Document:

Exhibit 10.1

 

EnergySolutions, Inc.

423 West 300 South, Suite 200

Salt Lake City, Utah

 

	
 
    	
February 15, 2013
    

 

Rockwell Holdco, Inc. and Rockwell Acquisition Corp.

51 John F. Kennedy Parkway, Suite 200

Short Hills, New Jersey 07078

	
Attention:
    	
Tyler Reeder
    
	
 
    	
Chris Leininger
    
	
 
    	
 
    
	
 
    	
Re:
    	
Loan Amendments
    

 

Gentlemen:

 

Reference is made to that certain Agreement and Plan of Merger, dated as of January 7, 2013 (the “Merger Agreement”), by and among EnergySolutions, Inc., a Delaware corporation (the “Company”), Rockwell Holdco, Inc., a Delaware corporation (“Parent”), and Rockwell Acquisition Corp., a Delaware corporation and wholly owned subsidiary of Parent (“Merger Sub”, and, together with the Company and Parent, the “Parties”).  Capitalized terms used and not defined herein shall have the meanings assigned to such terms in the Merger Agreement.

 

1.             Loan Amendment. Pursuant to Section 1.1(ddd)(ii) of the Merger Agreement, certain portions of any Loan Amendments must be specified by Parent in its reasonable discretion. Each Party acknowledges and agrees that (i) it has received the proposed Loan Amendment attached hereto as Exhibit A (the “Proposed Loan Amendment”), (ii) each of the terms contained therein have been specified by Parent, and (iii) upon the occurrence of the “Execution Date” (as such term is defined in the Proposed Loan Amendment), the Proposed Loan Amendment shall constitute a Loan Amendment pursuant to Section 1.1(ddd) of the Merger Agreement.

 

2.             Interpretation of Execution and Effectiveness.  The Parties acknowledge and agree that when used in the Merger Agreement with respect to the Loan Amendments, each of the phrases “obtained,” “obtaining of,” “received,” “receipt of,” “in full force and effect,” and “to have provided” shall be deemed satisfied if (i) the “Execution Date” (as such term is defined in the Proposed Loan Amendment) occurs and (ii) the Proposed Loan Amendment has not been validly rescinded, withdrawn, terminated or cancelled by any party thereto. The Parties further acknowledge and agree that when used in Section 6.7(a) of the Merger Agreement, the phrase “consummation of...the Loan Amendments” shall include the occurrence of the “Effective Date” (as such term is defined in the Proposed Loan Amendment).

 

3.             Reimbursement. Parent agrees that, if the Merger Agreement is terminated pursuant to Section 8.1 of the Merger Agreement, then within two (2) Business Days of such termination, Parent shall pay, or cause to be paid, to the Company or its designee by wire transfer to one or more accounts designated by the Company the amount of any fees, costs, expenses or

 

 

disbursements actually paid or caused to be paid by the Company to (i) JPMorgan Chase Bank, N.A. (or any successor agent) pursuant to Section 4(b) of the Proposed Loan Amendment, (ii) JPMorgan Chase Bank, N.A. (or any successor agent) pursuant to Section 4(c) of the Proposed Loan Amendment, (iii) any “Lead Arranger” (as such term is defined in the Project Coltrane Fee Letter, dated January 7, 2013, by and between Morgan Stanley Senior Funding, Inc. and Rockwell Holdco, Inc. (the “Project Coltrane Fee Letter”)) on the Amendment Acceptance Date (as defined in the Project Coltrane Fee Letter) pursuant to Section 1(b) of the Project Coltrane Fee Letter, or, without duplication, (iv) the “Lead Arrangers,” “Administrative Agent,” “Commitment Parties” and “Dealer Manager” or their respective affiliates (as such terms are defined in the Project Coltrane Engagement and Commitment Letter, dated January 7, 2013, by and among Morgan Stanley Senior Funding, Inc., Morgan Stanley & Co. LLC and Rockwell Holdco, Inc. (the “Debt Commitment Letter”)) pursuant to the first sentence of Section 5 of the Debt Commitment Letter.

 

4.             Right to Offset. The Parties agree that any amounts payable by Parent pursuant to Section 3 above may be offset (at the written election of either Parent or the Company) against the amount of any of Parent’s Reimbursable Expenses or Company Termination Fee which is payable under the Merger Agreement.  For clarity, any amounts payable pursuant to Section 2 shall be deemed to be Parent’s Expenses which are eligible to be treated as Parent’s Reimbursable Expenses.

