Document:

exhib10_13-1.htm

  
    

    

    

    

    

    

    

    

    

    

    

     

    YUM!
BRANDS, INC.

     

    PENSION
EQUALIZATION PLAN

     

    (PEP)

    

    

    

    

    

    

    

    

    

    

    

    

    Plan
Document for the Section 409A Program

    (January
1, 2005 Restatement, As Amended Through December 2008)

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      
        
          	
                  YUM!
      BRANDS, INC. PENSION EQUALIZATION PLAN

                
	 
      	 
      	 
      
	
                  Table
      of Contents

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                  Page No.

                
	 
      	 
      	 
      
	
                  ARTICLE
      I  Foreward

                	
                  1

                
	
                  ARTICLE
      II  Definitions and Construction

                	
                  2

                
	
                  2.1  Definitions

                	
                  2

                
	
                  2.2 
      Construction

                	
                  14

                
	
                  ARTICLE
      III  Participation and Service

                	
                  16

                
	
                  3.1 
      Participation

                	
                  16

                
	
                  3.2 
      Service

                	
                  16

                
	
                  3.3  Credited
      Service

                	
                  16

                
	
                  ARTICLE
      IV  Requirements for Benefits

                	
                  17

                
	
                  4.1 
      Normal Retirement Pension

                	
                  17

                
	
                  4.2 
      Early Retirement Pension

                	
                  17

                
	
                  4.3  Vested
      Pension

                	
                  17

                
	
                  4.4  Late
      Retirement Pension

                	
                  17

                
	
                  4.5  Disability
      Pension

                	
                  18

                
	
                  4.6  Pre-Retirement
      Spouse's Pension

                	
                  18

                
	
                  4.7  Vesting

                	
                  19

                
	
                  4.8  Time
      of Payment

                	
                  19

                
	
                  4.9  Cashout
      Distributions

                	
                  20

                
	
                  4.10  Reemployment
      of Certain Participants

                	
                  20

                
	
                  ARTICLE
      V  Amount of Retirement Pension

                	
                  21

                
	
                  5.1  PEP
      Pension

                	
                  21

                
	
                  5.2  PEP
      Guarantee

                	
                  22

                
	
                  5.3  Amount
      of Pre-Retirement Spouse's Pension

                	
                  28

                
	
                  5.4  Certain
      Adjustments

                	
                  31

                
	
                  5.5  Excludable
      Employment

                	
                  32

                
	
                  5.6  Pre-409A
      Pension

                	
                  32

                
	
                  ARTICLE
      VI  Distribution Options

                	
                  33

                
	
                  6.1  Form
      and Timing of Distributions

                	
                  33

                
	
                  6.2  Available
      Forms of Payment

                	
                  35

                
	
                  6.3  Procedures
      for Elections

                	
                  39

                
	
                  6.4  Special
      Rules for Survivor Options

                	
                  40

                
	
                  6.5  Designation
      of Beneficiary

                	
                  41

                
	
                  6.6  Required
      Delay for Key Employees

                	
                  42

                
	
                  6.7  Payment
      of FICA and Related Income Taxes

                	
                  43

                
	
                  ARTICLE
      VII  Administration

                	
                  45

                
	
                  7.1  Authority
      to Administer Plan

                	
                  45

                
	
                  7.2  Facility
      of Payment

                	
                  45

                
	
                  7.3  Claims
      Procedure

                	
                  45

                
	
                  7.4  Plan
      Administrator Discretion

                	
                  47

                
	
                  ARTICLE
      VIII  Miscellaneous

                	
                  49

                
	
                  8.1  Nonguarantee
      of Employment

                	
                  49

                
	
                  8.2  Nonalienation
      of Benefits

                	
                  49

                
	
                  8.3 
      Unfunded Plan

                	
                  49

                
	
                  8.4  Action
      by the Company

                	
                  50

                

        

      

    
       

    

    

    
      
        
           

        

        
          i 

          
            

          

        

        
           

        

      

    

    

    

    
      
        
          	
                  YUM!
      BRANDS, INC. PENSION EQUALIZATION PLAN

                
	 
      	 
      	 
      
	
                  Table
      of Contents

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                  Page No.

                
	 
      	 
      	 
      
	
                  8.5  Indemnification

                	
                  50

                
	
                  8.6
      Compliance with Section 409A:

                	
                  50

                
	
                  ARTICLE
      IX  Amendment and Termination

                	
                  52

                
	
                  9.1  Continuation
      of the Plan

                	
                  52

                
	
                  9.2  Amendments

                	
                  52

                
	
                  9.3  Termination

                	
                  53

                
	
                  9.4  Change
      in Control

                	
                  53

                
	
                  ARTICLE
      X  ERISA Plan Structure

                	
                  54

                
	
                  ARTICLE
      XI Applicable Law

                	
                  56

                
	
                  ARTICLE
      XII  Signature

                	
                  58

                
	
                  APPENDIX

                	
                  59

                
	 
      	 
      

        

      

    

    

    

    

    

    

    

    

    
      
        
           

        

        
          ii 

          
            

          

        

        
           

        

      

    

     

    

    ARTICLE
I

    

    Foreword

     

     

    The Yum!
Brands, Inc. Pension Equalization Plan ("PEP" or "Plan") has been adopted by
Yum! Brands, Inc. ("Yum!") for the benefit of certain employees of the Yum!
Organization who participate in the Yum! Brands Retirement Plan ("Salaried
Plan").  PEP provides benefits for eligible employees whose pension
benefits under the Salaried Plan are limited by the provisions of the Internal
Revenue Code of 1986, as amended.  In addition, PEP provides benefits
for certain eligible employees based on the pre-1989 Salaried Plan
formula.

    This Plan
is first effective on October 7, 1997 in connection with the spinoff of Yum!
from PepsiCo, Inc.  This Plan is a successor plan to the PepsiCo
Pension Equalization Plan.

    This
document is effective as of January 1, 2005 (the “Effective
Date”).  It 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”).  All other benefits under the Plan shall be governed by the
document referenced in the preceding paragraph, which sets forth the pre-Section
409A terms of the Plan (the “Pre-409A Program”).  Together, this
document and the document 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 to permit the pre-409A Program to remain exempt from Section 409A as
grandfathered benefits.

    

    

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

     

    
 

    ARTICLE
II

    

    Definitions and
Construction

     

    

    2.1           Definitions:  This
section provides definitions for certain words and phrases listed
below.  These definitions can be found on the pages
indicated.

     

    
      
        
          	 
      	 
      	 
      	 
      	
                  Page

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  (a)

                	
                  Accrued
      Benefit

                	
                  3

                
	 
      	 
      	
                  (b)

                	
                  Actuarial
      Equivalent

                	
                  3

                
	 
      	 
      	
                  (c)

                	
                  Annuity

                	
                  4

                
	 
      	 
      	
                  (d)

                	
                  Annuity
      Starting Date

                	
                  4

                
	 
      	 
      	
                  (e)

                	
                  Code

                	
                  5

                
	 
      	 
      	
                  (f)

                	
                  Company

                	
                  5

                
	 
      	 
      	
                  (g)

                	
                  Covered
      Compensation

                	
                  5

                
	 
      	 
      	
                  (h)

                	
                  Credited
      Service

                	
                  5

                
	 
      	 
      	
                  (i)

                	
                  Disability
      Retirement Pension

                	
                  5

                
	 
      	 
      	
                  (j)

                	
                  Early
      409A Retirement Pension

                	
                  5

                
	 
      	 
      	
                  (k)

                	
                  Effective
      Date

                	
                  5

                
	 
      	 
      	
                  (l)

                	
                  Elapsed
      Time Service

                	
                  5

                
	 
      	 
      	
                  (m)

                	
                  Eligible
      Spouse

                	
                  6

                
	 
      	 
      	
                  (n)

                	
                  Employee

                	
                  6

                
	 
      	 
      	
                  (o)

                	
                  Employer

                	
                  6

                
	 
      	 
      	
                  (p)

                	
                  ERISA

                	
                  6

                
	 
      	 
      	
                  (q)

                	
                  Highest
      Average Monthly Earnings

                	
                  6

                
	 
      	 
      	
                  (r)

                	
                  Key
      Employee

                	
                  6

                
	 
      	 
      	
                  (s)

                	
                  Late
      Retirement Date

                	
                  8

                
	 
      	 
      	
                  (t)

                	
                  Late
      409A Retirement Pension

                	
                  8

                
	 
      	 
      	
                  (u)

                	
                  Normal
      Retirement Age

                	
                  8

                
	 
      	 
      	
                  (v)

                	
                  Normal
      Retirement Date

                	
                  8

                
	 
      	 
      	
                  (w)

                	
                  Normal
      409A Retirement Pension

                	
                  8

                
	 
      	 
      	
                  (x)

                	
                  Participant

                	
                  8

                
	 
      	 
      	
                  (y)

                	
                  Pension

                	
                  8

                
	 
      	 
      	
                  (z)

                	
                  Plan

                	
                  8

                
	 
      	 
      	
                  (aa)

                	
                  Plan
      Administrator

                	
                  9

                
	 
      	 
      	
                  (bb)

                	
                  Plan
      Year

                	
                  9

                
	 
      	 
      	
                  (cc)

                	
                  Pre-Retirement
      Spouse's Pension

                	
                  9

                
	 
      	 
      	
                  (dd)

                	
                  Primary
      Social Security Amount

                	
                  9

                
	 
      	 
      	
                  (ee)

                	
                  Prior
      Plan

                	
                  10

                
	 
      	 
      	
                  (ff)

                	
                  Qualified
      Joint and Survivor Annuity

                	
                  10

                
	 
      	 
      	
                  (gg)

                	
                  Retirement

                	
                  11

                
	 
      	 
      	
                  (hh)

                	
                  Retirement
      Date

                	
                  11

                
	 
      	 
      	
                  (ii)

                	
                  Retirement
      Pension

                	
                  11

                
	 
      	 
      	
                  (jj)

                	
                  Salaried
      Plan

                	
                  11

                
	 
      	 
      	
                  (kk)

                	
                  Section
      409A

                	
                  11

                
	 
      	 
      	
                  (ll)

                	
                  Separation
      from Service

                	
                  11

                
	 
      	 
      	
                  (mm)

                	
                  Service

                	
                  13

                
	 
      	 
      	
                  (nn)

                	
                  Single
      Life Annuity

                	
                  13

                
	 
      	 
      	
                  (oo)

                	
                  Single
      Lump Sum

                	
                  13

                
	 
      	 
      	
                  (pp)

                	
                  Social
      Security Act

                	
                  14

                

        

      

    

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    

    
      
        	 
      	 
      	
                (qq)

              	
                Taxable
      Wage Base

              	
                14

              
	 
      	 
      	
                (rr)

              	
                Vested
      Pension

              	
                14

              
	 
      	 
      	
                (ss)

              	
                Yum!
      Brands Organization

              	
                14

              

      

    

    

    Where the
following words and phrases, in boldface and underlined, appear in this Plan
(including the Foreword) with initial capitals they shall have the meaning set
forth below, unless a different meaning is plainly required by the
context.

    (a)  Accrued
Benefit:  The Pension payable at Normal Retirement Date
determined in accordance with Article V, based on the Participant's Highest
Average Monthly Earnings and Credited Service at the date of
determination.

    (b)  Actuarial
Equivalent:  Except as otherwise specifically set forth in the
Plan or any Appendix to the Plan with respect to a specific benefit
determination, a benefit of equivalent value computed on the basis of the
factors set forth below.  The application of the following assumptions
to the computation of benefits payable under the Plan shall be done in a uniform
and consistent manner.  In the event the Plan is amended to provide
new rights, features or benefits, the following actuarial factors shall not
apply to these new elements unless specifically adopted by the
amendment.

    (1)  Annuities and Inflation
Protection:  To determine the amount of a Pension payable in
the form of a Qualified Joint and Survivor Annuity or optional form of survivor
annuity, an annuity with inflation protection, or as a period certain and life
annuity, the Plan Administrator shall select the factors that are to be
used.  Effective January 1, 2009, the initial factors selected by the
Plan Administrator are set forth in Schedule 1, below (prior factors appear in
the Appendix).  Thereafter, the Plan Administrator shall review such
initial factors from time to time and shall amend such factors in its
discretion.  A Participant shall have no right to have any of the
actuarial factors specified under the Plan from time to time applied to his
benefit (or any portion thereof), except to the extent that a particular factor
is currently in effect at the time it is to be applied under the
Plan.  For the avoidance of doubt, it is expressly intended and
binding upon Participants that any actuarial factors selected by the Plan
Administrator from time-to-time may be applied retroactively to already accrued
benefits, and without regard to the actuarial factors that may have applied
previously for such purpose.

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

     

    

    
      
        	
                SCHEDULE
      1

                 

              

      

    

    
      
        
          	
                  Date

                	
                  Mortality Table Factors

                	
                  Interest Rate Factor

                
	
                  January
      1, 2009-Present

                	
                  [insert]

                	
                  [insert]

                
	 
      	 
      	 
      

        

      

    

     

    (2)  Lump
Sums:  To determine the lump sum value of a Pension, or a
Pre-Retirement Spouse's Pension under Section 4.6, the factors applicable for
such purposes under the Salaried Plan shall apply.

    (3)  Other
Cases:  To determine the adjustment to be made in the Pension
payable to or on behalf of a Participant in other cases, the factors are those
applicable for such purpose under the Salaried Plan.

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

    (d)  Annuity
Starting Date:  The Annuity
Starting Date shall be the first day of the first period for which an amount is
payable under this Plan as an annuity or in any other
form.  Notwithstanding anything else in the Plan to the contrary, the
Annuity Starting Date shall be determined without regard to any delay that may
be applicable to a Participant's Pension, such as the delay required for Key
Employees under Section 6.6 or for prior payment elections under Section
6.1(a)(2).  A Participant who: (1) is reemployed after his initial
Annuity Starting Date, and (2) is entitled to benefits hereunder after his
reemployment, shall have a subsequent Annuity Starting Date for such benefits
only to the extent provided in Section 6.3(d).

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    

    (e)  Code:  The
Internal Revenue Code of 1986, as amended from time to time.  All
references herein to particular Code Sections shall also refer to any successor
provisions and shall include all related regulations.

    (f)  Company:  Yum!
Brands, Inc., a corporation organized and existing under the laws of the State
of North Carolina or its successor or successors.  For periods before
May 16, 2002, the Company was named Tricon Global Restaurants,
Inc.  For periods before October 7, 1997, the Company under the Prior
Plan was PepsiCo, Inc., a North Carolina corporation.

    (g)  Covered
Compensation:  "Covered Compensation" as that term is defined
in the Salaried Plan.

    (h)  Credited
Service:  The period of a Participant's employment, calculated
in accordance with Section 3.3, which is counted for purposes of determining the
amount of benefits payable to, or on behalf of, the Participant.

    (i)  Disability
Retirement Pension:  The Retirement Pension available to a
Participant under Section 4.5.

    (j)  Early
409A Retirement Pension:  The 409A Retirement Pension available
to a Participant under Section 4.2.

    (k)  Effective
Date:  The date upon which this document for the 409A Program
is effective, January 1, 2005.  Certain identified provisions of the
409A Program or the Plan may be effective on different dates, to the extent
noted herein.

