Document:

Exhibit 4.2

 

EXECUTION COPY

 

FINCO ACCESSION AGREEMENT

 

US$1,000,000,000 Additional Facility Z Accession Agreement

 

To:                              The Bank of Nova Scotia as Facility Agent (the Facility Agent) and the Bank of Nova Scotia as Security Agent (the Security Agent)

 

From:                  UPCB Finance III Limited (the Additional Facility Z Lender)

 

Date:                    16 February 2011

 

UPC Broadband Holding B.V. (formerly known as UPC Distribution Holding B.V.)—€1,072,000,000 Term Credit Agreement dated 16 January 2004 as amended from time to time (the Credit Agreement)

 

1.                                       In this Agreement:

 

Indenture means the indenture, dated on or about the date of this Agreement, among, inter alios, the Additional Facility Z Lender, as issuer, The Bank of New York Mellon, as trustee, transfer agent, registrar and principal paying agent.

 

Facility Z means US$1,000,000,000 term loan facility made available under this Agreement.

 

Facility Z Advance means the U.S. dollar denominated advance made to UPC Financing by the Additional Facility Z Lender under Facility Z.

 

Facility Z Commitment means, in relation to the Additional Facility Z Lender, the amount in U.S. dollars set opposite its name under the heading “Facility Z Commitment” in Schedule 1 to this Agreement, to the extent not cancelled, transferred, or reduced under the Credit Agreement.

 

Notes has the meaning given to that term in the Indenture.

 

Trustee has the meaning given to that term in the Indenture.

 

2.                                       Unless otherwise defined in this Agreement, terms defined in the Credit Agreement shall have the same meaning in this Agreement and a reference to a Clause is a reference to a Clause of the Credit Agreement. The principles of construction set out in Clause 1.2 (Construction) of the Credit Agreement apply to this Agreement as though they were set out in full in this Agreement.

 

3.                                       We refer to Clause 2.2 (Additional Facilities) of the Credit Agreement.

 

4.                                       This Agreement will take effect on the date on which the Facility Agent notifies UPC Broadband and the Additional Facility Z Lender that it has received the documents and evidence set out in Schedule 2 to this Agreement, in each case in form and substance satisfactory to it or, as the case may be, the requirement to provide any of such documents or evidence has been waived by the Facility Agent on behalf of the Additional Facility Z Lender (the Effective Date).

 

5.                                       The Additional Facility Z Lender agrees:

 

 

(a)                                  to become a party to and to be bound by the terms of the Credit Agreement as Lender in accordance with Clause 2.2 (Additional Facilities) of the Credit Agreement; and

 

(b)                                 to become a party to the Security Deed as Lender and to observe, perform and be bound by the terms and provisions of the Security Deed in the capacity of Lender in accordance with Clause 9.3 (Transfers by Lenders) of the Security Deed.

 

6.                                       The Additional Facility Commitment in relation to the Additional Facility Z Lender (for the purpose of the definition of Additional Facility Commitment in Clause 1.1 (Definitions) of the Credit Agreement) is its Facility Z Commitment.

 

7.                                       The Borrower in relation to Facility Z is UPC Financing.

 

8.                                       (a)           Provided that any upsizing of Facility Z permitted under this Clause 8 will not breach any term of the Credit Agreement, Facility Z may be upsized by any amount, by the signing of one or more further Additional Facility Z Accession Agreements, that specify (along with the other terms specified therein) UPC Financing as the sole Borrower and which specify Additional Facility Z Commitments denominated in U.S. dollars, to be drawn in U.S. dollars, with the same Final Maturity Date and Margin as specified in this Additional Facility Z Accession Agreement.

 

(b)                                 For the purposes of this Clause 8 (unless otherwise specified), references to Facility Z Advances shall include Advances made under any such further Additional Facility Z Accession Agreement.

 

(c)                                  Where any Facility Z Advance has not already been consolidated with any other Facility Z Advance, on the last day of any Interest Period for such Facility Z Advance, that Facility Z Advance will be consolidated with any other Facility Z Advance which has an Interest Period ending on the same day as that Facility Z Advance, and all such Facility Z Advances will then be treated as one Advance.

 

9.                                       Facility Z may be drawn by one Advance on the date of this Agreement and such date will constitute the Availability Period for Facility Z. No more than one Request may be made in respect of Facility Z under the Credit Agreement and such Request may only be in a principal amount of the Additional Facility Commitment in to relation to Facility Z as set out in Clause 6 above.

 

10.                                 The Facility Z Advance will be used for general corporate purposes and working capital purposes, including the repayment or prepayment of existing indebtedness.

 

11.                                 The Final Maturity Date in respect of Facility Z is July 1, 2020. Any outstanding Advance under Facility Z shall be repaid in full on the Final Maturity Date.

 

12.                                The interest rate for the Facility Z will be a fixed rate of 6.625 per cent. per annum. This will be calculated in accordance with Clause 8.1 (Interest rate) of the Credit Agreement as being the sum of LIBOR, the applicable Margin and the Mandatory Costs, where, in order to achieve the fixed rate referred to above, the applicable Margin will be:

 

(a)                                  6.625 per cent. per annum, calculated on the basis of a 360-day year comprised of twelve 30-day months;

 

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minus

 

(b)                                 the sum of LIBOR plus the Mandatory Costs.

 

For the avoidance of doubt, for the purpose of this calculation, the applicable Margin may be a negative number. Further, the interest rate for this Facility Z will never exceed 6.625 per cent. per annum (save to the extent that Clause 8.8 (Default interest) may apply).

 

13.                                 Pursuant to Clause 8.2 (Selection of Interest Periods) of the Credit Agreement, the Borrower hereby notifies the Facility Agent that while the Facility Z Advance is outstanding it selects six months for all Interest Periods in relation to that Advance.

