Document:

exhib10_7-1.htm

  
    
      
 

    

    
       

      
        
          
            	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	
                    YUM!
      BRANDS

                  
	 
      
	
                    DIRECTOR
      DEFERRED

                  
	
                    COMPENSATION
      PLAN

                  
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	
                    Plan
      Document for the 409A Program

                  
	
                    Amended
      and Restated Effective as of January 1, 2005

                  
	
                    (with
      Revisions through November 14, 2008)

                  
	 
      
	 
      
	 
      
	 
      

          

        

      

      
 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        
          
            
              
                
                  	
                          TABLE OF CONTENTS

                        
	 
      	
                          Page

                        
	
                          ARTICLE I – INTRODUCTION

                        	
                          1

                        
	
                          ARTICLE II – DEFINITIONS

                        	
                          2

                        
	
                          2.01

                        	
                          Account:

                        	
                          2

                        
	
                          2.02

                        	
                          Act:

                        	
                          2

                        
	
                          2.03

                        	
                          Annual Retainer:

                        	
                          2

                        
	
                          2.04

                        	
                          Beneficiary:

                        	
                          2

                        
	
                          2.05

                        	
                          Code:

                        	
                          2

                        
	
                          2.06

                        	
                          Company:

                        	
                          3

                        
	
                          2.07

                        	
                          Compensation Year:

                        	
                          3

                        
	
                          2.08

                        	
                          Deferral Subaccount:

                        	
                          3

                        
	
                          2.09

                        	
                          Director:

                        	
                          3

                        
	
                          2.10

                        	
                          Director Compensation:

                        	
                          3

                        
	
                          2.11

                        	
                          Disability:

                        	
                          3

                        
	
                          2.12

                        	
                          Distribution Valuation
Date:

                        	
                          4

                        
	
                          2.13

                        	
                          Election Form:

                        	
                          4

                        
	
                          2.14

                        	
                          Eligible Director:

                        	
                          4

                        
	
                          2.15

                        	
                          ERISA:

                        	
                          4

                        
	
                          2.16

                        	
                          Fair Market Value:

                        	
                          4

                        
	
                          2.17

                        	
                          409A Program:

                        	
                          5

                        
	
                          2.18

                        	
                          Initial Retainer:

                        	
                          5

                        
	
                          2.19

                        	
                          Key Employee:

                        	
                          5

                        
	
                          2.20

                        	
                          Participant:

                        	
                          6

                        
	
                          2.21

                        	
                          Plan:

                        	
                          6

                        
	
                          2.22

                        	
                          Plan Administrator:

                        	
                          6

                        
	
                          2.23

                        	
                          Plan Year:

                        	
                          6

                        
	
                          2.24

                        	
                          Pre-409A Program:

                        	
                          6

                        
	
                          2.25

                        	
                          Second Look Election:

                        	
                          6

                        
	
                          2.26

                        	
                          Section 409A:

                        	
                          6

                        
	
                          2.27

                        	
                          Separation from Service:

                        	
                          7

                        
	
                          2.28

                        	
                          Specific Payment Date:

                        	
                          7

                        
	
                          2.29

                        	
                          Unforeseeable Emergency:

                        	
                          7

                        
	
                          2.30

                        	
                          Valuation Date:

                        	
                          8

                        
	
                          2.31

                        	
                          YUM! Brands Organization:

                        	
                          8

                        
	
                          ARTICLE III – ELIGIBILITY AND
      PARTICIPATION

                        	
                          9

                        
	
                          3.01

                        	
                          Eligibility to Participate:

                        	
                          9

                        
	
                          3.02

                        	
                          Termination of Eligibility to
      Defer:

                        	
                          9

                        
	
                          3.03

                        	
                          Termination of
    Participation:

                        	
                          9

                        

                

              

            

          

        

      

    

    
      
         

      

      
        -i- 

        
          

        

      

      
         

      

    

    

    

    
      
        	
                TABLE OF CONTENTS

              
	
                 
      

              	
                Page

              
	
                ARTICLE IV – DEFERRAL OF
      COMPENSATION

              	
                10

              
	
                4.01

              	
                Deferral Election:

              	
                10

              
	
                4.02

              	
                Time and Manner of Deferral
      Election:

              	
                10

              
	
                4.03

              	
                Period of Deferral; Form of
      Payment:

              	
                11

              
	
                4.04

              	
                Second Look Election:

              	
                12

              
	
                4.05

              	
                Deferral of Initial
Retainer

              	
                14

              
	
                ARTICLE V – INTERESTS OF
      PARTICIPANTS

              	
                16

              
	
                5.01

              	
                Accounting for Participants’
      Interests:

              	
                16

              
	
                5.02

              	
                Phantom Investment of
    Account:

              	
                16

              
	
                5.03

              	
                Vesting of a Participant’s
      Account:

              	
                17

              
	
                ARTICLE VI – DISTRIBUTIONS

              	
                18

              
	
                6.01

              	
                General:

              	
                18

              
	
                6.02

              	
                Distributions Based on a Specific Payment
      Date:

              	
                18

              
	
                6.03

              	
                Distributions on Account of a Separation from
      Service:

              	
                19

              
	
                6.04

              	
                Distributions on Account of
      Death:

              	
                21

              
	
                6.05

              	
                Distributions on Account of Unforeseeable
      Emergency:

              	
                22

              
	
                6.06

              	
                Distributions of Initial
      Retainers:

              	
                22

              
	
                6.07

              	
                Valuation:

              	
                23

              
	
                6.08

              	
                Impact of Section 16 of the Act on
      Distributions:

              	
                23

              
	
                6.09

              	
                Actual Payment Date:

              	
                24

              
	
                ARTICLE VII – PLAN
      ADMINISTRATION

              	
                25

              
	
                7.01

              	
                Plan Administrator:

              	
                25

              
	
                7.02

              	
                Action:

              	
                25

              
	
                7.03

              	
                Powers of the Plan
      Administrator:

              	
                25

              
	
                7.04

              	
                Compensation, Indemnity and
      Liability:

              	
                26

              
	
                7.05

              	
                Withholding:

              	
                27

              
	
                7.06

              	
                Section 16 Compliance:

              	
                27

              
	
                7.07

              	
                Conformance with Section
    409A:

              	
                28

              
	
                ARTICLE VIII – CLAIMS
    PROCEDURE

              	
                29

              
	
                8.01

              	
                Claims for Benefits:

              	
                29

              
	
                8.02

              	
                Appeals of Denied Claims:

              	
                29

              
	
                8.03

              	
                Special Claims Procedures for Disability
      Determinations:

              	
                29

              
	
                ARTICLE IX – AMENDMENT AND
      TERMINATION

              	
                30

              
	
                9.01

              	
                Amendment of Plan:

              	
                30

              
	
                9.02

              	
                Termination of Plan:

              	
                30

              

      

    

    
      
         

      

      
        -ii- 

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  TABLE OF CONTENTS

                
	 
      	
                  Page

                
	
                  ARTICLE X – MISCELLANEOUS

                	
                  31

                
	
                  10.01

                	
                  Limitation on Participant's
      Rights:

                	
                  31

                
	
                  10.02

                	
                  Unfunded Obligation of the
      Company:

                	
                  31

                
	
                  10.03

                	
                  Other Plans:

                	
                  31

                
	
                  10.04

                	
                  Receipt or Release:

                	
                  31

                
	
                  10.05

                	
                  Governing Law:

                	
                  31

                
	
                  10.06

                	
                  Gender, Tense and Examples:

                	
                  32

                
	
                  10.07

                	
                  Successors and Assigns; Nonalienation of
      Benefits:

                	
                  32

                
	
                  10.08

                	
                  Facility of Payment:

                	
                  32

                
	
                  ARTICLE XI – AUTHENTICATION

                	
                  33

                
	 
      	 
      	 
      

        

      

    

    

     

    

    

    
      
         

      

      
        -iii- 

        
          

        

      

      
         

      

    

    ARTICLE I
– INTRODUCTION

    

    YUM!
Brands, Inc. (the "Company") established the YUM! Brands Director Deferred
Compensation Plan (the “Plan”) to permit Eligible Directors to defer certain
compensation paid to them as Directors.

    

    The Plan
consists of two primary components, each of which is subject to separate
documentation:  (i) deferrals under the Plan that were earned and
vested prior to the 2004-2005 Compensation Year (the “Pre-409A Program”), and
(ii) and deferrals under the Plan that were not earned and vested prior to the
2004-2005 Compensation Year (the “409A Program”).  The 409A Program is
governed by this document.  The Pre-409A Program is governed by a
separate set of documents.  Except as otherwise provided herein, this
document reflects the provisions in effect from and after January 1, 2005 (the
“Effective Date”), and the rights and benefits of individuals who are
Participants in the Plan from and after that date (and of those claiming through
or on behalf of such individuals) shall be governed by the provisions of this
document in the case of actions and events occurring on or after January 1,
2005, with respect to deferrals that are subject to the 409A
Program.  For purposes of the preceding sentence, the term “actions
and events” shall include all distribution trigger events and
dates.  The rights and benefits with respect to persons who only
participated in the Plan prior to January 1, 2005 shall be governed by the
applicable provisions of the Pre-409A Program documents that were in effect at
such time, and shall not be governed by the 409A Program documents.

    

    Together,
the documents for the 409A Program and the documents for the Pre-409A Program
describe the terms of a single plan.  However, amounts subject to the
terms of this 409A Program and amounts subject to the terms of the Pre-409A
Program shall be tracked separately at all times. The preservation of the terms
of the Pre-409A Program, without material modification, and the separation
between the 409A Program amounts and the Pre-409A Program amounts are intended
to permit the Pre-409A Program to remain exempt from Section 409A and the
administration of the Plan shall be consistent with this intent.

    

    For
federal income tax purposes, the Plan is intended to be a nonqualified unfunded
deferred compensation plan that is unfunded and unsecured.  For
purposes of ERISA, the Plan is intended to be exempt from ERISA coverage as a
plan that solely benefits non-employees (or alternatively, a plan described in
Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA providing benefits to a select
group of management or highly compensated employees).

    

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    ARTICLE
II – DEFINITIONS

    

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

    

    2.01           Account:

    

    The
account maintained for a Participant on the books of the Company to determine,
from time to time, the Participant's interest under this Plan.  The
balance in such Account shall be determined by the Plan
Administrator.  Each Participant's Account shall consist of at least
one Deferral Subaccount for each separate deferral under Section
4.01.  The Plan Administrator may also establish such additional
Deferral Subaccounts as it deems necessary for the proper administration of the
Plan.  The Plan Administrator may also combine Deferral Subaccounts to
the extent it deems separate accounts are not needed for sound
recordkeeping.  Where appropriate, a reference to a Participant’s
Account shall include a reference to each applicable Deferral Subaccount that
has been established thereunder.

    

    2.02           Act:

    

    The
Securities Exchange Act of 1934, as amended from time to time.

    

    2.03           Annual
Retainer:

    

    An
Eligible Director’s annual stock grant retainer received as compensation for
service on the Company’s Board of Directors.  Subject to the next
sentence, the Annual Retainer shall be limited to the amount due an Eligible
Director for the discharge of his or her duties as a member of the Board of
Directors of the Company, and shall be reduced for any applicable tax levies,
garnishments and other legally required deductions.  Notwithstanding
the preceding sentence, an Eligible Director’s Annual Retainer may be reduced by
an item described in the preceding sentence only to the extent such reduction
does not violate Section 409A.

    

    2.04           Beneficiary:

    

    The
person or persons (including a trust or trusts) properly designated by a
Participant, as determined by the Plan Administrator, to receive the amounts in
one or more of the Participant’s Deferral Subaccounts in the event of the
Participant’s death in accordance with Section 4.02(c).

    

    2.05           Code:

    

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

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    2.06           Company:

    

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

    

    2.07           Compensation
Year:

    

    The
12-month period of time for which Directors are compensated for their services
on the Board of Directors, commencing with the annual retainer payable on
October 1 in one calendar year and concluding on September 30 of the following
calendar year.

    

    2.08           Deferral
Subaccount:

    

    A
subaccount of a Participant's Account maintained to reflect his or her interest
in the Plan attributable to each deferral (or separately tracked portion of a
deferral) of Director Compensation, and earnings or losses credited to such
subaccount in accordance with Section 5.01(b).

    

    2.09           Director:

    

    A person
who is a member of the Board of Directors of the Company and who is not
currently an employee of the YUM! Brands Organization.

    

    2.10           Director
Compensation:

    

    The
Annual Retainer, Initial Retainer or both as the context may
require.

    

    2.11           Disability:

    

    A
Participant shall be considered to suffer from a Disability, if, in the judgment
of the Plan Administrator (based on the provisions of Section 409A and any
guidelines established by the Plan Administrator for this purpose), the
Participant –

    

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

    

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

    

    Solely
for those Participants who are otherwise eligible for Social Security, a
Participant who is determined to be totally disabled by the Social Security
Administration will be deemed to satisfy the requirements of Subsection (a), and
a Participant who has not been determined to be totally disabled by the Social
Security Administration will be deemed to not meet the requirements of
Subsection (a).

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    2.12           Distribution Valuation
Date:

    

    Each date
as specified by the Plan Administrator from time to time as of which Participant
Accounts are valued for purposes of a distribution from a Participant’s
Account.  The current Distribution Valuation Dates are March 31, June
30, September 30 and December 31.  Any current Distribution Valuation
Date may be changed by the Plan Administrator, provided that such change does
not result in a change in when deferrals are paid out that is impermissible
under Section 409A.  Values are determined as of the close of a
Distribution Valuation Date or, if such date is not a business day, as of the
close of the preceding business day.

    

    2.13           Election
Form:

    

    The form
prescribed by the Plan Administrator on which a Participant specifies the amount
of his or her Annual Retainer to be deferred and the timing and form of his or
her deferral payout, pursuant to the provisions of Article IV.  An
Election Form need not exist in a paper format, and it is expressly authorized
that the Plan Administrator may make available for use such technologies,
including voice response systems, Internet-based forms and any other electronic
forms, as it deems appropriate from time to time.

    

    2.14           Eligible
Director:

    

    The term
“Eligible Director” shall have the meaning given to it in Section
3.01(b).

    

    2.15           ERISA:

    

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

    

    2.16           Fair Market
Value:

    

    For
purposes of converting a Participant’s deferrals to phantom YUM! Brands Common
Stock as of any date, the Fair Market Value of such stock is the average of the
high and low price on such date (or if such date is not a trading date, the
first date immediately following such date that is a trading date) for YUM!
Brands Common Stock as reported on the composite tape for securities listed on
the New York Stock Exchange, Inc., rounded to four decimal
places.  For purposes of determining the value of a Plan distribution,
the Fair Market Value of phantom YUM! Brands Common Stock is determined as the
closing price on the applicable Distribution Valuation Date for YUM! Brands
Common Stock as reported on the composite tape for securities listed on the New
York Stock Exchange, Inc., rounded to four decimal places.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

     

    
      2.17           409A
Program:

      

      The term
“409A Program” shall have the meaning given to it in Article I, which shall be
effective as of January 1, 2005, except as otherwise noted
herein.

    

    

    2.18           Initial
Retainer:

    

    An
Eligible Director’s one-time initial stock grant retainer paid on the date the
Eligible Director joins the Company’s Board of Directors.  Subject to
the next sentence, the Initial Retainer shall be limited to the amount due an
Eligible Director for the discharge of his or her duties as a member of the
Board of Directors of the Company, and shall be reduced for any applicable tax
levies, garnishments and other legally required
deductions.  Notwithstanding the preceding sentence, an Eligible
Director’s Initial Retainer may be reduced by an item described in the preceding
sentence only to the extent such reduction does not violate Section
409A.

    

    2.19           Key
Employee:

    

    The
individuals identified in accordance with the principles set forth
below.

    

    (a)           General.  Any
Participant who at any time during the applicable year is –

    

    (1)           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));

    

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

    

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

    

    For
purposes of (1) above, no more than 50 employees identified in the order of
their annual compensation 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) and the
applicable regulations and other guidance of general applicability issued
thereunder or in connection therewith (provided, that Code Section 416(i)(5)
shall not apply in making such determination), and provided further that the
applicable year shall be determined in accordance with Section 409A and that any
modification of the foregoing definition that applies under Section 409A shall
be taken into account.

    

    (b)           Applicable
Year.  The Plan Administrator shall determine Key Employees as
of the last day of each calendar year (the “determination date”), based on
compensation for such year, and the designation for a particular determination
date shall be effective for purposes of this Plan for the twelve month period
commending on April 1 of the next following calendar year (e.g., the Key Employees
determined by the Plan Administrator as of December 31, 2008, shall apply to the
period from April 1, 2009, to March 31, 2010). 

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    

      2.20           Participant:

      

      Any
Director who is qualified to participate in this Plan in accordance with Section
3.01 and who has an Account.  An active Participant is one who is
currently deferring under Section 4.01.

    

    

    2.21           Plan:

    

    The YUM!
Brands Director Deferred Compensation Plan, comprised of (i) the 409A Program
set forth herein and (ii) the Pre-409A Program set forth in a separate set of
documents, as each may be amended and restated from time to time (subject to the
limitations on amendment that are applicable hereunder and under the Pre-409A
Program).

    

    2.22           Plan
Administrator:

    

    The Board
of Directors of the Company or its delegate or delegates, which shall have the
authority to administer the Plan as provided in Article VII.  As of
the Effective Date, the Company’s Chief People Officer is delegated the
responsibility for the operational administration of the Plan.  In
turn, the Chief People Officer has the authority to re-delegate operational
responsibilities to other persons or parties.  As of the Effective
Date, the Chief People Officer has re-delegated certain operational
responsibilities to the Company’s Executive Compensation
Department.  However, references in this document to the Plan
Administrator shall be understood as referring to the Board of Directors, the
Chief People Officer and those delegated by the Chief People Officer, including
the Company’s Executive Compensation Department.  All delegations made
under the authority granted by this Section are subject to Section
7.06.

    

    2.23           Plan
Year:

    

    The
12-consecutive month period beginning on January 1 and ending on
December 31.

    

    2.24           Pre-409A
Program:

    

    The term
“Pre-409A Program” shall have the meaning given to it in Article I.

    

    2.25           Second Look
Election:

    

    The term
“Second Look Election” shall have the meaning given to it in Section
4.04.

    

    2.26           Section
409A:

    

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

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

     

    
      2.27           Separation from
Service:

      

      A
Participant’s separation from service as defined in Section 409A, including the
rule that a Participant who is Disabled incurs a Separation from Service 29
months after the Participant is no longer actively rendering services to the
Company.  In the event the Participant also provides services to the
YUM! Brands Organization other than as a Director for the Company, such other
services shall not be taken into account in determining when a Separation from
Service occurs to the extent permitted under Treas. Reg. §
1.409A-1(h)(5).  The term may also be used as a verb (i.e., “Separates from
Service”) with no change in meaning.

    

    

    2.28           Specific Payment
Date:

    

    A
specific date selected by an Eligible Director that triggers a lump sum payment
of a deferral or the start of installment payments for a deferral, as specified
in Section 4.03 or 4.04.  The Specific Payment Dates that are
available to be selected by Eligible Directors shall be determined by the Plan
Administrator.  With respect to any deferral, the currently available
Specific Payment Date(s) shall be the date or dates reflected on the Election
Form or the Second Look Election form that is made available by the Plan
Administrator for the deferral.  In the event that an Election Form or
Second Look Election form only provides for selecting a month and a year as the
Specific Payment Date, the first day of the month that is selected shall be the
Specific Payment Date.  As of the Effective Date, the Specific Payment
Dates are January 1, April 1, July 1 and October 1 of the year specified by the
Eligible Director.

    

    2.29           Unforeseeable
Emergency:

    

    A severe
financial hardship to the Participant resulting from –

    

    (a)           An
illness or accident of the Participant, the Participant’s spouse, the
Participant’s Beneficiary or the Participant’s dependent (as defined in Code
Section 152(a) without regard to Code Sections 152(b)(1), 152(b)(2) and
152(d)(1)(B));

    

    (b)           Loss
of the Participant’s property due to casualty (including, effective January 1,
2009, the need to rebuild a home following damage to the home not otherwise
covered by insurance); or

    

    (c)           Any
other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the Participant.

