Document:

Exhibit 10.4

 

EXECUTION VERSION

 

 

Dated      December 2012

 

 

Trust Deed

 

€500,000,000

3.500 per cent. Guaranteed Notes due 5 March 2020

 

 

between

 

 

Lottomatica Group S.p.A.

as Issuer

 

 

and

 

 

GTECH Corporation

GTECH Holdings Corporation

GTECH Rhode Island LLC

Invest Games S.A.

as Guarantors

 

 

and

 

 

BNY Mellon Corporate Trustee Services Limited

as Trustee

 

 

White & Case LLP

 

 

 

Table of Contents

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
DEFINITIONS AND INTERPRETATION
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
COVENANT TO REPAY
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
THE NOTES
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
GUARANTEES
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
COVENANT TO COMPLY WITH TRUST DEED AND SCHEDULES
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
COVENANTS BY THE ISSUER AND THE GUARANTORS
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
AMENDMENTS AND MODIFICATIONS
    	
 
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
ENFORCEMENT
    	
 
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
APPLICATION OF MONIES
    	
 
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
10.
    	
TERMS OF APPOINTMENT
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
11.
    	
COSTS AND EXPENSES
    	
 
    	
26
    
	
 
    	
 
    	
 
    	
 
    
	
12.
    	
APPOINTMENT AND RETIREMENT
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    
	
13.
    	
NOTICES
    	
 
    	
30
    
	
 
    	
 
    	
 
    	
 
    
	
14.
    	
NOTEHOLDERS’ REPRESENTATIVE
    	
 
    	
31
    
	
 
    	
 
    	
 
    	
 
    
	
15.
    	
FURTHER ISSUES
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
16.
    	
LAW AND JURISDICTION
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
17.
    	
SEVERABILITY
    	
 
    	
33
    
	
 
    	
 
    	
 
    	
 
    
	
18.
    	
CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
    	
 
    	
33
    
	
 
    	
 
    	
 
    	
 
    
	
19.
    	
COUNTERPARTS
    	
 
    	
33
    
	
 
    	
 
    	
 
    	
 
    
	
Schedule   1
    	
 
    	
34
    
	
Part A Form of Temporary   Global Note
    	
 
    	
34
    
	
Part B Form of Permanent   Global Note
    	
 
    	
45
    
	
 
    	
 
    	
 
    
	
Schedule   2
    	
 
    	
51
    
	
Part A Form of Definitive   Note
    	
 
    	
51
    
	
Part B Terms and Conditions of   the Notes
    	
 
    	
54
    
	
Part C Form of Coupon
    	
 
    	
75
    
	
 
    	
 
    	
 
    
	
Schedule   3 Provisions for Meetings of the Noteholders
    	
 
    	
76
    

 

i

 

THIS TRUST DEED is made on      December 2012

 

BETWEEN:

 

(1)                                 LOTTOMATICA GROUP S.p.A. (the “Issuer”);

 

(2)                                 GTECH CORPORATION, GTECH HOLDINGS CORPORATION, GTECH RHODE ISLAND LLC and INVEST GAMES S.A. (each a “Guarantor” and together, the “Guarantors”); and

 

(3)                                 BNY MELLON CORPORATE TRUSTEE SERVICES LIMITED (the “Trustee”, which expression includes, where the context admits, all persons for the time being the trustee or trustees of this Trust Deed).

 

WHEREAS:

 

(A)                               The Issuer has authorised the creation and issue of €500,000,000 in aggregate principal amount of 3.500 per cent. Guaranteed Notes due 5 March 2020 (the “Notes”) to be constituted under this Trust Deed.

 

(B)                               The Guarantors have authorised the giving of their guarantees (the “Guarantees”) in relation to the Notes.

 

(C)                               The Trustee has agreed to act as trustee of this Trust Deed on the following terms and conditions.

 

NOW THIS DEED WITNESSES AND IT IS HEREBY DECLARED as follows:

 

1.                                      DEFINITIONS AND INTERPRETATION

 

1.1                               Definitions

 

In this Trust Deed the following expressions have the following meanings:

 

“Agency Agreement” means the agreement appointing the initial Paying Agents and any other agreement for the time being in force appointing successor paying agents, together with any agreement for the time being in force amending or modifying with the prior written approval of the Trustee any of the aforesaid agreements;

 

“Appointee” means any delegate, agent, nominee or custodian appointed pursuant to the provisions of this Trust Deed;

 

“Auditors” means the auditors for the time being of the Issuer or, in the event of any of them being unable or unwilling to carry out any action requested of them pursuant to this Trust Deed, means such other firm of independent auditors as may be nominated in writing by the Trustee for the purpose;

 

“Authorised Signatory” means:

 

(a)                                 in relation to the Issuer, any director or any other person or persons notified in writing to the Trustee by any director as being an Authorised Signatory pursuant to Clause 6.2(h) (Chief Financial Officer and Authorised Signatories); and

 

(b)                                 in relation to any Guarantor, any director of such Guarantor or an officer (in the case of a Guarantor which is domiciled in the United States), or any other person or persons notified in writing to the Trustee by any director of such Guarantor as being an Authorised Signatory pursuant to Clause 6.2(h) (Chief Financial Officer and Authorised Signatories);

 

 

“Chief Financial Officer” means Chief Financial Officer of the Issuer notified to the Trustee pursuant to 6.2(h) (Chief Financial Officer and Authorised Signatories);

 

“Clearstream, Luxembourg” means Clearstream Banking, société anonyme;

 

“Conditions” means the terms and conditions set out in Part B of Schedule 2 (Terms and Conditions of the Notes) as from time to time modified in accordance with this Trust Deed and, with respect to any Notes represented by a Global Note, as modified by the provisions of the Global Note.  Any reference to a particularly numbered “Condition” shall be construed accordingly;

 

“Couponholder” means the holder of a Coupon;

 

“Coupons” means the bearer interest coupons in or substantially in the form set out in Part C of Schedule 2 (Form of Coupon) appertaining to the Notes and for the time being outstanding or as the context may require a specific number thereof and includes any replacement Coupons issued pursuant to Condition 10 (Replacement of Notes and Coupons);

 

“Euroclear” means Euroclear Bank S.A./N.V.;

 

“Eurosystem-eligible new Global Note” means a Global Note which is held in a manner which would allow Eurosystem eligibility, as stated in the applicable Conditions;

 

“Event of Default” means any one of the circumstances described in Condition 8 (Events of Default) but (in the case of the occurrence of any of the events mentioned in paragraphs (b) (Breach of other obligations), (d) (Unsatisfied judgment), (e) (Security enforced), (h) (Analogous event) (only in relation to the events referred to in paragraphs (d) and (e) of Condition 8 (Events of Default)), (i) (Failure to take action, etc.) or (j) (Unlawfulness) thereof and, in relation only to a Material Subsidiary (which is not a Guarantor), paragraphs (c) (Cross-default of Issuer, any Guarantor or any Material Subsidiary) or (g) (Winding up, etc.)) only if such event is, pursuant to the provisions of Condition 8 (Events of Default), certified by the Trustee in writing to be, in its opinion, materially prejudicial to the interests of Noteholders;

 

“Extraordinary Resolution” has the meaning set out in Schedule 3 (Provisions for Meetings of the Noteholders);

 

“Global Note(s)” mean the Temporary Global Note and Permanent Global Note, as the context may require, to be issued pursuant to Clause 3.1 (Global Notes);

 

“Liabilities” means any loss, damage, cost, charge, claim, demand, expense, judgment, action, proceeding or other liability whatsoever (including, without limitation, in respect of taxes, duties, levies, imposts and other charges) and including any value added tax or similar tax charged or chargeable in respect thereof and legal fees and expenses on a full indemnity basis;

 

“Material Subsidiary” has the meaning given to it in the Conditions;

 

“Noteholder” means the bearer of a Note, save that, for so long as any of the Notes is represented by a Global Note and such Global Note is held on behalf of Euroclear or Clearstream, Luxembourg or, in respect of any Note in definitive form held in an account with Euroclear or Clearstream, Luxembourg, each person (other than Clearstream, Luxembourg, if Clearstream, Luxembourg shall be an accountholder of Euroclear, and Euroclear, if Euroclear shall be an accountholder of Clearstream, Luxembourg) who is for the time being shown in the records of  Euroclear or Clearstream, Luxembourg as the holder of a particular principal amount of such Note shall be treated as the holder of that principal amount for all purposes (including but not limited to for the purposes of any quorum requirements of, or the right to demand a poll, meetings of the Noteholders and giving notice

 

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to the Issuer pursuant to Condition 8 (Events of Default) and Condition 5(c) (Redemption at the option of the Noteholder)) other than with respect to the payment of principal and interest on such Note, the right to which shall be vested, as against the Issuer, solely in the bearer thereof in accordance with and subject to its terms and the provisions of these presents; and the word “holder” and related expressions shall (where appropriate) be construed accordingly;

 

“Notes” means the bearer notes in the denomination of €100,000 each comprising the €500,000,000 3.500 per cent. Guaranteed Notes due 5 March 2020 constituted under this Trust Deed in or substantially in the form set out in Part A of Schedule 2 (Form of Definitive Note), and for the time being outstanding or, as the case may be, a specific number thereof and includes any replacement Notes issued pursuant to Condition 10 (Replacement of Notes and Coupons) and (except for the purposes of Clause 3.1 (Global Notes) and 3.3 (Signature)) the Global Note for so long as it has not been exchanged in accordance with the terms thereof;

 

“outstanding” means, in relation to the Notes, all the Notes other than:

 

(a)                                 those which have been redeemed in accordance with this Trust Deed and the Conditions;

 

(b)                                 those in respect of which the date for redemption has occurred in accordance with the Conditions and for which the redemption monies (including all interest accrued thereon to the date for such redemption) have been duly paid to the Trustee or the Principal Paying Agent in the manner provided for in the Agency Agreement (and, where appropriate, notice to that effect has been given to the Noteholders in accordance with Condition 15 (Notices)) and remain available for payment in accordance with the Conditions;

 

(c)                                  those which have been purchased and surrendered for cancellation as provided in Condition 5(g) (Cancellation) and written notice of the cancellation of which has been given to the Trustee;

 

(d)                                 those which have become void under Condition 9 (Prescription);

 

(e)                                  those mutilated or defaced Notes which have been surrendered or cancelled and in respect of which replacement Notes have been issued pursuant to Condition 10 (Replacement of Notes and Coupons);

 

(f)                                   (for the purpose only of ascertaining the amount of the Notes outstanding and without prejudice to the status for any other purpose of the relevant Notes) those Notes which are alleged to have been lost, stolen or destroyed and in respect of which replacements have been issued pursuant to Condition 10 (Replacement of Notes and Coupons); or

 

(g)                                  the Temporary Global Note to the extent that it shall have been exchanged for the Permanent Global Note pursuant to its provisions and the Permanent Global Note to the extent that it shall have been exchanged for definitive Notes pursuant to its provisions,

 

provided that for each of the following purposes, namely:

 

(i)                                     the determination of the right to attend and vote at any meeting of Noteholders for the purposes of Schedule 3 (Provisions for Meetings of the Noteholders) and the right to request the Trustee to take action pursuant to Clause 8 (Enforcement);

 

(ii)                                  the determination of how many and which Notes are for the time being outstanding for the purposes of Clauses 8.1 (Legal Proceedings) and 7.1

 

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(Waiver), the Conditions and Schedule 3 (Provisions for Meetings of the Noteholders);

 

(iii)                               the exercise of any discretion, power or authority, whether contained in this Trust Deed or provided by law, which the Trustee is required to exercise in or by reference to the interests of the Noteholders or any of them; and

 

(iv)                              the determination by the Trustee whether any event, circumstance, matter or thing, is in its opinion, materially prejudicial to the interests of the Noteholders or any of them,

 

those Notes (if any) which are for the time being held by any person (including but not limited to the Issuer, the Guarantors or any of their respective Subsidiaries) for the benefit of the Issuer, the Guarantors or any of their respective Subsidiaries shall (unless and until ceasing to be so held) be deemed not to remain outstanding;

 

“Paying Agents” means the several institutions (including, where the context permits, the Principal Paying Agent) at their respective Specified Offices initially appointed pursuant to the Agency Agreement and/or, if applicable, any Successor paying agents, at their respective Specified Offices;

 

“Permanent Global Note” means the Permanent Global Note to be issued pursuant to Clause 3.1 (Global Notes) in the form or substantially in the form set out in Part B of Schedule 1 (Form of Permanent Global Note);

 

“Permitted Restructuring” has the meaning given to it in the Conditions;

 

“Potential Event of Default” means an event or circumstance which could, with the giving of notice, lapse of time, the issuing of a certificate and/or fulfilment of any other requirement provided for in Condition 8 (Events of Default) become an Event of Default;

 

“Principal Paying Agent” means the institution at its Specified Office initially appointed as principal paying agent pursuant to the Agency Agreement or, if applicable, any Successor principal paying agent at its Specified Office;

 

“Put Event” has the meaning given to it in Condition 5(c) (Redemption at the option of the Noteholders);

 

“Repay” shall include “redeem” and vice versa and “repaid”, “repayable”, “repayment”, “redeemed”, “redeemable” and “redemption” shall be construed accordingly;

 

“Specified Office” means, in relation to any Paying Agent, either the office identified with its name in the Conditions or any other office notified to any relevant parties pursuant to the Agency Agreement;

 

“Subsidiary” has the meaning given to it in the Conditions;

 

“Substituted Obligor” has the meaning given to it in the Conditions;

 

“Successor” means, in relation to the Paying Agents, such other or further person, as may from time to time be appointed pursuant to the Agency Agreement as a Paying Agent and written notice of whose appointment is given to the Trustee and the Noteholders pursuant to Clause 6.1(k) (Change of Paying Agents);

 

“TARGET System” means the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET 2) System which was launched on 19 November 2007 or any successor thereto;

 

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“Temporary Global Note” means the Temporary Global Note to be issued pursuant to Clause 3.1 (Global Notes) in the form or substantially in the form set out in Part A of Schedule 1 (Form of Temporary Global Note);

 

“this Trust Deed” means this Trust Deed and the Schedules (as from time to time modified in accordance with the provisions contained herein) and (unless the context requires otherwise) includes any deed or other document executed in accordance with the provisions hereof (as from time to time modified as aforesaid) and expressed to be supplemental hereto; and

 

“Trustee Acts” means both the Trustee Act 1925 and the Trustee Act 2000 of England and Wales.

 

1.2                               Principles of interpretation

 

In this Trust Deed references to:

 

(a)                                 Statutory modification: a provision of any statute shall be deemed also to refer to any statutory modification or re-enactment thereof or any statutory instrument, order or regulation made thereunder or under such modification or re-enactment;

 

(b)                                 Additional amounts: principal and/or interest in respect of the Notes shall be deemed also to include references to any additional amounts which may be payable under Condition 7 (Taxation);

 

(c)                                  Tax: costs, charges or expenses shall include any value added tax or similar tax charged or chargeable in respect thereof;

 

(d)                                 Currency abbreviation: references to ‘€’ or ‘euro’ are to the single currency introduced at the start of the third stage of European Economic and Monetary Union pursuant to the Treaty establishing the European Community, as amended;

 

(e)                                  Enforcement of rights: an action, remedy or method of judicial proceedings for the enforcement of rights of creditors shall include, in respect of any jurisdiction other than England, references to such action, remedy or method of judicial proceedings for the enforcement of rights of creditors available or appropriate in such jurisdictions as shall most nearly approximate thereto;

 

(f)                                   Clauses and Schedules: a Schedule, a Clause or sub-clause, paragraph or sub-paragraph is, unless otherwise stated, to a schedule hereto or a clause or sub-clause, paragraph or sub-paragraph hereof respectively;

 

(g)                                  Principal: principal shall, when applicable, include premium;

 

(h)                                 Clearing systems: Euroclear and/or Clearstream, Luxembourg shall, wherever the context so admits, be deemed to include references to any additional or alternative clearing system approved by the Issuer, the Guarantors and the Trustee;

 

(i)                                     Trust Corporation: a trust corporation denotes a corporation entitled by rules made under the Public Trustee Act 1906 to act as a custodian trustee or entitled pursuant to any other legislation applicable to a trustee in any jurisdiction other than England to act as trustee and carry on trust business under the laws of the country of its incorporation; and

 

(j)                                    Gender: words denoting the masculine gender shall include the feminine gender also, words denoting individuals shall include companies, corporations and partnerships and words importing the singular number only shall include the plural and in each case vice versa.

 

5

 

1.3                               The Conditions

 

In this Trust Deed, unless the context requires or the same are otherwise defined, words and expressions defined in the Conditions and not otherwise defined herein shall have the same meaning in this Trust Deed.

 

1.4                               Headings

 

The headings and sub-headings are for ease of reference only and shall not affect the construction of this Trust Deed.

 

1.5                               The Schedules

 

The Schedules are part of this Trust Deed and shall have effect accordingly.

 

2.                                      COVENANT TO REPAY

 

2.1                               Covenant to repay

 

The Issuer covenants with the Trustee that it will, as and when the Notes or any of them become due to be redeemed or any principal on the Notes or any of them becomes due to be repaid in accordance with the Conditions, unconditionally pay or procure to be paid to or to the order of the Trustee in euro in a city in which banks have access to the TARGET System in same day freely transferable funds the principal amount of the Notes or any of them becoming due for redemption or repayment on that date and shall (subject to the provisions of the Conditions) until all such payments (both before and after judgment or other order) are duly made unconditionally pay or procure to be paid to or to the order of the Trustee as aforesaid on the dates and at the rates provided for in the Conditions interest on the principal amount of the Notes or any of them outstanding from time to time as set out in the Conditions provided that:

 

(a)                                 every payment of principal or interest in respect of the Notes or any of them made to the Principal Paying Agent in the manner provided in the Agency Agreement shall satisfy, to the extent of such payment, the relevant covenant by the Issuer contained in this Clause 2 (Covenant to Repay) except to the extent that there is default in the subsequent payment thereof to the Noteholders or Couponholders (as the case may be) in accordance with the Conditions;

 

(b)                                 if any payment of principal or interest in respect of the Notes or any of them is made after the due date, payment shall be deemed not to have been made until either the full amount is paid to the Noteholders or Couponholders (as the case may be) or, if earlier, the seventh day after notice has been given to the Noteholders or Couponholders (as the case may be) in accordance with the Conditions that the full amount has been received by the Principal Paying Agent or the Trustee except, in the case of payment to the Principal Paying Agent, to the extent that there is failure in the subsequent payment to the Noteholders or Couponholders (as the case may be) under the Conditions; and

 

(c)                                  in any case where payment of the whole or any part of the principal amount due in respect of any Note is improperly withheld or refused upon due presentation (if so provided for in the Conditions) of the Note, interest shall accrue on the whole or such part of such principal amount from the date of such withholding or refusal until the date either on which such principal amount due is paid to the Noteholders or, if earlier, the seventh day after which notice is given to the Noteholders in accordance with the Conditions that the full amount payable in respect of the said principal amount is available for collection by the Noteholders provided that on further due

 

6

 

presentation thereof (if so provided for in the Conditions) such payment is in fact made.

 

The Trustee will hold the benefit of this covenant and the covenant in Clause 5 (Covenant to comply with Trust Deed and Schedules) on trust for the Noteholders and Couponholders.

 

2.2                               Following an Event of Default

 

At any time after any Event of Default or Potential Event of Default shall have occurred, the Trustee may:

 

(a)                                 by notice in writing to the Issuer, the Guarantors, the Principal Paying Agent and the other Paying Agents require the Principal Paying Agent and the other Paying Agents or any of them:

 

(i)                                     to act thereafter, until otherwise instructed by the Trustee, as Paying Agents of the Trustee under the provisions of this Trust Deed and the Notes on the terms provided in the Agency Agreement (with consequential amendments as necessary and save that the Trustee’s liability under any provisions thereof for the indemnification, remuneration and payment of out-of-pocket expenses of the Paying Agents shall be limited to amounts for the time being held by the Trustee on the trusts of this Trust Deed in relation to the Notes on the terms of this Trust Deed and available to the Trustee for such purpose) and thereafter to hold all Notes and Coupons and all sums, documents and records held by them in respect of Notes and Coupons on behalf of the Trustee; and/or

 

(ii)                                  to deliver up all Notes and Coupons and all sums, documents and records held by them in respect of Notes and Coupons to the Trustee or as the Trustee shall direct in such notice provided that such notice shall be deemed not to apply to any document or record which the relevant Paying Agent is obliged not to release by any law or regulation; and

 

(b)                                 by notice in writing to the Issuer and the Guarantors require each of them to make all subsequent payments in respect of Notes and Coupons to or to the order of the Trustee and with effect from the issue of any such notice until such notice is withdrawn, sub-clause 2.1(a) of Clause 2.1 (Covenant to Repay) and (so far as it concerns payments by the Issuer or any Guarantor) Clause 9.4 (Payment to Noteholders and Couponholders) shall cease to have effect.

 

3.                                      THE NOTES

 

3.1                               Global Notes

 

(a)                                 The Notes will initially be represented by the Temporary Global Note in the principal amount of €500,000,000.  Interests in the Temporary Global Note shall be exchangeable, in accordance with its terms, for interests in the Permanent Global Note.

 

(b)                                 The Permanent Global Note shall be exchangeable, in accordance with its terms, for Notes in definitive form.

 

3.2                               The definitive Notes

 

The definitive Notes and the Coupons will be security printed in accordance with applicable legal and stock exchange requirements substantially in the form set out in Part A of Schedule 2 (Form of Definitive Note).  The definitive Notes will be endorsed with the Conditions.

 

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3.3                               Signature

 

The Global Notes, the Notes and the Coupons will be signed manually or in facsimile by an Authorised Signatory of the Issuer and, in the case of the Global Notes, will be authenticated manually by or on behalf of the Principal Paying Agent.  The Global Notes will be effectuated by the common safekeeper acting on the instructions of the Principal Paying Agent.  The Issuer may use the facsimile signature of a person who at the date of this Trust Deed is such a duly authorised person even if at the time of issue of any Notes and/or Coupons he is no longer so authorised.  Notes and Coupons so executed, authenticated (in the case of Notes) and effectuated (in the case of Global Notes) will be binding and valid obligations of the Issuer.

 

3.4                               Entitlement to treat holder as owner

 

The Issuer, the Guarantors, the Trustee and any Paying Agent may deem and treat the holder of any Note or of a particular principal amount of the Notes and the holder of any Coupon as the absolute owner of such Note, principal amount or Coupon, as the case may be (whether or not such Note, principal amount or Coupon shall be overdue and regardless of any notice of ownership, trust or interest therein, any writing thereon or any notice of previous loss or theft of such Note or Coupon) for all purposes and, except as ordered by a court of competent jurisdiction or as required by applicable law, the Issuer, the Guarantors, the Trustee and the Paying Agents shall not be affected by any notice to the contrary.  All payments made to any such holder shall be valid and, to the extent of the sums so paid, effective to satisfy and discharge the liability for the monies payable upon such Note, principal amount or Coupon, as the case may be.

 

4.                                      GUARANTEES

 

4.1                               Guarantee and Indemnity

 

Each Guarantor hereby absolutely, jointly and severally, unconditionally and irrevocably and, notwithstanding the release of any other guarantor or any other person under the terms of any composition or arrangement with any creditors of the Issuer, as a continuing obligation guarantees to the Trustee:

 

(a)                                 the payment of all sums expressed to be payable by the Issuer under this Trust Deed and the Agency Agreement or in respect of the Notes and Coupons, as and when the same becomes due and payable, whether at maturity, upon early redemption, upon acceleration or otherwise; and

 

(b)                                 the punctual performance by the Issuer of all of the Issuer’s obligations under the Notes and the Coupons, under this Trust Deed and the Agency Agreement,

 

in each case, according to the terms of the Notes and Coupons, this Trust Deed and the Agency Agreement.  In case of the failure of the Issuer to pay any such sum as and when the same shall become due and payable, each Guarantor hereby agrees to cause such payment to be made as and when the same becomes due and payable, whether at maturity, upon early redemption, upon acceleration or otherwise, as if such payment were made by the Issuer.  In case of the failure of the Issuer to perform any such other obligation as and when the same shall become due for performance, each Guarantor hereby agrees to use its best efforts to procure the performance of such other obligation as and when the same becomes due for performance.

 

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4.2                               Guarantors as principal debtors

 

Each Guarantor agrees, as an independent primary obligation, that it shall pay to the Trustee on demand sums sufficient to indemnify the Trustee and each Noteholder and Couponholder against any loss sustained by the Trustee or such Noteholder or Couponholder by reason of:

 

(a)                                 the non-payment as and when the same shall become due and payable of any sum expressed to be payable by the Issuer under this Trust Deed and the Agency Agreement or in respect of the Notes and Coupons; or

 

(b)                                 the non-performance as and when the same shall become due for performance of any other obligation expressed to be assumed by the Issuer in this Trust Deed or the Agency Agreement or in respect of the Notes and Coupons,

 

in each case, whether by reason of any of the obligations expressed to be assumed by the Issuer in this Trust Deed, the Agency Agreement or the Notes being or becoming void, voidable or unenforceable for any reason, whether or not known to the Trustee or such Noteholder or Couponholder or for any other reason whatsoever.

 

4.3                               Unconditional payment

 

If the Issuer defaults in the payment of any sum expressed to be payable by the Issuer under this Trust Deed or the Agency Agreement or in respect of the Notes or Coupons as and when the same shall become due and payable, the Guarantors shall within five Business Days of receipt of demand unconditionally pay or procure to be paid to or to the order of the Trustee in euro in a city in which banks have access to the TARGET System in immediately available freely transferable funds the amount in respect of which such default has been made; provided that every payment of such amount made by any Guarantor to the Principal Paying Agent in the manner provided in the Agency Agreement shall be deemed to cure pro tanto such default by the Issuer and shall be deemed for the purposes of this Clause 4 (Guarantees) to have been paid to or for the account of the Trustee except to the extent that there is failure in the subsequent payment of such amount to the Noteholders and Couponholders in accordance with the Conditions, and everything so paid by any Guarantor in accordance with the Agency Agreement shall have the same effect as if it had been paid thereunder by the Issuer.

 

4.4                               Unconditional obligation

 

Each Guarantor agrees that its obligations hereunder shall be unconditional, and that each Guarantor shall be fully liable irrespective of the validity, regularity, legality or enforceability of this Trust Deed, the Agency Agreement or any Note or Coupon, or any change in or amendment hereto or thereto, the absence of any action to enforce the same, any waiver, authorisation or consent by any Noteholder or Couponholder or by the Trustee with respect to any provision of this Trust Deed, the Agency Agreement or the Notes, the obtaining of any judgment against the Issuer or any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defence of a guarantor.

 

4.5                               Guarantors’ obligations continuing

 

Each Guarantor waives diligence, presentment, demand of payment, filing of claims with a court in the event of merger or bankruptcy of the Issuer, any right to require a proceeding first against the Issuer, protest or notice with respect to any Note or the indebtedness evidenced thereby and all demands whatsoever.  Each Guarantor agrees that the guarantee and indemnity contained in this Clause 4 (Guarantees) is a continuing guarantee and indemnity and shall remain in full force and effect until all amounts due as principal, interest or otherwise in respect of the Notes or Coupons or under this Trust Deed or the Agency Agreement shall have been paid in full and that it shall not be discharged by anything other than a complete performance of the obligations contained in this Trust Deed, the Agency Agreement and the Notes and Coupons.

 

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The Trustee may determine from time to time whether or not it will enforce this guarantee which it may do without making any demand or taking any proceedings against the Issuer and may from time to time make any arrangement or compromise with the Guarantors in relation to this guarantee which the Trustee may consider expedient in the interests of the Noteholders.

 

4.6                               Subrogation of Guarantors’ rights

 

Each Guarantor shall be subrogated to all rights of the Noteholders against the Issuer in respect of any amounts paid by such Guarantor pursuant hereto; provided that no Guarantor shall without the consent of the Trustee be entitled to enforce, or to receive any payments arising out of or based upon or prove in any insolvency or winding up of the Issuer in respect of, such right of subrogation until such time as the principal of and interest on all outstanding Notes and Coupons and all other amounts due under this Trust Deed, the Agency Agreement and the Notes and Coupons have been paid in full.  Furthermore, until such time as aforesaid, no Guarantor shall take any security or counter indemnity from the Issuer in respect of such Guarantor’s obligations under this Clause 4 (Guarantees).

 

4.7                               Repayment to the Issuer

 

If any payment received by the Trustee or the Principal Paying Agent pursuant to the provisions of this Trust Deed, the Agency Agreement or the Conditions shall, on the subsequent bankruptcy, insolvency, corporate reorganisation or other similar event affecting the Issuer, be avoided, reduced, invalidated or set aside under any laws relating to bankruptcy, insolvency, corporate reorganisation or other similar events, such payment shall not be considered as discharging or diminishing the liability of any Guarantor whether as guarantor, principal debtor or indemnifier and the guarantee and indemnity contained in this Clause 4 (Guarantees) shall continue to apply as if such payment had at all times remained owing by the Issuer and each Guarantor shall indemnify and keep indemnified the Trustee and the Noteholders on the terms of the guarantee and indemnity contained in this Clause 4 (Guarantees).

 

4.8                               Suspense account

 

Any amount received or recovered by the Trustee from the Guarantors in respect of any sum payable by the Issuer under this Trust Deed or the Notes or the Coupons may be placed in a suspense account and kept there for so long as the Trustee thinks fit.

 

Until all amounts which may be or become payable by the Issuer under this Trust Deed have been irrevocably paid in full, the Trustee may refrain from applying or enforcing any other monies, security or rights held or received by the Trustee in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and the Guarantors shall not be entitled to the benefit of the same.

 

4.9                               U.S. Guarantee Limitations

 

Each Guarantor organised or incorporated under the laws of any state of the United States of America or the District of Columbia confirms that it is the intention of all such persons that the obligations of each Guarantor organised or incorporated under the laws of any state of the United States of America or the District of Columbia under this Clause 4 (Guarantees) do not constitute a fraudulent transfer or conveyance for the purposes of any proceeding of the type referred to in Condition 8(f) (Insolvency, etc.) or Condition 8(g) (Winding up, etc.) or Title 11, U.S. Bankruptcy Code, the United States Uniform Fraudulent Conveyance Act, the United States Uniform Fraudulent Transfer Act or any similar foreign or state law, to the extent applicable to the obligations of such Guarantor under this Clause 4 (Guarantees).  To effect the foregoing intention, the Issuer, Trustee and each Guarantor hereby irrevocably agree that the obligations of each such Guarantor at any time shall be limited to the maximum amount as

 

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will result in the obligations of such Guarantor under this Clause 4 (Guarantees) not constituting a fraudulent transfer or conveyance.

 

5.                                      COVENANT TO COMPLY WITH TRUST DEED AND SCHEDULES

 

The Issuer and each Guarantor hereby covenants with the Trustee to comply with those provisions of this Trust Deed and the Conditions which are expressed to be binding on it and to perform and observe the same.  The Trustee shall be entitled to enforce the obligations of the Issuer under the Notes and the Coupons as if the same were set out and contained in the Trust Deed, which shall be read and construed as one document with the Notes and the Coupons.  The Notes and the Coupons are subject to the provisions contained in this Trust Deed, all of which shall be binding upon the Issuer, each Guarantor, the Noteholders and the Couponholders and all persons claiming through or under them respectively.

 

6.                                      COVENANTS BY THE ISSUER AND THE GUARANTORS

 

6.1                               The Issuer hereby covenants with the Trustee that, so long as any of the Notes remain outstanding, it will:

 

(a)                                 Business

 

at all times carry on business, and procure that all its Material Subsidiaries carry on business, in a proper and efficient manner;

 

(b)                                 Books of account

 

at all times keep and procure that all its Material Subsidiaries keep such books of account as may be necessary to comply with all applicable laws and so as to enable the consolidated financial statements of the Issuer to be prepared and allow the Trustee and any person appointed by it free access to the same at all reasonable times and to discuss the same with responsible officers of the Issuer, the Guarantors and the Material Subsidiaries;

 

(c)                                  Financial statements

 

send to the Trustee and to the Principal Paying Agent in the English language (a) as soon as the same become available and in any event no later than 30 days following the approval of its year-end consolidated financial statements by its shareholders, ten copies of its consolidated financial statements for such year, approved by its shareholders and audited by an internationally recognised firm of independent auditors; and (b) as soon as the same becomes available and in any event no later than 30 days following the approval of its six-monthly interim consolidated financial statements by its board of directors, ten copies of its consolidated financial statements for such six month period, approved by its board of directors and subject to a limited review by an internationally recognised firm of independent auditors together with copies of every report or other notice, statement or circular issued (or which under any legal or contractual obligation should be issued) to its members or holders of debentures or creditors (or any class of them) in their capacity as such at the time of the actual (or legally or contractually required) issue or publication thereof and procure that the same are made available for inspection by Noteholders and Couponholders at the Specified Offices of the Paying Agents as soon as practicable thereafter;

 

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(d)                                 Certificate in relation to Material Subsidiaries

 

give to the Trustee, as soon as reasonably practicable after the acquisition or disposal of any Subsidiary which thereby becomes or ceases to be a Material Subsidiary or after any transfer is made to any Subsidiary which thereby becomes a Material Subsidiary, a certificate by the Chief Financial Officer or two Authorised Signatories to such effect; such certificate shall, in the absence of manifest error, be conclusive and binding on the Issuer, the Guarantors, the Trustee and all Noteholders;

 

(e)                                  Notices to Noteholders

 

send or procure to be sent to the Trustee not less than three days prior to the date of publication, for the Trustee’s approval, one copy of each notice to be given to the Noteholders in accordance with the Conditions and not publish such notice without such approval and, upon publication, send to the Trustee two copies of such notice (such approval, unless so expressed, not to constitute approval of such notice for the purpose of Section 21 of the Financial Services and Markets Act 2000);

 

(f)                                   Notification of non-payment

 

use its reasonable endeavours to procure that the Principal Paying Agent notifies the Trustee in writing forthwith in the event that it does not, on or before the due date for payment in respect of the Notes or any of them or any of the Coupons, receive unconditionally the full amount in the relevant currency of the monies payable on such due date on all such Notes or Coupons, as the case may be;

 

(g)                                  Notification of late payment

 

in the event of the unconditional payment to the Principal Paying Agent or the Trustee of any sum due in respect of the Notes or any of them or any of the Coupons being made after the due date for payment thereof, forthwith give notice to the Noteholders that such payment has been made;

 

(h)                                 Notification of redemption or repayment

 

not less than the number of days specified in the relevant Condition prior to the redemption or repayment date in respect of any Note, give to the Trustee notice in writing of the amount of such redemption or repayment pursuant to the Conditions and duly proceed to redeem or repay such Note accordingly;

 

(i)                                     Notification of Put Event

 

promptly upon the Issuer becoming aware that a Put Event has occurred, the Issuer shall give notice of such event to the Noteholders in accordance with Condition 15 (Notices) specifying the nature of the Put Event and circumstances giving rise to it and the procedure for exercising the Put Option contained in Condition 5(c) (Redemption of the option of Noteholders).  Failure by the Issuer to give such notice shall not affect the rights of the Noteholders pursuant to Condition 5(c) (Redemption at the option of Noteholders);

 

(j)                                    Tax redemption

 

if the Issuer gives notice to the Trustee that it intends to redeem the Notes pursuant to Condition 5(b) (Redemption for tax reasons) the Issuer shall, prior to giving such notice to the Noteholders, provide such information to the Trustee as the Trustee requires in order to satisfy itself of the matters referred to in such Condition 5(b) (Redemption for tax reasons);

 

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(k)                                 Change of Paying Agents

 

give notice to the Noteholders and to the Trustee of any appointment, resignation or removal of any Paying Agent after having obtained the written approval of the Trustee thereto, or of any change of any Paying Agent’s Specified Office and at least 30 days prior to such event occurring, in each case subject to the terms of the Agency Agreement;

 

(l)                                     Obligations of Paying Agents

 

observe and comply with and perform all its obligations under the Agency Agreement, use all reasonable endeavours to procure that the Paying Agents observe, comply with and perform all their obligations under the Agency Agreement and notify the Trustee immediately if it becomes aware of any material breach of such obligations, or failure by a Paying Agent to comply with such obligations, in relation to the Notes or Coupons and not make any amendment or modification to such Agency Agreement without the prior written approval of the Trustee; and

 

(m)                             Listing

 

at all times use all reasonable endeavours to maintain the listing of the Notes on the official list of the Luxembourg Stock Exchange and maintain the trading of the Notes on the Euro MTF market of the Luxembourg Stock Exchange or, if it is unable to do so having used all reasonable endeavours or if the maintenance of such listing and/or trading is agreed by the Trustee to be unduly burdensome or impractical, use reasonable endeavours to obtain and maintain a quotation or listing of the Notes on such other stock exchange or exchanges and/or trading of the Notes on such other securities market or markets as the Issuer and the Guarantors may (with the approval of the Trustee, such approval not to be unreasonably withheld or delayed) decide and give notice of the identity of such other stock exchange or exchanges and/or securities market or markets to the Noteholders.

