Document:

Exhibit
10.1

 

EXECUTION VERSION

 

SECOND AMENDMENT dated as of September 30, 2009 (this “Amendment”),
to the Credit Agreement dated as of June 9, 2008, (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among SCIENTIFIC GAMES INTERNATIONAL, INC., a Delaware corporation (the “Borrower”),
SCIENTIFIC GAMES CORPORATION, a Delaware corporation (“Holdings”), the
several lenders from time to time party thereto and JPMORGAN CHASE BANK, N.A.,
as administrative agent (in such capacity, the “Administrative Agent”).

 

WHEREAS:

 

A.            Unless otherwise noted
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement.

 

B.            The Borrower has requested
that the Administrative Agent and the Lenders amend certain provisions of the
Credit Agreement.

 

C.            The Administrative Agent and
the undersigned Lenders are willing to amend certain provisions of the Credit
Agreement, all on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in
consideration of the above recitals and the covenants and conditions
hereinafter set forth, and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, each of Holdings, the
Borrower, the Administrative Agent and the undersigned Lenders hereby agree as
follows:

 

SECTION 1.  Amendments to Credit
Agreement.  The Credit
Agreement is hereby amended as follows:

 

(a)  Section 1.1
of the Credit Agreement is hereby amended by adding the following definitions
in proper alphabetical order:

 

“Italian Concession”:
any concession awarded to, or agreement entered into by, the Borrower,
Holdings, any Subsidiary of Holdings or any Italian Concession Vehicle by or
with the Amministrazione Autonoma dei Monopoli di Stato (or other applicable
Italian governmental authority), whether such concession or agreement is now
existing or hereafter arising and any renewals of such concession or agreement,
with respect to the public games known as national lotteries in Italy (whether
now existing or hereafter arising), together with any procedures, activities,
functions or requirements in connection therewith (or any amendment or
supplement to any such concession, agreement, procedures, activities, functions
or requirements).

 

 

“Italian Concession
Obligations”: any payments, costs, contributions or obligations (in the
case of clauses (a) and (b) hereof, in an aggregate amount (based on
the fair market value thereof, as reasonably determined in good faith by the
Borrower, in the case of non-cash assets) not to exceed the amount set forth on
Schedule 1.1(c)), made or incurred by any of the Borrower, Holdings or any
Subsidiary of Holdings (whether directly, or indirectly to or through any
Italian Concession Vehicle or any of its equity holders or members) in the form
of (and including any costs to obtain, or credits or discounts associated with)
(a) tender fees, up-front fees, bid or performance bonds, guarantees,
reimbursement obligations or similar arrangements, capital requirements or
contributions or similar payments or obligations in respect of any award,
renewal or extension of any Italian Concession or the formation of or entry
into or capitalization of any Italian Concession Vehicle, (b) other
payments, costs, contributions or obligations (including any credits or
discounts) in connection with obtaining, renewing or extending any Italian
Concession, or the formation of or entry into or capitalization of any Italian
Concession Vehicle, that are (and are certified by the Borrower to be) incurred
or agreed to in lieu of payments, costs, contributions or obligations described
in clause (a) above or (c) commissions, payments or other
consideration (including any credits or discounts) paid or given to any Italian
Concession Vehicle or any of its equity holders or members in connection with
the direct or indirect provision by the Borrower, Holdings or any Subsidiary of
Holdings of goods or services to any consortium, joint venture or other Person
that is awarded any concession by, or has an agreement with, the
Amministrazione Autonoma dei Monopoli di Stato (or other applicable Italian
governmental authority) (whether now existing or hereafter arising and any
renewals thereof) with respect to the public games known as national lotteries
in Italy (whether now existing or hereafter arising) other than an Italian
Concession.

 

“Italian Concession
Vehicle”: any consortium, joint venture or other Person entered into by the
Borrower, Holdings and/or any Subsidiary of Holdings or in which the Borrower,
Holdings and/or any Subsidiary of Holdings directly or indirectly participates
or has an interest or a contractual relationship, which consortium, joint
venture or other Person holds or is party to an Italian Concession.

 

“Second Amendment”:
the Second Amendment, dated as of September 30, 2009, to this Agreement.