    

    The Plan
Administrator shall determine the occurrence of an Unforeseeable Emergency in
accordance with Treas. Reg. §1.409A-3(i)(iii) and any guidelines that may be
established by the Plan Administrator.

    

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      2.30           Valuation
Date:

      

      Each
business day, as determined by the Plan Administrator, as of which Participant
Accounts are valued in accordance with Plan procedures that are currently in
effect. The Plan Administrator may change the Valuation Dates for future
deferrals at any time before the election to make such deferrals becomes
irrevocable under the Plan.  The Plan Administrator may change the
Valuation Dates for existing deferrals only to the extent that such change in
permissible under Section 409A.

      

      2.31           YUM! Brands
Organization:

      

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

    

     

    
 

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    ARTICLE
III – ELIGIBILITY AND PARTICIPATION

    

    3.01           Eligibility to
Participate:

    

    (a)           An
individual shall be eligible to defer compensation under the Plan during the
period that he or she is a Director hereunder.

    

    (b)           During
the period an individual satisfies the eligibility requirements of this Section,
he or she shall be referred to as an Eligible Director.

    

    (c)           Each
Eligible Director shall become an active Participant on the earlier of the date
an amount is first withheld from his or her compensation pursuant to an Election
Form submitted by the Director to the Plan Administrator under Section 4.01 or,
the date on which an Initial Retainer is first deferred and credited to the Plan
on his or her behalf under Section 4.05.

    

    3.02           Termination of Eligibility
to Defer:

    

    An
individual’s eligibility to participate actively by making deferrals under
Section 4.01 shall cease as soon as administratively practicable following the
date he or she ceases to be a Director.

    

    3.03           Termination of
Participation:

    

    An
individual, who has been an active Participant under the Plan, ceases to be a
Participant on the date his or her Account is fully paid out.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    ARTICLE
IV – DEFERRAL OF COMPENSATION

    

    4.01           Deferral
Election:

    

    (a)           Each
Eligible Director may make an election to defer under the Plan in 10% increments
up to 100% of his or her Annual Retainer for a Compensation Year in the manner
described in Section 4.02.  Such election to defer shall apply to the
Annual Retainer that is earned for services performed in the corresponding
Compensation Year.  A newly Eligible Director may only defer the
portion of his or her eligible Annual Retainer for the Compensation Year in
which he or she becomes an Eligible Director that is earned for services
performed after the date of his or her election.  For this purpose, if
a valid Election Form is received prior to the date on which the Eligible
Director becomes a Director and the Election Form is effective under Section
4.02(a) as of the date on which the Eligible Director becomes a Director, then
the Director shall be deemed to receive all of his or her Annual Retainer for
the Compensation Year in which he or she becomes an Eligible Director after the
date of the election.  Any Annual Retainer deferred by an Eligible
Director for a Compensation Year will be deducted for each payment period during
the Compensation Year for which he or she would otherwise be paid the Annual
Retainer and is an Eligible Director.  An Annual Retainer paid after
the end of a Compensation Year for services performed during such initial
Compensation Year shall be treated as an Annual Retainer for services performed
during such initial Compensation Year.

    

    (b)           To
be effective, an Eligible Director’s Election Form must set forth the percentage
of the Annual Retainer to be deferred and any other information that may be
requested by the Plan Administrator from time to time.  In addition,
the Election Form must meet the requirements of Section 4.02.

    

    4.02           Time and Manner of Deferral
Election:

    

    (a)           Deferral Election
Deadlines.  An Eligible Director must make a deferral election
for an Annual Retainer earned for services performed in a Compensation Year no
later than December 31 of the calendar year immediately prior to the
beginning of the Compensation Year (although the Plan Administrator may adopt
policies that encourage or require earlier submission of Election
Forms).  If December 31 of such year is not a business day, then the
deadline for deferral elections will be the first business day preceding
December 31 of such year.  In addition, an individual, who has been
nominated for Director status, must submit an Election Form prior to becoming an
Eligible Director or otherwise prior to rendering services as an Eligible
Director, and such Election Form will be effective immediately upon commencement
of the individual’s status as an Eligible Director or otherwise upon
commencement of his or her services as an Eligible Director. 

    
      

      (b)           General
Provisions.  A separate deferral election under subsection
(a) above must be made by an Eligible Director for each Compensation Year’s
compensation that is eligible for deferral.  If a properly completed
and executed Election Form is not actually received by the Plan Administrator by
the prescribed time in subsection (a) above, the Eligible Director will be
deemed to have elected not to defer any portion of the Annual Retainer for the
applicable Compensation Year.  Except as provided in the next
sentence, an election is irrevocable once received and determined by the Plan
Administrator to be properly completed (and such determination shall be made not
later than the last date for making the election in question). Increases or
decreases in the amount or percentage a Participant elects to defer shall not be
permitted after the beginning of the calendar year during which the applicable
Compensation Year begins; provided that if a Participant receives a distribution
on account of an Unforeseeable Emergency pursuant to Section 6.06, the Plan
Administrator may cancel the Participant’s deferral election for the year in
which such distribution occurs.  If an election is cancelled because
of a distribution on account of an Unforeseeable Emergency, such cancellation
shall permanently apply to the deferral election for such year, and the
Participant will only be eligible to make a new deferral election for the next
year pursuant to the rules in Sections 4.01 and 4.02.

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    (c)           Beneficiaries.  A
Participant may designate on the Election Form (or in some other manner
authorized by the Plan Administrator) one or more Beneficiaries to receive
payment, in the event of his or her death, of the amounts credited to his or her
Account; provided that, to be effective, any Beneficiary designation must be in
writing, signed by the Participant, and must meet such other standards
(including any requirement for spousal consent) as the Plan Administrator shall
require from time to time.  The Beneficiary designation must also be
filed with the Plan Administrator prior to the Participant’s
death.  An incomplete Beneficiary designation, as determined by the
Plan Administrator, shall be void and of no effect.  In determining
whether a Beneficiary designation that relates to the Plan is in effect,
unrevoked designations that were received under the Pre-409A Program or prior to
the Effective Date shall be considered.  A Beneficiary designation of
an individual by name remains in effect regardless of any change in the
designated individual’s relationship to the Participant.  Any
Beneficiary designation submitted to the Plan Administrator that only specifies
a Beneficiary by relationship shall not be considered an effective Beneficiary
designation and shall be void and of no effect.  If more than one
Beneficiary is specified and the Participant fails to indicate the respective
percentage applicable to two or more Beneficiaries, then each Beneficiary for
whom a percentage is not designated will be entitled to an equal share of the
portion of the Account (if any) for which percentages have not been designated.
At any time, a Participant may change a Beneficiary designation for his or her
Account in a writing that is signed by the Participant and filed with the Plan
Administrator prior to the Participant’s death, and that meets such other
standards as the Plan Administrator shall require from time to
time.  An individual who is otherwise a Beneficiary with respect to a
Participant’s Account ceases to be a Beneficiary when all payments have been
made from the Account.

    

    4.03           Period of Deferral; Form of
Payment:

    

    (a)           Period of
Deferral.  An Eligible Director making a deferral election
shall specify a deferral period on his or her Election Form by designating a
Specific Payment Date and/or the date he or she incurs a Separation from
Service.  In no event shall an Eligible Director’s Specific Payment
Date be later than his or her 80th
birthday (and the specification of such a later date shall be deemed instead to
specify the Director’s 80th
birthday as the Specific Payment Date).  In addition, an Eligible
Director shall be deemed to have elected a period of deferral of not less than
the first day of the second Plan Year after the end of the Plan Year during
which the Annual Retainer would have been paid absent the deferral. If the
Specific Payment Date selected by an Eligible Director would result in a period
of deferral that is less than the minimum, the Eligible Director shall be deemed
to have selected a Specific Payment Date equal to the minimum period of deferral
as provided in the preceding sentence.  If an Eligible Director fails
to affirmatively designate a period of deferral on his or her Election Form, he
or she shall be deemed to have specified the date on which he or she incurs a
Separation from Service.

    

    (b)           Form of
Payment.  An Eligible Director making a deferral election shall
specify a form of payment on his or her Election Form by designating either a
lump sum payment or annual installment payments to be paid over a period of not
more than 20 years but not later than the Eligible Director’s 80th
birthday.  If the Eligible Director elects installment payments and
the installments would otherwise extend beyond the Eligible Director’s 80th
birthday, such election shall be treated as an election for installments over a
period of whole and partial years that ends on the Eligible Director’s 80th
birthday; provided that the amounts to be distributed in connection with the
installments prior to the Eligible Director’s 80th birthday shall be determined
in accordance with Section 6.08 by assuming that the installments shall continue
for the full number of installments with the entire remaining amount of the
relevant Deferral Subaccount distributed on the Eligible Director’s 80th
birthday.  If an Eligible Director fails to make a form of payment
election for a deferral as provided above, he or she shall be deemed to have
elected a lump sum payment.  The initial form of payment for the
Initial Retainer are governed by Section 4.05.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    4.04           Second Look
Election:

    

    (a)           General.  Subject
to Subsection (b) below, a Participant who has made a valid initial deferral in
accordance with the foregoing provisions of this Article may subsequently make
another one-time election regarding the time and/or form of payment of his or
her deferral.  This opportunity to modify the Participant’s initial
election is referred to as a “Second Look Election.”  A Second Look
Election may be made for an Annual Retainer or an Initial Retainer.

    

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

    

    (1)           If
a Participant’s initial election specified payment based on a Specific Payment
Date, the Participant may only make a Second Look Election if the election is
made at least 12 months before the Participant’s original Specific Payment
Date.  In addition, in this case the Participant’s Second Look
Election must provide for a new Specific Payment Date that is at least 5 years
after the original Specific Payment Date.  The Specific Payment Date
applicable pursuant to a Second Look Election may not be after the Participant’s
80th
birthday, and if this would be necessary to comply with 5-year rule stated
above, then a Second Look Election may not be made.

    

    (2)           Subject
to subsection (d), if a Participant’s initial election specified payment based
on the Participant’s Separation from Service (including mandatory deferrals
under Section 4.05), the Participant may only make a Second Look Election if the
election is made at least 12 months before the Participant’s Separation from
Service.  In addition, in this case the Participant’s Second Look
Election must delay the payment of the Participant’s deferral to a new Specific
Payment Date that turns out to be at least 5 years after the Participant’s
Separation from Service.  If the Specific Payment Date selected in a
Second Look Election turns out to be less than 5 years after the Participant’s
Separation from Service, the Second Look Election is void.

     

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      
        

        (3)           Subject
to subsection (d), if a Participant’s initial election specified payment based
on the earlier of the Participant’s Separation from Service or a Specific
Payment Date, the Participant may only make a Second Look Election if the
election is made at least 12 months before the Specific Payment Date and at
least 12 months before the Participant’s Separation from Service.  In
addition, in this case the Participant must elect a new Specific Payment Date
that is at least 5 years after the prior Specific Payment Date.  Then
the Second Look Election will only include the new Specific Payment Date as the
payment trigger and the separate Separation from Service trigger in the original
election will be void.

        

        (4)           A
Participant may make only one Second Look Election for each individual deferral,
and each Second Look Election must comply with all of the relevant requirements
of this Section.

        

        (5)           A
Participant who uses a Second Look Election to change the form of the
Participant’s payment from a lump sum to installments shall be subject to the
provisions of Subsection (c) below regarding installment payment elections, and
such installment payments must begin no earlier than 5 years after when the lump
sum payment would have been paid based upon the Participant’s initial
election.

         

        (6)           If
a Participant’s initial election specified payment in the form of installments
and the Participant wants to elect instead payment in a lump sum, the earliest
payment date of the lump sum must be no earlier than 5 years after the first
payment date that applied under the Participant’s initial installment
election.

      

      

      (7)           For
purposes of this Section, all of a Participant’s installment payments related to
a specific deferral election shall be treated as a single payment.

      

      A Second
Look Election will be void and payment will be made based on the Participant’s
original election under Section 4.03 (or the mandatory provisions of Section
4.05) if all of the relevant provisions of this subsection (b) are not satisfied
in full.  However, if a Participant’s Second Look Election becomes
effective in accordance with the provisions of subsection (b), the Participant’s
original election shall be superseded (including any Specific Payment Date
specified therein), and the original election shall not be taken into account
with respect to the deferral that is subject to the Second Look
Election.

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      (c)             Installment
Payments.  A Participant making a Second Look Election may make
an election to change the payment of the deferral subject to the Second Look
Election from a lump sum payment to installment
payments.  Participants are allowed to choose installment payments by
designating that payments shall be paid annually over five years, but not later
than the Participant’s 80th
birthday.  If the Participant elects installment payments and the
installments would otherwise begin before and extend beyond the Participant’s
80th
birthday, such election shall be treated as an election for installments over a
period of whole and partial years that ends on the Participant’s 80th
birthday; provided that the amounts to be distributed in connection with the
installments prior to the Participant’s 80th
birthday shall be determined in accordance with Section 6.08 by assuming that
the installments shall continue for the full number of installments, with the
entire remaining amount of the relevant Deferral Subaccount distributed on the
Participant’s 80th
birthday.

      

      (d)             Special Rules for Certain
Second Look Elections.  Notwithstanding the provisions in
subsections (b)(2) and (b)(3), if a Participant’s initial deferral election
specified payment based on the Participant’s Separation from Service or the
earlier of the Participant’s Separation from Service or a Specific Payment Date,
then –

      

      (1)             If
such Participant is determined to be Disabled, such Participant shall not be
eligible to make a Second Look Election on or after the date the Participant is
determined to be Disabled; and

      

      (2)             If
such Participant submits a Second Look Election, such Participant’s Second Look
Election shall not take effect until the later of (i) the date the Participant
has rendered 10 years of service on the Board of Directors or (ii) the date that
is 12 months after the date on which the Second Look Election is
made.

      

      For
purposes of paragraph (2) above, if a Participant Separates from Service prior
to the date that a Participant’s Second Look Election takes effect, then the
Participant’s Second Look Election shall be void and payment shall be made based
on the Participant’s original deferral election under Section 4.03 (or the
mandatory provisions of Section 4.05).

      

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

    

     

    4.05           Deferral of Initial
Retainer.

    

    (a)           General.  As
provided in this Section, the Board of Directors of the Company has determined
that the Initial Retainer shall be automatically deferred under the
Plan.

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    (b)           Deferrals.  The
Initial Retainer shall be automatically deferred under this Plan without any
requirement or right on behalf of the Eligible Director to make a deferral
election.  Such deferral shall occur immediately prior to the time the
Eligible Director first has a legally binding right to the Initial
Retainer.  The deferral of the Initial Retainer shall be credited to a
separate Deferral Subaccount for the applicable Compensation Year.

    

    (c)           Time and Form of
Payment.  Each Initial Retainer shall be distributed in
accordance with Section 6.07, and the Eligible Director shall not be permitted
to make an initial election for the time and form of payment of the Initial
Retainer.  However, if an Eligible Director properly completes a
Second Look Election and changes the time of payment pursuant to such Second
Look Election, he/she may also change the form of payment pursuant to such
Second Look Election.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    ARTICLE V
– INTERESTS OF PARTICIPANTS

    

    5.01           Accounting for Participants’
Interests:

    

    (a)           Deferral
Subaccounts.  Each Participant shall have at least one separate
Deferral Subaccount for each separate deferral of Director Compensation made by
the Participant under this Plan.  A Participant’s deferral shall be
credited as of the date of the deferral to his or her Account as soon as
administratively practicable following the date the compensation would be paid
in the absence of a deferral.  A Participant’s Account is a
bookkeeping device to track the value of the Participant’s deferrals and the
Company’s liability therefor.  No assets shall be reserved or
segregated in connection with any Account, and no Account shall be insured or
otherwise secured.

    

    (b)           Account Earnings or
Losses.  As of each Valuation Date, a Participant’s Account
shall be credited with earnings and gains (and shall be debited for expenses and
losses) determined as if the amounts credited to the Participant’s Account had
actually been invested in accordance with this Article.  The Plan
provides only for “phantom investments,” and therefore such earnings, gains,
expenses and losses are hypothetical and not actual.  However, they
shall be applied to measure the value of a Participant’s Account and the amount
of the Company’s liability to make deferred payments to or on behalf of the
Participant.

    

    5.02           Phantom Investment of
Account:

    

    (a)           General.  Each
of a Participant’s Deferral Subaccounts shall be invested on a phantom basis in
phantom YUM! Brands Common Stock as provided in Subsection (b)
below.

    

    (b)           Phantom YUM! Brands Common
Stock.  Participant Accounts invested in this phantom option
are adjusted to reflect an investment in YUM! Brands Common Stock.  An
amount deferred into this option is converted to phantom shares of YUM! Brands
Common Stock of equivalent value by dividing such amount by the Fair Market
Value of a share of YUM! Brands Common Stock on the Valuation Date as of which
the amount is treated as invested in this option by the Plan
Administrator.  Only whole shares are determined.  Any
partial share (and all amounts that would be received by the Account as
dividends, if dividends were paid on phantom shares of YUM! Brands Common Stock
as they are on actual shares) are credited to a dividend subaccount that is
invested on a phantom basis as described in paragraph (4) below.  The
Plan Administrator shall adopt a fair valuation methodology for valuing a
phantom investment in this option, such that the value shall reflect the
complete value of an investment in YUM! Brands Common Stock in accordance with
the following Paragraphs below.

    

    (1)           A
Participant’s interest in the phantom YUM! Brands Common Stock is valued as of a
Valuation Date by multiplying the number of phantom shares credited to his or
her Account on such date by the Fair Market Value of a share of YUM! Brands
Common Stock on such date.

    

    (2)           If
shares of YUM! Brands Common Stock change by reason of any stock split, stock
dividend, recapitalization, merger, consolidation, spin-off, combination or
exchange of shares or any other corporate change treated as subject to this
provision by the Plan Administrator, such equitable adjustment shall be made in
the number and kind of phantom shares credited to an Account or Deferral
Subaccount as the Plan Administrator may determine to be necessary or
appropriate.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    (3)           In
no event will shares of YUM! Brands Common Stock actually be purchased or held
under this Plan, and no Participant shall have any rights as a shareholder of
YUM! Brands Common Stock on account of an interest in this phantom
option.

    

    (4)           All
amounts that would be received by the Account as dividends, if dividends were
paid on phantom shares of YUM! Brands Common Stock as they are on actual shares
are credited to a dividend subaccount that is invested on a phantom basis (the
“Dividend Subaccount”).  Amounts credited to a Participant’s Dividend
Subaccount shall accrue a return based upon the prime rate of interest announced
from time to time by Citibank, N.A. (or another bank designated by the Plan
Administrator from time to time).  Returns accrue during the period
since the last Valuation Date based on the prime rate in effect on the first
business day after such Valuation Date and are compounded
annually.  An amount is credited with the applicable rate of return
beginning with the date as of which the amount is treated as invested in this
option by the Plan Administrator.

    

    (c)           Phantom YUM! Brands Common
Stock Fund Restrictions. Notwithstanding the preceding provisions of this
Section, the Plan Administrator may at any time alter the effective date of any
investment or allocation involving phantom YUM! Brands Common Stock pursuant to
Section 7.03(j) (relating to safeguards against insider trading).  The
Plan Administrator may also, to the extent necessary to ensure compliance with
Rule 16b-3(f) of the Act, arrange for tracking of any such transaction defined
in Rule 16b-3(b)(1) of the Act and bar any such transaction to the extent it
would not be exempt under Rule 16b-3(f).  The Company may also impose
blackout periods pursuant to the requirements of the Sarbanes-Oxley Act of 2002
whenever the Company determines that circumstances warrant.  Further,
the Company may impose quarterly blackout periods on insider trading in phantom
YUM! Brands Common Stock as needed (as determined by the Company), timed to
coincide with the release of the Company’s quarterly earnings
reports.  The commencement and termination of these blackout periods
in each quarter, the parties to which they apply and the activities they
restrict shall be as set forth in the official insider trading policy
promulgated by the Company from time to time.  These provisions shall
apply notwithstanding any provision of the Plan to the contrary except Section
7.(relating to compliance with Section 409A).