    (l)  Elapsed
Time Service:  The period of time beginning with a
Participant’s first date of employment with the Yum! Brands Organization and
ending with the Participant’s Final Separation from Service, irrespective of any
breaks in service between those two dates.  By way of illustration, if
a Participant began employment with the Yum! Brands Organization on January 1,
2000, left the employment of the Yum! Brands Organization from January 1, 2001
until December 31, 2004, and was then reemployed by the Yum! Brands Organization
on January 1, 2005 until he had a Final Separation
from Service on December 31, 2008, the Participant would have eight years of
Elapsed Time Service as of his Final Separation from
Service.

    

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

    

    

    (m)  Eligible
Spouse:  The spouse of a Participant to whom the Participant is
married on the earlier of the Participant's Annuity Starting Date or the date of
the Participant's death.

    (n)  Employee:  An
individual who qualifies as an "Employee" as that term is defined in the
Salaried Plan.

    (o)  Employer:  An
entity that qualifies as an "Employer" as that term is defined in the Salaried
Plan.

    (p)  ERISA:  Public
Law No. 93-406, the Employee Retirement Income Security Act of 1974, including
any amendments thereto, any similar subsequent federal laws, and any regulations
from time to time in effect under any of such laws.

    (q)  Highest
Average Monthly Earnings:  "Highest Average Monthly Earnings"
as that term is defined in the Salaried Plan, but without regard to the
limitation imposed by section 401(a)(17) of the Code (as such limitation is
interpreted and applied under the Salaried Plan).  Notwithstanding the
foregoing, to the extent that a Participant receives, during a leave of absence,
earnings that would be counted as Highest Average Monthly Earnings if they were
received during a period of active service, but that will be received after the
Participant’s Separation from Service, the Plan Administrator may provide for
determining the Participant’s 409A Pension at Separation from Service by
projecting the benefit the Participant would have if all such earnings were
taken into account under the Plan.

    (r)  Key
Employee:  The individuals identified in accordance with the
following paragraphs.

    (1) In
General.  Any Participant who at any time during the applicable
year is:

    (i) An
officer of any member of the Yum! Brands Organization
having annual compensation greater than $130,000 (as adjusted for the applicable
year under Code Section 416(i)(1));

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    (ii) A
5-percent owner of any member of the Yum! Brands Organization; or

    (iii) A
1-percent owner of any member of the Yum! Brands Organization having annual
compensation of more than $150,000.

    For
purposes of subparagraph (i) above, no more than 50 employees identified in the
order of their annual compensation shall be treated as officers.  For
purposes of this Section, annual compensation means compensation as defined in
Treas. Reg. §1.415(c)-2(a), without regard to Treas. Reg. §§1.415(c)-2(d),
1.415(c)-2(e), and 1.415(c)-2(g).  The Plan Administrator shall
determine who is a Key Employee in accordance with Code Section 416(i)
(provided, that Code Section 416(i)(5) shall not apply in making such
determination), and provided further than 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.

    (2) Applicable
Year.  Effective from and after December 31, 2007, the Plan
Administrator shall determine Key Employees effective as of the last day of each
calendar year, based on compensation for such year, and such designation shall
be effective for purposes of this Plan for the twelve-month period commencing on
April 1st of the
next following calendar year (e.g., the Key Employee
determination by the Plan Administrator as of December 31, 2008 shall apply to
the period from April 1, 2009 to March 31, 2010).

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

     

    

    (s)  Late
Retirement Date:  The Late
Retirement Date shall be the first day of the month coincident with or
immediately following a Participant's actual Retirement Date occurring after his
Normal Retirement Age.

    (t)  Late 409A
Retirement Pension:  The Retirement Pension available to a
Participant under Section 4.4.

    (u)  Normal
Retirement Age:  The Normal Retirement Age under the Plan is
age 65 or, if later, the age at which a Participant first has 5 Years of Elapsed
Time Service.

    (v)  Normal
Retirement Date:  A Participant's Normal Retirement Date shall
be the first day of the month coincident with or immediately following a
Participant's Normal Retirement Age.

    (w)  Normal
409A Retirement Pension:  The Retirement
Pension available to a Participant under Section 4.1.

    (x)  Participant:  An
Employee participating in the Plan in accordance with the provisions of Section
3.1.

    (y)  Pension:  One
or more payments that are payable by the Plan to a person who is entitled to
receive benefits under the Plan.  The term “409A Pension” shall be
used to refer to the portion of a Pension that is derived from the 409A
Program.  The term “Pre-409A Pension” shall be used to refer to the
portion of a Pension that is derived from the Pre-409A Program.

    (z)  Plan:  The Yum! Brands,
Inc. Pension Equalization Plan, the Plan set forth herein and in the Pre-409A
Program documents, as the Plan may be amended from time to time (subject to the
limitations on amendment that are applicable hereunder and under the Pre-409A
Program).  Prior to September 1, 2004, the Plan was known as the
Tricon Pension Equalization Plan.  The Plan is also sometimes referred
to as PEP, and it is a successor to the PepsiCo Pension Equalization Plan, which
was also known as the PepsiCo Pension Benefit Equalization Plan.

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (aa)  Plan
Administrator:  The Company, which shall have authority to
administer the Plan as provided in Article VII.

    (bb)  Plan
Year:  The Plan Year shall be the 12-month period commencing on
January 1 and ending on December 31.

    (cc)  Pre-Retirement
Spouse's Pension:  The Pension available to an Eligible Spouse
under the Plan.  The term "Pre-Retirement Spouse's 409A Pension" shall
be used to refer to the Pension available to an Eligible Spouse under Section
4.6 of this document.

    (dd)  Primary
Social Security Amount:  In determining Pension amounts,
Primary Social Security Amount shall mean:

    (1)  For
purposes of determining the amount of a Retirement, Vested or Pre-Retirement
Spouse's Pension, the Primary Social Security Amount shall be the estimated
monthly amount that may be payable to a Participant commencing at age 65 as an
old-age insurance benefit under the provisions of Title II of the Social
Security Act, as amended.  Such estimates of the old-age insurance
benefit to which a Participant would be entitled at age 65 shall be based upon
the following assumptions:

    (i)  That
the Participant's social security wages in any year prior to Retirement or
Separation from Service are equal to the Taxable Wage Base in such year,
and

    (ii)  That
he will not receive any social security wages after Retirement or Separation
from Service.

    However,
in computing a Vested Pension under Formula A of Section 5.2, the estimate of
the old-age insurance benefit to which a Participant would be entitled at age 65
shall be based upon the assumption that he continued to receive social security
wages until age 65 at the same rate as the Taxable Wage Base in effect at his
Separation from Service.  For purposes of this subsection, "social
security wages" shall mean wages within the meaning of the Social Security
Act.

    

    
      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

    

    

    (2)  For
purposes of determining the amount of a Disability Pension, the Primary Social
Security Amount shall be (except as provided in the next sentence) the initial
monthly amount actually received by the disabled Participant as a
disabil­ity insurance benefit under the provisions of Title II of the Social
Security Act, as amended and in effect at the time of the Participant's
Retirement due to disability.  Notwithstanding the preceding sentence,
for any period that a Participant receives a Disability Pension before
receiv­ing a disability insurance benefit under the pro­visions of Title
II of the Social Security Act, then the Participant's Primary Social Security
Amount for such period shall be determined pursuant to paragraph (1)
above.

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

    (ee)  Prior
Plan:  The PepsiCo
Pension Equalization Plan.

    (ff)  Qualified
Joint and Survivor Annuity:  An Annuity which is payable to the
Participant for life with 50 percent of the amount of such Annuity payable after
the Participant's death to his surviving Eligible Spouse for life.  If
the Eligible Spouse predeceases the Participant, no survivor benefit under a
Qualified Joint and Survivor Annuity shall be payable to any
person.  The amount of a Participant's monthly payment under a
Qualified Joint and Survivor Annuity shall be reduced to the extent provided in
Sections 5.1 and 5.2, as applicable.

    

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

     

    (gg)  Retirement:  Separation
from Service for reasons other than death after a Participant has fulfilled the
requirements for either a Normal, Early, Late, or Disability Retirement Pension
under Article IV.

    (hh)  Retirement
Date:  The date immediately following the Participant's
Retirement.

    (ii)  Retirement
Pension:  The Pension payable to a Participant upon Retirement
under the Plan.  The term “409A Retirement Pension” shall be used to
refer to the portion of a Retirement Pension that is derived from the 409A
Program.  The term “Pre-409A Retirement Pension” shall be used to
refer to the portion of a Retirement Pension that is derived from the Pre-409A
Program.

    (jj)  Salaried  Plan:  The Yum! Brands
Retirement Program for Salaried Employees, the program of retirement benefits
set forth in Parts B and D of the Yum! Brands Retirement Plan, as it may be
amended from time to time.  Any reference herein to the Salaried Plan
for a period that is on or after September 7, 1997 but before December 30, 1998,
shall mean the Tricon Salaried Employees Retirement Plan, which was renamed the
Tricon Retirement Plan from December 30, 1998 to September 1,
2004.  Any reference herein to the Salaried Plan for a period that is
before the September 7, 1997 shall mean the PepsiCo Salaried Employees
Retirement Plan.

    (kk)  Section
409A:  Section 409A of
the Code.

    (ll)         Separation
from Service:  A Participant’s separation from service with the
Yum! Brands 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.  Notwithstanding the preceding
sentence, a Participant’s transfer to an entity owned 20% or more by the Company
will not constitute a Separation of Service to the extent permitted by Section
409A.  A Participant’s “Final Separation from Service” is the date of
his Separation from Service that most recently precedes his Annuity Starting
Date; provided, however, that to the extent a Participant is reemployed after an
Annuity Starting Date, he will have a new Final Separation from Service with
respect to any benefits to which he becomes entitled as a result of his
reemployment.  The following principles shall generally apply in
determining when a Separation from Service occurs:

    

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

    

    

    (1)           A
Participant separates from service with the Company if the Employee dies,
retires, or otherwise has a termination of employment with the
Company.  Whether a termination of employment has occurred is
determined based on whether the facts and circumstance indicate that the Company
and the Employee reasonably anticipated that no further services would be
performed after a certain date or that the level of bona fide services the
Employee would perform after such date (as an employee or independent
contractor) would permanently decrease to no more than 20 percent of the average
level of bona fide services performed over the immediately preceding 36-month
period (or the full period in which the Employee provided services to the
Company if the Employee has been providing services for less than 36
months).

    (2)           An
Employee will not be deemed to have experienced a Separation from Service if
such Employee is on military leave, sick leave, or other bona fide leave of
absence, to the extent such leave does not exceed a period of six months or, if
longer, such longer period of time during which a right to re-employment is
protected by either statute or contract.  If the period of leave
exceeds six months and the individual does not retain a right to re-employment
under an applicable statute or by contract, the employment relationship is
deemed to terminate on the first date immediately following such six-month
period.

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

     

     

    Notwithstanding
the foregoing, where a leave of absence is due to any medically determinable
physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than six months, where such
impairment causes the Employee to be unable to perform the duties of his or her
position of employment or any substantially similar position of employment, a
29-month period of absence may be substituted for such six-month
period.

    (3)           If
an Employee provides services both an as employee and as a member of the Board
of Directors of the Company, the services provided as a Director are generally
not taken into account in determining whether the Employee has Separated from
Service as an Employee for purposes of the Plan, in accordance with final
regulations under Section 409A

    (mm)  Service:  The
period of a Participant's employment calculated in accordance with Section 3.2
for purposes of determining his entitlement to benefits under the
Plan.

    (nn)  Single
Life Annuity:  A level monthly
Annuity payable to a Participant for his life only, with no survivor benefits to
his Eligible Spouse or any other person.

    (oo)  Single
Lump Sum:  The distribution of a Participant's total Pension in
the form of a single payment, which payment shall be the Actuarial Equivalent of
the Participant’s 409A Pension as of the Participant’s Normal Retirement Date
(or Late Retirement Date, if applicable), but not less than the Actuarial
Equivalent of the Participant’s 409A Pension as of the Participant’s Early
Retirement Date, in the case of a Participant who is entitled to an immediate
Early 409A Retirement Pension.

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

    

    

    

    (pp)  Social
Security Act:  The Social
Security Act of the United States, as amended, an enactment providing
governmental benefits in connection with events such as old age, death and
disability.  Any reference herein to the Social Security Act (or any
of the benefits provided thereunder) shall be taken as a reference to any
comparable governmental program of another country, as determined by the Plan
Administrator, but only to the extent the Plan Administrator judges the
computation of those benefits to be administratively feasible.

    (qq)  Taxable
Wage Base:  The contribution
and benefit base (as determined under section 230 of the Social Security Act) in
effect for the Plan Year.

    (rr)  Vested
Pension:  The Pension available to a Participant under Section
4.3.  The term “409A Vested Pension” shall be used to refer to the
portion of a Vested Pension that is derived from the 409A
Program.  The term “Pre-409A Vested Pension” shall be used to refer to
the portion of a Vested Pension that is derived from the Pre-409A
Program.

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

    2.2 
Construction:  The
terms of the Plan shall be construed in accordance with this
section.

    (a)         Gender and
Number:  The masculine gender, where appearing in the Plan,
shall be deemed to include the feminine gender, and the singular may include the
plural, unless the context clearly indicates to the contrary.

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

    

    
      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

    

    

    

    (c)         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
passages 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 limits on its breadth of application).

    (d)         Subdivisions of the Plan
Document:  This Plan document is divided and subdivided using
the following progression:  articles, sections, subsections,
paragraphs, subparagraphs, clauses and sub-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 numerals in parentheses.  Subparagraphs are
designated by lower-case roman numerals in parentheses.  Clauses are
designated by upper-case letters in parentheses.  Sub-clauses are
designated by upper-case roman numerals 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 rule shall apply with respect to
paragraph references within a subsection and subparagraph references within a
paragraph.

    

    

    

    
      
        
           

        

        
          15

          
            

          

        

        
           

        

      

    

    
 

    ARTICLE
III

     

    Participation and
Service

     

     

    3.1 
Participation:  An
Employee shall be a Participant in the Plan during the period:

    (a)  When
he would be currently entitled to receive a Pension under the Plan if his
employment terminated at such time, or

    (b)  When
he would be so entitled but for the vesting requirement of Section
4.7.

    It is
expressly contemplated that an Employee, who is entitled to receive a Pension
under the Plan as of a particular time, may subsequently cease to be entitled to
receive a Pension under the Plan.

    3.2 
Service:  A
Participant's entitlement to a Pension and to a Pre-Retirement Spouse's Pension
for his Eligible Spouse shall be determined under Article IV based upon his
period of Service.  A Participant's period of Service shall be
determined under Article III of the Salaried Plan.  If a Participant’s
period of Service (as so determined) would extend beyond the Participant’s
Separation from Service date because of a leave of absence, the Plan
Administrator may provide for determining the Participant’s 409A Pension at
Separation from Service by projecting the benefit the Participant would have if
all such Service were taken into account under the Plan.

    3.3  Credited
Service:  The amount of a Participant's Pension and a
Pre-Retirement Spouse's Pension shall be based upon the Participant's period of
Credited Service, as determined under Article III of the Salaried
Plan.  If a Participant’s period of Credited Service (as so
determined) would extend beyond the Participant’s Separation from Service date
because of a leave of absence, the Plan Administrator may provide for
determining the Participant’s 409A Pension at Separation from Service by
projecting the benefit the Participant would have if all such Service were taken
into account under the Plan.