 

(b)  Section 1.1 of the Credit
Agreement is hereby further amended by amending and restating the definition of
“Applicable Margin” in its entirety as follows:

 

“Applicable Margin”:
for any day with respect to a Loan, the applicable rate per annum set forth
below under the caption “Applicable Margin for Eurocurrency Loans” or “Applicable
Margin for Base Rate Loans”, as the case may be, based upon the Consolidated
Leverage Ratio as of the most 

 

2

 

recent determination date; provided
that, notwithstanding the paragraph set forth beneath the table below, for a
period of six months beginning on the Second Amendment Effective Date, the
Applicable Margin (including for purposes of Section 3.9) shall be deemed
to be as specified in Category 1.

 

	
  Consolidated
  Leverage Ratio

  	
   

  	
  Applicable Margin

  for Eurocurrency

  Loans

  	
   

  	
  Applicable Margin for

  Base Rate Loans

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 1

   

  Greater than or equal to
  4.25:1.00

  	
   

  	
  3.25

  	
  %

  	
  2.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 2

   

  Less than 4.25:1.00 but
  greater than or equal to 4.00:1.00

  	
   

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 3

   

  Less than 4.00:1.00 but
  greater than or equal to 3.25:1.00

  	
   

  	
  2.75

  	
  %

  	
  1.75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 4

   

  Less than 3.25:1.00 but
  greater than or equal to 2.75:1.00

  	
   

  	
  2.50

  	
  %

  	
  1.50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 5

   

  Less than 2:75:1.00 but
  greater than or equal to 2:25:1.00

  	
   

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 6

   

  Less than 2.25:1.00

  	
   

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  

 

For
purposes of the foregoing, the Applicable Margin shall be adjusted, on and
after the first Adjustment Date (as defined below) occurring after the Second
Amendment Effective Date, based on changes in the Consolidated Leverage Ratio,
with such adjustments to become effective on the date (the “Adjustment Date”)
that is three Business Days after the date on which the relevant financial
statements are delivered to the Lenders pursuant to Section 7.1 and to
remain in effect until the next adjustment to be effected pursuant to this
paragraph.  If any financial statements
referred to above are not delivered within the time periods specified in Section 7.1,
then, until the date that is three Business Days after the date on which such
financial statements are delivered, the highest rate set forth in each column
of the grid above shall apply.  On each
Adjustment Date, the Applicable Margin shall be adjusted to be equal to the
Applicable Margin opposite the Category determined to exist on such Adjustment
Date from the financial statements relating to such Adjustment Date.

 

(c)  Section 1.1 of the Credit
Agreement is hereby further amended by amending and restating the definition of
“Commitment Fee Rate” in its entirety as follows:

 

3

 

“Commitment Fee Rate”:
If the Consolidated Leverage Ratio as of the most recent determination date is (a) greater
than or equal to 4.25:1.00, 0.75% per annum or (b) less than 4.25:1.00,
0.50% per annum; provided that for a period of six months beginning on
the Second Amendment Effective Date, the Commitment Fee Rate shall be deemed to
be 0.75% per annum.  For purposes of the
foregoing, the Commitment Fee Rate shall be adjusted, on and after the first
Adjustment Date occurring after the Second Amendment Effective Date, based on
changes in the Consolidated Leverage Ratio, with such adjustments to become
effective on the Adjustment Date and to remain in effect until the next
adjustment to be effected pursuant to this paragraph.  If any financial statements delivered to the
Lenders pursuant to Section 7.1 are not delivered within the time periods
specified therein, until the date that is three Business Days after the date on
which such financial statements are delivered, the Commitment Fee Rate shall be
0.75%.  On each Adjustment Date, the
Commitment Fee Rate be adjusted to be equal to the rate per annum set forth in
clause (a) or (b) above, as applicable.”

 

(d)  Section 1.1 of the Credit
Agreement is hereby further amended by revising the definition of “Consolidated
EBITDA” by replacing the word “and” at the end of clause (j) thereof with
a comma and adding the following new clause (l) immediately before the
word “minus” therein:

 

“and (l) to the extent
treated as an expense in the period paid or incurred, any Italian Concession
Obligations contemplated by clause (a) or (b) of the definition
thereof paid or incurred in such period”.

 

(e)  Section 1.1 of the Credit
Agreement is hereby further amended by revising clause (b) of the proviso
of the definition of “Consolidated Total Debt” by replacing the words “Convertible
Debentures Repurchase Date” with the words “the later of (x) the
Convertible Debentures Repurchase Date and (y) June 1, 2010”.

