Document:

exv4w2

Exhibit 4.2

     This Security is in global form within the meaning of the Senior Debt Securities
Indenture hereinafter referred to and is registered in the name of The Depository Trust Company, a
New York corporation (“DTC”), or a nominee of DTC, which may be treated by the Issuer, the
Guarantor, the Trustee and any agent thereof as owner and holder of this Security for all purposes.

     Unless this certificate is presented by an authorized representative of DTC to the Issuer or
its agent for registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede &
Co., has an interest herein.

     Unless and until it is exchanged in whole or in part for Securities in definitive form in the
limited circumstances referred to in the Senior Debt Securities Indenture, this global Security may
not be transferred except as a whole by DTC to a nominee of DTC or by a nominee of DTC to DTC or
another nominee of DTC or by DTC or any such nominee to a successor depositary or a nominee of such
successor depositary.

			
	 	 	 
	Registered No. [     ]
	 	Principal Amount: $[     ]
	CUSIP: [     ]

ISIN: [     ]	 	 

ABBEY NATIONAL TREASURY SERVICES PLC

Floating Rate Notes due [     ]

Fully, Unconditionally and Irrevocably Guaranteed by

SANTANDER UK PLC

     Abbey National Treasury Services plc, a public limited company incorporated in England and
Wales (hereinafter called the “Issuer,” which term shall include any successor entity under
the Senior Debt Securities Indenture), for value received, hereby promises to pay to Cede & Co., as
nominee for DTC, or registered assigns, upon presentation, the principal sum of [     ] ($[     ]) on
[     ] (the “Maturity Date”) and to pay interest thereon from [     ], or from the most
recent interest payment date to which interest has been paid or duly provided for, on [     ], [     ], [     ]
and [     ] in each year, and on the Maturity Date (each, an “Interest Payment
Date”), commencing on [     ] to, but excluding, the next Interest Payment Date or Maturity
Date, as the case may be. This Security will bear interest from [     ], to, but excluding, [     ]
at an initial interest rate of LIBOR (as defined on the reverse hereof) plus [     ]% per annum and
thereafter at an interest rate that will be reset quarterly on [     ], [     ], [     ] and [     ] of
each year (each, an “Interest Reset Date”),

 

 

commencing [     ], equal to LIBOR plus [     ]% per annum, until the entire principal hereof is
paid or made available for payment.

     The interest so payable, and punctually paid or duly provided for on any Interest Payment Date
will, as provided in the Senior Debt Securities Indenture, be paid to the Person in whose name this
Security is registered at the close of business on the Regular Record Date for such interest, which
shall be the fifteenth calendar day (whether or not a Business Day) preceding the related Interest
Payment Date. Any such interest not so punctually paid or duly provided for shall forthwith cease
to be payable to the Holder on such Regular Record Date, and may either be paid to the Person in
whose name this Security is registered at the close of business on a Special Record Date for the
payment of Defaulted Interest to be fixed by the Issuer, or may be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities may be listed, and upon such notice as may be required by such exchange, all as more
fully provided in the Senior Debt Securities Indenture.

     Payment of the principal of and interest on and any Additional Amounts in respect of this
global Security will be paid to DTC for the purpose of permitting DTC to credit the principal and
interest received by it in respect of this global Security to the accounts of the beneficial owners
thereof; provided, however, that if this Security is not a global Security, payment
of the principal of, interest on and Additional Amounts, if any, in respect of this Security will
be made at the office or agency of the Trustee in The City of New York, or elsewhere as provided in
the Senior Debt Securities Indenture, in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts; and
provided, further, that at the option of the Issuer payment of interest may be made
by (a) check mailed to the address of the Person entitled thereto as such address shall appear in
the Security Register or (b) transfer to an account of the Person entitled thereto located inside
the United States.

     If any Interest Payment Date, other than the Maturity Date or redemption date, for this
Security would fall on a day that is not a Business Day, the Interest Payment Date will be
postponed to the next succeeding Business Day and interest thereon will continue to accrue to but
excluding such succeeding Business Day, except that if that Business Day falls in the next
succeeding calendar month, the Interest Payment Date will be the immediately preceding Business Day
and interest thereon will accrue to but excluding such preceding Business Day. If the Maturity
Date or redemption date would fall on a day that is not a Business Day, the payment of interest and
principal will be made on the next succeeding Business Day, but no additional interest shall be
paid unless the Issuer fails to make payment on such next succeeding Business Day.

     If any Interest Reset Date would fall on a day that is not a Business Day, the Interest Reset
Date will be postponed to the next succeeding Business Day, except that if that Business Day falls
in the next succeeding calendar month, the Interest Reset Date will be the immediately preceding
Business Day.

     A “Business Day” is any day, other than a Saturday or Sunday, that is neither a legal
holiday nor a day on which banking institutions in the City of New York or London, England are
authorized or required by law, regulation or executive order to close.

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     Additional provisions of this Security are set forth following the signature page hereof,
which provisions shall for all purposes have the same effect as if set forth at this place.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled
to any benefit under the Senior Debt Securities Indenture or be valid or obligatory for any
purpose.

3

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed this [     ]th day of [     ].

	 	 	 	 	 
	 	ABBEY NATIONAL TREASURY SERVICES PLC

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

CERTIFICATE OF AUTHENTICATION

This is one of the Senior Debt Securities of the series designated herein referred to in the
within-mentioned Senior Debt Securities Indenture.

Dated:

THE BANK OF NEW YORK MELLON,

   as Trustee

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

4

 

GUARANTEE

OF

SANTANDER UK PLC

     For value received, Santander UK plc, a public limited company incorporated under the laws of
England and Wales (the “Guarantor,” which term includes any Person as a successor Guarantor
under the Senior Debt Securities Indenture referred to in the Security upon which this Guarantee is
endorsed), hereby unconditionally and irrevocably guarantees to the Holder of the Security upon
which this Guarantee is endorsed the due and punctual payment of the principal of, any premium and
interest on, and any Additional Amounts with respect to such Security, when and as the same shall
become due and payable, whether at maturity, by acceleration, redemption, repayment or otherwise,
in accordance with the terms of such Security and of the Senior Debt Securities Indenture. In case
of the failure of Abbey National Treasury Services plc, a public limited company incorporated in
England and Wales (the “Issuer,” which term shall include any successor entity under the
Senior Debt Securities Indenture), to punctually pay any such principal, premium, interest or
Additional Amounts, the Guarantor hereby agrees to cause any such payment to be made punctually
when and as the same shall become due and payable, whether at maturity, upon acceleration,
redemption, repayment or otherwise, and as if such payment were made by the Issuer.

     The indebtedness evidenced by this Guarantee is ranked equally and pari passu with all other
unsecured and unsubordinated indebtedness of the Guarantor.

     All payments of principal of and premium, if any, interest and any other amounts on, or in
respect of, such Security shall be made by the Guarantor without withholding or deduction at source
for, or on account of, any present or future income, stamp and other Taxes now or hereinafter
imposed or levied, collected, withheld or assessed by or on behalf of the United Kingdom, or the
jurisdiction of residence or incorporation of the Guarantor, or any political subdivision or taxing
authority thereof or therein (the “Guarantor Taxing Jurisdiction”), unless such taxes,
fees, duties, assessments or governmental charges are required to be withheld or deducted by law.
If a withholding or deduction at source is required, the Guarantor shall, subject to the same
limitations and exceptions set forth in the Senior Debt Securities Indenture, pay to the Holder of
such Senior Debt Security such Additional Amounts as may be necessary so that every net payment of
principal, premium, if any, interest or any other amount made to such Holder, after such
withholding or deduction, shall not be less than the amount provided for in such Security and the
Senior Debt Securities Indenture to be then due and payable.