    

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

    

    

    ARTICLE
IV

     

    Requirements for
Benefits

     

     

    A
Participant shall be eligible to receive a Pension and a surviving Eligible
Spouse shall be eligible for certain survivor benefits as provided in this
Article.  The amount of any such Pension or survivor benefit shall be
determined in accordance with Article V.

    4.1 
Normal 409A Retirement
Pension:  A Participant shall be eligible for a Normal 409A
Retirement Pension if he is employed in an eligible classification and Separates
from Service after attaining Normal Retirement Age (provided, however, that with
respect to  determining the form of payment to which a Participant is
entitled under Article VI, the eligible classification requirement shall be
ignored).

    4.2 
Early 409A Retirement
Pension:  A Participant shall be eligible for an Early 409A
Retirement Pension if he is employed in an eligible classification and Separates
from Service prior to attaining Normal Retirement Age but after attaining at
least age 55 and completing 10 or more years of Elapsed Time Service (provided,
however, that with respect to  determining the form of payment to
which a Participant is entitled under Article VI, the eligible classification
requirement shall be ignored).

    4.3  409A Vested Pension:
A Participant who is vested under Section 4.7 shall be eligible to receive a
409A Vested Pension if he is employed in an eligible classification under the
Salaried Plan and Separates from Service before he is eligible for a Normal 409A
Retirement Pension or an Early 409A Retirement Pension (provided, however, that
with respect to  determining the form of payment to which a
Participant is entitled under Article VI, the eligible classification
requirement shall be ignored).  A Participant who terminates
employment prior to satisfying the vesting requirement in Section 4.7 shall not
be entitled to receive a Pension under this Plan.

    4.4  Late 409A Retirement
Pension:  A Participant who continues without a Separation from
Service after his Normal Retirement Age shall not receive a Pension until his
Late Retirement Date.  Thereafter, a Participant shall be eligible for
a Late Retirement Pension determined
in accordance with Section 4.4 of the Salaried Plan (but without regard to any
requirement for notice of suspension under ERISA section 203(a)(3)(B) or any
adjustment as under Section 5.5(d) of the Salaried Plan).

    

    
      
        
           

        

        
          17

          
            

          

        

        
           

        

      

    

    

    

    4.5  409A Disability
Pension:  A Participant shall be eligible for a 409A Disability
Pension if he meets the requirements for a Disability Pension under the Salaried
Plan.  A Participant’s 409A Disability Pension, if any, shall
generally be comprised of two parts.  The first part shall represent
the benefits with respect to a disabled Participant’s Credited Service through
the day of the Participant’s Separation from Service (i.e., the Participant’s
"Pre-Separation Accruals").  In the event the disabled Participant
continues to receive Credited Service related to the disability after such
Separation from Service, the Participant’s 409A Disability Pension shall have a
second part, which shall represent all benefits accrued with respect to Credited
Service from the date immediately following the Participant’s Separation from
Service until the earliest of the Participant’s (i) attainment of age 65, (ii)
benefit commencement date under the Salaried Plan or (iii) recovery from the
disability (i.e., the
Participant’s "Post-LTD Accruals").

    4.6  Pre-Retirement Spouse's 409A
Pension:  Any Pre-Retirement Spouse's 409A Pension is payable
under this section only in the event the Participant dies prior to his Annuity
Starting Date.  Any Pre-Retirement Spouse’s 409A Pension payable on
behalf of a Participant shall commence as of the first day of the month
following the Participant’s death and, subject to Section 4.9, shall be
paid as either (a) a lump sum, if the Participant would have been entitled to a
409A Retirement Pension on the date of his death, or (b)  a monthly
annuity for the life of the Eligible Spouse, if the Participant would have been
entitled to a 409A Vested Pension on the date of his death.

    (a)  Active, Disabled and Retired
Employees:  A Pre-Retirement Spouse's 409A Pension shall be
payable under this subsection to a Participant's Eligible Spouse (if any) who is
entitled under the Salaried Plan to the special pre-retirement spouse's pension
for survivors of active, disabled and retired employees.  The amount
(if any) of such Pension shall be determined in accordance with the provisions
of Section 5.3 (with the 409A Pension, if any, determined after application of
Section 5.6).

    

    
      
        
           

        

        
          18

          
            

          

        

        
           

        

      

    

     

     

    (b)  Vested
Employees:  A Pre-Retirement Spouse's 409A Pension shall be
payable under this subsection to a Participant's Eligible Spouse (if any) who is
entitled under the Salaried Plan to the pre-retirement spouse's pension for
survivors of vested terminated Employees.  The amount (if any) of such
Pension shall be determined in accordance with the provisions of Section 5.3
(with the 409A Pension, if any determined after application of Section
5.6).  If pursuant to this Section 4.6(b) a Participant has
Pre-Retirement Spouse's coverage in effect for his Eligible Spouse, any Pension
calculated for the Participant under Section 5.2(b) shall be reduced for each
year such coverage is in effect by the applicable percentage set forth below
(based on the Participant's age at the time the coverage is in effect) with a
pro rata reduc­tion for any portion of a year.  No reduction shall
be made for coverage in effect within the 90-day period following a
Participant's termination of employment.

    

    
      
        
          
            
              	
                      Attained Age

                    	 
      	
                      Annual Charge

                    
	 
      	 
      	 
      
	
                      Up
      to 35

                    	 
      	
                      0.00
      %

                    
	
                      35
      -- 39

                    	 
      	
                      0.075
      %

                    
	
                      40
      -- 44

                    	 
      	
                      0.10
      %

                    
	
                      45
      -- 49

                    	 
      	
                      0.175
      %

                    
	
                      50
      -- 54

                    	 
      	
                      0.30
      %

                    
	
                      55
      -- 59

                    	 
      	
                      0.50
      %

                    
	
                      60
      -- 64

                    	 
      	
                      0.50
      %

                    

            

          

        

      

    

    

    4.7  Vesting:  A
Participant shall be fully vested in, and have a nonforfeitable right to, his
Accrued Benefit at the time he becomes fully vested in his accrued benefit under
the Salaried Plan.

    4.8  Time of
Payment:  The distribution of a Participant's 409A Pension
shall commence as of the time specified in Section 6.1, subject to Section
6.6.

    

    
      
        
           

        

        
          19

          
            

          

        

        
           

        

      

    

    

    

    4.9  Cashout
Distributions

    Notwithstanding
the availability or applicability of a different form of payment under Article
VI, the following rules shall apply in the case of certain small benefit Annuity
payments:

    (a)  Distribution of
Participant's Pension:  If  at a Participant's
Annuity Starting Date the Actuarial Equivalent lump sum value of the
Participant's PEP Pension is equal to or less than $15,500, the Plan
Administrator shall distribute to the Participant such lump sum value of the
Participant's PEP Pension.

    (b)  Distribution of
Pre-Retirement Spouse's Pension Benefit:  If at the time
payments are to commence to an Eligible Spouse under Section 4.6, the Actuarial
Equivalent lump sum value of the PEP Pre-Retirement Spouse's Pension to be paid
is equal to or less than $15,500, the Plan Administrator shall distribute to the
Eligible Spouse such lump sum value of the PEP Pre-Retirement Spouse's
Pension.

    Any lump
sum distributed under this section shall be in lieu of the Pension that
otherwise would be distributable to the Participant or Eligible Spouse
hereunder.

    4.10           Reemployment of Certain
Participants:  In the case of a current or former Participant
who is receiving his Pension as an Annuity under Section 6.1(b), and who is
reemployed and is eligible to re-participate in the Salaried Plan after his
Annuity Starting Date, payment of his 409A Pension will continue to be paid in
the same form as it was paid prior to his reemployment.  Any
additional 409A Pension that is earned by the Participant shall be paid based on
the Separation from Service that follows the Participant's
re-employment.

    

    

    
      
        
           

        

        
          20

          
            

          

        

        
           

        

      

    

    

    ARTICLE
V

    

    Amount of Retirement
Pension

    

    

    When a
409A Pension becomes payable to or on behalf of a Participant under this Plan,
the amount of such 409A Pension shall be determined under Section 5.1, 5.2 or
5.3 (whichever is applicable), subject to any adjustments required under
Sections 4.6(b), 5.4 and 5.5.

    5.1  Participant’s 409A
Pension

    (a)  Calculating the 409A
Pension:  A Participant's 409A Pension shall be calculated as
follows (on the basis specified in subsection (b) below and using the
definitions appearing in subsection (c) below):

    (1)  His
Total Pension, reduced by

    (2)  His
Salaried Plan Pension, and then further reduced by (but not below
zero)

    (3)  His
Pre-409A Pension.

    (b)  Basis for
Determining:  The 409A Pension Benefit amount in subsection (a)
above shall be determined on a basis that takes into account applicable
reductions for early commencement and that reflects, as applicable, the relative
value of forms of payment.

    (c)  Definitions:  The
following definitions apply for purposes of this section.

    (1)  A
Participant's "Total Pension" means the greater of:

    (i)  The
amount of the Participant's pension determined under the terms of the Salaried
Plan, but without regard to:  (A) the limitations
imposed by sections 401(a)(17) and 415 of the Code (as such limitations are
interpreted and applied under the Salaried Plan), and (B) the actuarial
adjustment under Section 5.7(d) of the Salaried Plan (relating to benefits
that are deferred beyond the Participant’s Normal Retirement Date);
or

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    (ii)  The
amount (if any) of the Participant's PEP Guarantee determined under Section
5.2.

    As
necessary to ensure the Participant’s receipt of a "greater of" benefit, the
foregoing comparison shall be made by reflecting, as applicable, the relative
value of forms of payment.

    (2)  A
Participant's "Salaried Plan Pension" means the amount of the Participant's
pension determined under the terms of the Salaried Plan.

    5.2  PEP
Guarantee:  A Participant who is eligible under subsection (a)
below shall be entitled to a PEP Guarantee benefit determined under subsection
(b) below.  In the case of other Participants, the PEP Guarantee shall
not apply.

    (a)  Eligibility:  A
Participant shall be covered by this section if the Participant has 1988
pensionable earnings from an Employer of at least $75,000.  For
purposes of this section, "1988 pensionable earnings" means the Participant's
remuneration for the 1988 calendar year, which was recognized for benefit
received under the Salaried Plan as in effect in 1988.  "1988
pensionable earnings" does not include remuneration from an entity attributable
to any period when that entity was not an Employer.

    

    
      
        
           

        

        
          22

          
            

          

        

        
           

        

      

    

    

    

    (b)  PEP Guarantee
Formula:  The amount of a Participant's PEP Guarantee shall be
determined under the applicable formula in paragraph (1), subject to the special
rules in paragraph (2).

    (1)  Formulas:  The
amount of a Participant's Pension under this paragraph shall be determined in
accordance with subparagraph (i) below.  However, if the Participant
was actively employed by the Yum! Brands Organization in a classification
eligible for the Salaried Plan prior to July 1, 1975, the amount of his Pension
under this paragraph shall be the greater of the amounts determined under
subparagraphs (i) and (ii), provided that subparagraph (ii)(B) shall not apply
in determining the amount of a Vested Pension.

    (i)  Formula
A:  The Pension amount under this subparagraph shall
be:

    (A)  3
percent of the Participant's Highest Average Monthly Earnings for the first 10
years of Credited Service, plus

    (B)  1
percent of the Participant's Highest Average Monthly Earnings for each year of
Credited Service in excess of 10 years, less

    (C)  1-2/3
percent of the Participant's Primary Social Security Amount multiplied by years
of Credited Service not in excess of 30 years.

    In
determining the amount of a Vested Pension under this Formula A, the
Pension shall first be calculated on the basis of (I) the Credited Service the
Participant would have earned had he remained in the

    
 

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

       

      employ of
the Employer until his Normal Retirement Age, and (II) his Highest Average
Monthly Earnings and Primary Social Security Amount at his Separation from
Service, and then shall be reduced by multiplying the resulting amount by a
fraction, the numerator of which is the Participant's actual years of Credited
Service on his Separation from Service and the denominator of which is the years
of Credited Service he would have earned had he remained in the employ of an
Employer until his Normal Retirement Age.

    

    (ii)           Formula
B:  The Pension amount under this subparagraph shall be the
greater of (A) or (B) below:

    (A)           1-1/2
percent of Highest Average Monthly Earnings times the number of years of
Credited Service, less 50 percent of the Participant's Primary Social Security
Amount, or

    (B)           3
percent of Highest Average Monthly Earnings times the number of years of
Credited Service up to 15 years, less 50 percent of the Participant's Primary
Social Security Amount.

    In
determining the amount of a Disability Pension under Formula A or B above, the
Pension shall be calculated on the basis of the Participant's Credited Service
(determined in accordance with Section 3.3(d)(3) of the Salaried Plan), and his
Highest Average Monthly Earnings and Primary Social Security Amount at the date
of disability.

    

    
      
        
           

        

        
          24

          
            

          

        

        
           

        

      

    

    

    

    (2)  Calculation:  The
amount of the PEP Guarantee shall be determined pursuant to paragraph (1) above,
subject to the following special rules:

    (i)  Surviving Eligible Spouse's
Annuity:  Subject to subparagraph (iii) below and the last
sentence of this subparagraph, if the Participant has an Eligible Spouse and has
commenced receipt of an Annuity under this section, the Participant's Eligible
Spouse shall be entitled to receive a survivor annuity equal to 50 percent of
the Participant's Annuity under this section, with no corresponding reduction in
such Annuity for the Participant.  Annuity payments to a surviving
Eligible Spouse shall begin on the first day of the month coincident with or
following the Participant's death and shall end with the last monthly payment
due prior to the Eligible Spouse's death.  If the Eligible Spouse is
more than 10 years younger than the Participant, the survivor benefit payable
under this subparagraph shall be adjusted as provided below.

    (A)  For
each full year more than 10 but less than 21 that the surviving Eligible Spouse
is younger than the Participant, the survivor benefit payable to such spouse
shall be reduced by 0.8 percent.

    (B)  For
each full year more than 20 that the surviving Eligible Spouse is younger than
the Participant, the survivor benefit payable to such spouse shall be reduced by
an additional 0.4 percent.

    

    
      
        
           

        

        
          25

          
            

          

        

        
           

        

      

    

    

    

    (ii)  Reductions:  The
following reductions shall apply in determining a Participant's PEP
Guarantee.

    (A)  If
the Participant will receive an Early Retirement Pension, the payment amount
shall be reduced by 3/12ths of 1 percent for each month by which the benefit
commencement date precedes the date the Participant would attain his Normal
Retirement Date.

    (B)  If
the Participant is entitled to a Vested Pension, the payment amount shall be
reduced to the actuarial equivalent of the amount payable at his Normal
Retirement Date (if payment commences before such date), and the
Section 4.6(b) reductions for any Pre-Retirement Spouse's coverage shall
apply.

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

    (D)  This
clause applies if the Participant will receive his Pension in a form that
provides a survivor annuity for a beneficiary who is not his Eligible
Spouse.  In this instance, the Participant's
Pension under this section shall be reduced so that the total value of the
benefit payable on the Participant's behalf is the actuarial equivalent of a
Single Life Annuity for the Participant's life.