 

6.2                               Each of the Issuer and the Guarantors hereby covenants with the Trustee that, so long as any of the Notes remain outstanding it will:

 

(a)                                 Event of Default

 

give notice in writing to the Trustee forthwith upon becoming aware of any Event of Default or Potential Event of Default and without waiting for the Trustee to take any further action;

 

(b)                                 Certificate of compliance

 

provide to the Trustee within ten days of any request by the Trustee and at the time of the despatch to the Trustee of the Issuer’s year-end consolidated financial statements as provided for in Clause 6.1(c) (Financial statements), and in any event not later than 30 days following the approval of the year-end consolidated financial statements of the Issuer by its shareholders, a certificate in the English language signed by the Chief Financial Officer or two Authorised Signatories of the Issuer and two Authorised Signatories of the Guarantors certifying that up to a specified date not earlier than seven days prior to the date of such certificate (the “Certified Date”) the Issuer and the Guarantors have complied with all provisions relating to the Issuer and the Guarantors as specified under this Trust Deed and/or the Conditions (or, if such is not the case, giving details of the circumstances of such non-compliance) and that as at such date there did not exist nor had there existed at any time prior thereto since the Certified Date in respect of the previous such certificate (or, in the case of the first such certificate, since the date of this Trust Deed) any Event of Default or Potential Event of Default or other matter which would affect the Issuer’s or each Guarantor’s

 

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ability to perform its obligations under this Trust Deed or (if such is not the case) specifying the same;

 

(c)                                  Accounts in relation to Material Subsidiaries

 

ensure that such accounts are prepared as may be necessary to determine which Subsidiaries of the Issuer are Material Subsidiaries and procure that the Auditors prepare and deliver to the Trustee at the time of issue of every audited consolidated balance sheet of the Issuer and at any other time upon the request of the Trustee a certificate or report specifying the Material Subsidiaries at the date of such balance sheet or request;

 

(d)                                 Information

 

so far as permitted by applicable law, at all times give to the Trustee such information, opinions, certificates and other evidence as it shall require and in such form as it shall require (including, without limitation, the certificates called for by the Trustee pursuant to Clause 6.2(b) (Certificate of compliance) for the performance of its functions;

 

(e)                                  Notes held by Issuer, the Guarantors or any Subsidiary

 

send to the Trustee forthwith upon being so requested in writing by the Trustee a certificate of the Issuer or, as the case may be, the relevant Guarantor (in each case signed on their behalf by, with respect to the Issuer, the Chief Financial Officer or two Authorised Signatories, and, with respect to a Guarantor, two Authorised Signatories) setting out the total number of Notes which at the date of such certificate are held by or for the benefit of the Issuer, such Guarantor or any of their respective Subsidiaries;

 

(f)                                   Execution of further documents

 

so far as permitted by applicable law, at all times execute all such further documents and do all such further acts and things as may be necessary at any time or times in the opinion of the Trustee to give effect to the provisions of this Trust Deed;

 

(g)                                  Permitted Restructuring

 

(i)                                     in the event of a Permitted Restructuring whereby the Substituted Obligor assumes all the assets and liabilities of a Guarantor and assumes all the obligations of such Guarantor in respect of its Guarantee:

 

(A)                               on or prior to such Permitted Restructuring, ensure the Substituted Obligor enters into a supplemental deed in form and manner satisfactory to the Trustee agreeing to be bound by this Trust Deed and the Notes (with consequential amendments as the Trustee may deem appropriate) (the “Supplemental Deed”) as if such Substituted Obligor had been named in this Trust Deed and the Notes as a Guarantor,

 

(B)                               on or prior to such Permitted Restructuring, ensure the Substituted Obligor enters into a supplemental agreement in form and manner satisfactory to the Trustee and the Paying Agents agreeing to be bound by the Agency Agreement (with consequential amendments as the Paying Agents and the Trustee may deem appropriate) (the “Supplemental Agency Agreement”) as if such Substituted Obligor had been named in the Agency Agreement as a Guarantor,

 

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(C)                               where the Substituted Obligor is incorporated, domiciled or resident in, or subject generally to the taxing jurisdiction of, a territory other than  Republic of Italy, the United States or Luxembourg, ensure the Substituted Obligor provides undertakings or covenants in the Supplemental Deed in terms corresponding to the terms of Condition 7 (Taxation) with the substitution for (or, as the case may be, the addition to) the references therein to the Republic of Italy, the United States or Luxembourg, as the case may be, of references to that other or additional territory to whose taxing jurisdiction, or that of a political subdivision thereof or an authority therein or thereof having power to tax, such Guarantor is subject as aforesaid, the Supplemental Deed also, to the extent required, to modify Condition 7 (Taxation) so that such Condition 7 (Taxation) shall make reference to that other or additional territory or any political subdivision thereof or any authority therein or thereof having power to tax;

 

(D)                               ensure the Substituted Obligor provides the Trustee with a certificate signed by two directors, or authorised signatories of the Substituted Obligor (or other officers acceptable to the Trustee) addressed to the Trustee (with a form and content satisfactory to the Trustee) certifying that it is solvent both at the time the Permitted Restructuring takes place and immediately thereafter (which certificate the Trustee may rely upon absolutely) and, if so provided, the Trustee shall not be under any duty to have regard to the financial condition, profits or prospects of the Substituted Obligor or to compare the same with those of the relevant Guarantor;

 

(E)                                procure the delivery of a legal opinion as to English and any other relevant law, addressed to the Trustee, dated the date of the Supplemental Deed and in a form acceptable to the Trustee from legal advisers acceptable to the Trustee as to the enforceability of the guarantee to be given by the Substituted Obligor and all other obligations assumed by it under the Supplemental Deed and Supplemental Agency Agreement;

 

(F)                                 prior to the date of the Permitted Restructuring, procure the delivery of a legal opinion as to English and any other relevant law, addressed to the Trustee, dated the date of the Permitted Restructuring confirming that (1) all the assets and liabilities of the relevant Guarantor have been assumed by the Substituted Obligor, and (2) all the obligations of the relevant Guarantor in respect of its Guarantee have been assumed by the Substituted Obligor, and in a form acceptable to the Trustee from legal advisers acceptable to the Trustee; and

 

(G)                               comply with, and ensure the Substituted Obligor complies with, all other requirements as the Trustee may direct in the interests of the Noteholders.

 

(ii)                                  In the event of a Permitted Restructuring whereby the Substituted Obligor assumes all the assets and liabilities of a Material Subsidiary and becomes a Material Subsidiary:

 

(A)                               prior to the date of the Permitted Restructuring, procure the delivery of a legal opinion as to English and any other relevant law, addressed to the Trustee, dated the date of the Permitted Restructuring

 

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confirming that all the assets and liabilities of the relevant Material Subsidiary have been assumed by the Substituted Obligor and in a form acceptable to the Trustee from legal advisers acceptable to the Trustee;

 

(B)                               comply with, and ensure the Substituted Obligor complies with, all other requirements as the Trustee may direct in the interests of the Noteholders; and

 

(C)                               give to the Trustee, as soon as reasonably practicable after the Permitted Restructuring involving any Subsidiary which thereby becomes or ceases to be a Material Subsidiary, a certificate by the Chief Financial Officer or two Authorised Signatories of the Issuer to such effect; such certificate shall, in the absence of manifest error, be conclusive and binding on the Issuer, the Guarantors, the Trustee and all Noteholders.

 

(h)                                 Chief Financial Officer and Authorised Signatories

 

upon the execution hereof and thereafter forthwith upon any change of the same, deliver to the Trustee (with a copy to the Principal Paying Agent) the name of the Chief Financial Officer and a list of the Authorised Signatories of the Issuer or, as the case may be, the Guarantors, together with certified specimen signatures of the same;

 

(i)                                     Payments

 

pay monies payable by it to the Trustee hereunder without set off, counterclaim, deduction or withholding, unless otherwise compelled by law and in the event of any deduction or withholding compelled by law pay such additional amount as will result in the payment to the Trustee of the amount which would otherwise have been payable by it to the Trustee hereunder;

 

(j)                                    Changes in the Issuer’s or Guarantors’ by-laws

 

give notice in writing to the Trustee forthwith of any amendment made to its by-laws since the date hereof which may in any way affect the provisions of Schedule 3 (Provisions for Meetings of the Noteholders) and provide the Trustee upon request with a copy of its current by-laws in force;

 

(k)                                 Information relating to the Issuer’s or Guarantors’ by-laws

 

provide the Trustee promptly upon request with such information regarding its by-laws as it may request including without limitation informing the Trustee of the applicable number of days required for the purposes of the definition of “Block Voting Instruction” and “Voting Certificate” (both as defined in Schedule 3 (Provisions for Meetings of the Noteholders)) and paragraphs 2 and 6 of Schedule 3 (Provisions for Meetings of the Noteholders), as well as details of the relevant newspaper for the purposes of publishing notices for any Meeting (as defined in Schedule 3 (Provisions for Meetings of the Noteholders));

 

(l)                                     Translation of documents for Meetings

 

fourteen days before any Meeting (as defined in Schedule 3 (Provisions for Meetings of the Noteholders)) confirm to the Trustee, as to whether any law requires the translation into Italian of any Block Voting Instruction, Voting Certificate or any other document in relation to Schedule 3 (Provisions for Meetings of the Noteholders);

 

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(m)                             Changes to the laws of the Republic of Italy

 

give notice in writing to the Trustee forthwith in the event of any amendment to the laws, rules and regulations of the Republic of Italy applicable to the provisions for Meetings of the Noteholders as set out in Schedule 3 (Provisions for Meetings of the Noteholders); and

 

(n)                                 Certificate as to Proxies

 

prior to any Meeting provide the Trustee with a certificate signed by the Chief Financial Officer or two Authorised Signatories of the Issuer confirming (a) its outstanding share capital as at that date and (b) the corresponding maximum number of Noteholders on whose behalf a single Proxy (as defined in Schedule 3 (Provisions for Meetings of the Noteholders)) may attend or vote at such Meeting under Article 2372 of the Italian Civil Code or any other applicable Italian law or regulation.

 

7.                                      AMENDMENTS AND MODIFICATIONS

 

7.1                               Waiver

 

The Trustee may, without any consent or sanction of the Noteholders or Couponholders and without prejudice to its rights in respect of any subsequent breach, condition, event or act, from time to time and at any time, but only if and in so far as in its opinion the interests of the Noteholders shall not be materially prejudiced thereby, authorise or waive, on such terms and conditions (if any) as shall seem expedient to it, any breach or proposed breach of any of the covenants or provisions contained in this Trust Deed, the Agency Agreement, or the Notes or Coupons or determine that any Event of Default or Potential Event of Default shall not be treated as such for the purposes of this Trust Deed; any such authorisation, waiver or determination shall be binding on the Noteholders, the Couponholders and, unless the Trustee otherwise agrees, the Issuer shall cause such authorisation, waiver or determination to be notified to the Noteholders as soon as practicable thereafter in accordance with Condition 15 (Notices) relating thereto; provided that the Trustee shall not exercise any powers conferred upon it by this Clause 7.1 (Waiver) in contravention of any express direction by an Extraordinary Resolution or of a request in writing made by the holders of not less than 25 per cent. in aggregate principal amount of the Notes then outstanding (but so that no such direction or request shall affect any authorisation, waiver or determination previously given or made) or so as to authorise or waive any such breach or proposed breach relating to any of the matters the subject of the Reserved Matters as specified and defined in Schedule 3 (Provisions for Meetings of the Noteholders) or other matters pursuant to Article 2415 paragraph 13 of the Italian Civil Code.

 

7.2                               Modifications

 

The Trustee may from time to time and at any time without any consent or sanction of the Noteholders or Couponholders agree to (a) any modification to this Trust Deed (other than in respect of Reserved Matters as specified and defined in Schedule 3 (Provisions for Meetings of the Noteholders) or other matters pursuant to Article 2415 paragraph 13 of the Italian Civil Code or any provision of this Trust Deed referred to in that specification), the Notes or the Agency Agreement which in the opinion of the Trustee it may be proper to make provided the Trustee is of the opinion that such modification will not be materially prejudicial to the interests of the Noteholders or (b) any modification to this Trust Deed, the Notes or the Agency Agreement if in the opinion of the Trustee such modification is of a formal, minor or technical nature or made to correct a manifest or proven error.  Any such modification shall be binding on the Noteholders and the Couponholders and, unless the Trustee otherwise agrees, the Issuer shall cause such modification to be notified to the Noteholders as soon as practicable thereafter in accordance with the Conditions.

 

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8.                                      ENFORCEMENT

 

8.1                               Legal proceedings

 

Subject to any mandatory provisions of applicable law, the Trustee may at any time, at its discretion and without further notice, institute such proceedings against the Issuer and the Guarantors as it may think fit to recover any amounts due in respect of the Notes which are unpaid or to enforce any of its rights under this Trust Deed or the Conditions but it shall not be bound to take any such proceedings or any other action under this Trust Deed or the Notes unless (a) it shall have been so directed by an Extraordinary Resolution or so requested in writing by the holders of at least one-quarter in principal amount of the outstanding Notes and (b) it shall have been indemnified, secured and/or prefunded to its satisfaction against all Liabilities to which it may thereby become liable and which may be incurred by it in connection therewith and provided that the Trustee shall not be held liable for the consequence of taking any such action and may take such action without having regard to the effect of such action on individual Noteholders or Couponholders.  Save for rights and duties of the Noteholders’ Representative under Article 2418 of the Italian Civil Code and the right of each Noteholder or Couponholder under Article 2419 of the Italian Civil Code, only the Trustee may enforce the provisions of the Notes or this Trust Deed and no Noteholder or Couponholder shall be entitled to proceed directly against the Issuer or any Guarantor unless the Trustee, having become bound so to proceed, fails to do so within a reasonable time and such failure is continuing.

 

8.2                               Evidence of default

 

If the Trustee (or any Noteholder or Couponholder where entitled under this Trust Deed so to do) makes any claim, institutes any legal proceeding or lodges any proof in a winding-up or insolvency of the Issuer or any Guarantor under this Trust Deed or under the Notes, proof therein that:

 

(a)                                 as regards any specified Note the Issuer has made default in paying any principal due in respect of such Note shall (unless the contrary be proved) be sufficient evidence that the Issuer has made the like default as regards all other Notes in respect of which a corresponding payment is then due; and

 

(b)                                 as regards any specified Coupon the Issuer has made default in paying any interest due in respect of such Coupon shall (unless the contrary be proved) be sufficient evidence that the Issuer has made the like default as regards all other Coupons in respect of which a corresponding payment is then due.

 

9.                                      APPLICATION OF MONIES

 

9.1                               Application of monies

 

All monies received by the Trustee in respect of the Notes or amounts payable under this Trust Deed will despite any appropriation of all or part of them by the Issuer or the Guarantors (including any monies which represent principal or interest in respect of Notes or Coupons which have become void under the Conditions) be held by the Trustee on trust to apply them (subject to Clause 9.2 (Investment of monies)):

 

(a)                                 first, in payment or satisfaction of the Liabilities incurred by the Trustee in the preparation and execution of the trusts of this Trust Deed (including remuneration of the Trustee);

 

(b)                                 secondly, in or towards payment pari passu and rateably of all arrears of interest remaining unpaid in respect of the Notes and all principal monies due on or in respect of the Notes; and

 

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(c)                                  thirdly, the balance (if any) in payment to the Issuer or, if such monies were received from a Guarantor, such Guarantor.

 

If the Trustee holds any monies in respect of Notes and/or Coupons which have become void or in respect of which claims have become prescribed, the Trustee will hold them on these trusts.

 

9.2                               Investment of monies

 

If the amount of the monies at any time available for payment of principal and interest in respect of the Notes under Clause 9.1 (Application of monies) shall be less than a sum sufficient to pay at least one-tenth of the principal amount of the Notes then outstanding, the Trustee may, at its discretion, invest such monies in one or more of the investments authorised herein with power from time to time, with like discretion, to vary such investments; and such investment(s) with the resulting income thereof may be accumulated until the accumulations together with any other funds for the time being under the control of the Trustee and available for the purpose shall amount to a sum sufficient to pay at least one-tenth of the principal amount of the Notes then outstanding and such accumulation and funds (after deduction of any taxes and any other deductibles applicable thereto) shall then be applied in the manner aforesaid.

 

9.3                               Authorised investments

 

Any monies which under this Trust Deed may be invested by the Trustee may be invested in the name or under the control of the Trustee in any of the investments for the time being authorised by English law for the investment by trustees of trust monies or in any other investments, whether similar to those aforesaid or not, which may be selected by the Trustee or by placing the same on deposit in the name or under the control of the Trustee with such bank or other financial institution as the Trustee may think fit and in such currency as the Trustee in its absolute discretion may determine and the Trustee may at any time vary or transfer any of such investments for or into other such investments or convert any monies so deposited into any other currency and shall not be responsible for any Liability occasioned by reason of any such investments or such deposit whether by depreciation in value, fluctuation in exchange rates or otherwise.

 

9.4                               Payment to Noteholders and Couponholders

 

The Trustee shall give notice to the Noteholders in accordance with the Conditions of the date fixed for any payment under Clause 9.1 (Application of monies).  Any payment to be made in respect of the Notes or the Coupons by the Issuer, any Guarantor or the Trustee may be made in the manner provided in the Conditions, the Agency Agreement and this Trust Deed and any payment so made shall be a good discharge to the extent of such payment, by the Issuer, such Guarantor or the Trustee, as the case may be.  Any payment in full of interest made in respect of a Coupon in the manner aforesaid shall extinguish any claim of a Noteholder which may arise directly or indirectly in respect of such interest.

 

9.5                               Production of Notes and Coupons

 

Upon any payment under Clause 9.4 (Payment to Noteholders and Couponholders) of principal or interest, the Note or Coupon in respect of which such payment is made shall, if the Trustee so requires, be produced to the Trustee or the Paying Agent by or through whom such payment is made and the Trustee shall, in the case of part payment, enface or cause such Paying Agent to enface a memorandum of the amount and date of payment thereon or, in the case of payment in full, shall cause such Note or Coupon to be surrendered or shall cancel or procure the same to be cancelled and shall certify or procure the certification of such cancellation.

 

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9.6                               Noteholders to be treated as holding all Coupons

 

Wherever in this Trust Deed the Trustee is required or entitled to exercise a power, trust, authority or discretion under this Trust Deed, the Trustee shall, notwithstanding that it may have express notice to the contrary, assume that each Noteholder is the holder of all Coupons appertaining to each Note of which he is the holder.

 

10.                               TERMS OF APPOINTMENT

 

By way of supplement to the Trustee Acts, it is expressly declared as follows:

 

10.1                        Reliance on information

 

(a)                                 Advice: the Trustee may in relation to this Trust Deed act on the opinion or advice of or a certificate or any information obtained from any lawyer, banker, valuer, surveyor, broker, auctioneer, accountant or other expert (whether obtained by the Trustee, the Issuer, any Guarantor, any Subsidiary or any Paying Agent) and which advice or opinion may be provided on such terms (including as to limitations on liability) as the Trustee may consider in its sole discretion to be consistent with prevailing market practice with regard to advice or opinions of that nature and shall not be responsible for any Liability occasioned by so acting; any such opinion, advice, certificate or information may be sent or obtained by letter, telegram, telex, cablegram or facsimile transmission and the Trustee shall not be liable for acting on any opinion, advice, certificate or information so conveyed although the same shall contain some error or shall not be authentic;

 

(b)                                 Certificate of directors or Authorised Signatories: the Trustee may call for and shall be at liberty to accept a certificate signed by (i) in the case of the Issuer, the Chief Financial Officer or two Authorised Signatories of the Issuer, (ii) in the case of a Guarantor, two Authorised Signatories of the relevant Guarantor, or (iii) other person duly authorised on the Issuer’s or such Guarantor’s, as the case may be, behalf as to any fact or matter prima facie within the knowledge of the Issuer or the relevant Guarantor as sufficient evidence thereof and a like certificate to the effect that any particular dealing, transaction or step or thing is, in the opinion of the person so certifying, expedient as sufficient evidence that it is expedient and the Trustee shall not be bound in any such case to call for further evidence or be responsible for any Liability that may be occasioned by its failing so to do;

 

(c)                                  Reliance on Auditors’ reports: the Trustee may act, or not act, and rely on (and shall have no liability to Noteholders or Couponholders for doing so) certificates or reports provided by the Auditors whether or not addressed to the Trustee and whether or not any such report or any engagement letter or other document entered into by the Trustee and the Auditors in connection therewith contains any limit on the liability of the Auditors (whether by reference to a monetary cap or by reference to the methodology to be employed in producing the same);

 

(d)                                 Resolution or direction of Noteholders: the Trustee shall not be responsible for acting upon any resolution purporting to have been passed at any meeting of the Noteholders in respect whereof minutes have been made and signed or a direction of a specified percentage of Noteholders, even though it may subsequently be found that there was some defect in the constitution of the meeting or the passing of the resolution or the making of the directions or that for any reason the resolution purporting to have been passed at any Meeting or the making of the directions was not valid or binding upon the Noteholders and Couponholders;

 

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(e)                                  Reliance on certification of clearing system: the Trustee may call for and shall be at liberty to accept and place full reliance on as sufficient evidence thereof and shall not be liable to the Issuer, the Guarantors or any Noteholder by reason only of either having accepted as valid or not having rejected an original certificate or letter of confirmation purporting to be signed on behalf of Euroclear, Clearstream, Luxembourg or any other relevant clearing system in relation to any matter;

 

(f)                                   Noteholders as a class: whenever in this Trust Deed the Trustee is required in connection with any exercise of its powers, trusts, authorities or discretions to have regard to the interests of the Noteholders, it shall have regard to the interests of the Noteholders as a class and in particular, but without prejudice to the generality of the foregoing, shall not be obliged to have regard to the consequences of such exercise for any individual Noteholder resulting from his or its being for any purpose domiciled or resident in, or otherwise connected with, or subject to the jurisdiction of, any particular territory;

 

(g)                                  Trustee not responsible for investigations: the Trustee shall not be responsible for, or for investigating any matter which is the subject of, any recital, statement, representation, warranty or covenant of any person contained in this Trust Deed, the Notes, or any other agreement or document relating to the transactions herein or therein contemplated or for the execution, legality, effectiveness, adequacy, genuineness, validity, enforceability or admissibility in evidence thereof;

 

(h)                                 No Liability as a result of the delivery of a certificate: the Trustee shall have no liability whatsoever for any Liability directly or indirectly suffered or incurred by the Issuer, any Guarantor, any Noteholder, Couponholder or any other person as a result of the delivery by the Trustee to the Issuer of a certificate as to material prejudice pursuant to Condition 8 (Events of Default) on the basis of an opinion formed by it in good faith;

 

(i)                                     No obligation to monitor: the Trustee shall be under no obligation to monitor or supervise the functions of any other person under the Trust Deed, Agency Agreement, Notes or Coupons or any other agreement or document relating to the transactions herein or therein contemplated and shall be entitled, in the absence of actual knowledge of a breach of obligation, to assume that each such person is properly performing and complying with its obligations;

 

(j)                                    Notes held by the Issuer: in the absence of knowledge or express notice to the contrary, the Trustee may assume without enquiry (other than requesting a certificate of the Issuer or the relevant Guarantor, as the case may be, under Clause 6.2(e) (Notes held by Issuer, the Guarantors or any Subsidiary)), that no Notes are for the time being held by or for the benefit of the Issuer, such Guarantor or their respective Subsidiaries;

 

(k)                                 Forged Notes: the Trustee shall not be liable to the Issuer, any Guarantor or any Noteholder or Couponholder by reason of having accepted as valid or not having rejected any Note or Coupon as such and subsequently found to be forged, not authentic or not effectuated;

 

(l)                                     Events of Default and Put Events: the Trustee shall not be bound to give notice to any person of the execution of this Trust Deed or to take any steps to ascertain whether any Event of Default, Potential Event of Default or Put Event has happened and, until it shall have actual knowledge or express notice to the contrary, the Trustee shall be entitled to assume that no such Event of Default, Potential Event of Default or Put Event has happened and that each of the Issuer and each Guarantor is observing and performing all the obligations on its part contained in the Notes and

 

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Coupons and under this Trust Deed and the Agency Agreement and no event has happened as a consequence of which any of the Notes may become repayable;

 

(m)                             Right to deduct or withhold: notwithstanding anything contained in this Trust Deed, to the extent required by any applicable law, if the Trustee is or will be required to make any deduction or withholding from any distribution or payment made by it hereunder or if the Trustee is or will be otherwise charged to, or is or may become liable to, tax as a consequence of performing its duties hereunder whether as principal, agent or otherwise, and whether by reason of any assessment, prospective assessment or other imposition of liability to taxation of whatsoever nature and whensoever made upon the Trustee, and whether in connection with or arising from any sums received or distributed by it or to which it may be entitled under this Trust Deed (other than in connection with its remuneration as provided for herein) or any investments or deposits from time to time representing the same, including any income or gains arising therefrom or any action of the Trustee in connection with the trusts of this Trust Deed (other than the remuneration herein specified) or otherwise, then the Trustee shall be entitled to make such deduction or withholding or, as the case may be, to retain out of sums received by it an amount sufficient to discharge any liability to tax which relates to sums so received or distributed or to discharge any such other liability of the Trustee to tax from the funds held by the Trustee upon the trusts of this Trust Deed; and

 

(n)                                 Evidence of interests in Eurosystem-eligible new Global Notes:  the Issuer and the Trustee may call for and place full reliance on any certificate, statement or other document to be issued by Euroclear and/or Clearstream, Luxembourg as to the principal amount of Notes represented by a Global Note and any such certificate, statement or other document shall be conclusive and binding for all purposes.  The Trustee and the Issuer shall not be liable to any person by reason of having accepted as valid or not having rejected any certificate, statement or other document to such effect purporting to be issued by Euroclear or Clearstream, Luxembourg and subsequently found to be forged or not authentic.

 

10.2                        Trustee’s reliance on information in relation to Meetings

 

(a)                                 Certificate of directors and other information in relation to Meetings: the Trustee may rely without further investigation on (i) a certificate of (x) in the case of the Issuer, the Chief Financial Officer or two Authorised Signatories and (y) in the case of a Guarantor, two Authorised Signatories and /or (ii) the confirmation, opinion, certificate, advice or any other information obtained from any lawyer, consultant or other expert the Trustee deems appropriate regarding any matter governing the procedure for calling and holding a Meeting (as defined in Schedule 3 (Provisions for Meetings of the Noteholders)) including without limitation whether a Noteholders’ Representative (rappresentante comune) has been appointed by court order (on request of the Issuer or the Noteholders) or by resolution of the Noteholders (as provided in Condition 12(a) (Meetings of Noteholders) and whether the individual or entity selected to act as the Noteholders’ Representative falls into any of the disqualified categories (including, without limitation, directors and statutory auditors) pursuant to Article 2417(1) of the Italian Civil Code;

 

(b)                                 Advice in relation to Meetings: the Trustee shall be entitled at any time to obtain and rely on such legal advice as it may deem necessary in respect of all applicable Italian laws and regulations governing the procedure for calling and holding any Meeting (as defined in Schedule 3 (Provisions for Meetings of the Noteholders)) and the Trustee shall not be responsible for any delay occasioned in obtaining such advice; and all proper costs and expenses incurred for such legal advice shall be

 

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borne by the Issuer (or, failing which, the Guarantors) upon receipt of proper evidence thereof; and

 

(c)                                  Procedures for Meetings: in the absence of written notification, the Trustee shall be entitled to assume without liability, that no amendments have been made to any applicable laws or regulations or the by-laws of the Issuer which may affect the governing of the procedure for calling and holding Meetings (as defined in Schedule 3 (Provisions for Meetings of the Noteholders)) as set out in Schedule 3 (Provisions for Meetings of the Noteholders).

 

10.3                        Trustee’s powers and duties

 

(a)                                 Trustee’s determination: the Trustee may determine whether or not a default in the performance or observance by the Issuer or any Guarantor of any obligation under the provisions of this Trust Deed or contained in the Notes or Coupons is capable of remedy and/or materially prejudicial to the interests of the Noteholders and if the Trustee shall certify that any such default is, in its opinion, not capable of remedy and/or materially prejudicial to the interests of the Noteholders, such certificate shall be conclusive and binding upon the Issuer, the Guarantors and the Noteholders and Couponholders;

 

(b)                                 Determination of questions: the Trustee as between itself and the Noteholders and the Couponholders shall have full power to determine all questions and doubts arising in relation to any of the provisions of this Trust Deed and every such determination, whether made upon a question actually raised or implied in the acts or proceedings of the Trustee, shall be conclusive and shall bind the Trustee, the Noteholders and the Couponholders;

 

(c)                                  Trustee’s discretion: the Trustee shall (save as expressly otherwise provided herein) as regards all the trusts, powers, authorities and discretions vested in it by this Trust Deed or by operation of law, have absolute and uncontrolled discretion as to the exercise or non-exercise thereof and the Trustee shall not be responsible for any Liability that may result from the exercise or non-exercise thereof but whenever the Trustee is under the provisions of this Trust Deed bound to act at the request or direction of the Noteholders, the Trustee shall nevertheless not be so bound unless first indemnified and/or provided with security and/or prefunded to its satisfaction against all actions, proceedings, claims and demands to which it may render itself liable and all costs, charges, damages, expenses and liabilities which it may incur by so doing.  Without limiting the general statement above, the Trustee may refrain from taking any action in any jurisdiction if the taking of such action in that jurisdiction would, in its opinion based upon legal advice in the relevant jurisdiction, be contrary to any law of that jurisdiction or, to the extent applicable, of England.  Furthermore, the Trustee may also refrain from taking such action if it would otherwise render it liable to any person in that jurisdiction or England or if, in its opinion based upon such legal advice, it would not have the power to do the relevant thing in that jurisdiction by virtue of any applicable law in that jurisdiction or in England or if it is determined by any court or other competent authority in that jurisdiction or in England that it does not have such power;

 

(d)                                 Trustee’s consent: any consent given by the Trustee for the purposes of this Trust Deed may be given on such terms and subject to such conditions (if any) as the Trustee may require;

 

(e)                                  Conversion of currency: where it is necessary or desirable for any purpose in connection with this Trust Deed to convert any sum from one currency to another it shall (unless otherwise provided by this Trust Deed or required by law) be converted at such rate or rates, in accordance with such method and as at such date for the

 

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determination of such rate of exchange, as may be specified by the Trustee in its absolute discretion as relevant and any rate, method and date so specified shall be binding on the Issuer, the Guarantors, the Noteholders and the Couponholders;

 

(f)                                   Application of proceeds: the Trustee shall not be responsible for the receipt or application by the Issuer of the proceeds of the issue of the Notes, the exchange of any Temporary Global Note for any Permanent Global Note or any Permanent Global Note for definitive Notes or the delivery of any Note or Coupon to the persons entitled to them;

 

(g)                                  Error of judgment: the Trustee shall not be liable for any error of judgment made in good faith by any officer or employee of the Trustee assigned by the Trustee to administer its corporate trust matters;

 

(h)                                 Agents: the Trustee may, in the conduct of the trusts of this Trust Deed instead of acting personally, employ and pay an agent on any terms, whether or not a lawyer or other professional person, to transact or conduct, or concur in transacting or conducting, any business and to do or concur in doing all acts required to be done by the Trustee (including the receipt and payment of money) and the Trustee shall not be responsible for any Liability incurred by reason of the misconduct, omission or default on the part of any person appointed by it hereunder or be bound to supervise the proceedings or acts of any such person;

 

(i)                                     Delegation: the Trustee may, in the execution and exercise of all or any of the trusts, powers, authorities and discretions vested in it by this Trust Deed, act by responsible officers or a responsible officer for the time being of the Trustee and the Trustee may also whenever it thinks fit, whether by power of attorney or otherwise, delegate to any person or persons or fluctuating body of persons (whether being a joint trustee of this Trust Deed or not) all or any of the trusts, powers, authorities and discretions vested in it by this Trust Deed and any such delegation may be made upon such terms and conditions and subject to such regulations (including power to sub-delegate with the consent of the Trustee) as the Trustee may think fit in the interests of the Noteholders and the Trustee shall not be bound to supervise the proceedings or acts of and shall not in any way or to any extent be responsible for any Liability incurred by reason of the misconduct, omission or default on the part of such delegate or sub-delegate;

 

(j)                                    Custodians and nominees: the Trustee may appoint and pay any person to act as a custodian or nominee on any terms in relation to such assets of the trust as the Trustee may determine, including for the purpose of depositing with a custodian this Trust Deed or any document relating to the trust created hereunder and the Trustee shall not be responsible for any Liability incurred by reason of the misconduct, omission or default on the part of any person appointed by it hereunder or be bound to supervise the proceedings or acts of any such person; the Trustee is not obliged to appoint a custodian if the Trustee invests in securities payable to bearer; and

 

(k)                                 Confidential information: the Trustee shall not (unless required by law or ordered so to do by a court of competent jurisdiction) be required to disclose to any Noteholder or Couponholder confidential information or other information made available to the Trustee by the Issuer or the Guarantors in connection with this Trust Deed and no Noteholder or Couponholder shall be entitled to take any action to obtain from the Trustee any such information.

 

10.4                        Financial matters

 

(a)                                 Professional charges: any trustee being a banker, lawyer, broker or other person engaged in any profession or business shall be entitled to charge and be paid all usual

 

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professional and other charges for business transacted and acts done by him or his partner or firm on matters arising in connection with the trusts of this Trust Deed and also his properly incurred charges in addition to disbursements for all other work and business done and all time spent by him or his partner or firm on matters arising in connection with this Trust Deed, including matters which might or should have been attended to in person by a trustee not being a banker, lawyer, broker or other professional person;

 

(b)                                 Expenditure by the Trustee: nothing contained in this Trust Deed shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties or the exercise of any right, power, authority or discretion hereunder if it has grounds for believing the repayment of such funds or adequate indemnity against, or security for, such risk or liability is not reasonably assured to it; and

 

(c)                                  Trustee may enter into financial transactions with the Issuer: no Trustee and no director or officer of any corporation being a Trustee hereof shall by reason of the fiduciary position of such Trustee be in any way precluded from making any contracts or entering into any transactions in the ordinary course of business with the Issuer, any Guarantor or any of their respective Subsidiaries, or any person or body corporate directly or indirectly associated with the Issuer, any Guarantor or any of their respective Subsidiaries, or from accepting the trusteeship of any other debenture stock, debentures or securities of the Issuer, any Guarantor or any of their respective Subsidiaries or any person or body corporate directly or indirectly associated with the Issuer, any Guarantor or any of their respective Subsidiaries, and neither the Trustee nor any such director or officer shall be accountable to the Noteholders or the Issuer, any Guarantor or any of their respective Subsidiaries, or any person or body corporate directly or indirectly associated with the Issuer, any Guarantor or any of their respective Subsidiaries, for any profit, fees, commissions, interest, discounts or share of brokerage earned, arising or resulting from any such contracts or transactions and the Trustee and any such director or officer shall also be at liberty to retain the same for its or his own benefit.

 

10.5                        Disapplication

 

Section 1 of the Trustee Act 2000 shall not apply to the duties of the Trustee in relation to the trusts constituted by this Trust Deed.  Where there are any inconsistencies between the Trustee Acts and the provisions of this Trust Deed, the provisions of this Trust Deed shall, to the extent allowed by law, prevail and, in the case of any such inconsistency with the Trustee Act 2000, the provisions of this Trust Deed shall constitute a restriction or exclusion for the purposes of the Trustee Act 2000.

 

10.6                        Trustee Liability

 

Subject to Section 750 of the Companies Act 2006 (if applicable) and notwithstanding anything to the contrary in this Trust Deed, the Notes or the Agency Agreement, the Trustee shall not be liable to any person for any matter or thing done or omitted in any way in connection with or in relation to this Trust Deed, the Notes or the Agency Agreement save in relation to its own gross negligence, wilful default or fraud.

 

10.7                        Illegality

 

None of the Agents shall be under any obligation to take any action under this Agreement (i) which may be illegal or contrary to applicable law or regulation or (ii) which it expects will result in any expense, loss, charge or liability accruing to it, the payment of which or adequate indemnity against which within a reasonable time is not, in its opinion, assured to it.