     

    5.03           Vesting of a Participant’s
Account:

    

    A
Participant’s interest in the value of his or her Account shall at all times be
100% vested, which means that it will not forfeit as a result of his or her
Separation from Service.

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    ARTICLE
VI – DISTRIBUTIONS

    

    6.01           General:

    

    A
Participant’s Deferral Subaccount(s) shall be distributed as provided in this
Article, subject in all cases to Section 7.03(j) (relating to safeguards against
insider trading) and Section 7.06 (relating to compliance with Section 16 of the
Act).  All Deferral Subaccount balances shall be paid in whole shares
of YUM! Brands Common Stock, other than the amounts that are credited to the
phantom Dividend Subaccount which shall be paid in cash.  In no event
shall any portion of a Participant’s Account be distributed earlier or later
than is allowed under Section 409A.  The following general rules shall
apply for purposes of interpreting the provisions of this Article
VI.

    

    (a)           Section
6.02 (Distributions Based on a Specific Payment Date) applies when a Participant
has elected to defer until a Specific Payment Date and the Specific Payment Date
is reached before the Participant’s Separation from Service or
death.  If such a Participant dies prior to the Specific Payment Date,
Section 6.04 shall apply to the extent it would result in an earlier
distribution of all or part of a Participant’s Account.

    

    (b)           Section 6.03
(Distributions on Account of a Separation from Service) applies when a
Participant has elected to defer until a Separation from Service and then the
Participant Separates from Service (other than as a result of
death).

    

    (c)           Section
6.04 (Distributions on Account of Death) applies when the Participant
dies.  If a Participant is entitled to receive or is receiving a
distribution under Section 6.02 or 6.03 at the time of his or her death, Section
6.04 shall take precedence over those sections to the extent Section 6.04 would
result in an earlier distribution of all or part of a Participant’s
Account.

    

    (d)           Section
6.05 (Distributions on Account of Unforeseeable Emergency) applies when the
Participant incurs an Unforeseeable Emergency prior to when a Participant’s
Account is distributed under Sections 6.02 through 6.04.  In this
case, the provisions of Section 6.05 shall take precedence over Sections 6.02
through 6.04 to the extent Section 6.05 would result in an earlier distribution
of all or part of the Participant’s Account.

    

    6.02           Distributions Based on a
Specific Payment Date:

    

    This
Section shall apply to distributions that are to be made upon the occurrence of
a Specific Payment Date.  In the event a Participant’s Specific
Payment Date for a Deferral Subaccount is reached before (i) the Participant’s
Separation from Service (other than for death) or (ii) the Participant’s death,
such Deferral Subaccount shall be distributed based on the occurrence of such
Specific Payment Date in accordance with the following terms and
conditions:

    

    (a)           If
a Participant’s Deferral Subaccount is to be paid in the form of a lump sum
pursuant to Sections 4.03 or 4.04, whichever is applicable, the Deferral
Subaccount shall be valued as of the last Distribution Valuation Date that
immediately precedes the Specific Payment Date, and the resulting amount shall
be paid in a single lump sum on the Specific Payment Date.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    

    (b)           If
a Participant’s Deferral Subaccount is to be paid in the form of installments
pursuant to Section 4.03 or 4.04, whichever is applicable, the Deferral
Subaccount shall be valued as of the last Distribution Valuation Date that
immediately precedes the Specific Payment Date and the first installment payment
shall be paid on the Specific Payment Date.  Thereafter, installment
payments shall continue in accordance with the schedule elected by the
Participant on the Election Form or the Second Look Election (whichever is
applicable, and subject in each case to the provisions of this Plan that
constrain such elections), except as provided in Sections 6.04 and 6.05
(relating to distributions on account of death and Unforeseeable
Emergency).  The amount of each installment shall be determined under
Section 6.07.  Notwithstanding the preceding provisions of this
Subsection, if before the date the last installment distribution is processed
for payment the Participant would be entitled to a distribution in accordance
with Section 6.04 (relating to a distribution on account of death), the
remaining balance of the Participant’s Deferral Subaccounts that would otherwise
be distributed based on such Specific Payment Date shall instead be distributed
in accordance with Section 6.04 (relating to distributions on account of death),
whichever applies, but only to the extent it would result in an earlier
distribution of the Participant’s Subaccounts in the case of Section
6.04.

    

    (c)           If
the Participant selected both Separation from Service and a Specific Payment
Date for a Deferral Subaccount, then the provisions of Section 6.03(c) shall
apply.

    

    6.03           Distributions on Account of
a Separation from Service:

    

    This
Section shall apply to distributions that are to be made upon Separation from
Service.  When used in this Section, the phrase “Separation from
Service” shall only refer to a Separation from Service that is not for
death.

    

    (a)           If
the Participant’s Separation from Service is prior to the Specific Payment Date
that is applicable to a Deferral Subaccount, the Participant’s Deferral
Subaccount shall be distributed as of the first day of the first calendar
quarter that immediately follows the Participant’s Separation from Service as
provided in subsection (d).

    

    (b)           If
the Participant has selected payment of his or her deferral on account of
Separation from Service, distribution of the related Deferral Subaccount shall
commence as follows:

    

    (1)           For
deferrals of Director Compensation other than Initial Retainers, the Deferral
Subaccount shall be distributed as of the first day of the first calendar
quarter that immediately follows the Participant’s Separation from Service as
provided in subsection (d); and

    

    (2)           For
Initial Retainers, the Deferral Subaccount shall be valued and distributed
pursuant to Section 6.06.

    

    (c)           If
the Participant selected both Separation from Service and a Specific Payment
Date for a Deferral Subaccount, then the distribution of the related Deferral
Subaccount shall commence as follows:

    

    (1)           If
the Specific Payment Date occurs prior to the Separation from Service, then the
Deferral Subaccount shall be valued and distributed based on the Specific
Payment Date pursuant to the provisions of Sections 6.02(a) and (b);
and

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    

    (2)           If
the Separation from Service occurs prior to the Specific Payment Date, then the
Deferral Subaccount shall be valued and distributed based on the Separation from
Service pursuant to the provisions of Section 6.03(a).

    

    (d)           The
distribution provided in subsections (a), (b) or (c) shall be made in either a
single lump sum payment or in installment payments depending upon the
Participant’s deferral election under Sections 4.03 or 4.04.  If the
Deferral Subaccount is to be paid in the form of a lump sum, the Deferral
Subaccount shall be distributed in a lump sum on the first day of the first
calendar quarter that is after the Separation from Service.  If a
Participant’s Deferral Subaccount is to be paid in the form of installments
pursuant to Section 4.03 or 4.04, whichever is applicable, the first installment
payment shall be paid on the first day of the first calendar quarter that is
after the Separation from Service.  Thereafter, installment payments
shall continue in accordance with the schedule elected by the Participant on
his/her deferral election form or Second Look Election (and subject in each case
to the provisions of this Plan that constrain such elections), except as
provided in Sections 6.04 and 6.05 (relating to distributions on account of
death and Unforeseeable Emergency).  The amount of each installment
shall be determined under Section 6.07.  Notwithstanding the preceding
provisions of this Subsection, if before the date the last installment
distribution is processed for payment the Participant would be entitled to a
distribution in accordance with Section 6.04 (relating to a distribution on
account of death), the remaining balance of the Participant’s Deferral
Subaccounts that would otherwise be distributed based on such Separation from
Service shall instead be distributed in accordance with Section 6.04 (relating
to distributions on account of death), whichever applies, but only to the extent
it would result in an earlier distribution of the Participant’s Account in the
case of Section 6.04.  Unless otherwise provided in this Section, a
distribution shall be valued as of the Distribution Valuation Date that
immediately precedes the date the payment is to be made.

    

    (e)           Notwithstanding
the subsections above, if the Participant is classified as a Key Employee at the
time of the Participant’s Separation from Service (or at such other time for
determining Key Employee status as may apply under Section 409A), then such
Participant’s Account shall not be paid, as a result of the Participant’s
Separation from Service, earlier than the date that is at least 6 months after
the Participant’s Separation from Service.  In such
event:

    

    (1)           any
applicable lump sum payment shall be valued as of the first Distribution
Valuation Date that is on or after the date that is 6 months after the date of
the Participant’s Separation from Service and the resulting amount shall be
distributed on such date; and

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

     

    
      (2)           any
installment payments that would otherwise have been paid during such 6 month
period shall be valued as of the first Distribution Valuation Date that is on or
after the date that is 6 months after the date of the Participant’s Separation
from Service pursuant to Section 6.07 and the resulting amount(s) shall be
distributed in a lump sum on such date and the installment stream shall continue
from that point in accordance with the applicable schedule.

      

      (f)           If
the Participant is receiving installment payments for one or more Deferral
Subaccounts in accordance with Section 6.02 at the time of his or her Separation
from Service, such installment payments shall continue to be paid based upon the
Participant’s deferral election (but subject to acceleration under Sections 6.04
and 6.05 relating to distributions on account of death and Unforeseeable
Emergency).

    

    

    6.04           Distributions on Account of
Death:

    

    (a)           Upon
a Participant’s death, the Participant’s Account under the Plan shall be
distributed in a single lump sum as of the first day of the first calendar
quarter immediately following the Participant’s death.  This payment
shall be valued as of the Distribution Valuation Date that immediately precedes
the payment date.  If the Participant is receiving installment
payments at the time of the Participant’s death, such installment payments shall
continue in accordance with the terms of the Participant’s deferral election
that governs such payments until the time that the lump sum payment is due to be
paid under the provisions of the preceding sentence of this
Subsection.  Immediately prior to the time that such lump sum payment
is to be paid all installment payments shall cease and the remaining balance of
the Participant’s Account shall be distributed at such scheduled payment time in
a single lump sum.  Amounts paid following a Participant’s death,
whether a lump sum or continued installments, shall be paid to the Participant’s
Beneficiary.  If some but not all of the persons designated as
Beneficiaries by a Participant to receive his or her Account at death predecease
the Participant, the Participant’s surviving Beneficiaries shall be entitled to
the portion of the Participant’s Account intended for such pre-deceased persons
in proportion to the surviving Beneficiaries’ respective shares.

    

    (b)           Effective
from and after January 1, 2009, if no designation is in effect at the time of a
Participant’s death (as determined by the Plan Administrator) or if all persons
designated as Beneficiaries have predeceased the Participant, then the payments
to be made pursuant to this Section shall be distributed as
follows:

    

    (1)           If
the Participant is married at the time of his/her death, all payments made
pursuant to this Section shall be paid to the Participant’s spouse;
and

    

    (2)           If
the Participant is not married at the time of his/her death, all payments made
pursuant to this Section shall be paid to the Participant’s estate.

    

    The Plan
Administrator shall determine whether a Participant is “married” and shall
determine a Participant’s “spouse” based on the state or local law where the
Participant has his/her primary residence at the time of death.  The
Plan Administrator is authorized to make any applicable inquires and to request
any documents, certificates or other information that it deems necessary or
appropriate in order to make the above determinations.

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    
      (c)           Prior
to the time the value of the Participant’s Account is distributed under this
Section, the Participant’s Beneficiary may apply for a distribution under
Section 6.05 (relating to a distribution on account of an Unforeseeable
Emergency).

      

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

    

     

    6.05           Distributions on Account of
Unforeseeable Emergency:

    

    Prior to
the time that an amount would become distributable under Sections 6.02 through
6.04, a Participant or Beneficiary may file a written request with the Plan
Administrator for accelerated payment of all or a portion of the amount credited
to the Participant’s Account based upon an Unforeseeable
Emergency.  After an individual has filed a written request pursuant
to this Section, along with all supporting material that may be required by the
Plan Administrator from time to time, the Plan Administrator shall determine
within 60 days (or such other number of days that is necessary if special
circumstances warrant additional time) whether the individual meets the criteria
for an Unforeseeable Emergency.  If the Plan Administrator determines
that an Unforeseeable Emergency has occurred, the Participant or Beneficiary
shall receive a distribution from his or her Account on the date that such
determination is finalized by the Plan Administrator. However, such distribution
shall not exceed the dollar amount necessary to satisfy the Unforeseeable
Emergency (plus amounts necessary to pay taxes reasonably anticipated as a
result of the distribution) after taking into account the extent to which the
Unforeseeable Emergency is or may be relieved through reimbursement or
compensation by insurance or otherwise or by liquidation of the Participant’s
assets (to the extent the liquidation of such assets would not itself cause
severe financial hardship).

    

    6.06           Distributions of Initial
Retainers:

    

    (a)           This
Section 6.06 shall govern the distribution of all Initial Retainers under the
Plan.  Subject to subsection (b) below, a Participant’s Deferral
Subaccount(s) for an Initial Retainer shall be distributed upon the earliest of
the following to occur:

    

    (1)           The
Participant’s Separation from Service (other than on account of death) pursuant
to the rules in subsection (b) below;

    

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    
      (2)           The
Participant’s death pursuant to the distribution rules of Section 6.04;
or

      

      (3)           The
occurrence of an Unforeseeable Emergency with respect to the Participant
pursuant to the distribution rules of Section 6.05.

      

      (b)           Upon
the Participant’s Separation from Service, the applicable Deferral Subaccount
for the Participant’s Initial Retainer shall be distributed as of the first day
of the first calendar quarter that immediately follows the Participant’s
Separation from Service and the resulting amount shall be distributed in a
single lump sum payment on such date.  This payment shall be valued as
of the Distribution Valuation Date that immediately precedes the payment
date.  However, the Participant shall be allowed to complete a Second
Look Election that changes the time and form of payment.  If a
Participant completes and files a valid Second Look Election pursuant to Section
4.05, his/her Deferral Subaccount for the Initial Retainer shall be distributed
based on the Second Look Election, subject to the provisions of subsections
(a)(2) and (a)(3).

       

    

    6.07           Valuation:

    

    In
determining the amount of any individual distribution pursuant to this Article,
the Participant's Deferral Subaccount shall continue to be credited with
earnings and gains (and debited for expenses and losses) as specified in Article
V until the Distribution Valuation Date that is used in determining the amount
of the distribution under this Article.  If a particular Section in
this Article does not specify a Distribution Valuation Date to be used in
calculating the distribution, the Participant's Deferral Subaccount shall
continue to be credited with earnings and gains (and debited for expenses and
losses) as specified in Article V until the Distribution Valuation Date most
recently preceding the date of such distribution.  In determining the
value of a Participant’s remaining Deferral Subaccount following an installment
distribution from the Deferral Subaccount (or a partial distribution under
Section 6.05 relating to a distribution on account of an Unforeseeable
Emergency), such distribution shall reduce the value of the Participant’s
Deferral Subaccount as of the close of the Distribution Valuation Date most
recently preceding the payment date for such installment (or partial
distribution).  The amount to be distributed in connection with any
installment payment shall be determined by dividing the value of a Participant’s
Deferral Subaccount as of such Distribution Valuation Date (determined before
reduction of the Deferral Subaccount as of such Distribution Valuation Date in
accordance with the preceding sentence) by the remaining number of installments
to be paid with respect to the Deferral Subaccount.

    

    6.08           Impact of Section 16 of the
Act on Distributions:

    

    The
provisions of Section 7.06 shall apply in determining whether a Participant’s
distribution shall be delayed beyond the date applicable under the preceding
provisions of this Article VI.

     

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    
 

    6.09           Actual Payment
Date:

    

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

    

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    Article
VII – PLAN ADMINISTRATION

    

    7.01           Plan
Administrator:

    

    The Plan
Administrator is responsible for the administration of the Plan.  The
Plan Administrator has the authority to name one or more delegates to carry out
certain responsibilities hereunder, as specified in the definition of Plan
Administrator.  To the extent not already set forth in the Plan, any
such delegation shall state the scope of responsibilities being delegated and is
subject to Section 7.06 below.

    

    7.02           Action:

    

    Action by
the Plan Administrator may be taken in accordance with procedures that the Plan
Administrator adopts from time to time or that the Company’s Legal Department
determines are legally permissible.

    

    7.03           Powers of the Plan
Administrator:

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    (h)           To
change the phantom investment under Article V;

    

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

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

    

    (j)           Notwithstanding
any other provision of this Plan except Section 7.07 (relating to compliance
with Section 409A), the Plan Administrator may take any action the Plan
Administrator determines is necessary to assure compliance with any policy of
the Company respecting insider trading as may be in effect from time to
time.  Such actions may include altering the distribution date of
Deferral Subaccounts.  Any such actions shall alter the normal
operation of the Plan to the minimum extent necessary.

    

    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 will be final and conclusive on all
parties.  Any such decision or determination shall be made in the
absolute and unrestricted discretion of the Plan Administrator, even if (1) such
discretion is not expressly granted by the Plan provisions in question, or (2) a
determination is not expressly called for by the Plan provisions in question,
and even though other Plan provisions expressly grant discretion or call for a
determination.  As a result, benefits under this Plan will be paid
only if the Plan Administrator decides in its discretion that the applicant is
entitled to them.  In the event of a review by a court, arbitrator or
any other tribunal, any exercise of the Plan Administrator’s discretionary
authority shall not be disturbed unless it is clearly shown to be arbitrary and
capricious.

    

    7.04           Compensation, Indemnity and
Liability:

    

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

    

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

     

    
      7.05           Withholding:

      

      The
Company shall withhold from amounts due under this Plan, any amount necessary to
enable the Company to remit to the appropriate government entity or entities on
behalf of the Participant as may be required by the federal income tax
provisions of the Code, by an applicable state’s income tax provisions, and by
an applicable city, county or municipality’s earnings or income tax
provisions.  Further, the Company shall withhold from the payroll of,
or collect from, a Participant the amount necessary to remit on behalf of the
Participant any Social Security and/or Medicare taxes which may be required with
respect to amounts deferred or accrued by a Participant hereunder, as determined
by the Company.  In addition, to the extent required by Section 409A,
amounts deferred under this Plan shall be reported to the Internal Revenue
Service as provided by Section 409A, and any amounts that become taxable
hereunder pursuant to Section 409A shall be reported as taxable compensation to
the Participant as provided by Section 409A.

    

    
 

    7.06           Section 16
Compliance:

    

    (a)           In
General.  This Plan is intended to be a formula plan for
purposes of Section 16 of the Act.  Accordingly, in the case of a
deferral or other action under the Plan that constitutes a transaction that
could be covered by Rule 16b-3(d) or (e), if it were approved by the Company’s
Board of Directors or Compensation Committee (“Board Approval”), it is intended
that the Plan shall be administered by delegates of the Board of Directors, in
the case of a Participant who is subject to Section 16 of the Act, in a manner
that will permit the Board Approval of the Plan to avoid any additional Board
Approval of specific transactions to the maximum possible extent.

    

    (b)           Approval of
Distributions:  This Subsection shall govern the distribution
of a deferral that (i) is being distributed to a Participant in cash, (ii) is
made to a Participant who is subject to Section 16 of the Act at the time the
interest in phantom YUM! Brands Common Stock would be liquidated in connection
with the distribution, and (iii) if paid at the time the distribution would be
made without regard to this subsection, could result in a violation of Section
16 of the Act because there is an opposite way transaction that would be matched
with the liquidation of the Participant’s interest in phantom YUM! Brands Common
Stock (either as a “discretionary transaction,” within the meaning of Rule
16b-3(b)(1), or as a regular transaction, as applicable) (a “Covered
Distribution”).  In the case of a Covered Distribution, if the
liquidation of the Participant’s interest in phantom YUM! Brands Common Stock in
connection with the distribution has not received Board Approval by the time the
distribution would be made if it were not a Covered Distribution, or if it is a
discretionary transaction, then the actual distribution to the Participant shall
be delayed only until the earlier of:

    

    (1)           In
the case of a transaction that is not a discretionary transaction, Board
Approval of the liquidation of the Participant’s interest in the phantom YUM!
Brands Common Stock in connection with the distribution, or

     

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    
 

    (2)           The
date the distribution would no longer violate Section 16 of the Act, e.g., when the Participant is
no longer subject to Section 16 of the Act, or when the time between the
liquidation and an opposite way transaction is sufficient.