 

(f)  Section 1.1 of the Credit
Agreement is hereby further amended by revising the definition of “Foreign
Currency” by replacing the word “and” at the end of clause (a) thereof
with a comma, replacing the period at the end thereof with the word “and”, and
adding the following new clause (c):

 

“(c) with respect to
any Incremental Term Loans (as defined in Section 4.17), any currency
approved by the Borrower, the lender or lenders providing such Incremental Term
Loans and (if such currency is other than British Pounds Sterling or Euro) the
Administrative Agent.”

 

(g)  Section 1.1 of the Credit
Agreement is hereby further amended by revising the definition of “Permitted
Additional Senior Indebtedness” by adding the following at the end of the
parenthetical in clause (c) of the proviso thereof:

 

“unless such release of such
Guarantee Obligation of the applicable Subsidiary Guarantor in respect of the
Obligations is in connection with 

 

4

 

the repayment or refinancing
in full of the Obligations and the termination of the Commitments”.

 

(h)  Section 1.1 of the Credit
Agreement is hereby further amended by (i) revising the definition of “Reinvestment
Notice” by adding the following immediately after the words “Permitted
Acquisition” therein:

 

“or to make or incur an
Investment to fund or satisfy any Italian Concession Obligations not yet made
or satisfied (or to deem all or a specified portion of such Net Cash Proceeds
to have been applied to any such Investment made or incurred no more than three
months prior to the date of such notice; provided that, notwithstanding the
foregoing, as long as an Asset Sale is publicly announced not more than three
months after the making or incurrence of an Investment to fund or satisfy any
Italian Concession Obligations, then all or a specified portion of the Net Cash
Proceeds of such Asset Sale may, when received, be deemed to have been applied
to any such Investment already made or incurred even if such Investment was
made or incurred more than three months prior to the receipt of such Net Cash
Proceeds)”;

 

(ii) revising the
definition of “Reinvestment Prepayment Amount” by adding the following
immediately after the words “Permitted Acquisition” therein:

 

“or to make or incur an
Investment to fund or satisfy any Italian Concession Obligations that were, at
the time of such Investment, not yet made or satisfied (including all or the
specified portion of the Net Cash Proceeds of such Reinvestment Event deemed to
have been applied to any Investment to fund or satisfy any Italian Concession
Obligations made or incurred no more than three months prior to the date of the
relevant Reinvestment Notice (or, in the case of an Asset Sale, as long as such
Asset Sale was publicly announced not more than three months after the making
or incurrence of any such Investment, all or the specified portion of the Net
Cash Proceeds of such Asset Sale which, when received, were deemed to have been
applied to any such Investment already made or incurred even if such Investment
was made or incurred more than three months prior to the receipt of such Net
Cash Proceeds))”; and

 

(iii) revising the
definition of “Reinvestment Prepayment Date” by adding the following
immediately before the words “Permitted Acquisition” in clause (b) thereof:

 

“or make or incur an
Investment to fund or satisfy any Italian Concession Obligations not yet made
or satisfied (or deem all or a specified portion of the Net Cash Proceeds of
such Reinvestment Event to have been applied to any Investment to fund or
satisfy any Italian Concession Obligations made or incurred no more than three
months prior to the date of the relevant Reinvestment Notice (or, with respect
to any Asset Sale that was 

 

5

 

publicly announced not more
than three months after the making or incurrence of any Investment to fund or
satisfy any Italian Concession Obligations, deem all or a specified portion of
the Net Cash Proceeds of such Asset Sale, when received, to have been applied
to any such Investment already made or incurred even if such Investment was
made or incurred more than three months prior to the receipt of such Net Cash
Proceeds)”.

 

(i)  Section 3.15(a) of the
Credit Agreement is hereby amended by deleting the word “and” at the end of
clause (i) thereof, replacing the period at the end of clause (ii) thereof
with a semicolon, and adding the following new clauses (iii) and (iv) at
the end thereof:

 

“(iii) commitment fees
shall cease to accrue on the Available Revolving Commitment of such Defaulting
Lender pursuant to Section 3.5 from and after the date that such Lender
becomes a Defaulting Lender; provided that the foregoing shall not apply
to any Revolving Lender that does not execute the Second Amendment (but shall
apply to its successors and assigns); and

 