 

14.                                 Upon the delivery by the Facility Agent of a notice of cancellation of Facility Z pursuant to Clause 7.4(v)(B) (Change of Control) of the Credit Agreement following the occurrence of a Change of Control (as defined under Clause 7.4 (Change of Control) of the Credit Agreement, UPC Broadband shall make a payment to the Facility Agent (for the account of the Additional Facility Z Lender) in an amount equal to 1 per cent. of the principal amount of the outstanding Facility Z Advance. Such payment shall be due and payable by UPC Broadband to the Facility Agent (for the account of the Additional Facility Z Lender) on the actual date of such mandatory prepayment.

 

15.                                 Subject to Clause 17 of this Agreement, at any time prior to July 1, 2015, upon the occurrence of any voluntary prepayment of any of the Facility Z Advance by UPC Broadband pursuant to Clause 7.3 (Voluntary prepayment) of the Credit Agreement in an amount not to exceed 10% of the original principal amount of the Facility Z Advance during each twelve-month period commencing on the date of this Agreement, UPC Broadband shall make a payment to the Facility Agent (for the account of the Additional Facility Z Lender) in an amount (the Prepayment Premium) equal to 3% of the principal amount of the Facility Z Advance being prepaid, plus accrued and unpaid interest then due on the amount of the Facility Z Advance prepaid to the due date of prepayment. Such payment shall be due and payable by UPC Broadband to the Facility Agent (for the account of the Additional Facility Z Lender) on the actual date of such prepayment. Prior to July 1, 2015, to the extent that during any twelve-month period commencing on the date of this Agreement, the principal amount of the Facility Z Advance prepaid in any one or more voluntary prepayments is greater than an amount equal to 10% of the original principal amount of the Facility Z Advance (any such amount, the “Excess Early Redemption Proceeds”), UPC Broadband will apply the Excess Early Redemption Proceeds to a voluntary prepayment of the Facility Z Advance as described in Clause 16 below.

 

16.                                 Subject to Clause 17 of this Agreement, at any time prior to July 1, 2015, upon the occurrence of a voluntary prepayment of all or any part of the outstanding Facility Z Advance by UPC Broadband pursuant to Clause 7.3 (Voluntary prepayment) of the Credit Agreement with any Excess Early Redemption Proceeds, UPC Broadband shall make a payment to the Facility Agent (for the account of the Additional Facility Z Lender) in an amount equal to the Make-Whole Amount (as defined below) (calculated as of a date no more than three Business Days prior to the date of the relevant Cancellation Notice) as of the due date of such prepayment. Such payment shall be due and payable by UPC Broadband to the Facility Agent (for the account of the Additional Facility Z Lender) on the actual date of such prepayment.

 

For the purposes of this Clause 16:

 

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Make-Whole Amount means, with respect to Facility Z on any date on which all or any part of the outstanding Facility Z Advance is to be prepaid pursuant to Clause 7.3 (Voluntary prepayment) of the Credit Agreement (to the extent of any Excess Early Redemption Proceeds), the excess of:

 

(a)                                  the present value at such prepayment date of (i) the total amount that would be payable to the Facility Agent (for the account of the Additional Facility Z Lender) if all or such portion of the outstanding Facility Z Advance were prepaid pursuant to Clause 7.3 (Voluntary prepayment) of the Credit Agreement on July 1, 2015 (including the outstanding principal amount of such Advance and the Additional Amount (as defined below) required under this Clause 16, but excluding accrued interest and any other amounts payable under the Credit Agreement in connection with such prepayment) plus (ii) all required remaining scheduled interest payments due in respect of all or such portion of the outstanding Facility Z Advance through July 1, 2015 (excluding accrued but unpaid interest to the prepayment date), computed using a discount rate equal to the Treasury Rate (as defined below) as of such prepayment date plus 50 basis points; over

 

(b)                                 the principal amount of the outstanding Facility Z Advance being prepaid.

 

Treasury Rate  means, as of any redemption date, the yield to maturity at the time of computation of U.S. Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) which has become publicly available at least two Business Days (but not more than five Business Days) prior to the Redemption Date (or, if such statistical release is not so published or available, any publicly available source of similar market date selected by the Issuer in good faith)) most nearly equal to the period from the Redemption Date to July 1, 2015; provided, however, that if the period from the Redemption Date to July 1, 2015 is not equal to the constant maturity of a U.S. Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by a linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of U.S. Treasury securities for which such yields are given, except that if the period from the Redemption Date to July 1, 2015 is less than one year, the weekly average yield on actually traded U.S. Treasury securities adjusted to a constant maturity of one year shall be used.

 

Subject to Clause 17 of this Agreement, on or after July 1, 2015, upon the occurrence of a voluntary prepayment of all or any part of the outstanding Facility Z Advance by UPC Broadband pursuant to Clause 7.3 (Voluntary prepayment) of the Credit Agreement, UPC Broadband shall pay to the Facility Agent (for the account of the Additional Facility Z Lender) an amount (the Additional Amount) equal to the relevant percentage set out in the table below of the principal amount of the Facility Z Advance being prepaid on the due date of such prepayment, if prepaid during the twelve month period beginning on July 1 of the years indicated below:

 

	
Year
    	
 
    	
Relevant
   Percentage
    	
 
    
	
2015
    	
 
    	
3.313
    	
%
    
	
2016
    	
 
    	
2.208
    	
%
    
	
2017
    	
 
    	
1.104
    	
%
    
	
2018 and thereafter
    	
 
    	
0.000
    	
%
    

 

Such payment shall be due and payable by UPC Broadband to the Facility Agent (for the account of the Additional Facility Z Lender) on the actual date of such prepayment.

 

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17.                                 Notwithstanding Clauses 15 and 16 above, no Prepayment Premium, Make-Whole Amount or Additional Amount shall be payable in connection with a voluntary prepayment of the whole of the outstanding Facility Z Advance by UPC Broadband pursuant to Clause 7.3 (Voluntary prepayment) of the Credit Agreement that is made following the completion of the UPC Exchange Transaction (as defined in the Indenture), provided that the Borrower has given notice of such prepayment not later than three Business Days prior to the completion of the UPC Exchange Transaction and such prepayment is made on the completion of the UPC Exchange Transaction.