    

    7.07           Conformance with Section
409A:

    

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

    

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    

    ARTICLE
VIII – CLAIMS PROCEDURE

    

    8.01           Claims for
Benefits:

    

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

    

    8.02           Appeals of Denied
Claims:

    

    Each
Claimant whose claim for benefits has been denied may file a written appeal for
a review of his or her claim by the Plan Administrator.  The request
for review must be filed by the Claimant within 60 days after he or she received
the notice denying his or her claim.  The decision of the Plan
Administrator will be communicated to the Claimant within 60 days after receipt
of a request for appeal.  The notice shall set forth the basis for the
Plan Administrator's decision.  If special circumstances require an
extension of time for processing the appeal, the Plan Administrator will furnish
notice of the extension to the Claimant prior to the termination of the initial
60-day period and such extension may not exceed one additional, consecutive
60-day period.  In no event shall the Plan Administrator’s decision be
rendered later than 120 days after receipt of a request for appeal.

    

    8.03           Special Claims Procedures
for Disability Determinations:

    

    Notwithstanding
Sections 8.01 and 8.02 to the contrary, if the claim or appeal of the Claimant
relates to Disability benefits, such claim or appeal shall be processed pursuant
to the applicable provisions of Department of Labor Regulation Section
2560.503-1 relating to Disability benefits, including Sections 2560.503-1(d),
2560.503-1(f)(3), 2560.503-1(h)(4) and 2560.503-1(i)(3).

    

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    

    ARTICLE
IX – AMENDMENT AND TERMINATION

    

    9.01           Amendment of
Plan:

    

    The Board
of Directors (or an applicable committee thereof) of the Company has the right
in its sole discretion to amend this Plan in whole or in part at any time and in
any manner, including the manner of making deferral elections, the terms on
which distributions are made, and the form and timing of
distributions.  However, except for mere clarifying amendments
necessary to avoid an inappropriate windfall, no Plan amendment shall reduce the
amount credited to the Account of any Participant as of the date such amendment
is adopted.  Any amendment shall be in writing and adopted by the
Committee.  All Participants and Beneficiaries shall be bound by such
amendment.  Any amendments made to the Plan shall be subject to any
restrictions on amendment that are applicable to ensure continued compliance
under Section 409A.

    

    9.02           Termination of
Plan:

    

    (a)           The
Company expects to continue this Plan, but does not obligate itself to do
so.  The Company, acting by the Board of Directors (or an applicable
committee thereof), reserves the right to discontinue and terminate the Plan at
any time, in whole or in part, for any reason (including a change, or an
impending change, in the tax laws of the United States or any
state).  Termination of the Plan will be binding on all Participants
(and a partial termination shall be binding upon all affected Participants) and
their Beneficiaries, but in no event may such termination reduce the amounts
credited at that time to any Participant's Account.  If this Plan is
terminated (in whole or in part), the termination resolution shall provide for
how amounts theretofore credited to affected Participants' Accounts will be
distributed.

    

    (b)           This
Section is subject to the same restrictions related to compliance with Section
409A that apply to Section 9.01.  In accordance with these
restrictions, the Company intends to have the maximum discretionary authority to
terminate the Plan and make distributions in connection with a change in
ownership or effective control of the Company or a change in ownership of a
substantial portion of the assets of the Company, all within the meaning
of  Section 409A (a “Change in Control”), 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 may be made in
connection with any change in control with respect to deferrals made under this
409A Program.

    

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    

    ARTICLE X
– MISCELLANEOUS

    

    10.01                      Limitation on Participant's
Rights:

    

    Participation
in this Plan does not give any Participant the right to be retained in the
service of the Company.  The Company reserves the right to terminate
the service of any Participant without any liability for any claim against the
Company under this Plan, except for a claim for payment of deferrals as provided
herein.

    

    10.02                      Unfunded Obligation of the
Company:

    

    The
benefits provided by this Plan are unfunded.  All amounts payable
under this Plan to Participants are paid from the general assets of the
Company.  Nothing contained in this Plan requires the Company to set
aside or hold in trust any amounts or assets for the purpose of paying benefits
to Participants.  Neither a Participant, Beneficiary, nor any other
person shall have any property interest, legal or equitable, in any specific
Company asset.  This Plan creates only a contractual obligation on the
part of the Company, and the Participant has the status of a general unsecured
creditor of the Company with respect to amounts of compensation deferred
hereunder.  Such a Participant shall not have any preference or
priority over, the rights of any other unsecured general creditor of the
Company.  No other Company affiliate guarantees or shares such
obligation, and no other Company affiliate shall have any liability to the
Participant or his or her Beneficiary.

    

    10.03                      Other
Plans:

    

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

    

    10.04                      Receipt or
Release:

    

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

    

    10.05                      Governing
Law:

    

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

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    

    10.06                      Gender, Tense and
Examples:

    

    In this
Plan, whenever the context so indicates, the singular or plural number and the
masculine, feminine, or neuter gender shall be deemed to include the
other.  Whenever an example is provided or the text uses the term
“including” followed by a specific item or items, or there is a passage having a
similar effect, such passage of the Plan shall be construed as if the phrase
“without limitation” followed such example or term (or otherwise applied to such
passage in a manner that avoids limitation on its breadth of
application).

    

    10.07                      Successors and Assigns;
Nonalienation of Benefits:

    

    This Plan
inures to the benefit of and is binding upon the parties hereto and their
successors, heirs and assigns; provided, however, that the amounts credited to
the Account of a Participant are not (except as provided in Section 7.05)
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, charge, garnishment, execution or levy of any kind, either
voluntary or involuntary, and any attempt to anticipate, alienate, sell,
transfer, assign, pledge, encumber, charge or otherwise dispose of any right to
any benefits payable hereunder, including, without limitation, any assignment or
alienation in connection with a separation, divorce, child support or similar
arrangement, will be null and void and not binding on the Plan or the
Company.  Notwithstanding the foregoing, the Plan Administrator
reserves the right to make payments in accordance with a divorce decree,
judgment or other court order as and when cash payments are made in accordance
with the terms of this Plan from the Deferral Subaccount of a
Participant.  Any such payment shall be charged against and reduce the
Participant’s Account.

    

    10.08                      Facility of
Payment:

    

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

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    

    

    ARTICLE
XI – AUTHENTICATION

    

    

    The 409A
Program was adopted and approved by the Company’s Board of Directors at its duly
authorized meeting held on November 21, 2008, to be effective as of January 1,
2005, except as provided herein.

    

    
      	 
      	
              YUM!
      BRANDS, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:_________________________________

            
	 
      	
              Name:

            
	 
      	
              Title:

            

    

     

     

     

    
 

    
      33exhib10_10-1.htm

  

    
       

    

    
       

       

      
        
          	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	
                  YUM!
      BRANDS

                
	 
      
	
                  EXECUTIVE
      INCOME

                
	 
      
	
                  DEFERRAL
      PROGRAM

                
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	 
      
	
                  Plan
      Document for the 409A Program

                
	
                  Effective
      as of January 1, 2005

                
	
                  (with
      Amendments through June 30, 2009)

                
	 
      
	 
      
	 
      
	 
      

        

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        
          
            
              	
                      TABLE
      OF CONTENTS

                    
	 
      	
                      Page
      

                    
	
                      ARTICLE I – INTRODUCTION

                    	
                      1

                    
	
                      ARTICLE II – DEFINITIONS

                    	
                      2

                    
	
                      2.01

                    	
                      Account:

                    	
                      2

                    
	
                      2.02

                    	
                      Act:

                    	
                      2

                    
	
                      2.03

                    	
                      Base Compensation:

                    	
                      2

                    
	
                      2.04

                    	
                      Beneficiary:

                    	
                      2

                    
	
                      2.05

                    	
                      Bonus Compensation:

                    	
                      2

                    
	
                      2.06

                    	
                      Code:

                    	
                      3

                    
	
                      2.07

                    	
                      Company:

                    	
                      3

                    
	
                      2.08

                    	
                      Deferral Subaccount:

                    	
                      3

                    
	
                      2.09

                    	
                      Disability:

                    	
                      3

                    
	
                      2.10

                    	
                      Distribution Valuation
Date:

                    	
                      3

                    
	
                      2.11

                    	
                      Election Form:

                    	
                      4

                    
	
                      2.12

                    	
                      Eligible Executive:

                    	
                      4

                    
	
                      2.13

                    	
                      Employer:

                    	
                      4

                    
	
                      2.14

                    	
                      ERISA:

                    	
                      4

                    
	
                      2.15

                    	
                      Executive:

                    	
                      4

                    
	
                      2.16

                    	
                      Fair Market Value:

                    	
                      4

                    
	
                      2.17

                    	
                      409A Program:

                    	
                      5

                    
	
                      2.18

                    	
                      Key Employee:

                    	
                      5

                    
	
                      2.19

                    	
                      Matching Stock Fund:

                    	
                      6

                    
	
                      2.20

                    	
                      NAV:

                    	
                      6

                    
	
                      2.21

                    	
                      Participant:

                    	
                      6

                    
	
                      2.22

                    	
                      Performance Period:

                    	
                      6

                    
	
                      2.23

                    	
                      Phantom Share Equivalent:

                    	
                      6

                    
	
                      2.24

                    	
                      Plan:

                    	
                      6

                    
	
                      2.25

                    	
                      Plan Administrator:

                    	
                      6

                    
	
                      2.26

                    	
                      Plan Year:

                    	
                      7

                    
	
                      2.27

                    	
                      Pre-409A Program:

                    	
                      7

                    
	
                      2.28

                    	
                      Recordkeeper:

                    	
                      7

                    
	
                      2.29

                    	
                      Retirement:

                    	
                      7

                    
	
                      2.30

                    	
                      Second Look Election:

                    	
                      7

                    
	
                      2.31

                    	
                      Section 409A:

                    	
                      7

                    
	
                      2.32

                    	
                      Separation from Service:

                    	
                      8

                    
	
                      2.33

                    	
                      Signing Bonus:

                    	
                      8

                    
	
                      2.34

                    	
                      Specific Payment Date:

                    	
                      8

                    
	
                      2.35

                    	
                      Unforeseeable Emergency:

                    	
                      8

                    
	
                      2.36

                    	
                      U.S.:

                    	
                      9

                    
	
                      2.37

                    	
                      Valuation Date:

                    	
                      9

                    
	
                      2.38

                    	
                      YUM! Brands Organization:

                    	
                      9

                    

            

          

        

      

    

    
      
         

      

      
        -i- 

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    
                      	
                              TABLE
      OF CONTENTS

                            
	 
      	
                              Page
      

                            
	
                              ARTICLE III – ELIGIBILITY AND
      PARTICIPATION

                            	
                              9

                            
	
                              3.01

                            	
                              Eligibility to Participate:

                            	
                              9

                            
	
                              3.02

                            	
                              Termination of Eligibility to
      Defer:

                            	
                              10

                            
	
                              3.03

                            	
                              Termination of
    Participation:

                            	
                              10

                            
	
                              ARTICLE IV – DEFERRAL OF
      COMPENSATION

                            	
                              11

                            
	
                              4.01

                            	
                              Deferral Election:

                            	
                              11

                            
	
                              4.02

                            	
                              Time and Manner of Deferral
      Election:

                            	
                              13

                            
	
                              4.03

                            	
                              Period of Deferral:

                            	
                              15

                            
	
                              4.04

                            	
                              Form of Deferral Payout:

                            	
                              16

                            
	
                              4.05

                            	
                              Second Look Election:

                            	
                              17

                            
	
                              4.06

                            	
                              Signing Bonus Deferrals:

                            	
                              19

                            
	
                              ARTICLE V – INTERESTS OF
      PARTICIPANTS

                            	
                              19

                            
	
                              5.01

                            	
                              Accounting for Participants’
      Interests:

                            	
                              19

                            
	
                              5.02

                            	
                              Investment Options:

                            	
                              20

                            
	
                              5.03

                            	
                              Method of Allocation:

                            	
                              22

                            
	
                              5.04

                            	
                              Vesting of a Participant’s
      Account:

                            	
                              23

                            
	
                              5.05

                            	
                              Risk of Forfeiture:

                            	
                              23

                            
	
                              ARTICLE VI – DISTRIBUTIONS

                            	
                              24

                            
	
                              6.01

                            	
                              General:

                            	
                              24

                            
	
                              6.02

                            	
                              Distributions Based on a Specific Payment
      Date:

                            	
                              25

                            
	
                              6.03

                            	
                              Distributions on Account of a Separation from
      Service:

                            	
                              26

                            
	
                              6.04

                            	
                              Distributions on Account of
      Death:

                            	
                              27

                            
	
                              6.05

                            	
                              Distributions on Account of Unforeseeable
      Emergency:

                            	
                              28

                            
	
                              6.06

                            	
                              Valuation:

                            	
                              29

                            
	
                              6.07

                            	
                              Section 162(m) Compliance:

                            	
                              29

                            
	
                              6.08

                            	
                              Impact of Section 16 of the Act on
      Distributions:

                            	
                              30

                            
	
                              6.09

                            	
                              Actual Payment Date:

                            	
                              30

                            
	
                              ARTICLE VII – PLAN
      ADMINISTRATION

                            	
                              30

                            
	
                              7.01

                            	
                              Plan Administrator:

                            	
                              30

                            
	
                              7.02

                            	
                              Action:

                            	
                              30

                            
	
                              7.03

                            	
                              Powers of the Plan
      Administrator:

                            	
                              30

                            
	
                              7.04

                            	
                              Compensation, Indemnity and
      Liability:

                            	
                              31

                            
	
                              7.05

                            	
                              Withholding:

                            	
                              32

                            
	
                              7.06

                            	
                              Section 16 Compliance:

                            	
                              32

                            
	
                              7.07

                            	
                              Conformance with Section
    409A:

                            	
                              33

                            
	
                              ARTICLE VIII – CLAIMS
    PROCEDURE

                            	
                              33

                            
	
                              8.01

                            	
                              Claims for Benefits:

                            	
                              33

                            
	
                              8.02

                            	
                              Appeals of Denied Claims:

                            	
                              34

                            
	
                              8.03

                            	
                              Special Claims Procedures for Disability
      Determinations:

                            	
                              34

                            

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        -ii- 

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  TABLE
      OF CONTENTS

                
	 
      	
                  Page

                
	
                  ARTICLE IX – AMENDMENT AND
      TERMINATION

                	
                  34

                
	
                  9.01

                	
                  Amendment of Plan:

                	
                  34

                
	
                  9.02

                	
                  Termination of Plan:

                	
                  34

                
	
                  ARTICLE X – MISCELLANEOUS

                	
                  35

                
	
                  10.01

                	
                  Limitation on Participant’s
      Rights:

                	
                  35

                
	
                  10.02

                	
                  Unfunded Obligation of Individual
      Employer:

                	
                  35

                
	
                  10.03

                	
                  Other Plans:

                	
                  35

                
	
                  10.04

                	
                  Receipt or Release:

                	
                  36

                
	
                  10.05

                	
                  Governing Law:

                	
                  36

                
	
                  10.06

                	
                  Adoption of Plan by Related
      Employers:

                	
                  36

                
	
                  10.07

                	
                  Gender, Tense and Examples:

                	
                  36

                
	
                  10.08

                	
                  Successors and Assigns; Nonalienation of
      Benefits:

                	
                  36

                
	
                  10.09

                	
                  Facility of Payment:

                	
                  37

                
	
                  ARTICLE XI – AUTHENTICATION

                	
                  38

                
	
                  APPENDIX

                	 
      	
                  Appendix

                
	
                  APPENDIX
      ARTICLE A – RDC TRANSFERS

                	
                  A-1

                
	
                  APPENDIX
      ARTICLE B – CERTAIN TRANSITION PROVISIONS

                	
                  B-1

                

        

      

    

    

    

    
      
         

      

      
        -iii- 

        
          

        

      

      
         

      

    

    ARTICLE I
– INTRODUCTION

    

    YUM!
Brands, Inc. (the “Company”) established the YUM! Brands Executive Income
Deferral Program (the “Plan”) in 1997 to permit Eligible Executives to defer
compensation and other awards made under its executive compensation
programs.  Deferrals under the Plan that were earned and vested on or
before December 31, 2004 are governed by a separate set of documents that set
forth the pre-Section 409A terms of the Plan (the “Pre-409A
Program”).  The terms of the Plan that are applicable to deferrals
that are subject to Section 409A, i.e., generally, deferred
amounts that are earned or vested after December 31, 2004 (the “409A Program”)
are governed by this document.  This document sets forth the 409A
Program and is effective as of January 1, 2005 (the “Effective
Date”).  Except as otherwise provided herein, this document reflects
the provisions in effect from and after January 1, 2005, and the rights and
benefits of individuals who are Participants in the Plan from and after that
date (and of those claiming through or on behalf of such individuals) shall be
governed by the provisions of this document in the case of actions and events
occurring on or after the Effective Date with respect to deferrals that are
subject to the 409A Program.  For purposes of the preceding sentence,
the term “actions and events” shall include all distribution trigger events and
dates.  The rights and benefits with respect to persons who only
participated in the Plan prior to January 1, 2005 shall be governed by the
applicable provisions of the Pre-409A Program documents that were in effect at
such time, and shall not be governed by the 409A Program documents.

    

    Together,
the documents for the 409A Program and the documents for the Pre-409A Program
describe the terms of a single plan.  However, amounts subject to the
terms of the 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 permit the Pre-409A Program to remain exempt from Section 409A, and
the administration of the Plan shall be consistent with this
intent.

    

    For
federal income tax purposes, the Plan is intended to be a nonqualified deferred
compensation plan that is unfunded and unsecured.  For purposes of
ERISA, the Plan is intended to be a plan described in Sections 201(2), 301(a)(3)
and 401(a)(1) of ERISA providing benefits to a select group of management or
highly compensated employees.

    

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    ARTICLE
II – DEFINITIONS

    

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

    

    2.01           Account:

    

    The
account maintained for a Participant on the books of his or her Employer to
determine, from time to time, the Participant’s interest under this
Plan.  The balance in such Account shall be determined by the
Recordkeeper pursuant to any guidelines established by the Plan
Administrator.  Each Participant’s Account shall consist of at least
one Deferral Subaccount for each separate deferral under
Section 4.01.  In accordance with Section 5.05, some or all of a
separate deferral may be held in a Risk of Forfeiture Subaccount.  The
Recordkeeper may also establish such additional Deferral Subaccounts as it deems
necessary for the proper administration of the Plan.  Except as
provided in Section 5.05, the Recordkeeper may also combine Deferral Subaccounts
to the extent it deems separate accounts are not needed for sound recordkeeping.
Where appropriate, a reference to a Participant’s Account shall include a
reference to each applicable Deferral Subaccount that has been established
thereunder.

    

    2.02           Act:

    

    The
Securities Exchange Act of 1934, as amended from time to time.

    

    2.03           Base
Compensation:

    

    An
Eligible Executive’s adjusted base salary, to the extent payable in U.S. dollars
from an Employer’s U.S. payroll (as modified by the provisions of Section
3.01(a)).  For any applicable payroll period, an Eligible Executive’s
adjusted base salary shall be determined after reductions for applicable tax
withholdings, tax levies, garnishments, other legally required deductions, and
Executive authorized deductions that are made under any Code Section 125
plans sponsored by the Executive’s Employer or the Company.

    

    2.04           Beneficiary:

    

    The
person or persons (including a trust or trusts) properly designated by a
Participant, as determined by the Recordkeeper (or the Plan Administrator, as
applicable), to receive the amounts in one or more of the Participant’s Deferral
Subaccounts in the event of the Participant’s death in accordance with Section
4.02(d).