 

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11.                               COSTS AND EXPENSES

 

11.1                        Remuneration

 

(a)                                 Normal remuneration: the Issuer shall pay to the Trustee remuneration for its services as trustee as from the date of this Trust Deed, such remuneration to be at such rate as may from time to time be agreed between the Issuer and the Trustee.  Such remuneration shall be payable in advance on the anniversary of the date hereof in each year and the first payment shall be made on the date hereof.  Such remuneration shall accrue from day to day and be payable (in priority to payments to the Noteholders and Couponholders) up to and including the date when, all the Notes having become due for redemption, the redemption monies and interest thereon to the date of redemption have been paid to the Principal Paying Agent or the Trustee, provided that if upon due presentation (if required pursuant to the Conditions) of any Note or Coupon or any cheque, payment of the monies due in respect thereof is improperly withheld or refused, remuneration will commence again to accrue;

 

(b)                                 Extra remuneration: in the event of the occurrence of an Event of Default or a Potential Event of Default or the Trustee considering it necessary or being requested by the Issuer to undertake duties which the Trustee and the Issuer or any Guarantor agree to be of an exceptional nature or otherwise outside the scope of the normal duties of the Trustee under this Trust Deed, the Issuer shall pay to the Trustee such additional remuneration as shall be agreed between them;

 

(c)                                  Value added tax: the Issuer shall in addition pay to the Trustee an amount equal to the amount of any value added tax or similar tax chargeable in respect of its remuneration under this Trust Deed;

 

(d)                                 Failure to agree: in the event of the Trustee and the Issuer failing to agree:

 

(i)                                     (in a case to which sub-clause 11.1(a) (Normal remuneration) applies) upon the amount of the remuneration; or

 

(ii)                                  (in a case to which sub-clause 11.1(b) (Extra remuneration) applies) upon whether such duties shall be of an exceptional nature or otherwise outside the scope of the normal duties of the Trustee under this Trust Deed, or upon such additional remuneration;

 

such matters shall be determined by a person (acting as an expert and not as an arbitrator) selected by the Trustee and approved by the Issuer or, failing such approval, nominated (on the application of the Trustee) by the President for the time being of The Law Society of England and Wales (the expenses involved in such nomination and the fees of such person being payable by the Issuer) and the determination of any such person shall be final and binding upon the Trustee and the Issuer;

 

(e)                                  Expenses: the Issuer shall also pay or discharge all reasonable costs, charges and expenses incurred by the Trustee in relation to the preparation and execution of, the exercise of its powers and the performance of its duties under, and in any other manner in relation to, this Trust Deed, including but not limited to legal and travelling expenses and any stamp, issue, registration, documentary and other taxes or duties paid or payable by the Trustee in connection with any action taken or contemplated by or on behalf of the Trustee for enforcing, or resolving any doubt concerning, or for any other purpose in relation to, this Trust Deed, in each case upon receipt of proper evidence of such costs, charges and/or expenses;

 

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(f)                                   Indemnity: the Issuer shall indemnify the Trustee in respect of all liabilities and expenses incurred by it or by any Appointee or other person appointed by it to whom any trust, power, authority or discretion may be delegated by it in the execution or purported execution of the trusts, powers, authorities or discretions vested in it by this Trust Deed and against all liabilities, actions, proceedings, costs, claims and demands that any of them may incur or that may be made against any of them in respect of any matter or thing done or omitted in any way relating to this Trust Deed provided that it is expressly stated that Clause 10.6 (Trustee Liability) shall apply in relation to these provisions.  Notwithstanding any provision of this Trust Deed to the contrary, including, without limitation, any indemnity given, the Trustee shall not in any event be liable for any indirect, special, speculative, punitive or consequential loss, damage or expenses of any kind whatsoever (including but not limited to loss of profits), whether or not foreseeable, suffered by the Issuer or any other party in connection with the transactions contemplated by this Trust Deed; and

 

(g)                                  Payment of amounts due: all amounts due and payable pursuant to sub-Clauses 11.1(e) (Expenses) and 11.1(f) (Indemnity) shall be payable by the Issuer on the date specified in a demand by the Trustee; the rate of interest applicable to such payments shall be two per cent. per annum above the base rate from time to time of The Bank of New York and interest shall accrue:

 

(i)                                     in the case of payments made by the Trustee prior to the date of the demand, from the date on which the payment was made or such later date as specified in such demand; and

 

(ii)                                  in the case of payments made by the Trustee on or after the date of the demand, from the date specified in such demand, which date shall not be a date earlier than the date such payments are made.

 

All remuneration payable to the Trustee shall carry interest at the rate specified in this Clause 11.1(g) (Payment of amounts due) from the due date thereof;

 

11.2                        Stamp duties

 

The Issuer (failing which, the Guarantors) will pay all stamp duties, registration taxes, capital duties and other similar duties or taxes (if any) payable on (a) the constitution and issue of the Notes and Coupons, (b) the initial delivery of the Notes, (c) any action taken by the Trustee (or any Noteholder or Couponholder where permitted or required under this Trust Deed so to do) to enforce the provisions of the Notes or this Trust Deed and (d) the execution of this Trust Deed.  If the Trustee (or any Noteholder or Couponholder where permitted under this Trust Deed so to do) shall take any proceedings against the Issuer or any Guarantor in any other jurisdiction and if for the purpose of any such proceedings this Trust Deed or any Notes are taken into any such jurisdiction and any stamp duties or other duties or taxes become payable thereon in any such jurisdiction, the Issuer will pay (or reimburse the person making payment of) such stamp duties or other duties or taxes (including penalties).

 

11.3                        Exchange rate indemnity

 

(a)                                 Currency of account and payment: Euro or, in relation to Clause 11.1 (Remuneration), pounds sterling (the “Contractual Currency”) is the sole currency of account and payment for all sums payable by the Issuer and the Guarantors under or in connection with this Trust Deed and the Notes and the Coupons, including damages;

 

(b)                                 Extent of discharge: an amount received or recovered in a currency other than the Contractual Currency (whether as a result of, or of the enforcement of, a judgment or order of a court of any jurisdiction, in the winding-up or dissolution of the Issuer, any

 

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Guarantor or otherwise), by the Trustee or any Noteholder or Couponholder in respect of any sum expressed to be due to it from the Issuer or such Guarantor will only discharge the Issuer or such Guarantor to the extent of the Contractual Currency amount which the recipient is able to purchase at the applicable market rate (as determined in its sole discretion) with the amount so received or recovered in that other currency on the date of that receipt or recovery (or, if it is not practicable to make that purchase on that date, on the first date on which it is practicable to do so); and

 

(c)                                  Indemnity: if that Contractual Currency amount is less than the Contractual Currency amount expressed to be due to the recipient under this Trust Deed or the Notes or the Coupons, the Issuer will indemnify it against any Liability sustained by it as a result.  In any event, the Issuer will indemnify the recipient against the cost of making any such purchase.

 

11.4                        Indemnities separate

 

The indemnities in this Trust Deed constitute separate and independent obligations from the other obligations in this Trust Deed, will give rise to separate and independent causes of action, will apply irrespective of any indulgence granted by the Trustee and/or any Noteholder or Couponholder and will continue in full force and effect despite any judgment, order, claim or proof for a liquidated amount in respect of any sum due under this Trust Deed or the Notes and/or the Coupons or any other judgment or order.  Any such Liability as referred to in sub-clause 11.1(f) (Indemnity) shall be deemed to constitute a Liability suffered by the Trustee, the Noteholders and Couponholders and no proof or evidence of any actual Liability shall be required by the Issuer, any Guarantor or their respective liquidator or liquidators.

 

11.5                        Discharges

 

Notwithstanding any discharge of this Trust Deed or the Trustee’s appointment, the provisions of this Clause 11 (Costs and expenses) shall continue in full force and effect notwithstanding such discharge.

 

12.                               APPOINTMENT AND RETIREMENT

 

12.1                        Appointment of Trustees

 

The power of appointing new trustees of this Trust Deed shall be vested in the Issuer but no person shall be appointed who shall not previously have been approved by an Extraordinary Resolution.  A trust corporation may be appointed sole trustee hereunder but subject thereto there shall be at least two trustees hereof one at least of which shall be a trust corporation.  Any appointment of a new trustee hereof shall as soon as practicable thereafter be notified by the Issuer to the Paying Agents and to the Noteholders.  The Noteholders shall together have the power, exercisable by Extraordinary Resolution, to remove any trustee or trustees for the time being hereof.  The removal of any trustee shall not become effective unless there remains a trustee hereof (being a trust corporation) in office after such removal.

 

12.2                        Co-trustees

 

Notwithstanding the provisions of Clause 12.1 (Appointment of Trustees), the Trustee may, upon giving prior notice to the Issuer and the Guarantors but without the consent of the Issuer, the Guarantors or the Noteholders, appoint any person established or resident in any jurisdiction (whether a trust corporation or not) to act either as a separate trustee or as a co-trustee jointly with the Trustee:

 

(a)                                 if the Trustee considers such appointment to be in the interests of the Noteholders; or

 

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(b)                                 for the purposes of conforming to any legal requirements, restrictions or conditions in any jurisdiction in which any particular act or acts are to be performed; or

 

(c)                                  for the purposes of obtaining a judgment in any jurisdiction or the enforcement in any jurisdiction either of a judgment already obtained or of this Trust Deed.

 

12.3                        Attorneys

 

The Issuer and the Guarantors each hereby irrevocably appoints the Trustee to be its attorney in its name and on its behalf to execute any such instrument of appointment.  Such a person shall (subject always to the provisions of this Trust Deed) have such trusts, powers, authorities and discretions (not exceeding those conferred on the Trustee by this Trust Deed) and such duties and obligations as shall be conferred on such person or imposed by the instrument of appointment.  The Trustee shall have power in like manner to remove any such person.  Such proper remuneration as the Trustee may pay to any such person, together with any attributable costs, charges and expenses incurred by it in performing its function as such separate trustee or co-trustee, shall for the purposes of this Trust Deed be treated as costs, charges and expenses incurred by the Trustee.

 

12.4                        Retirement of Trustees

 

Any Trustee for the time being of this Trust Deed may retire at any time upon giving not less than three calendar months’ notice in writing to the Issuer and the Guarantors without assigning any reason therefor and without being responsible for any costs occasioned by such retirement.  The retirement of any Trustee shall not become effective unless there remains a trustee hereof (being a trust corporation) in office after such retirement.  Each of the Issuer and the Guarantors hereby covenants that in the event of the only trustee hereof which is a trust corporation giving notice under this Clause 12.4 (Retirement of Trustees) it shall use its best endeavours to procure a new trustee, being a trust corporation, to be appointed and if the Issuer has not procured the appointment of a new trustee within 30 days of the expiry of the Trustee notice referred to in this Clause 12.4 (Retirement of Trustees), the Trustee shall be entitled to procure the appointment of a new trustee.

 

12.5                        Competence of a majority of Trustees

 

Whenever there shall be more than two trustees hereof the majority of such trustees shall (provided such majority includes a trust corporation) be competent to execute and exercise all the trusts, powers, authorities and discretions vested by this Trust Deed in the Trustee generally.

 

12.6                        Powers additional

 

The powers conferred by this Trust Deed upon the Trustee shall be in addition to any powers which may from time to time be vested in it by general law or as the holder of any of the Notes or Coupons.

 

12.7                        Merger

 

Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be otherwise qualified and eligible under this Clause 12.7 (Merger), without the execution or filing of any paper or any further act on the part of any of the parties hereto.

 

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13.                               NOTICES

 

13.1                        Addresses for notices

 

All notices and other communications hereunder shall be made in writing and in English (by letter or fax) and shall be sent as follows:

 

	
(a)
    	
Issuer: if to the Issuer, to it at:
    
	
 
    	
 
    
	
 
    	
Lottomatica Group S.p.A.
    
	
 
    	
Viale del   Campo Boario 56/D
    
	
 
    	
00154 Rome
    
	
 
    	
Italy
    
	
 
    	
 
    
	
 
    	
Fax:
    	
+39 06   518 9 4482
    
	
 
    	
Attention:
    	
Corporate   Affairs
    
	
 
    	
 
    
	
 
    	
With a   copy to:
    
	
 
    	
 
    
	
 
    	
GTECH   Corporation
    
	
 
    	
GTECH   Center
    
	
 
    	
10   Memorial Boulevard
    
	
 
    	
Providence,   RI 02903-1125
    
	
 
    	
United   States of America
    
	
 
    	
 
    
	
 
    	
Fax:
    	
+1 401   392 0391
    
	
 
    	
Attention:
    	
General   Counsel
    
	
 
    	
 
    
	
(b)
    	
Guarantors: if to any Guarantor to them at:
    
	
 
    	
 
    
	
 
    	
GTECH Corporation
    
	
 
    	
GTECH Center
    
	
 
    	
10 Memorial Boulevard
    
	
 
    	
Providence, RI 02903-1125
    
	
 
    	
United States of America
    
	
 
    	
 
    
	
 
    	
Fax:
    	
+1 401   392 0391
    
	
 
    	
Attention:
    	
General   Counsel
    
	
 
    	
 
    
	
 
    	
With a copy to:
    
	
 
    	
 
    
	
 
    	
Lottomatica   Group S.p.A.
    
	
 
    	
Viale del Campo Boario 56/D
    
	
 
    	
00154 Rome
    
	
 
    	
Italy
    
	
 
    	
 
    
	
 
    	
Fax:
    	
+39 06   518 9 444
    
	
 
    	
Attention:
    	
Corporate   Affairs
    
	
 
    	
 
    
	
(c)
    	
Trustee: if to the Trustee, to it at:
    
	
 
    	
 
    
	
 
    	
BNY Mellon Corporate Trustee Services Limited
    
	
 
    	
One Canada Square
    
	
 
    	
London E14 5AL
    
	
 
    	
United Kingdom
    
	
 
    	
 
    
	
 
    	
Fax:
    	
+44 207   964 2536
    
	
 
    	
Attention:
    	
Corporate   Trust Services
    

 

30

 

 

 

13.2                        Effectiveness

 

Every notice or other communication sent in accordance with Clause 13.1 (Addresses for notices) shall be effective as follows if sent by letter, it shall be deemed to have been delivered seven days after the time of despatch and if sent by fax it shall be deemed to have been delivered at the time of despatch provided that any such notice or other communication which would otherwise take effect after 4.00 p.m. on any particular day shall not take effect until 10.00 a.m. on the immediately succeeding business day in the place of the addressee.

 

13.3                        Notes held in clearing systems

 

So long as any Global Note is held on behalf of a clearing system, in considering the interests of Noteholders, the Trustee may rely on any information provided to it by such clearing system or its operator as to the identity (either individually or by category) of its accountholders or participants with entitlements to any such Global Note.

 

13.4                        No notice to Couponholders

 

None of the Trustee, the Issuer nor any Guarantor shall be required to give any notice to the Couponholders for any purpose under this Trust Deed and the Couponholders shall be deemed for all purposes to have notice of the contents of any notice given to the Noteholders in accordance with Condition 15 (Notices).

 

14.                               NOTEHOLDERS’ REPRESENTATIVE

 

14.1                        Meetings of Noteholders

 

Subject to mandatory provisions of Italian law, for the purposes of paragraph 5 of Schedule 3 (Provisions for Meetings of the Noteholders), the Issuer (through its directors) shall, at the request of the Trustee or the Noteholders (as provided in Condition 12(a) (Meetings of Noteholders)), convene a meeting of the Noteholders.

 

14.2                        Notification to the Trustee

 

The Issuer shall notify the Trustee in writing immediately upon becoming aware of any action or proceedings to enforce the terms of this Trust Deed, the Notes and/or the Coupons being taken directly against the Issuer by any Noteholder or Noteholders.

 

14.3                        Noteholders’ Representative

 

Subject to mandatory provisions of Italian law, and to the extent that the Trustee accepts its appointment as Noteholders’ Representative pursuant to and in accordance with the provisions of Condition 12(b) (Noteholders’ Representative) and/or Schedule 3 (Provisions for Meetings of the Noteholders), it shall, as of and from the time of such appointment and in its capacity as Noteholders’ Representative, not be obliged to take any action or proceedings under, or in relation to, this Trust Deed, the Notes and/or the Coupons unless directed to do so by an Extraordinary Resolution (as defined in Schedule 3 (Provisions for Meetings of the Noteholders)) of the Noteholders.  In its capacity as Noteholders’ Representative, it may refrain from taking any action or exercising any right, power, authority or discretion vested in it under, or in relation to, the Trust Deed, the Notes and/or the Coupons unless and until it shall have been indemnified, secured and/or prefunded to its satisfaction against any and all Liabilities for which it may thereby become liable and which may be incurred by it in connection therewith and provided that the Trustee shall not be held liable for the consequence of taking any such action and may take such action without having regard to the effect of such action on individual Noteholders or Couponholders.  Subject to the mandatory provisions of Italian law, nothing contained in this Trust Deed, the Notes and/or the Coupons shall require the Noteholders’ Representative to expend or risk its own funds or otherwise

 

31

 

incur any Liabilities in the performance of its duties or the exercise of any right, power, authority or discretion under this Trust Deed, the Notes and/or the Coupons if it has grounds for believing the repayment of such funds or adequate indemnity against such risk or Liabilities is not assured to it.

 

15.                               FURTHER ISSUES

 

15.1                        Supplemental Trust Deed

 

If the Issuer issues further notes as provided in Condition 14 (Further Issues), the Issuer and the Guarantors shall, before their issue, execute and deliver to the Trustee a deed supplemental to this Trust Deed containing such provisions (including, but not limited to, provisions corresponding to any of the provisions of this Trust Deed) as the Trustee may require.

 

15.2                        Meetings of Noteholders

 

If the Trustee so directs, Schedule 3 (Provisions for Meetings of Noteholders) hereto shall apply equally to Noteholders and to holders of any notes issued pursuant to the Conditions as if references in it to “Notes” and “Noteholders” were also such securities and their holders respectively.

 

16.                               LAW AND JURISDICTION

 

16.1                        Governing law

 

This Trust Deed and the Notes and all matters and any non-contractual obligations arising from or connected with the Trust Deed and the Notes are governed by, and shall be construed in accordance with, English law, save that the mandatory provisions of Italian law relating to meetings of the Noteholders and the Noteholders’ Representative (rappresentante comune) shall apply to the provisions of the Notes and the Trust Deed in respect of the same.

 

16.2                        English courts

 

The courts of England have exclusive jurisdiction to settle any dispute (a “Dispute”), arising from or connected with this Trust Deed or the Notes and all non-contractual matters arising from or connected therewith (including a dispute regarding the existence, validity or termination of this Trust Deed or the Notes) or the consequences of their nullity.

 

16.3                        Non-exclusivity

 

The submission to the jurisdiction of the courts of England shall not (and shall not be construed so as to) limit the right of the Trustee or any Noteholder to take proceedings relating to a Dispute (“Proceedings”) in the Republic of Italy nor shall the taking of Proceedings in any one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not) if any to the extent permitted by law.

 

16.4                        Appropriate forum

 

The parties agree that the courts of England are the most appropriate and convenient courts to settle any Dispute and, accordingly, that they will not argue to the contrary.

 

16.5                        Rights of the Trustee and Noteholders to take proceedings outside England

 

Clause 16.2 (English courts) is for the benefit of the Trustee and the Noteholders only.  As a result, nothing in this Clause 16 (Law and Jurisdiction) prevents the Trustee or any of the Noteholders from taking Proceedings in any other courts with jurisdiction.  To the extent

 

32

 

allowed by law, the Trustee or any of the Noteholders may take concurrent Proceedings in any number of jurisdictions.

 

16.6                        Process agent

 

The Issuer and each Guarantor agrees that the documents which start any Proceedings and any other documents required to be served in relation to those Proceedings may be served on it by being delivered to GTECH U.K. Limited of Building 3, Floor 1, Croxley Green Business Park, Hatters Lane, Watford, Hertfordshire WD18 8YG, United Kingdom or, if different, its registered office for the time being or at any address of the Issuer or the relevant Guarantor in England and Wales at which process may be served on it in accordance with section 1139(2) of the Companies Act 2006.  If such person is not or ceases to be effectively appointed to accept service of process on behalf of the Issuer or any Guarantor, the Issuer or such Guarantor shall, on the written demand of the Trustee, appoint a further person in England to accept service of process on its behalf and, failing such appointment within 15 days, the Trustee shall be entitled to appoint such a person by written notice addressed to the Issuer or such Guarantor.  Nothing in this Clause 16.6 (Process agent) shall affect the right of the Trustee or any of the Noteholders to serve process in any other manner permitted by law.

 

17.                               SEVERABILITY

 

In case any provision in or obligation under this Trust Deed shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

18.                               CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

 

No person shall have any right to enforce any provision of this Trust Deed under the Contracts (Rights of Third Parties) Act 1999.

 

19.                               COUNTERPARTS

 

This Trust Deed may be executed in any number of counterparts, each of which shall be deemed an original.

 

IN WITNESS WHEREOF this Trust Deed has been executed as a deed by the parties hereto and is intended to be and is hereby delivered on the date first before written.

 

33

 

Schedule 1

 

Part A

Form of Temporary Global Note

 

THIS TEMPORARY GLOBAL NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  NEITHER THIS TEMPORARY GLOBAL NOTE NOR ANY PORTION HEREOF MAY BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO ANY U.S. PERSON UNLESS AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IS AVAILABLE.

 

ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

 

LOTTOMATICA GROUP S.p.A.
  (incorporated with limited liability under
 the laws of the Republic of Italy)

 

€500,000,000
 3.500 per cent. Guaranteed Notes due 5 March 2020

 

guaranteed by

 

GTECH CORPORATION
 GTECH HOLDINGS CORPORATION
 GTECH RHODE ISLAND LLC
 INVEST GAMES S.A.

 

ISIN: XS0860855930

 

TEMPORARY GLOBAL NOTE

 

1.                                      INTRODUCTION

 

This Temporary Global Note is issued in respect of the €500,000,000 3.500 per cent. Guaranteed Notes due 5 March 2020 (the “Notes”) of Lottomatica Group S.p.A. (the “Issuer”) and guaranteed by GTECH Corporation, GTECH Holdings Corporation, GTECH Rhode Island LLC and Invest Games S.A. (each a “Guarantor” and together the “Guarantors”).  The Notes are constituted by a trust deed dated 5 December 2012 (as amended or supplemented from time to time, the “Trust Deed”) among the Issuer, the Guarantors and BNY Mellon Corporate Trustee Services Limited as trustee (the “Trustee”, which expression includes all persons for the time being appointed trustee or trustees under the Trust Deed) and are the subject of a paying agency agreement dated 5 December 2012 (as amended or supplemented from time to time, the “Agency Agreement”) and made among the Issuer, the Guarantors, The Bank of New York Mellon (acting through its London Branch) as principal paying agent (the “Principal Paying Agent”, which expression includes any successor principal paying agent appointed from time to time in connection with the Notes) and the other paying agents named therein (together with the Principal Paying Agent, the “Paying Agents”, which expression includes any successor or additional paying agents appointed from time to time in connection with the Notes) and the Trustee.

 

34

 

2.                                      REFERENCES TO CONDITIONS

 

Any reference herein to the “Conditions” is to the terms and conditions of the Notes set out in Part B of Schedule 2 (Terms and Conditions of the Notes) of the Trust Deed and any reference to a numbered “Condition” is to the correspondingly numbered provision thereof.  Words and expressions defined in the Conditions shall have the same meanings when used in this Temporary Global Note.

 

3.                                      PROMISE TO PAY

 

The Issuer, for value received, promises to pay to the bearer of this Temporary Global Note the principal sum of

 

€500,000,000
 (FIVE HUNDRED MILLION EURO)

 

on 5 March 2020 or on such earlier date or dates as the same may become payable in accordance with the Conditions, and to pay interest on such principal sum in arrear on the dates and at the rate specified in the Conditions, together with any additional amounts payable in accordance with the Conditions, all subject to and in accordance with the Conditions; provided, however, that such interest shall be payable only:

 

(a)                                 in the case of interest falling due before the Exchange Date (as defined below), to the extent that a certificate or certificates issued by Euroclear Bank S.A./N.V. (“Euroclear”) and/or Clearstream Banking, société anonyme (“Clearstream, Luxembourg” and together with Euroclear, the “Clearing Systems”) dated not earlier than the date on which such interest falls due and in substantially the form set out in Schedule C (Form of Euroclear/Clearstream, Luxembourg Certification) hereto (certifying as to certain information based on certificates in substantially the form set out in Schedule A (Form of Accountholder’s Certification) hereto received from Member Organisations) is/are delivered to the Specified Office (as defined in the Trust Deed) of the Principal Paying Agent; or

 

(b)                                 in the case of interest falling due at any time, to the extent that the Issuer has failed to procure the exchange for a permanent global note of that portion of this Temporary Global Note in respect of which such interest has accrued.

 

4.                                      NEGOTIABILITY

 

This Temporary Global Note is negotiable and, accordingly, title to this Temporary Global Note shall pass by delivery.  Interests in Notes represented by this Temporary Global Note shall be transferable only in accordance with the rules and procedures for the time being of the relevant Clearing System.

 

5.                                      EXCHANGE

 

On or after the day following the expiry of 40 days after the date of issue of this Global Note (the “Exchange Date”), the Issuer shall procure (in the case of the first exchange) the exchange in whole or in part of interests in this Temporary Global Note for interests recorded in the records of the relevant Clearing Systems of a permanent global note (the “Permanent Global Note”) in or substantially in the form set out in Part B of Schedule 1 (Form of Permanent Global Note) to the Trust Deed to the bearer of this Temporary Global Note or (in the case of any subsequent exchange) an increase in such interests and in the principal amount of the Permanent Global Note.  Any exchange of interests in this Temporary Global Note for the corresponding interests recorded in the records of the relevant Clearing Systems in a duly executed and authenticated Permanent Global Note shall only take place upon:

 

35

 

(a)                                 presentation and (in the case of final exchange) surrender of this Temporary Global Note to, or to the order of the Principal Paying Agent at its Specified Office; and

 

(b)                                 receipt by the Principal Paying Agent of a certificate or certificates issued by Euroclear and/or Clearstream, Luxembourg dated not earlier than the Exchange Date and in substantially the form set out in Schedule C (Form of Euroclear/Clearstream, Luxembourg Certification) hereto (certifying as to certain information based on certificates in substantially the form set out in Schedule A (Form of Accountholder’s Certification) hereto received from Member Organisations).

 

The principal amount of Notes represented by this Temporary Global Note shall be the aggregate principal amount from time to time entered in the records of both of the relevant Clearing Systems.  The records of the relevant Clearing Systems (which expression in this Temporary Global Note means the records that each relevant Clearing System holds for its customers which reflect the amount of such customer’s interest in the Notes) shall be conclusive evidence of the principal amount of Notes represented by this Temporary Global Note and for those purposes, a statement issued by a relevant Clearing System (which statement shall be made available to the bearer upon request) stating the principal amount of Notes represented by this Temporary Global Note at any time shall be conclusive evidence of the records of the relevant Clearing System at that time.  In no circumstances shall the principal amount of the Permanent Global Note exceed the initial principal amount of this Temporary Global Note.

 

6.                                      WRITING DOWN

 

On each occasion on which:

 

(a)                                 the Permanent Global Note is delivered or the principal amount thereof is increased in accordance with its terms in exchange for a further portion of this Global Note; or

 

(b)                                 Notes represented by this Temporary Global Note are to be cancelled in accordance with Condition 5(f) (Cancellation),

 

the Issuer shall procure that (a) the principal amount of the Permanent Global Note, the principal amount of such increase or (as the case may be) the aggregate principal amount of such Notes and (b) the remaining principal amount (if any) of this Temporary Global Note (which shall be the previous principal amount hereof less the aggregate of the amounts referred to in (a)) are recorded in the records of the relevant Clearing Systems, whereupon the principal amount of this Temporary Global Note shall for all purposes be as most recently so noted.

 

7.                                      PAYMENTS

 

(a)                                 Subject to Clauses 3(a) and 3(b) (Promise to pay) above, payments due in respect of Notes for the time being represented by this Temporary Global Note shall be made to the bearer of this Temporary Global Note and each payment so made will discharge the Issuer’s obligations in respect thereof.

 

(b)                                 Subject to Clauses 3(a) and 3(b) (Promise to pay) above, upon any payment in respect of the Notes represented by this Temporary Global Note, the Issuer shall procure that the amount so paid shall be entered pro rata in the records of the relevant Clearing Systems but any failure to make such entries shall not affect the discharge referred to in Clause 7(a) above.

 

36

 

8.                                      CONDITIONS APPLY

 

Until this Temporary Global Note has been exchanged as provided herein or cancelled in accordance with the Agency Agreement, the bearer of this Temporary Global Note shall be subject to the Conditions and, subject as otherwise provided herein, shall be entitled to the same rights and benefits under the Conditions as if the bearer were the holder of Notes in definitive form in the denomination of €100,000 in substantially the form set out in Part A of Schedule 2 (Form of Definitive Note) to the Trust Deed and the related Coupons, and in an aggregate principal amount equal to the principal amount of this Temporary Global Note.

 

9.                                      NOTICES

 

Notwithstanding Condition 15 (Notices), while all the Notes are represented by this Temporary Global Note (or by this Temporary Global Note and the Permanent Global Note) and this Temporary Global Note is (or this Temporary Global Note and the Permanent Global Note are) held on behalf of the relevant Clearing Systems, notices to Noteholders may be given by delivery of the relevant notice to the relevant Clearing Systems for communication to the relative Accountholders (as defined below) rather than by publication as required by Condition 15 (Notices); provided, however, that, so long as the Notes are listed on the Luxembourg Stock Exchange and its rules so require, notices will also be published in a leading newspaper having general circulation in Luxembourg (which is expected to be the Luxemburger Wort) or on the website of the Luxembourg Stock Exchange (www.bourse.lu).  Any notice delivered to Euroclear and/or Clearstream, Luxembourg shall be deemed to have been given to Noteholders on the date on which such notice is delivered to the relevant Clearing System.

 

10.                               AUTHENTICATION AND EFFECTUATION

 

This Temporary Global Note shall not be valid or enforceable for any purpose unless and until it has been authenticated for and on behalf of The Bank of New York Mellon (acting through its London Branch) as principal paying agent and effectuated by the entity appointed as common safekeeper by the relevant Clearing Systems.

 

11.                               ACCOUNTHOLDERS

 

For so long as any of the Notes is represented by this Temporary Global Note or this Temporary Global Note and Permanent Global Note and such relevant Global Note(s) is/are held on behalf of the relevant Clearing Systems, each person (other than a relevant Clearing System) who is for the time being shown in the records of a relevant Clearing System as the holder of a particular principal amount of Notes (each an “Accountholder”) (in which regard any certificate or other document issued by a relevant Clearing System as to the principal amount of such Notes standing to the account of any person shall be conclusive and binding for all purposes) shall be treated as the holder of that principal amount for all purposes (including but not limited to for the purposes of any quorum requirements of, or the right to demand a poll, meetings of the Noteholders and giving notice to the Issuer pursuant to Condition 8 (Events of Default) and Condition 5(c) (Redemption at the option of the Noteholders)) other than with respect to the payment of principal and interest on the Notes, the right to which shall be vested, as against the Issuer, (i) if represented by this Temporary Global Note only, solely in the bearer of this Temporary Global Note in accordance with and subject to its terms or (ii) if represented by this Temporary Global Note and Permanent Global Note, in the bearer of this Temporary Global Note and the bearer of the Permanent Global Note, in accordance with and subject to their terms.  Each Accountholder must look solely to the relevant Clearing Systems for its share of each payment made to the bearer of this Temporary Global Note.

 

37

 

12.                               THIRD PARTY RIGHTS

 

No person shall have any right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of the terms of this Temporary Global Note.

 

13.                               GOVERNING LAW

 

This Temporary Global Note and all matters and any non-contractual obligations arising from or connected with it are governed by, and shall be construed in accordance with, English law, save that the mandatory provisions of Italian law relating to meetings of the Noteholders and the Noteholders’ Representative (rappresentante comune) shall apply to the provisions of the Notes and the Trust Deed in respect of the same.

 

38

 

AS WITNESS the manual signature of a duly authorised person on behalf of the Issuer.

 

LOTTOMATICA GROUP S.p.A.

 

	
By:
    	
 
    	
 
    
	
 
    	
(duly authorised)
    	
 
    

 

ISSUED on       December 2012

 

 

CERTIFICATE OF AUTHENTICATION

 

	
AUTHENTICATED for and on behalf of
    	
 
    
	
 
    	
 
    
	
THE BANK OF NEW YORK MELLON (ACTING THROUGH ITS LONDON BRANCH)
    	
 
    
	
 
    	
 
    
	
as   principal paying agent without recourse, warranty or liability
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
(duly authorised)
    	
 
    

 

 

	
CERTIFICATION OF EFFECTUATION
    	
 
    
	
 
    	
 
    
	
EFFECTUATED by
    	
 
    
	
 
    	
 
    
	
CLEARSTREAM BANKING, SOCIÉTÉ ANONYME
    	
 
    
	
 
    	
 
    
	
as common   safekeeper without recourse, warranty or liability
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
(duly authorised)
    	
 
    

 

39

 

Schedule A

Form of Accountholder’s Certification

 

LOTTOMATICA GROUP S.p.A.
  (incorporated with limited liability under
 the laws of the Republic of Italy)

 

€500,000,000
 3.500 per cent. Guaranteed Notes due 5 March 2020

 

guaranteed by

 

GTECH CORPORATION
 GTECH HOLDINGS CORPORATION
 GTECH RHODE ISLAND LLC
 INVEST GAMES S.A.

 

This is to certify that as of the date hereof, and except as set forth below, the above-captioned Securities held by you for our account (a) are owned by persons that are not citizens or residents of the United States, domestic partnerships, domestic corporations or any estate or trust the income of which is subject to United States Federal income taxation regardless of its source (“United States persons”), (b) are owned by United States person(s) that (i) are foreign branches of a United States financial institution (as defined in U.S. Treasury Regulations Section 1.165-12(c)(1)(iv)) (“financial institutions”) purchasing for their own account or for resale, or (ii) acquired the Securities through foreign branches of United States financial institutions and who hold the Securities through such United States financial institutions on the date hereof (and in either case (i) or (ii), each such United States financial institution hereby agrees, on its own behalf or through its agent, that you may advise the issuer or the issuer’s agent that it will comply with the requirements of Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986, as amended, and the regulations thereunder), or (c) are owned by United States or foreign financial institution(s) for purposes of resale during the restricted period (as defined in U.S. Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and in addition if the owner of the Securities is a United States or foreign financial institution described in clause (c) (whether or not also described in clause (a) or (b)) this is to further certify that such financial institution has not acquired the Securities for purposes of resale directly or indirectly to a United States person or to a person within the United States or its possessions.

 

This is also to certify that the Securities are beneficially owned by (1) non-U.S. person(s) or (2) U.S. person(s) who purchased the Securities in transactions which did not require registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”).  As used in this paragraph the term “U.S. person” has the meaning given to it by Regulation S under the Securities Act.

 

As used herein, “United States” means the United States of America (including the States and the District of Columbia); and its “possessions” include Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands.

 

We undertake to advise you promptly by tested telex on or prior to the date on which you intend to submit your certification relating to the Securities held by you for our account in accordance with your operating procedures if any applicable statement herein is not correct on such date, and in the absence of any such notification it may be assumed that this certification applies as of such date.

 

This certification excepts and does not relate to €[·] of such interest in the above Securities in respect of which we are not able to certify and as to which we understand exchange and delivery of definitive Securities (or, if relevant, exercise of any rights or collection of any interest) cannot be made until we do so certify.

 

We understand that this certification is required in connection with certain tax laws and, if applicable, certain securities laws of the United States.  In connection therewith, if administrative or legal proceedings are commenced or threatened in connection with which this certification is or would be

 

40

 

relevant, we irrevocably authorise you to produce this certification to any interested party in such proceedings.

 

Dated: [                    ]

 

[name of person giving certificate]
 as, or as agent for,
 the beneficial owner(s) of the Securities to which this certificate relates.

 

	
By:
    	
 
    	
 
    
	
 
    	
Authorised signatory
    	
 
    

 

41

 

Schedule B

Further Information in respect of the Issuer

The Issuer

 

	
1.
    	
 
    	
Object:
    	
 
    	
The   object of the Issuer, as set out in Article 4 of its by-laws, is the   carrying out of all activities pertaining to the organisation, management and   completion of games and/or lotteries, instant and/or traditional, including   but not limited to games of ability, forecasting competitions, lottery draws   and betting, whether directly or through concessions, in Italy or abroad. In   particular, the Issuer can organise and manage, under licence from the   Ministry of Finance, the automated lotto service, as provided for by section   1 of the Ministry Decree. 4832/GAB of March 17, 1993 as amended. The   Issuer can also carry out any concessionary activities and/or activities   connected with services delegated, or in any way granted under a concession,   to tobacconist shops and/or collectors by the Public Administration,   including the collection of car taxes. The Issuer can further exercise and   develop, under concession, national pari-mutuel games through a distribution   network. The Issuer can carry out any other activity granted by the Public   Administration in connection with concessionary services or activities that   have been granted to it under a concession. The Issuer can carry out any manufacturing,   financial, commercial, movables and real estate property transactions, in any   way instrumental to the pursuit of the corporate purpose, including the   issuance of surety bonds, pledges and mortgages and the acquisition,   assignment and use of industrial rights, patents and inventions. The Issuer   can hold interests in other companies, businesses and consortia, either   established or to be established, including foreign companies, essential to,   connected with or instrumental in achieving the corporate purpose and can   carry out, in general, any essential or desirable transaction in connection   therewith in compliance with the provisions of activity set forth by   Section 106 and et seq. of the Legislative Decree No. 385/1993 as   amended, and its implementing regulations.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Registered   Office:
    	
 
    	
Viale del   Campo Boario 56/D, 00154 Rome, Italy.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Company’s   Registered Number:
    	
 
    	
Companies   Registry of Rome No. 08028081001, Chamber of Commerce of   Rome, Italy.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Paid-up   share capital at the date hereof:
    	
 
    	
€172,360,220.00,   consisting of 172,360,220 ordinary shares, each with a nominal value of   €1.00.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Reserves:
    	
 
    	
€2,088,918,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
Date of   resolutions authorising the issue of the Notes:
    	
 
    	
Resolution   of the board of directors of the Issuer dated 21 November 2012, filed   with the Companies’ Registry of Rome on 28 November 2012.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
Additional   details:
    	
 
    	
Please   refer to the prospectus dated 3 December 2012.
    