 

18.                                 The Additional Facility Z Lender acknowledges that the Borrower may discharge all or part of the Facility Z Advance pursuant to Clause 7.3 (Voluntary prepayment) of the Credit Agreement in connection with the UPC Exchange Transaction by way of one or a combination of (1) a cash prepayment, (2) an issue of new notes or (3) the purchase of the existing Notes (in the case of (2) and (3), in accordance with the mechanisms, and on the terms, agreed between the Borrower and the Additional Facility Z Lender at the relevant time and provided that the amount and date of such discharge is notified to the Facility Agent in writing by the Borrower and the Additional Facility Z Lender on or before the date of such discharge). The parties to this Agreement acknowledge that this Agreement may require amendment (in accordance with the relevant provisions of the Credit Agreement) to facilitate the discharge of all or part of the Facility Z Advance in connection with the UPC Exchange Transaction and agree to discuss and negotiate any such amendments in good faith at the relevant time.

 

19.                                 For the purposes of any amendment or waiver (including with respect to any existing Default or Event of Default) that may be sought by UPC Broadband and UPC Financing under the Credit Agreement on or after the date of this Agreement, the Additional Facility Z Lender hereby consents to any and all of the following (and this Agreement shall constitute the Additional Facility Z Lender’s irrevocable and unconditional written consent for the purposes of Clause 25 of the Credit Agreement without any further action required on the part of any Party):

 

(a)                                  any amendment, waiver or other modification to the Credit Agreement or any other Finance Document to provide that an “Additional Facility Commitment” and an “Advance” (and any participation therein) as set forth in Clause 1.1 of the Credit Agreement shall be deemed to be cancelled (with respect to any Additional Facility Commitment) and not outstanding (with respect to any Advance) for purposes of voting or consents (other than any vote or consent related to non-payment of such Advance) under the Credit Agreement if UPC Broadband Holding has delivered to the Facility Agent a duly completed Cancellation Notice with respect to such Additional Facility Commitment or Advance; provided that any such Advance shall remain due and payable on the applicable prepayment date and, if not repaid in full on the applicable prepayment date, then all voting or consent rights with respect thereto shall be reinstated with retroactive effect from the date of delivery of such Cancellation Notice;

 

(b)                                 any amendment, waiver or other modification to the Credit Agreement or any other Finance Document to reduce the percentage specified in the definition of “Majority Lenders” in Clause 1.1 of the Credit Agreement from 662/3 per cent. to a percentage that is not less than 50.1 per cent. (for any or all purposes under the Credit Agreement or any other Finance Document);

 

(c)                                  any amendment, waiver or other modification to the Credit Agreement or any other Finance Document to change the definition of “Western Europe” in Clause 1.1 of the

 

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Credit Agreement to include the countries that comprise the European Union as of a specified date more recent than the Effective Date, or from time to time (in addition to Scandinavia and Switzerland);

 

(d)                                 any amendment, waiver or other modification to the Credit Agreement or any other Finance Document to change the definition of “Acquisition Business Plan” and the definition of “Borrower Group Business Plan” in Clause 1.1 of the Credit Agreement to limit the time period covered by any business plan of the Target or, as applicable, the Borrower Group (including the Target) to a period of not less than the earlier of five years following the date of the relevant Acquisition and the Final Maturity Date;

 

(e)                                  any amendment, waiver or other modification to the Credit Agreement or any other Finance Document to eliminate the limitations set forth in subclause (b)(i) of the definition of “Permitted Acquisition” in Clause 1.1 of the Credit Agreement and in subclause (b)(i) of the definition of “Permitted Joint Venture” in Clause 1.1 of the Credit Agreement with respect to businesses conducted in Great Britain and/or Germany;

 

(f)                                    any amendment, waiver or other modification to the Credit Agreement or any other Finance Document to eliminate the requirements set forth in subclause (b)(ii)(A)(II) of the definition of “Permitted Acquisition” in Clause 1.1 of the Credit Agreement and in subclause (b)(ii)(A)(II) of the definition of “Permitted Joint Venture” in Clause 1.1 of the Credit Agreement to deliver the financial projections specified therein, or to reduce the time period for compliance stated in either subclause;

 

(g)                                 any amendment, waiver or other modification to the Credit Agreement or any other Finance Document to increase the amount of secured indebtedness specified in subclause (n) of the definition of “Permitted Security Interest” in Clause 1.1 of the Credit Agreement from €15,000,000 to an amount not to exceed €100,000,000 (or its equivalent);

 

(h)                                 any amendment, waiver or other modification to the Credit Agreement or any other Finance Document to eliminate the reporting requirements set forth in subclause (c) of Clause 16.2 of the Credit Agreement, or to change the time period for compliance specified therein;

 

(i)                                     any amendment, waiver or other modification to the Credit Agreement or any other Finance Document to include as a “Permitted Disposal” under Clause 16.10(b)(xvi) of the Credit Agreement the disposal of any person or asset if:  (i) at the time of such disposal, UPC Broadband has contractually committed or agreed to a future Acquisition and such an Acquisition occurs within twelve months (or less) of the disposal;  (ii) the Remaining Percentage would not be exceeded if the aggregate percentage value of the contemplated Acquisition is added to the calculation and tested at the time of the disposal on a pro forma basis (giving effect to the Annualised EBITDA of the Target based on then available historical financial information) and on an actual basis at the completion of the Acquisition (and for these purposes (A) subclause 16.10(c)(z) of the Credit Agreement would be disapplied so that the Remaining Percentage could exceed 17.5 per cent. in respect of the relevant disposal and (B) subclause 16.10(c)(x) of the Credit Agreement would be disapplied so that the percentage of the Annualised EBITDA of the Borrower Group represented by the Annualised EBITDA of the relevant disposal could be more than the Remaining Percentage immediately prior to such disposal, in each case provided the Remaining Percentage would not be exceeded once any contemplated

 

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Acquisition is taken into account as described in this subparagraph (ii)); and (iii) for the purpose of the certificate required in Clause 16.10(b)(xvi)(C), the financial ratios are calculated giving pro forma effect to such Acquisition (based on the then available historical financial information of the Target and including the Annualised EBITDA of the Target and any Financial Indebtedness expected to be incurred by the Borrower Group to finance such Acquisition) (and any such amendment, waiver or other modification contemplated by this subclause (h) may apply to all such disposals and future Acquisitions or only to specified disposals and Acquisitions);