    

    
      
        
           

        

        
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    (E)  This
clause applies if the Participant will receive his Pension in a Annuity form
that includes inflation protection described in Section 6.2(b).  In
this instance, the Participant's Pension under this section shall be reduced so
that the total value of the benefit payable on the Participant's behalf is the
actuarial equivalent of the elected Annuity without such
protection.

    (iii)  Lump Sum
Conversion:  The amount of the Retirement Pension determined
under this section for a Participant whose Retirement Pension will be
distributed in the form of a lump sum shall be the actuarial equivalent of the
Participant's PEP Guarantee determined under this section, taking into account
the value of any survivor benefit under subparagraph (i) above and any early
retirement reductions under subparagraph (ii)(A) above.

    For
purposes of this paragraph (2), actuarial equivalence shall be determined taking
into account the PEP Guarantee’s purpose to preserve substantially the value of
a benefit under the pre-1989 terms of the Plan and the 409A Plan’s design that
offers alternative annuities that are considered actuarial equivalent for
purposes of Section 409A (taking into account, without limitation, the special
rule for
subsidized joint and survivor annuities in Treasury Regulation §
1.409A-3(b)(ii)(C)).

    

    
      
        
           

        

        
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    5.3  Amount of Pre-Retirement
Spouse's 409A Pension:  The  monthly amount of the
Pre-Retirement Spouse's 409A Pension payable to a surviving Eligible Spouse
under Section 4.6 shall be determined under subsection (a) below.

    (a)  Calculation:  An
Eligible Spouse's Pre-Retirement Spouse's 409A Pension shall be the difference
between:

    (1)  The
Eligible Spouse's Total Pre-Retirement Spouse's Pension, reduced
by

    (2)  The
Eligible Spouse's Salaried Plan Pre-Retirement Spouse's Pension, and then further reduced by
(but not below zero)

    (3)  The
Eligible Spouse's Pre-Retirement Spouse's Pension derived from the Pre-409A
Program.

    (b)  Definitions:  The
following definitions apply for purposes of this section.

    (1)  An
Eligible Spouse's "Total Pre-Retirement Spouse's Pension" means the greater
of:

    (i)  The
amount of the Eligible Spouse's pre-retirement spouse's pension determined under
the terms of the Salaried Plan, but without regard to:  (A) the
limitations imposed by sections 401(a)(17) and 415 of the Code (as such
limitations are interpreted and applied under the Salaried Plan), and (B) the
actuarial adjustment under Section 5.5(d) of the Salaried Plan;
or

    

    
      
        
           

        

        
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    (ii)  The
amount (if any) of the Eligible Spouse's PEP Guarantee Pre-Retirement Spouse's
Pension determined under subsection (c).

    In making
this comparison, the benefits in subparagraphs (i) and (ii) above shall be
calculated as if payable as of what would be the Normal Retirement Date of the
Participant related to the Eligible Spouse.

    (2)  An
"Eligible Spouse's Salaried Plan Pre-Retirement Spouse’s Pension” means the
Pre-Retirement Spouse’s Pension that would be payable to the Eligible Spouse
under the terms of the Salaried Plan.

    (3)  An
“Eligible Spouse’s Pre-Retirement Spouse’s Pension derived from the Pre-409A
Program” means the Pre-Retirement Spouse’s Pension that would be payable to the
Eligible Spouse under the terms of the Pre-409A Program.

    (c)  PEP Guarantee Pre-Retirement
Spouse's Pension:  An Eligible Spouse's PEP Guarantee
Pre-Retirement Spouse's Pension shall be determined in accordance with paragraph
(1) or (2) below, whichever is applicable, with reference to the PEP Guarantee
(if any) that would have been available to the Participant under Section
5.2.

    (1)  Normal
Rule:  The Pre-Retirement Spouse's Pension payable under this
paragraph shall be equal to the amount that would be payable as a survivor
annuity, under a Qualified Joint and Survivor Annuity, if the Participant
had:

    

    
      
        
           

        

        
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    (i)  Separated
from Service on the date of death (or, if earlier, his actual Separation from
Service);

    (ii)  Commenced
a Qualified Joint and Survivor Annuity on the same date payments of the
Qualified Pre-Retirement Spouse's Pension are to commence; and

    (iii)  Died
on the day immediately following such commencement.

    (2)  Special Rule for Active and
Disabled Employees:  Notwithstanding paragraph (1) above, the
Pre-Retirement Spouse's Pension paid on behalf of a Participant described in
Section 4.6(a) shall not be less than an amount equal to 25 percent of such
Participant's PEP Guarantee (if any) determined under Section
5.2.  For this purpose, Credited Service shall be determined as
provided in Section 3.3(d)(2) of the Salaried Plan, and the deceased
Participant's Highest Average Monthly Earnings, Primary Social Security Amount
and Covered Compensation shall be determined as of his date of
death.  A Pre-Retirement Spouse's Pension under this paragraph is not
reduced for early commencement.

    Principles
similar to those applicable under (i) Section 5.1(b), and (ii) the last sentence
of Section 5.2(b)(2) shall apply in determining the Pre-Retirement Spouse’s 409A
Pension under this section.

     

     

    
      
        
        

      

      
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    5.4  Certain
Adjustments:  Pensions determined under the foregoing sections
of this Article are subject to adjustment as provided in this
section.  For purposes of this section, "specified plan" shall mean
the Salaried Plan or a nonqualified pension plan similar to this Plan. 
A
nonqualified pension plan is similar to this Plan if it is sponsored by a member
of the Yum! Brands Organization and if its benefits are not based on participant
pay deferrals (this category of similar plans includes the Yum! Brands, Inc.
Pension Equalization Plan).

     

    (a)  Adjustments for Rehired
Participants:  This subsection shall apply to a current or
former Participant who is reemployed after his Annuity Starting Date and whose
benefit under the Salaried Plan is recalculated based on an additional period of
Credited Service.  In the event of any such recalculation, the
Participant's PEP Pension shall also be recalculated hereunder to the maximum
extent permissible under Section 409A.  For this purpose and to the
maximum extent permissible under Section 409A, the PEP Guarantee under Section
5.2 is adjusted for in-service distributions and prior distributions in the same
manner as benefits are adjusted under the Salaried Plan, but by taking into
account benefits under this Plan and any specified plans.

    (b)  Adjustment for Increased
Pension Under Other Plans:  If the benefit paid under a
specified plan on behalf of a Participant is increased after PEP benefits on his
behalf have been determined (whether the increase is by order of a court, by
agreement of the plan administrator of the specified plan, or otherwise), then
the PEP benefit for the Participant shall be recalculated to the maximum extent
permissible under Section 409A.  If the recalculation identifies an
overpayment hereunder, the Plan Administrator shall take such steps as it deems
advisable to recover the  overpayment.  It is specifically
intended that there shall be no duplication of payments under this Plan and any
specified plans to the maximum extent permissible under Section
409A.

     

     

    
      
        
        

      

      
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      5.5  Excludable
Employment:  An executive who has signed a written agreement
with the Company pursuant to which the individual either (i) waives eligibility
under the Plan (even if
the individual otherwise meets the definition of Employee under the Plan), or
(ii) agrees not to participate in the Plan, shall not thereafter become entitled
to a benefit or to any increase in benefits in connection with such employment
(whichever applies).  Written agreements may be entered into either
before or after the executive becomes eligible for or begins participation in
the Plan, and such written agreement may take any form that is deemed effective
by the Company.  This Section 5.5 shall apply with respect to
agreements that are entered into on or after January 1, 2009.

    

     

    5.6           Pre-409A
Pension:  A Participant’s Pre-409A Pension is the portion of
the Participant’s Pension that is grandfathered under Treasury Regulation §
1.409A-6(a)(3)(i) and (iv).  Principles similar to those applicable
under (i) Section 5.1(b), and (ii) the last sentence of Section 5.2(b)(2) shall
apply in determining the Pre-409A Pension under this section.

    

    

    
      
        
           

        

        
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    ARTICLE
VI

    

    Distribution of
Benefits

    

    

    The terms
of this Article govern (i) the distribution of benefits to a Participant who
becomes entitled to a 409A Pension, and (ii) the continuation of benefits (if
any) to such Participant’s beneficiary following the Participant’s
death.  The distribution of a Pre-409A Pension is governed by the
terms of the Pre-409A Program.

    6.1  Form and Timing of
Distributions:  Benefits under the 409A Program shall be
distributed as follows:

    (a)         409A Retirement
Pension:  The following rules govern the distribution of a
Participant’s 409A Retirement Pension:

    (1)           Generally:  A
Participant’s 409A Retirement Pension shall be distributed as a Single Lump Sum
on the first day of the month that is coincident with or next follows the
Participant’s Retirement Date, subject to paragraph (2) and Section 6.6 (delay
for Key Employees).

    (2)           Prior Payment
Election:  Notwithstanding paragraph (1), a Participant who is
entitled to a 409A Retirement Pension and who made an election (i) either (A) up
to and including December 31, 2006, or (B) between January 1, 2008 and December
31, 2008 (inclusive), and (ii) at least six months prior to and in a calendar
year prior to the Participant’s Annuity Starting Date shall receive his benefit
in accordance with such payment election.  A payment election allowed
a Participant to choose either (i) to receive a distribution of his benefit in
an Annuity form, (ii) to commence distribution of his benefit at a time other
than as 

    

    
      
        
        

      

      
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     provided
in paragraph 6.1(a)(1), or both (i) and (ii).  A payment election made
by a Participant who is only eligible to receive a Vested Pension on his
Separation from Service shall be disregarded. Subject to Section 4.9 (cashouts),
a Participant who has validly elected to receive an Annuity shall receive his
benefit as a Qualified Joint and Survivor Annuity if he is married or as a
Single Life Annuity if he is unmarried, unless he elects one of the optional
forms of payment described in Section 6.2 in accordance with the election
procedures in Section 6.3(a).  A Participant shall be considered
married if he is married on his Annuity Starting Date.  To the extent
a Participant’s benefit commences later than it would under paragraph 6.1(a)(1)
as a result of an election under this paragraph 6.1(a)(2), the Participant’s
benefit will be paid with interest equal to that specified in Section 6.6(c),
which interest shall be paid at the time elected by the Participant under this
paragraph 6.1(a)(2).

    (b)         409A Vested
Pension:  Subject to Sections 4.9, Section 6.6 and subsection
(c) below, a Participant’s 409A Vested Pension shall be distributed in
accordance with paragraph (1) or (2) below, unless, in the case of a married
Participant (as determined under the standards in paragraph 6.1(a)(2), above),
he elects one of the optional forms of payment distributions in Section 6.2 in
accordance with the election procedures in Section 6.3(a):

    (1)           Separation Prior to Age
55:  In the case of a Participant who Separates from Service
with at least five years of Service prior to attaining age 55, the Participant’s
409A Vested Pension shall be distributed as an Annuity commencing on the first
of the month that is coincident with or immediately follows
the date he attains age 55, which shall be the Annuity Starting Date of his 409A
Vested Pension.  A distribution under this subsection shall be in the
form of a Qualified Joint and Survivor Annuity if the Participant is married, or
as a Single Life Annuity if he is not married.  A Participant shall be
considered married for purposes of this paragraph if he is married on the
Annuity Starting Date of his 409A Vested Pension.

     

    
      
        
        

      

      
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    (2)           Separation at Ages 55
Through 64:  In the case of a Participant who Separates from
Service with at least five years but less than ten years of Service and on or
after attaining age 55 but prior to attaining age 65, the Participant’s 409A
Vested Pension shall be distributed as an Annuity (as provided in paragraph (1)
above) commencing on the first of the month that follows his Separation from
Service.

    (c)         Disability
Pension:  The portion of a Participant’s 409A Disability
Pension representing Pre-Separation Accruals shall be paid on the first day of
the month following the later of (i) the Participant’s attainment of age 55 and
(ii) the Participant’s Separation from Service.  The portion of a
Participant’s 409A Disability Pension representing Pre-Separation Accruals shall
be paid in the form otherwise applicable under Section 6.1(a).  The
portion of a Participant’s 409A Disability Pension representing Post-LTD
Accruals shall be paid on the first day of the month following the Participant’s
attainment of age 65 in a lump sum.

    6.2  Available Forms of
Payment:  This section sets for the payment options available
to a Participant who is entitled to a Retirement Pension under paragraph
6.1(a)(2) above or a Vested Pension under subsection 6.1(b) above.

    

    
      
        
        

      

      
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    (a)  Basic
Forms:  A Participant who is entitled to a Retirement Pension
may choose one of the following optional forms of payment by making a valid
election in accordance with the election procedures in Section
6.3(a).  A Participant who is entitled to a Vested Pension and who is
married on his Annuity Starting Date may choose one of the optional forms of
payment available under paragraphs (1), 2(ii) or 2(iii) below with his Eligible
Spouse as his beneficiary (and no other optional form of payment available under
this subsection (a) shall be permitted to such a Participant).  A
Participant who is entitled to a Vested Pension and who is not married on his
Annuity Starting Date shall receive a Single Life Annuity.  Each
optional annuity is the actuarial equivalent of the Single Life
Annuity:

    (1)  Single Life Annuity
Option:  A Participant may receive his 409A Pension in the form
of a Single Life Annuity, which provides monthly payments ending with the last
payment due prior to his death.

    (2)  Survivor
Options:  A Participant may receive his 409A Pension in
accordance with one of the following survivor options:

    (i)  100 Percent Survivor
Option:  The Participant shall receive a reduced 409A Pension
payable for life, ending with the last monthly payment due prior to his
death.  Payments in the same reduced amount shall continue after the
Participant's death to his beneficiary for life, beginning on the first day of
the month coincident with or following the Participant's death and ending with
the last monthly payment due prior to the beneficiary's death.

    

    
      
        
           

        

        
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    (ii)  75 Percent Survivor
Option:  The Participant shall receive a reduced Pension
payable for life, ending with the last monthly payment due prior to his
death.  Payments in the amount of 75 percent of such reduced Pension
shall be continued after the Participant's death to his beneficiary for life,
beginning on the first day of the month coincident with or following the
Participant's death and ending with the last monthly payment due prior to the
beneficiary's death.

    (iii)  50 Percent Survivor
Option:  The Participant shall receive a reduced 409A Pension
payable for life, ending with the last monthly payment due prior to his
death.  Payments in the amount of 50 percent of such reduced 409A
Pension shall be continued after the Participant's death to his beneficiary for
life, beginning on the first day of the month coincident with or following the
Participant's death and ending with the last monthly payment due prior to the
beneficiary's death.  A 50 percent survivor option under this
paragraph shall be a Qualified Joint and Survivor Annuity if the Participant's
beneficiary is his Eligible Spouse.

    (iv)  Ten Years Certain and Life
Option: The Participant shall receive a reduced 409A Pension which shall
be payable monthly for his lifetime but for not less than 120
months.  If the retired Participant dies before 120 payments have been
made, the monthly 409A  Pension amount shall be paid for the remainder
of the 120 month period to the
Participant's primary beneficiary (or if the primary beneficiary has predeceased
the Participant, the Participant's contingent beneficiary).

    

    
      
        
           

        

        
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    (b)  Inflation
Protection:  The following levels of inflation protection may
be provided to any Participant who elects to receive all or a part of his 409A
Retirement Pension as an Annuity:

    (1)           5 Percent Inflation
Protection:  A Participant's monthly benefit shall be initially
reduced, but thereafter shall be increased if inflation in the prior year
exceeds 5 percent.  The amount of the increase shall be the difference
between inflation in the prior year and 5 percent.