 

42

 

Schedule C

Form of Euroclear/Clearstream, Luxembourg Certification

 

LOTTOMATICA GROUP S.p.A.
  (incorporated with limited liability under
 the laws of the Republic of Italy)

 

€500,000,000
 3.500 per cent. Guaranteed Notes due 5 March 2020

 

guaranteed by

 

GTECH CORPORATION
 GTECH HOLDINGS CORPORATION
 GTECH RHODE ISLAND LLC
 INVEST GAMES S.A.

 

This is to certify that, based solely on certifications we have received in writing, by tested telex or by electronic transmission from member organisations appearing in our records as persons being entitled to a portion of the principal amount set forth below (our “Member Organisations”) substantially to the effect set forth in the temporary global note issued in respect of the securities, as of the date hereof, €[·] principal amount of the above-captioned Securities (a) is owned by persons that are not citizens or residents of the United States, domestic partnerships, domestic corporations or any estate or trust the income of which is subject to United States Federal income taxation regardless of its source (“United States persons”), (b) is owned by United States persons that (i) are foreign branches of United States financial institutions (as defined in U.S. Treasury Regulations Section 1.165-12(c)(1)(iv)) (“financial institutions”) purchasing for their own account or for resale, or (ii) acquired the Securities through foreign branches of United States financial institutions and who hold the Securities through such United States financial institutions on the date hereof (and in either case (i) or (ii), each such United States financial institution has agreed, on its own behalf or through its agent, that we may advise the Issuer or the Issuer’s agent that it will comply with the requirements of Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986, as amended, and the regulations thereunder), or (c) is owned by United States or foreign financial institutions for purposes of resale during the restricted period (as defined in U.S. Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and to the further effect that United States or foreign financial institutions described in clause (c) (whether or not also described in clause (a) or (b)) have certified that they have not acquired the Securities for purposes of resale directly or indirectly to a United States person or to a person within the United States or its possessions.

 

This is also to certify with respect to the principal amount of Securities set forth above that we have received in writing, by tested telex or by electronic transmission, from our Member Organisations entitled to a portion of such principal amount, certifications with respect to such portion substantially to the effect set forth in the temporary global note issued in respect of the Securities.

 

We further certify (1) that we are not making available herewith for exchange (or, if relevant, exercise of any rights or collection of any interest) any portion of the temporary global security excepted in such certifications and (2) that as of the date hereof we have not received any notification from any of our Member Organisations to the effect that the statements made by such Member Organisations with respect to any portion of the part submitted herewith for exchange (or, if relevant, exercise of any rights or collection of any interest) are no longer true and cannot be relied upon as of the date hereof.

 

We understand that this certification is required in connection with certain tax laws and, if applicable, certain securities laws of the United States.  In connection therewith, if administrative or legal proceedings are commenced or threatened in connection with which this certification is or would be relevant, we irrevocably authorise you to produce this certification to any interested party in such proceedings.

 

43

 

Dated: [                       ]

 

[Euroclear Bank S.A./N.V.]

 

or

 

[Clearstream Banking, société anonyme]

 

	
By:
    	
 
    	
 
    
	
 
    	
Authorised signatory
    	
 
    

 

44

 

Part B
 Form of Permanent Global Note

 

THIS PERMANENT GLOBAL NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  NEITHER THIS PERMANENT GLOBAL NOTE NOR ANY PORTION HEREOF MAY BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO ANY U.S. PERSON UNLESS AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IS AVAILABLE.

 

ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

 

LOTTOMATICA GROUP S.p.A.
  (incorporated with limited liability under
 the laws of the Republic of Italy)

 

€500,000,000
 3.500 per cent. Guaranteed Notes due 5 March 2020

 

guaranteed by

 

GTECH CORPORATION

GTECH HOLDINGS CORPORATION

GTECH RHODE ISLAND LLC

INVEST GAMES S.A.

 

ISIN: XS0860855930

PERMANENT GLOBAL NOTE

 

1.                                      INTRODUCTION

 

This Global Note is issued in respect of the €500,000,000 3.500 per cent. Guaranteed Notes due 5 March 2020 (the “Notes”) of Lottomatica Group S.p.A. (the “Issuer”).  The Notes are constituted by a trust deed dated 5 December 2012 (as amended or supplemented from time to time, the “Trust Deed”) among the Issuer, the Guarantors and BNY Mellon Corporate Trustee Services Limited as trustee (the “Trustee”, which expression includes all persons for the time being appointed trustee or trustees under the Trust Deed) and are the subject of a paying agency agreement dated 5 December 2012 (as amended or supplemented from time to time, the “Agency Agreement”) and made among the Issuer, the Guarantors, The Bank of New York Mellon (acting through its London Branch) as principal paying agent (the “Principal Paying Agent”, which expression includes any successor principal paying agent appointed from time to time in connection with the Notes), the other paying agents named therein (together with the Principal Paying Agent, the “Paying Agents”, which expression includes any successor or additional paying agents appointed from time to time in connection with the Notes) and the Trustee.

 

2.                                      REFERENCES TO CONDITIONS

 

Any reference herein to the “Conditions” is to the terms and conditions of the Notes set out in Part B of Schedule 2 (Terms and Conditions of the Notes) of the Trust Deed and any reference to a numbered “Condition” is to the correspondingly numbered provision thereof.  Words and expressions defined in the Conditions shall have the same meanings when used in this Permanent Global Note.

 

45

 

3.                                      PROMISE TO PAY

 

3.1                               The Issuer, for value received, promises to pay to the bearer of this Permanent Global Note the principal sum of

 

€500,000,000
 (FIVE HUNDRED MILLION EURO)

 

on 5 March 2020 or on such earlier date or dates as the same may become payable in accordance with the Conditions, and to pay interest on such principal sum in arrear on the dates and at the rate specified in the Conditions, together with any additional amounts payable in accordance with the Conditions, all subject to and in accordance with the Conditions.

 

3.2                               The principal amount of Notes represented by this Permanent Global Note shall be the aggregate amount from time to time entered in the records of both the relevant Clearing Systems (as defined below).  The records of the relevant Clearing Systems (which expression in this Permanent Global Note means the records that each relevant Clearing System holds for its customers which reflect the amount of such customer’s interest in the Notes) shall be conclusive evidence of the principal amount of Notes represented by this Permanent Global Note and, for those purposes, a statement issued by a relevant Clearing System (which statement shall be made available to the bearer upon request) stating the principal amount of Notes represented by this Permanent Global Note at any time shall be conclusive evidence of the records of the relevant Clearing System at that time.

 

4.                                      NEGOTIABILITY

 

This Permanent Global Note is negotiable and, accordingly, title to this Permanent Global Note shall pass by delivery.  Interests in Notes represented by this Permanent Global Note shall be transferable only in accordance with the rules and procedures for the time being of the relevant Clearing Systems (as defined below).

 

5.                                      EXCHANGE

 

This Permanent Global Note will be exchanged, in whole but not in part only, for Notes in definitive form (“Definitive Notes”) in substantially the form set out in Part A of Schedule 2 (Form of Definitive Note) to the Trust Deed if either of the following events (each, an “Exchange Event”) occurs:

 

(a)                                 if this Permanent Global Note is held on behalf of Euroclear Bank S.A./N.V. (“Euroclear”), or Clearstream Banking, société anonyme (“Clearstream, Luxembourg” and together with Euroclear, the “Clearing Systems”) and any such Clearing System is closed for business for a continuous period of 14 days (other than by reason of holidays, statutory or otherwise) or announces an intention permanently to cease business or does in fact do so; or

 

(b)                                 any of the circumstances described in Condition 8 (Events of Default) occurs.

 

6.                                      DELIVERY OF DEFINITIVE NOTES

 

Whenever this Permanent Global Note is to be exchanged for Definitive Notes, the Issuer shall procure the prompt delivery of such Definitive Notes, duly authenticated and with interest coupons (“Coupons”) attached, in an aggregate principal amount equal to the principal amount of this Permanent Global Note to the bearer of this Permanent Global Note against the surrender of this Global Note at the Specified Office (as defined in the Trust Deed) of the Principal Paying Agent within 30 days of the occurrence of the relevant Exchange Event.

 

46

 

The Conditions shall be modified with respect to Notes represented by this Global Note by the provisions set out herein.

 

7.                                      PAYMENTS

 

(a)                                 Payments of principal, interest and other amounts (if any) in respect of the unpaid balance of the principal amount of this Permanent Global Note may, at the direction of the bearer be made on the due date for any such payment to the relevant Clearing Systems for credit to the account (or accounts) of the Accountholder (as defined below) or Accountholders appearing in the records of the relevant Clearing Systems as having Notes credited to them.

 

(b)                                 Payments of principal, interest and other amounts (if any) in respect of this Permanent Global Note shall be made against presentation for endorsement of this Permanent Global Note in accordance with Clause 8 (Recording) and, if no further payment falls to be made in respect of this Permanent Global Note, this Permanent Global Note shall be surrendered to or to the order of the Principal Paying Agent.

 

(c)                                  Upon any payment in respect of the Notes represented by this Permanent Global Note, the Issuer shall procure that the amount so paid shall be entered pro rata in the records of the relevant Clearing Systems but any failure to make such entries shall not affect the discharge referred to in previous paragraph.

 

8.                                      RECORDING

 

8.1                               The Issuer shall procure that a record of each payment made in respect of this Permanent Global Note in accordance with Clause 7 (Payments) and the Conditions shall be made by the relevant Clearing Systems.

 

8.2                               (a)                                 On each occasion on which:

 

(i)                                     Notes represented by this Permanent Global Note are to be redeemed in full and cancelled in accordance with Condition 5(g) (Cancellation); or

 

(ii)                                  Definitive Notes are delivered in exchange for this Permanent Global Note in accordance with Clause 5 (Exchange),

 

the Issuer shall procure that (A)(1) the aggregate principal amount of Notes so redeemed or (2) the principal amount of the Definitive Notes so delivered and (B) the remaining principal amount (if any) of this Permanent Global Note (which shall be the principal amount of this Permanent Global Note before that redemption or exchange less the aggregate of the amounts referred to in (A)) are recorded in the records of the relevant Clearing Systems.

 

(b)                                 On each occasion on which any further portion of the Temporary Global Note is exchanged for an interest in this Permanent Global Note, the principal amount of this Permanent Global Note shall be increased by the amount of such further portion and the Issuer shall procure that the principal amount of this Permanent Global Note (which shall be the principal amount of this Permanent Global Note before that exchange plus the amount of such further portion) is recorded in the records of the relevant Clearing Systems.

 

9.                                      CONDITIONS APPLY

 

Until this Permanent Global Note has been exchanged as provided herein or cancelled in accordance with the Agency Agreement, the bearer of this Permanent Global Note shall be subject to the Conditions and, subject as otherwise provided herein, shall be entitled to the same rights and benefits under the Conditions as if it were the holder of Definitive Notes in

 

47

 

the denomination of €100,000 and the related Coupons and in an aggregate principal amount equal to the principal amount of this Permanent Global Note.

 

10.                               NOTICES

 

Notwithstanding Condition 15 (Notices), while all the Notes are represented by this Permanent Global Note (or by this Permanent Global Note and a temporary global note) and this Permanent Global Note is (or this Permanent Global Note and a temporary global note are) held on behalf of the relevant Clearing Systems, notices to Noteholders may be given by delivery of the relevant notice to the relevant Clearing Systems for communication to the relevant Accountholders (as defined below) rather than by publication as required by Condition 15 (Notices); provided, however, that, so long as the Notes are listed on the Luxembourg Stock Exchange and its rules so require, notices will also be published in a leading newspaper having general circulation in Luxembourg (which is expected to be the Luxemburger Wort) or on the website of the Luxembourg Stock Exchange (www.bourse.lu).  Any notice delivered to Euroclear and/or Clearstream, Luxembourg shall be deemed to have been given to Noteholders on the date on which such notice is delivered to the relevant Clearing System.

 

11.                               PRESCRIPTION

 

Claims in respect of principal, premium and interest in respect of this Permanent Global Note will become void unless it is presented for payment within a period of ten years (in the case of principal and premium) and five years (in the case of interest) from the appropriate Relevant Date (as defined in Condition 7 (Taxation)).

 

12.                               REDEMPTION AT THE OPTION OF THE NOTEHOLDERS

 

The option of the Noteholders provided for in Condition 5(c) (Redemption at the option of the Noteholders) may be exercised by the holder of this Permanent Global Note giving notice to the Principal Paying Agent within the time limits relating to the deposit of Notes with a Paying Agent set out in that Condition substantially in the form of the Put Option Notice available from any Paying Agent and stating the principal amount of Notes in respect of which the Put Option is exercised and at the same time presenting this Permanent Global Note to the Principal Paying Agent for notation accordingly in Schedule E hereto.

 

13.                               AUTHENTICATION AND EFFECTUATION

 

This Permanent Global Note shall not be valid or enforceable for any purpose unless and until it has been authenticated for and on behalf of The Bank of New York Mellon (acting through its London Branch) as principal paying agent and effectuated by the entity appointed as common safekeeper by the relevant Clearing Systems.

 

14.                               ACCOUNTHOLDERS

 

For so long as any of the Notes is represented by this Permanent Global Note or by this Permanent Global Note and Temporary Global Note and such Global Note(s) is/are held on behalf of the relevant Clearing Systems, each person (other than a relevant Clearing System) who is for the time being shown in the records of a relevant Clearing System as the holder of a particular principal amount of Notes (each an “Accountholder”) (in which regard any certificate or other document issued by a relevant Clearing System as to the principal amount of such Notes standing to the account of any person shall be conclusive and binding for all purposes) shall be treated as the holder of that principal amount for all purposes (including but not limited to for the purposes of any quorum requirements of, or the right to demand a poll, meetings of the Noteholders and giving notice to the Issuer pursuant to Condition 8 (Events of Default) and Condition 5(c) (Redemption at the option of the Noteholders)) other than with respect to the payment of principal and interest on the Notes, the right to which shall be vested, as against the Issuer, (i) if represented by this Permanent Global Note only,

 

48

 

solely in the bearer of this Permanent Global Note in accordance with and subject to its terms or (ii) if represented by this Permanent Global Note and Temporary Global Note, in the bearer of this Permanent Global Note and the bearer of the Temporary Global Note, in accordance with and subject to their terms.  Each Accountholder must look solely to the relevant Clearing Systems for its share of each payment made to the bearer of this Permanent Global Note.

 

15.                               THIRD PARTY RIGHTS

 

No person shall have any right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of the terms of this Permanent Global Note.

 

16.                               GOVERNING LAW

 

This Permanent Global Note and all matters and any non-contractual obligations arising from or connected with it are governed by, and shall be construed in accordance with, English law, save that the mandatory provisions of Italian law relating to meetings of the Noteholders and the Noteholders’ Representative (rappresentante comune) shall apply to the provisions of the Notes and the Trust Deed in respect of the same.

 

 

AS WITNESS the manual signature of a duly authorised person on behalf of the Issuer.

 

LOTTOMATICA GROUP S.p.A.

 

	
By:
    	
 
    	
 
    
	
 
    	
(duly authorised)
    	
 
    

 

ISSUED as of      December 2012

 

 

CERTIFICATE OF AUTHENTICATION

 

	
AUTHENTICATED for and on behalf of
    	
 
    
	
 
    	
 
    
	
THE BANK OF NEW YORK MELLON (ACTING THROUGH ITS LONDON BRANCH)
    	
 
    
	
 
    	
 
    
	
as   principal paying agent without recourse, warranty or liability
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
(duly authorised)
    	
 
    

 

 

CERTIFICATION OF EFFECTUATION

 

EFFECTUATED by

 

CLEARSTREAM BANKING, SOCIÉTÉ ANONYME

 

as common safekeeper without recourse, warranty or liability

 

	
By:
    	
 
    	
 
    
	
 
    	
(duly authorised)
    	
 
    

 

49

 

Schedule A

Further Information in respect of the Issuer

 

The Issuer

 

	
1.
    	
 
    	
Object:
    	
 
    	
The   object of the Issuer, as set out in Article 4 of its by-laws, is the   carrying out of all activities pertaining to the organisation, management and   completion of games and/or lotteries, instant and/or traditional, including   but not limited to games of ability, forecasting competitions, lottery draws   and betting, whether directly or through concessions, in Italy or abroad. In   particular, the Issuer can organise and manage, under licence from the Ministry   of Finance, the automated lotto service, as provided for by section 1 of the   Ministry Decree. 4832/GAB of 17 March, 1993 as amended. The Issuer can also   carry out any concessionary activities and/or activities connected with   services delegated, or in any way granted under a concession, to tobacconist   shops and/or collectors by the Public Administration, including the   collection of car taxes. The Issuer can further exercise and develop, under   concession, national pari-mutuel games through a distribution network. The   Issuer can carry out any other activity granted by the Public Administration   in connection with concessionary services or activities that have been   granted to it under a concession. The Issuer can carry out any manufacturing,   financial, commercial, movables and real estate property transactions, in any   way instrumental to the pursuit of the corporate purpose, including the   issuance of surety bonds, pledges and mortgages and the acquisition,   assignment and use of industrial rights, patents and inventions. The Issuer   can hold interests in other companies, businesses and consortia, either   established or to be established, including foreign companies, essential to,   connected with or instrumental in achieving the corporate purpose and can   carry out, in general, any essential or desirable transaction in connection   therewith in compliance with the provisions of activity set forth by   Section 106 and et seq. of the Legislative Decree No. 385/1993 as   amended, and its implementing regulations.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Registered   Office:
    	
 
    	
Viale del   Campo Boario 56/D, 00154 Rome, Italy.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Company’s   Registered Number:
    	
 
    	
Companies   Registry of Rome No. 08028081001, Chamber of Commerce of   Rome, Italy.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Paid-up   share capital at the date hereof:
    	
 
    	
€172,360,220.00,   consisting of 172,360,220 ordinary shares, each with a nominal value of   €1.00.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Reserves:
    	
 
    	
€2,088,918,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
Date of   resolutions authorising the issue of the Notes:
    	
 
    	
Resolution   of the board of directors of the Issuer dated 21 November 2012, filed   with the Companies’ Registry of Rome on 28 November 2012.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
Additional   details:
    	
 
    	
Please   refer to the prospectus dated 3 December 2012.
    

 

50

 

Schedule 2

 

 

Part A

Form of Definitive Note

 

	
[On the face of the Note:]
    	
 
    
	
 
    	
 
    
	
€ 100,000
    	
Serial No:                        
    

 

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO ANY U.S. PERSON UNLESS AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IS AVAILABLE.

 

ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

 

LOTTOMATICA GROUP S.p.A.
  (incorporated with limited liability under
 the laws of the Republic of Italy)

 

€500,000,000
 3.500 per cent. Guaranteed Notes due 5 March 2020

 

guaranteed by

 

GTECH CORPORATION

GTECH HOLDINGS CORPORATION

GTECH RHODE ISLAND LLC

INVEST GAMES S.A.

 

ISIN: XS0860855930

 

This Note is one of a series of notes (the “Notes”) in the denomination of €100,000 and in the aggregate principal amount of €500,000,000 issued by Lottomatica Group S.p.A. (the “Issuer”).  The Notes are constituted by a trust deed dated 2 December 2010 among the Issuer, the Guarantors and BNY Mellon Corporate Trustee Services Limited as trustee for the holders of the Notes from time to time.

 

The Issuer, for value received, promises to pay to the bearer the principal sum of

 

€100,000

 

(ONE HUNDRED THOUSAND EURO)

 

on 5 March 2020, or on such earlier date or dates as the same may become payable in accordance with the conditions endorsed hereon (the “Conditions”), and to pay interest on such principal sum in arrear on the dates and at the rate specified in the Conditions, together with any additional amounts payable in accordance with the Conditions, all subject to and in accordance with the Conditions.

 

Interest is payable on the above principal sum at the rate of 3.500 per cent. per annum, payable annually in arrear on 5 March each year commencing on 5 March 2013, all subject to and in accordance with the Conditions.

 

51

 

This Note and the interest coupons relating hereto shall not be valid for any purpose until this Note has been authenticated for and on behalf of The Bank of New York Mellon (acting through its London Branch) as principal paying agent.

 

This Note and all matters and any non-contractual obligations arising from or connected with it are governed by, and shall be construed in accordance with, English law, save that the mandatory provisions of Italian law relating to meetings of the Noteholders and the Noteholders’ Representative (rappresentante comune) shall apply to the provisions of the Notes and the Trust Deed in respect of the same.

 

AS WITNESS the facsimile signature of a duly authorised person on behalf of the Issuer.

 

LOTTOMATICA GROUP S.p.A.

 

	
By:
    	
 
    	
 
    
	
 
    	
(duly authorised)
    	
 
    

 

ISSUED as of 

 

 

	
AUTHENTICATED for and on behalf of THE BANK OF NEW YORK MELLON (ACTING THROUGH ITS LONDON BRANCH)
    	
 
    
	
 
    	
 
    
	
as   principal paying agent without recourse, warranty or liability
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
(duly authorised)
    	
 
    

 

52

 

[On the reverse of the Note:]

 

TERMS AND CONDITIONS

 

[As set out in Part B of Schedule 2 to the Trust Deed]

 

FURTHER INFORMATION IN RESPECT OF THE ISSUER

 

[As set out in Schedule A to the Permanent Global Note]

 

[At the foot of the Terms and Conditions:]

 

PRINCIPAL PAYING AGENT

 

THE BANK OF NEW YORK MELLON
 (acting through its London Branch)
  One Canada Square
 London E14 5AL

 

PAYING AGENT

 

THE BANK OF NEW YORK MELLON (LUXEMBOURG) S.A.
  Vertigo Building — Polaris
 2-4 rue Eugène Ruppert
 L -2453
 Luxembourg

 

53

 

Part B

 

TERMS AND CONDITIONS OF THE NOTES

 

The following is the text of the Terms and Conditions of the Notes which (subject to completion and amendment) will be endorsed on each Note in definitive form:

 

The €500,000,000 3.500 per cent. Guaranteed Notes due 5 March 2020 (the “Notes”, which expression includes any further notes issued pursuant to Condition 14 (Further Issues) and forming a single series therewith) of Lottomatica Group S.p.A. (the “Issuer”) are guaranteed on a joint and several basis by each of GTECH Corporation, GTECH Holdings Corporation, GTECH Rhode Island LLC and Invest Games S.A. (each a “Guarantor” and together the “Guarantors”) and were authorised by a resolution of the Board of Directors of the Issuer on 21 November 2012.  The Notes are constituted by a trust deed dated 5 December 2012 (as amended or supplemented from time to time, the “Trust Deed”) among the Issuer, the Guarantors and BNY Mellon Corporate Trustee Services Limited as trustee (the “Trustee”, which expression includes all persons for the time being trustee or trustees appointed under the Trust Deed) and are the subject of a paying agency agreement dated 5 December 2012 (as amended or supplemented from time to time, the “Agency Agreement”) among the Issuer, the Guarantors, The Bank of New York Mellon (acting through its London Branch) as principal paying agent (the “Principal Paying Agent”, which expression includes any successor principal paying agent appointed from time to time in connection with the Notes), The Bank of New York Mellon (Luxembourg) S.A. (together with the Principal Paying Agent, the “Paying Agents”, which expression includes any successor or additional paying agents appointed from time to time in connection with the Notes) and the Trustee.

 

Certain provisions of these Conditions are summaries of the Trust Deed and the Agency Agreement and subject to their detailed provisions.  The holders of the Notes (the “Noteholders”) and the holders of the related interest coupons (the “Couponholders” and the “Coupons” respectively) are entitled to the benefit of, are bound by, and are deemed to have notice of, all the provisions of the Trust Deed and are deemed to have notice of all the provisions of the Agency Agreement applicable to them.  Copies of the Trust Deed and the Agency Agreement are available for inspection during normal business hours at the registered office for the time being of the Trustee, being at the Issue Date (as defined below) One Canada Square, London E14 5AL, United Kingdom, and at the Specified Offices (as defined in the Agency Agreement) of each of the Paying Agents, the initial Specified Offices of which are set out below.

 

References to “€” or “Euro” are to the single currency introduced at the start of the third stage of the European Economic and Monetary Union pursuant to the Treaty establishing the European Community, as amended.

 

1.                                      FORM, DENOMINATION AND TITLE

 

The Notes are serially numbered and in bearer form in the denomination of €100,000 with Coupons attached at the time of issue.  Title to the Notes and the Coupons will pass by delivery.  The holder of any Note or Coupon shall (except as otherwise required by law) be treated as its absolute owner for all purposes (whether or not it is overdue and regardless of any notice of ownership, trust or any other interest therein, any writing thereon or any notice of any previous loss or theft thereof) and no person shall be liable for so treating such holder.  No person shall have any right to enforce any term or condition of the Notes or the Trust Deed under the Contracts (Rights of Third Parties) Act 1999.

 

2.                                      GUARANTEE AND STATUS

 

(a)                                 Guarantee

 

Each Guarantor has unconditionally and irrevocably guaranteed on a joint and several basis (i) the due payment of all sums expressed to be payable by the Issuer under the Trust Deed, the Agency Agreement, the Notes and the Coupons and (ii) the

 

54

 

performance by the Issuer of all of its obligations under the Trust Deed, the Agency Agreement, the Notes and the Coupons.  Each Guarantor’s obligations in that respect (each, a “Guarantee”) are contained in the Trust Deed.

 

(b)                                 Status of the Notes

 

The Notes constitute direct, general unconditional, unsecured (subject to Condition 3 (Negative Pledge)) and unsubordinated obligations of the Issuer which are “obbligazioni” pursuant to Articles 2410-et seq. of the Italian Civil Code and will at all times rank at least pari passu with all other present and future unsecured and unsubordinated obligations of the Issuer, save for such obligations as may be preferred by provisions of law that are both mandatory and of general application.

 

(c)                                  Status of the Guarantees

 

The Guarantees constitute direct, general unconditional, unsecured (subject to Condition 3 (Negative Pledge)) and unsubordinated obligations of the Guarantors and will at all times rank at least pari passu with all other present and future unsecured and unsubordinated obligations of the relevant Guarantor, save for such obligations as may be preferred by provisions of law that are both mandatory and of general application.

 

3.                                      NEGATIVE PLEDGE

 

So long as any Note or Coupon remains outstanding (as defined in the Trust Deed), none of the Issuer or any Guarantor will, and each of the Issuer and the Guarantors shall procure that none of their respective Subsidiaries will, create or permit to subsist any Security Interest (other than a Permitted Security Interest) upon the whole or any part of their present or future business, undertakings, assets or revenues (including uncalled capital) to secure any Relevant Indebtedness or Relevant Guarantee of Relevant Indebtedness without (a) at the same time or prior thereto securing the obligations of the Issuer under the Notes, the Coupons and the Trust Deed or, as the case may be, the obligations of the Guarantors under the Guarantees, equally and rateably therewith to the satisfaction of the Trustee or (b) providing such other security, guarantee, indemnity or other arrangement for the obligations of the Issuer under the Notes, the Coupons and the Trust Deed or, as the case may be, the obligations of the Guarantors under the Guarantees, as the Trustee may in its absolute discretion consider to be not materially less beneficial to the interests of the Noteholders or as may be approved by an Extraordinary Resolution (as defined in the Trust Deed) of Noteholders.

 

In these Conditions:

 

“Permitted Security Interest” means:

 

(a)         any Security Interest arising by operation of law;

 

(b)         any Security Interest existing on the assets or property of a Person immediately prior to its acquisition by or its consolidation or merger with the Issuer, a Guarantor or a Subsidiary of the Issuer, provided that such Security Interest is not created in contemplation of such acquisition, consolidation or merger and the amount secured by such Security Interest is not thereafter increased; and

 

(c)          any Security Interest to secure Relevant Indebtedness or a Relevant Guarantee of Relevant Indebtedness upon or with respect to any present or future assets, receivables, remittances or payment rights of the Issuer, a Guarantor or a Subsidiary of the Issuer (the “Charged Assets”), created pursuant to any securitisation or like arrangements provided that (i) the aggregate principal amount outstanding of Relevant Indebtedness or of Relevant Guarantee(s) of Relevant Indebtedness created pursuant to any securitisation or like arrangements and (ii) the Charged Assets at any one time do each not exceed 5% of

 

55

 

the Consolidated Assets and whereby all or substantially all the payment obligations in respect of such Relevant Indebtedness or Relevant Guarantee of Relevant Indebtedness are to be discharged solely from the Charged Assets;

 

“Person” means any individual, company, corporation, firm, partnership, joint venture, association, organisation, state or agency of a state or other entity, whether or not having separate legal personality;

 

“Relevant Guarantee” means, in relation to any Relevant Indebtedness of any Person, any obligation of another Person to pay such Relevant Indebtedness including (without limitation):

 

(a)                                 any obligation to purchase such Relevant Indebtedness;

 

(b)                                 any obligation to lend money, to purchase or subscribe shares or other securities or to purchase assets or services in order to provide funds for the payment of such Relevant Indebtedness;

 

(c)                                  any indemnity against the consequences of a default in the payment of such Relevant Indebtedness; and

 

(d)                                 any other agreement to be responsible for such Relevant Indebtedness;

 

“Relevant Indebtedness” means any present or future indebtedness which is in the form of, or represented by, any bond, note, debenture, debenture stock, loan stock, certificate or other instrument which is, or is capable of being, listed, quoted or traded on any stock exchange or in any securities market (including, without limitation, any over-the-counter or other securities market);

 

“Security Interest” means any mortgage, charge, pledge, lien or other security interest including, without limitation, anything analogous to any of the foregoing under the laws of any jurisdiction; and

 

“Subsidiary” means, in relation to any Person (the “first person”) at any particular time, any other Person (the “second person”):

 

(a)                                 which is controlled, directly or indirectly by the first person;

 

(b)                                 more than half the issued share capital of which is beneficially owned directly or indirectly by the first person;

 

(c)                                  which is a Subsidiary of another Subsidiary of the first person; or

 

(d)                                 whose financial statements are in accordance with applicable law and generally accepted accounting principles applicable to the Issuer fully consolidated with those of the first person.

 

For the purposes of this definition, a Person shall be treated as being controlled by another Person if the latter (whether by way of ownership of shares, proxy, contract, agency or otherwise) has the power to (i) appoint or remove all, or the majority, of its directors or other equivalent officers or (ii) direct its operating and financial policies.

 

4.                                      INTEREST

 

(a)                                 Interest

 

The Notes bear interest from (and including) 5 December 2012 (the “Issue Date”) at the rate of 3.500 per cent. per annum (the “Rate of Interest”) payable in arrear on 5 March in each year, commencing on 5 March 2013 (each, an “Interest Payment Date”), subject as provided in Condition 6 (Payments).  The first payment (for the period from (and including) the Issue

 

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Date to (but excluding) 5 March 2013 and amounting to €863.01 per €100,000 principal amount of Notes) shall be made on 5 March 2013.  Each payment thereafter (for each full year from (and including) 5 March 2013 to (but excluding) 5 March 2020 and amounting to €3,500 per €100,000 principal amount of Notes) shall be made on the relevant Interest Payment Date.

 

Each Note will cease to bear interest from the due date for redemption unless, upon due presentation, payment of principal is improperly withheld or refused, in which case it will continue to bear interest at such rate (both before and after judgment) until whichever is the earlier of (a) the day on which all sums due in respect of such Note up to that day are received by or on behalf of the relevant Noteholder and (b) the day which is seven days after the Principal Paying Agent or the Trustee has notified the Noteholders that it has received all sums due in respect of the Notes up to such seventh day (except to the extent that there is any subsequent default in payment).

 

If interest is required to be paid in respect of a Note on any date which is not an Interest Payment Date, it shall be calculated by applying the Rate of Interest to the principal amount of such Note, multiplying the product by the relevant Day Count Fraction and rounding the resulting figure to the nearest cent (half a cent being rounded upwards), where:

 

“Day Count Fraction” means, in respect of any period, the number of days in the relevant period, from (and including) the first day in such period to (but excluding) the last day in such period, divided by the number of days in the Regular Period in which the relevant period falls; and

 

“Regular Period” means each period from (and including) the Issue Date or any Interest Payment Date to (but excluding) the next Interest Payment Date or the Maturity Date, as the case may be.

 

(b)                                 Interest rate adjustment:

 

(i)                                     The Rate of Interest will be subject to adjustment from time to time in the event of a Step Up Rating Change or Step Down Rating Change, as the case may be.  From (and including) the first Interest Payment Date following the date of a Step Up Rating Change, the Rate of Interest shall be the Initial Rate of Interest plus 1.25 per cent. per annum.  Furthermore, in the event of a Step Down Rating Change following a Step Up Rating Change, with effect from (and including) the first Interest Payment Date following the date of such Step Down Rating Change, the Rate of Interest shall be decreased by 1.25 per cent. per annum to the Initial Rate of Interest.

 

(ii)                                  If at any relevant time the Issuer’s senior unsecured debt shall not be rated by any two of Moody’s, S&P or a Substitute Rating Agency, the Rate of Interest shall be the Initial Rate of Interest plus 1.25 per cent. per annum with effect from (and including) the first Interest Payment Date on or after such time and up to (but excluding) the first Interest Payment Date on or immediately after such time as the Rate of Interest is able to be determined in accordance with the foregoing paragraph of this Condition 4(b) (Interest rate adjustment).

 

(iii)                               The Issuer will cause the occurrence of a Step Up Rating Change or a Step Down Rating Change to be notified to the Trustee, the Paying Agents and the Luxembourg Stock Exchange and notice thereof to be given in accordance with Condition 15 (Notices) as soon as possible after the occurrence of the Step Up Rating Change or the Step Down Rating Change (whichever the case may be) but in no event later than ten days thereafter.

 

(iv)                              Notwithstanding any other provision contained in these Conditions, there shall be no limit on the number of times that the Rate of Interest may be adjusted pursuant to a

 

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Rating Change during the term of the Notes, provided always that at no time during the term of the Notes will the Rate of Interest be lower than the Initial Interest Rate or higher than the Initial Interest Rate plus 1.25 per cent. per annum.

 

(v)                                 Without prejudice to any other Condition (including, for the avoidance of doubt, Condition 5(c) (Redemption at the option of the Noteholders)) and provided that the Issuer has otherwise complied with its obligations under this Condition 4(b), the occurrence of a Rating Change shall only affect the applicable Rate of Interest and the Noteholders shall not have any other rights or claims against the Issuer with respect thereto.

 

In these Conditions:

 

“Initial Rate of Interest” means the Rate of Interest set out in Condition 4(a) (Interest);

 

“Investment Grade Rating” means Baa3/BBB- or equivalent, or better from any Rating Agency;

 

“Moody’s” means Moody’s Investors Service Limited;

 

“Non-Investment Grade Rating” means Ba1/BB+ or equivalent, or worse from any Rating Agency;

 

“Rating Agency” means Moody’s or S&P or any of their respective successors or any rating agency (a “Substitute Rating Agency”) substituted for any of them by the Issuer from time to time with the prior written approval of the Trustee, such approval not to be unreasonably withheld or delayed;

 

“Rating Change” means a Step Up Rating Change and/or a Step Down Rating Change;

 

“S&P” means Standard and Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.;

 

“Step Down Rating Change” means the public announcement after a Step Up Rating Change by both of Moody’s and S&P of an increase in, or a confirmation of, the rating of the Issuer’s senior unsecured debt and/or the Notes (as applicable) to at least an Investment Grade Rating; and

 

“Step Up Rating Change” means the public announcement by either or both of Moody’s and S&P of a decrease in the rating of the Issuer’s senior unsecured debt and/or the Notes (as applicable) to a Non-Investment Grade Rating.  For the avoidance of doubt, any further decrease in the rating of the Issuer’s senior unsecured debt and/or the Notes (as applicable) from below a Non-Investment Grade Rating shall not constitute a Step Up Rating Change.

 

5.                                  REDEMPTION AND PURCHASE

 

(a)                                 Scheduled redemption

 

Unless previously redeemed, or purchased and cancelled, the Notes will be redeemed at 100 per cent. of their principal amount together with any accrued and unpaid interest on 5 March 2020 (the “Maturity Date”), subject as provided in Condition 6 (Payments).