 

(j)                                     any amendment, waiver or other modification to the Credit Agreement or any other Finance Document to eliminate the provision set forth in subclause (c)(y) of Clause 16.10 of the Credit Agreement that the percentage value of a Reinvestment shall be disregarded if the Annualised EBITDA of the members of the Borrower Group derived from persons or assets located in Western Europe is less than 662/3 per cent. of the Annualised EBITDA of the Borrower Group, or to change the percentage or the geographical limitation specified therein;

 

(k)                                  any amendment, waiver or other modification to the Credit Agreement or any other Finance Document to increase the amount of Financial Indebtedness specified in Clause 16.12(b)(xvii) of the Credit Agreement from €25,000,000 to an amount not to exceed €100,000,000 (or its equivalent);

 

(l)                                     any amendment, waiver or other modification to the Credit Agreement or any other Finance Document to change the calculation of any financial ratio that requires the calculation of Senior Debt and/or Total Debt to provide for the netting of cash and cash equivalents (to be defined substantially in line with and/or with reference to standard language used in the European banking market) against Senior Debt and/or Total Debt; and

 

(m)                               any consequential amendment, waiver or other modification to the Credit Agreement or any other Finance Document arising as a direct result of the changes envisaged in subclauses (a) to (l) of this Clause 19.

 

The Additional Facility Z Lender hereby waives receipt of any fee in connection with the foregoing consent, notwithstanding that other consenting Lenders under the Credit Facility may be paid a fee in consideration of such Lenders’ consent to any or all of the foregoing amendments, waivers or other modifications.

 

20.                                 In the event that the Additional Facility Z Lender is eligible or required to vote (or otherwise consent) with respect to any matter (other than the matters specified in paragraphs (a) through (m) of Clause 19 above) arising from time to time under the Credit Agreement or this Agreement the Facility Agent will apply the votes of the Additional Facility Z Lender in accordance with a written direction to be provided by the Additional Facility Z Lender or the Trustee (on behalf of the Additional Facility Z Lender).  The Additional Facility Z Lender agrees that it will give any such direction in accordance with the provisions of Section 9.01 of the Indenture. For the avoidance of doubt, the Facility Agent may rely on any such directions received and shall have no duty to enquire or monitor as to whether such direction complies with Section 9.01 of the Indenture.

 

21.                                 Each of UPC Broadband and UPC Financing confirms, on behalf of themselves and each other Obligor that the representations and warranties set out in Clause 15 (Representations and

 

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Warranties) of the Credit Agreement (with the exception of Clauses 15.6(a) (Consents), 15.10 (Financial condition), 15.12 (Security Interests), 15.13(b) (Litigation and insolvency proceedings), 15.14 (Business Plan), 15.15 (Tax liabilities), 15.16 (Ownership of assets), 15.18 (Works Council), 15.19 (Borrower Group Structure), 15.20 (ERISA), 15.24 (UPC Financing) and 15.25 (Dutch Banking Act)) are true and correct as if made at the Effective Date with reference to the facts and circumstances then existing, and as if each reference to the Finance Documents includes a reference to this Agreement.

 

22.                                 UPC Broadband further represents and warrants on the Effective Date that the execution and delivery by it of this Agreement and the performance of the transactions contemplated by this Agreement will not violate any agreement or instrument to which UPC Holding is a party or binding upon UPC Holding or any member of the Borrower Group or any assets of UPC Holding or any member of the Borrower Group’s assets, where such violation would or is reasonably likely to have a Material Adverse Effect.

 

23.                                 The Additional Facility Z Lender confirms to each Finance Party that:

 

(a)                                  it has made its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in the Credit Agreement and has not relied on any information provided to it by a Finance Party in connection with any Finance Document; and

 

(b)                                 it will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities while any amount is or may be outstanding under the Credit Agreement or any Additional Facility Commitment is in force.

 

24.                                 The Additional Facility Z Lender agrees to waive the notice period in respect of delivery of drawdown requests under Clause 5.1 (Delivery of Request) of the Credit Agreement in respect of the Facility Z. The Additional Facility Z Lender, the Borrower and the Facility Agent acknowledge and agree that (a) the Facility Z Advance shall be made by the Additional Facility Z Lender directly to the Borrower to an account notified by the Borrower to the Additional Facility Z Lender, rather than through the Facility Agent, and (b) in respect of any other payments of principal, interest or other amounts due under Facility Z, (i) the Borrower shall make payments payable by it to the Additional Facility Z Lender directly to the Additional Facility Z Lender (or to such account as the Additional Facility Z Lender may specify), and (ii) the Additional Facility Z Lender shall make payments payable by it to the Borrower directly to the Borrower (or to such account as the Borrower may specify).  The Additional Facility Z Lender agrees that it shall promptly notify the Facility Agent if the Borrower fails to make any payment under subclause (b)(i) of this Clause 24 when due, and the Borrower agrees that it shall promptly notify the Facility Agent if the Additional Facility Z Lender fails to make any payment under subclause (b)(ii) of this Clause 24 when due.

 

25.                                 The Facility Office and address for notices of the Additional Facility Z Lender for the purposes of Clause 32.2 (Addresses for notices) of the Credit Agreement will be that notified by the Additional Facility Z Lender to the Facility Agent.

 

26.                                The Facility Agent may provide copies of the Indenture, or disclose its contents, to any Finance Party upon request by that Finance Party.

 

27.                                 This Agreement and any non contractual obligations arising out of or in connection with it are governed by English law.

 

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28.                                 This Agreement may be executed in any number of counterparts, and by each party on separate counterparts. Each counterpart is an original, but all counterparts shall together constitute one and the same instrument. Delivery of an executed counterpart signature page of this Agreement by e-mail (PDF) or telecopy shall be as effective as delivery of a manually executed counterpart of this Agreement. In relation to each counterpart, upon confirmation by or on behalf of the signatory that the signatory authorises the attachment of such counterpart signature page to the final text of this Agreement, such counterpart signature page shall take effect together with such final text as a complete authoritative counterpart.