    

    2.05           Bonus
Compensation:

    

    An
Eligible Executive’s adjusted annual incentive award under his or her Employer’s
annual incentive plan and/or an Executive incentive compensation plan (including
the YUM! Brands Leaders Bonus Program), to the extent payable in U.S. dollars
from an Employer’s U.S. payroll (as modified by the provisions of Section
3.01(a)).  An Eligible Executive’s annual incentive awards shall be
adjusted to reduce them for applicable tax withholdings, tax levies,
garnishments, other legally required deductions, and Executive authorized
deductions that are made under any Code Section 125 plans sponsored by the
Executive’s Employer or the Company.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    2.06           Code:

    

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

    

    2.07           Company:

    

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

    

    2.08           Deferral Subaccount:

    

    A
subaccount of a Participant’s Account maintained to reflect his or her interest
in the Plan attributable to each deferral (or separately tracked portion of a
deferral) of Base Compensation, Bonus Compensation and Signing Bonus, and
earnings or losses credited to such subaccount in accordance with Section
5.01(b).

    

    2.09           Disability:

    

    A
Participant shall be considered to suffer from a Disability, if, in the judgment
of the Plan Administrator (based on the provisions of Section 409A and any
guidelines established by the Plan Administrator for this purpose), the
Participant –

    

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

    

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

    

    Solely
for those Participants who are otherwise eligible for Social Security, a
Participant who is determined to be totally disabled by the Social Security
Administration will be deemed to satisfy the requirements of Subsection (a), and
a Participant who has not been determined to be totally disabled by the Social
Security Administration will be deemed to not meet the requirements of
Subsection (a).

    

    2.10           Distribution Valuation
Date:

    

    Each date
as specified by the Plan Administrator from time to time as of which Participant
Accounts are valued for purposes of a distribution from a Participant’s Account.
The current Distribution Valuation Dates are March 31, June 30, September 30 and
December 31.  Any current Distribution Valuation Date may be changed
by the Plan Administrator, provided that such change does not result in a change
in when deferrals are paid out that is impermissible under
Section 409A.  Values are determined as of the close of a
Distribution Valuation Date or, if such date is not a business day, as of the
close of the preceding business day.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    2.11           Election Form:

    

    The form
prescribed by the Plan Administrator on which a Participant specifies the amount
of his or her Base Compensation and Bonus Compensation to be deferred and the
timing and form of his or her deferral payout, pursuant to the provisions of
Article IV. An Election Form need not exist in a paper format, and it is
expressly authorized that the Plan Administrator may make available for use such
technologies, including voice response systems, Internet-based forms and any
other electronic forms for use as an Election Form, as it deems appropriate from
time to time.

    

    2.12           Eligible
Executive:

    

    The term,
Eligible Executive, shall have the meaning given to it in Section
3.01(a)(1).

    

    2.13           Employer:

    

    The
Company and each division, subsidiary or affiliate of the Company (if any) that
is currently designated as an Employer for purposes of this Plan by the Plan
Administrator.  An entity shall be an Employer hereunder only for the
period that it is (i) so designated by the Plan Administrator, and
(ii) a member of the YUM! Brands Organization.

    

    2.14           ERISA:

    

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

    

    2.15           Executive:

    

    Any
person in a salaried classification of an Employer who (i) is receiving
remuneration for personal services rendered in the employment of the Employer,
and (ii) is paid in U.S. dollars from the Employer’s U.S.
payroll.  Notwithstanding the foregoing sentence, any person meeting
the requirements of the foregoing sentence who is working outside the U.S. shall
not be included as an Executive hereunder, if applicable local law of the
country in which the person is working (e.g., local law relating to
the payment of compensation) does not permit the person to defer the receipt of
compensation that is eligible for deferral hereunder.

    

    2.16          Fair Market Value:

    

    For
purposes of converting a Participant’s deferrals to phantom YUM! Brands Common
Stock as of any date, the Fair Market Value of such stock is the closing price
on such date (or if such date is not a trading date, the first date immediately
following such date that is a trading date) for YUM! Brands Common Stock as
reported on the composite tape for securities listed on the New York Stock
Exchange, Inc., rounded to four decimal places.  For purposes of
determining the value of a Plan distribution, the Fair Market Value of phantom
YUM! Brands Common Stock is determined as the closing price on the applicable
Distribution Valuation Date for YUM! Brands Common Stock as reported on the
composite tape for securities listed on the New York Stock Exchange, Inc.,
rounded to four decimal places.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    2.17           409A
Program:

    

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

    

    2.18           Key
Employee:

    

    The
individuals identified in accordance with the principles set forth
below.

    

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

    

    (1)           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));

    

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

    

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

    

    For
purposes of (1) above, no more than 50 employees identified in the order of
their annual compensation 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); provided, however, that effective as of the
Key Employee identification date that occurs on December 31, 2009, annual
compensation shall not include compensation excludible from an employee’s gross
income on account of the location of the services or the identity of the
employer that is not effectively connected with the conduct of a trade or
business in the United States, in accordance with Treasury Regulation Section
1.415(c)-2(g)(5)(ii).   The Plan Administrator shall determine
who is a Key Employee in accordance with Code Section 416(i) and the applicable
regulations and other guidance of general applicability issued thereunder or in
connection therewith (provided, that Code Section 416(i)(5) shall not apply in
making such determination), and provided further that the applicable year shall
be determined in accordance with Section 409A and that any modification of the
foregoing definition that applies under Section 409A shall be taken into
account.

    

    (b)           Rule of Administrative
Convenience.  Effective from and after January 1, 2005,
notwithstanding the foregoing, the Plan Administrator shall treat all
Participants as a Key Employee.

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      

      2.19           Matching Stock
Fund:

      

      A phantom
investment fund that permits an Eligible Executive to defer Bonus Compensation
and a Signing Bonus for phantom investment solely in YUM! Brands Common Stock
which entitles the Eligible Executive to a matching contribution of YUM! Brands
Common Stock, in accordance with Section 5.02(b).

      

      2.20           NAV:

      

      The net
asset value of a phantom unit in one of the phantom funds offered for investment
under the Plan, determined as of any date in the same manner as applies on that
date under the actual fund that is the basis of the phantom fund offered by the
Plan.

2.21           Participant:

    

    Any
Executive who is qualified to participate in this Plan in accordance with
Section 3.01 and who has an Account.  An active Participant is
one who is currently deferring under Section 4.01.

    

    2.22           Performance
Period:

    

    The
12-month period (which shall generally correspond to the calendar year) for
which Bonus Compensation is calculated and determined.  A Performance
Period shall be deemed to relate to the Plan Year in which the Performance
Period ends.

    

    2.23           Phantom Share
Equivalent:

    

    The
number of phantom shares of YUM! Common Stock determined by dividing a
particular deferral amount by the Fair Market Value of a share of YUM! Brands
Common Stock on the applicable Valuation Date.

    

    2.24           Plan: 

    

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

    

    2.25           Plan
Administrator:

    

    The
Compensation Committee of the Board of Directors of the Company (Compensation
Committee) or its delegate or delegates, which shall have the authority to
administer the Plan as provided in Article VII.  As of the Effective
Date, the Company’s Chief People Officer is delegated the responsibility for the
operational administration of the Plan.  In turn, the Chief People
Officer has the authority to re-delegate operational responsibilities to other
persons or parties.  As of the Effective Date, the Chief People
Officer has re-delegated certain operational responsibilities to the
Recordkeeper and to the Company’s Executive Compensation
Department.  However, references in this document to the Plan
Administrator shall be understood as referring to the Compensation Committee,
the Chief People Officer, the Company’s Executive Compensation Department and
any other parties delegated by the Chief People Officer other than the
Recordkeeper. All delegations made under the authority granted by this Section
are subject to Section 7.06.

     

    
 

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    2.26           Plan
Year:

    

    The
12-consecutive month period beginning on January 1 and ending on
December 31.

    

    2.27           Pre-409A
Program:

    

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

     

    
      2.28           Recordkeeper:

      

      For any
designated period of time, the party that is delegated the responsibility,
pursuant to the authority granted in the definition of Plan Administrator, to
maintain the records of Participant Accounts, process Participant transactions
and perform other duties in accordance with any procedures and rules established
by the Plan Administrator.

      

      2.29           Retirement:

      

      A
Participant’s Separation from Service after attaining (whichever of the
following occurs earlier): (a) at least age 55 with 10 or more years of service,
or (b) at least age 65 with 5 or more years of service.  A
Participant’s “years of service” shall be the Participant’s “years of service”
earned under the YUM! Brands Retirement Plan.  If a Participant is not
participating in the YUM! Brands Retirement Plan, “years of service” shall be
determined based on the rules applicable to the YUM! Brands Retirement Plan,
assuming the Participant was participating in such plan.

      

      2.30           Second Look
Election:

      

      The term,
Second Look Election, shall have the meaning given to it in Section
4.05.

      

      2.31           Section
409A:

      

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

      

        
          
             

          

          
            7

            
              

            

          

          
             

          

        

    

    2.32           Separation from
Service:

    

    A
Participant’s separation from service as defined in Section 409A, including the
rule that a Participant who is Disabled incurs a Separation from Service 29
months after the Participant is no longer actively rendering services to his/her
Employer or the Company.  In the event a Participant also provides
services other than as an Executive for the Company and its affiliates, as
determined under the prior sentence, such other services shall not be taken into
account in determining when a Separation from Service occurs to the extent
permitted under Treas. Reg. § 1.409A-1(h)(5).  The term may also be
used as a verb (i.e.,
“Separates from Service”) with no change in meaning.

    

    2.33           Signing
Bonus:

    

    Cash
compensation that is paid to an Eligible Executive upon acceptance of an offer
of employment with his/her Employer, to the extent payable in U.S. dollars from
an Employer’s U.S. payroll (as modified by the provisions of Section
3.01(a)).  An Eligible Executive’s Signing Bonus shall be determined
after reductions for applicable tax withholdings, tax levies, garnishments,
other legally required deductions, and Executive authorized deductions that are
made under any Code Section 125 plans sponsored by the Executive’s Employer
or the Company.

     

    
      2.34           Specific Payment
Date:

      

      A
specific date selected by an Eligible Executive that triggers a lump sum payment
of a deferral or the start of installment payments for a deferral, as provided
in Section 4.03. The Specific Payment Dates that are available to be
selected by Eligible Executives shall be determined by the Plan Administrator,
and the currently available Specific Payment Dates shall be reflected on the
Election Forms that are made available from time to time by the Plan
Administrator.  As of the Effective Date, the Specific Payment Dates
shall be January 1, April 1, July 1, and October 1.  In the event that
an Election Form only provides for selecting a month or a calendar quarter and a
year as the Specific Payment Date, the first day of the month or the first day
of the calendar quarter that is selected shall be the Specific Payment
Date.

      

      2.35           Unforeseeable
Emergency:

      

      A severe
financial hardship to the Participant resulting from (a) an illness or accident
of the Participant, the Participant’s spouse, the Participant’s Beneficiary or
the Participant’s dependent (as defined in Code Section 152(a), without
regard to Code Sections 152(b)(1), 152(b)(2) and 152(d)(1)(B)); (b) loss of the
Participant’s property due to casualty; or (c) any other similar extraordinary
and unforeseeable circumstances arising as a result of events beyond the control
of the Participant. The Recordkeeper shall determine the occurrence of an
Unforeseeable Emergency in accordance with Treas. Reg. §1.409A-3(i)(3) and any
guidelines established by the Plan Administrator.

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    2.36           U.S.:

    

    The
United States, comprised of its 50 states, the District of Columbia, and its
possessions (other than Puerto Rico).

    

    2.37           Valuation
Date:

    

    Each
business day, as determined by the Recordkeeper, as of which Participant
Accounts are valued in accordance with Plan procedures that are currently in
effect. In accordance with procedures that may be adopted by the Plan
Administrator, any current Valuation Date may be changed.

    

    2.38           YUM! Brands
Organization:

    

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

    

    ARTICLE
III – ELIGIBILITY AND PARTICIPATION

    

    3.01           Eligibility to
Participate:

    

    (a)             In
General.

    

    (1)           Subject
to Paragraph (2) below and the election timing rules of Article IV, an Executive
shall be eligible to defer compensation under the Plan upon (i) being hired by
an Employer as an Executive classified as Level 12 or above (and while he or she
remains so classified) or (ii) being promoted by an Employer from below Level 12
into a Level 12 or above position.  However, an Eligible Executive who
makes an irrevocable election to participate for a Plan Year shall remain an
Eligible Executive for the remainder of the Plan Year (i) regardless of whether
such Executive is subsequently classified in a salary band below Level 12 or
(ii) regardless of whether such Executive subsequently is paid in non-U.S.
dollars or is paid from a non-U.S. payroll; provided that the occurrence of such
events shall cut off any election that has been made that has not yet required
to become irrevocable in order to be timely in accordance with Section
409A.

    

    (2)           Notwithstanding
Paragraph (1) above, from time to time the Plan Administrator may modify,
limit or expand the class of Executives eligible to defer hereunder, pursuant to
criteria for eligibility that need not be uniform among all or any group of
Executives; provided that the Plan Administrator may remove an Executive from
eligibility to participate effective only as of the end of a Plan
Year.

     

    (b)           During
the period an individual satisfies all of the eligibility requirements of this
Section, he or she shall be referred to as an Eligible Executive.

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      
        (c)           Each
Eligible Executive becomes an active Participant on the date an amount is first
withheld from his or her compensation pursuant to an Election Form submitted by
the Executive to the Recordkeeper (or, if authorized, the Plan Administrator)
under Section 4.01.

      

       

      3.02           Termination of Eligibility
to Defer:

      

      (a)           General.  An
individual’s eligibility to participate actively by making deferrals (or a
deferral election) under Article IV shall cease upon the “Election Termination
Date” (as defined below) occurring after the earliest of:

       

      (1)          Subject
to Section 4.01(b), the date he or she Separates from Service; or

       

      (2)          The
date that the Executive ceases to be eligible under criteria described in
Section 3.01(a).

      

      An
individual’s “Election Termination Date” shall be a date as soon as
administratively practicable following the date in subsection (a) or (b) (or
such other date as may be determined in accordance with rules of the Plan
Administrator); provided that an Election Termination Date shall not affect any
election already made that otherwise has become irrevocable in accordance with
the rules of this Plan.  However, the occurrence of an Election
Termination Date shall terminate any election that has been made that is not yet
required to become irrevocable in order to be timely in accordance with Section
409A.

    (b)           Special Rules for an
Applicable Severance Program.  Notwithstanding the provisions
in subsection (a) above, an individual’s eligibility to participate actively in
this Plan by making deferrals (or a deferral election) under Article IV shall
terminate to the extent provided in a severance program or severance arrangement
of a Participant’s Employer or the Company, or an Employer’s employment or
termination agreement with a Participant providing for severance pay and/or a
general release of claims against the Employer (an “Approved Severance
Program”).  However, an Eligible Executive who makes an irrevocable
election to participate for a Plan Year shall remain an Eligible Executive for
the remainder of the Plan Year to the extent that he or she is receiving or will
receive Base Compensation and Bonus Compensation under the Approved Severance
Program; provided that the participation by a Participant in an Approved
Severance Program (to the extent included in writing in the Approved Severance
Program) shall cut off any election that has been made that has not yet required
to become irrevocable in order to be timely in accordance with Section
409A.

    

    3.03           Termination of
Participation:

    

    An
individual, who has been an active Participant under the Plan, ceases to be a
Participant on the date his or her Account is fully paid out; provided, however,
even if a Participant’s Account is fully paid out, participation shall continue
under the Plan if there is an expectation that the Participant shall be entitled
to future benefits under the Plan or that a deferral will be credited to the
Participant’s Account in the future (e.g., a deferral of Bonus
Compensation that is paid in a future year).

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    ARTICLE
IV – DEFERRAL OF COMPENSATION

    

    4.01           Deferral
Election:

    

    (a)           Deferrals of Base
Compensation.

    

    (1)           General.  Subject
to the provisions of subsection (a)(2) below, each Eligible Executive may make
an election to defer Base Compensation under the Plan in any whole percentage up
to 85% of his or her Base Compensation in the manner described in
Section 4.02.  A newly Eligible Executive may only defer the
portion of his or her eligible Base Compensation that is earned for services
performed after the date of his or her election; provided that any Eligible
Executive that becomes a new Eligible Executive after November 22nd (or if
such day is not a business day, the first business day that occurs immediately
prior to such day) of a Plan Year shall not be eligible to defer Base
Compensation earned for services performed in the remainder of such Plan
Year.  Subject to the foregoing sentence, any Base Compensation
deferred by an Eligible Executive for a Plan Year shall be deducted each pay
period during the Plan Year for which he or she has Base Compensation and is an
Eligible Executive.  Base Compensation paid after the end of a Plan
Year for services performed during the final payroll period of the preceding
Plan Year shall be treated as Base Compensation for services in the subsequent
Plan Year.

    

    (2)           Special Rule for Significant
Deferrals.  Notwithstanding subsection (a)(1) above, effective
for Base Compensation that is paid from and after January 1, 2008, an Eligible
Executive who is classified as below Level 14 may not elect to defer 50% or more
of his or her Base Compensation for a Plan Year, unless such Eligible Executive
also (i) elects to defer 100% of his or her Bonus Compensation for the same Plan
Year or (ii) confirms in a separate writing (that is in addition to the Election
Form) that he or she has elected to defer 50% or more of his or her Base
Compensation for such Plan Year.  The separate writing discussed in
clause (ii) above must be submitted within the time frame required under Section
4.02(a)(1) and shall satisfy any other requirements as the Plan Administrator
shall require for this purpose.  If an applicable Eligible Executive
does not satisfy either clause (i) or (ii) above, then any election by the
Eligible Executive to defer 50% or more of Base Compensation for a Plan Year
shall be treated as void and shall not become effective under Section
409A.

    

    (b)           Deferrals of Bonus
Compensation.

    

    (1)           General Rules. Each
Eligible Executive may make an election to defer under the Plan any whole
percentage (up to 100%) of his or her Bonus Compensation in the manner described
in Section 4.02.  The percentage of Bonus Compensation deferred
by an Eligible Executive for a Plan Year will be deducted from his or her
payment under the applicable compensation program at the time it would otherwise
be paid, provided he or she satisfies all conditions for payment that would
apply in the absence of a deferral. In addition, for the Plan Year in which the
Participant incurs a Separation from Service, the Participant shall be eligible
to defer Bonus Compensation paid for the Performance Period that relates to the
Plan Year in which the Participant incurred the Separation from Service, if the
Participant makes a valid and irrevocable deferral election prior to his or her
Separation from Service.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    (2)           Special Rules for Promoted
Eligible Executives. An Eligible Executive that becomes an Eligible
Executive during a Plan Year as a result of a promotion from below Level 12 into
a position that is in Level 12 or above shall only be eligible to defer Bonus
Compensation earned for the Performance Period relating to the Plan Year in
which he or she is promoted, if the Eligible Executive (i) is a
bonus-eligible Executive for all of such Plan Year and (ii) is promoted by
June 20th (or if
such day is not a business day, the first business day that occurs immediately
prior to such day) of the Plan Year in which the promotion occurs.  If
a promoted Eligible Executive does not satisfy the requirements of the previous
sentence, he or she shall not be eligible to defer Bonus Compensation earned for
the Performance Period relating to the Plan Year in which he or she is
promoted.

    

    (3)           Special Rules for Newly
Hired Eligible Executives. An Eligible Executive that becomes an Eligible
Executive during a Plan Year as a result of becoming first employed by the YUM!
Brands Organization shall only be eligible to defer Bonus Compensation earned
for the Performance Period relating to the Plan Year in which he or she is newly
hired, if the Eligible Executive is a bonus-eligible Executive for such Plan
Year.  In such event, the rules for the time and manner for completing
the initial deferral election in Section 4.02(b) shall apply, which are
structured so that the proration rules of Treas. Reg. 1.401A-2(a)(7) are
inapplicable.  Thus, if a valid Election Form is received prior to the
date on which the Eligible Executive becomes an Executive and the Election Form
is effective under Section 4.02(b) as of the date on which the Eligible
Executive becomes an Executive, then the Executive shall be deemed to receive
all of his or her Bonus Compensation for the Plan Year in which he or she
becomes an Eligible Executive after the date of the election.