    (2)           7 Percent Inflation
Protection:  A Participant's monthly benefit shall be initially
reduced, but thereafter shall be increased if inflation in the prior year
exceeds 7 percent.  The amount of the increase shall be the difference
between inflation in the prior year and 7 percent.

    Benefits
shall be subject to increase in accordance with this subsection each January 1,
beginning with the second January 1 following the Participant's Annuity Starting
Date.  The amount of inflation in the prior year shall be determined
based on inflation in the 12-month period ending on September 30 of such year,
with inflation measured in the same manner as applies on the Effective Date for
adjusting Social Security benefits for changes in the cost of
living.  Inflation protection that is in effect shall carry over to
any survivor benefit payable on behalf of a Participant, and shall increase the
otherwise applicable survivor benefit as provided above.  Any election
by a Participant to receive inflation protection shall be irrevocable by such
Participant or his surviving beneficiary.

    

    
      
        
           

        

        
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    6.3  Procedures for
Elections:  This section sets forth the procedures for making
Annuity Starting Date elections (i.e., elections under Section
6.2).  Subsection (a) sets forth the procedures for making a valid
election of an optional form of payment under Section 6.2 and subsection (b)
includes special rules for Participants with multiple Annuity Starting
Dates.  An election under this Article VI shall be treated as received
on a particular day if it is:  (i) postmarked that day, or (ii)
actually received by the Plan Administrator on that day.  Receipt
under (ii) must occur by the close of business on the date in question, which
time is to be determined by the Plan Administrator.  Spousal consent
is not required for an election to be valid.

    (a)  Election of an Optional Form
of Payment:  To be valid, an election of an optional form of
Annuity under Section 6.2, for (i) a Participant’s 409A Retirement Pension (if a
proper election was made under paragraph 6.1(a)(2)) or (ii) a Participant’s 409A
Vested Terminated Pension, must be in writing, signed by the Participant, and
received by the Plan Administrator at least one day prior to the Annuity
Starting Date that applies to the Participant’s Pension in accordance with
Section 6.1.  In addition, an election under this subsection must
specify one of the optional forms of payment available under Section 6.2 and a
beneficiary, if applicable, in accordance with Section 6.5 below.  To
the extent permitted by the Plan Administrator, an election made through
electronic media shall be considered to satisfy the requirement for a written
election, and an electronic affirmation of such an election shall be considered
to satisfy the requirement for a signed election.

     

    
      
        
        

      

      
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    (b)  Multiple Annuity Starting
Dates:  When amounts become payable to a Participant in
accordance with Article IV, they shall be payable as of the Participant's
Annuity
Starting Date and the election procedures (in this section and Sections 6.1 and
6.5) shall apply to all of the Participant's unpaid accruals as of such Annuity
Starting Date, with the following exception.  In the case of a
Participant who is rehired after his initial Annuity Starting Date and who
(i) is currently receiving an Annuity that remained in pay status upon
rehire, or (ii) was previously paid a lump sum distribution (other than a
cashout distribution described in Section 4.9(a)), the Participant's subsequent
Annuity Starting Date (as a result of his subsequent Separation from Service),
and the election procedures at such subsequent Annuity Starting Date, shall
apply only to the portion of his benefit that accrues after his
rehire.  Any prior accruals that remain to be paid as of the
Participant's subsequent Annuity Starting Date shall continue to be payable in
accordance with the elections made at his initial Annuity Starting
Date.

    6.4  Special Rules for Survivor
Options:  The following special rules shall apply for the
survivor options available under Section 6.2.

    (a)  Effect of Certain
Deaths:  If a Participant makes an election under Section
6.3(a) to receive his 409A Retirement Pension in the form of an optional Annuity
that includes a benefit for a surviving beneficiary under Section
6.2  and the Participant or his beneficiary (beneficiaries in the case
of the option form of payment in Section 6.2(a)(2)(iv)) dies prior to the
Annuity Starting Date of such Annuity, the election shall be
disregarded.  If the Participant dies after this Annuity Starting Date
but before his 409A Retirement Pension actually commences, the election shall be
given effect and the amount payable to his surviving Eligible Spouse or other
beneficiary shall commence on the first day of the month following his death
(any back payments due the Participant shall be payable to his
estate).  In the case of a Participant who has elected the form of
payment described in Section 6.2(a)(2)(iv), if
such Participant (i) dies after his Annuity Starting Date, (ii) without a
surviving primary or contingent benefi­ciary, and (iii) before receiving 120
payments under the form of payment, then the remaining payments due under such
form of payment shall be paid to the Participant's estate.  If
payments have commenced under such form of payment to a Participant's primary or
contingent beneficiary and such beneficiary dies before payments are completed,
then the remaining payments due under such form of payment shall be paid to such
beneficiary's estate.

     

    
      
        
        

      

      
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    (b)  Non-spouse
Beneficiaries:  If a Participant's beneficiary is not his
Eligible Spouse, he may not elect:

    (1)  The
100 percent survivor option described in Section 6.2(a)(2)(i) if his non-spouse
beneficiary is more than 10 years younger than he is, or

               
(2)  The 75 percent survivor option described in Section 6.2(a)(2)(ii)
if his non-spouse beneficiary is more than 19 years younger than he
is.

    6.5  
 Designation of
Beneficiary:  A Participant who has elected under Section 6.2
to receive all or part of his Retirement Pension in a form of payment that
includes a survivor option shall designate a beneficiary who will be entitled to
any amounts payable on his death.  Such designation shall be made on
the election form used to choose such optional form of payment or an approved
election form filed under the Salaried Plan, whichever is
applicable.  In the case of the survivor option described in Section
6.2(a)(2)(iv), the Participant shall be entitled to name both a primary
beneficiary and a contingent  beneficiary.  A Participant
(whether active or former) shall have the right to change or revoke his
beneficiary designation at any time prior to his
Annuity Starting Date.  The designation of any beneficiary, and any
change or revocation thereof, shall be made in accordance with rules adopted by
the Plan Admin­istrator.  A beneficiary designation shall not be
effective unless and until filed with the Plan Administrator (or for periods
before the Effective Date, the Plan Administrator under the Prior
Plan).  If no beneficiary is properly designated and a Participant
elects a survivor's option described in Section 6.2(a)(2), the Participant's
beneficiary shall be his Eligible Spouse.  A Participant entitled to a
Vested Pension does not have the right or ability to name a beneficiary; if the
Participant is permitted under Section 6.2 to elect an optional form of payment,
then his beneficiary shall be his Eligible Spouse on his Annuity Starting
Date.

     

    
      
        
        

      

      
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    6.6  
 Required Delay
for Key Employees:  Notwithstanding Section 6.1 above, if a
Participant is classified as a Key Employee upon his Separation from Service (or
at such other time for determining Key Employee status as may apply under
Section 409A), then distributions to the Participant shall commence as
follows:

    (a)           Distribution of a Retirement
Pension:  In the case of a Key Employee Participant who is
entitled to a 409A Retirement Pension, distributions shall commence on the
earliest first of the month that is at least six months after the date the
Participant Separates from Service (or, if earlier, the Participant’s
death).  For periods before 2009, commencement of distributions,
however, shall not be delayed under the preceding sentence if the Participant’s
409A Retirement Pension was required to commence at the same time and in the
same form as his pension under the Salaried Plan in accordance with subsection
A.3(b) of Article A of the Appendix.

    (b)           Distribution of a Vested
Pension.  In the case of a Participant who is entitled to a
409A Vested Pension, distributions shall commence as provided in Section 6.1(b),
or if
later, on the earliest first of the month that is at least six months after the
Participant’s Separation from Service (or, if earlier, the Participant’s
death).  For periods before 2009, commencement of distributions,
however, shall not be delayed under the preceding sentence if the Participant’s
409A Vested Pension was required to commence at the same time and in the same
form as his pension under the Salaried Plan in accordance with subsection A.3(b)
of Article A of the Appendix.

     

    
      
        
        

      

      
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    (c)           Interest Paid for
Delay.  Any payments to the Participant that are delayed in
accordance with the provisions of this Section 6.6 shall be accumulated and paid
as a lump sum payment, with interest equal to the rate selected from time to
time by the Plan Administrator ("Specified Rate"), on the date payment occurs in
accordance with subsection (a) or (b) above, whichever is
applicable.  If a Participant’s beneficiary or estate is paid under
subsection (a) or (b) above as a result of his death, then any payments that
would have been made to the Participant and that were delayed in accordance with
the provisions of this Section 6.6 shall be paid as otherwise provided in the
Plan, with interest equal to the Specified Rate paid from the date the
Participant would have commenced his 409A Pension absent the application of this
Section 6.6 until the date of actual payment of such amounts to the
Participant's beneficiary or estate.

    6.7    Payment of FICA and Related
Income Taxes:  As provided in subsections (a) through (c)
below, a portion of a Participant’s 409A Pension shall be paid as a single lump
sum and remitted directly to the Internal Revenue Service (“IRS”) in
satisfaction of the Participant’s FICA Amount and the related withholding of
income tax at source on wages (imposed under Code Section 3401 or the
corresponding withholding provisions of the applicable state, local or foreign
tax laws as a result of the payment of the FICA Amount) and the additional
withholding of income tax at source on wages that is attributable to the
pyramiding of wages and taxes.

    

    
      
        
        

      

      
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    (a)           Timing of
Payment:  As of the date that the Participant’s FICA Amount and
related income tax withholding are due to be deposited with the IRS, a lump sum
payment equal to the Participant’s FICA Amount and any related income tax
withholding shall be paid from the Participant’s 409A Pension and remitted to
the IRS (or other applicable tax authority) in satisfaction of such FICA Amount
and income tax withholding related to such FICA Amount.  The
classification of a Participant as a Key Employee (as defined in Section 2.1(r))
shall have no effect on the timing of the lump sum payment under this subsection
(a).

    (b)           Reduction of 409A
Pension.  To reflect the payment of a Participant’s FICA Amount
and any related income tax liability, the Participant’s 409A Pension shall be
reduced, effective as of the date for payment of the lump sum in accordance with
subsection (a) above, with such reduction being the Actuarial Equivalent of the
lump sum payment used to satisfy the Participant’s FICA Amount and related
income tax withholding.  It is expressly contemplated that this
reduction may occur effective as of a date that is after the date payment of a
Participant’s 409A Pension commences.

    (c)           No Effect on Commencement of
409A Pension.  The Participant’s 409A Pension shall commence in
accordance with the terms of this Plan.  The lump sum payment to
satisfy the Participant’s FICA Amount and related income tax withholding shall
not affect the time of payment of the Participant’s actuarially reduced 409A
Pension, including not affecting any required delay in payment to a Participant
who is classified as a Key Employee.

    

    
      
        
           

        

        
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    ARTICLE
VII

     

    Administration

     

     

    7.1  Authority to Administer
Plan:  The Plan shall be administered by the Plan
Administrator, which shall have the authority to interpret the Plan and issue
such regulations as it deems appropriate.  The Plan Administrator
shall maintain Plan records and make benefit calculations, and may rely upon
information furnished it by the Participant in writing, including the
Participant's current mailing address, age and marital status.  The
Plan Administrator's interpretations, determinations, regulations and
calculations shall be final and binding on all persons and parties
concerned.  The Company, in its capacity as Plan Administrator or in
any other capacity, shall not be a fiduciary of the Plan for purposes of ERISA,
and any restrictions that apply to a party in interest under section 406 of
ERISA shall not apply to the Company or otherwise under the Plan.

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

    7.3  Claims
Procedure:   Any Participant or beneficiary may file a
claim, if he/she believes that he/she has not received his/her full benefits
from this Plan.  If an assertion of any right to a benefit by or on
behalf of a Participant or beneficiary (a "claimant") is wholly or partially
denied, the Plan Administrator, or a party designated by the Plan Administrator,
will provide such claimant within the 90-day period following the receipt of the
claim by the Plan Administrator, a comprehensible written notice setting
forth:

    
      
        
        

      

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

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

    (c)  A
description of any additional material or information necessary for the claimant
to submit to perfect the claim and an explanation of why such material or
information is necessary; and

    (d)  A
description of the Plan's claim review procedure (including the time limits
applicable to such process and a statement of the claimant's right to bring a
civil action under ERISA following a further denial on review).

    If the
Plan Administrator determines that special circumstances require an extension of
time for processing the claim it may extend the response period from 90 to 180
days.  If this occurs, the Plan Administrator will notify the claimant
before the end of the initial 90-day period, indicating the special
circumstances requiring the extension and the date by which the Plan Committee
expects to make the final decision.  The claim review procedure is
available upon written request by the claimant to the Plan Administrator, or the
designated party, within 60 days after receipt by the claimant of written notice
of the denial of the claim.  Upon review, the Plan Administrator shall
provide the claimant a full and fair review of the claim, including the
opportunity to submit to the Plan Administrator comments, document, 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 will be made within 60 days after receipt of the request for
review, unless circumstances warrant an extension of time not to exceed an
additional 60 days.  If this occurs, notice of the extension will be
furnished to the claimant before the end of the initial 60-day period,
indicating the special circumstances requiring the extension 

     

    
      
        
        

      

      
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    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; include specific reasons for
the decision with references to the specific Plan provisions on which the
decision is based; and provide that the claimant is entitled to receive, upon
request and free of charge, reasonable access to, and copies of, all documents,
records, and other information relevant to his or her claim for
benefits.  Any notice or other notification that is required to be
sent to a claimant under this section may be sent pursuant to any method
approved under Department of Labor Regulation Section 2520.104b-1 or other
applicable guidance.

    7.4  Plan Administrator
Discretion:  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 

     

    
      
        
        

      

      
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      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.

    

     

    
 

    
      
        
           

        

        
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    ARTICLE
VIII

     

    Miscellaneous

    
 

    8.1  Nonguarantee of
Employment:  Nothing contained in this Plan shall be construed
as a contract of employment between an Employer and any Employee, or as a right
of any Employee to be continued in the employment of an Employer, or as a
limitation of the right of an Employer to discharge any of its Employees, with
or without cause.

    8.2  Nonalienation of
Benefits:  Benefits payable under the Plan or the right to
receive future benefits under the Plan shall not be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encum­brance,
charge, garnishment, execution, or levy of any kind, either voluntary or
involuntary, and any attempt to anticipate, alienate, sell, transfer, assign,
pledge, encumber, charge or otherwise dispose of any right to benefits payable
hereunder, including any assignment or alienation in connection with a divorce,
separation, child support or similar arrangement, shall be null and void and not
binding on the Company.  The Company shall not in any manner be liable
for, or subject to, the debts, contracts, liabilities, engage­ments or torts
of any person entitled to benefits hereunder.

    8.3 
Unfunded
Plan:  The Company's obligations under the Plan shall not be
funded, but shall constitute liabilities by the Company payable when due out of
the Company's general funds. To the extent the Participant or any other person
acquires a right to receive benefits under this Plan, such right shall be no
greater than the rights of any unsecured general creditor of the
Company.

     

    
      
        
           

        

        
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      8.4  Action by the
Company:  Any action by the Company under this Plan may be made
by the Board of Directors of the Company or by the Compensation Committee of the
Board of
Directors, with a report of any actions taken by it to the Board of
Directors.  In addition, such action may be made by any other person
or persons duly authorized by resolution of said Board to take such
action.