 

(b)                                 Redemption for tax reasons

 

The Notes may be redeemed at the option of the Issuer in whole, but not in part, at any time, on any Interest Payment Date, on giving not less than 30 nor more than 60 days’ notice to the Noteholders (which notice shall be irrevocable), at 100 per cent. of their principal amount, together with any accrued and unpaid interest

 

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to (but excluding) the date fixed for redemption, if, immediately before giving such notice, the Issuer satisfies the Trustee that:

 

(i)                                     the Issuer (or, if the Guarantees were called, any Guarantor) has or will become obliged to pay additional amounts as provided or referred to in Condition 7 (Taxation) as a result of any change in, or amendment to, the laws or regulations of the Republic of Italy, the United States (including with respect to to any withholding or deduction imposed on or in respect of such Note or Coupon pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code, as amended, the U.S. Treasury Regulations promulgated thereunder (“FATCA”)), Luxembourg or any political subdivision thereof or any agency or authority thereof or therein having power to tax, or any change in the application or official interpretation of such laws or regulations (including a holding by a court of competent jurisdiction), which change or amendment becomes effective on or after 5 December 2012; and

 

(ii)                                  such obligation cannot be avoided by the Issuer (or the relevant Guarantor, as the case may be) taking reasonable measures available to it;

 

provided, however, that no such notice of redemption shall be given (i) earlier than 90 days prior to the earliest date on which the Issuer (or the relevant Guarantor, as the case may be) would be obliged to pay such additional amounts if a payment in respect of the Notes were then payable and (ii) unless at the time such notice is given, the obligation to pay additional amounts remains in effect.

 

Prior to the publication of any notice of redemption pursuant to this paragraph, the Issuer shall deliver to the Trustee:

 

(A)                               a certificate signed by the Chief Financial Officer of the Issuer or two Authorised Signatories (as defined in the Trust Deed) of the Issuer or, as the case may be, of the relevant Guarantor stating that the Issuer is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Issuer so to redeem have occurred; and

 

(B)                               an opinion in form and substance satisfactory to the Trustee of independent legal or tax advisers of recognised standing to the effect that the Issuer (or the relevant Guarantor, as the case may be) has or will become obliged to pay such additional amounts as a result of such change or amendment.

 

The Trustee shall be entitled to accept such certificate and opinion without further inquiry as sufficient evidence of the satisfaction of the circumstances set out in (i) and (ii) above, in which event they shall be conclusive and binding on the Noteholders and the Couponholders.

 

Upon the expiry of any such notice as is referred to in this Condition 5(b) (Redemption for tax reasons), the Issuer shall be bound to redeem the Notes in accordance with this Condition 5(b) (Redemption for tax reasons).

 

(c)                                  Redemption at the option of the Noteholders

 

A put event (each, a “Put Event”) will be deemed to occur if:

 

(i)

 

(A)                               Lottomatica Change of Control

 

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any person or persons acting in concert or any person or persons acting on behalf of such person(s), other than a Principal Shareholder (x) shall become the Majority Holder or (y) shall acquire or exercise control of the Issuer pursuant to Article 93 of the Italian Financial Act (each such event being a “Lottomatica Change of Control”);

 

(B)                               GTECH Change of Control

 

the Issuer ceases to control GTECH Corporation directly or indirectly, or any person or persons (other than the Issuer directly or indirectly) acting in concert or any person or persons acting on behalf of such person(s) shall become the beneficial owner, directly or indirectly, of shares in the capital of GTECH Corporation carrying more than 50 per cent. of the voting rights normally exercisable at a general meeting of GTECH Corporation (such event being a “GTECH Change of Control”); or

 

(C)                               Disposal of assets

 

there is a sale, lease, transfer or other disposal to a Person (other than the Issuer or a Guarantor) of all or substantially all of the assets of the Issuer and its Subsidiaries taken as a whole, whether in a single transaction or a series of related transactions (such event being a “Disposal Event”); and

 

(ii)                                  on the date (the “Relevant Announcement Date”) that is (x) the date of the first public announcement of the Lottomatica Change of Control, GTECH Change of Control or Disposal Event or, if earlier, (y) the date of the earliest Relevant Potential Change of Control Announcement (if any):

 

(A)                               the Notes carry an Investment Grade Rating from any Rating Agency and such rating is, within the Change of Control Period, either downgraded to a Non-Investment Grade Rating or withdrawn and is not, within the Change of Control Period, subsequently (in the case of a downgrade) reinstated or upgraded to an Investment Grade Rating by such Rating Agency;

 

(B)                               the Notes carry a Non-Investment Grade Rating from any Rating Agency and such rating is, within the Change of Control Period, either downgraded by one or more notches (for illustration, BB+ to BB being one notch) or withdrawn and is not, within the Change of Control Period, subsequently reinstated or upgraded to its earlier rating or better by such Rating Agency; or

 

(C)                               the Notes carry no rating, and no Rating Agency assigns, within the Change of Control Period, an Investment Grade Rating to the Notes; and

 

(iii)                               in making any decision to downgrade or withdraw a credit rating pursuant to paragraph (ii) above, the relevant Rating Agency announces publicly or confirms in writing to the Issuer or the Trustee that such decision(s) are in connection with, in anticipation of or resulted from, in whole or in part, the occurrence of the Lottomatica Change of Control, the GTECH Change of Control or the Disposal Event, as the case may be, or the Relevant Potential Change of Control Announcement.

 

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If a Put Event occurs, the holder of each Note will have the option (a “Put Option”) (unless prior to the giving of the relevant Put Event Notice (as defined below) the Issuer has given notice of redemption under Condition 5(b) (Redemption for tax reasons) above) to require the Issuer to redeem or, at the Issuer’s option, purchase (or procure the purchase of) that Note on the Put Date (as defined below) at 100 per cent. of its principal amount together with any accrued and unpaid interest to (but excluding) the Put Date (the “Put Amount”).

 

Promptly upon the Issuer becoming aware that a Put Event has occurred the Issuer shall, and at any time upon the Trustee becoming similarly so aware the Trustee may, and if so requested by the holders of at least one quarter in principal amount of the Notes then outstanding or if so directed by an Extraordinary Resolution of the Noteholders, shall (subject in each case to the Trustee being indemnified, secured and/or prefunded to its satisfaction) give notice (a “Put Event Notice”) to the Noteholders in accordance with Condition 15 (Notices), specifying the nature of the Put Event and the procedure for exercising the Put Option.

 

To exercise the Put Option, the holder of the Note must deliver such Note at the Specified Office of any Paying Agent at any time during normal business hours of such Paying Agent falling within the period (the “Put Period”) of 30 days after a Put Event Notice is given, accompanied by a duly signed and completed notice of exercise in the form (for the time being current) obtainable from the specified office of any Paying Agent (a “Change of Control Put Notice”).  The Note should be delivered together with all Coupons appertaining thereto on the date which is seven days after the expiration of the Put Period (the “Put Date”).  The Paying Agent to which such Note and Change of Control Put Notice are delivered will issue to the Noteholder concerned a non-transferable receipt in respect of the Note so delivered.  Payment in respect of any Note so delivered will be made, if the holder duly specified a bank account in the Change of Control Put Notice to which payment is to be made, on the Put Date by transfer to that bank account and, in every other case, on or after the Put Date against presentation and surrender or (as the case may be) endorsement of such receipt at the specified office of any Paying Agent.  A Change of Control Put Notice, once given, shall be irrevocable.  For the purposes of these Conditions, receipts issued pursuant to this Condition 5(c) (Redemption at the option of the Noteholders) shall be treated as if they were Notes.  The Issuer shall redeem or purchase (or procure the purchase of) the relevant Notes on the Put Date unless previously redeemed (or purchased) and cancelled.

 

If 85 per cent. or more in principal amount of the Notes then outstanding have been redeemed or purchased pursuant to this Condition 5(c) (Redemption at the option of the Noteholders), the Issuer may, on giving not less than 30 nor more than 60 days’ notice to the Noteholders in accordance with Condition 15 (Notices) (such notice being given within 30 days after the Put Date), redeem or purchase (or procure the purchase of), at its option, all but not some only of the remaining outstanding Notes at their principal amount, together with any accrued and unpaid interest to (but excluding) the date fixed for such redemption or purchase.

 

If the rating designations employed by any of Moody’s or S&P are changed from those which are described in paragraph (ii) of the definition of “Put Event” above, or if a rating is procured from a Substitute Rating Agency, the Issuer shall determine, with the agreement of the Trustee, the rating designations of Moody’s or S&P or such Substitute Rating Agency (as appropriate) as are most equivalent to the prior rating designations of Moody’s or S&P and this Condition 5(c) (Redemption at the option of the Noteholders) shall be construed accordingly.

 

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The Trustee is under no obligation to ascertain whether a Put Event, Lottomatica Change of Control, GTECH Change of Control or Disposal Event or any event which could lead to the occurrence of or could constitute a Put Event, a Lottomatica Change of Control, a GTECH Change of Control or a Disposal Event has occurred, or to seek any confirmation from any Rating Agency pursuant to Condition 5(c)(iii) above, and, until it shall have actual knowledge or notice pursuant to the Trust Deed to the contrary, the Trustee may assume that no Put Event, Lottomatica Change of Control, GTECH Change of Control or Disposal Event or other such event has occurred.

 

In this Condition 5(c) (Redemption at the option of the Noteholders):

 

“Change of Control Period” means the period commencing on the Relevant Announcement Date and ending 120 days after the Lottomatica Change of Control, GTECH Change of Control or Disposal Event, as the case may be (or such longer period for which the Notes are under consideration (such consideration having been announced publicly within the period ending 120 days after the Lottomatica Change of Control, GTECH Change of Control or Disposal Event, as the case may be) for rating review or, as the case may be, rating by a Rating Agency, such period not to exceed 60 days after the public announcement of such consideration);

 

“Italian Financial Act” means Legislative Decree No. 58 of 24 February 1998, as amended;

 

“Majority Holder” means the beneficial owner, directly or indirectly of, (x) more than 50 per cent. of the issued or allotted ordinary share capital of the Issuer or (y) such number of securities (titoli) of the Issuer carrying more than 50% of the voting rights as defined under and pursuant to Article 105 of the Italian Financial Act;

 

“Principal Shareholder” means De Agostini S.p.A., its Subsidiaries or B&D Holding di Marco Drago e C. S.a.p.a (“B&D Holding”) or any entity controlled by one or more of the same beneficial holders that directly or indirectly control B&D Holding at the Issue Date; provided that or the purposes of this definition, an entity or B&D Holding shall be treated as being controlled, directly or indirectly, by any such holder(s) if the latter (whether by way of ownership of shares, proxy, contract, agency or otherwise) have or has, as applicable, the power to (i) appoint or remove all, or the majority, of its directors or other equivalent officers or (ii) direct its operating and financial policies; and

 

“Relevant Potential Change of Control Announcement” means any public announcement or statement by the Issuer, any actual or potential bidder or any adviser acting on behalf of any actual or potential bidder or purchaser relating to any potential Lottomatica Change of Control, GTECH Change of Control or Disposal Event, as the case may be, where within 180 days following the date of such announcement or statement, the Lottomatica Change of Control, GTECH Change of Control or Disposal Event occurs.

 

(d)           Redemption at the option of the Issuer

 

The Issuer may, having given not less than 30 nor more than 60 days’ notice to the Noteholders in accordance with Condition 15 (Notices) (which notice shall be irrevocable and shall specify the date fixed for redemption), redeem all, but not some only, of the Notes, on 6 January 2013 or at any time thereafter (the “Optional Redemption Date”) at a redemption price per Note equal to the greater of:  (i) 100 per cent. of the principal amount of the Note; or (ii) as determined by the Reference Dealers (as defined below), the sum of the then current values of the remaining scheduled payments of principal and interest (not including any interest accrued on the Notes to, but excluding, the Optional Redemption Date)  discounted to the

 

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Optional Redemption Date on an annual basis (based on the actual number of days elapsed divided by 365 or (in the case of a leap year) by 366) at the Reference Dealer Rate  (as defined below), plus 0.50 per cent., plus, in each case, any interest accrued on the Notes to, but excluding, the Optional Redemption Date (the “Call Amount”).  Upon the expiry of such notice, the Issuer shall redeem the Notes in accordance with this Condition 5(d).

 

In this Condition 5(d) (Redemption at the option of the Issuer):

 

“Reference Bund” means €22,000,000,000 3.25 per cent. German Federal Government Bonds of Bundesrepublik Deutschland due 4 January 2020 with ISIN DE0001135390;

 

“Reference Dealers” means Banca IMI S.p.A., Credit Suisse Securities (Europe) Limited, Deutsche Bank AG, London Branch, Merrill Lynch International, UniCredit Bank AG or their successors; and

 

“Reference Dealer Rate” means, with respect to the Reference Dealers and the Optional Redemption Date, the average of the five quotations of the average mid market annual yield to maturity of the Reference Bund, or, if the applicable security is no longer outstanding, a similar security in the reasonable judgement of each Reference Dealer, at 11:00 a.m.  London time on the third business day in London preceding such Optional Redemption Date, quoted in writing to the Issuer and the Trustee by the Reference Dealers.

 

(e)          No other redemption

 

The Issuer shall not be entitled to redeem the Notes otherwise than as provided in Condition 5(a) (Scheduled redemption), 5(b) (Redemption for tax reasons) and 5(d) (Redemption at the option of the Issuer) above.

 

(f)            Purchase

 

The Issuer, any Guarantor or any of their respective Subsidiaries may at any time purchase Notes in the open market or otherwise and at any price, provided that all unmatured Coupons are purchased therewith.

 

(g)           Cancellation

 

All Notes so redeemed or purchased by the Issuer, any Guarantor or any of their respective Subsidiaries and any unmatured Coupons attached to or surrendered with them shall be cancelled and may not be reissued or resold.  Pursuant to Article 2415 of the Italian Civil Code, none of the Issuer, any Guarantor or any of their respective Subsidiaries shall be entitled to vote at any meetings of Noteholders in relation to the Notes redeemed or held by it.

 

(h)           Timing of Notices

 

If more than one notice of redemption is given by the Issuer pursuant to these Conditions, or a Noteholder delivers a Change of Control Put Notice pursuant to Condition 5(b) (Redemption at the Option of Noteholders), the first in time of such notices shall prevail.

 

6.             PAYMENTS

 

(a)           Principal

 

Payments of principal shall be made only against presentation and (provided that payment is made in full) surrender of Notes at the Specified Office of any Paying

 

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Agent outside the United States by Euro cheque drawn on, or by transfer to a Euro account (or other account to which Euro may be credited or transferred) maintained by the payee outside the United States with, a bank in a city in which banks have access to the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET2) System (the “TARGET System”).

 

(b)           Interest

 

Payments of interest shall, subject to Condition 6(f) (Payments other than in respect of matured Coupons) below, be made only against presentation and (provided that payment is made in full) surrender of the appropriate Coupons at the Specified Office of any Paying Agent outside the United States in the manner described in Condition 6(a) (Principal) above.

 

(c)           Payments subject to fiscal laws

 

All payments in respect of the Notes are subject in all cases to any applicable fiscal or other laws and regulations in the place of payment, but without prejudice to the provisions of Condition 7 (Taxation).  No commissions or expenses shall be charged to the Noteholders or Couponholders in respect of such payments.

 

(d)           Unmatured Coupons

 

Upon any Note becoming due and payable prior to the due date for redemption, all unmatured Coupons (if any) appertaining thereto will become void and no further amounts will be payable with respect thereto.

 

(e)           Payments on business days

 

If the due date for payment of any amount in respect of any Note or Coupon is not a business day in the place of presentation, the holder shall not be entitled to payment in such place of the amount due until the next succeeding business day in such place and shall not be entitled to any further interest or other payment in respect of any such delay.  In this paragraph, “business day” means, in respect of any place of presentation, any day on which banks are open for presentation and payment of bearer debt securities and for dealings in foreign currencies in such place of presentation and, in the case of payment by transfer to a Euro account as referred to above, on which the TARGET System is open.

 

(f)            Payments other than in respect of matured Coupons

 

Payments of interest other than in respect of matured Coupons shall be made only against presentation of the relevant Notes at the Specified Office of any Paying Agent outside the United States in the manner described in Condition 6(a) (Principal) above.

 

(g)           Partial payments

 

If a Paying Agent makes a partial payment in respect of any Note or Coupon presented to it for payment, such Paying Agent will endorse thereon a statement indicating the amount and date of such payment.

 

7.             TAXATION

 

(a)           Gross Up

 

All payments in respect of principal (including any Call Amount or Put Amount, if applicable) and interest in respect of the Notes and the Coupons or under the Guarantees by the Issuer or any Guarantor, as the case may be, will be made free and

 

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clear of, and without withholding or deduction for or on account of, any present or future taxes, duties, assessments or governmental charges of whatever nature (“Taxes”) imposed or levied by or on behalf of any of the Relevant Taxing Jurisdictions, unless the withholding or deduction of such taxes, duties, assessments or governmental charges is required by law.  In that event, the Issuer or, as the case may be, the relevant Guarantor will pay such additional amounts as may be necessary in order that the net amounts received by the holders of the Notes or Coupons after such withholding or deduction shall equal the respective amounts of principal (including any Call Amount or Put Amount, if applicable) and interest which would have been received in respect of the Notes or (as the case may be) Coupons, in the absence of such withholding or deduction, except that no additional amounts shall be payable with respect to any payment in respect of any Note or Coupon:

 

(i)            (a) to, or to a third party on behalf of, a holder who is subject to such Taxes, in respect of such Note or Coupon by reason of its having some connection (otherwise than merely by holding the Note or Coupon) with the Republic of Italy or, in the case of payments made by any Guarantor under its respective Guarantee, the United States or Luxembourg, as the case may be; (b) with respect to any Note or Coupon presented for payment in the Republic of Italy; (c) for or on account of imposta sostitutiva pursuant to Legislative Decree No. 239 of 1 April 1996, Legislative Decree No. 461 of 21 November 1997 or related implementing regulations; (d) in all circumstances in which the requirements and procedures of such Legislative Decree No. 239 have not been met or complied with (except where due to the actions or omissions of the Issuer or its agents); or (e) to, or to a third party on behalf of, a holder who is entitled to avoid such withholding or deduction in respect of such Note or Coupon by making a declaration of non-residence or other similar claim for exemption to the relevant taxing authority but has failed to do so; or

 

(ii)           to a holder who is a non-Italian resident individual or legal entity which is resident in a tax haven country (as defined and listed in the Ministry of Finance Decree of 23 January 2002, as amended and supplemented from time to time or in a country which does not allow for an adequate exchange of information with the Italian tax authorities (as defined and listed in the Ministry of Finance Decree of 4 September 1996, as amended from time to time); or

 

(iii)          for any Note or Coupon presented for payment more than 30 days after the Relevant Date except to the extent that the holder thereof would have been entitled to such additional amount on presenting the same for payment on the thirtieth such day; or

 

(iv)          where such withholding or deduction is imposed on a payment to an individual and is required to be made pursuant to European Council Directive 2003/48/EC or any law implementing or complying with, or introduced in order to conform to, such Directive; or

 

(v)           held by or on behalf of a Noteholder or Couponholder who would have been able to lawfully avoid (but has not so avoided) such deduction or withholding by complying with any statutory requirements; or

 

(vi)          presented for payment by or on behalf of a holder who would have been able to avoid such withholding or deduction by presenting the relevant Note or Coupon to another Paying Agent in a Member State of the European Union, without prejudice to the option of the Issuer to redeem the Notes pursuant to, and subject to the conditions of, Condition 5(b) (Redemption for tax reasons).

 

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(b)          Taxing Jurisdiction

 

As used in these Conditions, “Relevant Date” in respect of any Note or Coupon means the date on which payment in respect thereof first becomes due or (if any amount of the money payable is improperly withheld or refused) the date on which payment in full of the amount outstanding is made or (if earlier) the date on which notice is duly given to the holders of Notes in accordance with Condition 15 (Notices) that, upon further presentation of the Note or Coupon being made in accordance with the Conditions, such payment will be made, provided that payment is in fact made upon such presentation; and “Relevant Taxing Jurisdiction” means the Republic of Italy, the United States or Luxembourg or any political subdivision or any agency or authority thereof or therein having power to tax or, in any case, any other jurisdiction or any political subdivision or any agency or authority thereof or therein having power to tax to which the Issuer or a Guarantor, as the case may be, becomes subject in respect of payments made by it in respect of principal (including any Call Amount or Put Amount, if applicable) and interest on the Notes and Coupons.

 

References in these Conditions to “principal” and/or “interest” shall be deemed to include any additional amounts which may be payable under this Condition 7 (Taxation).

 

8.             EVENTS OF DEFAULT

 

If any of the following events occurs, then the Trustee at its discretion may and, if so requested in writing by holders of at least one quarter of the aggregate principal amount of the outstanding Notes or if so directed by an Extraordinary Resolution (as defined in the Trust Deed), shall (subject, in the case of the occurrence of any of the events mentioned in paragraphs (b) (Breach of other obligations), (d) (Unsatisfied judgment), (e) (Security enforced), (h) (Analogous event) (only in relation to events referred to in paragraphs (d) and (e) below), (i) (Failure to take action, etc.) or (j) (Unlawfulness) and, in relation only to a Material Subsidiary (which is not a Guarantor), paragraphs (c) (Cross-default of Issuer, any Guarantor or any Material Subsidiary) or (g) (Winding up, etc.) below, to the Trustee having certified in writing that the happening of such event is in its opinion materially prejudicial to the interests of the Noteholders and, in all cases, to the Trustee having been indemnified, provided with security and/or prefunded to its satisfaction) give written notice to the Issuer declaring the Notes to be immediately due and payable, whereupon they shall become immediately due and payable at their principal amount together with any accrued and unpaid interest without further action or formality:

 

(a)           Non-payment

 

The Issuer fails to pay (i) any amount of principal or premium in respect of the Notes, (ii) the Call Amount or (iii) the Put Amount on the due date for payment thereof or fails to pay any amount of interest in respect of the Notes within five business days of the due date for payment thereof.  In this paragraph, “business day” means any day on which banks are open for presentation and payment of bearer debt securities and for dealings in foreign currencies in such place of presentation and on which the TARGET System is open; or

 

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(b)           Breach of other obligations

 

The Issuer or any Guarantor defaults in the performance or observance of any of its other obligations under or in respect of the Notes or the Trust Deed and such default (i) is, in the opinion of the Trustee, incapable of remedy or (ii) being a default which is, in the opinion of the Trustee, capable of remedy remains unremedied for 30 days or such longer period as the Trustee may agree after the Trustee has given written notice thereof to the Issuer and the Guarantors; or

 

(c)           Cross-default of Issuer, any Guarantor or any Material Subsidiary:

 

(i)            any Indebtedness of the Issuer, any Guarantor or any Material Subsidiary is not paid when due (as extended by any originally applicable grace period);

 

(ii)           any such Indebtedness becomes due and payable prior to its stated maturity   (as extended by any originally applicable grace period) otherwise than at the option of the Issuer, the relevant Guarantor or (as the case may be) the relevant Material Subsidiary or (provided that no event of default, howsoever described, has occurred) any person entitled to such Indebtedness; or

 

(iii)          the Issuer, any Guarantor or any Material Subsidiary fails to pay when due (the date when the payment is due being the “Due Date”) (as extended by any originally applicable grace period) any amount payable by it under any Specified Guarantee of any Indebtedness, unless such payment (x) is contested in good faith by the Issuer, the relevant Guarantor or the relevant Material Subsidiary by all appropriate means, including (where applicable) an application to a competent court for a declaration that such payment is not due and (y) is, within 60 calendar days of the Due Date, (xx) either dismissed or forgiven by the creditor, (yy) formally determined by the appropriate authority (including where applicable by such competent court) not to be due or (zz) made by (or on behalf of) the Issuer, Guarantor or Material Subsidiary;

 

provided that the amount of Indebtedness referred to in sub-paragraph (i) and/or sub-paragraph (ii) above and/or the amount payable under any Specified Guarantee referred to in sub-paragraph (iii) above individually or in the aggregate exceeds €50 million (or its equivalent in any other currency or currencies); or

 

(d)           Unsatisfied judgment

 

One or more judgment(s) or order(s) for the payment of an amount in excess of €50 million (or its equivalent in any other currency or currencies) whether individually or in aggregate, is rendered against the Issuer, any Guarantor or any Material Subsidiary and continue(s) unsatisfied and unstayed for a period of 60 days after the date(s) thereof or, if later, the date therein specified for payment; or

 

(e)           Security enforced

 

A secured party takes possession, or a receiver, manager or other similar officer is appointed, of the whole or any substantial (in the opinion of the Trustee) part of the undertaking, assets and revenues of the Issuer, any Guarantor or any Material Subsidiary; or

 

(f)            Insolvency, etc.

 

(i) the Issuer, any Guarantor or any Material Subsidiary becomes insolvent or is unable to pay its debts as they fall due, (ii) an administrator or liquidator of the Issuer, any Guarantor or any Material Subsidiary or the whole or any/a substantial (in the opinion of the Trustee) part of the undertaking, assets and revenues of the Issuer, any Guarantor or any Material Subsidiary is appointed (or application for any such

 

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appointment is made), (iii) the Issuer, any Guarantor or any Material Subsidiary takes any action for a readjustment or deferment of any of its obligations or makes a general assignment or an arrangement or composition with or for the benefit of its creditors or declares a moratorium in respect of any of its Indebtedness or any Specified Guarantee of any Indebtedness given by it, (iv) the Issuer, any Guarantor or any Material Subsidiary ceases or threatens to cease to carry on all or any substantial part of its business (other than for the purpose of a Permitted Restructuring), or (v) the Issuer, any Guarantor or any Material Subsidiary suspends its payments generally; or

 

(g)           Winding up, etc.

 

An order is made or an effective resolution is passed for the winding up, liquidation or dissolution of the Issuer, any Guarantor or any Material Subsidiary (other than for the purpose of a Permitted Restructuring); or

 

(h)           Analogous event

 

Any event occurs in relation to the Issuer, any Guarantor or any Material Subsidiary (other than for the purpose of a Permitted Restructuring) which under the governing laws of their respective jurisdictions has an analogous effect to any of the events referred to in paragraphs (d) (Unsatisfied judgment) to (g) (Winding up, etc.) above; or

 

(i)            Failure to take action, etc.

 

Any action, condition or thing at any time required to be taken, fulfilled or done in order (i) to enable the Issuer or any Guarantor lawfully to enter into, exercise its rights and perform and comply with its obligations under and in respect of the Notes and/or the Trust Deed, (ii) to ensure that those obligations are legal, valid, binding and enforceable and (iii) to make the Notes, the Coupons and the Trust Deed admissible in evidence in the courts of the Republic of Italy, the United States or Luxembourg, as the case may be is not taken, fulfilled or done; or

 

(j)            Unlawfulness

 

It is or will become unlawful for the Issuer or any Guarantor to perform or comply with any of its obligations under or in respect of the Notes or the Trust Deed; or

 

(k)           Guarantee

 

Any of the Guarantees is not (or is claimed by any Guarantor not to be) in full force and effect (other than as a result of a Permitted Restructuring).

 

The Issuer shall give to the Trustee, as soon as reasonably practicable after the acquisition or disposal of any company which thereby becomes or ceases to be a Material Subsidiary or after any transfer is made to any Subsidiary which thereby becomes a Material Subsidiary, a certificate from the Chief Financial Officer of the Issuer or two Authorised Signatories of the Issuer to such effect.

 

In these Conditions:

 

“Consolidated Assets” means the aggregate value of the assets of the Issuer and its Subsidiaries, as disclosed in the audited consolidated financial statements of the Issuer and its Subsidiaries most recently prepared before the time when the determination or examination is being made as required by and in accordance with the terms hereof;

 

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“Consolidated Revenues” means the aggregate revenues of the Issuer and its Subsidiaries as disclosed in the audited consolidated financial statements of the Issuer and its Subsidiaries most recently prepared before the time when the determination or examination is being made as required by and in accordance with the terms hereof;

 

“Indebtedness” means any indebtedness of any Person for moneys borrowed or raised;

 

“Material Subsidiary” means, as of any date, any Subsidiary of the Issuer (a) which (i) accounts for 10 per cent. or more of the Consolidated Assets as of such date; or (ii) accounted for 10 per cent. or more of the Consolidated Revenues for the year ended on or immediately prior to such date, or (b) which assumes all the assets and liabilities of a Subsidiary of the Issuer which immediately prior to such assumption is a Material Subsidiary as a Substituted Obligor pursuant to a Permitted Restructuring, and such Substituted Obligor shall cease to be a Material Subsidiary pursuant to this paragraph (b) only on the date on which the consolidated financial statements of the Issuer and its Subsidiaries for the financial period current at the date of such Permitted Restructuring have been prepared, but so that such Substituted Obligor may be a Material Subsidiary on or at any time after the date on which such financial statements have been prepared by virtue of paragraph (a) of this definition;

 

“Permitted Restructuring” means either:

 

(a) any solvent amalgamation,  merger,  “fusione” or “scissione” (such expressions bearing the meanings ascribed to them by the laws of the Republic of Italy), reconstruction or similar arrangement on terms approved in writing by the Trustee or by an Extraordinary Resolution of the Noteholders; or

 

(b) any solvent amalgamation, merger, “fusione” (such expression bearing the meaning ascribed to it by the laws of the Republic of Italy), reconstruction or similar arrangement of  a Guarantor or a Material Subsidiary with (or with and into) the Issuer, any other Guarantor or any other Subsidiary of the Issuer under which:

 

(i) all the assets and liabilities of such Guarantor or such Material Subsidiary, as the case may be, are assumed by the entity resulting from such solvent amalgamation, merger or reconstruction (the “Substituted Obligor”) and such Guarantor or such Material Subsidiary ceases to exist; and

 

(ii) (in the case of a Guarantor) the Substituted Obligor (unless the Substituted Obligor is the Issuer or another Guarantor) assumes the obligations of such Guarantor in respect of its Guarantee, or (in the case of a Material Subsidiary unless the Substituted Obligor is the Issuer) the Substituted Obligor would thereby become a Material Subsidiary; and

 

(iii) certain other conditions specified in the Trust Deed have been complied with;

 

“Specified Guarantee” means, in relation to any Indebtedness of any Person, any obligation of another Person to pay such Indebtedness including (without limitation):

 

(a)           any obligation to purchase such Indebtedness;

 

(b)           any obligation to lend money, to purchase or subscribe shares or other securities or to purchase assets or services in order to provide funds for the payment of such Indebtedness;

 

(c)           any indemnity against the consequences of a default in the payment of such Indebtedness; and

 

(d)           any other agreement to be responsible for such Indebtedness.

 

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9.             PRESCRIPTION

 

Claims for principal shall become void unless the relevant Notes are presented for payment within ten years of the appropriate Relevant Date.  Claims for interest shall become void unless the relevant Coupons are presented for payment within five years of the appropriate Relevant Date.

 

10.          REPLACEMENT OF NOTES AND COUPONS

 

If any Note or Coupon is lost, stolen, mutilated, defaced or destroyed, it may be replaced at the Specified Office of the Principal Paying Agent or the Paying Agent having its Specified Office in Luxembourg, subject to all applicable laws, listing authority requirements and stock exchange requirements, upon payment by the claimant of the expenses incurred in connection with such replacement and on such terms as to evidence, security, indemnity and otherwise as the Issuer and the Guarantors may reasonably require.  Mutilated or defaced Notes or Coupons must be surrendered before replacements will be issued.

 

11.          TRUSTEE AND PAYING AGENTS

 

Under the Trust Deed, the Trustee is entitled to be indemnified and relieved from responsibility in certain circumstances and to be paid its costs and expenses in priority to the claims of the Noteholders.  In addition, the Trustee is entitled to enter into business transactions with the Issuer and any entity relating to the Issuer without accounting for any profit.

 

In connection with the exercise by the Trustee of any of its trusts, powers, authorities and discretions (including, without limitation, any modification, waiver, authorisation, determination or substitution), the Trustee shall have regard to the general interests of the Noteholders as a class but shall not have regard to any interests arising from circumstances particular to individual Noteholders or Couponholders (whatever their number) and, in particular but without limitation, shall not have regard to the consequences of any such exercise for individual Noteholders or Couponholders (whatever their number) resulting from their being for any purpose domiciled or resident in, or otherwise connected with, or subject to the jurisdiction of, any particular territory or any political sub-division thereof and the Trustee shall not be entitled to require, nor shall any Noteholder or Couponholder be entitled to claim, from the Issuer, the Guarantors, the Trustee or any other person any indemnification or payment in respect of any tax consequence of any such exercise upon individual Noteholders or Couponholders except to the extent already provided for in Condition 7 (Taxation) and/or any undertaking given in addition to, or in substitution for, Condition 7 (Taxation) pursuant to the Trust Deed.

 

In acting under the Agency Agreement and in connection with the Notes and the Coupons, the Paying Agents act solely as agents of the Issuer and the Guarantors and (to the extent provided therein) the Trustee and do not assume any obligations towards or relationship of agency or trust for or with any of the Noteholders or Couponholders.

 

The initial Paying Agents and their initial Specified Offices are listed below.  The Issuer and the Guarantors reserve the right (with the prior approval of the Trustee) at any time to vary or terminate the appointment of any Paying Agent and to appoint a successor principal paying agent and additional or successor paying agents; provided, however, that the Issuer and the Guarantors shall at all times maintain (a) a principal paying agent, (b) a paying agent in Luxembourg and (c) a paying agent in an EU Member State that will not be obliged to withhold or deduct tax pursuant to the EU Savings Directive.

 

Notice of any termination or appointment and of any change in the specified offices of the Paying Agents will be given to the Noteholders in accordance with Condition 15 (Notices).

 

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12.          MEETINGS OF NOTEHOLDERS; NOTEHOLDERS’ REPRESENTATIVE; MODIFICATION

 

(a)           Meetings of Noteholders

 

The Trust Deed contains provisions for convening Meetings (as defined in the Trust Deed) to consider matters relating to the Notes, including the modification of any provision of these Conditions, in accordance with Article 2415 of the Italian Civil Code and the applicable provisions of the Italian Financial Act on listed companies.  Any such modification may be made if sanctioned by an Extraordinary Resolution.  Such a Meeting may be convened, either as a Single Call Meeting (as defined in the Trust Deed) or as a Multiple Call Meeting (as defined in the Trust Deed), by the directors of the Issuer, the Trustee or the Noteholders’ Representative (as described below) and the Issuer and the Noteholders’ Representative are obliged to do so upon the request in writing of Noteholders holding not less than one-twentieth of the aggregate principal amount of the outstanding Notes.  Such a Meeting will be validly held if attended by one or more Voters (as defined in the Trust Deed) representing or holding (i) in the case of a Single Call Meeting, at least one fifth of the aggregate principal amount of the outstanding Notes or (ii) in the case of a Multiple Call Meeting: (A) in the case of an Initial Meeting (as defined in the Trust Deed), at least one half of the aggregate principal amount of the outstanding Notes or (B) in the case of a Second Meeting (as defined in the Trust Deed) following adjournment of the Initial Meeting for want of quorum, more than one third of the aggregate principal amount of the outstanding Notes or (C) in the case of a Third Meeting or further Meetings, following a further adjournment for want of quorum, at least one fifth of the aggregate principal amount of the outstanding Notes provided, however, that the quorum, both in the case of a Single Call Meeting and in the case of a Multiple Call Meeting, shall always be at least one half of the aggregate principal amount of the outstanding Notes for the purposes of considering a Reserved Matter (as defined below) and provided further that the by-laws of the Issuer may from time to time require a higher quorum. Both in the case of a Single Call Meeting and in the case of a Multiple Call Meeting, the majority required to pass a resolution at any meeting convened to vote on an Extraordinary Resolution (including any meeting convened following adjournment of the previous meeting for want of quorum) will be one or more Voters holding or representing at least two thirds of the aggregate principal amount of the Notes represented at the Meeting; provided, however, that certain proposals (as set out in Schedule 3 (Provisions for Meetings of the Noteholders) to the Trust Deed) (including, inter alia,  any proposal to change any date fixed for payment of principal or interest in respect of the Notes, to reduce the amount of principal or interest payable on any date in respect of the Notes, to alter the method of calculating the amount of any payment in respect of the Notes or the date for any such payment, to change the currency of payments under the Notes or to change the quorum requirements relating to meetings or the majority required to pass an Extraordinary Resolution (each, a “Reserved Matter”)) may only be sanctioned by an Extraordinary Resolution passed at a Meeting by one or more Voters holding or representing more than one half of the aggregate principal amount of the Notes represented at the Meeting but at least one half of the aggregate principal amount of the outstanding Notes.  Any Extraordinary Resolution duly passed at any such Meeting shall be binding on all the Noteholders and Couponholders, whether present or not.

 

The Trust Deed provides that, save for decisions in respect of those matters which are required to be addressed in a meeting of Noteholders pursuant to Article 2415 of the Italian Civil Code, a resolution in writing signed by or on behalf of the holders of not less than 90 per cent. in principal amount of the Notes outstanding shall for all purposes be as valid and effective as an Extraordinary Resolution passed at a meeting

 

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of Noteholders duly convened and held.  Such a resolution in writing may be contained in one document or several documents in the same form, each signed by or on behalf of one or more Noteholders.