(iv) the aggregate
unpaid principal amount of Term Loans made by, and the Revolving Commitment and
any Revolving Extensions of Credit of, such Defaulting Lender shall be excluded
for purposes of determining whether all Lenders, each affected Lender, the
Required Lenders, the Majority Facility Lenders, the Super Majority Facility Lenders
or any other group or subset of Lenders have taken or may take any action
hereunder (including any consent to any amendment or waiver pursuant to Section 11.1),
provided that any waiver, amendment or modification requiring the
consent of all Lenders or each affected Lender and which treats such Defaulting
Lender differently than other affected Lenders shall require the consent of
such Defaulting Lender; provided  further that the foregoing shall
not apply to any Lender that does not execute the Second Amendment (but shall
apply to its successors and assigns).”

 

(j)  Section 4.8(d) of the
Credit Agreement is hereby amended by replacing the word “and” at the end of
clause (ii) of the proviso to the second sentence thereof with a comma,
replacing the period at the end of such sentence with the word “and”, and
adding the following new clause (iv):

 

“(iv) payments in
respect of the principal of or interest on any Incremental Term Loan
denominated in a Foreign Currency (and, if applicable, fees and expenses in
respect of any such Incremental Term Loan) shall be made in such Foreign
Currency.”

 

(k)  Section 4.17 of the Credit
Agreement is hereby amended by replacing the word “and” at the end of clause (i) of
the proviso to clause (c) thereof with a comma, deleting the word “and” at
the end of clause (ii) of the proviso to such clause (c) and adding
the following immediately before the period at the end of such proviso:

 

6

 

“, and (iv) the
Incremental Term Loans may be denominated in Dollars or a Foreign Currency”.

 

(l)  Section 4.17 of the Credit
Agreement is hereby further amended by adding the following immediately before
the period at the end of the third to last sentence thereof:

 

“, including, in the case of
any Incremental Term Loans denominated in a Foreign Currency, amendments in
order to reflect the denomination of such Loans in such Foreign Currency”.

 

(m)  Section 8.1(a) of the
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(a) Consolidated
Leverage Ratio.  Permit the
Consolidated Leverage Ratio as at the last day of any fiscal quarter of
Holdings to exceed the ratio set forth below with respect to such fiscal
quarter or with respect to the period during which such fiscal quarter ends:

 

	
  Fiscal
  Quarter Ending

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  June 30,
  2008 through September 30, 2009

  	
   

  	
  4.25
  to 1.00

  
	
   

  	
   

  	
   

  
	
  December 31,
  2009 through December 31, 2010

  	
   

  	
  4.75
  to 1.00

  
	
   

  	
   

  	
   

  
	
  March 31,
  2011 through December 31, 2011

  	
   

  	
  4.50
  to 1.00

  
	
   

  	
   

  	
   

  
	
  March 31,
  2012 through September 30, 2012

  	
   

  	
  4.25
  to 1.00

  
	
   

  	
   

  	
   

  
	
  December 31,
  2012 and thereafter

  	
   

  	
  4.00
  to 1.00”

  

 

(n)  Section 8.1(c) of the
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(c) Consolidated
Senior Debt Ratio.  Permit the
Consolidated Senior Debt Ratio as at the last day of any fiscal quarter of
Holdings to exceed the ratio set forth below with respect to such fiscal
quarter or with respect to the period during which such fiscal quarter ends:

 

	
  Fiscal
  Quarter Ending

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  June 30,
  2008 through September 30, 2009

  	
   

  	
  2.50
  to 1.00

  
	
   

  	
   

  	
   

  
	
  December 31,
  2009 through December 31, 2010

  	
   

  	
  2.75
  to 1.00

  
	
   

  	
   

  	
   

  
	
  March 31,
  2011 and thereafter

  	
   

  	
  2.50
  to 1.00”

  

 

7

 

(o)  Section 8.1(d) of the
Credit Agreement is hereby amended and restated in its entirety as follows

 

“(d) Consolidated
Interest Coverage Ratio.  Permit the
Consolidated Interest Coverage Ratio for any period of four consecutive fiscal
quarters of Holdings to be less than the ratio set forth below with respect to
such period or with respect to the period during which such four consecutive
fiscal quarters ends:

 

	
  Four
  Consecutive Fiscal Quarters Ending

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  On
  or prior to September 30, 2009

  	
   

  	
  3.50
  to 1.00

  
	
   

  	
   

  	
   

  
	
  December 31,
  2009 and thereafter

  	
   

  	
  3.00
  to 1.00”

  

 

(p)  Section 8.2(c) of the
Credit Agreement is hereby amended by adding the following immediately before
the period at the end thereof:

 

“, and Guarantee Obligations
incurred by Holdings or any of its Subsidiaries in respect of or constituting
Italian Concession Obligations described in clause (a) or (b) of the
definition thereof”.