    

    (4)           Performance Criteria.
Notwithstanding Subsections (b)(1), (b)(2) and (b)(3) above, an Eligible
Executive shall not be eligible to defer Bonus Compensation for a Plan Year
unless (i) the Bonus Compensation is contingent on the satisfaction of
organizational or individual performance criteria for the Performance Period
that relates to the Plan Year, (ii) such criteria have been established in
writing by not later than 90 days after the beginning of the applicable
Performance Period, and (iii) the Bonus Compensation otherwise satisfies the
requirements for performance-based compensation under Section 409A.

    

    (c)           Election Form Rules.
To be effective in deferring Base Compensation or Bonus Compensation, an
Eligible Executive’s Election Form must set forth the percentage of Base
Compensation or Bonus Compensation (whichever applies) to be deferred, the
deferral period under Section 4.03, the form of payment under
Section 4.04, and any other information that may be required by the Plan
Administrator from time to time. In addition, the Election Form must meet the
requirements of Section 4.02. It is contemplated that an Eligible Executive
will specify the investment choice under Section 5.02 (in multiples of 1%)
for the Eligible Executive’s deferral. However, this is not a condition for
making an effective election.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    4.02           Time and Manner of Deferral
Election:

    

    (a)           Deferrals of Base
Compensation.

    

    (1)           General.  An
Eligible Executive must make a deferral election for a Plan Year with respect to
Base Compensation no later than December 31 of the year prior to the Plan
Year in which the Base Compensation would otherwise be
paid.  Notwithstanding the prior sentence, the Plan Administrator may
adopt policies and procedures that encourage or require earlier submission of
Election Forms , but in which case any requirement for the earlier submission of
an Election Form may be waived (but not beyond the date specified by the first
sentence of this paragraph) by the Plan Administrator to prevent undue hardship
for one or more Eligible Executives.  If December 31 is not a
business day, the deadline shall be the preceding day that is a business
day.

    

    (2)           New Eligible
Executives.  An individual who newly becomes an Eligible
Executive will have 30 days from the date the individual becomes an Eligible
Executive to make a deferral election with respect to Base Compensation that is
earned for services performed after the election is received (the “30-Day
Election Period”).  Notwithstanding the prior sentence, the Plan
Administrator may adopt policies and procedures that encourage or require
earlier submission of Election Forms in this situation, but in which case any
requirement for the earlier submission of an Election Form may be waived (but
not beyond the date specified by the first sentence of this paragraph) by the
Plan Administrator to prevent undue hardship for one or more Eligible
Executives.  The 30-Day Election Period may be used to make an
election for Base Compensation that otherwise would be paid in the Plan Year in
which the individual becomes an Eligible Executive. In addition, the 30-Day
Election Period may be used to make an election for Base Compensation that would
otherwise be paid in the next Plan Year (i.e., the Plan Year following
when the individual becomes an Eligible Executive), if the individual becomes an
Eligible Executive not later than December 31 of a Plan Year. Thus, if a
Base Compensation deferral election for a Plan Year is made in reliance on the
30-day rule, then the Plan Administrator shall apply the restriction that the
election may only apply to Base Compensation earned for services performed after
the date the election is received.

    

    (b)           Deferrals of Bonus
Compensation.

    

    (1)             Continuing and Newly
Promoted Executives.  An Eligible Executive must make a
deferral election with respect to his or her Bonus Compensation at least six
months prior to the end of the Performance Period for which the applicable Bonus
Compensation is paid, and this election will be the Eligible Executive’s bonus
deferral election for the Plan Year to which the Performance Period
relates.  This applies to both continuing Eligible Executives and
individuals who newly become Eligible Executives due to a promotion.
Accordingly, if an individual becomes an Eligible Executive during a Plan Year
as a result of a promotion and is eligible to defer Bonus Compensation under
Section 4.01(b)(2) for such Plan Year, such Eligible Executive must make a
deferral election for Bonus Compensation that is earned for the Performance
Period that relates to the Plan Year in which he or she is promoted at least six
months prior to the end of the applicable Performance
Period.  Notwithstanding the first sentence of this paragraph, the
Plan Administrator may adopt policies and procedures that encourage or require
earlier submission of Election Forms for Bonus Compensation, but in which case
any requirement for the earlier submission of an Election Form may be waived
(but not beyond the date specified by the first sentence of this paragraph) by
the Plan Administrator to prevent undue hardship for one or more Eligible
Executives.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    (2)             Newly Hired Eligible
Executives.  An Eligible Executive that becomes an Eligible
Executive during a Plan Year as a result of becoming first employed by the YUM!
Brands Organization and is eligible to make a deferral of Bonus Compensation
under Section 4.01(b) for such Plan Year must make such election as follows
–

    

    (A)           If
such Eligible Executive is newly hired by June 20th (or if
such day is not a business day, the immediately preceding business day), such
Eligible Executive must make a deferral election for Bonus Compensation that is
earned for the Performance Period that relates to the Plan Year in which he or
she is newly hired at least six months prior to the end of the applicable
Performance Period; and

    

    (B)           If
such Eligible Executive is hired after June 20th (or if
such day is not a business day, the immediately preceding business day), such
Eligible Executive must submit a deferral election prior to his or her hire date
or otherwise prior to rendering services as an Executive, and such Election Form
will be effective immediately upon the individual’s hire date or otherwise upon
commencement of his or her services as an Executive.

    

    Notwithstanding
subparagraph (A) above, the Plan Administrator may adopt policies and procedures
that encourage or require earlier submission of Election Forms for Bonus
Compensation, but in which case any requirement for the earlier submission of an
Election Form may be waived (but not beyond the date specified by the first
sentence of this paragraph) by the Plan Administrator to prevent undue hardship
for one or more Eligible Executives.

    

    (c)             General
Provisions.  A separate deferral election under (a) or
(b) above must be made by an Eligible Executive for each category of a Plan
Year’s compensation that is eligible for deferral. If a properly completed and
executed Election Form is not actually received by the Recordkeeper (or, if
authorized, the Plan Administrator) by the prescribed time in (a) and
(b) above, the Eligible Executive will be deemed to have elected not to
defer any Base Compensation or Bonus Compensation, as the case may be, for the
applicable Plan Year.  Except as provided in the next sentence, an
election is irrevocable once received and determined by the Plan Administrator
to be properly completed (and such determination shall be made not later than
the last date under Section 409A for making the election in
question).  Increases or decreases in the amount or percentage a
Participant elects to defer shall not be permitted during a Plan
Year.  Notwithstanding the foregoing, effective as of January 1, 2009,
if a Participant receives a hardship distribution under a cash or deferred
profit sharing plan that is sponsored by a member of the YUM! Brands
Organization and such plan requires that deferrals under such plan be suspended
for a period of time following the hardship distribution, the Plan Administrator
may cancel the Participant’s deferral election under this Plan so that no
deferrals shall be made during such suspension period.  If an election
is cancelled because of a hardship distribution in accordance with the prior
sentence, such cancellation shall permanently apply to the deferral election or
elections for any Plan Year covered by such suspension period and the
Participant will only be eligible to make a new deferral election for the Plan
Year that begins after the end of the suspension period pursuant to the rules in
Sections 4.01 and 4.02.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    (d)             Beneficiaries.  A
Participant may designate on the Election Form (or in some other manner
authorized by the Plan Administrator) one or more Beneficiaries to receive
payment, in the event of his or her death, of the amounts credited to his or her
Account; provided that, to be effective, any Beneficiary designation must be in
writing, signed by the Participant, and must meet such other standards
(including any requirement for spousal consent) as the Plan Administrator or
Recordkeeper shall require from time to time.  The Beneficiary
designation must also be filed with the Recordkeeper (or the Plan Administrator,
if applicable) prior to the Participant’s death.  An incomplete
Beneficiary designation, as determined by the Recordkeeper or Plan
Administrator, shall be void and of no effect.  In determining whether
a Beneficiary designation that relates to the Plan is in effect, unrevoked
designations that were received under the Pre-409A Program or prior to the
Effective Date shall be considered.  A Beneficiary designation of an
individual by name remains in effect regardless of any change in the designated
individual’s relationship to the Participant.  A Beneficiary
designation solely by relationship (for example, a designation of “spouse,” that
does not give the name of the spouse) shall designate whoever is the person in
that relationship to the Participant at his or her death.  If more
than one Beneficiary is specified and the Participant fails to indicate the
respective percentage applicable to two or more Beneficiaries, then each
Beneficiary for whom a percentage is not designated will be entitled to an equal
share of the portion of the Account (if any) for which percentages have not been
designated. At any time, a Participant may change a Beneficiary designation for
his or her Account in a writing that is signed by the Participant and filed with
the Recordkeeper (or Plan Administrator, if applicable) prior to the
Participant’s death, and that meets such other standards as the Plan
Administrator shall require from time to time.  An individual who is
otherwise a Beneficiary with respect to a Participant’s Account ceases to be a
Beneficiary when all payments have been made from the Account.

    

    4.03           Period of
Deferral:

    

    An
Eligible Executive making a deferral election shall specify a deferral period on
his or her Election Form by designating either a Specific Payment Date and/or
the date he or she incurs a Separation from Service.  In the event
that no deferral period is selected, the default shall be Separation from
Service.  In no event shall an Eligible Executive’s deferral period
end later than his or her 80th
birthday, regardless of whether the Participant chose a single lump sum or
installments as the form of payment.  Notwithstanding an Eligible
Executive’s actual election of a Specific Payment Date and/or Separation from
Service, an Eligible Executive shall be deemed to have elected a period of
deferral of not less than:

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      (a)              For
Base Compensation, at least two (2) years after the end of the Plan Year during
which the Base Compensation would have been paid absent the deferral;
and

      

      (b)              For
Bonus Compensation, at least two (2) years after the date the Bonus Compensation
would have been paid absent the deferral.

      

      In the
case of a deferral to a Specific Payment Date, if an Eligible Executive’s
Election Form either fails to specify a period of deferral or specifies a period
less than the applicable minimum, the Eligible Executive shall be deemed to have
selected a Specific Payment Date equal to the minimum period of deferral as
provided in subsections (a) and (b) above.  In the case of a
deferral to Separation from Service, if an Eligible Executive’s Election Form
specifies Separation from Service and the Eligible Executive Separates from
Service prior to the end of the minimum period of deferral as provided in
subsections (a) and (b) above, the applicable Deferral Subaccount(s) shall be
distributed after the end of the applicable minimum deferral period subject to
the provisions of Section 6.03.

    

    4.04           Form of Deferral
Payout:

    

    An
Eligible Executive making a deferral election shall specify a form of payment on
his or her Election Form by designating either a lump sum payment or installment
payments to be paid over a period of no more than 20 years, and not later than
the Executive’s 80th
birthday. Any election for installment payments shall also specify (a) the
frequency for which installment payments shall be paid, which shall be
quarterly, semi-annually and annually and (b) the fixed number of years
over which installments are to be paid, subject to the maximums
above.  If an Eligible Executive elects installments for a period
extending beyond the Eligible Executive’s 80th
birthday or beyond 20 years, such election shall be treated as an election for
installments over a period of whole and partial years that ends on the Eligible
Executive’s 80th
birthday or at the end of 20 years; provided that the amounts to be distributed
in connection with the installments prior to the Eligible Executive’s 80th
birthday or prior to the end of 20 years shall be determined in accordance with
Section 6.06 and his or her election by assuming that the installments shall
continue for the full number of installments, with the entire remaining amount
of the relevant Deferral Subaccount distributed on the Eligible Executive’s
80th
birthday or at the end of 20 years.  In the event that no form of
payment election is made, the default shall be a lump sum payment.

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
 

    4.05           Second Look
Election:

    

    (a)           In
General.  Subject to Subsection (b) below, a Participant who
has made a valid initial deferral in accordance with the foregoing provisions of
this Article (or an initial deferral was made pursuant to Section 4.06) may
subsequently make another one-time election regarding the time and/or form of
payment of his or her deferral.  This opportunity to modify the
Participant’s initial election is referred to as a “Second Look
Election.”

    

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

    

    (1)           If
a Participant’s initial election specified payment based on a Specific Payment
Date, the Participant may only make a Second Look Election if the election is
made at least 12 months before the Participant’s original Specific Payment
Date.  In addition, in this case the Participant’s Second Look
Election must provide for a new Specific Payment Date that is at least 5 years
after the original Specific Payment Date.  The Specific Payment Date
applicable pursuant to a Second Look Election may not be after the Participant’s
80th
birthday, and if this would be necessary to comply with 5-year rule stated
above, then a Second Look Election may not be made.

    

    (2)           Subject
to the special rules in subsection (c), if a Participant’s initial election
specified payment based on the Participant’s Separation from Service, the
Participant may only make a Second Look Election if the election is made at
least 12 months before the Participant’s Separation from Service.  In
addition, in this case the Participant’s Second Look Election must delay the
payment of the Participant’s deferral to a new Specific Payment Date that turns
out to be at least 5 years after the Participant’s Separation from
Service.  If the Specific Payment Date selected in a Second Look
Election turns out to be less than 5 years after the Participant’s Separation
from Service, the Second Look Election is void.

    

    (3)           Subject
to the special rules in subsection (c), if a Participant’s initial election
specified payment based on the earlier of the Participant’s Separation from
Service or a Specific Payment Date, the Participant may only make a Second Look
Election if the election is made at least 12 months before the Specific Payment
Date and at least 12 months before the Participant’s Separation from
Service.  In addition, in this case the Participant must elect a new
Specific Payment Date that is at least 5 years after the prior Specific Payment
Date.  Then the Second Look Election will only include the new
Specific Payment Date as the payment trigger and the separate Separation from
Service trigger in the original election will be void.

    

    (4)           A
Participant may make only one Second Look Election for each individual deferral,
and each Second Look Election must comply with all of the relevant requirements
of this Section.

    

    (5)           A
Participant who uses a Second Look Election to change the form of the
Participant’s payment from a lump sum to installments shall be subject to the
provisions of Section 4.04 regarding installment payment elections, and such
installment payments must begin no earlier than 5 years after when the lump sum
payment would have been paid based upon the Participant’s initial
election.  Accordingly, a Participant may not make a Second Look
Election if the election would provide for installment payments to be made after
the Participant’s 80th
birthday.

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
 

    (6)           If
a Participant’s initial election specified payment in the form of installments
and the Participant wants to elect instead payment in a lump sum, the earliest
payment date of the lump sum must be no earlier than 5 years after the first
payment date that applied under the Participant’s initial installment
election.

    

    (7)           For
purposes of this Section, all of a Participant’s installment payments related to
a specific deferral election shall be treated as a single payment.

    

    A Second
Look Election will be void and payment will be made based on the Participant’s
original election under Sections 4.03 and 4.04 if all of the provisions of the
foregoing Paragraphs of this Subsection are not satisfied in
full.  However, if a Participant’s Second Look Election becomes
effective in accordance with the provisions of this Subsection, the
Participant’s original election shall be superseded (including any Specific
Payment Date specified therein), and this original election shall not be taken
into account with respect to the deferral that is subject to the Second Look
Election.

    

    (c)           Special Rules for Certain
Second Look Elections.  Notwithstanding the provisions in
subsections (b)(2) and (b)(3), if a Participant’s initial deferral election
specified payment based on the Participant’s Separation from Service or the
earlier of the Participant’s Separation from Service or a Specific Payment Date,
then –

    

    (1)           If
such Participant is determined to be Disabled, such Participant shall not be
eligible to make a Second Look Election on or after the date the Participant is
determined to be Disabled; and

    

    (2)           If
such Participant submits a Second Look Election, such Participant’s Second Look
Election shall not take effect until the later of (i) the date the Participant
is eligible for Retirement (without having to actually Separate from Service) or
(ii) the date that is 12 months after the date on which the Second Look Election
is made.

     

    
      For
purposes of paragraph (2) above, if a Participant Separates from Service prior
to the date that a Participant’s Second Look Election takes effect, then the
Participant’s Second Look Election shall be void and payment shall be made based
on the Participant’s original deferral election under Sections 4.03 and
4.04.

       

      
        

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

      

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    

     

    

    4.06           Signing Bonus
Deferrals:

    

    (a)           General.  As
provided in this Section, an Eligible Executive’s Employer or the Company may
provide for the mandatory deferral under the Plan of a Signing
Bonus.

    

    (b)           Deferrals.  To
the extent provided in an Eligible Executive’s offer of employment letter (the
“Offer Letter”), all or a portion of an Eligible Executive’s Signing Bonus may
be automatically deferred under this Plan without any requirement or right on
behalf of the Eligible Executive to make a deferral election.  Such
deferral shall occur immediately prior to the time the Eligible Executive first
has a legally binding right to the Signing Bonus or otherwise prior to the first
date his or her employment is effective and he or she begins to render services
(whichever is earlier).  The deferred portion of the Signing Bonus (if
any) shall be credited to a separate Deferral Subaccount for the applicable Plan
Year.

    

    (c)           Time and Form of
Payment.  The Signing Bonus shall be deferred until the
Specific Payment Date and/or the Participant’s Separation from Service as
enumerated in the Offer Letter, and the Eligible Executive shall not be
permitted to make an initial election for the time and form of payment of the
Signing Bonus.  If the Offer Letter does not specify a time of
payment, the default shall be Separation from Service.  All deferrals
of Signing Bonuses shall be payable in a lump sum payment at the time specified
in the foregoing sentences.  However, if an Eligible Director properly
completes a Second Look Election and changes the time of payment pursuant to
such Second Look Election, he/she may also change the form of payment pursuant
to such Second Look Election.

    

    (d)           Phantom
Investments.  The Signing Bonus deferrals shall be invested in
the investment options enumerated in the Offer Letter, and if no such
specification is included in the Offer Letter, the deferral shall be invested in
the YUM! Brands Common Stock Fund.

     

    
      ARTICLE V
– INTERESTS OF PARTICIPANTS

      

      5.01           Accounting for Participants’
Interests:

      

      (a)           Deferral
Subaccounts.  Each Participant shall have at least one separate
Deferral Subaccount for each separate deferral of Base Compensation, Bonus
Compensation or Signing Bonus made by the Participant under this
Plan.  A Participant’s deferral shall be credited as of the date of
the deferral to his or her Account as soon as administratively practicable
following the date the compensation would be paid in the absence of a
deferral.  A Participant’s Account is a bookkeeping device to track
the value of the Participant’s deferrals (and his or her Employer’s liability
therefor).  No assets shall be reserved or segregated in connection
with any Account, and no Account shall be insured or otherwise
secured.

      

        
          
             

          

          
            19

            
              

            

          

          
             

          

        

      

    

    

     

    (b)           Account Earnings or
Losses.  As of each Valuation Date, a Participant’s Account
shall be credited with earnings and gains (and shall be debited for expenses and
losses) determined as if the amounts credited to his or her Account had actually
been invested as directed by the Participant in accordance with this
Article.  The Plan provides only for “phantom investments,” and
therefore such earnings, gains, expenses and losses are hypothetical and not
actual.  However, they shall be applied to measure the value of a
Participant’s Account and the amount of his or her Employer’s liability to make
deferred payments to or on behalf of the Participant.

    

    5.02           Investment
Options:

    

    (a)           General.  Each
of a Participant’s Deferral Subaccounts shall be invested on a phantom basis in
any combination of phantom investment options specified by the Participant (or
following the Participant’s death, by his or her Beneficiary) from those offered
by the Plan Administrator for this purpose from time to time.  The
Plan Administrator may discontinue any phantom investment option with respect to
some or all Accounts, and it may provide rules for transferring a Participant’s
phantom investment from the discontinued option to a specified replacement
option (unless the Participant selects another replacement option in accordance
with such requirements as the Plan Administrator may apply).