     The Guarantor hereby agrees that its obligations hereunder shall be as principal and not
merely as surety, and shall be absolute, irrevocable and unconditional, irrespective of, and shall
be unaffected by, any invalidity, irregularity or unenforceability of such Security or the Senior
Debt Securities Indenture, any failure to enforce the provisions of such Security or the Senior
Debt Securities Indenture, or any waiver, modification, consent or indulgence granted with respect
thereto by the Holder of such Security or the Trustee, the recovery of any judgment against the
Issuer or any action to enforce the same, or any other circumstances which may otherwise constitute
a legal or equitable discharge of a surety or guarantor. The Guarantor

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hereby waives diligence, presentment, demand of payment, filing of claims with a court in the
event of merger, insolvency or bankruptcy of the Issuer, any right to require a proceeding first
against the Issuer, protest or notice with respect to any such Security or the indebtedness
evidenced thereby and all demands whatsoever, and covenants that this Guarantee will not be
discharged except by payment in full of the principal of, any premium and interest on, and any
Additional Amounts with respect to, the Senior Debt Securities and the complete performance of all
other obligations contained in such Security. The Guarantor further agrees, to the fullest extent
that it lawfully may do so, that, as between the Guarantor, on the one hand, and the Holders and
the Trustee, on the other hand, the maturity of the obligations guaranteed hereby may be
accelerated as provided in the Senior Debt Securities Indenture for the purposes of this Guarantee,
notwithstanding any stay, injunction or prohibition extant under any bankruptcy, insolvency,
reorganization or other similar law of any jurisdiction preventing such acceleration in respect of
the obligations guaranteed hereby.

     This Guarantee shall continue to be effective or be reinstated, as the case may be, if at any
time payment on such Security, in whole or in part, is rescinded or must otherwise be restored to
the Issuer or the Guarantor upon the bankruptcy, liquidation or reorganization of the Issuer or
otherwise.

     The Guarantor shall be subrogated to all rights of the Holder of such Security against the
Issuer in respect of any amounts paid to such Holder by the Guarantor pursuant to the provisions of
this Guarantee; provided, however, that the Guarantor shall not be entitled to
enforce, or to receive any payments arising out of or based upon, such right of subrogation until
the principal of, any premium and interest on, and any Additional Amounts with respect to, such
Security shall have been paid in full.

     As a separate and alternative stipulation, the Guarantor unconditionally and irrevocably
agrees that any sum expressed to be payable by the Issuer under the Senior Debt Securities
Indenture or such Security but which is for any reason (whether or not now known or becoming known
to the Issuer, the Guarantor, the Trustee or any Holder of such Security) not recoverable from the
Guarantor on the basis of a Guarantee will nevertheless be recoverable from it as if it were the
sole principal debtor and will be paid by it to the Trustee on demand. This indemnity constitutes
a separate and independent obligation from the other obligations in the Senior Debt Securities
Indenture, gives rise to a separate and independent cause of action and will apply irrespective of
any indulgence granted by the Trustee or any Holder of such Security.

     The Guarantor may, without the consent of the Holders, assume all of the rights and
obligations of the Issuer under the Senior Debt Securities Indenture with respect to such Security
and under such Security if, after giving effect to such assumption, no Event of Default or event
which with the giving of notice or lapse of time, or both, would become an Event of Default, shall
have occurred and be continuing. Upon such an assumption, the Guarantor shall execute a
supplemental indenture evidencing its assumption of all such rights and obligations of the Issuer
and the Issuer shall be released from its liabilities under the Senior Debt Securities Indenture
and under such Security as obligor on such Security. The Guarantor shall assume all of the rights
and obligations of the Issuer under the Senior Debt Securities Indenture with respect to such
Security and under such Security if, upon a default by the Issuer in the due and punctual payment
of the principal, premium, if any, or interest on such Security, the Guarantor is prevented by any

6

 

court order or judicial proceeding from fulfilling its obligations under Section 12.01 of the
Senior Debt Securities Indenture with respect to such Security. Such assumption shall result in
such Security becoming the direct obligations of the Guarantor and shall be effected without the
consent of the Holders of such Security. Upon such an assumption, the Guarantor shall execute a
supplemental indenture evidencing its assumption of all such rights and obligations of the Issuer,
and the Issuer shall be released from its liabilities hereunder and under such Security as obligor
on such Security.

     No reference herein to such Senior Debt Securities Indenture and no provision of such Senior
Debt Securities Indenture shall alter or impair the guarantees of the Guarantor, which are absolute
and unconditional, of the due and punctual payment of the principal of, interest on and Additional
Amounts payable in respect of the Security upon which this Guarantee is endorsed.

     This Guarantee shall not be valid or obligatory for any purpose until the certificate of
authentication of such Security shall have been executed by manual or facsimile signature by or on
behalf of the Trustee under such Senior Debt Securities Indenture.

     All terms used in this Guarantee that are defined in such Senior Debt Securities Indenture
shall have the meanings assigned to them in such Senior Debt Securities Indenture.

     This Guarantee shall be governed by and construed in accordance with the laws of the State of
New York.

     IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be duly executed this [     ]th
day of [     ].

	 	 	 	 	 
	 	SANTANDER UK PLC,

as the Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

7

 

	 	 	 	 	 

Floating Rate Notes due [     ]

     This Security is one or all of a duly authorized issue of securities of the Issuer (herein
called the “Securities”), initially limited in aggregate principal amount to $[     ],
issued and to be issued in one or more series under an Indenture, dated as of April 27, 2011
(herein called the “Senior Debt Securities Indenture”), among the Issuer, Santander UK plc,
as Guarantor (the “Guarantor”) and The Bank of New York Mellon, as trustee (herein called
the “Trustee”, which term includes any successor trustee under the Senior Debt Securities
Indenture), to which Senior Debt Securities Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitation of rights, duties and
immunities thereunder of the Issuer, the Guarantor, the Trustee and the Holders of the Securities
and of the terms upon which the Securities are, and are to be, authenticated and delivered. This
Security is one or all of the series designated as the “Floating Rate Notes due [     ].”

     The calculation agent, who shall be the Trustee, or its successor appointed by the Issuer,
will determine the initial interest rate by reference to LIBOR on the second London Banking Day
preceding the issue date and the interest rate for each succeeding Interest Reset Date by reference
to LIBOR on the second London Banking Day preceding the applicable Interest Reset Date (each, an
“Interest Determination Date”). Promptly upon such determination, the calculation agent
will notify the Issuer and the Trustee (if the calculation agent is not the Trustee) of the new
interest rate. Upon the request of a holder of this Security, the calculation agent will provide
the interest rate then in effect and, if determined, the interest rate that will become effective
on the next Interest Reset Date.

     A “London Banking Day” means any day on which dealings in U.S. dollars are transacted
in the London interbank market.

     “LIBOR” will be determined by the calculation agent in accordance with the following
provisions:

	 	(1)	 	With respect to any Interest Determination Date, LIBOR will be the rate
(expressed as a percentage per annum) for deposits in U.S. dollars having a maturity of
three months commencing on the related Interest Reset Date that appears on Reuters Page
LIBOR01 as of 11:00 a.m., London time, on that Interest Determination Date. If no such
rate appears, then LIBOR, in respect of that Interest Determination Date, will be
determined in accordance with the provisions described in (2) below.
	 