 

(q)  Section 8.4 of the Credit
Agreement is hereby amended by deleting the word “and” at the end of clause (c) thereof,
replacing the period at the end of clause (d) thereof with a semicolon and
the word “and”, and adding the following new clause (e):

 

“(e) any Subsidiary of
Holdings (other than the Borrower) may be merged or consolidated with another
Person in order to effect an Investment permitted by clause (k), (l) or (n) of
Section 8.8.”

 

(r)  Section 8.5 of the Credit
Agreement is hereby amended by deleting the word “and” at the end of clause (f) thereof,
replacing the period at the end of clause (g) thereof with a semicolon,
and adding the following new clauses (h), (i), (j), (k), (l) and (m):

 

“(h) leases or
sub-leases entered into, as lessor, in the ordinary course of business, to the
extent they do not materially interfere with the business of Holdings, the
Borrower or any Subsidiary;

 

(i) the sale,
liquidation or other Disposition of Cash Equivalents in the ordinary course of
business for consideration consisting of cash or Cash Equivalents;

 

8

 

(j) Dispositions of
Property (other than Capital Stock of the Borrower) pursuant to an Investment
permitted by clause (i) of Section 8.8;

 

(k) Dispositions of
Property (other than Capital Stock of the Borrower or of any Subsidiary
Guarantor or Domestic Subsidiary) pursuant to an Investment permitted by clause
(j) of Section 8.8, valued at the fair market value of the Property
so disposed of;

 

(l) Dispositions of any
interest held by Holdings, the Borrower or any Subsidiary in any Italian
Concession Vehicle to another Italian Concession Vehicle in which Holdings, the
Borrower or any Subsidiary has (or, following such transfer, will have) an
interest at least equal to such interest being transferred; and

 

(m) Dispositions of
Property (other than (i) Capital Stock of the Borrower and (ii) less
than all the Capital Stock owned by the Group Members of any other Subsidiary
that is a Subsidiary Guarantor or Domestic Subsidiary or that is owned directly
by a Loan Party) pursuant to an Investment permitted by clause (k), (l), (n) or
(t) of Section 8.8, valued at the fair market value of the Property
so disposed of; provided that the aggregate fair market value of all
Property Disposed of pursuant to this clause (m) shall not exceed
$125,000,000 during the term of this Agreement; provided that such
aggregate fair market value may exceed $125,000,000 by an amount equal to the
amount then available for Dispositions pursuant to clause (e) of this Section 8.5,
which availability under such clause (e) shall be reduced by an amount
equal to the fair market value of the Property Disposed of pursuant to this
proviso.”

 

(s)  Section 8.8 of the Credit
Agreement is hereby amended by adding the following at the end of clause (j) thereof:

 

“provided  further
that solely for purposes of determining compliance with the limits set forth in
clause (i) of the foregoing proviso, the amount of any such Investment
made in a Non-Guarantor Subsidiary shall be excluded to the extent such
Investment is contributed or made, directly or indirectly, to an Italian
Concession Vehicle and used to fund or satisfy Italian Concession Obligations
or is otherwise used to fund or satisfy Italian Concession Obligations”.

 

(t)  Section 8.8 of the Credit
Agreement is hereby further amended by deleting the word “and” at the end of
clause (r) thereof, replacing the period at the end of clause (s) thereof
with a semicolon and the word “and”, and adding the following new clauses (t) and
(u):

 

“(t) Investments to
fund or satisfy any Italian Concession Obligations, including any Investment in
any Italian Concession Vehicle (or its equity holders or members) used by or on
behalf of any Italian Concession 

 

9

 

Vehicle (or its equity
holders or members) to fund or satisfy any Italian Concession Obligations; and

 

(u) Investments
consisting of any Disposition permitted by clause (l) of Section 8.5.”