 

(b)                                  Noteholders’ Representative

 

Pursuant to Articles 2415 and 2417 of the Italian Civil Code, a Noteholders’ Representative (rappresentante comune) (the “Noteholders’ Representative”) may be appointed, inter alia, to represent the interests of the Noteholders in respect of the Notes, such appointment to be made by an Extraordinary Resolution or by an order of a competent court at the request of one or more Noteholders or the directors of the Issuer.  The Noteholders’ Representative shall have the powers and duties set out in Article 2418 of the Italian Civil Code.

 

(c)                                   Modification

 

The Trustee may, without the consent of the Noteholders or Couponholders agree to any modification of these Conditions, the Trust Deed or the Agency Agreement (other than in respect of a Reserved Matter) which is, in the opinion of the Trustee, proper to make if, in the opinion of the Trustee, such modification will not be materially prejudicial to the interests of Noteholders and to any modification of the Notes, the Trust Deed or the Agency Agreement which is of a formal, minor or technical nature or is to correct a manifest or proven error.

 

In addition, the Trustee may, without the consent of the Noteholders or Couponholders authorise or waive any proposed breach or breach of the Notes or the Trust Deed (other than a proposed breach or breach relating to the subject of a Reserved Matter or other matters pursuant to Article 2415, paragraph 1 of the Italian Civil Code) if, in the opinion of the Trustee, the interests of the Noteholders will not be materially prejudiced thereby.

 

Any such authorisation, waiver or modification shall be binding on the Noteholders and the Couponholders and, unless the Trustee agrees otherwise, notified to the Noteholders as soon as practicable thereafter.

 

13.                               ENFORCEMENT

 

The Trustee may at any time, at its discretion and without notice, institute such proceedings as it thinks fit to enforce the provisions of the Trust Deed, the Notes and the Coupons, but it shall not be bound to do so or to take any other action under or pursuant to the Trust Deed unless:

 

(a)                                 it has been so requested in writing by the holders of at least one quarter of the aggregate principal amount of the outstanding Notes or has been so directed by an Extraordinary Resolution; and

 

(b)                                 it has been indemnified, provided with security and/or prefunded to its satisfaction.

 

No Noteholder may proceed directly against the Issuer or any Guarantor unless the Trustee, having become bound to do so, fails to do so within a reasonable time and such failure is continuing.

 

14.                              FURTHER ISSUES

 

The Issuer may from time to time, without the consent of the Noteholders or the Couponholders and in accordance with the Trust Deed, create and issue further notes having the same terms and conditions as the Notes in all respects (or in all respects except for the first

 

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payment of interest) so as to form a single series with the Notes.  The Issuer may from time to time, with the consent of the Trustee, create and issue other series of notes having the benefit of the Trust Deed.

 

15.                               NOTICES

 

Notices to the Noteholders shall be valid if published in a leading newspaper having general circulation in Luxembourg (which is expected to be the Luxemburger Wort) or if such publication is not practicable, in a leading English language daily newspaper having general circulation in Europe or on the website of the Luxembourg Stock Exchange (www.bourse.lu) provided, however, that any notice relating to the calling of a meeting of Noteholders pursuant to Condition 12 (Meetings of Noteholders; Noteholders’ Representative; Modification) shall also be published in Italian and English on the website of the Issuer and in any other manner prescribed by Italian laws and regulations pursuant to Article 125-bis of Legislative Decree No. 58/199 at least 30 days prior to the meeting (exclusive of the day on which the notice is published and of the day on which the meeting is to be held).  Any such notice shall be deemed to have been given on the date of first publication.  Couponholders shall be deemed for all purposes to have notice of the contents of any notice given to the Noteholders.

 

16.                               GOVERNING LAW

 

The Notes and the Trust Deed and all non-contractual matters arising from or connected with the Notes and the Trust Deed are governed by, and shall be construed in accordance with, English law, save that the mandatory provisions of Italian law relating to meetings of the Noteholders and the Noteholders’ Representative (rappresentante comune) shall apply to provisions of the Notes and the Trust Deed in respect of the same.

 

17.                               SUBMISSION TO JURISDICTION

 

The courts of England have exclusive jurisdiction to settle any dispute (a “Dispute”) arising from or connected with the Trust Deed or the Notes and all non-contractual matters arising from or in connection therewith (including a dispute regarding the existence, validity or termination of the Trust Deed or the Notes) or the consequences of their nullity.  The submission to the jurisdiction of the courts of England is for the benefit of the Trustee and the Noteholders only and shall not (and shall not be construed so as to) limit the right of the Trustee or any Noteholder to take proceedings relating to a Dispute (“Proceedings”) in the Republic of Italy nor shall the taking of Proceedings in any one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not) if any to the extent permitted by law.

 

18.                               SERVICE OF PROCESS

 

The Issuer and each Guarantor agrees that the documents which start any Proceedings and any other documents required to be served in relation to those Proceedings may be served on it by being delivered to GTECH U.K. Limited of Building 3, Floor 1, Croxley Green Business Park, Hatters Lane, Watford, Hertfordshire WD18 8YG, United Kingdom or at any address of the Issuer or the relevant Guarantor in the United Kingdom at which process may be served on it in accordance with Parts 34 and 37 of the Companies Act 2006.  Nothing in this paragraph shall affect the right of any Noteholder to serve process in any other manner permitted by law.

 

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PRINCIPAL PAYING AGENT

 

THE BANK OF NEW YORK MELLON
 (acting through its London Branch)
  One Canada Square
 London E14 5AL

 

PAYING AGENT

 

THE BANK OF NEW YORK MELLON (LUXEMBOURG) S.A.
  Vertigo Building — Polaris
 2-4 rue Eugène Ruppert
 L -2453
 Luxembourg

 

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Part C
 Form of Coupon

 

[On the face of the Coupon:]

 

LOTTOMATICA GROUP S.p.A.
 €500,000,000 3.500 per cent. Guaranteed Notes due 5 March 2020
 guaranteed by

 

GTECH CORPORATION
 GTECH HOLDINGS CORPORATION
 GTECH RHODE ISLAND LLC
 INVEST GAMES S.A.

 

Coupon for €[·] due on [·]

 

Such amount is payable, subject to the terms and conditions (the “Conditions”) endorsed on the Note to which this Coupon relates (which are binding on the holder of this Coupon whether or not it is for the time being attached to such Note), against presentation and surrender of this Coupon at the specified office for the time being of any of the agents shown on the reverse of this Coupon (or any successor or additional agents appointed from time to time in accordance with the Conditions).

 

ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE OF THE UNITED STATES.

 

[On the reverse of the Coupon:]

 

Principal Paying Agent: The Bank of New York Mellon (acting through its London Branch), One Canada Square, London E14 5AL

 

Paying Agent: The Bank of New York (Luxembourg) S.A., Aerogolf Center, 1A, Hoehenhof, L-1736 Senningerberg, Luxembourg

 

	
LOTTOMATICA GROUP S.p.A.
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
(duly authorised)
    	
 
    

 

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Schedule 3
 Provisions for Meetings of the Noteholders

 

1.                                      DEFINITIONS

 

In this Trust Deed and the Conditions, the following expressions have the following meanings:

 

“Block Voting Instruction” means, in relation to any Meeting, a document in the English language (together with, if required by applicable Italian law, a translation thereof into Italian) issued by a Paying Agent:

 

(a)                                 certifying that certain specified Notes (the “deposited Notes”) have been deposited with such Paying Agent (or to its order at a bank or other depositary) or blocked in an account with a clearing system, at least two Local Business Days, prior to the date fixed for the Meeting and will not be released until the earlier of:

 

(i)                                     the conclusion of the Meeting; and

 

(ii)                                  the surrender to such Paying Agent, not less than 48 hours before the time fixed for the Meeting (or, if the Meeting has been adjourned, the time fixed for its resumption), of the receipt for the deposited or blocked Notes and notification thereof by such Paying Agent to the Issuer, the Guarantors and the Trustee;

 

(b)                                 certifying that the depositor of each deposited Note or a duly authorised person on its behalf has instructed the relevant Paying Agent in writing that the votes attributable to such deposited Note are to be cast in a particular way on each resolution to be put to the Meeting and that, during the period of 48 hours before the time fixed for the Meeting, such instructions may not be amended or revoked;

 

(c)                                  listing the total number and (if in definitive form) the certificate numbers of the deposited Notes, distinguishing for each resolution between those in respect of which instructions have been given to vote for, or against, the resolution; and

 

(d)                                 authorising a named individual or individuals to vote at a Meeting in respect of the deposited Notes in accordance with such instructions;

 

“Chairman” means, in relation to any Meeting, the individual who takes the chair in accordance with paragraph 7 (Chairman);

 

“Extraordinary Resolution” means a resolution approved by the number of Voters specified in paragraph 8 (Quorum and majority required to pass Extraordinary Resolutions) at a Meeting duly convened and held in accordance with this Schedule;

 

“Initial Meeting” means any Meeting other than a New Meeting;

 

“Local Business Days” means a day (other than a Saturday or Sunday) on which commercial banks are open for business in Italy;

 

“Maturity Date” has the meaning given to it in the Conditions;

 

“Meeting” means a meeting of Noteholders (whether originally convened or resumed following an adjournment);

 

“Multiple Call Meeting” means a Meeting convened as a multiple call meeting;

 

“New Meeting” means a Meeting convened after adjournment for want of quorum of a previous Meeting;

 

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“Noteholders’ Representative” means a person appointed, inter alia, to represent the interests of the Noteholders (rappresentante comune) by an Extraordinary Resolution or by an order of a competent court at the request of one or more Noteholders or the directors of the Issuer, as described in Articles 2415, 2417 and 2418 of the Italian Civil Code;

 

“Proxy” means, in relation to any Meeting, a person appointed to vote under a Block Voting Instruction other than:

 

(a)                                 any such person whose appointment has been revoked and in relation to whom the relevant Paying Agent has been notified in writing of such revocation by the time which is 48 hours before the time fixed for such Meeting;

 

(b)                                 any such person appointed to vote at a Meeting which has been adjourned for want of a quorum and who has not been re-appointed to vote at the Meeting when it is resumed;

 

(c)                                  any such person who is (i) a member of any management or supervisory board (including directors and Statutory Auditors (sindaci)); or (ii) an employee of the Issuer, any Guarantor or their respective Subsidiaries; or

 

(d)                                 any of the Subsidiaries of the Issuer or any Guarantor,

 

provided, however, that, no single Proxy may attend or vote on behalf of more than such number of Noteholders at any Meeting as would exceed the limits specified in Article 2372 of the Italian Civil Code;

 

“Reserved Matter” means any proposal:

 

(a)                                 to change any date fixed for payment of principal or interest in respect of the Notes, to reduce the amount of principal or interest payable on any date in respect of the Notes or to alter the method of calculating the amount of any payment in respect of the Notes on redemption or maturity or the date for any such payment in accordance with Article 2415 No. 2 of the Italian Civil Code;

 

(b)                                 to effect the exchange or substitution of the Notes for, or the conversion of the Notes into, shares, bonds or other obligations or securities of the Issuer or any other person or body corporate formed or to be formed;

 

(c)                                  to change the currency in which amounts due in respect of the Notes are payable;

 

(d)                                 to approve any proposal by the Issuer for any other modification of any provision of the Conditions or the Trust Deed or any arrangement in respect of the obligations of the Issuer thereunder subject to Clause 7.2 (Modifications) of the Trust Deed;

 

(e)                                  to amend this definition; or

 

(f)                                   to change the quorum requirements relating to meetings or the majority required to pass an Extraordinary Resolution;

 

“Second Meeting” means a Meeting convened after adjournment for want of quorum of an Initial Meeting;

 

“Single Call Meeting” means a Meeting convened as a single call meeting;

 

“Third Meeting” means a Meeting convened after adjournment for want of quorum of a Second Meeting;

 

“Voter” means, in relation to any Meeting, the bearer of a Voting Certificate or a Proxy or, provided the by-laws of the Issuer so allow, the bearer of a definitive Note who produces such definitive Note at the Meeting;

 

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“Voting Certificate” means, in relation to any Meeting, a certificate in the English language (together with, if required by applicable Italian law, a translation thereof into Italian) issued by a Paying Agent and dated in which it is stated:

 

(a)                                 that certain specified Notes (the “deposited Notes”) have been deposited with such Paying Agent (or to its order at a bank or other depositary) or blocked in an account with a clearing system at least two Local Business Days prior to the date fixed for the Meeting and will not be released until the earlier of:

 

(i)                                     the conclusion of the Meeting; and

 

(ii)                                  the surrender of such certificate to such Paying Agent; and

 

(b)                                 that the bearer of such certificate, being the holder of, or having been duly authorised in writing by the depositor of, the deposited Notes, is entitled to attend and vote at the Meeting in respect of such Notes;

 

“24 hours” means a period of 24 hours including all or part of a day upon which banks are open for business in both the places where the relevant Meeting is to be held and in each of the places where the Paying Agents have their Specified Offices (disregarding for this purpose the day upon which such Meeting is to be held) and such period shall be extended by one period or, to the extent necessary, more periods of 24 hours until there is included as aforesaid all or part of a day upon which banks are open for business as aforesaid; and

 

“48 hours” means two consecutive periods of 24 hours.

 

2.                                      ISSUE OF VOTING CERTIFICATES AND BLOCK VOTING INSTRUCTIONS

 

The holder of a Note may obtain a Voting Certificate from any Paying Agent or require any Paying Agent to issue a Block Voting Instruction by depositing such Note with such Paying Agent or arranging for such Note to be (to its satisfaction) held to its order or under its control or blocked in an account with a clearing system not later than two Local Business Days before the date fixed for the relevant Meeting.  A Voting Certificate or Block Voting Instruction shall be valid until the release of the deposited Notes to which it relates.  So long as a Voting Certificate or Block Voting Instruction is valid, the bearer thereof (in the case of a Voting Certificate) or any Proxy named therein (in the case of a Block Voting Instruction) shall be deemed to be the holder of the Notes to which it relates for all purposes in connection with the Meeting.  A Voting Certificate and a Block Voting Instruction cannot be outstanding simultaneously in respect of the same Note.

 

3.                                      REFERENCES TO DEPOSIT/RELEASE OF NOTES

 

Where Notes are represented by the Temporary Global Note and/or the Permanent Global Note or are held in definitive form within a clearing system, references to the deposit, or release, of Notes shall be construed in accordance with the usual practices (including blocking the relevant account) of such clearing system.

 

4.                                      VALIDITY OF BLOCK VOTING INSTRUCTIONS

 

A Block Voting Instruction shall be valid only if it is deposited at the specified office of the relevant Paying Agent, or at some other place approved by the Trustee, at least 24 hours before the time fixed for the relevant Meeting or the Chairman decides otherwise before the Meeting proceeds to business.  If the Trustee requires, a notarised copy of each Block Voting Instruction and satisfactory proof of the identity of each Proxy named therein shall be produced at the Meeting, but the Trustee shall not be obliged to investigate the validity of any Block Voting Instruction or the authority of any Proxy.

 

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5.                                      CONVENING OF MEETING

 

The directors of the Issuer, the Trustee or the Noteholders’ Representative may convene a Meeting, either as a Single Call Meeting or as a Multiple Call Meeting or as, at any time and the Issuer and the Noteholders’ Representative shall be obliged to do so upon the request in writing of Noteholders holding not less than one twentieth of the aggregate principal amount of the outstanding Notes (in the case of the Trustee subject to its being indemnified, secured and/or prefunded to its satisfaction) provided that prior to calling any Meeting the Trustee shall be entitled to obtain and rely on such legal advice as it may deem necessary on all applicable Italian laws and regulations governing the procedure for calling and holding such Meeting and the Trustee shall not be responsible for any delay occasioned in obtaining such advice.  All proper costs and expenses incurred for such legal advice provided to the Trustee shall be borne by the Issuer upon receipt of proper evidence thereof.  Every meeting shall be held on a date, and at a time and place, approved by the Trustee.

 

6.                                      NOTICE

 

At least 30 days’ notice to Noteholders (exclusive of the day on which the notice is given and of the day on which the relevant Meeting is to be held) specifying the date, time, place and agenda of the Meeting shall be published in a leading newspaper having general circulation in Luxembourg (which is expected to be the Luxemburger Wort) or, if such publication is not practicable, in a leading English language daily newspaper having general circulation in Europe or on the website of the Luxembourg Stock Exchange (www.bourse.lu), in Italian and English on the website of the Issuer and in any other manner prescribed by Italian laws and regulations pursuant to Article 125 bis of Legislative Decree No. 58/199, and such notice shall be given to the Paying Agents (with a copy to the Issuer, the Guarantors and the Trustee).  The notice shall further state that the Notes may be deposited with, or to the order of, any Paying Agent for the purpose of obtaining Voting Certificates or appointing Proxies not later than five days (or, such number of days as is provided for under the by-laws of the Issuer, which shall not exceed two Business Days) before the date fixed for the Meeting.  The first resolution to be proposed to Noteholders at any Meeting shall be a proposal to authorise the Trustee, the financial advisers of the Issuer, the Guarantors and the Trustee and the legal counsel to the Issuer, the Guarantors and the Trustee to attend and speak at any such meeting. If the Meeting shall be convened as a Multiple Call Meeting, the notice may also specify the date of a Second Meeting or a Third Meeting.

 

7.                                      CHAIRMAN

 

The Chairman (who may, but need not, be a Noteholder) shall be the Chairman of the Board of Directors of the Issuer or such other person as the by-laws of the Issuer may specify from time to time or, in default, the Meeting.  Where the Meeting has elected the Chairman at an Initial Meeting, such person need not be the same person as the Chairman at any New Meeting.

 

8.                                      QUORUM AND MAJORITY TO PASS EXTRAORDINARY RESOLUTIONS

 

In accordance with the laws and legislation applicable to the Issuer, as a company with listed shares, a Meeting either convened as a Single Call Meeting or as a Multiple Call Meeting shall be validly held if attended by one or more Voters representing or holding:

 

(a)                                 in the case of a Single Call Meeting:

 

(i)                                     for the purpose of considering a Reserved Matter, at least one half of the aggregate principal amount of the outstanding Notes; or

 

(ii)                                  for any other purposes, at least one fifth of the aggregate principal amount of the outstanding Notes;

 

(b)                                 in the case of a Multiple Call Meeting:

 

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(i)                                     in the case of an Initial Meeting, at least one half of the aggregate principal amount of the outstanding Notes;

 

(ii)                                  in the case of a Second Meeting:

 

(A)                               for the purpose of considering a Reserved Matter, at least one half of the aggregate principal amount of the outstanding Notes; or

 

(B)                               for any other purposes, more than one third of the aggregate principal amount of the outstanding Notes; and

 

(iii)                               in the case of a Third Meeting:

 

(A)                               for the purpose of considering a Reserved Matter, at least one half of the aggregate principal amount of the outstanding Notes; or

 

(B)                               for any other purposes, at least one fifth of the aggregate principal amount of the outstanding Notes.

 

Both in the case of a Single Call Meeting and in the Case of a Multiple Call Meeting, the majority required to pass an Extraordinary Resolution shall be one or more Voters holding or representing:

 

(a)                                 for voting on any matter other than a Reserved Matter, at least two thirds of the aggregate principal amount of the Notes represented at the Meeting; and

 

(b)                                 for voting on a Reserved Matter, more than one half of the aggregate principal amount of the Notes represented at the Meeting but at least one half of the aggregate principal amount of the outstanding Notes.

 

9.                                      ADJOURNMENT FOR WANT OF QUORUM

 

If within 15 minutes after the commencement of any Meeting a quorum is not present, then it shall be adjourned for such period which shall be:

 

(i)                                     the date specified in the notice to Noteholders of the Initial Meeting, not less than one day and not more than 30 days; and

 

(ii)                                  in all other cases, not less than 14 days and not more than 30 days.

 

10.                               ADJOURNMENT OTHER THAN FOR WANT OF QUORUM

 

The Chairman may, with the consent of (and shall if directed by) Voters holding or representing at least one third of the aggregate principal amount of the Notes represented at the Meeting, adjourn such Meeting from place to place provided that:

 

(i)                                     any Meeting so adjourned shall take place within five days of the original date for such Meeting; and

 

(ii)                                  no business shall be transacted at any Meeting so adjourned except business which might lawfully have been transacted at the Meeting from which the adjournment took place.

 

11.                               NOTICE FOLLOWING ADJOURNMENT

 

Where the notice to Noteholders of the Initial Meeting specifies the date for a New Meeting, no further notice need be given to Noteholders.  If further notice is given to Noteholders such notice may specifically set out the quorum requirements which will apply when the Meeting resumes.

 

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It shall not be necessary to give notice of the resumption of a Meeting which has been adjourned for any reason other than want of quorum.

 

12.                               PARTICIPATION

 

The following may attend and speak at a Meeting:

 

(a)                                 Voters;

 

(b)                                 the Noteholders’ Representative;

 

(c)                                  any Director or Statutory Auditor (sindaco) of the Issuer and any Guarantor; and

 

(d)                                 any other person approved by the Meeting, including representatives of the Issuer, the Guarantors and the Trustee, the financial advisers of the Issuer, the Guarantors and the Trustee and the legal counsel to the Issuer, the Guarantors and the Trustee.

 

13.                               METHOD OF VOTING

 

The method of voting on every question submitted to a Meeting shall be decided by the Chairman.

 

14.                               VOTES

 

Every Voter shall have one vote in respect of each €100,000 in aggregate face amount of the outstanding Note(s) represented or held by him.  In the case of a voting tie the Chairman shall have a casting vote.  Unless the terms of any Block Voting Instruction state otherwise, a Voter shall not be obliged to exercise all the votes to which he is entitled or to cast all the votes which he exercises in the same way.

 

15.                               VALIDITY OF VOTES BY PROXIES

 

Any vote by a Proxy in accordance with the relevant Block Voting Instruction shall be valid even if such Block Voting Instruction or any instruction pursuant to which it was given has been amended or revoked, provided that none of the Issuer, the Guarantors, the Trustee or the Chairman has been notified in writing of such amendment or revocation by the time which is 48 hours before the time fixed for the relevant Meeting.  Unless revoked, any appointment of a Proxy under a Block Voting Instruction in relation to a Meeting shall remain in force in relation to any resumption of such Meeting following an adjournment; provided, however, that no such appointment of a Proxy in relation to a Meeting originally convened which has been adjourned for want of a quorum shall remain in force in relation to such Meeting when it is resumed.  Any person appointed to vote at such a Meeting must be re-appointed under a Block Voting Instruction Proxy to vote at the Meeting when it is resumed.

 

16.                               POWERS

 

A Meeting shall have power (exercisable by Extraordinary Resolution), without prejudice to any other powers conferred on it or any other person:

 

(a)                                 to approve any Reserved Matter;

 

(b)                                 to waive any breach or authorise any proposed breach by the Issuer or any Guarantor of its obligations under or in respect of the Notes, the Coupons or the Trust Deed or any act or omission which might otherwise constitute an Event of Default under the Notes;

 

(c)                                  to give any other authorisation or approval which under this Trust Deed or the Notes is required to be given by Extraordinary Resolution;

 

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(d)                                 to consider any proposal for an administration order (amministrazione controllata) or a composition with creditors (concordato) in respect of the Issuer or any similar proceedings in respect of a Guarantor;

 

(e)                                  to remove any Trustee;

 

(f)                                   to approve the appointment of a new Trustee;

 

(g)                                  to authorise the Trustee (subject to its being indemnified and/or secured and/or prefunded to its satisfaction) or any other person to execute all documents and do all things necessary to give effect to any Extraordinary Resolution;

 

(h)                                 to discharge or exonerate the Trustee from any liability in respect of any act or omission for which it may become responsible under this Trust Deed or the Notes;

 

(i)                                     to appoint or revoke the appointment of a Noteholders’ Representative;

 

(j)                                    to approve the setting up of a fund for the purposes of representing the interests of Noteholders and any arrangements for the preparation of accounts in respect of such fund;

 

(k)                                 to appoint any persons as a committee to represent the interests of the Noteholders and to confer upon such committee any powers which the Noteholders could themselves exercise by Extraordinary Resolution; and

 

(l)                                     to consider any other matter of common interest to Noteholders.

 

17.                               EXTRAORDINARY RESOLUTION BINDS ALL HOLDERS

 

An Extraordinary Resolution shall be binding upon all Noteholders and holders of Coupons whether or not present at such Meeting and irrespective of how their vote was cast at such Meeting (so long however as their vote was cast in accordance with these provisions) and each of the Noteholders and holders of Coupons shall be bound to give effect to it accordingly.  Notice of the result of every vote on an Extraordinary Resolution shall be given to the Noteholders and the Paying Agents (with a copy to the Issuer, the Guarantors and the Trustee) within 14 days of the conclusion of the Meeting.

 

18.                               WRITTEN RESOLUTION BINDS ALL HOLDERS

 

Save for decisions in respect of those matters which are required to be addressed in a Meeting pursuant to Article 2415 of the Italian Civil Code, a written resolution signed by the holders of 90 per cent. in principal amount of the Notes outstanding shall take effect as if it were an Extraordinary Resolution.  Such a resolution in writing may be contained in one document or several documents in the same for, each signed by or on behalf of one or more Noteholders.

 

19.                               MINUTES

 

Minutes shall be drawn up by a notary public of all resolutions and proceedings at each Meeting.  The Chairman shall sign the minutes, which shall be prima facie evidence of the proceedings recorded therein.  Unless and until the contrary is proved, every such Meeting in respect of the proceedings of which minutes have been summarised and signed shall be deemed to have been duly convened and held and all resolutions passed or proceedings transacted at it to have been duly passed and transacted.  The minutes shall be held in the minute book of meetings of Noteholders (libro delle adunanze e delle deliberazioni delle assemblee degli obbligazionisti) and be registered at the local companies’ registry (registro delle imprese) of the Issuer.

 

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20.                               COMPLIANCE WITH APPLICABLE LAW

 

All the provisions set out in this Schedule 3 (Provisions for the Meetings of the Noteholders) are subject to compliance with the laws, legislation, rules and regulations of the Republic of Italy in force from time to time, including, where such laws, legislation, rules and regulations so require, the Issuer’s by-laws.  Such provisions shall be deemed to be amended, replaced and/or supplemented to the extent that such laws, legislation, rules and regulations are amended, replaced and/or supplemented at any time while the Notes remain outstanding.

 

21.                               FURTHER REGULATIONS

 

Subject to all other provisions contained in this Trust Deed, the Trustee may without the consent of the Noteholders (but, for the avoidance of doubt, with the agreement of the Issuer) prescribe such further regulations regarding the holding of Meetings of Noteholders and attendance and voting at them as the Trustee may in its sole discretion determine.

 

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EXECUTION CLAUSES

 

	
EXECUTED as a deed
    
	
by LOTTOMATICA GROUP S.p.A.
    
	
acting by
    
	
 
    
	
By:
    
	
 
    
	
 
    
	
EXECUTED as a deed
    
	
by GTECH CORPORATION
    
	
acting by
    
	
 
    
	
By:
    
	
 
    
	
 
    
	
EXECUTED as a deed
    
	
by GTECH HOLDINGS   CORPORATION
    
	
acting by
    
	
 
    
	
By:
    
	
 
    
	
 
    
	
EXECUTED as a deed
    
	
by GTECH RHODE ISLAND LLC
    
	
acting by
    
	
 
    
	
By:
    
	
 
    
	
 
    
	
EXECUTED as a deed
    
	
by INVEST GAMES S.A.
    
	
acting by
    
	
 
    
	
By:
    

 

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EXECUTED as a deed
    
	
by BNY MELLON CORPORATE   TRUSTEE SERVICES LIMITED
    
	
acting by two of its lawful attorneys:
    
	
 
    
	
Attorney:
    
	
 
    
	
 
    
	
Attorney:
    
	
 
    
	
 
    
	
In the presence of:
    
	
 
    
	
Witness name:
    
	
 
    
	
Signature:
    
	
 
    
	
Address:
    

 

85Exhibit 10.5

 

EXECUTION VERSION

 

	
CREDIT SUISSE SECURITIES   (USA) LLC

CREDIT SUISSE AG

Eleven Madison Avenue

New York, NY 10010
    	
 
    	
BARCLAYS

745 Seventh Avenue

New York, NY 10019

 
    

 

CITIGROUP GLOBAL MARKETS LIMITED

388 Greenwich Street

New York, New York 10013

CITIBANK N.A., LONDON BRANCH

Citigroup Centre, Canada Square

London E145LB United Kingdom

 

CONFIDENTIAL

 

July 15, 2014

 

GTECH S.p.A. 
  Viale del Campo Boario 56/D
 00154 Roma Italy

 

Attention:  Mr. Claudio Demolli, Treasurer

 

PROJECT CLEOPATRA

364-Day Senior Bridge Term Loan Credit Facility

Commitment Letter

 

Ladies and Gentlemen:

 

You have advised each of Credit Suisse AG (acting through such of its affiliates or branches as it deems appropriate, “CS”) and Credit Suisse Securities (USA) LLC (“CS Securities” and, together with CS and their respective affiliates, “Credit Suisse”), Barclays Bank PLC (“Barclays”) and Citigroup Global Markets Limited and Citibank N.A., London Branch (collectively, “Citi” and, together with Credit Suisse and Barclays “we”, “us”, “our” or the “Commitment Parties”) that you (following the merger into a newly formed public limited company organized under the Laws of England and Wales), directly or through one of your wholly owned subsidiaries, intend to acquire (the “Acquisition”) all of the equity interests of International Game Technology, a Nevada corporation (the “Company”) (such term and each other capitalized term used but not defined herein having the meaning assigned to such term in the Summary of Principal Terms and Conditions attached hereto as Exhibit A (the “Term Sheet”)). For purposes of this Commitment Letter, Citi shall be entitled to provide the services contemplated herein through any affiliate, including Citigroup Global Markets Inc., Citibank, N.A, Citigroup USA, Inc. and Citicorp North America, Inc., as Citi shall determine to be appropriate to provide the services contemplated herein.

 

You have further advised us that, in connection therewith, the Borrowers will obtain the 364-day senior bridge term loan credit facility (the “Bridge Facility”) described in the Term Sheet, in an aggregate principal amount set forth below (or such lesser amount as you may elect to borrow in your sole discretion and, in all events, subject to reduction as referenced in immediately succeeding clauses (ii), (iii) and (iv)) and by Permanent Instrument Commitment Reductions (to be applied first to reduce the Acquisition Sub-Facility and thereafter on a pro rata basis to each of the Existing Company Bonds

 

 

Delayed Draw Sub-Facility, the Existing Purchaser Bonds Delayed Draw Sub-Facility and the Withdrawn Shares Sub-Facility) and comprised of:

 

(i)                                     a sub-facility (the “Acquisition Sub-Facility”) equal to an aggregate principal amount of $4,566,000,000, for the purpose (and only for the purpose) of funding, in part, the Acquisition Consideration, refinancing the Existing Credit Facility (as defined below) and paying fees and expenses incurred in connection with the Acquisition and the other Transactions (as defined in the Term Sheet); provided that the Acquisition Sub-Facility may be used for purposes of repaying existing indebtedness of the Company and its subsidiaries to the extent such indebtedness was used for purposes of paying the Special Dividend (as defined in Exhibit A) to the existing stockholders of the Company, to the extent that the use of proceeds of the Acquisition Sub-Facility to repay such indebtedness has a corresponding reduction (on a dollar-for-dollar basis and in accordance with the  Merger Agreement) in the amount of Acquisition Consideration payable; provided, further that the aggregate amount of the commitments for the Acquisition Sub-Facility shall be permanently reduced, in an aggregate amount not to exceed $848,000,000, by the aggregate outstanding principal amount under any revolving credit facilities available to the UK Borrower or any of its subsidiaries on the Closing Date (on a pro forma basis after giving effect to any drawing under the Acquisition Sub-Facility and the application of proceeds therefrom), including, without limitation, any refinancing or amendment and restatement of the Existing Credit Agreement or the Indiana Credit Agreement (as defined below);

 

(ii)                                  a sub-facility (the “Existing Company Bonds Delayed Draw Sub-Facility”) equal to an aggregate principal amount of $1,313,000,000, for the purpose (and only for the purpose) of funding an offer to repay and redeem in full the Existing Company Bonds (including paying any accrued interest and required prepayment premiums and/or required make-whole payments) put back to the Company in accordance with the applicable definitive bond documentation (or to fund a tender for the Existing Company Bonds as contemplated by the Term Sheet), respectively, therefor and, in all events, such aforementioned aggregate principal amount in this clause (ii) shall be subject to reduction, on and after each Existing Company Bonds Commitment Reduction Calculation Date, by an aggregate principal amount equal to the Existing Company Bonds Commitment Reduction Amount calculated on such Existing Company Bonds Commitment Reduction Calculation Date (it being understood and agreed that there may be one or more such reductions under this clause (ii)) (it being further understood and agreed that, at the option of the Lead Arrangers holding (or whose affiliates hold) a majority of the commitments under the Bridge Facility on the date hereof (the “Majority Lead Arrangers”) (in consultation with the Borrowers), on or prior to the Closing Date, this sub-facility of the Bridge Facility may be structured as a stand-alone facility (as opposed to a sub-facility) and the Term Sheet modified accordingly in a manner reasonably determined by the Lead Arrangers (it being further understood and agreed that (x) for purposes of, among other things, the Permanent Debt Offering or any other take-out financing and the Fee Letters such stand-alone facility shall nonetheless be treated as part of the Bridge Facility, (y) the commitments and aggregate principal amount of such sub-facility shall continue to apply unmodified with respect to such stand-alone facility and (z) all representations and warranties, covenants, events of default, conditions, interest rates and fees that would otherwise have applied to such sub-facility shall continue to apply unmodified with respect to such stand-alone facility));

 

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(iii)                               a sub-facility (the “Existing Purchaser Bonds Delayed Draw Sub-Facility”) equal to an aggregate principal amount of EUR 2,802,000,000, for the purpose (and only for the purpose) of funding an offer to repay and redeem or purchase in full all of the Existing Purchaser Bonds (including paying any accrued interest and required prepayment premiums and/or required make-whole payments), including by tender offer, and, in all events, such aforementioned aggregate principal amount in this clause (iii) shall be subject to reduction, on and after each Existing Purchaser Bonds Commitment Reduction Calculation Date (which, for the avoidance of doubt, may occur prior to, on or after the Closing Date), by an aggregate principal amount equal to the Existing Purchaser Bonds Commitment Reduction Amount calculated on such Existing Purchaser Bonds Commitment Reduction Calculation Date (it being understood and agreed that there may be one or more such reductions under this clause (iii)) (it being further understood and agreed that, at the option of the Majority Lead Arrangers (in consultation with the Borrowers), on or prior to the Closing Date, this sub-facility of the Bridge Facility may be structured as a stand-alone facility (as opposed to a sub-facility) and the Term Sheet modified accordingly in a manner reasonably determined by the Lead Arrangers (it being further understood and agreed that (x) for purposes of, among other things, the Permanent Debt Offering or any other take-out financing and the Fee Letters such stand-alone facility shall nonetheless be treated as part of the Bridge Facility, (y) the commitments and aggregate principal amount of such sub-facility shall continue to apply unmodified with respect to such stand-alone facility and (z) all representations and warranties, covenants, events of default, conditions, interest rates and fees that would otherwise have applied to such sub-facility shall continue to apply unmodified with respect to such stand-alone facility)); and

 

(iv)                              a sub-facility (the “Withdrawn Shares Sub-Facility”) equal to an aggregate principal amount of  EUR 746,000,000, for the purpose (and only for the purpose) of funding payment to Withdrawing Shareholders with respect to the Remaining Withdrawn Shares and, in all events, such aforementioned aggregate principal amount in this clause (iv) shall be subject to reduction, on and after the First Withdrawal Rights Commitment Reduction Calculation Date and the Second Withdrawal Rights Commitment Reduction Calculation Date by an aggregate principal amount equal to, respectively, the First Withdrawal Rights Commitment Reduction Amount and the Second Withdrawal Rights Commitment Reduction Amount.

 

The “Existing Credit Facility” means, collectively, (i) the Existing Credit Agreement and (ii) the Amended and Restated Credit Agreement, dated as of April 23, 2013, among the Company, The Royal Bank of Scotland PLC, Wells Fargo Bank, N.A., the co-documentation agents, and the other lenders party thereto, as well as the joint lead arrangers and joint book runners therefor (the “Indiana Credit Agreement”), in each case as amended, restated, modified, renewed, refunded, extended, replaced, restructured or refinanced in whole or in part from time to time.

 

The Acquisition Sub-Facility and the Existing Company Bonds Delayed Draw Sub-Facility shall be available in Dollars and the Existing Purchaser Bonds Delayed Draw Sub-Facility and Withdrawn Shares Sub-Facility shall be available in Euros.