 

5.             Notices. Any notices or other communications required or permitted under, or otherwise given in connection with this letter agreement, shall be in writing and shall be deemed to have been duly given (a) when delivered, if delivered in person, (b) upon confirmation of receipt, when transmitted by facsimile transmission or by electronic mail, (c) on receipt, after dispatch by registered or certified mail, postage prepaid, or (d) on the next Business Day, if transmitted by national overnight courier, addressed in each case as follows:

 

If to Parent, at:

 

51 John F. Kennedy Parkway, Suite 200

Short Hills, New Jersey 07078

	
Attention:
    	
Tyler Reeder
    
	
 
    	
Chris Leininger
    
	
Facsimile:
    	
(973) 671-6101
    

 

with a copy (which shall not constitute notice) to:

 

Latham & Watkins LLP

885 Third Avenue

New York, New York 10022

	
Attention:
    	
David A.   Kurzweil
    
	
 
    	
David C. Lee
    
	
Facsimile:
    	
(212) 751-4864
    

 

If to the Company, at:

 

 

423 West 300 South, Suite 200

Salt Lake City, Utah 84101

	
Attention:
    	
General Counsel
    
	
Facsimile:
    	
(801) 321-0453
    

 

with a copy (which shall not constitute notice) to:

 

Skadden, Arps, Slate, Meagher & Flom LLP

525 University Avenue

Palo Alto, California 94301

	
Attention:
    	
Kenton J. King
    
	
 
    	
Leif B. King
    
	
Facsimile:
    	
(650) 470-4570
    

 

6.             Entire Agreement. This letter agreement constitutes the entire agreement of the Parties and supersedes all prior agreements and undertakings, both written and oral, between the Parties with respect to the subject matter hereof.

 

7.             GOVERNING LAW; JURISDICTION; WAIVER OF JURY TRIAL.

 

(a)   This letter agreement and all actions, proceedings or counterclaims (whether based on contract, tort or otherwise) arising out of or relating to this letter agreement or the actions of the Parties in the negotiation, administration, performance and enforcement thereof, shall be governed by, and construed in accordance with the laws of the State of Delaware, without giving effect to any choice or conflict of laws provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.

 

(b)   Each of the Parties hereby irrevocably submits to the exclusive jurisdiction of the Delaware Court of Chancery (or, if (but only if) the Delaware Court of Chancery shall be unavailable, any other court of the State of Delaware or any Federal court sitting in the State of Delaware) for the purpose of any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this letter agreement or the actions of the Parties in the negotiation, administration, performance and enforcement thereof, and each of the Parties hereby irrevocably agrees that all claims in respect to such action or proceeding may be heard and determined exclusively in any Delaware state or federal court.

 

(c)   Each of the Parties (i) irrevocably consents to the service of the summons and complaint and any other process in any other action or proceeding relating to the transactions contemplated by this letter agreement, on behalf of itself or its property, in the manner provided for in Section 4, and nothing in this Section 6 shall affect the right of the Parties to serve legal process in any other manner permitted by law, (ii) consents to submit itself to the personal jurisdiction of the Delaware Court of Chancery (or, if (but only if) the Delaware Court of Chancery shall be unavailable, any other court of the State of Delaware or any Federal court sitting in the State of Delaware) in the event any dispute arises out of this letter agreement or the transactions contemplated by this letter agreement, (iii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave

 

 

from any such court and (iv) agrees that it will not bring any action relating to this letter agreement or the transactions contemplated by this letter agreement in any court other than the Delaware Court of Chancery (or, if (but only if) the Delaware Court of Chancery shall be unavailable, any other court of the State of Delaware or any Federal court sitting in the State of Delaware). Each of the Parties agrees that a final judgment in any action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law; provided, however, that nothing in the foregoing shall restrict any party’s rights to seek any post-judgment relief regarding, or appeal from, such final trial court judgment.

 

(d)   EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS LETTER AGREEMENT OR THE ACTIONS OF THE PARTIES IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF.

 

8.             Assignment. Neither this letter agreement nor any of the rights, interests or obligations hereunder shall be assigned by any Party (whether by operation of law or otherwise) without the prior written consent of the other Parties. Subject to the foregoing, this letter agreement will be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and permitted assigns.