    

    (b)           Phantom Investment
Options.  The basic phantom investment options offered under
the Plan are as follows:

    

    (1)           Phantom YUM! Brands Common
Stock Fund.  Participant Accounts invested in this phantom
option are adjusted to reflect an investment in YUM! Brands Common
Stock.  An amount deferred into this option is converted to the
Phantom Share Equivalent on the Valuation Date as of which the amount is treated
as invested in this option by the Plan Administrator.  Only whole
shares are determined.  Any partial share (and all amounts that would
be received by the fund as dividends, if dividends were paid on phantom shares
of YUM! Brands Common Stock as they are on actual shares) are credited to a
dividend subaccount that is invested on a phantom basis as described
below.  The Plan Administrator shall adopt a fair valuation
methodology for valuing a phantom investment in this option, such that the value
shall reflect the complete value of an investment in YUM! Brands Common Stock in
accordance with the following subparagraphs below.

     

    
      (A)           A
Participant’s interest in the phantom YUM! Brands Common Stock Fund is valued as
of a Valuation Date by multiplying the number of phantom shares credited to his
or her Account on such date by the Fair Market Value of a share of YUM! Brands
Common Stock on such date.

      

      (B)           If
shares of YUM! Brands Common Stock change by reason of any stock split, stock
dividend, recapitalization, merger, consolidation, spin-off, combination or
exchange of shares or any other corporate change treated as subject to this
provision by the Plan Administrator, such equitable adjustment shall be made in
the number and kind of phantom shares credited to an Account or Deferral
Subaccount as the Plan Administrator may determine to be necessary or
appropriate.

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

    

    (C)           In
no event will shares of YUM! Brands Common Stock actually be purchased or held
under this Plan, and no Participant shall have any rights as a shareholder of
YUM! Brands Common Stock on account of an interest in this phantom
option.

    

    (D)           All
amounts that would be received by the Fund as dividends, if dividends were paid
on phantom shares of YUM! Brands Common Stock as they are on actual shares are
credited to a dividend subaccount that is invested on a phantom basis (the
“Dividend Subaccount”).  Amounts credited to a Participant’s Dividend
Subaccount shall accrue a return based upon the rate of return as in effect from
time to time under the phantom Stable Value Fund option (as determined by the
Recordkeeper).  An amount is credited with the applicable rate of
return beginning with the date as of which the amount is treated as invested in
this option by the Plan Administrator.

    

    (E)           All
amounts initially deferred or transferred into the phantom YUM! Brands Common
Stock Fund must remain invested in the phantom YUM! Brands Common Stock Fund and
may not be transferred into another phantom investment option.

    

    (2)           Phantom YUM! Brands Matching
Stock Fund.  A Participant may elect to defer the Participant’s
Bonus Compensation for each Plan Year and the Employer or the Company may
require the deferral of a Participant’s Signing Bonus (if applicable) to the
YUM! Brands Matching Stock Fund (the “Matching Stock Fund”).  The
Matching Stock Fund shall operate under the same rules as the YUM! Brands Common
Stock Fund in subsection (b)(1) above; subject to the following special rules
–

    

    (A)           In
addition to the Phantom Share Equivalent, Participants shall receive additional
phantom shares of YUM! Brands Common Stock equal to 331/3% of
the Phantom Share Equivalent on the Valuation Date as of which the amount is
treated as invested in this option by the Plan Administrator.  Any
partial share (and all amounts that would be received by the Matching Stock Fund
as dividends, if dividends were paid on phantom shares of YUM! Brands Common
Stock as they are on actual shares) are credited to a dividend subaccount that
is invested on a phantom basis as described in subsection (b)(1)
above.

    

    (B)           All
amounts credited to the Matching Stock Fund shall be subject to the risk of
forfeiture rules in Section 5.05.

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    

    (C)           All
amounts initially deferred into the Matching Stock Fund must remain invested in
the Matching Stock Fund and may not be transferred into another phantom
investment option.  In addition, no amounts under this Plan may be
transferred into the Matching Stock Fund, meaning that only initial deferrals of
Bonus Compensation and a Signing Bonus may be invested on a phantom basis in the
Matching Stock Fund.

    

    (3)             Other Phantom
Funds.  From time to time, the Plan Administrator shall
designate which (if any) other investment options shall be available as phantom
investment options under this Plan.  These phantom investment options
shall be described in materials provided to Participants from time to
time.  Any of these phantom investment options shall be administered
under procedures implemented from time to time by the Plan
Administrator.  Unless otherwise specified in these materials or
procedures, in the case of any such phantom investment option that is based on a
unitized fund, an amount deferred or transferred into such option is converted
to phantom units in the applicable fund of equivalent value by dividing such
amount by the NAV of a unit in such fund on the Valuation Date as of which the
amount is treated as invested in this option by the Plan
Administrator.  Thereafter, a Participant’s interest in each such
phantom option is valued as of a Valuation Date (or a Distribution Valuation
Date) by multiplying the number of phantom units credited to his or her Account
on such date by the NAV of a unit in such fund on such date.  As of
September 30, 2008, the following phantom investment funds shall be available
under the Plan – the Stable Value Fund, the Bond Market Index Fund and the Large
Company Index Fund.  All such phantom investment funds shall operate
under rules similar to those that apply to these funds under the YUM! Brands
401(k) Plan.

    

    5.03           Method of
Allocation:

    

    (a)           Deferral
Elections.  With respect to any deferral election by a
Participant, the Participant may use his or her Election Form to allocate the
deferral in one percent increments among the phantom investment options then
offered by the Plan Administrator. If an Election Form related to an original
deferral election specifies phantom investment options for less than 100% of the
Participant’s deferral, the Recordkeeper shall allocate the Participant’s
deferrals to the phantom Stable Value Fund to the extent necessary to provide
for investment of 100% of the Participant’s deferral.  If an Election
Form related to an original deferral election specifies phantom investment
options for more than 100% of the Participant’s deferral, the Recordkeeper shall
prorate all of the Participant’s investment allocations to the extent necessary
to reduce (after rounding to whole percents) the Participant’s aggregate
investment percentages to 100%.

    

    (b)           Fund
Transfers.  A Participant may reallocate previously deferred
amounts in a Deferral Subaccount by properly completing and submitting a fund
transfer form provided by the Plan Administrator or Recordkeeper and specifying,
in one percent increments, the reallocation of his or her Deferral Subaccount
among the phantom investment options then offered by the Plan Administrator for
this purpose. (The rules relating to non-paper formats for Election Forms shall
also apply to the fund transfer form.)  If a fund transfer form
provides for investing less than or more than 100% of the Participant’s Deferral
Subaccount, it will be void and disregarded.  Any transfer form that
is not void under the preceding sentence shall be effective as of the Valuation
Date next occurring after its receipt by the Recordkeeper, but the Plan
Administrator or Recordkeeper may also specify a minimum number of days in
advance of which such transfer form must be received in order for the form to
become effective as of such next Valuation Date. If more than one fund transfer
form is received on a timely basis, the form that the Plan Administrator or
Recordkeeper determines to be the most recent shall be
followed.  Transfers shall be subject to the transfer restrictions
noted in Sections 5.02(b)(1) and (b)(2).

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    

    (c)           Phantom YUM! Brands Common
Stock Fund and Matching Stock Fund Restrictions. Notwithstanding the
provisions of Section 5.02 or this Section 5.03, the Plan Administrator may at
any time alter the effective date of any investment or allocation involving the
phantom YUM! Brands Common Stock Fund or the phantom Matching Stock Fund
pursuant to Section 7.03(j) (relating to safeguards against insider
trading).  The Plan Administrator may also, to the extent necessary to
ensure compliance with Rule 16b-3(f) of the Act, arrange for tracking of any
such transaction defined in Rule 16b-3(b)(1) of the Act and bar any such
transaction to the extent it would not be exempt under Rule
16b-3(f).  The Company may also impose blackout periods pursuant to
the requirements of the Sarbanes-Oxley Act of 2002 whenever the Company
determines that circumstances warrant.  Further, the Company may
impose quarterly blackout periods on insider trading in the phantom YUM! Brands
Common Stock Fund and phantom Matching Stock Fund as needed (as determined by
the Company), timed to coincide with the release of the Company’s quarterly
earnings reports.  The commencement and termination of these blackout
periods in each quarter, the parties to which they apply and the activities they
restrict shall be as set forth in the official insider trading policy
promulgated by the Company from time to time.  These provisions shall
apply notwithstanding any provision of the Plan to the contrary except Section
7.07 (relating to compliance with Section 409A).

    

    5.04           Vesting of a Participant’s
Account:

    

    Subject
to Section 5.05, a Participant’s interest in the value of his or her Account
shall at all times be 100 percent vested, which means that it will not forfeit
as a result of his or her Separation from Service.

    

    5.05           Risk of Forfeiture:

    

    (a)           General.  Amounts
deferred into the phantom Matching Stock Fund pursuant to Section 5.02(b)(2)
above shall be subject to the provisions of this Section 5.05.

    

    (b)           Risk of Forfeiture
Rules.  A Participant shall forfeit the entire amount credited
to a Deferral Subaccount that is invested in the phantom Matching Stock Fund
option (as adjusted for changes in value pursuant to Section 5.01(b) and
including the value of the Dividend Subaccount in the Matching Stock Fund), if
the Participant has a termination of employment prior to the second anniversary
of the date as of which the Participant’s deferral was credited to the Deferral
Subaccount (the “Second Anniversary”).  Notwithstanding the prior
sentence, if the Participant’s termination of employment was prior to the Second
Anniversary, but the Plan Administrator determines that the termination was on
account of any of the following events, then no forfeiture shall occur
–

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    
      

      (1)           An
involuntary termination without cause, in which case the amount in the Deferral
Subaccount(s) shall be recalculated to equal the original amount of the
Participant’s deferral to the Deferral Subaccount(s) (i.e., the “total value of
the match” shall be eliminated).

      

      (2)           Disability
or death.

      

      (3)           An
involuntary termination without cause pursuant to a restructuring designated by
the Plan Administrator as a “Reduction in Force” or such similar
event.

    

     

    (4)           Change
in control of the Company.

    

    For
purposes of this subsection, the “total value of the match” shall mean the value
of the 331/3%
matching contribution of YUM! Brands Common Stock under Section 5.02(b)(2), plus
the net appreciation (or minus the net depreciation) in the Fair Market Value of
YUM! Brands Common Stock since the deferral, and plus the amount credited to the
Dividend Subaccount with respect to the deferral.

    

    If there
is no forfeiture as provided above, any and all distributions of the affected
Deferral Subaccounts shall be made pursuant to the regular rules of Article
VI.

     

    
      ARTICLE
VI – DISTRIBUTIONS

      

      6.01           General:

      

      A
Participant’s Deferral Subaccount(s) that are governed by the terms of this 409A
Program shall be distributed as provided in this Article, subject in all cases
to Section 7.03(j) (relating to safeguards against insider trading) and Section
7.06 (relating to compliance with Section 16 of the Act).  All
Deferral Subaccount balances (other than those hypothetically invested in the
phantom YUM! Brands Common Stock Fund or the Matching Stock Fund) shall be
distributed in cash.  Any amount hypothetically invested in the
phantom YUM! Brands Common Stock Fund or the Matching Stock Fund shall be
distributed in whole shares of YUM! Brands Common Stock (with any partial share
distributed in cash and the Dividend Subaccount also distributed in
cash).  In no event shall any portion of a Participant’s Account be
distributed earlier or later than is allowed under Section 409A.

      

      The
following general rules shall apply for purposes of interpreting the provisions
of this Article VI.

      

      (a)           Section
6.02 (Distributions Based on a Specific Payment Date) applies when a Participant
has elected to defer until a Specific Payment Date and the Specific Payment Date
is reached before the Participant’s death.  If such a Participant dies
prior to the Specific Payment Date, Section 6.04 shall apply to the extent it
would result in an earlier distribution of all or part of a Participant’s
Account.

      

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    

     

    (b)           Section 6.03
(Distributions on Account of a Separation from Service) applies when a
Participant has elected to defer until a Separation from Service and then the
Participant Separates from Service (other than as a result of
death).

    

    (c)           Section
6.04 (Distributions on Account of Death) applies when the Participant
dies.  If a Participant is entitled to receive or is receiving a
distribution under Section 6.02 or 6.03 at the time of his or her death, Section
6.04 shall take precedence over those sections to the extent Section 6.04 would
result in an earlier distribution of all or part of a Participant’s
Account.

    

    (d)           Section
6.05 (Distributions on Account of Unforeseeable Emergency) applies when the
Participant incurs an Unforeseeable Emergency prior to when a Participant’s
Account is distributed under Sections 6.02 through 6.04.  In this
case, the provisions of Section 6.05 shall take precedence over Sections 6.02
through 6.04 to the extent Section 6.05 would result in an earlier distribution
of all or part of the Participant’s Account.

    

    6.02           Distributions Based on a
Specific Payment Date:

    

    This
Section shall apply to distributions that are to be made upon the occurrence of
a Specific Payment Date.  In the event a Participant’s Specific
Payment Date for a Deferral Subaccount is reached before the Participant’s
Separation from Service or death, such Deferral Subaccount shall be distributed
based on the occurrence of such Specific Payment Date in accordance with the
following terms and conditions:

    

    (a)             If
a Participant’s Deferral Subaccount is to be paid in the form of a lump sum
pursuant to Sections 4.04 or 4.05, whichever is applicable, the Deferral
Subaccount shall be valued as of the last Distribution Valuation Date that
immediately precedes the Specific Payment Date, and the resulting amount shall
be paid in a single lump sum on the Specific Payment Date.

     

    
      (b)             If
a Participant’s Deferral Subaccount is to be paid in the form of installments
pursuant to Section 4.04 or 4.05, whichever is applicable, the Deferral
Subaccount shall be valued as of the last Distribution Valuation Date that
immediately precedes the Specific Payment Date and the first installment payment
shall be paid on the Specific Payment Date.  Thereafter, installment
payments shall continue in accordance with the schedule elected by the
Participant on the Election Form or the Second Look Election (whichever is
applicable, and subject in each case to the provisions of this Plan that
constrain such elections), except as provided in Sections 6.04 and 6.05
(relating to distributions on account of death and Unforeseeable
Emergency).  The amount of each installment shall be determined under
Section 6.06.  Notwithstanding the preceding provisions of this
Subsection, if before the date the last installment distribution is processed
for payment the Participant would be entitled to a distribution in accordance
with Section 6.04 (relating to a distribution on account of death), the
remaining balance of the Participant’s Deferral Subaccounts that would otherwise
be distributed based on such Specific Payment Date shall instead be distributed
in accordance with Section 6.04 (relating to distributions on account of death),
but only to the extent it would result in an earlier distribution of the
Participant’s Subaccounts in the case of Section 6.04.

    

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    

    

    (c)             If
the Participant selected both Separation from Service and a Specific Payment
Date for a Deferral Subaccount, then the provisions of Section 6.03(c) shall
apply.

    

    6.03           Distributions on Account of
a Separation from Service:

    

    This
Section shall apply to distributions that are to be made upon Separation from
Service.  When used in this Section, the phrase “Separation from
Service” shall only refer to a Separation from Service that is not for
death.  In all cases, the time of payment rules in this Section shall
be subject to the last sentence of Section 4.03 regarding the minimum deferral
period.

    

    (a)           If
the Participant’s Separation from Service is prior to the Specific Payment Date
that is applicable to a Deferral Subaccount, the Participant’s Deferral
Subaccount shall be distributed as of the first day of the first calendar
quarter that immediately follows the Participant’s Separation from Service as
provided in subsection (d).

    

    (b)           If
the Participant has selected payment of his or her deferral on account of
Separation from Service only, the Participant’s Deferral Subaccount shall be
distributed as of the first day of the first calendar quarter that immediately
follows the Participant’s Separation from Service as provided in subsection
(d).

    

    (c)           If
the Participant selected both Separation from Service and a Specific Payment
Date for a Deferral Subaccount, then the distribution of the related Deferral
Subaccount shall commence as follows:

    

    (1)           If
the Specific Payment Date occurs prior to the Separation from Service, then the
Deferral Subaccount shall be valued and distributed based on the Specific
Payment Date pursuant to the provisions of Sections 6.02(a) and (b);
and

    

    (2)           If
the Separation from Service occurs prior to the Specific Payment Date, the
Deferral Subaccount shall be valued and distributed based on the Separation from
Service pursuant to the provisions of Section 6.03(a).

     

    
      (d)           The
distribution provided in subsections (a), (b) or (c) shall be made in either a
single lump sum payment or in installment payments depending upon the
Participant’s deferral election under Sections 4.04 or 4.05.  If the
Deferral Subaccount is to be paid in the form of a lump sum, the Deferral
Subaccount shall be distributed on the first day of the first calendar quarter
that is after the Separation from Service.  If a Participant’s
Deferral Subaccount is to be paid in the form of installments, the first
installment payment shall be paid on the first day of the first calendar quarter
that is after the Separation from Service.  Thereafter, installment
payments shall continue in accordance with the schedule elected by the
Participant on his/her Election Form or Second Look Election (and subject in
each case to the provisions of this Plan that constrain such elections), except
as provided in Sections 6.04 and 6.05 (relating to distributions on account of
death and Unforeseeable Emergency).  The amount of each installment
shall be determined under Section 6.06.  Notwithstanding the preceding
provisions of this Subsection, if before the date the last installment
distribution is processed for payment the Participant would be entitled to a
distribution in accordance with Section 6.04 (relating to a distribution on
account of death), the remaining balance of the Participant’s Deferral
Subaccounts that would otherwise be distributed based on such Separation from
Service shall instead be distributed in accordance with Section 6.04 (relating
to a distribution on account of death), but only to the extent it would result
in an earlier distribution of the Participant’s Subaccounts in the case of
Section 6.04.  Unless otherwise provided in this Section, a
distribution shall be valued as of the Distribution Valuation Date that
immediately precedes the date the payment is to be made.

    

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    

    

    (e)           Notwithstanding
the subsections above, if the Participant is classified as a Key Employee at the
time of the Participant’s Separation from Service (or at such other time for
determining Key Employee status as may apply under Section 409A), then such
Participant’s Account shall not be paid, as a result of the Participant’s
Separation from Service, earlier than the date that is at least 6 months after
the Participant’s Separation from Service.  In such
event:

    

    (1)           any
applicable lump sum payment shall be valued as of the first Distribution
Valuation Date that is on or after the date that is 6 months after the date of
the Participant’s Separation from Service and the resulting amount shall be
distributed on such date; and

    

    (2)           any
installment payments that would otherwise have been paid during such 6 month
period shall be valued as of the first Distribution Valuation Date that is on or
after the date that is 6 months after the date of the Participant’s Separation
from Service pursuant to Section 6.06 and the resulting amount(s) shall be
distributed in a lump sum on such date and the installment stream shall continue
from that point in accordance with the applicable schedule.

    

    (f)           If
the Participant is receiving installment payments for one or more Deferral
Subaccounts in accordance with Section 6.02 at the time of his or her Separation
from Service, such installment payments shall continue to be paid based upon the
Participant’s deferral election (but subject to acceleration under Sections 6.04
and 6.05 relating to distributions on account of death and Unforeseeable
Emergency).

     

    
      6.04           Distributions on Account of
Death:

      

      (a)           Upon
a Participant’s death, the Participant’s Account under the Plan shall be
distributed in a single lump sum payment on the first day of the first calendar
quarter that immediately follows the Participant’s death.  Such
payment shall be valued as of the Distribution Valuation Date that immediately
precedes the date payment is to be made.  If the Participant is
receiving installment payments at the time of the Participant’s death, such
installment payments shall continue in accordance with the terms of the
Participant’s deferral election that governs such payments until the time that
the lump sum payment is due to be paid under the provisions of the preceding
sentence of this Subsection.  Immediately prior to the time that such
lump sum payment is to be paid all installment payments shall cease and the
remaining balance of the Participant’s Account shall be distributed at such
scheduled payment time in a single lump sum.  Amounts paid following a
Participant’s death, whether a lump sum or continued installments, shall be paid
to the Participant’s Beneficiary.  If some but not all of the persons
designated as Beneficiaries by a Participant to receive his or her Account at
death predecease the Participant, the Participant’s surviving Beneficiaries
shall be entitled to the portion of the Participant’s Account intended for such
pre-deceased persons in proportion to the surviving Beneficiaries’ respective
shares.