	 	(2)	 	With respect to an Interest Determination Date on which no rate appears on
Reuters Page LIBOR01, the calculation agent will request the principal London offices
of each of four major reference banks in the London interbank market, as selected by
the calculation agent, to provide its offered quotation (expressed as a percentage per
annum) for deposits in U.S. dollars for the period of three months, commencing on the
related Interest Reset Date, to prime banks in the London interbank market at
approximately 11:00 a.m., London time, on that Interest Determination Date and in a
principal amount that is representative for a single transaction in U.S. dollars in
that market at that time. If at least two quotations are provided, then LIBOR on that

8

 

	 	 	 	Interest Determination Date will be the arithmetic mean of those quotations. If fewer
than two quotations are provided, then LIBOR on the Interest Determination Date will
be the arithmetic mean of the rates quoted at approximately 11:00 a.m., in the City of
New York, on the Interest Determination Date by three major banks in The City of New
York selected by the calculation agent for loans in U.S. dollars to leading European
banks, for a period of three months, commencing on the related Interest Reset Date,
and in a principal amount that is representative for a single transaction in U.S.
dollars in that market at that time. If at least two such rates are so provided,
LIBOR on the Interest Determination Date will be the arithmetic mean of such rates.
If fewer than two such rates are so provided, LIBOR on the Interest Determination Date
will be LIBOR in effect with respect to the immediately preceding Interest
Determination Date.

     “Reuters Page LIBOR01” means the display that appears on Reuters (or any successor
service) page LIBOR01 (or any page as may replace such page on such service) for the purpose of
displaying London interbank offered rates of major banks for U.S. dollars.

     The amount of interest accrued on this Security to each Interest Payment Date
will be calculated by multiplying the principal amount of this Security by an accrued interest
factor. The accrued interest factor will be equal to the sum of the interest factors
calculated for each day in the period for which interest is being paid. The interest factor
for each day is equal to the interest rate applicable to that day divided by 360. The interest
rate in effect on any Interest Reset Date will be the applicable rate as reset on that date.
The interest rate applicable to any other day is the interest rate from the immediately
preceding Interest Reset Date, or, if none, the initial interest rate.

     As provided in and subject to the provisions of the Senior Debt Securities Indenture, the
Issuer and, if applicable, the Guarantor will have the option to redeem the Securities in whole on
any Interest Payment Date, at a redemption price equal to 100% of the principal amount, together
with accrued but unpaid interest, if any, in respect of the Securities to the date fixed for
redemption (or, in the case of Original Issue Discount Securities, the accreted face amount
thereof, together with accrued interest, if any), if, at any time, the Issuer (or, if applicable,
the Guarantor) shall determine that as a result of a change in or amendment to the laws or
regulations of the Taxing Jurisdiction (including any treaty to which such Taxing Jurisdiction is a
party), or, based upon a written legal opinion of independent United Kingdom counsel of recognized
standing as set forth in the Senior Debt Securities Indenture, any change in the official
application or interpretation of such laws or regulations (including a decision of any court or
tribunal) which change or amendment becomes effective on or after a date included in the terms of
such Securities:

     (a) in making payment under the Securities in respect of principal or premium, if any, or
interest, if any, it (or the Guarantor, if applicable) has or will or would on the next Interest
Payment Date become obligated to pay Additional Amounts;

     (b) any payment of Interest on an Interest Payment Date in respect of the Securities has been
treated as a “distribution”, or the payment of interest on the next Interest Payment Date in
respect of any of the Securities would be treated as a “distribution,” in each case within the

9

 

meaning of Section 1000 of the Corporation Tax Act 2010 of the United Kingdom (or any
statutory modification or re-enactment thereof for the time being); or

     (c) on an Interest Payment Date the Issuer (or the Guarantor, if applicable) was not entitled,
or on the next Interest Payment Date the Issuer (or the Guarantor, if applicable) would not be
entitled, to claim a deduction in respect of such payment of interest in computing its United
Kingdom taxation liabilities (or the value of such deduction to the Issuer would be materially
reduced).

     In the event of a redemption as described in the paragraphs above, notice of such redemption
to the Holders of Securities of any series to be redeemed in whole but not in part at the option of
the Issuer shall be given by mailing notice of such redemption by first class mail, postage
prepaid, at least 30 days and not more than 60 days prior to the date fixed for redemption to such
Holders of Securities of such series at their last addresses as they shall appear upon the Security
Register of the Issuer.

     The Senior Debt Securities Indenture contains provisions for satisfaction and discharge of the
Senior Debt Securities Indenture applicable to the Issuer and the Guarantor, in each case, upon
compliance by the Issuer and the Guarantor with certain conditions set forth in the Senior Debt
Securities Indenture, which provisions apply to this Security.

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

     As provided in and subject to the provisions of the Senior Debt Securities Indenture, the
Holder of this Security shall not have the right to institute any proceeding with respect to the
Senior Debt Securities Indenture or for the appointment of an administrator, receiver or trustee or
for any other remedy thereunder, unless such Holder has previously given written notice to the
Trustee of a continuing Event of Default with respect to such Security specifying such Event of
Default and stating that such notice is a “Notice of Default” under the Senior Debt Securities
Indenture; the Holders of not less than 25% in aggregate principal amount of such Security shall
have made written request to the Trustee to institute proceedings in respect of such Event of
Default in its own name, as Trustee hereunder; such Holders have offered to the Trustee reasonable
indemnity or security satisfactory to it against the costs, expenses and liabilities to be incurred
in compliance with such request; the Trustee for 60 days after its receipt of such notice, request
and offer of indemnity or security has failed to institute any such proceeding; and no direction
inconsistent with such written request has been given to the Trustee during such 60-day period by
the Holders of a majority in principal amount of such Security. The foregoing shall not apply to
any suit instituted by the Holder of this Security for the enforcement of any payment of principal
hereof or interest hereon on or after the respective due dates expressed herein.

     The Senior Debt Securities Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the Issuer and the
Guarantor and the rights of the Holders of the Securities under the Senior Debt Securities
Indenture at any time by the Issuer, the Guarantor and the Trustee with the consent of the Holders
of not less than a majority in principal amount of the outstanding Securities affected by

10

 

such amendment. The Senior Debt Securities Indenture also contains provisions permitting the
Holders of specified percentages in principal amount of the Securities at the time outstanding, on
behalf of the Holders of all Securities, to waive compliance by the Issuer or the Guarantor, or
both, with certain provisions of the Senior Debt Securities Indenture and certain past defaults
under the Senior Debt Securities Indenture and their consequences. Any such consent or waiver by
the Holder of this Security shall be conclusive and binding upon such Holder and upon all future
Holders of this Security and of any Security issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon
this Security.

     No reference herein to the Senior Debt Securities Indenture and no provision of this Security
or of the Senior Debt Securities Indenture shall alter or impair the obligation of the Issuer,
which is absolute and unconditional, to pay the principal of and interest on this Security at the
times, place and rate, and in the coin or currency, herein prescribed.

     The Issuer may, from time to time, without the consent of the Holders of the Security, issue
additional Securities of this series, guaranteed by the Guarantor, having the same ranking and same
interest rate, Stated Maturity, redemption terms and other terms, except for the price to the
public and issue date and first Interest Payment Date, as this Security; provided,
however, that such additional Securities must be either treated as part of the same issue
of debt instruments for U.S. federal income tax purposes or be issued with an issue price that is
no less than the adjusted issue price of this Security at the time of issuance of such additional
Securities for U.S. federal income tax purposes. Any such additional Securities, together with
this Security, will constitute a single series of Senior Debt Securities under the Senior Debt
Securities Indenture.