 

1.                                      Commitments.

 

In connection with the foregoing, (i) CS is pleased to advise you of its commitment to provide 40% of the Bridge Facility, (ii) Barclays is pleased to advise you of its commitment to provide 30% of the Bridge Facility and (iii) Citi is pleased to advise you of its commitment to provide 30% of the Bridge

 

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Facility, in each case subject, in all events, to the reductions in aggregate principal referenced in clauses (ii), (iii) and (iv) of the paragraph above and as set forth in greater detail in the Term Sheet (each of the foregoing financial institutions, together with any of its designated affiliates of similar creditworthiness, an “Initial Lender” and collectively with any other financial institution that becomes an Initial Lender as set forth in Section 2 below, the “Initial Lenders”), upon the terms set forth in this commitment letter (including the Term Sheet and other attachments hereto, this “Commitment Letter”) and the conditions set forth in Section 6 of this Commitment Letter and Exhibit B.

 

2.                                      Titles and Roles.

 

It is agreed that (a) each of CS Securities, Barclays and Citi will act as a joint lead arranger (in such capacity, together with any of its designated affiliates of similar creditworthiness, the “Lead Arrangers”) and as joint bookrunners for the Bridge Facility, and (b) CS will act as sole administrative agent for the Bridge Facility (in such capacity, the “Administrative Agent”), in each case upon the terms and subject to the conditions set forth or referred to in this Commitment Letter.  The Lead Arrangers and the Initial Lenders, in such capacities, will perform the duties and exercise the authority customarily performed and exercised by them in such roles.  You agree that CS will have “left” placement in any and all marketing materials or other documentation used in connection with the Bridge Facility.  Notwithstanding the foregoing, you may appoint (in consultation with us), on or prior to the date that is 14 days after the date of this Commitment Letter, up to one additional joint lead arranger and/or joint lead book-runners, together with one or more documentation (co-documentation, as applicable) agent(s) (collectively, the “Additional Arrangers”) and may allocate up to 50% of the commitments hereunder with respect to the Bridge Facility (with Additional Arrangers to be listed to the right of the Lead Arrangers (in a manner reasonably determined by you and us) in any marketing materials) to the Additional Arrangers (or their affiliates); provided, that (w) the commitment of each Additional Arranger shall be allocated ratably to each sub-Facility, (x) the proportion of the economics for the Bridge Facility for any such Additional Arranger shall in no event exceed the economics for the Bridge Facility for any of the Lead Arrangers under the Arranger Fee Letter and, further, the economics for the Bridge Facility for any such Additional Arranger shall in no event exceed the economics for the Bridge Facility for any one individual Lead Arranger, (y) each Additional Arranger shall assume a proportion of the commitments to the Bridge Facility equal to or greater than the proportion of the economics for the Bridge Facility allocated to it under the Arranger Fee Letter, and (z) the commitment amounts of the Lead Arrangers and the Initial Lenders, as applicable, in respect of the Bridge Facility will be proportionately reduced by the amount of the commitment amount of each Additional Arranger (or its relevant affiliate), upon the execution and delivery by such Additional Arranger (and its relevant affiliate) and you of a customary joinder and novation agreement or other documentation reasonably acceptable to the Lead Arrangers (in consultation with you) (which must occur during the 14 day period referenced above); provided, that for purposes of the reduction of commitments referred to in clause (z) above, it is understood and agreed that no such reduction of commitments shall take place unless such Additional Arranger constitutes an Investment Grade Bank (as defined below).  The resulting commitments of each of the Initial Lenders and the Additional Arrangers (and their relevant affiliates) hereunder with respect to the Bridge Facility would be several and not joint. You further agree that no other titles will be awarded and no compensation (other than that expressly contemplated by this Commitment Letter and the Fee Letters referred to below) will be paid in connection with the Bridge Facility unless you and we shall so agree.

 

3.                                      Syndication.

 

We reserve the right, prior to and/or after the execution of definitive documentation for the Bridge Facility, to syndicate all or a portion of the Initial Lenders’ commitments with respect to the Bridge Facility to a group of banks, financial institutions and other institutional lenders (together with the Initial Lenders, the “Lenders”) identified by us in consultation with you, and you agree to provide us with

 

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a period of at least 30 consecutive days following the launch of the general syndication of the Bridge Facility and prior to the Closing Date to syndicate the Bridge Facility (provided that such period shall not include any day from and including August 18 through and including September 5, 2014 or from and including November 26, 2014 through and including November 30, 2014 and if such 30 consecutive day period has not commenced prior to December 22, 2014 then it will not commence prior to January 3, 2015) (such 30 consecutive date period, the “Marketing Period”).  Notwithstanding the right to syndicate the Bridge Facility and receive commitments with respect thereto, (i) no Initial Lenders shall be relieved, released or novated from its obligations hereunder (including its obligation to fund the Bridge Facility on the date of the consummation of the Acquisition with the proceeds of the funding under the Bridge Facility) in connection with any syndication or assignment of the Bridge Facility, including its commitments in respect thereof, until after the Closing Date has occurred unless such syndication or assignment is to a Permitted Assignee (as defined below) and (ii) no assignment or novation, other than to a Permitted Assignee, shall become effective with respect to all or any portion of an Initial Lender’s commitments in respect of the Bridge Facility until the Closing Date.  To the extent that any portion of the commitment of an Initial Lender hereunder with respect to the Bridge Facility is syndicated to a Lender that is a Permitted Assignee that is not an Investment Grade Bank, then such Initial Lender shall not be relieved of its obligation hereunder to fund such portion of such commitment on the Closing Date to the extent such Lender fails to fund such commitment on the Closing Date in accordance with the terms of the Bridge Facility Documentation.  Notwithstanding the foregoing, the Commitment Parties will not syndicate, participate to or otherwise assign any portion of a commitment under the Bridge Facility to those persons that are (i) identified in writing by name by you or the Company to us prior to the date hereof or (ii) competitors of you or your subsidiaries or the Company or its subsidiaries, in each case as identified in writing by name by you or the Company to us prior to the date hereof (collectively, the “Disqualified Institutions”); provided that you, upon reasonable notice to the Lead Arrangers after the date hereof and on or prior to the Closing Date, shall be permitted to supplement in writing the list of persons that are Disqualified Lenders to the extent such supplemented person is or becomes a bona fide competitor or an affiliate of a bona fide competitor of you or your subsidiaries or the Company or its subsidiaries and is not a bona fide debt fund.  We intend to commence syndication efforts promptly upon your acceptance of this Commitment Letter, and, at all times during the Syndication Period (as defined below), you agree to use commercially reasonable efforts to actively assist us (and to use commercially reasonable efforts to cause the Company and its subsidiaries to use commercially reasonable efforts to actively assist us (it being understood and agreed that the assistance of the Company and its subsidiaries shall, prior to the Closing Date, be limited to the extent that such assistance is inconsistent with the provisions of the Merger Agreement)) in completing a satisfactory syndication.  Such assistance shall include (a) your using commercially reasonable efforts to ensure that any syndication efforts benefit from your existing lending and investment banking relationships and the existing lending and investment banking relationships of the Company, (b) direct contact between senior management, representatives and advisors of you (and your using commercially reasonable efforts to cause direct contact between senior management, representatives and advisors of the Company) and the proposed Lenders, (c) assistance by you (and your using commercially reasonable efforts to cause the assistance by the Company) in the preparation of a customary Confidential Information Memorandum for the Bridge Facility (the “Information Materials”), (d) assistance by you in obtaining, and your using commercially reasonable efforts to obtain as soon as practicable, both rating advisory letters and a Public Debt Rating (as defined below) from each of Standard & Poor’s Ratings Service (“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”) for the UK Borrower, and (e) the hosting, with the Lead Arrangers, of one meeting of prospective Lenders at reasonably requested times and locations. For purposes of this Commitment Letter, (x) “Investment Grade Ratings” shall mean each of (1) the corporate/corporate family ratings of the UK Borrower and (2) the ratings of any class of non-credit enhanced long term senior secured debt issued by the UK Borrower in each case are both (i) Baa3 (with at least a stable outlook) or better by Moody’s and (ii) BBB- (with at least a stable outlook)  or better by S&P and (y) “Public Debt Rating” means, as of any date of determination, the rating of S&P or Moody’s for each of (i) the UK Borrower’s

 

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corporate/corporate family credit rating and (ii) any class of non-credit enhanced long-term senior secured debt issued by the UK Borrower.

 

You agree, at the request of the Majority Lead Arrangers, to assist in the preparation of a version of the Information Materials to be used in connection with the syndication of the Bridge Facility, consisting exclusively of information and documentation that is either (i) publicly available (or, if applicable, contained in any prospectus or other offering memorandum related to any securities issues in connection with the Permanent Debt Financing) or (ii) not material with respect to the Borrowers, the Company or their respective subsidiaries or any of their respective securities for purposes of United States Federal securities laws or foreign securities laws (or equivalent thereof) (all such Information Materials being “Public Lender Information”). Any information and documentation that is not Public Lender Information is referred to herein as “Private Lender Information”.  Before distribution of any Information Materials, you agree to execute and deliver to the Lead Arrangers, either (i) a letter in which you authorize distribution of the Information Materials to Lenders’ employees willing to receive Private Lender Information or (ii) a separate letter in which you authorize distribution of Information Materials containing solely Public Lender Information and represent that such Information Materials do not contain any Private Lender Information.  The Information Materials shall also contain customary provisions exculpating us with respect to any liability related to the use of the contents of such Confidential Information Memorandum or any related marketing material by the recipients thereof and exculpate you, the Borrowers, the Company and your and their respective affiliates, and us and our affiliates, with respect to any liability related to the misuse of the contents of such Confidential Information Memorandum or any related marketing material by the recipients thereof. You further agree that each document to be disseminated by the Lead Arrangers to any Lender in connection with the Bridge Facility will, at the request of the Lead Arrangers, be identified by you as either (i) containing Private Lender Information or (ii) containing solely Public Lender Information. You acknowledge that the following documents contain solely Public Lender Information (unless you notify us promptly prior to their intended distribution that any such document contains Private Lender Information): (a) drafts and final definitive documentation with respect to the Bridge Facility, including term sheets; (b) administrative materials prepared by the Commitment Parties for prospective Lenders (such as a lender meeting invitation, bank allocation, if any, and funding and closing memoranda); and (c) notification of changes in the terms of the Bridge Facility.

 

To ensure an orderly and effective syndication of the Bridge Facility, you agree that, prior to and during the Syndication Period, you will ensure that there shall be no other issues of securities, syndicated term loans or commercial bank or other credit facilities of the Borrowers, the Company or their respective subsidiaries (or any parent company, respectively, thereof) being announced, offered, placed or arranged that could reasonably be expected to have an adverse impact in any material respect on the syndication of the Bridge Facility or the consummation of any Securities Offering (as defined in the Arranger Fee Letter (as defined below)), in each case without the prior written consent of the Majority Lead Arrangers (other than (i) the Permanent Debt Financing, (ii) local working capital facilities issued to the Company or its subsidiaries permitted under the Merger Agreement, (iii) (A) the refinancing of the Existing Credit Agreement (including any upsizing of such facility to cover working capital needs of the Company and its subsidiaries) or (B) on or after the date that is six (6) months after the date hereof, additional commitments (or sub-facilities) under the existing revolving credit agreement of the Company or additional and/or replacement credit facilities or other financings for such existing revolving credit agreement (which shall not exceed $2,000,000,000 (or such greater amount as may be reasonably agreed to in writing by the Majority Lead Arrangers) in aggregate principal amount) incurred by the Company to the extent necessary to fund the Special Dividend (pursuant to and subject to the limitations (including as to terms and amount of both the Special Dividend and such new facilities) set forth in Section 5.16(b) of the Merger Agreement), (iv) debt of the type described in clauses (b)(i) through (b)(ii) under the heading “Mandatory Prepayments and Commitment Reductions” in the Term Sheet and (v) any other financing

 

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agreed to in writing by the Majority Lead Arrangers).  As used herein and in the Arranger Fee Letter, “Syndication Period” shall mean the period from the date of your acceptance of this Commitment Letter until the earlier of (i) the date on which a “successful syndication” (as defined in the Arranger Fee Letter (as defined below)) is achieved and (ii) 30 days after the Closing Date.

 

The Lead Arrangers will manage all aspects of any syndication in consultation with you, including decisions as to the selection of institutions to be approached and when they will be approached, when their commitments will be accepted, which institutions will participate, the allocation of the commitments among the Lenders, any naming rights and the amount and distribution of fees among the Lenders.  To assist the Lead Arrangers in their syndication efforts, you agree promptly to prepare and provide (and to use commercially reasonable efforts, to the extent practical and appropriate, to cause the Company promptly to provide) to the Lead Arrangers all information with respect to the Borrowers, the Company and their respective subsidiaries, the Transactions and the other transactions contemplated hereby, including all financial information and projections (the “Projections”), as any of the Lead Arrangers may reasonably request in connection with the structuring, arranging and syndication of the Bridge Facility.

 

Without limiting your obligations to assist with syndication efforts as set forth herein, it is understood that the Initial Lenders’ commitments hereunder are not conditioned upon the availability of the Marketing Period, the syndication of, or receipt of commitments in respect of, the Bridge Facility and in no event shall the availability of the Marketing Period or the commencement or successful completion of syndication of the Bridge Facility constitute a condition to the availability of the Bridge Facility on the Closing Date.

 

4.                                      Information.

 

You hereby represent and covenant, but, for the avoidance of doubt, the accuracy of such representation and covenant shall not be a condition to the commitments hereunder or the availability and funding of the Bridge Facility on the Closing Date, that (with respect to Information and Projections relating to the Company and its subsidiaries, to the best of your knowledge) (a) all written and factual information (other than the Projections and information of a general economic or general industry nature) (the “Information”) that has been or will be made available to us by or on behalf of you or any of your representatives, taken as a whole, is or will be, when furnished, complete and correct in all material respects and does not or will not, when furnished, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made (after giving effect to all supplements and updates thereto), and (b) the Projections that have been or will be made available to us by or on behalf of you or any of your representatives have been or will be prepared in good faith based upon assumptions that are reasonable at the time made and at the time the related Projections are made available to us; it being understood that any such financial projections are subject to significant uncertainties and contingencies, many of which are beyond your control, that no assurance can be given that any particular financial projections will be realized, that actual results may differ significantly from the projected results and that such differences may be material. You agree that if at any time prior to the later of (i) the closing of the Bridge Facility and (ii) the end of the Syndication Period, you become aware that any of the representations in the preceding sentence would be incorrect in any material respect if the Information and Projections were being furnished, and such representations were being made, at such time, then you will promptly (or prior to the Closing Date with respect to Information or Projections concerning the Company and its subsidiaries, you will use commercially reasonable efforts to) supplement the Information and the Projections so that (to the best of your knowledge, with respect to the Company and its subsidiaries) such representations will be correct in all material respects under those circumstances. In arranging and syndicating the Bridge Facility, we will be entitled to use and rely

 

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primarily on the Information and the Projections without responsibility for independent verification thereof.

 

5.                                      Fees.

 

As consideration for the Initial Lenders’ commitments hereunder, and the Lead Arrangers’ agreement to perform the services described herein, you agree to pay to us the fees set forth in this Commitment Letter and in the Fee Letter (the “Arranger Fee Letter”) and the Agent Fee Letter (the “Agent Fee Letter” and, together with the Arranger Fee Letter and any other fee letter entered into with a Lead Arranger (which shall include each fee letter delivered to you in connection with this Commitment Letter), the “Fee Letters”), each dated the date hereof and delivered herewith with respect to the Bridge Facility.

 

6.                                      Conditions Precedent.

 

The Initial Lenders’ commitments hereunder, and each of our agreements to perform the services described herein, are subject to (a) except (i) as disclosed in the Company SEC Documents (as defined in the Merger Agreement) filed prior to the date of the Merger Agreement and since September 30, 2012 (but excluding any forward looking disclosures set forth in any “risk factors” section, any disclosures in any “forward looking statements” section and any other disclosures included therein to the extent they are predictive or forward-looking in nature) or (ii) as disclosed in the Company Disclosure Letter (as defined in the Merger Agreement), since September 28, 2013, there not having been any event, effect, development or circumstance that has had or would reasonably be expected to have,  individually or in the aggregate, a Company Material Adverse Effect (as defined below), (b) the negotiation, execution and delivery of definitive documentation with respect to the Bridge Facility consistent with the terms of this Commitment Letter or otherwise reasonably satisfactory to you and us and (c) the other conditions set forth or referred to in Exhibits A and B hereto. “Company Material Adverse Effect” shall mean any change, development, circumstance, event, occurrence or effect (each an “Effect”) that, when considered either individually or in the aggregate together with all other Effects, is materially adverse to the financial condition, business, assets or results of operations of the Company and the Company Subsidiaries (as defined in the Merger Agreement) taken as a whole; provided, however, that in no event shall any of the following Effects or any Effects resulting therefrom, in each case individually or in the aggregate with all other such Effects, be deemed to constitute, or taken into account in determining whether there has been, a “Company Material Adverse Effect”: (a) the announcement or pendency of the Merger Agreement or the transactions contemplated thereby, including any loss or threatened loss of, or adverse change or threatened adverse change in, the relationship of the Company or any of its Subsidiaries (as defined in the Merger Agreement) with its customers, employees, financing sources, suppliers or business partners, in each case to the extent attributable to, arising out of or resulting from the announcement or pendency of the Merger Agreement or the transactions contemplated thereby, (b) any Effect attributable to changes in financial, economic, social or political conditions or the securities, credit or financial markets in general in the United States or other countries in which the Company or any of the Company Subsidiaries (as defined in the Merger Agreement) conduct operations or any Effect generally that is the result of factors affecting any principal industry in which the Company and the Company Subsidiaries (as defined in the Merger Agreement) operate, (c) any change in the market price or trading volume of the equity securities of the Company or of the ratings or the ratings outlook for the Company or any of the Company Subsidiaries (as defined in the Merger Agreement) by any applicable rating agency, (d) the suspension of trading in securities generally on the NYSE or the NASDAQ Stock Market, (e) any adoption, implementation, proposal or change in any applicable Law (as defined in the Merger Agreement) or GAAP (as defined in the Merger Agreement) or interpretation of any of the foregoing after the date of the Merger Agreement, (f) any action  taken by the Company or any Company Subsidiary (as defined in the Merger Agreement) that is expressly permitted or required by the Merger Agreement (other than pursuant

 

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to its obligation to conduct its business in all material respects in the ordinary course of business under Section 5.01(a) of the Merger Agreement) or taken or not taken at the written direction of you (subject, in each case, to the prior written consent of the Majority Lead Arrangers if such permission or requirement is at the request, consent or direction of you and such action is material and adverse to the interests of the Commitment Parties, the Initial Lenders or the Lenders), (g) the failure of the Company to meet any internal or public projections, budgets, forecasts or estimates of revenues, earnings or other financial results for any period ending on or after the date of the Merger Agreement, (h)  the identity of you or Sub (as defined in the Merger Agreement) or your ability to obtain the Gaming Approvals (as defined in the Merger Agreement), (i) the commencement, occurrence, continuation or escalation of any war, armed hostilities or acts of terrorism, (j) any actions or claims made or brought by any of the current or former stockholders of the Company (or on their behalf or on behalf of the Company, but in any event only in their capacities as current or former stockholders) arising out of the Merger Agreement or the Mergers (as defined in the Merger Agreement); or (k) the existence, occurrence or continuation of any force majeure events, including any earthquakes, floods, hurricanes, tropical storms, fires or other natural disasters or any national, international or regional calamity; provided, that (1) the exceptions in clauses (c) and (g) hereof shall not prevent the underlying cause of any such change, decline or failure referred to therein (if not otherwise falling within any of the exceptions provided by clauses (a) through (k) hereof) from constituting a Company Material Adverse Effect or being taken into account in determining whether a Company Material Adverse Effect has occurred and (2) any Effect referred to in clauses (b), (e), (i) or (k) hereof may be taken into account in determining whether there has been, or would be, a Company Material Adverse Effect to the extent such Effect has a disproportionate adverse effect on the Company and the Company Subsidiaries (as defined in the Merger Agreement), taken as a whole, as compared to other participants in the principal industries in which the Company and the Company Subsidiaries (as defined in the Merger Agreement) operate.

 

Notwithstanding anything in this Commitment Letter, the Fee Letters or the definitive documentation for the Bridge Facility to the contrary, (a) the only representations and warranties the accuracy of which shall be a condition to availability of the Bridge Facility on the Closing Date shall be (i) such of the representations and warranties made by the Company in the Merger Agreement as are material to the interests of the Lenders, but only to the extent that you have (or a subsidiary or affiliate has) the right to terminate your (or its) obligations under the Merger Agreement or decline to consummate the Acquisition, in each case, as a result of a breach of such representations and warranties in the Merger Agreement (the “Merger Agreement Representations”), and (ii) the Specified Representations (as defined below) and (b) the terms of the definitive documentation for the Bridge Facility shall be in a form such that they do not impair availability of the Bridge Facility on the Closing Date if the conditions set forth in this Section 6 and Exhibit B are satisfied.  For purposes hereof, “Specified Representations” means the representations and warranties set forth in the Term Sheet relating to: corporate status and organization; corporate power and authority; due authorization, execution and delivery, in each case as they relate to the entering into and performance of the definitive documentation for the Bridge Facility; the enforceability of such documentation; consummation of the Transactions to be consummated on or prior to the Closing Date in accordance with the Transaction Description (other than changes thereto that are not material and adverse to the interests of the Initial Lenders); Federal Reserve margin regulations; the PATRIOT Act (as defined below); FCPA; OFAC; the Investment Company Act; the No Conflicts Representation (as defined in Exhibit A); solvency of the Borrowers and their applicable subsidiaries on a consolidated basis; if applicable, creation, validity, perfection and priority of security interests (it being understood that (A) other than with respect to any UCC Filing Collateral, Stock Certificates or Intellectual Property (each as defined below) if, pursuant to the terms of the Term Sheet and Exhibit B hereto, security is required to be granted on the Closing Date, to the extent any Collateral is not or cannot be delivered, or a security interest therein cannot be perfected, on the Closing Date after your use of commercially reasonable efforts to do so, the delivery of, or perfection of a security interest in, such Collateral shall not constitute a condition precedent to the availability of the Bridge Facility on the

 

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Closing Date, but such Collateral shall instead be required to be delivered, or a security interest therein perfected, after the Closing Date pursuant to arrangements and timing to be mutually agreed by the parties hereto acting reasonably (but in all events no later than 30 days after the Closing Date or such later date as may be reasonably agreed in writing by the Majority Lead Arrangers), (B) with respect to perfection of security interests in UCC Filing Collateral, your sole obligation shall be to deliver, or cause to be delivered, necessary UCC financing statements to the Agent and to irrevocably authorize and to cause the applicable guarantor to irrevocably authorize the Agent to file such UCC financing statements, (C) with respect to perfection of security interests in Stock Certificates, your sole obligation shall be to deliver to the Agent or its legal counsel Stock Certificates together with undated stock powers executed in blank and (D) with respect to perfection of security interests in Intellectual Property, in addition to the actions required by clause (B), your sole obligation shall be to execute and deliver, or cause to be executed and delivered, necessary intellectual property security agreements to the Agent in proper form for filing with the United States Patent and Trademark Office (the “USPTO”) and the United States Copyright Office (the “USCO”) and to irrevocably authorize, and to cause the applicable guarantor to irrevocably authorize, the Agent to file such intellectual property security agreements with the USPTO and USCO).  For purposes hereof, (1) “UCC Filing Collateral” means Collateral consisting of assets of the Company, the Borrowers and their respective subsidiaries for which a security interest can be perfected by filing a Uniform Commercial Code financing statement, (2) “Stock Certificates” means Collateral consisting of stock certificates representing capital stock of each U.S. Borrower and subsidiaries of any of the Borrowers organized under the laws of the United States (or any State or territory thereof) (each a “U.S. Entity”) owned by each U.S. Borrower or any other U.S. Entity that is a Loan Party required as Collateral pursuant to the Term Sheet and (3) “Intellectual Property” means all patents, patent applications, trademarks, trade names, service marks and copyrights registered with the USPTO or the USCO.  This paragraph shall be referred to herein as the “Certain Funds Provision”.

 

7.             Required Existing Bonds Process.

 

To facilitate the consummation of the Transactions, you agree, on one or more dates on or after the date hereof as reasonably determined by the Majority Lead Arrangers in consultation with you, to commence a process (pursuant to procedures and documentation reasonably satisfactory to the Majority Lead Arrangers) to obtain and, in addition, to use commercially reasonable efforts (including, among other things, by you agreeing to pay (or cause to be paid) amendment and/or consent fees to be reasonably agreed between you and us prior to the launch of the applicable amendment and/or consent process and, except as otherwise agreed by you, not to exceed a fee specified in the Arranger Fee Letter to obtain, an amendment and/or consent to each of (A) your (i) €750,000,000 5.375% Guaranteed Notes due 2016, (ii)  €500,000,000 5.375% Guaranteed Notes due 2018, (iii)  €500,000,000 3.500% Guaranteed Notes due 2020 and (iv) €750,000,000 Subordinated Interest-Deferrable Capital Securities due 2066 (the “Purchaser Capital Securities”) (collectively, the “Existing Purchaser Bonds”) to permit the consummation of the Transactions (the requirements specified in this sentence with respect to the Existing Purchaser Bonds, the “Required Existing Purchaser Bond Process”) and (B) (i) the Company’s US$500,000,000  7.500% Notes due 2019, (ii) the Company’s US$300,000,000 5.500% Notes due 2020 and (iii) the Company’s US$500,000,000  5.350% Notes due 2023 (collectively, the “Existing Company Bonds” and, together with the Purchaser Existing Bonds, the “Existing Bonds”) to permit the consummation of the Transaction without undertaking any action required pursuant to the Change of Control Repurchase Event (as defined in the indentures of the Existing Company Bonds) (the requirements specified in this sentence with respect to the Existing Company Bonds, the “Required Existing Company Bond Process” and, together with the Required Existing Purchaser Bond Process, the “Required Existing Bond Process”); it being understood and agreed that no particular outcome of the Required Existing Bonds Process constitutes a condition to the availability of the Bridge Facility on the Closing Date.

 

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8.                                      Indemnification; Expenses.

 

You agree (a) to indemnify and hold harmless each of us and our respective affiliates and the officers, directors, employees, representatives, agents, advisors, controlling persons, members and successors and assigns of each of the foregoing (each, an “Indemnified Person”) from and against any and all losses, claims, damages, liabilities and out-of-pocket expenses, joint or several, to which any such Indemnified Person may become subject arising out of or in connection with any actual or threatened claim, litigation, investigation or proceeding relating to this Commitment Letter, the Fee Letters, the Transactions, the Existing Bonds, any Permanent Debt Financing, the Bridge Facility or the use or proposed use of proceeds thereof or any related transaction (any of the foregoing, an “Action”), regardless of whether any such Indemnified Person is a party thereto (and regardless of whether such matter is initiated by a third party or by the Company or any of their respective affiliates or equity holders), and to reimburse each such Indemnified Person within 30 days after receipt of a written request together with reasonably detailed backup documentation for any reasonable and documented out-of-pocket legal (limited to one counsel for all Indemnified Persons, taken as a whole, and, if reasonably necessary, a single local counsel to all Indemnified Persons, taken as a whole, in each relevant material jurisdiction and, solely in the case of a conflict of interest, one additional counsel in each applicable material jurisdiction to the affected Indemnified Persons similarly situated taken as a whole) or other reasonable and documented out-of-pocket expenses incurred in connection with investigating or defending any of the foregoing; provided that the foregoing indemnity will not, as to any Indemnified Person, apply to losses, claims, damages, liabilities or related expenses (i) to the extent resulting from the willful misconduct, bad faith or gross negligence of such Indemnified Person or any of its affiliates or controlling persons or any of the officers, directors, employees, partners, successors, agents, advisors or representatives of any of the foregoing, (ii) to the extent arising from a material breach of the obligations of such Indemnified Person or any of its affiliates or controlling persons or any of the officers, directors, employees, partners, successors, agents, advisors or representatives of any of the foregoing under this Commitment Letter, the Fee Letters or the Bridge Facility Documentation (in the case of each of preceding clauses (i) and (ii), as determined by a court of competent jurisdiction in a final and non-appealable judgment) or (iii) to the extent arising from any dispute solely among Indemnified Persons other than claims against any Commitment Party in its capacity or in fulfilling its role as an Agent or arranger or any similar role under the Bridge Facility and other than any claims arising out of any act or omission on the part of you or your affiliates, and (b) to promptly reimburse each of us from time to time, upon presentation of a summary statement, together with supporting documentation reasonably requested by you, for all reasonable and documented out-of-pocket expenses (including, but not limited to, out-of-pocket expenses of our due diligence investigation, consultants’ fees, syndication expenses, travel expenses and reasonable fees, disbursements and other charges of counsel to the Agent identified in the Term Sheets and of a single local counsel to the Agent in each relevant jurisdiction and, solely in the case of a conflict of interest, one additional counsel for such affected persons in each applicable material jurisdiction), in each case, incurred in connection with the Bridge Facility and the preparation, negotiation and enforcement of this Commitment Letter, the Fee Letters, the definitive documentation for the Bridge Facility and any ancillary documents and security arrangements in connection therewith (collectively under this clause (b), the “Expenses”); provided that, except as otherwise set forth in the Arranger Fee Letter, you shall not be required to reimburse any of the Expenses in the event the Closing Date does not occur.  Notwithstanding any other provision of this Commitment Letter, (i) no Indemnified Person, nor (ii) you (or any of your subsidiaries or affiliates) or the Company, shall be liable for any indirect, special, punitive or consequential damages in connection any matter related to, or in connection with, this Commitment Letter, the Fee Letters, the Transactions, the Bridge Facility or any related transaction (in the case of clause (ii), other than in respect of any such damages required to be indemnified under this Section 8). You shall not be liable for any settlement of any Action effected without your prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed), but if settled with your written consent, you agree to indemnify and hold harmless each Indemnified Person in the manner set

 

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forth above. Notwithstanding the immediately preceding sentence, if at any time an Indemnified Person shall have requested in accordance with this Commitment Letter that you reimburse such Indemnified Person for legal or other expenses in connection with investigating, responding to or defending any Action, you shall be liable for any settlement of any Action effected without your written consent if (a) such settlement is entered into more than 30 days after receipt by you of such request for reimbursement and (b) you shall not have reimbursed such Indemnified Person in accordance with such request prior to the date of such settlement.  You shall not, without the prior written consent of the affected Indemnified Person, effect any settlement of any pending or threatened Action against such Indemnified Person in respect of which indemnity has been sought hereunder by such Indemnified Person unless such settlement (i) includes an unconditional release of such Indemnified Person in form and substance reasonably satisfactory to such Indemnified Person from all liability with respect to claims that are the subject matter of such Action and (ii) does not include any statement as to, or any admission of, fault, culpability, wrongdoing or a failure to act by or on behalf of such Indemnified Person.

 

9.                                      Sharing Information; Absence of Fiduciary Relationship; Affiliate Activities.

 

You acknowledge that each Commitment Party may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which you may have conflicting interests regarding the transactions described herein or otherwise.  We will not furnish confidential information obtained from you by virtue of the transactions contemplated by this Commitment Letter or our other relationships with you to other companies.  You also acknowledge that we do not have any obligation to use in connection with the transactions contemplated by this Commitment Letter, or to furnish to you, confidential information obtained by us from other companies.

 

You further acknowledge and agree that (a) no fiduciary, advisory or agency relationship between you and any of us is intended to be or has been created in respect of any of the transactions contemplated by this Commitment Letter, irrespective of whether any of us have advised or is advising you on other matters, (b) each of us, on the one hand, and you, on the other hand, have an arm’s-length business relationship that does not directly or indirectly give rise to, nor do you rely on, any fiduciary duty on the part of any of us, (c) you are capable of evaluating and understanding, and you understand and accept, the terms, risks and conditions of the transactions contemplated by this Commitment Letter, (d) you have been advised that each of us is engaged in a broad range of transactions that may involve interests that differ from your interests and that none of us has any obligation to disclose such interests and transactions to you by virtue of any fiduciary, advisory or agency relationship and (e) you waive, to the fullest extent permitted by law, any claims you may have against any of us for breach of fiduciary duty or alleged breach of fiduciary duty and agree that none of us shall have any liability (whether direct or indirect) to you in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of you, including your stockholders, employees or creditors.  Additionally, you acknowledge and agree that each of us is not advising you as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction (including, without limitation, with respect to any consents needed in connection with the transactions contemplated hereby). You shall consult with your own advisors concerning such matters and shall be responsible for making your own independent investigation and appraisal of the transactions contemplated hereby (including, without limitation, with respect to any consents needed in connection therewith), and we shall have no responsibility or liability to you with respect thereto.  Any review by us of either Borrower, the Company, the Transactions, the other transactions contemplated hereby or other matters relating to such transactions will be performed solely for our benefit and shall not be on behalf of you or any of your affiliates.

 

You further acknowledge that each of us is a full service securities firm engaged in securities trading and brokerage activities as well as providing investment banking and other financial services.  In the ordinary course of business, each of us may provide investment banking and other financial services

 

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to, and/or acquire, hold or sell, for its own accounts and the accounts of customers, equity, debt and other securities and financial instruments (including bank loans and other obligations) of, you, the Borrowers, the Company and other companies with which you, the Borrowers or the Company may have commercial or other relationships.  With respect to any securities and/or financial instruments so held by any of us or any of our customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of the rights, in its sole discretion.

 

10.                               Assignments; Amendments; Governing Law, Etc.

 

This Commitment Letter shall not be assignable by you without the prior written consent of the Initial Lenders and the Lead Arrangers (and any attempted assignment without such consent shall be null and void) (other than (x) to one or more affiliates that are a domestic “shell” company wholly owned and controlled by you that consummates or intends to consummate the Acquisition and (y) in connection with any other assignment that occurs as a matter of law pursuant to, or otherwise substantially simultaneously with, the merger of you into the UK Borrower or pursuant to the Acquisition at the closing of the Acquisition in accordance with the Merger Agreement), is intended to be solely for the benefit of the parties hereto (and Indemnified Persons), and is not intended to confer any benefits upon, or create any rights in favor of, any person other than the parties hereto (and Indemnified Persons).

 

Each Initial Lender may assign all or a portion of its commitment hereunder to one or more prospective Lenders (i) that are acceptable to you (such acceptance not to be unreasonably withheld, conditioned or delayed), (ii) that are, or are the lending affiliates of, any Additional Arrangers or (iii) that you have identified to us in writing on or prior to the date hereof (each, a “Permitted Assignee”), whereupon, so long as such Permitted Assignee is a commercial and/or investment bank, in each case, whose senior, unsecured, long-term indebtedness is rated at least BBB- (with at least a stable outlook) or higher and/or Baa3 (with at least a stable outlook) or higher by not less than two of S&P, Moody’s and Fitch Ratings Ltd., as applicable (any such bank, an “Investment Grade Bank”), then such Commitment Party shall be released from all or the portion of its commitment hereunder so assigned in accordance with, and subject to the limitations in, paragraph 3 of this Commitment Letter.  Any and all obligations of, and services to be provided by, a Commitment Party hereunder (including, without limitation, each Initial Lender’s commitment) may be performed and any and all rights of such Commitment Party hereunder may be exercised by or through any of their respective affiliates or branches and, in connection with such performance or exercise, such Commitment Party may exchange with such affiliates or branches information concerning you and your affiliates that may be the subject of the transactions contemplated hereby and, to the extent so employed, such affiliates and branches shall be entitled to the benefits afforded to such Commitment Party hereunder; provided that no such provision of servicing by any branch or affiliate shall relieve a Commitment Party of its obligations hereunder.  This Commitment Letter may not be amended or any provision hereof waived or modified except by an instrument in writing signed by each of us and you.  This Commitment Letter 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 Commitment Letter by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.  Section headings used herein are for convenience of reference only, are not part of this Commitment Letter and are not to affect the construction of, or to be taken into consideration in interpreting, this Commitment Letter.  You acknowledge that information and documents relating to the Bridge Facility may be transmitted through SyndTrak, Intralinks, the internet, e-mail or similar electronic transmission systems, and that, in the absence of gross negligence or willful misconduct by the Lead Arrangers, none of us shall be liable for any damages arising from the unauthorized use by others of information or documents transmitted in such manner.  The Lead Arrangers may place advertisements in financial and other newspapers and periodicals or on a home page or similar place for dissemination of information on the Internet or worldwide web as it may choose, and circulate similar promotional

 

13

 

materials, after the closing of the Transactions in the form of a “tombstone” or otherwise describing the names of you, the Borrowers and your and their affiliates (or any of them), and the amount, type and closing date of such Transactions, all at the expense of the Lead Arrangers.  This Commitment Letter and the Fee Letters supersede all prior understandings, whether written or oral, between us with respect to the Bridge Facility.  THIS COMMITMENT LETTER AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS COMMITMENT LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK; PROVIDED THAT NOTWITHSTANDING THE PRECEDING SENTENCE AND THE GOVERNING LAW PROVISIONS OF THIS COMMITMENT LETTER AND THE FEE LETTER, IT IS UNDERSTOOD AND AGREED THAT (A) THE INTERPRETATION OF “COMPANY MATERIAL ADVERSE EFFECT” (AND WHETHER SUCH OCCURRED), (B) THE DETERMINATION OF THE ACCURACY OF ANY MERGER AGREEMENT REPRESENTATION AND WHETHER AS A RESULT OF ANY INACCURACY THEREOF YOU OR YOUR APPLICABLE AFFILIATE HAS THE RIGHT TO TERMINATE YOUR OR THEIR OBLIGATION UNDER THE MERGER AGREEMENT OR TO DECLINE TO CONSUMMATE THE ACQUISITION AND (C) THE DETERMINATION OF WHETHER THE ACQUISITION HAS BEEN CONSUMMATED IN ACCORDANCE WITH THE TERMS OF THE MERGER AGREEMENT AND, IN ANY CASE, CLAIMS OR DISPUTES ARISING OUT OF ANY SUCH INTERPRETATION OR DETERMINATION OR ANY ASPECT THEREOF, IN EACH CASE, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE, REGARDLESS OF CONFLICTS OF LAWS.