    

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    

    

    (b)             Effective
from and after January 1, 2009, if no designation is in effect at the time of a
Participant’s death (as determined by the Plan Administrator) or if all persons
designated as Beneficiaries have predeceased the Participant, then the payments
to be made pursuant to this Section shall be distributed as
follows:

    

    (1)           If
the Participant is married at the time of his/her death, all payments made
pursuant to this Section shall be paid to the Participant’s spouse;
and

    

    (2)           If
the Participant is not married at the time of his/her death, all payments made
pursuant to this Section shall be paid to the Participant’s estate.

    

    The Plan
Administrator shall determine whether a Participant is “married” and shall
determine a Participant’s “spouse” based on the state or local law where the
Participant has his/her primary residence at the time of death.  The
Plan Administrator is authorized to make any applicable inquires and to request
any documents, certificates or other information that it deems necessary or
appropriate in order to make the above determinations.

    

    (c)           Prior
to the time the value of the Participant’s Account is distributed under this
Section, the Participant’s Beneficiary may apply for a distribution under
Section 6.05 (relating to a distribution on account of an Unforeseeable
Emergency).

    

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

     

    
      6.05           Distributions on Account of
Unforeseeable Emergency:

      

      Prior to
the time that an amount would become distributable under Sections 6.02 through
6.04, a Participant or Beneficiary may file a written request with the
Recordkeeper for accelerated payment of all or a portion of the amount credited
to the Participant’s Account based upon an Unforeseeable
Emergency.  After an individual has filed a written request pursuant
to this Section, along with all supporting material that may be required by the
Recordkeeper from time to time, the Recordkeeper shall determine within 60 days
(or such other number of days that is necessary if special circumstances warrant
additional time) whether the individual meets the criteria for an Unforeseeable
Emergency.  If the Recordkeeper determines that an Unforeseeable
Emergency has occurred, the Participant or Beneficiary shall receive a
distribution from his or her Account as of the day the Recordkeeper finalizes
the determination.  However, such distribution shall not exceed the
dollar amount necessary to satisfy the Unforeseeable Emergency (plus amounts
necessary to pay taxes reasonably anticipated as a result of the distribution)
after taking into account the extent to which the Unforeseeable Emergency is or
may be relieved through reimbursement or compensation by insurance or otherwise
or by liquidation of the Participant’s assets (to the extent the liquidation of
such assets would not itself cause severe financial
hardship).

    

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    
 

    6.06           Valuation:

    

    In
determining the amount of any individual distribution pursuant to this Article,
the Participant’s Deferral Subaccount shall continue to be credited with
earnings and gains (and debited for expenses and losses) as specified in Article
V until the Distribution Valuation Date that is used in determining the amount
of the distribution under this Article.  If a particular Section in
this Article does not specify a Distribution Valuation Date to be used in
calculating the distribution, the Participant’s Deferral Subaccount shall
continue to be credited with earnings and gains (and debited for expenses and
losses) as specified in Article V until the Distribution Valuation Date
that precedes such distribution.  In determining the value of a
Participant’s remaining Deferral Subaccount following an installment
distribution from the Deferral Subaccount (or a partial distribution under
Section 6.05 relating to a distribution on account of an Unforeseeable
Emergency), such distribution shall reduce the value of the Participant’s
Deferral Subaccount as of the close of the Distribution Valuation Date preceding
the payment date for such installment (or partial distribution).  The
amount to be distributed in connection with any installment payment shall be
determined by dividing the value of a Participant’s Deferral Subaccount as of
such preceding Distribution Valuation Date (determined before reduction of the
Deferral Subaccount as of such Distribution Valuation Date in accordance with
the preceding sentence) by the remaining number of installments to be paid with
respect to the Deferral Subaccount.

     

    
      6.07           Section 162(m)
Compliance:

      

      If a
Participant has elected to defer income, which would qualify as
performance-based compensation under Code Section 162(m), then such Deferral
Subaccount may not be paid out at any time while the Participant is a covered
employee under Code Section 162(m)(3), to the extent it would result in
compensation being paid to the Participant in such year that would not be
deductible under Code Section 162(m).  The payout of any such amount
shall be deferred until a year when its payout will not result in the payment of
non-performance-based compensation that exceeds the $1 million cap in Code
Section 162(m)(1) (and then only such portion that will not exceed such cap
shall be paid out in the year).  However, the total amount (1) which
stands to the credit of the Participant in the Plan, and (2) which would be
currently or previously distributed from the Plan but for this Section, shall be
paid out in the first calendar year when the Participant is no longer a Code
Section 162(m) covered employee.  This Section shall apply
notwithstanding the fact that a Participant would otherwise be entitled to an
earlier distribution under the foregoing provisions of this Article, except that
a Participant may receive an earlier distribution with respect to deferrals
subject to this Section to the extent the Participant qualifies for such an
earlier distribution under Section 6.05.

    

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    

    

    6.08           Impact of Section 16 of the
Act on Distributions:

    

    The
provisions of Sections 5.03(c) and 7.06 shall apply in determining whether a
Participant’s distribution shall be delayed beyond the date applicable under the
preceding provisions of this Article VI.

    

    6.09           Actual Payment
Date:

    

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

    

    ARTICLE
VII – PLAN ADMINISTRATION

    

    7.01           Plan
Administrator:

    

    The Plan
Administrator is responsible for the administration of the Plan.  The
Plan Administrator has the authority to name one or more delegates to carry out
certain responsibilities hereunder, as specified in the definition of Plan
Administrator.  Any such delegation shall state the scope of
responsibilities being delegated and is subject to Section 7.06
below.

    

    7.02           Action:

    

    Action by
the Plan Administrator may be taken in accordance with procedures that the Plan
Administrator adopts from time to time or that the Company’s Legal Department
determines are legally permissible.

    

    7.03           Powers of the Plan
Administrator:

    

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

    

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

    

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

    

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

     

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    

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

    

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

    

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

    

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

    

    (h)           To
establish or to change the phantom investment options or arrangements under
Article V;

    

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

    

    (j)           Notwithstanding
any other provision of this Plan except Section 7.07 (relating to compliance
with Section 409A), the Plan Administrator or the Recordkeeper may take any
action the Plan Administrator deems is necessary to assure compliance with any
policy of the Company respecting insider trading as may be in effect from time
to time.  Such actions may include altering the effective date of
intra-fund transfers or the distribution date of Deferral
Subaccounts.  Any such actions shall alter the normal operation of the
Plan to the minimum extent necessary.

    

    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 will be final and conclusive on all
parties.  Any such decision or determination shall be made in the
absolute and unrestricted discretion of the Plan Administrator, even if (1) such
discretion is not expressly granted by the Plan provisions in question, or (2) a
determination is not expressly called for by the Plan provisions in question,
and even though other Plan provisions expressly grant discretion or call for a
determination.  As a result, benefits under this Plan will be paid
only if the Plan Administrator decides in its discretion that the applicant is
entitled to them.  In the event of a review by a court, arbitrator or
any other tribunal, any exercise of the Plan Administrator’s discretionary
authority shall not be disturbed unless it is clearly shown to be arbitrary and
capricious.

    

    7.04           Compensation, Indemnity and
Liability:

    

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

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    

    7.05           Withholding:

    

    The
Employer shall withhold from amounts due under this Plan, any amount necessary
to enable the Employer to remit to the appropriate government entity or entities
on behalf of the Participant as may be required by the federal income tax
provisions of the Code, by an applicable state’s income tax provisions, and by
an applicable city, county or municipality’s earnings or income tax
provisions.  Further, the Employer shall withhold from the payroll of,
or collect from, a Participant the amount necessary to remit on behalf of the
Participant any Social Security or Medicare taxes which may be required with
respect to amounts deferred or accrued by a Participant hereunder, as determined
by the Employer.  In addition, to the extent required by Section 409A,
amounts deferred under this Plan shall be reported on each Participant’s Form
W-2 for the applicable tax year, and any amounts that become taxable hereunder
shall be reported as taxable wages on the Participant’s Form W-2 for the
applicable tax year.  All such reporting shall be performed based on
the rules and procedures of Section 409A.

    

    7.06           Section 16
Compliance:

    

    (a)           In
General.  This Plan is intended to be a formula plan for
purposes of Section 16 of the Act.  Accordingly, in the case of a
deferral or other action under the Plan that constitutes a transaction that
could be covered by Rule 16b-3(d) or (e), if it were approved by the Company’s
Board or Compensation Committee (“Board Approval”), it is intended that the Plan
shall be administered by delegates of the Compensation Committee, in the case of
a Participant who is subject to Section 16 of the Act, in a manner that will
permit the Board Approval of the Plan to avoid any additional Board Approval of
specific transactions to the maximum possible extent.

    

    (b)           Approval of
Distributions:  This Subsection shall govern the distribution
of a deferral that (i) is wholly or partly invested in the phantom YUM! Brands
Common Stock Fund or the Matching Stock Fund at the time the deferral would be
valued to determine the amount of cash to be distributed to a Participant, (ii)
either was the subject of a Second Look Election or was not covered by an
agreement, made at the time of the Participant’s original deferral election,
that any investments in the phantom YUM! Brands Common Stock Fund or Matching
Stock Fund would, once made, remain in that fund until distribution of the
deferral, (iii) is made to a Participant who is subject to Section 16 of the Act
at the time the interest in the phantom YUM! Brands Common Stock Fund or
Matching Stock Fund would be liquidated in connection with the distribution, and
(iv) if paid at the time the distribution would be made without regard to this
subsection, could result in a violation of Section 16 of the Act because there
is an opposite way transaction that would be matched with the liquidation of the
Participant’s interest in the YUM! Brands Common Stock Fund or Matching Stock
Fund (either as a “discretionary transaction,” within the meaning of Rule
16b-3(b)(1), or as a regular transaction, as applicable) (a “Covered
Distribution”).  In the case of a Covered Distribution, if the
liquidation of the Participant’s interest in the phantom YUM! Brands Common
Stock Fund or Matching Stock Fund in connection with the distribution has not
received Board Approval by the time the distribution would be made if it were
not a Covered Distribution, or if it is a discretionary transaction, then the
actual distribution to the Participant shall be delayed only until the earlier
of:

     

    

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    
       

      (1)           In
the case of a transaction that is not a discretionary transaction, Board
Approval of the liquidation of the Participant’s interest in the phantom YUM!
Brands Common Stock Fund or Matching Stock Fund in connection with the
distribution, and

    (2)           The
date the distribution would no longer violate Section 16 of the Act, e.g.,  when the
Participant is no longer subject to Section 16 of the Act, when the Deferral
Subaccount related to the distribution is no longer invested in the phantom YUM!
Brands Common Stock Fund or Matching Stock Fund or when the time between the
liquidation and an opposite way transaction is sufficient.

    

    7.07           Conformance with Section
409A:

    

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

     

    
      ARTICLE
VIII – CLAIMS PROCEDURE

      

      8.01           Claims for
Benefits:

      

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

    

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    

    8.02           Appeals of Denied
Claims:

    

    Each
Claimant whose claim for benefits has been denied may file a written appeal for
a review of his or her claim by the Plan Administrator.  The request
for review must be filed by the Claimant within 60 days after he or she received
the notice denying his or her claim.  The decision of the Plan
Administrator will be communicated to the Claimant within 60 days after receipt
of a request for appeal.  The notice shall set forth the basis for the
Plan Administrator’s decision.  However, if special circumstances
require an extension of time for processing the appeal, the Plan Administrator
will furnish notice of the extension to the Claimant prior to the termination of
the initial 60-day period and such extension may not exceed one additional,
consecutive 60-day period.  In no event shall the Plan Administrator’s
decision be rendered later than 120 days after receipt of a request for
appeal.

    

    8.03           Special Claims Procedures
for Disability Determinations:

    

    Notwithstanding
Sections 8.01 and 8.02, if the claim or appeal of the Claimant relates to
Disability benefits, such claim or appeal shall be processed pursuant to the
applicable provisions of Department of Labor Regulation Section 2560.503-1
relating to Disability benefits, including Sections 2560.503-1(d),
2560.503-1(f)(3), 2560.503-1(h)(4) and 2560.503-1(i)(3).

    

    ARTICLE
IX – AMENDMENT AND TERMINATION

    

    9.01           Amendment of Plan:

    

    The
Compensation Committee of the Board of Directors of the Company has the right in
its sole discretion to amend this Plan in whole or in part at any time and in
any manner, including the manner of making deferral elections, the terms on
which distributions are made, and the form and timing of
distributions.  However, except for mere clarifying amendments
necessary to avoid an inappropriate windfall, no Plan amendment shall reduce the
amount credited to the Account of any Participant as of the date such amendment
is adopted.  Any amendment shall be in writing and adopted by the
Company.  All Participants and Beneficiaries shall be bound by such
amendment.  Any amendments made to the Plan shall be subject to any
restrictions on amendment that are applicable to ensure continued compliance
under Section 409A.

    

    9.02           Termination of
Plan:

    

    (a)           The
Company expects to continue this Plan, but does not obligate itself to do
so.  The Company, acting by the Compensation Committee of the Board of
Directors, or through its entire Board of Directors, reserves the right to
discontinue and terminate the Plan at any time, in whole or in part, for any
reason (including a change, or an impending change, in the tax laws of the
United States or any State).  Termination of the Plan will be binding
on all Participants (and a partial termination shall be binding upon all
affected Participants) and their Beneficiaries, but in no event may such
termination reduce the amounts credited at that time to any Participant’s
Account.  If this Plan is terminated (in whole or in part), the
termination resolution shall provide for how amounts theretofore credited to
affected Participants’ Accounts will be distributed.

    

    (b)           This
Section is subject to the same restrictions related to compliance with Section
409A that apply to Section 9.01.  In accordance with these
restrictions, the Company intends to have the maximum discretionary authority to
terminate the Plan and make distributions in connection with a Change in Control
(as defined 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 defined
in Section 409A) as is permissible under Section 409A.  The previous
sentence contains the exclusive terms under which a distribution may be made in
connection with any change in control with respect to deferrals made under this
409A Program.

    

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    

    ARTICLE X
– MISCELLANEOUS

    

    10.01                      Limitation on Participant’s
Rights:

    

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

    

    10.02                      Unfunded Obligation of
Individual Employer:

    

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

    

    10.03                      Other Plans:

    

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

    

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

     

    
      10.04                      Receipt or Release:

      

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

      

      10.05                      Governing Law:

      

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

    

    
 

    

    10.06                      Adoption of Plan by Related
Employers:

    

    The Plan
Administrator may select as an Employer (other than the Company, which is
automatically an Employer hereunder) any division of the Company, as well as any
subsidiary or affiliate related to the Company by ownership (and that is a
member of the YUM! Brands Organization), and permit or cause such division,
subsidiary or affiliate to adopt the Plan.  The selection by the Plan
Administrator shall govern the effective date of the adoption of the Plan by
such related Employer.  The requirements for Plan adoption are
entirely within the discretion of the Plan Administrator and, in any case where
the status of an entity as an Employer is at issue, the determination of the
Plan Administrator shall be absolutely conclusive.

    

    10.07                      Gender, Tense and
Examples:

    

    In this
Plan, whenever the context so indicates, the singular or plural number and the
masculine, feminine, or neuter gender shall be deemed to include the
other.  Whenever an example is provided or the text uses the term
“including” followed by a specific item or items, or there is a passage having a
similar effect, such passage of the Plan shall be construed as if the phrase
“without limitation” followed such example or term (or otherwise applied to such
passage in a manner that avoids limitation on its breadth of
application).

    

    10.08                      Successors and Assigns;
Nonalienation of Benefits:

    

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

     

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    
 

    10.09                      Facility of
Payment:

    

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

    

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    

    ARTICLE
XI – AUTHENTICATION

    

    

    The 409A
Program was adopted and approved by the Company’s Board of Directors at its duly
authorized meeting held on November 21, 2008, to be effective as of January 1,
2005, except as provided herein.  The Plan is hereby further amended
and restated through June 30, 2009 (incorporating changes to the definition of
key employee and deleting the term of “Discount Stock Fund” and replacing it
with “Matching Stock Fund”).

    

    
      	 
      	
              YUM!
      BRANDS, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:_________________________________

            
	 
      	
              Name:

            
	 
      	
              Title:

            

    

    

    

    

    

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    APPENDIX

    

    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 Eligible Executives, 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.

    

    
      
         

      

      
        Appendix

        
          

        

      

      
         

      

    

    APPENDIX
ARTICLE A – RDC TRANSFERS

    

    

    In the
case of an individual who becomes a Participant and who previously participated
in the YUM! Brands Restaurant Deferred Compensation Plan (“RDC Plan”), then his
or her undistributed RDC Plan balance (if any) shall be transferred to this Plan
on the January 1st
following the date on which the individual becomes a
Participant.  Because the RDC Plan was frozen prior to January 1, 2005
and all amounts were earned and vested as of December 31, 2004, any balance
transferred from the RDC Plan shall be transferred to and maintained under the
Pre-409 Program of this Plan, and accordingly shall not be subject to Section
409A.  All elections made by a Participant under the RDC Plan with
respect to the Participant’s transferred balance shall be preserved and shall
apply under the Pre-409A Program to the fullest extent practicable, and to the
extent the RDC Plan elections cannot be preserved the terms and conditions of
the Pre-409A Program shall apply.

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    APPENDIX
ARTICLE B – CERTAIN TRANSITION RULES

    

    

    This
Appendix Article B sets forth certain provisions that apply in connection with
the Plan’s transition to compliance with Section 409A.  Unless
otherwise provided below, the provisions in this Appendix Article B were
originally adopted on December 23, 2005.

    

    B.1           Q&A-20(a)
Cancellation:

    

    This
provision shall apply effective December 1, 2005 and solely in the case of Carl
Geoff Spear (the “Executive”).  During the period beginning December
1, 2005 and ending December 31, 2005, the Executive may elect to cancel the
deferral of his 2005 bonus pursuant to the authority of Q&A-20(a) of Notice
2005-1.  To be valid, any such election must be in writing, must be
signed by the Executive and must be received by the Company’s Compensation
Department no later than December 31, 2005.  If the Executive makes an
election under this Section B.1, the Executive’s 2005 bonus, if any, will be
paid to the Executive in a single payment at the time in 2006 when it is
considered “earned and vested” within the meaning of Notice 2005-1, i.e., at the time that other
2005 bonuses are generally paid to employees who did not elect to defer their
2005 bonus.  This election does not apply to any other deferrals
standing to the credit of the Executive under the Plan.

    

    B.2           Conformance with Section
409A:

    

    At all
times from and after January 1, 2005, this Plan shall be operated (i) in
accordance with the requirements 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 deferrals 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 B.2 shall
apply notwithstanding any contrary provision of the Plan that is not contained
in this Section.  Notwithstanding the foregoing, this Section B.2
shall not apply after December 31, 2008.

    

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

     

    B.3           Dane Hudson –
19(c):

    

    Pursuant
to an election made on November 30, 2005 under Q&A-19(c) of IRS Notice
2005-1, the Company permitted Dane Hudson to irrevocably elect to revise the
time of his lump sum payment of his 2001 Bonus Compensation to a time that was
on or after December 2006.  Such election to revise the time of
payment must be filed with the Plan Administrator pursuant to the procedures and
timing requirements established by the Plan Administrator for this purpose (such
procedures and timing requirements to be consistent with the requirements of
Q&A-19(c)).

     

     

    
      B-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]