 

9.             Counterparts. This letter agreement may be executed by facsimile or .pdf and in one or more counterparts, and by the different parties in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this letter agreement by facsimile transmission or by e-mail of a .pdf attachment shall be effective as delivery of a manually executed counterpart of this letter agreement.

 

[Signature page follows]

 

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
EnergySolutions, Inc.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gregory S. Wood
    
	
 
    	
 
    	
Name:
    	
Gregory S. Wood
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and
    
	
 
    	
 
    	
 
    	
Chief Financial Officer
    
					

 

Agreed and Accepted:

 

Rockwell Holdco, Inc.

 

 

	
By:
    	
/s/ Tyler Reeder
    	
 
    
	
 
    	
Name:
    	
Tyler Reeder
    	
 
    
	
 
    	
Title:
    	
Chief Executive Officer and President
    	
 
    

 

Rockwell Acquisition Corp.

 

 

	
By:
    	
/s/ Tyler Reeder
    	
 
    
	
 
    	
Name:
    	
Tyler Reeder
    	
 
    
	
 
    	
Title:
    	
Chief Executive Officer and President
    	
 
    

 

[Signature page]

 

 

Exhibit A

Loan Amendment

(see attached)

 

 

Execution Version

 

AMENDMENT NO. 2 TO CREDIT AGREEMENT AND CONSENT AND WAIVER

 

This AMENDMENT NO. 2 TO CREDIT AGREEMENT AND CONSENT AND WAIVER, dated as of February 15, 2013 (this “Amendment”), is entered into by and among EnergySolutions, Inc., a Delaware corporation (“Parent”),  EnergySolutions, LLC, a Utah limited liability company (“EnergySolutions”), as the Borrower, the Lenders signatory hereto and JPMorgan Chase Bank, N.A., as the Administrative Agent, and is made with reference to that certain Credit Agreement dated as of August 13, 2010, as amended by that certain Amendment No. 1, dated as of August 23, 2010 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Parent,  EnergySolutions, the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as the Administrative Agent.  Capitalized terms used and not defined herein shall have the meanings assigned to such terms in the Credit Agreement.

 

WHEREAS, pursuant to that certain Agreement and Plan of Merger, dated as of January 7, 2013 (as amended prior to the date hereof, the “Merger Agreement”), by and among Parent, Rockwell Holdco, Inc., a Delaware corporation (“Holdco”), and Rockwell Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of Holdco (“Merger Sub”), Merger Sub intends to merge with and into Parent, with Parent continuing as the surviving entity (the “Merger”).  The Merger Agreement and related documents entered into by the Parent, Merger Sub, their respective shareholders or members, and/or their respective Subsidiaries or other Affiliates are hereinafter collectively referred to as the “Merger Documents”;

 

WHEREAS, EnergySolutions has requested, and the Administrative Agent and the Lenders signatory hereto have agreed, to amend and/or waive certain provisions of the Credit Agreement, and to consent to certain matters, in each case as provided for herein; and

 

WHEREAS, Morgan Stanley Senior Funding, Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC (collectively, the “Lead Arrangers”) have agreed to act as lead arrangers and bookrunners with respect to this Amendment.

 

NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants contained herein the parties hereto agree, effective as of the Execution Date (as defined below) (with the exception of Section 1 hereto, which shall be effective as of the Effective Date (as defined below)), as follows:

 

SECTION 1.                            AMENDMENT

 

(a)                                 Section 1.1 of the Credit Agreement is hereby amended as follows:

 

(i)                                     The definition of “Applicable Margin” is hereby amended and restated in its entirety to read as follows:

 

“Applicable Margin” shall mean, for any date, (a) with respect to any Term Loan (i) 4.00% per annum, in the case of a Base Rate Loan or (ii) 5.00% per annum, in the case of a Eurodollar Loan and (b) with respect to any Revolving Loan, (i) 3.50% per annum, in the case of a Base Rate Loan, or (ii) 4.50% per annum, in the case of a Eurodollar Loan.

 

 

(ii)                                  The definition of “Change of Control” is hereby amended and restated in its entirety to read as follows:

 

“Change of Control” shall mean Energy Capital Partners II, LP, and/or its Affiliates, in the aggregate, shall fail to own and control, directly or indirectly, beneficially and of record, Equity Interests in EnergySolutions representing at least 50% on a fully diluted basis of (a) the aggregate ordinary voting power and (b) the aggregate equity value represented by the issued and outstanding Equity Interests of EnergySolutions.