    

    8.5  Indemnification:  Unless
the Board of Directors of the Company shall determine otherwise, the Company
shall indemnify, to the full extent permitted by law, any employee acting in
good faith within the scope of his employment in carrying out the administration
of the Plan.

    8.6 Compliance with Section
409A:

    (a)           General:  It
is the intention of the Company that the Plan shall be construed in accordance
with the applicable requirements of Section 409A.  Further, in the
event that the Plan shall be deemed not to comply with Section 409A, then
neither the Company, the Board of Directors, the Plan Administrator nor its or
their designees or agents shall be liable to any Participant or other person for
actions, decisions or determinations made in good faith.

     

    

    
      
        
           

        

        
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 (b)           Non-duplication of
benefits:  In the interest of clarity, and to determine
benefits in compliance with the requirements of Section 409A, provisions have
been included in this 409A Document describing the calculation of benefits under
certain specific circumstances, for example, provisions relating to the
inclusion of salary continuation during certain window severance programs in the
calculation of Highest Average Monthly Earnings, as specified in Appendix
C.  Notwithstanding this or any similar provision, no duplication of
benefits may at any time occur under the Plan.  Therefore, to the
extent that a specific provision of the Plan provides for recognizing a benefit
determining element (such as pensionable earnings or service) and this same
element is or could be recognized in some other way under the Plan, the specific
provision of the Plan shall govern and there shall be absolutely no
duplicate recognition of such element under any other provision of the Plan, or
pursuant to the Plan’s integration with the Salaried Plan.  This
provision shall govern over any contrary provision of the Plan that might be
interpreted to support duplication of benefits.

    

    
      
        
           

        

        
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    ARTICLE
IX

     

    Amendment and
Termination

     

     

    This
Article governs the Company’s right to amend and or terminate the
Plan.  The Company’s amendment and termination powers under this
Article shall be subject, in all cases, to the restrictions on amendment and
termination in Section 409A and shall be exercised in accordance with such
restrictions to ensure continued compliance with Section 409A.

    9.1  Continuation of the
Plan:  While the Company and the Employers intend to
con­tinue the Plan indefinitely, they assume no contractual obligation as to
its continuance.  In accordance with Section 8.4, the Company hereby
reserves the right, in its sole discretion, to amend, terminate, or partially
terminate the Plan at any time provided, however, that no such amendment or
termination shall adversely affect the amount of benefit to which a Participant
or his beneficiary is already entitled under Article IV on the date of such
amendment or termination, unless the Participant becomes entitled to an amount
of equivalent value to such benefit under another plan or practice adopted by
the Company (using such actuarial assumptions as the Company may apply in its
discretion, and except as necessary to comply with Section
409A).  Specific forms of payment are not protected under the
preceding sentence.

    9.2  Amendments:  The
Company may, in its sole discretion, make any amendment or amendments to this
Plan from time to time, with or without retroactive effect, including any
amendment necessary to ensure continued compliance with Section
409A.  An Employer (other than the Company) shall not have the right
to amend the Plan.

     

     

     

    
      
        
        

      

      
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    9.3  Termination:  The
Company may terminate the Plan, either as to its participation or as to the
participation of one or more Employers.  If the Plan is terminated
with respect
to fewer than all of the Employers, the Plan shall continue in effect for the
benefit of the Employees of the remaining Employers.  Upon
termination, the distribution of Participants' 409A Pensions shall be subject to
restrictions applicable under Section 409A.

    9.4  Change in
Control:  The Company intends to have the maximum discretionary
authority to terminate the Plan and make distributions in connection with a
Change in Control (defined as provided in Section 409A), and the maximum
flexibility with respect to how and to what extent to carry this out following a
Change in Control as is permissible under Section 409A.  The previous
sentence contains the exclusive terms under which a distribution shall be made
in connection with any Change in Control in the case of benefits that are
derived from this 409A Program.

     

    

    
      
        
           

        

        
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    ARTICLE
X

     

    ERISA Plan
Structure

     

     

    This Plan
document in conjunction with the plan document(s) for the Pre-409A Program
encompasses three separate plans within the meaning of ERISA, as are set forth
in subsections (a), (b) and (c).

    (a)  Excess Benefit
Plan:  An excess benefit plan within the meaning of section
3(36) of ERISA, maintained solely for the purpose of providing benefits for
Salaried Plan participants in excess of the limitations on benefits imposed by
section 415 of the Code.

    (b)  Excess Compensation High Hat
Plan:  A plan maintained by the Company primarily for the
purpose of providing deferred compensation for a select group of management or
highly compensated employees within the meaning of sections 201(2) and 401(a)(1)
of ERISA.  This plan provides benefits for Salaried Plan participants
in excess of the limitations imposed by section 401(a)(17) of the Code on
benefits under the Salaried Plan (after taking into account any benefits under
the Excess Benefit Plan).  For ERISA reporting purposes, this portion
of PEP may be referred to as the Yum! Brands Pension Equalization Plan
I.

     

    
      
        
        

      

      
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    (c)  Preservation Top Hat
Plan:  A plan maintained by the Company primarily for the
purpose of providing deferred compensation for a select group of management or
highly compensated employees within the  meaning of sections 201(2)
and 401(a)(1) of ERISA.  This plan preserves benefits for those
Salaried Plan participants described in section 5.2(a) hereof, by preserving for
them the pre-1989 level of benefit accrual that was in effect before January 1,
1989 (after taking into account any benefits under the
Excess Benefit Plan and Excess Compensation Top Hat Plan).  For ERISA
reporting purposes, this portion of PEP shall be referred to as the Tricon
Pension Equalization Plan II.

    Benefits
under this Plan shall be allocated first to the Excess Benefit Plan, to the
extent of benefits paid for the purpose indicated in (a) above; then any
remaining benefits shall be allocated to the Excess Compensation Top Hat Plan,
to the extent of benefits paid for the purpose indicated in (b) above; then any
remaining benefits shall be allocated to the Preservation Top Hat
plan.  These three plans are severable for any and all purposes as
directed by the Company.

     

    

    
      
        
           

        

        
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    ARTICLE
XI

     

    Applicable
Law

     

     

    All
questions pertaining to the construction, validity and effect of the Plan shall
be determined in accordance with the provisions of ERISA.  In the
event ERISA is not applicable or does not preempt state law, the laws of the
state of North Carolina shall govern.

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

    

    
      
        
           

        

        
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    ARTICLE
XII

     

    Signature

     

     

    The above
Plan is hereby adopted and approved, this ______ day of December, 2008 to be
effective as stated herein.

    

    
      	 
      	
              YUM!
      BRANDS, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              By:   ___________________________________

            
	 
      	
              Anne
      Byerlein

            
	 
      	
              Chief
      People Officer

            

    

    

    

    

    

    

    

    

    

    
      
        
           

        

        
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    APPENDIX

    

    Foreword

    

    

    The
following Appendix articles modify particular terms of the
Plan.  Except as specifically modified in the Appendix, the foregoing
main provisions of the Plan shall fully apply in determining the rights and
benefits of Participants and beneficiaries (and of any other individual claiming
a benefit through or under the foregoing).  In the event of a conflict
between the Appendix and the foregoing main provisions of the Plan, the Appendix
shall govern.

    

    
      
        
           

        

        
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    APPENDIX
ARTICLE A

     

    
      
        	
                Transition
      Provisions

                 

              

      

    

    A.1       Scope.

    

    This
Article A provides the transition rules for the Plan that were effective at some
time during the period beginning January 1, 2005 and ending December 31, 2008
(the “Transition Period”).  The time period during which each
provision in this Article A was effective is set forth below

     

    
      	
              A.2

            	
              Definition of
      Actuarial Equivalent.

            

    

     

    In
addition to the provisions provided in Article II for determining actuarial
equivalence under the Plan, during and for the remaining duration of the
Transition Period, to determine the amount of a Pension payable in the form of a
Qualified Joint and Survivor Annuity or optional form of survivor annuity, as an
annuity with inflation protection, or as a Single Life Annuity, the Plan
Administrator used the actuarial factors under the Salaried
Plan.  .

    A.3       Transition Rules for Article
VI (Distributions):

     

    (a)           Distribution of
Pensions:  409A Pensions that would have been paid out during
the Transition Period under the provisions set forth in the main body of the
Plan (but for the application of permissible transition rules under Section
409A) shall be paid out on March 1, 2009.

    (b)           Linked Plan
Distributions: 409A Pensions paid during the Transition Period commenced
at the same time as, and were paid in the same form as, the time and form
elected
by the Participant with respect to his benefit under the Salaried Plan, as
permitted under the applicable transition guidance for Section
409A.  To the extent that payment occurred as described in this
subsection A.3(b), the six-month delay for payment on Separation from Service to
a Key Employee (as described in Section 6.6 of the Plan document) was not
applied, as permitted under the applicable transition guidance for Section
409A.

     

     

    
      
        
        

      

      
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              A.4

            	
              Conformance with
      Section 409A:

            

    

     

    At all
times from and after January 1, 2005, this Plan shall be operated (i) in
accordance with the requirement of Section 409A, and (ii) to preserve the status
of deferrals that were earned and vested before January 1, 2005 as being exempt
from Section 409A, i.e., to preserve the
grandfathered status of such pre-409A deferrals.  Any action that may
be taken (and, to the extent possible, any action actually taken) by the
Company, the Plan Administrator or both shall not be taken (or shall be void and
without effect), if such action violates the requirements of Section 409A or if
such action would adversely affect the grandfather of the pre-409A
deferrals.  If the failure to take an action under the Plan would
violate Section 409A, then to the extent it is possible thereby to avoid a
violation of Section 409A, the rights and effects under the Plan shall be
altered to avoid such violation.  A corresponding rule shall apply
with respect to a failure to take an action that would adversely affect the
grandfather of the pre-409A deferrals.  Any provision in this Plan
document that is determined to violate the requirements of Section 409A or to
adversely affect the grandfather of the pre-409A deferral shall be void and
without effect.  In addition, any provision that is required to appear
in this Plan document to satisfy the requirements of section 409A, but that is
not expressly set forth, shall be deemed to be set forth
herein, and the Plan shall be administered in all respects as if such provision
were expressly set forth.  A corresponding rule shall apply with
respect to a provision that is required to preserve the grandfather of the
pre-409A deferrals.  In all cases, the provisions of this Section A.4
shall apply notwithstanding any contrary provision of the Plan that is not
contained in this Section.  Notwithstanding the foregoing, this
Section A.4 shall not apply after December 31, 2008.

     

    
      
        
        

      

      
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    A.5       Emil
Brolick—19(c):

    

    Under
Q&A-19(c) of IRS Notice 2005-1, the Company permitted Emil Brolick to
irrevocably elect to revise the form of any benefit that he may receive under
the Plan from an annuity to a lump sum payment.  In addition, the
Company permitted Mr. Brolick to irrevocably elect to revise the time of payment
of any benefit that he may receive under the Plan.  Such election to
revise the time or form of payment (or both) must be filed with the Plan
Administrator on or before December 30, 2008.  If so filed, and if
otherwise valid (in the sole discretion of the Plan Administrator), the PEP
benefit for Mr. Brolick will be paid as specified in such election
form.  Otherwise, Mr. Brolick's PEP benefit will be paid as provided
in the Plan.

     

    
      	
              A.6

            	
              Certain 19(c)
      Elections:

            

    

     

    (a)           Company Severance Program
Elections:  In connection with various severance programs, and
pursuant to Q&A-19(c) of IRS Notice 2005-1, the Company unilaterally
designated the distribution of certain PEP kicker benefits during the transition
period under Section 409A.  The time of payment of these amounts was
included in documents provided to the participants in these severance programs
in advance of the commencement of their severance period.

    

    
      
        
           

        

        
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    (b)           2008
Elections:   In connection with various severance
programs, and pursuant to Q&A-19(c) of IRS Notice 2005-1, the Company
permitted certain participants to irrevocably elect to revise the form of (i)
any qualified plan enhancement benefit and (ii) any PEP benefit that they may
receive under the Plan from a default lump sum payment to an
annuity.  In addition, the Company permitted these participants to
irrevocably elect to revise the time of payment of any lump sum distribution for
(i) any qualified plan enhancement benefit, or (ii) any PEP benefit that they
may receive under the Plan.  Such election to revise the time or form
of payment must be filed with the Plan Administrator on or before December 10,
2008.  If so filed, and if otherwise valid (in the sole discretion of
the Plan Administrator), the qualified plan enhancement benefit will be paid as
specified in such election form.  Otherwise, payment of any qualified
plan enhancement benefit will be made in a lump sum on the first day of the
month following the participant's separation from service, subject to any
required delay for Key Employees under section 6.6 of the Plan, and payment of
any PEP benefit shall be made in a lump sum on July 1, 2009.

    

    

    
      
        
           

        

        
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    APPENDIX
ARTICLE B

     

    Computation of Earnings and
Service During Certain Severance Windows

     

     

    B.1           Definitions:

    Where the
following words and phrases, in boldface and underlined, appear in this Appendix
B with initial capitals they shall have the meaning set forth below, unless a
different meaning is plainly required by the context.  Any terms used
in this Article B of the Appendix with initial capitals and not defined herein
shall have the same meaning as in the main Plan, unless a different meaning is
plainly required by the context.

    (a)           “Severance
Program” shall mean a program providing certain severance benefits that
are paid while the program’s participants are on a severance leave of absence
that is determined by the Plan Administrator to qualify for recognition as
Service under Section B.3 and Credited Service under Section B.4 of Article
B.

    (b)           “Eligible
Bonus” shall mean an annual incentive payment that is payable to the
Participant under the Severance Program and that is identified under the terms
of the Severance Program as eligible for inclusion in determining the
Participant’s Highest Average Monthly Earnings.

    B.2           Inclusion of Salary and
Eligible Bonus:

    The Plan
Administrator may specify that, pursuant to a Participant’s participation in a
severance window program provided by the Company, if a Participant receives a
severance benefit pursuant to a Severance Program, all salary continuation and
any Eligible Bonus earned or to be earned during the first 12 months of a leave
of absence period provided to the Participant under such Severance Program will
be counted toward the Participant’s Highest Average Monthly Earnings, even if
such salary or other earnings are to be received after a Participant’s Separation
from Service.  In particular, if payment of a Participant’s 409A
Pension is to be made at Separation from Service and prior to the Participant’s
receipt of all of the salary continuation or Eligible Bonus that is payable to
the Participant from the Severance Program, the Participant’s Highest Average
Monthly Earnings shall be determined by taking into account the full salary
continuation and eligible bonus that is projected to be payable to the
Participant during the first 12 months of a period of leave of absence that is
granted to the Participant under the Severance Program.

    

    
      
        
           

        

        
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    B.3           Inclusion of Credited
Service:

    The Plan
Administrator may specify that, pursuant to a Participant’s participation in a
severance window program provided by the Company, if a Participant receives a
severance benefit under a Severance Program, all Credited Service earned or to
be earned during the first 12 months of the period of severance will be counted
toward the Participant’s Credited Service for purposes of determining the
Participant’s Pension and a Pre-Retirement Spouse’s Pension, even if the period
of time counted as  Credited Service under the Severance Program
occurs after a Participant’s Separation from Service.