     As provided in the Senior Debt Securities Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Senior Debt Security Register, upon
surrender of this Security for registration of transfer at the office or agency of the Issuer in
any place of payment where the principal of and interest on this Security are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Issuer
and the Senior Debt Security Registrar duly executed by the registered Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of this series, of
authorized denominations containing identical terms and provisions, of a like aggregate principal
amount, will be issued to the designated transferee or transferees.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000 in excess thereof. As provided in the
Senior Debt Securities Indenture and subject to certain limitations set forth therein, Securities
of this series are exchangeable for a like aggregate principal amount of Securities of this series
of a different authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but,
subject to certain exceptions set forth in the Senior Debt Securities Indenture, the Issuer may
require payment of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

11

 

     Prior to due presentment of this Security for registration of transfer, the Issuer, the
Guarantor, the Trustee and any agent of the Issuer, the Guarantor or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all purposes, whether or
not this Security be overdue, and none of the Issuer, the Guarantor, the Trustee or any such agent
shall be affected by notice to the contrary.

     The obligations of the Issuer and the Guarantor under the Senior Debt Securities Indenture and
this Security and all documents delivered in the name of the Issuer or the Guarantor, as the case
may be, in connection herewith and therewith do not and shall not constitute personal obligations
of the directors, officers, employees, agents or shareholders of the Issuer or the Guarantor or any
of them, and shall not involve any claim against or personal liability on the part of any of them,
and all persons including the Trustee shall look solely to the assets of the Issuer and the
Guarantor for the payment of any claim thereunder or for the performance thereof and shall not seek
recourse against such directors, officers, employees, agents or shareholders of the Issuer or the
Guarantor or any of them or any of their personal assets for such satisfaction. The performance of
the obligations of the Issuer and the Guarantor under the Senior Debt Securities Indenture and this
Security and all documents delivered in the name of the Issuer or the Guarantor, as the case may
be, in connection therewith shall not be deemed a waiver of any rights or powers of the Issuer or
the Guarantor or their respective directors or shareholders under the Issuer’s or the Guarantor’s
respective Memorandum and Articles of Association.

     All terms used in this Security that are defined in the Senior Debt Securities Indenture shall
have the meanings assigned to them in the Senior Debt Securities Indenture.

     The Senior Debt Securities Indenture and the Securities, including this Security, shall be
governed by and construed in accordance with the law of the State of New York.

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Issuer has caused “CUSIP” numbers to be printed on the Securities as a convenience
to the Holders of the Securities. No representation is made as to the correctness or accuracy of
such CUSIP numbers as printed on the Securities, and reliance may be placed only on the other
identification numbers printed hereon.

12

 

ASSIGNMENT FORM

FOR VALUE RECEIVED, the undersigned hereby

sells, assigns and transfers unto

PLEASE INSERT SOCIAL

SECURITY OR OTHER IDENTIFYING

NUMBER OF ASSIGNEE

      

 

(Please Print or Typewrite Name and Address, including Zip Code, of Assignee)

 

the within Security of the company and                      hereby does irrevocably
constitute and appoint

 

attorney to transfer said Security on the books of the within-named company with full power of
substitution in the premises.

Dated:

 

Signature

 

NOTICE: The signature to this assignment must correspond with the name as it appears on the first
page of the within Security in every particular, without alteration or enlargement or any change
whatever.

Signature Guaranteed:

 

NOTICE: Signature(s) must be guaranteed by an “eligible guarantor institution” that is a member or
participant in a “signature guarantee program” (e.g., the Securities Transfer Agents Medallion
Program, the Stock Exchange Medallion Program and the New York Stock Exchange Medallion Program).

13Exhibit 4.2

Exhibit
4.2

SAP SHARE MATCHING PLAN 
as amended
effective April 28, 2011

Terms of the Plan

 

Preamble

	(1)	 	SAP AG has, now and in the past, given executives and employees the chance, through various
share-based plans, to profit from the Company’s success in business and growth in corporate
value. The aims of any share-based compensation plan that includes long-term incentive and
risk elements are to offer participants a special incentive to achieve sustained value growth
for SAP AG, to reinforce participants’ commitment and allegiance to the companies in the SAP
Group by rewarding future loyalty, and to encourage employees to also become engaged,
long-term shareholders.
	 
	(2)	 	In pursuit of those aims, it is intended that this SAP AG Share Matching
Plan (“SMP”) will offer to executives and employees of SAP AG and its affiliates in the
meaning of the German Stock Corporation Act, section 15
(“Group Companies”), the opportunity to buy shares of SAP AG (“Investment Shares”) and to
obtain related bonus shares (“Matching Shares”) on the terms below.
	 
	(3)	 	For this purpose, the SMP enables SAP AG and Group Companies to offer subsidized Investment
Shares at a discounted price to their executives and employees, and entitles each such plan
participant later to obtain at no cost one (1) Matching Share to match every three (3)
Investment Shares, provided the plan participant does not alienate those
Investment Shares during a period (“Lock-In Period”) of three (3) years.

 

-2-

	 	 	The foregoing notwithstanding, Members of Senior Leadership Team of SAP AG and of Group
Companies are entitled under the plan terms below to buy undiscounted Investment Shares and
after the Lock-In Period to obtain (2) Matching Shares to match every three (3) Investment
Shares.
	 
	(4)	 	There is a new tranche (“Plan Tranche”) in the SMP every year, and offers of Investment
Shares (each such offer being an “Offer” herein) are made in connection with each Plan
Tranche.
	 
	(5)	 	The following plan terms contain the provisions governing the SMP and set out the
requirements, conditions, and procedures that apply to every Offer of Investment Shares made
by SAP AG or any Group Company participating in the SMP.

Article 1

Shares Offered

	 	 	Each share offered under this SMP should be a voting, dividend-bearing, no-par bearer
share of SAP AG listed on the stock exchange at Frankfurt am Main, Germany, and identified
as ISIN DE 0007164600 and WKN 716460 (“SAP Stock”). If new shares that increase capital are
issued with a different dividend entitlement, those new shares may be SAP Stock with
different identification numbers.

 

-3-

Article 2

Execution of the SMP

	(1)	 	The Executive Board of SAP AG resolves at its own discretion to issue any Plan Tranche
for the SMP (the day on which it so resolves is referred to below as the “Resolution Day”).
The SAP AG Executive Board’s resolution in respect of any Plan Tranche will address all of
the following matters (and may also address other matters):

	 	a)	 	The issuance of the Plan Tranche and the participating Group Companies;
	 
	 	b)	 	The executives and employees or the classes of executives and employees to whom
an Offer under that Plan Tranche is to be made;
	 
	 	c)	 	When the Offer is to be made under that Plan Tranche and how long the Offer is
to remain open for acceptance (“Offer Validity Period”); provided, that the Offer
Validity Period shall end in the calendar year in which the Resolution Day occurs;
	 
	 	d)	 	The Plan Tranche budget for the SAP Stock to be issued to all plan participants;
	 
	 	e)	 	The nature and source of SAP Stock, e.g. whether the SAP Stock is to be treasury shares or new shares that increase capital;
	 
	 	f)	 	Criteria for determining the maximum number of Investment Shares that each
person eligible to participate may buy; the criteria may include, among others, defined
salary bands or a percentage of the eligible persons gross salary in the previous year;
	 
	 	g)	 	The method of determining the purchase price, or the actual purchase price, and
any discount on Investment Shares;

 

-4-

	 	h)	 	The date by which payments from persons eligible to participate must be
completed (“Closing Date”); provided, that the Closing Date shall occur in the same
calendar year as the Resolution Day.

