can be Exercised.

		 	 	  	“Release” shall be construed accordingly.
		 	“Retention Period”	  	the period or periods of up to three years beginning on the first day immediately after Shares subject to an
Award have been Released, as the Committee may determine
		 	“Retention Requirement”	  	a requirement imposed on a Participant in relation to an Award made following 1 July 2015 to retain a
specified percentage (as determined by the Committee and in accordance with such arrangements as the Committee shall determine) of the Shares subject to an Award which has been Released throughout the Retention Period, subject to the Participant
being permitted to sell such Shares as may be required to satisfy the indemnity in Rule 5.1.
		 	“Rules”	  	these rules and the Schedules as amended from time to time in accordance with the amendment provisions of
these rules.
		 	“Schedule”	  	the schedule to the Rules.
		 	“Shares”	  	ordinary shares in the capital of the Company.
		 	“Tax”	  	includes any present or future tax, levy, impost, duty, charge, fee, deduction or withholding of any nature,
made by any competent authority and interest or penalties in respect thereof.
		 	“Tax Payment”	  	an amount of Tax paid or payable by the Participant or the Group Company where the liability for such Tax is
the Participant’s in respect of the grant or Release or Exercise of an Award.
		 	“Trust”	  	any employee benefit trust which falls within section 86 of the Inheritance Tax Act 1984 and
“Trustees” shall be construed accordingly.

  

	12.2	 Where the context so admits or requires words importing the singular shall include the plural and vice versa
and words importing the masculine shall include the feminine and neuter. 

  
  

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	12.3	 Any reference to a statute or a statutory provision shall be construed as if it referred also to that statute
or provision as the same may from time to time be consolidated, replaced, amended or re-enacted and to any related statutory instrument or other subordinate legislation in force from time to time.

  

	12.4	 Wherever the Rules refer to the Committee having the ability to determine, decide or change matters howsoever
this shall mean that the Committee shall be entitled to do so in its absolute and unfettered discretion and no person shall have any right to challenge, dispute or appeal whatsoever against the Committee’s determination, decision or change
howsoever made. 

  

	12.5	 Headings, notes and footnotes to these Rules are included for convenience only and shall not affect the
interpretation or construction of these Rules. 

  

	12.6	 Reference to a “company” shall be construed so as to include any company, corporation or other body
corporate, wherever and however incorporated or established. 

  

	12.7	 References to a “person” shall be construed so as to include any individual, firm, company,
government, state or agency of a state, local or municipal authority or government body or any joint venture, association or partnership (whether or not having a separate legal personality). 

  
  

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 SCHEDULE 1 

The rules of the Abcam plc Executive Long-Term Incentive Plan (“Plan”) will apply to Awards held by Participants, who are or who may become, subject
to any US tax or social security contributions liability in connection with an Award, except as set out in this Schedule 1. Where there is any conflict between the rules of the Plan and this Schedule 1, the terms of this Schedule 1 will prevail.

  

	1.	 DEFINITIONS AND INTERPRETATION 

 

	 	1.1.	 “Awards” granted in accordance with this Schedule 1 may only be made in the form of
conditional entitlements to Shares and the rules of the Plan, as amended by this Schedule 1, will be construed accordingly; 

  

	2.	 CESSATION OF EMPLOYMENT 

 

	 	2.1.	 The following words will be deleted from rule 6.1: 

“retirement”. 
  

	3.	 SHARES 

  

	 	3.1.	 The first sentence in Rule 10.1 will be deleted and replaced with the following wording: 

“Subject to Rule 10.2 below, any Shares: 
  

	 	3.1.1	 to be issued (including from treasury) pursuant to the Release of an Award, shall be allotted and issued to the
Participant by the later of: 

  

	 	•	 	 15th March following the end of the calendar year in which the date of Release of the Award occurred; and

  

	 	•	 	 the 15th day of the third month in the Financial Year following the Financial Year in which the date of the
Release of the Award occurred. 

  

	 	3.1.2	 to be transferred pursuant to the Release of an Award, shall be transferred to the relevant Participant or a
nominee nominated by a Participant by the later of: 

  

	 	•	 	 31 December in the calendar year in which the date of Release of the Award occurred; and

  

	 	•	 	 the 15th day of the third month in the Financial Year following the Financial Year in which the date of the
Release of the Award occurred. 

  
  

Pg.12

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