 

(iii)          The definition of “Class” is hereby amended and restated in its entirety to read as follows:

 

“Class”, when used in reference to (a) any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Term Loans, Revolving Loans, extended Revolving Loans pursuant to an Extension Permitted Amendment or, to the extent such Loans have different terms and conditions than the Term Loans, Incremental Term Loans, (b) any Commitment, refers to whether such Commitment is a Term Commitment, a Revolving Commitment, an extended Revolving Commitment pursuant to an Extension Permitted Amendment or an Incremental Term Commitment and (c) any Lender, refers to whether such Lender has a Loan or a Commitment of a particular Class.  Incremental Term Loans and Incremental Term Commitments that have different terms and conditions shall constitute separate Classes of Loans and Commitments.

 

(iv)          The definition of “Revolving Maturity Date” is hereby amended and restated in its entirety to read as follows:

 

“Revolving Maturity Date” shall mean the fifth anniversary of the date of this Agreement; provided that, after the effectiveness of an Extension Permitted Amendment providing for a new Class of extended Revolving Commitments and Revolving Loans, the “Revolving Maturity Date” with respect to such Class of Revolving Commitments and Revolving Loans shall be as provided in such Extension Permitted Amendment.

 

(v)           The following new terms and related definitions are hereby inserted in Section 1.1 of the Credit Agreement in the appropriate alphabetical order:

 

“Extending Revolving Issuing Banks” shall have the meaning set forth in Section 2.22(a).

 

“Extending Revolving Lenders” shall have the meaning set forth in Section 2.22(a).

 

“Extension Agreement” shall mean an extension agreement, in form and substance reasonably satisfactory to EnergySolutions and the applicable Extending Revolving Lenders and/or Extending Revolving Issuing Banks, to be entered into by and

 

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among Parent, EnergySolutions, the Administrative Agent and such Extending Revolving Lenders and/or Extending Revolving Issuing Banks, effecting an Extension Permitted Amendment and such other amendments hereto and to the other Loan Documents as are contemplated by Section 2.22.

 

“Extension Offer” shall have the meaning set forth in Section 2.22(a).

 

“Extension Permitted Amendment” shall mean an amendment to this Agreement and the other Loan Documents, effected in connection with an Extension Offer pursuant to Section 2.22, providing for (a) an extension of the Revolving Maturity Date applicable to the Extending Revolving Lenders’ Revolving Loans and/or Revolving Commitments of the applicable Extension Request Class and/or (b) an extension by one or more Revolving Issuing Banks of the period for which such Persons will act as Revolving Issuing Banks.

 

“Extension Request Class” shall have the meaning set forth in Section 2.22(a).

 

“Holdco” shall mean Rockwell Holdco, Inc., a Delaware corporation.

 

“Rockwell” shall mean Rockwell Acquisition Corp., a Delaware corporation.

 

“Second Amendment Effective Date” shall mean the “Effective Date”, as defined in that certain Amendment No. 2 to Credit Agreement and Consent and Waiver, dated as of February 15, 2013, by and among the Parent, EnergySolutions, the Administrative Agent and the Lenders party thereto.

 

“Second Amendment Execution Date” shall mean the “Execution Date”, as defined in that certain Amendment No. 2 to Credit Agreement and Consent and Waiver, dated as of February 15, 2013, by and among the Parent, EnergySolutions, the Administrative Agent and the Lenders party thereto.

 

(b)           Section 2.13(c) of the Credit Agreement is hereby amended by replacing the words “Closing Date” in the first line thereof with the words “Second Amendment Execution Date”.