 

29.                                 For purposes of any assignment, transfer or novation of rights and/or obligations (in whole or in part) by a Lender in respect of Facility Z under Clause 26.2 (Transfers by Lenders) of the Credit Agreement, UPC Broadband hereby consents to any assignment, transfer or novation made by the Additional Facility Z Lender (including any subsequent Lender under Facility Z) following an Event of Default (as defined in the Indenture), provided that any such assignment, transfer or novation in part shall be in a minimum amount of $150,000. The Additional Facility Z Lender may only deliver to the Facility Agent a completed assignment or transfer document or Novation Certificate (as applicable) if at that time it confirms to the Facility Agent in writing that such assignment, transfer or novation is not prohibited under the terms of any agreement that is binding on it or any of its assets.

 

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SCHEDULE 1

ADDITIONAL FACILITY Z LENDER AND COMMITMENT

 

	
Additional Facility Z Lender
    	
 
    	
Facility Z
   Commitment
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
UPCB Finance III Limited
    	
 
    	
$
    	
1,000,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
$
    	
1,000,000,000
    	
 
    

 

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SCHEDULE 2

CONDITIONS PRECEDENT DOCUMENTS

 

1.                                      Constitutional Documents

 

(a)                                  A copy of the constitutional documents of each Obligor (other than UPC Financing) and the partnership agreement of UPC Financing or, if the Facility Agent already has a copy, a certificate of an authorised signatory of the relevant Obligor confirming that the copy in the Facility Agent’s possession is still correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

 

(b)                                 An extract of the registration of each Obligor established in the Netherlands in the trade register of the Dutch Chamber of Commerce.

 

2.                                      Authorisations

 

(a)                                  A copy of a resolution of the board of managing and, to the extent applicable, board of supervisory directors (or equivalent) and, to the extent that a shareholders’ resolution is required, a copy of the shareholders’ resolution of each Obligor:

 

(i)                                   approving the terms of and the transactions contemplated by this Agreement and (in the case of UPC Broadband and UPC Financing) resolving that it execute the same (and, in the case of the Guarantors and the Charging Entities (as defined in the Security Deed) resolving that it execute the confirmation described at paragraph 4(a) below; and

 

(ii)                                (in the case of UPC Broadband and UPC Financing) authorising the issuance of a power of attorney to a specified person or persons to execute this Agreement on its behalf and (in the case of the Guarantors and the Charging Entities (as defined in the Security Deed)) authorising the issuance of a power of attorney to a specified person or persons to execute the confirmation described in paragraph 4(a) below.

 

(b)                                 A specimen of the signature of each person authorised pursuant to its constitutional documents or to the power of attorney referred to in paragraph (a) above to sign this Agreement or the confirmation described in paragraph 4(a) below (as appropriate).

 

(c)                                  A certificate of an authorised signatory of UPC Broadband, each Guarantor and each Charging Entity certifying that each copy document specified in this Schedule and supplied by UPC Broadband, each Guarantor and each Charging Entity is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

 

(d)                                 A copy of any other authorisation or other document, opinion or assurance which the Facility Agent has notified UPC Broadband is necessary in connection with the entry into and performance of, and the transactions contemplated by, this Agreement or for the validity and enforceability of this Agreement.

 

3.                                     Legal opinions

 

(a)                                  A legal opinion of Allen & Overy LLP, English legal advisers to the Facility Agent, addressed to the Finance Parties.

 

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(b)                                 A legal opinion of Allen & Overy LLP, Dutch legal advisers to the Facility Agent, addressed to the Finance Parties.

 

(c)                                  A legal opinion of Allen & Overy LLP, New York legal advisers to the Facility Agent, addressed to the Finance Parties.

 

4.                                      Other documents

 

(a)                                  Confirmation (in writing) from (i) each of the Guarantors that its obligations under Clause 14 (Guarantee) of the Credit Agreement and (ii) each of the Charging Entities (as defined in the Security Deed) that the Security Interests granted to the Beneficiaries pursuant to the Security Documents and its obligations under the Finance Documents, shall continue unaffected and that such obligations extend to the Total Commitments as increased by the addition of Facility Z and that such obligations shall be owed to each Finance Party including the Additional Facility Z Lender.

 

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SIGNATORIES

 

Facility Agent and Security Agent

 

THE BANK OF NOVA SCOTIA as Facility Agent

 

By: Authorized Signatory

 

THE BANK OF NOVA SCOTIA as Security Agent

 

By: Authorized Signatory

 

[signature page to Accession Agreement to Credit Agreement]

 

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SIGNATORIES

 

Additional Facility Z Lender

 

UPCB FINANCE III LIMITED

 

By: Authorized Signatory

 

[signature page to Accession Agreement to Credit Agreement]

 

14

 

SIGNATORIES

 

UPC BROADBAND HOLDING B.V.

 

By: Authorized Signatory

 

UPC FINANCING PARTNERSHIP

 

By: Authorized Signatory

 

[signature page to Accession Agreement to Credit Agreement]

 

15Exhibit 10.1

 

THE COCA-COLA COMPANY
 1999 STOCK OPTION PLAN 
 (Amended and Restated Through February 16, 2011)

 

Section 1. Purpose

 

The purpose of The Coca-Cola Company 1999 Stock Option Plan (the “Plan”) is to advance the interest of The Coca-Cola Company (the “Company”) and its Related Companies (as defined in Section 2) by encouraging and enabling the acquisition of a financial interest in the Company by officers and other key employees of the Company or its Related Companies. In addition, the Plan is intended to aid the Company and its Related Companies in attracting and retaining key employees, to stimulate the efforts of such employees and to strengthen their desire to remain in the employ of the Company and its Related Companies. Also, the Plan is intended to help the Company and its Related Companies, in certain instances, to attract and compensate consultants to perform key services.

 

Section 2. Definitions

 

“Board” means the Board of Directors of the Company.

 

“Business Day” means a day on which the New York Stock Exchange is open for securities trading.