	 	(2)	 	The SAP AG Executive Board can decide different terms for certain countries or Group
Companies. The appropriate board or the management of each participating Group Company must
make all necessary statements and declarations and take the steps required by applicable law
to implement the Plan Tranche concerned for the plan participants in that participating Group
Company.
	 
	 	(3)	 	The matters resolved in respect of a Plan Tranche and the associated Offer (including but
not limited to matters specific to a country) are incorporated by reference into the terms of
the Offer. In particular, if an executive or employee is subject to US tax within the
calendar year of an Offer or subsequently as a plan participant may be subject to US tax due
to a transfer within the SAP Group or for any other reason, the Terms of the Plan considering
country-specific US-conditions (“US-Addendum”) are applicable as provided therein. The terms
of the Offer may vary from Plan Tranche to Plan Tranche.
	 
	 	(4)	 	Executives and employees with an employment contract with SAP AG receive their Offers from
SAP AG. The participating Group Companies make their Offers to executives and employees who
are in their employment or who are appointed to their boards, as the case may be, on terms
resolved by the SAP AG Executive Board. Divergent to the foregoing, executives and employees
of participating Group Companies receive their Offers from SAP AG in case this is required or
appropriate due country specific matters, in particular regarding any registration procedures
or any other reasons.

 

 

-5-

	(5)	 	If a plan participant’s employment contract with SAP AG or, as the case may be, a plan
participant’s employment contract or board appointment contract with the Group Company that
made the Offer is ended after the beginning of the Offer Validity Period or during the
Lock-In Period of the Plan Tranche and the plan participant enters into a new employment
contract or board appointment contract with another Group Company or with SAP AG or the plan
participant is transferred to another Group Company or to SAP AG, then SAP AG if it
originally made the Offer or the Group Company that originally made the Offer remains liable
to that plan participant on the Offer.
	 
	(6)	 	All Offers made pursuant to the SMP are distinct from and neither incorporate nor are
incorporated in employment contracts or board appointment contracts, and the SMP is a
voluntary benefit offered by SAP AG or another Group Company. No series of Offers or repeated
Offers under the SMP can be construed as giving rise to a right of any executive or employee
to continuing or subsequent Offers or any equivalent benefit in the future (reservation of
employer’s discretion regarding voluntary benefits).

Article 3

Persons Eligible to Participate

	(1)	 	In its resolution in respect of the issuance of a Plan Tranche, the SAP AG Executive Board
determines which executives and employees or classes of executives and employees are eligible,
regardless of whether they are employed by SAP AG or by a participating Group Company, or
whether they are members of a board of a Group Company. Eligibility is restricted to
executives and employees who at the beginning of the Offer period in question have for not
less than seven (7) clear calendar months (the

 

-6-

	 	 	“Qualifying Period”) continuously had an employment contract with SAP
AG that has not been terminated by either side or an employment contract or board appointment
contract with a participating Group Company that has not been terminated by either side and
who have not entered into a termination agreement with respect to their employment contract
or board appointment contract at the beginning of the Offer period in question. Only full
calendar months count toward the Qualifying Period. The members of the SAP AG Executive Board
are not eligible to participate in the SMP.

	(2)	 	The foregoing provisions notwithstanding, SAP AG or the participating Group Company may
determine at its own discretion the eligibility status of an executive or employee for a Plan
Tranche.

Article 4

Offer to Participate in the SMP

	(1)	 	Persons eligible to participate receive the SMP Offer of Investment Shares and free
Matching Shares on the terms below.
	 
	(2)	 	The Offer to participate in the SMP is made subject to the resolution made once a year by
the SAP AG Executive Board concerning the issuance of a Plan Tranche by SAP AG or by the
Group Company, as the case may be and subject to article 2 (4), with whom the person eligible
to participate has an employment contract or board appointment contract at the beginning of
the Offer Validity Period.

 

-7-

Article 5

Offer Validity Period

	(1)	 	The Offer of Investment Shares can be accepted by persons eligible to participate only
during and before expiration of the defined Offer Validity Period.
	 
	(2)	 	The SAP AG Executive Board defines the Offer Validity Period every year in its resolution
concerning the issuance of the Plan Tranche.

Article 6

Voluntary Nature of Participation

	(1)	 	Participation in the SMP is voluntary for and is at the sole discretion of all persons
eligible to participate.
	 
	(2)	 	A decision not to participate in the SMP has no negative consequences for the board position
or employment of the person eligible to participate. Participation in the SMP is distinct
from and neither incorporates nor is incorporated in employment contracts or board
appointment contracts.

Article 7

Notice of Acceptance

	(1)	 	Contracts for Investment Shares are concluded where persons eligible to participate give
notice of acceptance of the individual Offer concerned and the notice of acceptance is
received within the Offer Validity Period. Notice

 

-8-

	 	 	of acceptance must be given using the administration platform provided on the Internet or a
call center. Notice of acceptance also concludes a separate trust or custody agreement as set
out in article 12 below. Notices of acceptance received after the end of the Offer Validity
Period are ineffective.

	(2)	 	Before the expiration of the Offer Validity Period, a person entitled to participate can use
the administration platform provided on the Internet or a call center to revoke a notice of
acceptance that has been received before the expiration of the Offer Validity Period. On
expiration of the Offer Validity Period, notice of acceptance becomes irrevocable and binding
on the plan participant. When notice of acceptance becomes effective, the plan participant
becomes bound by a personal obligation to pay the purchase price for the Investment Shares.

Article 8

Minimum and Maximum Numbers of Investment Shares Bought

	(1)	 	The plan participant’s acceptance must be in respect of a certain number of the
Investment Shares offered. The plan participant may accept fewer Investment Shares than
offered, but the number of shares bought must be divisible by three (3). If the plan
participant decides to participate, the lower limit number of Investment Shares that a plan
participant can buy is three (3).
	 
	(2)	 	The number of Investment Shares that can be bought will be determined on the basis of the
purchase price in accordance with article 9 (1). The upper limit number of Investment Shares
that a Member of Senior Leadership Team can buy is determined by reference to a percentage of
the target annual bonus (current on December 31 in the year before the Plan Tranche in
question) for 100% target achievement. For all other plan

 

 

-9-

	 	 	participants, the upper limit number of Investment Shares that can be bought depends on
the plan participant’s gross basic annual salary (determined on December 31 in the year
before the Plan Tranche in question as outlined below) and is subject to any applicable local
rules. The gross basic annual pro rata temporis salary is the result of multiplication the
applied plan participant’s gross basic annual salary on December 31 before the Plan Tranche
in question in case of full-time employment with the average percentage of employment
determined in the year before the Plan Tranche in question. The average percentage of
employment is determined by arithmetic mean percentage of employment on March 31, June 30,
September 30 and December 31 before the Plan Tranche in question. Regardless of the above, in
case a Plan Tranche is offered, plan participants are entitled to buy a number of Investment
Shares, divisible by three (3) as further determined by the SAP AG Executive Board. The SAP
AG Executive Board determines the specific details for each Plan Tranche.
	 
	(3)	 	The plan participant can buy Investment Shares only within the limits set out above. If the
number of Investment Shares in the acceptance notice is not divisible by three (3), it is
rounded down to the next number of shares that is divisible by three (3).

Article 9

Purchase Price and Discount; Applicable Stock Price

	(1)	 	The purchase price for one Investment Share is the arithmetic mean, calculated to two (2)
decimal places, of the closing prices (using closing auction prices) of SAP Stock in the
XETRA trading system (or its successor system) on the Frankfurt Stock Exchange on the fifth
(5th) to the first (1st) (inclusive) trading days on the Frankfurt Stock Exchange

 

-10-

	 	 	before the SAP AG Executive Board’s resolution on the
terms for the Plan Tranche in question on the Resolution Day.
	 