 

(u)  Section 8.14 is hereby amended
by deleting the word “and” prior to clause (ii) thereof and replacing it
with a comma, and inserting the following immediately before the period at the
end thereof:

 

“, (iii) any
restrictions imposed by customary provisions in agreements entered into in the
ordinary course of business restricting the assignment thereof and (iv) any
customary restrictions imposed by any agreement governing Indebtedness
permitted by Section 8.2(h) or (n) if such restrictions apply
only to the Subsidiary incurring such Indebtedness or any of its Subsidiaries”.

 

(v)  The Credit Agreement is hereby
amended by adding a new Schedule 1.1(c) thereto as set forth in Annex A
attached hereto.

 

SECTION 2.  Representations and
Warranties.  Holdings
and the Borrower hereby represent and warrant on the Second Amendment Effective
Date (as defined below) to the Administrative Agent and each Lender that:

 

(a)  Each of the representations and
warranties made by any Loan Party in or pursuant to the Loan Documents is true
and correct on and as of the Second Amendment Effective Date, except to the
extent such representations and warranties relate to an earlier date, in which
case such representations and warranties shall be true and correct as of such
earlier date.

 

(b)  No Default or Event of Default has
occurred and is continuing.

 

SECTION 3.  Amendment Fees.  The Borrower agrees to pay to the
Administrative Agent for the account of each Lender that executes and delivers
a copy of this Amendment to the Administrative Agent (or its counsel) at or
prior to 5:00 p.m., New York City time, on September 25, 2009 (or
such other time or date on which the Administrative Agent and the Borrower
shall agree), an amendment fee (the “Amendment Fees”) in an amount equal
to 0.25% of the sum of (i) the aggregate principal amount of Term Loans of
such Lender and (ii) the Revolving Commitment (whether used or unused) of
such Lender as of such date; provided that the Borrower shall have no
liability for any such Amendment Fees if this Amendment does not become
effective in accordance with Section 4 below.  Such Amendment Fees shall be payable in
immediately available funds on, and subject to the occurrence of, the Second
Amendment Effective Date (as defined below).

 

SECTION 4.  Conditions Precedent.  This Amendment shall become effective as of
the date of the satisfaction of the following conditions precedent (the “Second
Amendment Effective Date”):

 

10

 

(a)  The Administrative Agent (or its
counsel) shall have received from each of Holdings, the Borrower and Lenders
constituting the Required Lenders either (i) a counterpart of this
Amendment signed on behalf of such party or (ii) written evidence
satisfactory to the Administrative Agent (which may include telecopy or other
electronic transmission of a signed signature page of this Amendment) that
such party has signed a counterpart of this Amendment.

 

(b)  The Administrative Agent shall have
received all fees and other amounts due and payable hereunder or under the
Credit Agreement on or prior to the Second Amendment Effective Date, including
the Amendment Fees and, to the extent invoiced, reimbursement or payment of all
reasonable out-of-pocket expenses (including, without limitation, the
reasonable fees, charges and disbursements of Cravath, Swaine & Moore
LLP, counsel for the Administrative Agent) required to be reimbursed or paid by
the Borrower hereunder or under any other Loan Document.

 

SECTION 5.  Credit Agreement.  Except as specifically stated herein, the
Credit Agreement shall continue in full force and effect in accordance with the
provisions thereof.

 

SECTION 6.  Miscellaneous.

 

(a)  This Amendment may be executed in
any number of counterparts, each of which when so executed shall be deemed an
original, but all such counterparts shall constitute one and the same
instrument.  Delivery of an executed
counterpart of a signature page of this Amendment by telecopy or
electronic transmission shall be effective as delivery of a manually executed
counterpart of this Amendment.

 

(b)  All references to the Credit
Agreement in the Loan Documents shall be deemed to include this Amendment.  This Amendment constitutes a Loan Document,

 

(c)  GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

(d)  WAIVERS OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM
THEREIN.

 

[The remainder of this page has been left blank intentionally.]

 

11

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed on their behalf and in their
respective corporate names by their duly authorized officers as of the date
first above written.