 

“Change in Control” shall mean a change in control of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A under the Securities Exchange Act of 1934 (“1934 Act”) as in effect on January 1, 1999, provided that such a change in control shall be deemed to have occurred at such time as (i) any “person” (as that term is used in Sections 13(d) and 14(d)(2) of the 1934 Act), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act as in effect on January 1, 1999) directly or indirectly, of securities representing 20% or more of the combined voting power for election of directors of the then outstanding securities of the Company or any successor of the Company; (ii) during any period of two (2) consecutive years or less, individuals who at the beginning of such period constituted the Board of Directors cease, for any reason, to constitute at least a majority of the Board of Directors, unless the election or nomination for election of each new director was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period; (iii) the shareowners of the Company approve any merger or consolidation as a result of which the KO Common Stock (as defined below) shall be changed, converted or exchanged (other than a merger with a wholly owned subsidiary of the Company) or any liquidation of the Company or any sale or other disposition of 50% or more of the assets or earning power of the Company, and such merger, consolidation, liquidation or sale is completed; or (iv) the shareowners of the Company approve any merger or consolidation to which the Company is a party as a result of which the persons who were shareowners of the Company immediately prior to the effective date of the merger or consolidation shall have beneficial ownership of less than 50% of the combined voting power for election of directors of the surviving corporation following the effective date of such merger or consolidation, and such merger, consolidation, liquidation or sale is completed; provided, however, that no Change in Control shall be deemed to have occurred if, prior to such times as

 

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a Change in Control would otherwise be deemed to have occurred, the Board of Directors determines otherwise. Additionally, no Change in Control will be deemed to have occurred under clause (i) if, subsequent to such time as a Change of Control would otherwise be deemed to have occurred, a majority of the Directors in office prior to the acquisition of the securities by such person determines otherwise.

 

“Committee” means a committee appointed by the Board of Directors in accordance with the Company’s By-Laws from among its members.

 

“Disabled” or “Disability” means a condition for which an optionee becomes eligible for a disability benefit under the long term disability insurance policy issued to the Company providing Basic Long Term Disability Insurance benefits pursuant to The Coca-Cola Company Health and Welfare Benefits Plan, or under any other long term disability plan which hereafter may be maintained by the Company, whether or not the optionee is covered by such plans.

 

“ISO” means an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended.

 

“KO Common Stock” means The Coca-Cola Company Common Stock, par value $.25 per share.

 

“Majority-Owned Related Company” means a Related Company in which the Company owns, directly or indirectly, 50% or more of the voting stock or capital at the relevant time.

 

“NSO” means a stock option that does not constitute an ISO.

 

“Options” means ISOs and NSOs granted under this Plan.

 

“Related Company” or “Related Companies” means corporation(s) or other business organization(s) in which the Company owns, directly or indirectly, 20% or more of the voting stock or capital at the relevant time.

 

“Years of Service” means “Years of Vesting Service” as that term is defined in the Employee Retirement Plan of The Coca-Cola Company.

 

Section 3. Options

 

The Company may grant ISOs and NSOs to those persons meeting the eligibility requirements in Section 6(a) and NSOs to those persons meeting the eligibility requirements in Sections 6(b) and 6(c).

 

Section 4. Administration

 

The Plan shall be administered by the Committee. No person, other than members of the Committee, shall have any discretion concerning decisions regarding the Plan. The Committee shall determine the key employees of the Company and its Related Companies (including officers, whether or not they are directors) and consultants to whom, and the time or times at which, Options will be

 

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granted; the number of shares to be subject to each Option; the duration of each Option; the time or times within which the Option may be exercised; the cancellation of the Option (with the consent of the holder thereof); and the other conditions of the grant of the Option, at grant or while outstanding, pursuant to the terms of the Plan. The provisions and conditions of the Options need not be the same with respect to each optionee or with respect to each Option.

 

The Committee may, subject to the provisions of the Plan, establish such rules and regulations as it deems necessary or advisable for the proper administration of the Plan, and may make determinations and may take such other action in connection with or in relation to the Plan as it deems necessary or advisable. Each determination or other action made or taken pursuant to the Plan, including interpretation of the Plan and the specific conditions and provisions of the Options granted hereunder by the Committee, shall be final and conclusive for all purposes and upon all persons including, but without limitation, the Company, its Related Companies, the Committee, the Board, officers and the affected employees and consultants to the Company and/or its Related Companies, optionees and the respective successors in interest of any of the foregoing.

 

Section 5. Stock

 

(a)   The KO Common Stock to be issued, transferred and/or sold under the Plan shall be made available from authorized and unissued KO Common Stock or from the Company’s treasury shares. The total number of shares of KO Common Stock that may be issued or transferred under the Plan pursuant to Options granted thereunder may not exceed 120,000,000 shares (subject to adjustment as described below). Such number of shares shall be subject to adjustment in accordance with Section 5 and Section 11.

 

(b)   Shares Counted Against Limitation.  If an Option is exercised by delivery, sale or attestation of Shares of KO Common Stock under Section 7, or if the tax withholding obligation is satisfied by withholding or selling Shares of KO Common Stock under Section 7, the number of Shares of KO Common Stock deemed to have been issued under the Plan (for purposes of the limitation set forth in this section) shall be the number of Shares of KO Common Stock that were subject to the Option or portion thereof so exercised and not the net number of Shares of KO Common Stock actually issued upon such exercise.

 

(c)   Lapsed Awards.  If an Option: (i) expires; (ii) is terminated, surrendered, or canceled without having been exercised in full; or (iii) is otherwise forfeited in whole or in part, then the unissued Shares of KO Common Stock that were subject to such Option and/or such surrendered, canceled, or forfeited Shares of KO Common Stock shall become available for future grant under the Plan.

 

Section 6. Eligibility

 

Options may be granted to:

 

(a)  employees of the Company and its Majority-Owned Related Companies,

 

(b) particular employee(s) of a Related Company, who within the past eighteen (18) months were employee(s) of the Company or a Majority-Owned Related Company, and in rare instances to

 

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be determined by the Committee in its sole discretion, employees of a Related Company who have not been employees of the Company or a Majority-Owned Related Company within the past eighteen (18) months, and

 

(c) consultants providing key services to the Company or its Related Companies (provided that consultants are natural persons and are not former employees of the Company or any Related Company, and that consultants shall be eligible to receive only NSOs and shall not be eligible to receive ISOs).