	(2)	 	The SAP AG Executive Board determines the purchase price accordingly for each Plan Tranche
in its resolution pursuant to article 2 (1) herein.
	 
	(3)	 	All plan participants except Members of Senior Leadership Team can buy the Investment Shares
offered to them at a discount that is determined by the Executive Board. (Both the price so
discounted and the purchase price for Members of Senior Leadership Team are referred to as
“Purchase Price” hereinbelow.)
	 
	(4)	 	The Purchase Price is in euros. For plan participants with an employment contract or board
appointment contract outside the Economic and Monetary Union of the European Union, the
Purchase Price is translated into the appropriate national currency. The exchange rate used
for translation is the European Central Bank euro foreign exchange reference rate for the last
day on which a reference rate is published before the Resolution Day.
	 
	(5)	 	If the price (closing auction price) of SAP Stock in the XETRA trading system (or an
appropriate successor system) on the Frankfurt Stock Exchange on the last trading day before
expiration of the Offer Validity Period is more than 20% less than the Purchase Price
determined on the Resolution Day, the Purchase Price is amended as follows: The amended
Purchase Price for one Investment Share is the arithmetic mean, calculated to two (2) decimal
places, of the closing auction prices of SAP Stock in the XETRA trading system (or an
appropriate successor system) on the Frankfurt Stock Exchange on the last five (5) trading
days before expiration of the Offer Validity Period. However, if the Purchase Price thus
amended is greater than the Purchase Price originally determined, the applicable amended
Purchase Price is the arithmetic mean, calculated to two (2) decimal places, of the closing
auction price of SAP Stock in the XETRA trading system (or an appropriate successor system)
on the

 

-11-

	 	 	Frankfurt Stock Exchange on the last trading day before expiration of the Offer Validity
Period, and the original Purchase Price.

Article 10

Settlement of Purchase

	(1)	 	The product of the Purchase Price and the number of Investment Shares accepted is the
total price payable by the plan participant (“Total Price”).
As far as possible and as far as the law permits, the Total Price is settled through the
payroll by being withheld, on an after-tax basis, from salary payable to the plan
participant before the Closing Date.
	 
	(2)	 	To this end, money may be withheld once or more than once before the Closing Date. The plan
participant agrees that salary payments may on occasion fall below the statutory monthly
minimum.
	 
	(3)	 	In special cases, SAP AG or a participating Group Company may accept a different means of
payment from the plan participant.
	 
	(4)	 	The purchase of Investment Shares is subject to the condition precedent that plan participant
pays the Purchase Price. In the first instance, only as many Investment Shares are purchased
as are covered by withheld salary or other payments by the plan participant on or before the
Closing Date. If on the Closing Date the Total Price is not covered by such payments, the plan
participant remains liable on the balance. The notice of acceptance remains effective and
enforceable in respect of the balance of the Investment Shares not covered by withheld salary
or other payments. SAP AG and participating Group Companies reserve the right to rescind in
respect Investment Shares not covered by withheld salary or other payments.

 

-12-

	(5)	 	Plan participants will be informed locally of any matters relating to payroll and the
payment procedure that are specific to the country or to the Group Company.

Article 11

Transfer of Investment Shares

	 	 	SAP AG or a third party will transfer to the securities deposit account managed by the
plan administrator the Investment Shares bought by plan participants in the SMP; such
transfer shall occur on, or as soon as possible after, the Closing Date, and not later than
the 15th day of the third (3rd) month after the
Closing Date.

Article 12

Plan Administration; Securities Deposit Account

	(1)	 	SAP AG has instructed a service provider to act as SMP plan administrator; the initial
plan administrator is UBS Deutschland AG. In this connection, the plan administrator also
provides trustee and securities account services in relation to the SAP Stock that the SMP
requires to be transferred.
	 
	(2)	 	All SAP Stock bought in the SMP by plan participants is transferred to and registered in one
single securities account (“Securities Deposit Account”) held in trust by the plan
administrator.
	 
	(3)	 	For this purpose, each plan participant’s notice of acceptance of the Offer is associated
with a separate trust or custody agreement to be made

 

-13-

	 	 	between the plan participant and the plan administrator in the form annexed to these
plan terms or as otherwise provided by SAP AG or the participating Group Company. That
agreement is required for the transfer of the SAP Stock and it arises between the plan
participant and the plan administrator when the plan participant accepts the plan terms by
giving notice of acceptance of the Offer.
	 
	(4)	 	At the time of adoption of these plan terms, it is not possible for a plan participant or a
plan participant’s personal representative or successor in title to give to the plan
administrator instructions for the purpose of managing income for tax efficiency.
	 
	(5)	 	If SAP AG’s contract with the plan administrator for administration of the SMP ends in
circumstances where the SMP continues, SAP AG will make arrangements for appropriate services
to be provided by another plan administrator that SAP AG will instruct at its sole discretion.
In such circumstances, the plan participant must give all notices and take all steps necessary
to end the trust or custody agreement and appoint a new plan administrator.
	 
	(6)	 	The procedures specified above and in article 19 may be altered and other procedures
established by SAP AG for a particular group of participants, as necessary or advisable for
tax or other reasons.

Article 13

Lock-In Period

	(1)	 	All Investment Shares bought in the SMP are subject to a Lock-In Period of three (3)
years, during which plan participants cannot alienate Investment Shares or create any security
interest in or encumbrance on

 

-14-

	 	 	Investment Shares except as may be necessary for the proper administration of the plan.
	 
	(2)	 	The Lock-In Period begins on the Resolution Day and ends after three years at the end of the
day that corresponds in name or number (in the meaning of the German Civil Code, sections 187,
188) to the Resolution Day.
	 
	(3)	 	There is no effect on the Lock-In Period of the Plan Tranche if a plan participant’s
employment contract or board appointment contract with SAP AG or the Group Company that made
the Offer is ended during that Lock-In Period and the plan participant immediately enters into
a new employment contract or board appointment contract with another Group Company or with SAP
AG or the plan participant is immediately transferred to another Group Company or to SAP AG.

Article 14

The
Right to Dividend and Other Shareholder Rights and Duties
During and After the Lock-In
Period

	(1)	 	During the Lock-In Period, the plan participant is entitled without restriction to the
dividend and voting rights associated with the Investment Shares the plan participant bought.
	 
	(2)	 	The plan administrator transfers the dividend as provided in the trust or custodial
agreement to an account specified by the plan participant or the dividend is handled as
appropriate under local conditions.
	 
	(3)	 	Subject to applicable restrictions on insider transactions and subject to the provisions of
the SAP insider regulations, on expiration of the Lock-In Period the plan participant can
transfer the SAP Stock from the Securities

 

-15-

	 	 	Deposit Account to a personal securities account or otherwise dispose of it direct from the
Securities Deposit Account.

Article 15

Entitlement to Matching Shares

	(1)	 	The SMP entitles plan participants to obtain Matching Shares as follows:

	 	a)	 	In addition to every three (3) of their Investment Shares, executives (not
including Members of Senior Leadership Team) and employees of SAP AG and of
participating Group Companies can obtain one (1) free Matching Share.
	 
	 	b)	 	In addition to every three (3) of their Investment Shares, Members of Senior
Leadership Team can obtain two (2) free Matching Shares.