 

 

	
   

  	
  SCIENTIFIC
  GAMES INTERNATIONAL, INC., 

  
	
   

  	
  as
  Borrower,

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/
  Jeffrey S. Lipkin

  
	
   

  	
   

  	
  Name:
  Jeffrey S. Lipkin

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

12

 

	
   

  	
  SCIENTIFIC
  GAMES CORPORATION., 

  
	
   

  	
  as
  Holdings and a Guarantor,

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/
  Jeffrey S. Lipkin

  
	
   

  	
   

  	
  Name:
  Jeffrey S. Lipkin

  
	
   

  	
   

  	
  Title:
  Vice President and Chief Financial Officer

  

 

13

 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A., 

  
	
   

  	
  as
  Administrative Agent,

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/
  Ralph Totoonchie

  
	
   

  	
   

  	
  Name:
  Ralph Totoonchie

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

14

 

	
   

  	
  SIGNATURE
  PAGE TO AMENDMENT DATED AS OF SEPTEMBER 30, 2009, TO THE CREDIT AGREEMENT
  DATED AS OF JUNE 9, 2008, AMONG SCIENTIFIC GAMES INTERNATIONAL, INC.,
  SCIENTIFIC GAMES CORPORATION,, THE LENDERS PARTY THERETO, AND JPMORGAN CHASE
  BANK, N.A., AS ADMINISTRATIVE AGENT.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Institution:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

[This
Amendment was executed by authorized signatories of 34 Lenders.]

 

15exhibit10-3.htm

Spidex Technologies

P.O. Box 025207

#PTY 14675,

Miami, FL

 USA

September 29, 2009

Endeavor Explorations Inc.

980 Cooperage Way

Suite 601

Vancouver, British Columbia

Canada

V6B 0C3

 

Attention: Belkis Jimenez Rivero, President

Dear Ms. Jimenez Rivero:

Re:           Asset Acquisition Agreement – MDC GPS

This non-binding letter of intent sets out our understanding with respect to entering into a asset acquisition agreement (the “Agreement”) with Spidex Technologies (“Spidex”) and Endeavor Explorations Inc. (“Endeavor”) to acquire Spidex’s technology known as MDC GPS (the “Technology”).

We have represented to you that we are developing mobile data technology for smart phones and you have represented to us that you would like to acquire the Technology pursuant to the terms and conditions of a more formal agreement (the “Agreement”).

The terms and conditions of the Agreement will include, among others, the following:

	
(A)  
	
the consideration for the asset acquisition will be 1,000,000 restricted shares of the common stock of Endeavor at a deemed price of $0.10 per share, which will be issued or transferred to Spidex within 30 days from execution of the Agreement;

 

	
(B)  
	
Endeavor will advance Spidex US$5,000 within 10 days of the signing of this non-binding letter of intent;

 

	
(C)  
	
Endeavor will engage Spidex to further develop and commercialize the Technology and will pay Spidex US$12,000 per month for a period of one year;

 

	
(D)  
	
Endeavor will grant Spidex an unrestricted license to use and modify the Technology that will trigger in the case that Endeavor does not achieve sales at a reasonable commercial level within one year from the date that the Technology is ready for commercial sales; and

 

	
(E)  
	
subject to approval of Spidex, which approval will not be unreasonably withheld, Endeavor will have the right to assign it’s entire interest in the Technology subject to the following provisions:

 

	
a.  
	
if the assignment is for a combination of cash payment and royalties, Endeavor will be entitled to retain all cash payments and 50% of the royalty, provided that if the royalty being granted is less than 5% Spidex will be entitled to a minimum 2.5% royalty and Spidex will be entitled to the difference, if any;

 

	
b.  
	
if the assignment is for cash consideration only, with no royalty payable, Endeavor will be entitled to retain the first US$150,000 of the cash consideration to be paid, with 70% of the balance of the cash consideration payable to Endeavor and the remaining 30% payable to Spidex.

 

Any refusal of approval by Spidex will not be considered reasonable if the transaction that is the subject of the refusal is in accordance with internationally accepted standards for the licensing of technology similar to the Technology.

 

Page - 1

 

The parties agree forthwith upon execution of this letter to commence preparation of the Agreement that will be in a form acceptable to counsel for each of the parties and will be executed within 60 days of the date of this letter of intent.  Notwithstanding the non-binding nature of this letter Spidex agrees that it will be legally
bound not to negotiate with any other party or offer or seek to negotiate an agreement with any other party during the aforesaid 60 day period.

Please sign where indicated below to indicate your concurrence with our understanding.

Yours truly,

Spidex Technologies

Per:  /s/ Greg Corcoran

Greg Corcoran,

Proprietor

Agreed,

Endeavor Explorations Inc.

Per:  /s/ Belkis Jimenez Rivero

Belkis Jimenez Rivero,

President

 

 

Page - 2

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