 

(c)           Section 2.19(b) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(b) Reduction of Revolving Commitments and Revolving L/C Specified Amount.            EnergySolutions may at any time terminate, or from time to time permanently reduce, (i) the Revolving Commitments; provided that (x) each partial reduction of the Revolving Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (y) EnergySolutions shall not terminate or reduce the Revolving Commitments if, after giving effect to any concurrent prepayment of Revolving Loans in accordance with Section 2.11(a), the Aggregate Revolving Exposure would exceed the Aggregate Revolving Commitment and (ii) the Revolving L/C Specified Amount; provided that  (x) each partial reduction of the Revolving L/C Specified Amount shall be in an amount that is an integral multiple of

 

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$1,000,000  and  not  less  than  $5,000,000  and  (y) EnergySolutions  shall  not  terminate  or  reduce  the  Revolving  L/C  Specified  Amount  if,  after  giving  effect  to  any  concurrent  termination  of Revolving Letters of Credit in accordance with Section 2.11(a), the Revolving L/C Exposure would exceed the Revolving L/C Specified Amount.”.

 

(d)           Article II of the Credit Agreement is hereby amended by inserting a new Section 2.22 after existing Section 2.21 as follows:

 

“SECTION 2.22  Extensions of Revolving Commitments.

 

(a)           EnergySolutions may on one or more occasions, by written notice to the Administrative Agent, make one or more offers (each, an “Extension Offer”) to all (and not fewer than all) the Revolving Lenders and/or Revolving Issuing Banks of one or more Classes (each Class subject to such an Extension Offer, an “Extension Request Class”) to make one or more Extension Permitted Amendments pursuant to procedures reasonably specified by the Administrative Agent and reasonably acceptable to EnergySolutions.  Such notice shall set forth (i) the terms and conditions of the requested Extension Permitted Amendments and (ii) the date on which such Extension Permitted Amendments are requested to become effective (which shall not be less than ten Business Days nor more than 30 Business Days after the date of such notice, unless otherwise agreed to by the Administrative Agent).  Extension Permitted Amendments shall become effective only with respect to the Revolving Loans and Revolving Commitments of the Revolving Lenders and/or Revolving Issuing Banks of the Extension Request Class that accept (it being understood and agreed that any Revolving Lender or Revolving Issuing Bank that fails to respond to an Extension Offer shall be deemed to have rejected such Extension Offer) the applicable Extension Offer (such Revolving Lenders, the “Extending Revolving Lenders” and such Revolving Issuing Banks, the “Extending Revolving Issuing Banks”) and (x) in the case of any Extending Revolving Lender, only with respect to such Revolving Lender’s Revolving Loans and Revolving Commitments of such Extension Request Class as to which such Revolving Lender’s acceptance has been made and (y) in the case of any Extending Revolving Issuing Bank, only with respect to such Revolving Issuing Bank’s agreement to act as Revolving Issuing Bank.  With respect to all Extension Permitted Amendments consummated by EnergySolutions pursuant to this Section 2.22, (A) such Extensions shall not constitute voluntary or mandatory payments or prepayments for purposes of Sections 2.10 and 2.11 and (B) any Extension Offer, unless contemplating a Revolving Maturity Date already in effect hereunder pursuant to a previously consummated Extension Permitted Amendment, is required to be in a minimum amount of $10,000,000, provided that EnergySolutions may at its election specify as a condition to consummating any such Extension Permitted Amendment that a minimum amount (to be determined and specified in the relevant Extension Offer in EnergySolutions’ sole discretion and which may be waived by EnergySolutions) of Revolving Commitments or Revolving Loans of any or all applicable Classes be extended.  If the aggregate principal amount of Revolving Commitments in respect of which Revolving Lenders shall have accepted the relevant Extension Offer shall exceed the maximum aggregate principal amount of Revolving Commitments offered to be extended by EnergySolutions pursuant to such Extension Offer, then the Revolving Commitments (and related Revolving Loans) of such

 

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Revolving Lenders shall be extended ratably up to such maximum amount based on the respective principal amounts (but not to exceed actual holdings of record) with respect to which such Revolving Lenders have accepted such Extension Offer.

 