	(2)	 	The entitlement of all plan participants to obtain Matching Shares is subject to the
fulfillment of the following conditions throughout the Lock-In Period:

	 	a)	 	Subject as otherwise provided below in articles 16 and 17, the plan participant
is continuously in the employment or serving on a board of SAP AG or another Group
Company under a contract that has not been terminated by either side.
	 
	 	b)	 	The plan participant continuously holds an appropriate number of Investment
Shares in the Securities Deposit Account of the appropriate plan administrator during
the Lock-In Period.
	 
	 	c)	 	The plan participant is not in breach of any applicable plan term.

 

-16-

Article 16

Termination
or Change of Employment or Board Membership
During the Lock-In Period of a
Plan Tranche

	(1)	 	All entitlement of the plan participant to Matching Shares is extinguished without notice
or liability if the plan participant terminates the employment contract or board appointment
contract and the termination is not occasioned by any act or omission of SAP AG or the
participating Group Company, or if SAP AG or the participating Group Company terminates
without notice for just cause, or with notice for behavior-related reasons, or in connection
with a termination agreement, or if the term of the plan participant’s temporary contract
expires. The Lock-In Period for Investment Shares ends at the end of a plan participant’s
employment contract or board appointment contract.
	 
	(2)	 	If the employment contract or board appointment contract is terminated by SAP AG or the
participating Group Company without just cause, or for operational reasons, or where the plan
participant retires (in accordance with applicable law or, in the absence of applicable law,
in accordance with the rules of the Group Company concerned), or where the plan participant
becomes permanently unable to work or dies, the plan participant’s or the plan participant’s
estate’s entitlement to Matching
Shares is unreduced at the expiration of the full Lock-In Period in article 13
(1) and in such cases the Lock-In Period continues unaltered in respect of the Investment
Shares and applies against the plan participant’s estate if the plan participant has died.
	 
	(3)	 	This is without prejudice to the provisions in article 13 (3). In all other respects the
provisions in article 18 apply.

 

-17-

Article 17

Corporate Restructuring

	(1)	 	The rights of a plan participant in the SMP are not affected by divestiture in a
restructuring action (for example, by sale or otherwise) from the SAP Group of the
participating Group Company or the division, plant, or other unit in the SAP Group for which
the plan participant works under an employment contract or board appointment contract if
immediately after the restructuring action takes effect the plan participant continues to work
for SAP AG or (another) Group Company under an employment contract or board appointment
contract.
	 
	(2)	 	If the plan participant does not continue to work for SAP AG or an(other) Group Company under
an employment contract or board appointment contract after the restructuring action and the
plan participant thus leaves the SAP Group before the end of the Lock-In Period, the plan
participant is entitled only to the reduced number of Matching Shares that stands in
proportion to full entitlement as the actual length of the Lock-In Period up to the time the
restructuring action takes effect stand to the three (3) years of the original Lock-In Period.
If the resultant number of Matching Shares is not an integer, it is rounded up to the next
integer. In all other respects the provisions in article 18 apply mutatis mutandis.

Article 18

End of the Securities Deposit Account Facility

	(1)	 	If a plan participant leaves the SAP Group as a result of a restructuring action or on
termination of the plan participant’s employment contract or board appointment contract in the
circumstances in article 16 (1), the plan

 

-18-

	 	 	participant must dispose of or if possible transfer from the Securities Deposit Account to a
private securities account all of the SAP Stock managed by the plan administrator within the
period three (3) months after the restructuring action takes effect or, as the case may be,
after the end of the contract. If that is not done, the plan administrator will sell all of
the SAP Stock at market value without delay on behalf of the plan participant or the plan
participant’s successor and transfer the proceeds less costs of sale to the plan
participant’s last known salary account and such transfer is in full and final satisfaction.
If it is not possible to effect the transfer to an account, SAP AG or the remaining Group
Company, as the case may be, will in accordance with the German Civil Code, section 195, hold
the proceeds of sale in trust until the end of the statutory three-year time bar that
commences at the end of the calendar year in which the contract ended and thereafter title
passes to SAP AG or the remaining Group Company, as the case may be.
	 
	(2)	 	If a plan participant leaves the SAP Group in the circumstances in article 16 (2), the
arrangements in section (1) in this article apply with effect from the expiration of the
Lock-In Period. Where the plan participant retires or becomes permanently unable to work or
dies, the period within which the plan participant or the plan participant’s personal
representative or successor in title must dispose of or transfer the SAP Stock is nine (9)
months and not the period provided in section (1) in this article.
	 
	(3)	 	The arrangements in section (1) in this article also apply if SAP AG ends the SMP or ends
the appointment of the plan administrator without replacement, except that the period in
section (1), sentence 1, is always three (3) months from the time SAP AG gives notice
thereof.

 

-19-

Article 19

Satisfaction of Entitlement to Matching Shares

	(1)	 	A plan participant’s entitlement to Matching Shares from SAP AG or participating Group
Companies is satisfied by the transfer by SAP AG or by an agent appointed by SAP AG of the
appropriate quantity of SAP Stock to the plan participant.
	 
	(2)	 	The Matching Shares are transferred by SAP AG or its agent to the plan administrator’s
Securities Deposit Account as soon as possible, that is generally not more than ten (10) banking days, after the end of the Lock-In Period, and not
later than the 90th day after the end of the Lock-in Period.
	 
	(3)	 	After that transfer the Matching Shares are freely disposable and are not subject to any
Lock-In Period. The plan participant can at any time instruct the plan administrator to
transfer the Investment Shares (after expiration of the Lock-In Period) or the Matching Shares
to the plan participant’s own securities account. If the Investment Shares and Matching Shares
continue to be held in the Securities Deposit Account, the shareholder rights must be
exercised as provided in the German Stock Corporation Act, the Articles of Incorporation of
SAP AG, and the trust agreement annexed to these plan terms.

Article 20

Reservation of Right to Pay Cash

	(1)	 	SAP AG reserves the right to satisfy plan participants’ entitlements to
Matching Shares with a cash payout (in euros or local currency) to the plan participant
instead of delivering SAP Stock.

 

-20-

	(2)	 	The cash payout is calculated on the basis of the closing price of SAP Stock in the XETRA
trading system (or an appropriate successor system) on the Frankfurt Stock Exchange on the
first trading day after expiration of the Lock-In Period and is paid direct to the plan
participant after deduction of applicable taxes and social insurance contributions.

Article 21

Amendments for Events Occurring Between Plan Participants’

Buying Investment Shares and Obtaining Matching Shares

	(1)	 	If during the time between transfer of the Investment Shares and transfer of the Matching
Shares SAP AG increases its issued capital stock by issuing new shares to which shareholders
have preemptive rights or issues convertible bonds or stock options carrying rights to convert
or subscribe to SAP Stock, the SAP AG Executive Board reserves the right at its own discretion
to make a compensating amendment to these plan terms to the effect that as far as possible
each plan participant’s interest immediately after the event is equivalent to that plan
participant’s interest immediately before the event.
	 
	(2)	 	Plan participants do not, however, have any right to a compensating amendment to these plan
terms.

Article 22

Withholding of Taxes and Deductions; Costs

	(1)	 	To the extent permitted by law and subject to any applicable tax adjustment policy, all
taxes, social security contributions, and other

 

-21-

	 	 	imposts arising in connection with the purchase or issuance of Investment Shares: the
transfer, or the lapse of service conditions on the transfer, of free Matching Shares; any
income or gain attributable to Investment Shares or Matching Shares or the disposal of those shares are borne exclusively by the plan participants or their successors in title.
	 