 

Effective January 1, 2008, Options may not be granted to any individual described in Section 6(b) or 6(c).   No person shall be granted the right to acquire, pursuant to Options granted under the Plan, more than 5% of the aggregate number of shares of KO Common Stock originally authorized under the Plan, as adjusted pursuant to Section 11.

 

Section 7. Awards of Options

 

Except as otherwise specifically provided in this Plan, Options granted pursuant to the Plan shall be subject to the following terms and conditions:

 

(a)   Option Price. The Option price shall be no less than 100% of the fair market value of the KO Common Stock on the date of grant. The fair market value of a share of KO Common Stock shall be the average of the high and low market prices at which a share of KO Common Stock shall have been sold on the date of grant, or on the next preceding trading day if such date was not a trading date, as reported on the New York Stock Exchange Composite Transactions listing.

 

(b)   Payment of Option Price. The Option price shall be paid in full at the time of exercise, except as provided in the next sentence. If an exercise is executed by Merrill Lynch, Pierce, Fenner & Smith using the cashless method, the exercise price shall be paid in full no later than the close of business on the third Business Day following the exercise.

 

Payment may be in cash or, upon conditions established by the Committee, by delivery of shares of KO Common Stock owned for at least six (6) months by the optionee prior to the date of exercise.

 

The optionee, if a U.S. taxpayer, may elect to satisfy Federal, state and local income tax liabilities due by reason of the exercise by the withholding of shares of KO Common Stock.

 

If shares are delivered to pay the Option price or if shares are withheld for U.S. taxpayers to satisfy such tax liabilities, the value of the shares delivered or withheld shall be computed on the basis of the reported market price at which a share of KO Common Stock most recently traded prior to the time the exercise order was processed. Such price will be determined by reference to the New York Stock Exchange Composite Transactions listing.

 

(c)   Exercise May Be Delayed until Withholding is Satisfied. The Company may refuse to recognize the exercise an Option if the optionee has not made arrangements satisfactory to the

 

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Company to satisfy the tax withholding which the Company determines is necessary to comply with applicable requirements.

 

(d)   Duration of Options. The duration of Options shall be determined by the Committee, but in no event shall the duration of an Option exceed ten years from the date of its grant.

 

(e)   Vesting. Options shall contain such vesting terms as are determined by the Committee, at its sole discretion, including, without limitation, vesting upon the achievement of certain specified performance targets. In the event that no vesting determination is made by the Committee, Options shall vest as follows: (1) 25% on the first anniversary of the date of the grant; (2) 25% on the second anniversary of the date of the grant; (3) 25% on the third anniversary of the date of the grant; and (4) 25% on the fourth anniversary of the date of the grant.

 

(f)    Other Terms and Conditions. Options may contain such other provisions, not inconsistent with the provisions of the Plan, as the Committee shall determine appropriate from time to time, including vesting provisions; provided, however, that, except in the event of a Change in Control or the Disability or death of the optionee, no grant shall provide that an Option shall be exercisable in whole or in part for a period of twelve (12) months from the date on which the Option is granted. The grant of an Option to any employee shall not affect in any way the right of the Company and any Related Company to terminate the employment of such employee. The grant of an Option to any consultant shall not affect in any way the right of the Company and any Related Company to terminate the services of such consultant.

 

(g)   ISOs. The Committee, with respect to each grant of an Option to an optionee, shall determine whether such Option shall be an ISO, and, upon determining that an Option shall be an ISO, shall designate it as such in the written instrument evidencing such Option. If the written instrument evidencing an Option does not contain a designation that it is an ISO, it shall not be an ISO.

 

The aggregate fair market value (determined in each instance on the date on which an ISO is granted) of the KO Common Stock with respect to which ISOs are first exercisable by any optionee in any calendar year shall not exceed $100,000 for such optionee (or such other time limit as may be required by the Internal Revenue Code of 1986, as amended). If any subsidiary or Majority-Owned Related Company of the Company shall adopt a stock option plan under which Options constituting ISOs may be granted, the fair market value of the stock on which any such incentive stock options are granted and the times at which such incentive stock options will first become exercisable shall be taken into account in determining the maximum amount of ISOs which may be granted to the optionee under this Plan in any calendar year.

 

Section 8. Nontransferability of Options

 

No Option granted pursuant to the Plan shall be transferable otherwise than by will or by the laws of descent and distribution. During the lifetime of an optionee, the Option shall be exercisable only by the optionee personally or by the optionee’s legal representative.

 

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Section 9. Effect of Termination of Employment, Other Changes of Employment or Employee Status, Death, or a Change in Control

 

(a)   For Employees. For optionees who are employees of the Company or its Related Companies on the date of grant, the following provisions shall apply:

 

	
Event
    	
 
    	
Impact on Vesting
    	
 
    	
Impact on Exercise Period
    
	
Employment   terminates upon Disability
    	
 
    	
All   Options become immediately vested
    	
 
    	
Option   expiration date provided in grant continues to apply
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Employment   terminates after attaining age 60 and completing 10 Years of Service
    	
 
    	
Option   held at least 12 full calendar months become immediately vested; Options   held less than 12 full calendar months are forfeited
    	
 
    	
Option   expiration date provided in grant continues to apply
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Employment   terminates upon death
    	
 
    	
All   Options become immediately vested
    	
 
    	
Right   of executor, administrator of estate (or other transferee permitted by   Section 8) terminates on earlier of (1) 5 years from the date   of death, or (2) the expiration date provided in the Option
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Employment   with the Company or a Majority-Owned Related Company terminates within two   years of a Change in Control(1)
    	
 
    	
All   Options become immediately vested
    	
 
    	
Option   expiration date provided in grant continues to apply
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Termination   of employment for any other reason.
    	