    B.4           Inclusion of
Service:

    The Plan
Administrator may specify that, pursuant to a Participant’s participation in a
severance window program provided by the Company, if a Participant receives a
severance benefit under a Severance Program, all Service earned or to be earned
during the first 12 months of the period of severance will be counted toward the
Participant’s Service for purposes of determining the Participant’s Pension and
a Pre-Retirement Spouse’s Pension, even if the period of time counted
as  Service under the Severance Program occurs after a Participant’s
Separation from Service.

    

    
      
        
           

        

        
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    B.5           Reduction to Reflect Early
Payment:

    If the
Participant receives either (1) additional Credited Service or (2) additional
earnings that are included in Highest Average Monthly Earnings under Sections
B.2 or B.3 of this Article B, as a result of a severance benefit provided under
a Severance Program and such additional Credited Service or earnings are
included in the calculation of the Participant’s Pension prior to the time that
the Credited Service is actually performed by the Participant or the earnings
are actually paid to the Participant, the Pension paid to the Participant shall
be adjusted actuarially to reflect the receipt of the portion of the Pension
attributable to such Credited Service or earnings received on account of the
Severance Program prior to the time such Credited Service is performed or such
earnings are actually paid to the Participant.  For purposes of
determining the adjustment to be made, the Plan shall use the rate provided
under the Salaried Plan for early payment of benefits.

    

    

    
      
        
           

        

        
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    APPENDIX
ARTICLE P

     

    Retirement Window
Benefit

     

     

    P.1        Scope:  This
Article P supplements the main portion of the Plan document with respect to the
rights and benefits of Covered Employees.  This Article P is effective
with respect to a particular Covered Employee as of the beginning of the Window
Start Date specified for such Covered Employee in Section P.2(i) of Part B of
the Salaried Plan (definition of “Severance Program”).  This Article P
is effective January 31, 2008.

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

    (a)           Article:  This
Article P of the Appendix to the Plan.

    (b)           Covered
Employee:  A Participant who meets the definition of “Covered
Employee” under Section P.2(b) of Part B of the Salaried Plan.

    (c)           HCE:  A
Covered Employee who is a highly compensated employee within the meaning of Code
section 414(q) on his Separation Date.

    (d)           PEP Bridge
Benefit:  The special PEP benefit that may be provided to a
Covered Employee pursuant to Section P.3.

    (e)           PEP Window
Benefit:  The special Early Retirement Pension that may be
provided to a Covered Employee pursuant to Section P.4.

    (e)           Separation
Date:  The date determined under Section P.2(f) of Part B of
the Salaried Plan.

    (f)           Separation from
Service:  A separation from service within the meaning of Code
section 409A(a)(2)(A)(i).

    

    
      
        
        

      

      
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    (g)           Specified
Employee:  An employee described as a specified employee in
Code section 409A(a)(2)(B)(i).

    P.3        PEP Bridge
Benefit:  A Participant who meets the eligibility requirements
of subsection (a) below may be eligible for a PEP Bridge Benefit from this Plan
in lieu of any other benefit under this Plan, calculated under subsection (b)
below and payable as provided under subsection (c) below.

    (a)           Eligibility:  To
be eligible for a PEP Bridge Benefit under this Section P.3, a Participant
must:

    (1)           Be
a Covered Employee on his Separation Date;

    (2)           Be
not more than 12 months from Retirement Eligibility and have less than 10 Years
of Service on his Separation Date;

    (3)           Be
granted a special Authorized Leave of Absence for purposes of attaining
Retirement Eligibility under Part B of the Salaried Plan; and

    (4)           Be
entitled to a benefit under the Plan without regard to this Article
P.

    A
Participant’s period of time from attaining Retirement Eligibility shall be
equal to the additional period of continuous employment by an Employer in an
eligible classification that would be required, from and after the Participant’s
Separation Date, for the Participant to first reach Retirement
Eligibility.

    (b)           Calculation of PEP Bridge
Benefit:  A Covered Employee’s PEP Bridge Benefit under this
subsection (b), expressed as a Single Life Annuity payable at the Covered
Employee’s commencement date, shall be equal to: (i) the benefit amount
calculated under paragraph (1) below, plus (ii) the benefit
amount calculated under paragraph (2) below.

    

    

    
      
        
        

      

      
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    (1)           Deferred Vested
Pension.  The benefit amount under this paragraph shall be the
Vested Pension to which the Covered Employee is entitled under Section 5.1 of
the Plan, without regard to this Article or the additional Service and
Compensation credited to the Covered Employee under Part B of the Salaried Plan
as a result of being granted a special Authorized Leave of
Absence.  Such Vested Pension shall be expressed initially as a Single
Life Annuity commencing at the Covered Employee’s Normal Retirement Date, and
then this annuity shall be reduced to an Actuarial Equivalent Single Life
Annuity for commencement prior to the Covered Employee’s Normal Retirement
Date.

    (2)           Additional PEP Bridge
Benefit.  The amount calculated under this paragraph shall
equal (i) the amount calculated under paragraph (3) below, minus (ii) the amount
calculated under paragraph (1) above.

    (3)           PEP Retirement
Benefit.  The benefit amount under this paragraph shall be the
PEP benefit that would be payable to the Covered Employee if his benefit was
calculated as an Early or Normal Retirement Pension (whichever the Covered
Employee becomes eligible for under Part B of the Salaried Plan as a result of
being granted a special Authorized Leave of Absence) in accordance with the
usual provisions of the Plan for an Early or Normal Retirement Pension (as
applicable), taking into account the additional Service and Compensation
credited to the Covered Employee under Part B of the Salaried Plan as a result
of being granted a special Authorized Leave of Absence.  This monthly
benefit shall be expressed initially as a Single Life Annuity commencing at the
Covered Employee’s
Normal Retirement Date, and shall be reduced for commencement prior to age 62 in
accordance with the terms of the main portion of the Plan.

    

    
      
        
           

        

        
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    (c)           Commencement and Payment of
PEP Bridge Benefit:  A PEP Bridge Benefit payable to a Covered
Employee under this Section P.3 shall be payable as follows:

    (1)           Additional PEP Bridge
Benefit:  The additional PEP Bridge Benefit payable to a
Covered Employee solely as a result of this Article, which is subject to Code
section 409A because it is earned and vested after December 31, 2004, shall be
paid in accordance with the Plan’s rules for Retirement Pensions that are
subject to Code section 409A, i.e., as a single lump sum on
the first of the month coincident or next following the date the Covered
Employee would have attained Retirement Eligibility (within the meaning of
Section P.2(e) of Part B of the Salaried Plan) without regard to this Article if
the Covered Employee had remained continuously employed in an eligible
classification.  However, if the Covered Employee has made an election
for a different time and/or form of payment for the portion of his benefit that
is subject to Code section 409A, then the portion of the Covered Employee’s PEP
Bridge Benefit described in this paragraph shall be paid in accordance with such
election.

    (2)           Other PEP
Benefit:  The portion of the Covered Employee’s PEP Bridge
Benefit that would be payable to the Covered Employee without regard to this
Article (and that is composed of a Pre-409A Retirement Pension and 409A Vested
Pension) shall be paid as follows:

    (A)           Pre-409A Retirement
Pension:  The portion of the Covered Employee’s benefit that is
not subject to Code section 409A because it was
accrued and vested prior to January 1, 2005, shall be paid as a Retirement
Pension in accordance with Section 6.1 of the main portion of the Plan document
for pre-409A benefits.

    

    
      
        
           

        

        
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    (B)           409A Vested
Pension:  The portion of the Covered Employee’s benefit that is
subject to Code section 409A because it was earned or vested after December 31,
2004, shall be paid as a Vested Pension, i.e., as a Single Life
Annuity if the participant is unmarried at commencement or a 50% Joint and
Survivor Annuity if the participant is married at commencement, unless the
married participant elects either a 75% Joint and Survivor Annuity or a Single
Life Annuity (all annuities under this paragraph shall be calculated without
regard to the Plan’s former simplified factors), and shall commence on the first
of the month coincident or next following the later of: (i) the Covered
Employee’s Separation from Service, or (ii) the date the Covered Employee
attains age 55.  Any election by a married Covered Employee under the
preceding sentence to receive a 75% Joint and Survivor Annuity or Single Life
Annuity shall be made on or before the day preceding the Covered employee’s
commencement date as determined under the preceding sentence (or if applicable,
under paragraph (3) below).  Notwithstanding the foregoing, if a
Covered Employee has irrevocably executed the release described in Section
P.2(b)(4) of Part B of the Salaried Plan by December 31, 2008, and payment under
this paragraph would not be due by such date,
then this portion of the Covered Employee’s PEP Bridge Benefit shall be paid as
a single lump sum on April 1, 2009.

    

    
      
        
           

        

        
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    (3)           Payment Delay for Specified
Employees:  Notwithstanding paragraphs (1) and (2) above or any
other provision of this Article P or the Plan to the contrary, in the case of a
Covered Employee who is a Specified Employee, any portion of the Covered
Employee’s PEP Bridge Benefit that is subject to Code section 409A and that is
paid upon the Covered Employee’s Separation from Service shall not be paid prior
to the first day of the seventh month that begins after the Covered Employee’s
Separation from Service.

    P.4           PEP Window
Benefit:  Any Covered Employee who meets the eligibility
requirements of subsection (a) below may be eligible for a PEP Window Benefit
from this Plan, in lieu of any other benefit under this Plan.  Such
PEP Window Benefit (if any) shall be calculated as provided in subsection (b)
below and shall be paid as provided in subsection (c) below.

    (a)           Eligibility:  To
be eligible for a PEP Window Benefit under this Section P.4, a Participant
must:

    (1)           Be
a Covered Employee on his Separation Date,

    (2)           Be
an HCE on his Separation Date, and

    (3)           Satisfy
the eligibility requirement set forth in Section P.3(a)(2) of Part B of the
Salaried Plan.

    (b)           Calculation of PEP Window
Benefit:  The PEP Window Benefit of a Covered Employee who
satisfies the eligibility provisions of subsection (a) above shall be calculated
under Section 5.1 of the main portion of the Plan by taking into account, for
purposes of determining the Covered Employee’s Total Pension under Section
5.1(c)(1), the
provisions of Section P.3 of Part B of the Salaried Plan, but without regard to
the fact that such section ordinarily does not apply to a Covered Employee who
is an HCE.  For purposes of the calculation under Section 5.1, it
shall be assumed that the Covered Employee’s PEP Window Benefit is all paid at
the time the Qualified Kicker described in subsection (c) below is
paid.

    

    
      
        
           

        

        
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    (c)           Commencement and Payment of
PEP Window Benefit:  A PEP Window Benefit payable to a Covered
Employee under this Section P.4 shall be payable as follows:

    (1)           Qualified Kicker
Only:  In the case of a Covered Employee who is only eligible
for a benefit under the Plan as a consequence of this Article being included in
the Plan, such a Covered Employee’s PEP Window Benefit shall be considered a
“Qualified Kicker” and shall be paid as follows:

    (A)           General
Rule.  Except as provided in subparagraph (B) below, a Covered
Employee’s Qualified Kicker shall be paid as a single lump sum as of the first
of the month next following the date that is 10 weeks after the date of the
Covered Employee’s Separation from Service.

    (B)           Special Rule for Taco Bell
Severance Program for the Q4 2007 Restructuring.  The Qualified
Kicker of a Covered Employee whose Separation Date occurs as a direct result of
the Taco Bell Severance Program for the Q4 2007 Restructuring shall be paid as a
single lump sum on the first of the month next following the date that is 12
weeks after the date of the Covered Employee’s Separation from
Service.

    

    
      
        
           

        

        
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    (2)           Other PEP
Benefit:  In the case of a Covered Employee who would be
eligible for a benefit under the Plan without regard to this Article, such a
Covered Employee’s PEP Window Benefit shall be payable as provided in this
subsection.

    (A)           Qualified
Kicker:  The portion of such a Covered Employee’s PEP Window
Benefit, which replaces the additional benefit that would have been paid under
the Salaried Plan if Section P.3 of Part B of the Salaried Plan applied to a
Covered Employee who is an HCE, shall be his Qualified Kicker and shall be paid
as provided in paragraph (1) above.

    (B)           Pre-409A Vested
Pension:  The portion of such a Covered Employee’s PEP Window
Benefit, which is not subject to Code section 409A because it accrued and vested
prior to January 1, 2005, and which would be payable to such Covered Employee
without regard to this Article, shall be paid as a Vested Pension, i.e., as an annuity at the
same time and in the same form as the Covered Employee’s annuity benefit under
the Salaried Plan.  Notwithstanding the preceding sentence, if a
Covered Employee has irrevocably executed the release described in Section
P.2(b)(4) of Part B of the Salaried Plan by December 31, 2008, and payment under
this paragraph would not be due by such date, then this portion of the Covered
Employee’s PEP Window Benefit shall be paid as a single lump sum on April 1,
2009 (in which case this portion of the Covered Employee’s PEP Window Benefit
shall become subject to Code section 409A).

    

    
      
        
           

        

        
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    (C)           409A Vested
Pension:  The portion of such a Covered Employee’s PEP Window
Benefit, which is subject to Code section 409A and which would be payable to
such Covered Employee without regard to this Article, shall be paid as a Vested
Pension, i.e., as an
annuity at the same time and in the same form as the Covered Employee’s annuity
benefit under the Salaried Plan.  However, if the Covered Employee’s
Salaried Plan annuity has not commenced by December 31, 2008, then the benefit
described in this paragraph shall be paid as a Single Life Annuity if the
Covered Employee is unmarried at commencement and as a 50% Joint and Survivor
Annuity if the Covered Employee is married at commencement, unless the married
Covered Employee elects to receive either a 75% Joint and Survivor Annuity or a
Single Life Annuity (all annuities under this paragraph shall be calculated
without regard to the Plan’s former simplified factors), and shall commence on
the first of the month coincident with or next following the latest
of:  (i) January 1, 2009, (ii) the Covered Employee’s Separation from
Service, or (iii) the date the Covered Employee attains age 55.  Any
election by a married Covered Employee under the preceding sentence to receive a
75% Joint and Survivor Annuity or Single Life Annuity shall be made on or before
the day preceding the Covered employee’s commencement date as determined under
the preceding sentence (or if applicable, under paragraph (3)
below).  Notwithstanding the foregoing, if such Covered Employee has
irrevocably executed the release described in Section P.2(b)(4) of Part B of the
Salaried Plan by December 31, 2008, and payment under this paragraph would not
be due by such date, then such Covered Employee’s benefit that is described in
this paragraph shall be paid as a single lump sum on April 1, 2009.

    

    
      
        
           

        

        
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     (D)           PEP
Kicker:  The remaining portion of such a Covered Employee’s PEP
Window Benefit shall be his “PEP Kicker” and shall be paid in accordance with
the Plan’s rules for Retirement Pensions that are subject to Code section 409A,
i.e., as a single lump
sum as of the first of the month next following when the Covered Employee would
have attained Retirement Eligibility (within the meaning of Section P.2(e) of
Part B of the Salaried Plan) if the Covered Employee had remained continuously
employed by the Employer in an eligible classification.  However, if
the Covered Employee has made an election for a different form and/or time of
payment for the portion of his benefit that is subject to Code section 409A,
then the Covered Employee’s PEP Kicker shall be paid in accordance with such
election. Notwithstanding the foregoing, if such Covered Employee has
irrevocably executed the release described in Section P.2(b)(4) of Part B of the
Salaried Plan by December 31, 2008, and payment under this paragraph would not
be due by such date, then such Covered Employee’s PEP Kicker shall be paid as a
single lump sum on April 1, 2009.