	(2)	 	Taxes and contributions payable in connection with participation in the SMP are withheld by
SAP AG or the participating Group Company concerned as the employer in accordance with the
requirements of the law. Amounts to be withheld are deducted from the salary or other amounts
payable to the plan participant. If amounts available to be withheld are insufficient to
settle the outstanding tax and contribution liability or if for other reasons sufficient funds
can no longer be withheld (for example, if the plan participant has already left), the plan
participant or the plan participant’s estate must settle the liability with SAP AG or the
participating
Group Companies by other means. The plan participant or the plan participant’s estate may
elect to settle any tax and contribution liability arising at the expiration of the Lock-In
Period with the proceeds of an immediate sale of some or all of the Matching Shares. In the
latter case, any proceeds of sale exceeding the amount needed to settle the outstanding tax
and contribution liability will be transferred with any remaining Matching Shares to the
plan participant or the plan participant’s estate.
	 
	(3)	 	All costs arising in connection with acquiring Investment Shares and Matching Shares,
transferring them to plan participants, their administration in the Securities Deposit
Account for the SMP, and the general management of the SMP are borne by SAP AG or by the
participating Group Companies for their respective plan participants. The foregoing provision
also applies if there is a change of plan administrator, but it does not apply to costs and
fees in connection with selling or transferring plan participants’ SAP Stock held in the plan
administrator’s
Securities Deposit Account.

 

-22-

Article 23

Information for Plan Participants; Risks

	(1)	 	Each plan participant receives from the plan administrator an annual statement of shares
held in the SMP and a statement of each transaction with SAP Stock. (Annual statements and
transaction statements are generally provided on the Internet platform.) Plan participants
without access to the Internet platform receive them by mail. To facilitate correspondence by
mail, the plan participant undertakes to notify SAP AG or the plan participant’s participating
Group Company, as the case may be, and the plan administrator, of all changes of the plan
participant’s address and bank details.
	 
	(2)	 	The purchase of Investment Shares in the SMP does not give rise to any right on the part of
the plan participate to the making or continuation of an employment contract or board
appointment contract and does not in any way prejudice any right of the plan participant, of
SAP AG, or of a Group Company to end any employment contract or board appointment contract in
accordance with the contract or the law.
	 
	(3)	 	The plan participant acknowledges that the purchase of stock carries risks including but not
limited to the risk that the value of the stock may decline and the associated risk that some
or all of the capital invested by the plan participant may be lost.

 

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Article 24

Miscellaneous Provisions

	(1)	 	If any provision in these plan terms is or becomes ineffective or unenforceable in whole
or in part the other provisions remain unaffected. Where there is a lacuna by reason of the
ineffectiveness or unenforceability of a provision in these plan terms an appropriate
additional provision reflecting the interests of the parties is implied.
	 
	(2)	 	The SAP AG Executive Board reserves the right to amend these plan terms at any time.
However, no amendment to the plan terms affects any right or duty of the plan participant
that was effective before the amendment unless the plan participant agrees to the amendment
or the amendment is necessary to comply with the law.
	 
	(3)	 	The proper law applying to the SMP and all related terms and agreements is German law
subject to the exclusion of the rules of private international law.
	 
	(4)	 	The proper place of jurisdiction is the competent German court.
	 
	(5)	 	The plan terms are in the German language. Any version in any other language is only a
translation. Only the German applies if there is any question of construction or any
difference between the German and a translation.

US-Addendum

	 	 	In accordance with article 2 (3) of the SAP Share Matching Plan, notwithstanding the
conditions of the above Terms of the Plan the following country-specific US-conditions
(“US-Addendum”) are applicable to plan participants who may be subject to US tax and replace
the respective articles to the extent provided below. It is intended that this US-

 

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Addendum shall apply whenever the above Terms of the Plan would otherwise result in the
inclusion in the gross income of any participant under section 409A(a)(1)(A)(i) of the United
States Internal Revenue Code of any amount because of a failure of the above Terms to satisfy the
requirements referred to in that clause, determined as if the participant’s benefits were fully
vested. Without limiting the generality of the foregoing, this US-Addendum shall apply (beginning
on the earliest applicable date) as follows:

	 	a)	 	beginning on any Resolution Date, with respect to any plan participant: (i) who is a US
citizen or permanent resident on any Resolution Date; (ii) who was a US resident alien in any
of the three consecutive taxable years immediately preceding the taxable year in which the
respective Resolution Date occurs, unless SAP AG or the Group Company determines, in its sole
discretion, that such participant is unlikely to be a US citizen or resident in the taxable
year in which the respective Resolution Date occurs; or (iii) who is currently performing
services for SAP AG or any Group Company within the US, unless SAP AG or the Group Company
determines, in its sole discretion, that such participant is unlikely to be taxed in the US on
any compensation for services performed in the US during the Lock-In Period;
	 
	 	b)	 	beginning on the last day of the plan participant’s first taxable year
(ending after any Resolution Date) in which the participant is a US resident alien; or
	 
	 	c)	 	beginning on the first day (after any Resolution Date) on which the plan participant
performs services for SAP AG or any Group Company within the US, unless SAP AG or the Group
Company determines, in its sole discretion, that such participant is unlikely to be taxed in
the US on any compensation for services performed in the US during the Lock-In Period.

 

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Any determination made by SAP AG or the Group Company under this US-Addendum shall be
reflected in writing not later than the date on which the US-Addendum would otherwise become
applicable. For the avoidance of doubt, unless SAP AG or the Group Company making an Offer
and the affected plan participant otherwise agree in writing, the US-Addendum shall apply
under the particular circumstances listed without regard to whether it would apply under the
general rule stated above.

It is intended that a plan participant’s right to Investment Shares, or any income or gain
attributable thereto, shall not constitute a deferral of compensation within the meaning of
section 409A of the United States Internal Revenue Code.

Application of Short-Term Deferral Exception to Matching Shares

	 	a)	 	Calculation of Matching Shares Upon Termination of Participation Before the
End of the Lock-in Period. Notwithstanding any other provision of the Plan
to the contrary, in the event a plan participant terminates employment with SAP AG or
any other Group Company for the reasons set forth in Articles 16.2 and 17 or his or her
Matching Shares become fully vested and no longer subject to a substantial risk of
forfeiture before the end of the Lock-in period and would have otherwise been entitled
to a distribution if he or she had remained a participant in the plan until the end of
the Lock-in period, then the plan participant shall be entitled to a proportional amount
of Matching Shares as calculated in this paragraph. The proportional amount shall be
calculated by multiplying the applicable amount of
Matching Shares by the period of the plan participant’s employment during the Lock-in
period over the total three (3) year Lock-in period. If the resulting number of
Matching Shares is not a whole number, it shall be rounded up to the next whole
number.

	 	b)	 	Timing of Distributions. Notwithstanding any other provision of this SMP to the contrary, to the extent that Matching Shares or any other benefit under

 

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	 	 	this SMP are deemed to constitute a deferral of compensation within the meaning of section 409A of
the United States Internal Revenue Code, including (but not limited to) the provisions of Articles
13, 14, 15, 16, 17, 18, 19 and 20 of the SMP, all Matching Shares to which the participant is
entitled pursuant to any Article of this SMP (as modified by this US-Addendum, as applicable) shall
be transferred to the plan participant as soon as possible, but in no event later than the
fifteenth (15th) day of the third (3rd) month following
the end of the plan participant’s first taxable year in which the right to the Matching Shares is
fully vested and no longer subject to a substantial risk of forfeiture. The payment of Matching
Shares pursuant this US-Addendum shall comply with the short-term deferral rules under Treasury
Regulations section 1.409A-1(b)(4).

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