 
    	
Unvested   Options are forfeited
    	
 
    	
Expires   upon earlier of 6 months from termination date or Option expiration date   provided in grant
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
US   military leave
    	
 
    	
Vesting   continues during leave
    	
 
    	
Option   expiration date provided in grant continues to apply
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Eleemosynary   service
    	
 
    	
Committee’s   discretion
    	
 
    	
Committee’s   discretion
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
US   FMLA leave of absence
    	
 
    	
Vesting   continues during leave
    	
 
    	
Option   expiration date provided in grant continues to apply
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Company   investment in 
    	
 
    	
Unvested   Options are forfeited
    	
 
    	
Expires   upon earlier of 
    

 

(1) Notwithstanding anything else herein, in the event of a Change in Control of the Company whereby the Options are to be i) cancelled or not assumed by the other party to the Change of Control, or ii) not replaced by substantially similar options by the other party to the Change of Control, all options become immediately vested upon the Change in Control.

 

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optionees   employer falls under 20% (this constitutes a termination of employment under   the Plan, effective the date the investment falls below 20%)
    	
 
    	
 
    	
 
    	
6 months   from termination date or Option expiration date provided in grant
    
	
OR
    	
 
    	
 
    	
 
    	
 
    
	
employment   is transferred to an entity in which the Company’s ownership interest is less   than 20%
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Employment   transferred to Related Company
    	
 
    	
Vesting   continues after transfer
    	
 
    	
Option   expiration date provided in grant continues to apply
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Death   after employment has terminated but before Option has expired (note that   termination of employment may have resulted in a change to the original   Option expiration date provided in the grant)
    	
 
    	
Not   applicable
    	
 
    	
Right   of executor, administrator of estate (or other transferee permitted by   Section 8) terminates on earlier of (1) 5 years from the date of   death, or (2) the Option expiration that applied at the date of death   (note that termination of employment may have resulted in a change to the   original Option expiration date provided in the grant)
    

 

In the case of other leaves of absence not specified above, optionees will be deemed to have terminated employment (so that Options unvested will expire and the Option exercise period will end on the earlier of 6 months from the date the leave began or the Option expiration date provided in the grant), unless the Committee identifies a valid business interest in doing otherwise in which case it may specify what provisions it deems appropriate in its sole discretion; provided that the Committee shall have no obligation to consider any such matters.

 

(b)   For Consultants. For optionees who are consultants, the provisions relating to changes of work assignment, death, disability, Change in Control, or any other provision of an Option shall be determined by the Committee at the date of the grant.

 

(c)   Committee Retains Discretion To Establish Different Terms Than Those Provided in Sections 9(a) or 9(b). Notwithstanding the foregoing provisions, the Committee may, in its sole discretion, establish different terms and conditions pertaining to the effect of an optionee’s termination on the expiration or exercisability of Options at the time of grant or (with the consent of the affected optionee) on the expiration or exercisability of outstanding Options. However, no Option can have a term of more than fifteen years.

 

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Section 10. No Rights as a Shareowner

 

An optionee or a transferee of an optionee pursuant to Section 8 shall have no right as a shareowner with respect to any KO Common Stock covered by an Option or receivable upon the exercise of an Option until the optionee or transferee shall have become the holder of record of such KO Common Stock, and no adjustments shall be made for dividends in cash or other property or other distributions or rights in respect to such KO Common Stock for which the record date is prior to the date on which the optionee or transferee shall have in fact become the holder of record of the share of KO Common Stock acquired pursuant to the Option.

 

Section 11. Adjustment in the Number of Shares and in Option Price

 

In the event there is any change in the shares of KO Common Stock through the declaration of stock dividends, or stock splits or through recapitalization or merger or consolidation or combination of shares or spin-offs or otherwise, the Committee or the Board shall make an appropriate adjustment in the number of shares of KO Common Stock available for Options as well as the number of shares of KO Common Stock subject to any outstanding Option and the Option price or exercise price thereof. Any such adjustment may provide for the elimination of any fractional shares which might otherwise become subject to any Option without payment therefor.

 

Section 12. Recapture of Options

 

The Company shall seek to recover any Option granted to any executive as required by the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act or any other “clawback” provision required by law or the listing standards of the New York Stock Exchange.

 

Section 13. Amendments, Modifications and Termination of the Plan

 

The Board or the Committee may terminate the Plan at any time. From time to time, the Board or the Committee may suspend the Plan, in whole or in part. From time to time, the Board or the Committee may amend the Plan, in whole or in part, including the adoption of amendments deemed necessary or desirable to qualify the Options under the laws of various countries (including tax laws) and under rules and regulations promulgated by the Securities and Exchange Commission with respect to optionees who are subject to the provisions of Section 16 of the 1934 Act, or to correct any defect or supply an omission or reconcile any inconsistency in the Plan or in any Option granted thereunder, or for any other purpose or to any effect permitted by applicable laws and regulations, without the approval of the shareowners of the Company. However, in no event may additional shares of KO Common Stock be allocated to the Plan or any outstanding option be repriced or replaced without share-owner approval. Without limiting the foregoing, the Board of Directors or the Committee may make amendments applicable or inapplicable only to participants who are subject to Section 16 of the 1934 Act.

 

No amendment or termination or modification of the Plan shall in any manner affect any Option theretofore granted without the consent of the optionee, except that the Committee may amend or modify the Plan in a manner that does affect Options theretofore granted upon a finding by the Committee that such amendment or modification is in the best interest of holders of outstanding 

 

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Options affected thereby. Grants of ISOs may be made under this Plan until February 18, 2009 or such earlier date as this Plan is terminated, and grants of NSOs may be made until all of the 120,000,000 shares of KO Common Stock authorized for issuance hereunder (adjusted as provided in Sections 5 and 11) have been issued or until this Plan is terminated, whichever first occurs. The Plan shall terminate when there are no longer Options outstanding under the Plan, unless earlier terminated by the Board or by the Committee.

 

Section 14. Governing Law

 

Except to extent preempted by Federal Law, this Plan shall be construed, governed and enforced under the laws of the State of Delaware (without regard to the conflicts of law principles thereof) and any and all disputes arising under this Plan are to be resolved exclusively by courts sitting in Delaware.

 

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