(b)           An Extension Permitted Amendment shall be effected pursuant to an Extension Agreement executed and delivered by the Parent, EnergySolutions, each applicable Extending Revolving Lender and Extending Revolving Issuing Bank and the Administrative Agent; provided that no Extension Permitted Amendment shall become effective unless no Event of Default shall have occurred and be continuing on the date of effectiveness thereof.  The Administrative Agent shall promptly notify each Revolving Lender and Revolving Issuing Bank as to the effectiveness of each Extension Agreement.  Each Extension Agreement may, without the consent of any Revolving Lender or any Revolving Issuing Bank other than the applicable Extending Revolving Lenders and Extending Revolving Issuing Banks, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent, to give effect to the provisions of this Section, including any amendments necessary to treat the applicable Revolving Loans and/or Revolving Commitments of the Extending Revolving Lenders or the agreement to act as Revolving Issuing Bank of such Extending Revolving Issuing Banks as a new Class of revolving loans and/or revolving commitments hereunder (and the Revolving Lenders or Revolving Issuing Banks hereby irrevocably authorize the Administrative Agent to enter into any such amendments); provided that (i) all Borrowings, all prepayments of Revolving Loans and all reductions of Revolving Commitments shall continue to be made on a ratable basis among all Revolving Lenders, based on the relative amounts of their Revolving Commitments (i.e., both extended and non-extended), until the repayment of the Revolving Loans attributable to the non-extended Revolving Commitments (and the termination of the non-extended Revolving Commitments) on the relevant Revolving Maturity Date, (ii) the allocation of the participation exposure with respect to any then-existing or subsequently issued or made Revolving Letter of Credit as between the Revolving Commitments of such new “Class” and the remaining Revolving Commitments shall be made on a ratable basis in accordance with the relative amounts thereof until the Revolving Maturity Date relating to such non-extended Revolving Commitments has occurred (it being understood, however, that no reallocation of such exposure to extended Revolving Commitments shall occur on such Revolving Maturity Date if (1) any Event of Default under clause (b), (f) or (g) of Section 8.1 exists at the time of such reallocation or (2) such reallocation would cause the revolving credit exposure of any Revolving Lender with a Revolving Commitment to exceeds its Revolving Commitment), (iii) the Revolving Availability Period and the Revolving Maturity Period, as such terms are used in reference to Revolving Letters of Credit, shall not be extended pursuant to any such Extension Agreement with respect to any Revolving Issuing Bank that has rejected the applicable Extension Offer, and (iv) at no time shall there be more than three Classes of Revolving Commitments hereunder, unless otherwise agreed by the Administrative Agent.  If the Aggregate Revolving Exposure exceeds the Aggregate Revolving Commitment as a result of the occurrence of the Revolving Maturity Date with respect to any Class of Revolving Commitments while an extended Class of Revolving Commitments remains outstanding, EnergySolutions shall

 

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make such payments and provide such cash collateral as may be required by Section 2.11(a) to eliminate such excess on such Revolving Maturity Date.  The Administrative Agent, the Lenders and the Revolving Issuing Banks hereby acknowledge that the minimum borrowing, pro  rata borrowing and pro  rata payment requirements contained elsewhere in this Agreement are not intended to apply to the transactions effected pursuant to this Section 2.22.

 

(c)           Any such extension may be made in an amount that is less than the amount requested by EnergySolutions to be extended if EnergySolutions is unable to arrange for, or chooses not to arrange for, Revolving Commitments in an amount equal to the Revolving Commitments then in effect but in no event shall any such extension be made in an amount that exceeds the Aggregate Revolving Commitments hereunder (as may be increased, from time to time, pursuant to Section 2.18).  If EnergySolutions is unable to arrange for, or chooses not to arrange for, Extending Revolving Issuing Banks willing to extend for the full amount of the Revolving L/C Specified Amount then in effect, the Revolving L/C Specified Amount may be reduced by EnergySolutions in accordance with Section 2.19(b).”.

 

(e)           Section 6.1 of the Credit Agreement is hereby amended by deleting the following parenthetical in its entirety:  “(or, so long as Parent shall be subject to periodic reporting obligations under the Exchange Act, by the date five days after the date that the Quarterly Report on Form 10-Q of Parent for such fiscal quarter would be required to be filed under the rules and regulations of the SEC, giving effect to any automatic extension available thereunder for the filing of such form)”.

 

(f)            Section 6.2 of the Credit Agreement is hereby amended by deleting the following parenthetical in its entirety:  “(or, so long as Parent shall be subject to periodic reporting obligations under the Exchange Act, by the date five days after the date that the Annual Report on Form 10-K of Parent for such fiscal quarter would be required to be filed under the rules and regulations of the SEC, giving effect to any automatic extension available thereunder for the filing of such form)”.

