Common use of Additional Risk Factors for Australian Residents Clause in Contracts

Additional Risk Factors for Australian Residents. Participants should have regard to risk factors relevant to investment in securities generally and, in particular, to the holding of shares of Stock. For example, the price at which the Stock is quoted on the New York Stock Exchange may increase or decrease due to a number of factors. There is no guarantee that the price of the Stock will increase. Factors which may affect the price of the Stock include fluctuations in the domestic and international market for listed stocks, general economic conditions, including interest rates, inflation rates, commodity and oil prices, changes to government fiscal, monetary or regulatory policies, legislation or regulation, the nature of the markets in which the Company operates and general operational and business risks. In addition, the Participant should be aware that the Australian dollar value of any Stock acquired under the Plan will be affected by the U.S. dollar/Australian dollar exchange rate. Participation in the Plan involves certain risks related to fluctuations in this rate of exchange. Common Stock Common stock of a U.S. corporation is analogous to ordinary shares of an Australian corporation. Each holder of the Company's common stock is entitled to one vote for every share held in the Company. Dividends may be paid on the shares of Stock out of any funds of the Company legally available for dividends at the discretion of the Board. The shares of Stock are traded on the New York Stock Exchange in the United States of America under the symbol "ADS". The shares of Stock are not liable to any further calls for payment of capital or for other assessment by the Company and have no sinking fund provisions, pre-emptive rights, conversion rights or redemption provisions.

Additional Risk Factors for Australian Residents. Participants should have regard to risk factors relevant to investment in securities generally and, in particular, to the holding of shares of Stock. For example, the price at which the Stock is quoted on the New York Stock Exchange may increase or decrease due to a number of factors. There is no guarantee that the price of the Stock will increase. Factors which may affect the price of the Stock include fluctuations in the domestic and international market for listed stocks, general economic conditions, including interest rates, inflation rates, commodity and oil prices, changes to government fiscal, monetary or regulatory policies, legislation or regulation, the nature of the markets in which the Company operates and general operational and business risks. In addition, the Participant should be aware that the Australian dollar value of any Stock acquired under the Plan will be affected by the U.S. dollar/Australian dollar exchange rate. Participation in the Plan involves certain risks related to fluctuations in this rate of exchange. Common Stock Common stock of a U.S. corporation is analogous to ordinary shares of an Australian corporation. Each holder of the Company's common stock is entitled to one vote for every share held in the Company. Dividends may be paid on the shares of Stock out of any funds of the Company legally available for dividends at the discretion of the Board. The shares of Stock are traded on the New York Stock Exchange in the United States of America under the symbol "“ADS"”. The shares of Stock are not liable to any further calls for payment of capital or for other assessment by the Company and have no sinking fund provisions, pre-emptive rights, conversion rights or redemption provisions.

Additional Risk Factors for Australian Residents. Participants should have regard to risk factors relevant to investment in securities generally and, in particular, to the holding of shares of Stock. For example, the price at which the Stock is quoted on the New York Stock Exchange may increase or decrease due to a number of factors. There is no guarantee that the price of the Stock will increase. Factors which may affect the price of the Stock include fluctuations in the domestic and international market for listed stocks, general economic conditions, including interest rates, inflation rates, commodity and oil prices, changes to government fiscal, monetary or regulatory policies, legislation or regulation, the nature of the markets in which the Company operates and general operational and business risks. In addition, the Participant should be aware that the Australian dollar value of any Stock acquired under the Plan will be affected by the U.S. dollar/Australian dollar exchange rate. Participation in the Plan involves certain risks related to fluctuations in this rate of exchange. Common Stock Common stock of a U.S. corporation is analogous to ordinary shares of an Australian corporation. Each holder of the Company's ’s common stock is entitled to one vote for every share held in the Company. Dividends may be paid on the shares of Stock out of any funds of the Company legally available for dividends at the discretion of the Board. The At the time of this Award, the shares of Stock are traded on the New York Stock Exchange in the United States of America under the symbol "“ADS"”. The shares of Stock are not liable to any further calls for payment of capital or for other assessment by the Company and have no sinking fund provisions, pre-emptive rights, conversion rights or redemption provisions.

Additional Risk Factors for Australian Residents. Participants The Grantee should have regard to risk factors relevant to investment in securities generally and, in particular, to the holding of shares of Common Stock. For example, the price at which the Common Stock is quoted traded on the New York Stock Exchange may increase or decrease due to a number of factors. There is no guarantee that the price of the Common Stock will increase. Factors which may affect the price of the Common Stock include fluctuations in the domestic and international market for listed stocks, general economic conditions, including interest rates, inflation rates, commodity and oil Elanco Restricted Stock Unit Award Agreement prices, changes to government fiscal, monetary or regulatory policies, legislation or regulation, the nature of the markets in which the Company operates and general operational and business risks. In addition, the Participant Grantee should be aware that the Australian dollar value of any Stock Shares acquired under pursuant to the Plan Award will be affected by the U.S. dollar/Australian dollar exchange rate. Participation in the Plan involves certain risks related to fluctuations in this rate of exchange. Common Stock Common stock of a U.S. corporation is analogous to ordinary shares of an Australian corporation. Each holder of the Company's common stock Common Stock is entitled to one vote for every share held in the Companyeach Share held. Dividends may be paid on the shares of Common Stock out of any funds of the Company legally available for dividends at the discretion of the Board. The shares of Common Stock are is traded on the New York Stock Exchange in the United States of America under the symbol "ADS". “ELAN.” The shares of Stock Shares are not liable to any further calls for payment of capital or for other assessment by the Company and have no sinking fund provisions, pre-emptive rights, conversion rights or redemption provisions.

Additional Risk Factors for Australian Residents. Participants The Grantee should have regard to risk factors relevant to investment in securities generally and, in particular, to the holding of shares of Common Stock. For example, the price at which the Common Stock is quoted traded on the New York Stock Exchange may increase or decrease due to a number of factors. There is no guarantee that the price of the Common Stock will increase. Factors which may affect the price of the Common Stock include fluctuations in the domestic and international market for listed stocks, general economic conditions, including interest rates, inflation rates, commodity and oil prices, changes to government fiscal, monetary or regulatory policies, legislation or regulation, the nature of the markets in which the Company operates and general operational and business risks. In addition, the Participant Grantee should be aware that the Australian dollar value of any Stock Shares acquired under pursuant to the Plan Award will be affected by the U.S. dollar/Australian dollar exchange rate. Participation in the Plan involves certain risks related to fluctuations in this rate of exchange. Common Stock Common stock of a U.S. corporation is analogous to ordinary shares of an Australian corporation. Each holder of the Company's common stock Common Stock is entitled to one vote for every share held in the Companyeach Share held. Dividends may be paid on the shares of Common Stock out of any funds of the Company legally available for dividends at the discretion of the Board. The shares of Common Stock are is traded on the New York Stock Exchange in the United States of America under the symbol "ADS". “ELAN.” The shares of Stock Shares are not liable to any further calls for payment of capital or for other assessment by the Company and have no sinking fund provisions, pre-emptive rights, conversion rights or redemption provisions.