    (3)           Payment Delay for Specified
Employees:  Notwithstanding paragraphs (1) and (2) above or any
other provision of this Article P or the Plan to the contrary, in the
case of a Covered Employee who is a Specified Employee, any portion of the
Covered Employee’s PEP Window Benefit that is subject to Code section 409A and
that is paid upon the Covered Employee’s Separation from Service, shall not be
paid prior to the first day of the seventh month that begins after the Covered
Employee’s Separation from Service.

    

    
      
        
           

        

        
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    (d)           Calculation of PEP Window
Benefit Components:  The components of a Covered Employee’s PEP
Window Benefit described in Section P.4(c)(1) or (2) above (as applicable) shall
be calculated (using the actuarial assumptions under Section 2.1(b)(2) of Part B
of the Salaried Plan) as follows:

    (1)           PEP Benefit Without Regard
to this Article:  This portion of a Covered Employee’s PEP
Window Benefit shall be calculated by determining the Covered Employee’s total
PEP benefit under Section 5.1 of the Plan, disregarding the provisions of this
Article and then dividing this total benefit into the Pre-409A Vested Benefit
and 409A Vested Benefit portions using the Plan’s usual rules for computing the
grandfathered and 409A portions of a Participant’s benefit.

    (2)           Qualified
Kicker:  A Covered Employee’s Qualified Kicker shall be
calculated under the terms of Section P.3(b)(2) of Part B of the Salaried Plan,
but without regard to the fact that this section ordinarily does not apply to a
Covered Employee who is an HCE.  Notwithstanding the preceding
sentence, the Qualified Kicker of a Covered Employee whose Separation Date
occurs as a direct result of the Taco Bell Severance Program for the Q4 2007
Restructuring shall be reduced by the value of any weeks of severance pay in
excess of 12 weeks that are payable to such Covered Employee in connection with
the Restructuring.

    

    
      
        
           

        

        
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    (3)           PEP
Kicker:  A Covered Employee’s PEP Kicker (expressed as a Single
Life Annuity payable on the Covered Employee’s applicable commencement date)
shall equal:  (i) the total PEP Window Benefit as calculated under
subsection (b) above (expressed as a Single Life Annuity payable on the Covered
Employee’s applicable commencement date); minus (ii) the total
PEP benefit without regard to this Article (i.e., the sum of his Pre-409A
Vested Pension and 409A Vested Pension) as calculated under paragraph (1) above
(expressed as a Single Life Annuity payable on the Covered Employee’s applicable
commencement date); and minus (iii) the
Qualified Kicker, but for purposes of this paragraph (3), calculated without
regard to the second sentence of paragraph (2) above (expressed as a Single Life
Annuity payable on the Covered Employee’s applicable commencement
date).  The resulting PEP Kicker shall be converted to the Covered
Employee’s applicable form of payment for the PEP Kicker using the Plan’s usual
factors for converting forms of payment.

    

    

    
      
        
           

        

        
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    APPENDIX ARTICLE
Q

     

    Australian
Participants

     

    

    Q.1       Scope:  This
Article provides special rules for calculating the benefit of an Australian
Participant, and these rules are the exclusive basis for an Australian Employee
to become entitled to a benefit from the Plan.  The benefit of an
Australian Participant shall be determined under Section Q.3 below, subject to
Section Q.4 below.  Once a benefit is determined for an Australian
Participant under this Article, such benefit shall be subject to the Plan’s
normal conditions and shall be paid in accordance with the Plan’s normal
terms.  This Article is effective  January 1, 2005 and
applies to all accruals that are subject to Code section 409A, including those
accrued prior to January 1, 2005.

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

    (a)           Article:  This
Article Q of the Appendix to the Plan.

    (b)           Australian
Employee:  An individual (i) who became employed in the United
States by an United States Employer in an executive position prior to January 1,
2008, (ii) who was previously employed by the Company or an affiliate of the
Company in Australia, and (iii) on whose behalf the United States Employer
(directly or indirectly) makes Superannuation Contributions during any part of
the period that he is employed as described in clause (i) above.

    (c)           Australian
Participant:  An Australian Employee shall not become a
Participant under this Plan until the earlier of (i) the day after he stops
receiving Superannuation Contributions
that are taken into account under subsection (d) below, or (ii) his last day of
employment that is described in subsection (b)(i) above.  From and
after such day, an Australian Employee shall be a Participant:

     

     

    
      
        
        

      

      
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    (1)  When
he would be currently entitled to receive a Pension under the Plan if his
employment terminated at such time, or

    (2)  When
he would be so entitled but for the vesting requirement of Section
4.7.

    Notwithstanding
the foregoing provisions of this subsection, an Australian Employee shall not
become a Participant under this Plan if he enters into a qualifying written
agreement with the Company to forgo a Pension under this Plan and the Salaried
Plan for his period of employment described in subsection (b)(i)
above.  A written agreement that is otherwise described in the
preceding sentence shall not be a qualifying written agreement for the period
before the earliest date such agreement may apply without violating the
restrictions on elections under Code section 409A.

    (d)           Superannuation
Contributions:  Contributions to the Australian federal
government’s compulsory retirement savings system into which an employer is
required to contribute on behalf of a qualifying employee, over the course of
each year, an amount that is at least equal to a specified minimum percentage of
the employee’s annual compensation, and that permits certain additional
contributions (but disregarding such required or additional contributions that
are made after an individual is no longer considered an Australian Employee as a
result of ceasing current employment in the United States).

    Q.3       Benefit Formula for
Australian Employees:  Except as provided in this Section Q.3,
an Australian Participant’s benefit shall be determined using a calculation
methodology that is substantially
similar to that applicable under Section 5.1 of the
Plan.  Notwithstanding the preceding sentence, the Australian
Participant’s “Total Pension” (as defined in Section 5.1(c)(1)) shall be
calculated as if:

     

    
      
        
        

      

      
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    (a)           The
Australian Participant began receiving Credited Service under the Salaried Plan
on his first day of employment as an executive in the United States with a
United States Employer; and

    (b)           The
Australian Participant ceased receiving Credited Service under the Salaried Plan
at the end of his period of employment as an executive in the United States with
a United States Employer;

    Without
regard, in each case, to the actual date on which the Australian Participant
began and ceased receiving Credited Service under the Salaried
Plan.  Notwithstanding the first sentence of this Section Q.3, such
Australian Participant’s benefit shall be calculated by subtracting from his
Total Pension (expressed as a lump sum amount as of his benefit commencement
date under the Plan) the sum of:  (i) the Australian Employee’s actual
benefit under the Salaried Plan (expressed as a lump sum amount as of such
date), plus
(ii) the total Superannuation Contributions made on behalf of the Australian
Employee while employed in the United States by a United States Employer,
adjusted for interest through such date at an annual rate of 7 percent,
compounded annually.

    Q.4       Alternative Arrangements
Permitted:  Notwithstanding any provision of this Article to
the contrary, the Company and an Australian Employee may agree in writing to
disregard the provisions of this Article in favor of another mutually agreed
upon benefit arrangement under the Plan, in which case this Article shall not
apply.

     

    
      80exhib10_17-1.htm

  

    YUM! CHANGE IN CONTROL
SEVERANCE AGREEMENT

    409A
Addendum

    
 

    THIS
AGREEMENT, dated December 31, 2008, (the "409A Agreement") is made by and
between YUM! Brands Inc., a North Carolina corporation (the Company"), and
___________________ (the "Executive").

    WHEREAS,
the Company and the Executive have previously entered into a change in control
severance agreement (the “Severance Agreement”); and

    WHEREAS,
the Company and the Executive wish to ensure that the Severance Agreement
complies to the extent necessary with Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”), and thereby to avoid adverse tax consequences
to the Executive (including avoiding an additional tax of 20% on compensation
payable under the Severance Agreement); and

    WHEREAS,
ensuring Code Section 409A compliance requires the addition of certain
provisions to the Severance Agreement;

    NOW,
THEREFORE, in consideration of the pre­mises and the mutual covenants herein
contained, the Company and the Executive hereby agree as follows:

    1.           The
provisions of this 409A Agreement supplement the provisions of the Severance
Agreement.  At all times, this 409A Agreement and the Severance
Agreement shall be construed together so as to permit full compliance with Code
Section 409A of any compensation subject to Code Section 409A that is provided
by the Severance Agreement.

    2.           With
respect to salary, compensation and benefits provided by the Severance Agreement
in the event the Executive fails to perform the Executive's full-time duties
with the Company as a result of incapacity due to physical or mental illness, to
the extent these items constitute deferred compensation that is subject to
Section 409A, the payment of such salary, compensation and benefits shall occur
upon Executive’s "disability" or "separation from service", in each case as
defined in Section 409A, whichever occurs earlier (but subject to Section
16(A)).  In this case, the rate of payment shall be based on the
normal rules for the salary, compensation or benefit in question, with a lump
sum catch up for any amounts that would have been paid previously under such
rules.

    

    
      
        
        

      

      
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    3.           With
respect to the Company’s payment of the Execu­tive's full salary to the
Executive through the Date of Termination (as defined in the Severance
Agreement) in the event the Executive's employment shall be terminated for any
reason following a Change in Control (as defined in the Severance Agreement) and
during the term of the Severance Agreement, to the extent any resulting salary,
compensation and benefits constitute deferred compensation that is subject to
Section 409A, the payment of such salary, compensation and benefits shall occur
upon Executive’s "separation from service", as defined in Section 409A, but
subject to Section 16(A).  In this case, the rate of payment shall be
based on the normal rules for the salary, compensation or benefit in question,
with a lump sum catch up for any amounts that would have been paid previously
under such rules.

    4.           In
the event that Severance Payments (as defined in the Severance Agreement) shall
be reduced pursuant to the terms of the Severance Agreement, then Severance
Payments shall be reduced in the order that the Severance Payments are described
in the Severance Agreement (but disregarding for this purpose any Severance
Payments that would not be considered “parachute payments” under the provisions
and procedures of the Severance Agreement) and to the extent necessary so that
no portion of the Total Payments will be subject to the Excise Tax (as these
capitalized terms are defined in the Severance Agreement).

    5.           To
the extent the Company pays to the Executive, pursuant to the Severance
Agreement, an estimate of the minimum amount of pay­ments to which the
Executive is entitled and the amount of the estimated payments exceeds the
amount subsequently determined to have been due, such excess shall be repaid to
the Company promptly thereafter (together with interest at 120% of the rate
provided in section 1274(b)(2)(B) of the Code).  Each payment required
to be made by the Company to the Executive hereunder that relates to the Excise
Tax and each repayment required to be made by the Executive to the Company in
accordance with the preceding sentence shall in no event be paid later than the
end of the calendar year next following the calendar year in which the Executive
(or the Company on the Executive’s behalf) remits the corresponding taxes to the
Internal Revenue Service or other taxing authority.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    6.           To
the extent the Company is to pay the Execu­tive for legal fees and expenses
incurred by the Execu­tive (i) in disputing in good faith any issue under
the Severance Agreement relating to the termination of the Executive's
employ­ment, or (ii) in seeking in good faith to obtain or enforce any
benefit or right provided by the Severance Agreement, or (iii) in
connec­tion with any tax audit or proceeding to the extent attributable to
the application of section 4999 of the Code to any payment or benefit provided
hereunder (the “Legal Expenses”), such  Legal Expenses must be
incurred during the period (A) beginning on the commencement date of the
Severance Agreement and, (B) ending on the date that is five years after the
Date of Termination of the Executive.  The amount of Legal Expenses
that are eligible for reimbursement during an Executive’s taxable year may not
affect the Legal Expenses eligible for reimbursement in any other taxable
year.   Such payments shall be made within ten (10) business days
after delivery of the Executive's written requests for payment accompanied with
such evidence of fees and ex­penses incurred as the Company reasonably may
require; provided, however, that in no event will the reimbursement of any Legal
Expenses be made after the last day of the Executive’s taxable year following
the Executive’s taxable year in which the Legal Expense in question was
incurred.  The right to reimbursement of Legal Expenses provided
hereunder is not subject to liquidation or exchange for another
benefit.

    7.           If
a pur­ported termination occurs following a Change in Control and during the
term of the Severance Agreement and the Executive provides the Company with a
Dispute Notification (as defined in the Severance Agreement),  subject
to providing all payments in compliance with Code Section 409A and avoiding all
duplication of payment, the Company shall act within fifteen (15) days to
restore fully the disputed benefits (so that all benefits are provided as of
such date as would have been provided had there been no delay in providing such
benefits) and to continue to provide such benefits as contemplated by this
Agreement thereafter, but subject to termination and recapture from the
Executive of these disputed benefits in accordance with the terms of a mutual
written agreement of the parties, a binding arbitration award, or a final
judgment, order or decree of a court of competent jurisdiction (which is not
appealable or with respect to which the time for appeal therefrom has expired
and no appeal has been perfected).

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    8.           Notwithstanding
any other provision of this 409A Agreement or the Severance Agreement, to the
extent the Company determines in good faith that (i) one or more payments or
benefits received or to be received by the Executive pursuant to the Severance
Agreement (including but not limited to the Gross-Up Payment) would constitute
deferred compensation subject to the rules of Code Section 409A, and (b) that
the Executive is a "specified employee" under Code Section 409A, then only to
the extent required to avoid the Executive’s incurrence of any additional tax or
interest under Section 409A, such payment or benefit will be delayed until the
date that is six (6) months after the Executive’s "separation from service"
within the meaning of Section 409A.  Any amounts that are postponed
pursuant to this Section 8 will be paid in a lump sum payment within 10 days
after the end of the six-month period.  If the Executive dies during
the six-month period, prior to the payment of the delayed amount, the amounts
delayed on account of this Section 8 will be paid to the Executive’s
estate.  In addition, to the extent the Company determines in good
faith that one or more payments or benefits received or to be received by an
Executive upon a termination of employment pursuant to the Agreement would
constitute deferred compensation subject to the rules of Code Section 409A then
in determining the time of payment of such deferred compensation a termination
of employment shall be deemed to occur only if such termination of employment
constitutes a "separation from service" as defined in Code Section 409A, as
determined by the Company in accordance with such rules and policies adopted by
it from time to time.  Further, in this case, the Date of Termination
shall be the date of such separation from service.

    9.           This
409A Agreement shall be delivered to the Executive in advance of December 31,
2008. To permit timely and sufficient documentary compliance with Code Section
409A, the provisions of this 409A Agreement shall automatically apply to amend
the Severance Agreement unless the Executive expressly rejects the application
of these provisions in writing.   However, to provide an enhanced
record of documentary compliance with Code Section 409A, the Company requests
that the Executive sign and return a copy of this Agreement to the Company at
his/her earliest convenience.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    

    

    

    

    

    

    
      	 
      	
              YUM! BRANDS,
      INC.

            
	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	
              Name:

            	
              John
      P. Daly

            
	 
      	
              Title:

            	
              Corporate
      Counsel and Assistant Secretary

            
	 
      	 
      
	 
      	 
      
	 
      	
              [name]

            

    

    

    5

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