 

(g)           Section 7.1 of the Credit Agreement is hereby amended by inserting a new paragraph immediately after clause (u) thereof as follows:

 

“Notwithstanding the foregoing, from and after the date that is 150 days after the Second Amendment Effective Date, Parent and EnergySolutions shall not permit the sum of (a) the aggregate outstanding principal amount of Term Loans under this Credit Agreement plus (b) the outstanding principal amount of the Senior Notes to exceed an amount equal to $675,000,000.”.

 

(h)           Section 7.7(c) of the Credit Agreement is hereby amended by (i) deleting the word “and” at the end of clause (vi) thereof, (ii) inserting “and” at the end of clause (vii) thereof and (iii) inserting a new clause (viii) immediately after clause (vii) thereof as follows:

 

“(viii)      payments in respect of the Senior Notes to be made by the Parent or EnergySolutions to the extent such payments are made solely from the proceeds of equity

 

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contributions from Rockwell, Holdco, Energy Capital Partners II, LP, and/or any of their respective Affiliates (other than the Parent or EnergySolutions).”.

 

(i)            Section 8.1(j)(iii) of the Credit Agreement is hereby amended by deleting the words “or the Senior Notes” prior to the phrase “without the prior payment in full of the Obligations”.

 

(j)            Section 10.10(b) of the Credit Agreement is hereby amended by (i) deleting the word “and” at the end of clause (x) thereof, (ii) inserting “and” at the end of clause (y) thereof and (iii) inserting a new subclause (z) immediately after clause (y) thereof as follows:

 

“(z) with the agreement and consent of the Revolving Lenders and Revolving Issuing Banks referred to therein, and without the necessity of obtaining the approval of any other Lenders or Revolving Issuing Banks hereunder, Extension Permitted Amendments may be entered into pursuant to Section 2.22.”.

 

SECTION 2.                            CONSENT AND WAIVER

 

Each of the Administrative Agent and each Lender signatory hereto hereby (a) consents to the Merger, the execution, delivery and performance of the Merger Documents and the transactions contemplated by the Merger Documents without waiver or amendment thereof that is material and adverse to the Lenders unless consented to by the Lead Arrangers (such consent not to be unreasonably withheld, delayed or conditioned), (b) agrees that the Merger shall not constitute a Change of Control under the Credit Agreement (either before or after giving effect to this Amendment) and waives any Default or Event of Default arising, or which may arise under any Loan Document, in connection with or as a result of the consummation of the Merger or any other transaction contemplated by the Merger Documents and (c) consents to the repayment, defeasance or repurchase of the Senior Notes by the Parent or EnergySolutions, provided that such repayment, defeasance or repurchase is made from equity contributions received from Rockwell, Holdco, Energy Capital Partners II, LP, or any Affiliate thereof.

 

SECTION 3.                            AUTHORIZATION TO ENTER INTO THIS AMENDMENT

 

Each of the Parent, EnergySolutions, the Administrative Agent and the Lenders signatory hereto agrees and acknowledges that the amendments set forth in this Amendment constitute amendments that require pursuant to Section 10.1(a) of the Credit Agreement the consent of the Majority Lenders and that, accordingly, the Parent, EnergySolutions, the Administrative Agent and the Lenders signatory hereto are authorized to execute this Amendment and to cause this Amendment to be binding upon the Parent, EnergySolutions, the Administrative Agent and the Lenders.

 

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SECTION 4.                            EXECUTION DATE

 

This Amendment shall become binding and effective upon the date on which the following conditions are satisfied (such date, the “Execution Date”):

 

(a)           due execution of this Amendment by each of the Parent, EnergySolutions, the Administrative Agent and Lenders constituting Majority Lenders;

 

(b)           payment by or on behalf of EnergySolutions to the Administrative Agent, for the account of each Lender that returns to the Administrative Agent its executed counterpart of a signature page to this Amendment no later than 5:00 p.m. (New York time) on February 15, 2013, of a fee equal to 0.50% of the sum of such Lender’s outstanding Term Loans and Revolving Commitments as of the Execution Date (determined after giving effect to this Amendment); and

 

(c)           the Administrative Agent shall have received from EnergySolutions (or on its behalf) reimbursement of all reasonable and documented fees, charges and disbursements of one legal counsel in connection with the preparation of this Amendment;

 

provided that the amendments contained in Section 1 hereto shall not become effective until the occurrence of the Effective Date (as defined below).

 

SECTION 5.                            CONDITIONS TO EFFECTIVENESS

 

Notwithstanding the foregoing Section 4, the amendments contained in Section 1 hereto shall become effective (and the Credit Agreement shall be deemed to have been modified as provided therein) only upon the date on which the following conditions are satisfied (such date, the “Effective Date”):

 

(a)           the Merger occurs in accordance with the Merger Agreement without waiver or amendment thereof that is material and adverse to the Lenders unless consented to by the Lead Arrangers (such consent not to be unreasonably withheld, delayed or conditioned); and

 

(b)           payment by or on behalf of EnergySolutions to the Administrative Agent, for the account of each Lender that returns to the Administrative Agent its executed counterpart of a signature page to this Amendment no later than 5:00 p.m. (New York time) on February 15, 2013, of a fee equal to 0.50% of the sum of such Lender’s outstanding Term Loans and Revolving Commitments as of the Effective Date (determined after giving effect to this Amendment).

 

SECTION 6.                            REPRESENTATIONS AND WARRANTIES

 

Each of the Parent and EnergySolutions hereby represents and warrants that:

 

(a)           this Amendment has been duly authorized, executed and delivered by it and each of this Amendment and the Credit Agreement constitute its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar laws of

 

8

 

general applicability relating to or limiting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law; and

 

(b)           as of the Execution Date, after giving effect to the consents and waivers set forth in Section 2 hereto, there is no Default or Event of Default that is now existing or which would result from the execution of this Amendment.

 

SECTION 7.                            EFFECT ON AND RATIFICATION OF LOAN DOCUMENTS

 

(a)                                 Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders, any Issuing Bank or the Administrative Agent under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances.  This Amendment shall apply to and be effective only with respect to the provisions of the Credit Agreement specifically referred to herein.

 

(b)                                 On and after the Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import, and each reference to the Credit Agreement “thereunder”, “thereof”, “therein” or words of like import intended to refer to the Credit Agreement in any other Loan Document, shall be deemed a reference to the Credit Agreement as amended hereby.

 

(c)                                  This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement and the other Loan Documents.

 

SECTION 8.                            COUNTERPARTS

 

This Amendment may be executed in any number of counterparts. each of which shall be an original and all of which, when taken together, shall constitute one agreement. Delivery of an executed counterpart of a signature page of this Amendment by facsimile transmission or other electronic imaging shall be effective as delivery of a manually executed counterpart of this Amendment.

 

9

 

SECTION 9.         GOVERNING LAW

 

THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

[Remainder of Page Intentionally Left Blank]

 

10

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of the date first set forth above.

 

 

	
 
    	
ENERGYSOLUTIONS, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ENERGYSOLUTIONS, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO CREDIT AGREEMENT]

 

 

	
 
    	
JPMORGAN CHASE BANK, NA.,
    
	
 
    	
as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO CREDIT AGREEMENT]

 

 

	
 
    	
[ · ],
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[ · ],
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[ · ],
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[ · ],
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:Exhibit 10.1

 

THE COCA-COLA COMPANY
 1999 STOCK OPTION PLAN 
 (Amended and Restated Through February 20, 2013)

 

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

 

 

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 Coca-Cola Company Pension Plan.

 

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

 

2

 

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 (which was adjusted to 240,000,000 shares to reflect the stock split effected on July 27, 2012 and is subject to further 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,

 

3

 

(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 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.

 

4

 

(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 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.

 

5

 

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
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Employee   is involuntary terminated after attaining age 50 and completing 10 Years of   Service because of reduction in workforce, internal reorganization, or job   elimination and optionee signs a release of all claims and, if   requested, an agreement on confidentiality and competition
    	
 
    	
Options   held at least 12 months continue to vest for four years from termination date   in accordance with the Option vesting schedule provided in the grant. Options   held less than 12 months are forfeited.
    	
 
    	
Expires   upon earlier of (1) four years from termination date, or (2) the   Option expiration date provided in the grant agreement.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
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 (including death during/after Disability)
    	
 
    	
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 
    	
 
    	
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.

 

6

 

	
any   other reason.
    	
 
    	
 
    	
 
    	
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 optionees employer falls under 20% (this constitutes a   termination of employment under the Plan, effective the date the investment   falls below 20%)
    	
 
    	
Unvested   Options are forfeited
    	
 
    	
Expires   upon earlier of 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.

 

7

 

(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.

 

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 

 

8

 

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 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.

 

9

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