 

11.                               Jurisdiction.

 

Each of the parties hereto hereby irrevocably and unconditionally (a) submits, for itself and its property, to the exclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in the Borough of Manhattan in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Commitment Letter, the Fee Letters or the transactions contemplated hereby or thereby, and agrees that all claims in respect of any such action or proceeding may be heard and determined only in such New York State court or, to the extent permitted by law, in such Federal court, (b) waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Commitment Letter, the Fee Letters or the transactions contemplated hereby or thereby in any New York State court or in any such Federal court, (c) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court and (d) agrees that a final judgment in any such 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 that with respect to any suit, action or proceeding arising out of or relating to the Merger Agreement or the transactions contemplated thereby and which do not involve claims against us or the Lenders, this sentence shall not override any jurisdiction or venue provisions set forth in the Merger Agreement.  Service of any process, summons, notice or document by registered mail addressed to you at the address above shall be effective service of process against you for any suit, action or proceeding brought in any such court.

 

You irrevocably designate and appoint GTECH Corporation (the “Process Agent”) as your authorized agent upon which process may be served in any action, suit or proceeding arising out of or relating to this Commitment Letter or the Fee Letters that may be instituted by CS Securities or any other Indemnified Person in any Federal or state court in the State of New York.  You hereby agree that service of any process, summons, notice or document by U.S. registered mail addressed to the Process Agent with written notice of said service to you at the address above shall be effective service of process for any action, suit or proceeding brought in any such court.  You further agree to take any and all action,

 

14

 

including execution and filing of any and all such documents and instruments, as may be necessary to continue the designation and appointment of the Process Agent for a period of six years from the date of this Commitment Letter.

 

12.                               Waiver of Jury Trial.

 

EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS COMMITMENT LETTER, THE FEE LETTERS OR THE PERFORMANCE OF SERVICES HEREUNDER OR THEREUNDER.

 

13.                               Confidentiality.

 

This Commitment Letter is delivered to you on the understanding that neither this Commitment Letter nor the Fee Letters nor any of their terms or substance, nor the activities of any of us pursuant hereto, shall be disclosed, directly or indirectly, to any other person or entity (including other lenders, underwriters, placement agents, advisors or any similar persons) except (a) to your officers, directors, employees, attorneys, accountants and advisors on a confidential and need-to-know basis, (b) if the Commitment Parties consent in writing prior to such proposed disclosure, (c) this Commitment Letter may be disclosed as may be required by the rules, regulations, schedules and forms of the Securities and Exchange Commission (the “SEC”) or any other national securities exchange in connection with any filings with the SEC or such exchange in connection with the Transactions, or (d) pursuant to the order of any court or administrative agency in any pending legal or administrative proceeding, or otherwise as required by applicable law, regulation, compulsory legal process or as requested by a governmental authority (in which case you agree to inform us promptly thereof prior to such disclosure to the extent practicable and so long as you are lawfully permitted to do so); provided that (i) you may disclose this Commitment Letter and the contents hereof and the Fee Letter with certain terms redacted in a manner reasonably acceptable to us to the Company and its officers, directors, employees, attorneys, accountants and advisors on a confidential and need-to-know basis, (ii) you may disclose the aggregate fee amounts (including upfront fees and original issue discount) payable under the Fee Letter as part of generic disclosure regarding sources and uses (but without disclosing any specific fees, flex or other economic terms set forth therein) in connection with any syndication of the Bridge Facility and as part of a disclosure of overall transaction fees and expenses (not limited to fees associated with the Bridge Facility) to the Company and its subsidiaries and their respective equity holders, officers, directors, employees, attorneys, accountants, agents and advisors, (iii) you may disclose the Term Sheet and the existence of this Commitment Letter to any rating agency in connection with the Transactions and (iv) you may disclose the Term Sheet and the existence of this Commitment Letter in any syndication of the Bridge Facility, or in any prospectus or offering memorandum related to any debt securities issued in lieu of the Bridge Facility, or in any proxy statement or other public filing in connection with the Permanent Debt Financing.

 

We will treat as confidential all confidential information provided to us by or on behalf of you hereunder; provided that nothing herein shall prevent us from disclosing any (a) any such information pursuant to the order of any court or administrative agency or in any pending legal or administrative proceeding, or otherwise as required by applicable law or compulsory legal process, (b) any such information upon the request or demand of any regulatory authority having jurisdiction over us, (c) any such information to the extent that such information becomes publicly available other than by reason of disclosure by us in violation of this paragraph, (d) any such information to our affiliates and to our and their respective employees, legal counsel, independent auditors and other experts, advisors or agents who

 

15

 

are informed of the confidential nature of such information, (e) any such information to actual or potential assignees, participants or derivative investors in the Bridge Facility who agree to be bound by the terms of this paragraph or substantially similar confidentiality provisions, (f) any such information to the extent permitted by Section 10, (g) any such information for purposes of establishing a “due diligence” defense, (h) information independently developed by any Commitment Party, (i) information received from a third party not known by us to be in breach of its confidentiality obligations to you and (j) any such information if otherwise consented to in writing by you.

 

Notwithstanding anything herein to the contrary, any party to this Commitment Letter (and any employee, representative or other agent of such party) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by this Commitment Letter and the Fee Letters and all materials of any kind (including opinions or other tax analyses) that are provided to it relating to such tax treatment and tax structure, except that (i) tax treatment and tax structure shall not include the identity of any existing or future party (or any affiliate of such party) to this Commitment Letter or the Fee Letters and (ii) no party shall disclose any information relating to such tax treatment and tax structure to the extent nondisclosure is reasonably necessary in order to comply with applicable securities laws.  For this purpose, the tax treatment of the transactions contemplated by this Commitment Letter and the Fee Letters is the purported or claimed U.S. Federal income tax treatment of such transactions and the tax structure of such transactions is any fact that may be relevant to understanding the purported or claimed U.S. Federal income tax treatment of such transactions.

 

14.                               Surviving Provisions.

 

The indemnification, confidentiality, syndication (including clear market), fee and expense, jurisdiction, governing law, service of process and waiver of jury trial provisions contained herein and in the Fee Letters and the provisions of Sections 9 and 10 of this Commitment Letter shall remain in full force and effect regardless of whether definitive financing documentation shall be executed and delivered and (other than in the case of the syndication provisions) notwithstanding the termination of this Commitment Letter or the Initial Lenders’ commitments hereunder and our agreements to perform the services described herein. For the avoidance of doubt, this Commitment Letter supersedes the prior Commitment Letter, dated July 10, 2014; which prior Commitment Letter is null and void and of no legal effect.

 

15.                               PATRIOT Act Notification.

 

We hereby notify you that, pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “PATRIOT Act”), each of us and each Lender is required to obtain, verify and record information that identifies each Borrower, which information includes the name, address, tax identification number and other information regarding each Borrower that will allow each of us or such Lender to identify each Borrower in accordance with the PATRIOT Act.  This notice is given in accordance with the requirements of the PATRIOT Act and is effective as to each of us and each Lender.  You hereby acknowledge and agree that we shall be permitted to share any or all such information with each other Lender.

 

16.                               Acceptance and Termination.

 

If the foregoing correctly sets forth our agreement with you, please indicate your acceptance of the terms of this Commitment Letter and of the Fee Letters by returning to us executed counterparts hereof and of the Fee Letters not later than 11:59 p.m., New York City time, on July 15, 2014.  Each Initial Lender’s offer hereunder, each Commitment Party’s commitments hereunder and our agreements

 

16

 

to perform the services described herein, will expire automatically and without further action or notice and without further obligation to you at such time in the event that we have not received such executed counterparts in accordance with the immediately preceding sentence.  This Commitment Letter will become a binding commitment of the Initial Lenders only after it has been duly executed and delivered by you in accordance with the first sentence of this Section 16.  Thereafter, all commitments and undertakings of the Initial Lenders and the Commitment Parties hereunder will expire on the earliest of (hereinafter such earliest date, the “Outside Date”) (a) the Outside Date (as defined in, and as may be extended in accordance with, the Merger Agreement as in effect as of the date hereof (it being understood that such date shall be extended to match the business day immediately following the Outside Date as defined in the Merger Agreement (as in effect as of the date hereof) if such Outside Date is extended to a date not beyond the fifteen-month anniversary of the signing of the Merger Agreement (or, if earlier, the date of your acceptance of this Commitment Letter)), in accordance with Section 7.01(b) of the Merger Agreement (as in effect as of the date hereof), (b) the closing of the Acquisition, (c) the date that the Merger Agreement is terminated or expires, and (d) receipt by the Commitment Parties of written notice from the Borrowers of the Borrowers’ election to terminate all commitments hereunder in full.

 

[Remainder of this page intentionally left blank]

 

17

 

We are pleased to have been given the opportunity to assist you in connection with financing for the Acquisition.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
CREDIT SUISSE SECURITIES (USA) LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    

 

[Signature Page to Commitment Letter]

 

 

	
 
    	
 
    	
BARCLAYS BANK PLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    

 

[Signature Page to Commitment Letter]

 

 

	
 
    	
 
    	
CITIGROUP GLOBAL MARKETS LIMITED
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
CITIBANK N.A., LONDON BRANCH
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    

 

[Signature Page to Commitment Letter]

 

 

	
Accepted and   agreed to
    
	
as of the date   first above written:
    
	
 
    	
 
    	
 
    
	
GTECH S.p.A.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name: 
    	
Marco Sala
    	
 
    
	
 
    	
Title: 
    	
Chief Executive Officer
    	
 
    

 

[Signature Page to Commitment Letter]

 

 

EXHIBIT A
  to Commitment Letter

 

PROJECT CLEOPATRA

364-Day Senior Bridge Term Loan Credit Facility

Summary of Principal Terms and Conditions

 

	
Borrowers:
    	
 
    	
(i) A newly formed private limited   company organized under the laws of England and Wales (the “UK   Borrower”), surviving entity of the Holdco Merger (as defined   below) and (ii) (a) GTECH Corporation, a Delaware corporation and   (b) solely for the purpose of repaying indebtedness incurred by the   Company to finance the Special Dividend, the Company (together with GTECH   Corporation, each a “U.S. Borrower”   and collectively the “U.S. Borrowers”   and collectively with the UK Borrower, the “Borrowers”),   on a joint and several basis provided that   the U.S. Borrowers may not borrow more than an amount to be mutually agreed   between the Agent and the UK Borrower (but in no event less than the   indebtedness incurred by the Company to finance the Special Dividend)(for the   avoidance of doubt, the Company shall    be the primary obligor with respect to its borrowings). For the   avoidance of doubt, each U.S. Borrower shall guarantee the obligations of the   UK Borrower, the UK Borrower shall guarantee the obligations of each U.S.   Borrower and each U.S. Borrower shall guarantee the obligations of the other   U.S. Borrower.
    
	
 
    	
 
    	
 
    
	
Transaction Description and Transactions:
    	
 
    	
The transaction description below represents   the present intention of GTECH S.p.A (“you” or   the “Purchaser”) as to the most   efficient manner in which to consummate the Transactions.  The Purchaser will consummate the   Transactions in accordance with the description below, subject to any changes   to the transactions described below that are not material and adverse to the   interests of the Initial Lenders.

 

Pursuant to the Merger Agreement immediately   prior to the Acquisition, you intend to (and shall be required to) merge (the   “Holdco Merger”)   with and into the UK Borrower, with the UK Borrower as the surviving entity,   and, upon consummation of the other transactions contemplated by the Merger   Agreement on or prior to the Closing Date, the UK Borrower will own, directly   or indirectly, all of your other subsidiaries, as well as the Company and its   subsidiaries

 

Prior to the consummation of the Holdco   Merger, you intend to (and shall be required to)  form a new subsidiary organized under the   laws of Italy (“Italian   Opco”) and contribute all of your assets related to the   Italian businesses (including, among other assets, the Lotto concession but   excluding equity interests of subsidiaries) in exchange for shares of Italian   Opco. Thereafter, you intend to (and shall be required to) form an additional   subsidiary organized under the laws of Italy (“Italian Holdco”) and transfer all of your equity   holdings of your existing Italian subsidiaries (other than Italian Opco) in   exchange for the issuance
    

 

A-1

 

	
 
    	
 
    	
of an intercompany note in an amount to be   agreed.

 

Immediately following the consummation of the   transactions set forth in the immediately preceding paragraphs, the UK   Borrower intends to (and shall be required to) acquire (the “Acquisition”) all of the   equity interests of International Game Technology, a Nevada corporation (the   “Company”), pursuant to an   agreement and plan of merger dated July 15, 2014 among the Purchaser,   GTECH Corporation, the UK Borrower, a subsidiary of the UK Borrower, and the   Company (together with the annexes, attachments, schedules and exhibits   thereto, the “Merger   Agreement”), for a combination of cash consideration and   common equity interests of the UK Borrower (collectively, the “Acquisition Consideration”),   the cash portion of which such Acquisition Consideration shall be subject to   reduction on a dollar-for-dollar basis to the extent the Company distributes   a pre-Acquisition dividend to the Company’s shareholders in accordance with Section 5.16   of the Merger Agreement (such dividend, the “Special   Dividend”).

 

Immediately following the consummation of the   Acquisition on the Closing Date, the UK Borrower intends to (and shall be   required to) extend certain intercompany note financing to the Company, in   amounts to be determined, to fund the cash portion of the Acquisition   Consideration to be paid to Company shareholders.  This paragraph and the foregoing paragraphs   under this sub-heading entitled “Transaction Description and Transactions”   are, collectively, referred to as the “Transaction Description”.

 

In connection with the Acquisition, the   Borrowers will obtain a 364-day senior bridge term loan credit facility   described below under the caption “Bridge Facility” that will be used (i) to   pay the cash portion of the Acquisition Consideration and, if applicable,   repay indebtedness incurred by the Company to finance the Special Dividend,   (ii) subject to the outcome of the Required Existing Bond Process, to   refinance, repurchase or redeem certain Existing Bonds and accrued interest   thereunder, (iii) to fund payments to Withdrawing Shareholders with   respect to Remaining Withdrawn Shares and (iv) to pay the premiums, fees   and expenses incurred in connection with the foregoing.  It is anticipated that some or all of the   Bridge Facility will be repaid and/or replaced or refinanced by the net cash   proceeds from the issuance of securities (the “Notes”) or borrowings under one or more term loan   credit agreements or revolving credit facilities (such term loan and/or   revolving credit facilities, together with the Notes, the “Permanent Debt Financing”).  The transactions described in this   paragraph (including, but not limited to, the consummation of the Bridge   Facility), together with the Required Existing Bond Process, and the   transactions described in the Transaction Description are, collectively,   referred to herein as the 
    

 

A-2

 

	
 
    	
 
    	
“Transactions”.
    
	
 
    	
 
    	
 
    
	
Agent:
    	
 
    	
Credit Suisse AG, acting through one or more   of its branches or affiliates (“CS”),   will act as sole administrative agent (collectively, in such capacities, the   “Agent”) for a   syndicate of banks, financial institutions and other institutional lenders   (together with CS, the “Lenders”),   and will perform the duties customarily associated with such roles.
    
	
 
    	
 
    	
 
    
	
Joint Bookrunners and Joint Lead Arrangers:
    	
 
    	
Each of CS Securities, Barclays Bank PLC and   Citigroup Global Markets Limited will act as a joint lead arranger for the   Bridge Facility (in such capacity, together with any of its designated affiliates   of similar creditworthiness, the “Lead Arrangers”)   and as a joint bookrunner, and will perform the duties customarily associated   with such roles.
    
	
 
    	
 
    	
 
    
	
Syndication Agent:
    	
 
    	
Barclays Bank PLC and Citibank, N.A., London   Branch acting through one or more of its respective branches or affiliates,   will act as co-syndication agents (collectively, in such capacity, the “Syndication Agent”).
    
	
 
    	
 
    	
 
    
	
Documentation Agent:
    	
 
    	
At the option of the Lead Arrangers, one or   more financial institutions identified by the Lead Arrangers and acceptable   to the Borrowers (in such capacity, the “Documentation Agent”).
    
	
 
    	
 
    	
 
    
	
Bridge Facility:
    	
 
    	
A 364-day senior bridge term loan credit   facility in an aggregate principal amount specified below  or such lesser amount as you may elect to   borrow in your sole discretion and, in all events, subject to reduction in   accordance with the remainder of this Term Sheet (the “Bridge Facility” and the   loans thereunder, the “Loans” or   “Bridge Loans”) and comprised of:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
the Acquisition Sub-Facility in an aggregate   principal amount of $4,566,000,000;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
the Existing Company Bonds Delayed Draw   Sub-Facility in an aggregate principal amount of $1,313,000,000;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)
    	
the Existing Purchaser Bonds Delayed Draw   Sub-Facility in an aggregate principal amount of EUR 2,802,000,000; and
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iv)
    	
the Withdrawn Shares Sub-Facility in an   aggregate principal amount of EUR 746,000,000.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Acquisition Sub-Facility and the Existing   Company Bonds Delayed Draw Sub-Facility shall be available in Dollars and the   Existing Purchaser Bonds Delayed Draw Sub-Facility and Withdrawn Shares   Sub-Facility shall be available in Euros.
    
	
 
    	
 
    	
 
    
	
Existing Purchaser Bonds Commitment Reduction   
    	
 
    	
With respect to each amendment and/or consent   contemplated by the Required Existing Purchaser Bond Process, to the extent   such 
    

 

A-3

 

	
Amount:
    	
 
    	
amendment and/or consent becomes effective in   accordance with its terms, on the first business day following each such   effectiveness date (each such date, from time to time, an “Existing Purchaser Bonds Commitment Reduction   Calculation Date”), the Agent shall calculate the Existing   Purchaser Bonds Commitment Reduction Amount with respect thereto.  On any applicable Existing Purchaser Bonds   Commitment Reduction Calculation Date, the “Existing   Purchaser Bonds Commitment Reduction Amount” shall be an   amount equal to the Specified Purchaser Bonds Principal Amount (as set forth   in the table below) of the applicable Existing Purchaser Bonds (i.e., the   Existing Purchaser Bonds with respect to which the relevant amendment and/or   consent effectiveness date has occurred):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Existing Purchaser Bonds
    	
 
    	
Specified Purchaser Bonds
   Principal Amount
    
	
 
    	
 
    	
€750,000,000 5.375%
   Guaranteed Notes due 2016
    	
 
    	
EUR
    	
819.0 million
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
€500,000,000 5.375%
   Guaranteed Notes due 2018
    	
 
    	
EUR
    	
573.0 million
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
€500,000,000 3.500%
   Guaranteed Notes due 2020
    	
 
    	
EUR
    	
563.0 million
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
€750,000,000 Subordinated Interest-Deferrable   Capital Securities due 2066
    	
 
    	
EUR
    	
847.0 million
    

 

	
 
    	
 
    	
 
    
	
Existing Company Bonds Commitment Reduction   Amount:
    	
 
    	
In connection with the consummation of the   Transactions, in the event that any put options are triggered from time to   time under, and pursuant to the terms of the definitive bond documentation   for any of the Existing Company Bonds, the Agent (in consultation with the   Borrowers) shall determine, with respect to any such series of Existing   Company Bonds, the aggregate principal amount of such Existing Company Bonds   subject to such put (as calculated on the first business day after the   outside calculation date for such determination, as set forth under the terms   of the applicable definitive bond documentation therefor) (each such   calculation date (which, for the avoidance of doubt, may be prior to, on or   after the Closing Date), from time to time, a “Existing   Company Bonds Commitment Reduction Calculation Date”) and,   with respect thereto, the Agent shall calculate the Existing Company Bonds   Commitment Reduction Amount.  On any   applicable Existing Company Bonds Commitment Reduction Calculation Date   contemplated by this paragraph, the “Existing Company Bonds   Commitment Reduction Amount” shall be an amount equal to the   Specified Company Bond Principal Amount (as set forth in the table below) of   the applicable Existing Company Bonds (i.e., the Existing
    

 

A-4

 

	
 
    	
 
    	
Company Bonds with respect to which the   relevant put process has been consummated) minus the aggregate   principal amount of the applicable Existing Company Bonds tendered and repaid   as part of the applicable put process:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Existing Company Bonds
    	
 
    	
Specified Company Bonds Principal Amount
    
	
 
    	
 
    	
US$500,000,000 
   7.500% Notes due 2019
    	
 
    	
$
    	
505.0 million
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
US$300,000,000
   5.500% Notes due 2020
    	
 
    	
$
    	
303.0 million
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
US$500,000,000
   5.350% Notes due 2023
    	
 
    	
$
    	
505.0 million
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In addition, with respect to each amendment   and/or consent contemplated by the Required Existing Company Bond Process, to   the extent such amendment and/or consent becomes effective in accordance with   its terms, on the first business day following each such effectiveness date   (each such date, also an “Existing Purchaser Bonds   Commitment Reduction Calculation Date” for purposes of this   Commitment Letter), the Agent shall calculate the Existing Company Bonds   Commitment Reduction Amount with respect thereto (as further specified in the   immediately succeeding sentence).  On   any applicable Existing Purchaser Company Commitment Reduction Calculation   Date contemplated in this paragraph, the “Existing   Company Bonds Commitment Reduction Amount” with respect   thereto shall be an amount equal to the Specified Company Bonds Principal   Amount (as set forth in the table above) of the applicable Existing Company   Bonds (i.e., the Existing Company Bonds with respect to which the relevant   amendment and/or consent effectiveness date has occurred).
    
	
 
    	
 
    	
 
    
	
Purchaser Withdrawal Rights Commitment   Reduction Amount:
    	
 
    	
In connection with the consummation of the   Transactions, the Borrowers acknowledge and agree that you will be required   to hold a meeting of shareholders to resolve upon the Holdco Merger (the “Relevant Shareholders’ Meeting Resolution”)   and with respect thereto your shareholders shall accrue rights of withdrawal   pursuant to, and in accordance with, Article 2437 of the Italian Civil   Code (the “Withdrawal Rights”).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
On the date that is one business day (the “First Withdrawal Rights Commitment Reduction   Calculation Date”) after the date that is 15 days after the   date of registration in the Registry of Enterprises of the Relevant   Shareholders’ Meeting Resolution (or such later date on which the last   communication for the exercise of the withdrawal rights by the Withdrawing 
    
							

 

A-5

 

	
 
    	
 
    	
 
    	
Shareholders (as defined below) has been   received by you in accordance with Article 2437-bis   of the Italian Civil Code), the Agent shall calculate an amount (the “First Purchaser Withdrawal Rights Commitment   Reduction Amount”) equal to    EUR 746,000,000 minus an amount calculated as follows:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(x)
    	
EUR 746,000,000; minus
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(y)
    	
the aggregate number of Withdrawn Shares (as   defined below) multiplied by the Withdrawal Rights Exercise Price (as   defined below).
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
For purposes hereof, “Withdrawn   Shares” shall be the shares in you of your shareholders who   have elected to exercise their respective Withdrawal Rights (the “Withdrawing Shareholders”); and “Withdrawal Rights Exercise Price”   shall be the price per share at which withdrawal rights can be exercised by   the Withdrawing Shareholders as calculated in accordance with Article 2437-ter of the Italian Civil Code.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
Save to the extent that the aggregate   principal amount of the Withdrawn Shares Sub-Facility has been reduced to   zero under paragraph (i) above, on the date that is one business   day (the “Second Withdrawal Rights Commitment   Reduction Calculation Date”) after the earlier of (a) the   date that is 180 days after the First Withdrawal Rights Commitment Reduction   Calculation Date and (b) the date on which you are actually required to   repurchase the Remaining Withdrawn Shares (as defined below) in accordance   with Article 2437-quater of the   Italian Civil Code, the Agent shall calculate an amount equal to the   Withdrawal Rights Exercise Price multiplied by an amount of Withdrawn   Shares equal to (x) the Withdrawn Shares minus (y) the   Remaining Withdrawn Shares (as defined below) (such amount, the “Second Purchaser Withdrawal Rights Commitment   Reduction Amount”); for purposes hereof, “Remaining   Withdrawn Shares” shall be the Withdrawn Shares which have not   been purchased by another shareholder of you or placed in the share market   prior to the Second Withdrawal Rights Commitment Reduction Calculation Date   in accordance with Article 2437-quater of the   Italian Civil Code. 
    
	
 
    	
 
    	
 
    	
 
    
	
Use of Proceeds:
    	
 
    	
(i)
    	
The proceeds of the Acquisition Sub-Facility   will be used by the UK Borrower on the date of the initial borrowing under   the Bridge Facility (the “Closing   Date”), solely (a) to pay the Acquisition Consideration,   (b) to refinance the Existing Credit Facility and (c) to pay fees   and expenses
    

 

A-6

 

	
 
    	
 
    	
 
    	
incurred in connection with Acquisition and   the other Transactions; provided   that the Acquisition Sub-Facility may be used by the Company, as Borrower,   for purposes of repaying existing indebtedness of the Company and its   subsidiaries to the extent such indebtedness was used for purposes of paying   the Special Dividend to the existing stockholders of the Company, to the   extent that the use of proceeds of the Acquisition Sub-Facility to repay such   indebtedness has a corresponding reduction (on a dollar-for-dollar basis and   in accordance with the  Merger   Agreement) in the amount of the cash component of the Acquisition   Consideration payable; provided,   further that the   aggregate amount of the commitments for the Acquisition Sub-Facility shall be   permanently reduced, in an aggregate amount not to exceed $848,000,000, by the aggregate outstanding principal amount under any revolving   credit facilities available to the UK Borrower or any of its subsidiaries on   the Closing Date (on a pro forma basis after giving effect to any drawing   under the Acquisition Sub-Facility and the application of proceeds   therefrom), including, without limitation, any refinancing or amendment and   restatement of the Existing Credit Agreement or the Indiana Credit Agreement.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
The proceeds of the Existing Purchaser Bonds   Delayed Draw Sub-Facility shall be used solely (x) to repay, redeem or   repurchase on and after the Closing Date all outstanding Existing Purchaser   Bonds (including any accrued interest and required prepayment premiums and/or   required make-whole payments) with respect to which an effective amendment   and/or consent contemplated by the Required Existing Purchaser Bond Process   has not been achieved prior thereto (as reasonably determined by the Agent in   consultation with the UK Borrower); provided that   the portion of Existing Purchaser Bonds Delayed Draw Sub-Facility relating to   the Purchaser Capital Securities (i.e., EUR 847.0 million) shall only be   permitted to be so borrowed on the Closing Date and (y) on the Closing   Date, to fund any tender by the Purchaser of Existing Purchaser Bonds   (including any accrued interest and tender premiums (but not to exceed any   required prepayment premium and make-whole amounts which would be payable if   such bonds were subject to an applicable put or call (except as otherwise   reasonably agreed by the Majority Lead Arrangers)).
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)
    	
The Existing Company Bonds Delayed Draw   Sub-Facility shall be used solely (x) on and after the Closing Date to   repay, redeem or repurchase Existing Company Bonds (including any accrued   interest and required prepayment premiums and/or required make-whole payments)   put back 
    

 

A-7

 

	
 
    	
 
    	
 
    	
to the Company, in accordance with the   applicable definitive bond documentation therefor, as a result of the   Transactions and (y) on the Closing Date, to fund any tender by the   Company for Existing Company Bonds (including any accrued interest and tender   premiums (but not to exceed any required prepayment premium and make-whole   amounts which would be payable if such bonds were subject to an applicable   put or call (except as otherwise reasonably agreed by the Majority Lead   Arrangers)).
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iv)
    	
The Withdrawn Shares Sub-Facility shall be   used solely to fund payments on the Closing Date by you (or the Borrowers) to   Withdrawing Shareholders with respect to the Remaining Withdrawn Shares.
    
	
 
    	
 
    	
 
    	
 
    
	
Availability:
    	
 
    	
The Bridge Facility (other than the Existing   Company Bonds Delayed Draw Sub-Facility and the Existing Purchaser Bonds   Delayed Draw Sub-Facility; provided that   the portion of Existing Purchaser Bonds Delayed Draw Sub-Facility relating to   the  Purchaser Capital Securities   (i.e., EUR 847.0 million) shall only be permitted to be drawn on the Closing   Date) must be drawn in a single drawing on the Closing Date which shall occur   on or prior to the Outside Date. Amounts borrowed under the Bridge Facility   that are repaid or prepaid may not be reborrowed.
    
	
 
    	
 
    	
 
    
	
Availability - Existing Company Bonds Delayed   Draw Sub-Facility:
    	
 
    	
At any time on or after the Closing Date and   prior to the earlier of (i) the redemption of the Existing Company Bonds   tendered pursuant to a Change of Control Repurchase Event (as defined in the   indentures of the Existing Company Bonds) on the last Change of Control   Payment Date (as defined in the indentures of the Existing Company Bonds) to   occur of any of the Existing Company Bonds, (ii) the date that is 150   days after consummation of the merger of US Merger Sub into the Company,   which date shall be extended, if during such period any rating agency has   publicly announced it is considering a possible ratings downgrade of the Existing   Company Bonds and during such period has not published a new rating of the   Existing Company Bonds, until such rating agency has publicly announced such   rating and, if applicable, the last Change of Control Payment Date thereafter   has occurred and (iii) the date the Required Existing Company Bond   Process is successfully consummated (the “Delayed   Draw Company Bonds Outside Date”), the Borrower may make one   or more drawings under the Existing Company Bonds Delayed Draw Sub-Facility   in a minimum amount of at least $1.0 million and in integral multiples of   $250,000 in excess thereof, subject to satisfaction of all conditions of   borrowing (as set forth below), for the purposes of funding, in whole or in   part, the payment of Existing Company Bonds put back to the Company in   accordance with the applicable 
    

 

A-8

 

	
 
    	
 
    	
definitive bond documentation therefor (or   otherwise tendered in a tender offer by the Borrowers, the Company or any of   their subsidiaries therefor in accordance with this Term Sheet) and to pay   reasonable fees and expenses incurred in connection therewith.

 

Amounts borrowed under the Existing Company   Bonds Delayed Draw Sub-Facility that are repaid or prepaid may not be   reborrowed.

 

Once made, loans made under the Existing   Company Bonds Delayed Draw Sub-Facility shall be Loans and incorporated into   and treated as part of the Bridge Facility for all purposes.
    
	
 
    	
 
    	
 
    
	
Availability - Existing Purchaser Bonds Delayed   Draw Sub-Facility:
    	
 
    	
At any time on or after the Closing Date and   prior to the date that is 60 days after the Closing Date (the “Delayed Draw Purchaser Bonds Outside Date”),   the Borrower may make one or more drawings under the Existing Purchaser Bonds   Delayed Draw Sub-Facility in a minimum amount of at least $1.0 million and in   integral multiples of $250,000 in excess thereof, subject to satisfaction of   all conditions of borrowing (as set forth below), for the purposes of   funding, in whole or in part, the redemption or purchase of Existing   Purchaser Bonds with respect to which an effective amendment and/or consent   contemplated by the Required Existing Purchaser Bond Process has not been   achieved prior thereto (as reasonably determined by Agent in consultation   with the UK Borrower) and to pay reasonable fees and expenses incurred in   connection therewith.

 

Amounts borrowed under the Existing Purchaser   Bonds Delayed Draw Sub-Facility that are repaid or prepaid may not be   reborrowed.

 

Once made, loans made under the Existing   Purchaser Bonds Delayed Draw Sub-Facility shall be Loans and incorporated   into and treated as part of the Bridge Facility for all purposes.
    
	
 
    	
 
    	
 
    
	
Guarantees:
    	
 
    	
Each existing and subsequently acquired or   organized subsidiary of the Borrowers will guarantee (the “Guarantees”) the Bridge   Loans on a senior basis; provided that   (i) upstream guarantees by subsidiaries of the UK Borrower that are not   U.S. Entities (collectively, the “Non-U.S. Entities”) shall be subject to   applicable financial assistance analysis and customary corporate benefit requirements   (or similar requirements), (ii) the only Guarantees required to be   provided on the Closing Date shall be guarantees by (subject to other   provisions of this section) US. Entities, U.K. entities and Italian entities;   provided, that all other guarantees will be required to be provided promptly   thereafter (subject to other provisions of this section) pursuant to post-
    

 

A-9

 

	
 
    	
 
    	
closing arrangements reasonably satisfactory   to the Majority Lead Arrangers and (iii) Guarantees will not be required   of (v) solely with respect to guaranteeing the obligations of each U.S.   Borrower, any subsidiary that is a “controlled foreign corporation” within   the meaning of section 957 of the United States Internal Revenue Code of   1986, as amended  (a “CFC”), of to the   extent making such CFC a guarantor would result in material and adverse U.S.   tax consequences to the Borrowers, (w) certain subsidiaries to the   extent a guarantee by any such subsidiary is not permitted by law, regulation   or contract existing on the Closing Date or on the date any such subsidiary   is acquired or organized (as long as, in the case of an acquisition of a   subsidiary, such prohibition in respect of such contract did not arise as   part of such acquisition), (x) in the case of any hedging obligations,   if applicable, any subsidiary that is not an “Eligible Contract Participant”   as defined in the Commodity Exchange Act, (y) any subsidiary acquired   pursuant to a permitted acquisition or investment that is subject to   indebtedness permitted to be assumed pursuant to the Bridge Facility   definitive documentation (the “Bridge Facility   Documentation”) and any restricted subsidiary thereof that   guarantees such indebtedness, in each case to the extent, and so long as,   such indebtedness prohibits such subsidiary from becoming a Guarantor, and   (z) any subsidiary where the Agent and the Borrower agree that the cost   of obtaining a guarantee by such subsidiary would be excessive in light of   the practical benefit to the afforded thereby (the “Guarantors”   and, together with the Borrower, the “Loan Parties”).
    
	
 
    	
 
    	
 
    
	
Collateral:
    	
 
    	
Unless, no less than fifteen (15) business   days prior the Closing Date, the UK Borrower has received Investment Grade   Ratings and subject to the Certain Funds Provision, the Bridge Facility and   the Guarantees will be required to be secured by substantially all the assets   of each Borrower and each Guarantor (provided if at any time on or prior to   the Closing Date, the UK Borrower has subsequently received Investment Grade   Ratings then the Collateral requirements shall not be applicable for so long   as the UK Borrower maintains such Investment Grade Ratings), whether owned on   the Closing Date or thereafter acquired (collectively, the “Collateral”),   including but not limited to: (a) a perfected first-priority pledge of   all the equity interests held by each Borrower or any Guarantor and (b) perfected   first-priority security interests in, and mortgages on, substantially all   tangible and intangible assets of Borrowers and each Guarantor.   Notwithstanding the foregoing, the Collateral shall not include any   particular asset or right under contract, if the pledge thereof or the   security interest therein is prohibited or restricted by applicable law,   rule, regulation or contract (in existence on the Closing Date) (including   any requirement thereunder to obtain the consent of any governmental or   regulatory authority) (it being understood and agreed that you shall use   commercially reasonable efforts to obtain such consent), other than to the   extent
    

 

A-10

 

	
 
    	
 
    	
such prohibition or restriction is rendered   ineffective under the UCC or other applicable law notwithstanding such   prohibition or restriction. The Collateral shall be subject to further   exceptions, including “Agreed Security Principles” with respect to Collateral   outside of the United States, to be mutually agreed between the Agent and the   Borrowers, and, further, shall be subject to a customary exclusion (to be   reasonably agreed) with respect to the pledge of stock in any subsidiary of the Company to the   extent that Rule 3-16 of Regulation S-X under the Securities Act would   require (at the applicable date of determination from time to time) separate   financial statements of such subsidiary to be filed with the SEC if such   pledge was then in effect.

 

All the above-described pledges, security   interests and mortgages shall be created on terms, and pursuant to   documentation, satisfactory to the Lead Arrangers (including, in the case of   real property in applicable jurisdictions, by customary items such as   satisfactory title insurance and surveys), subject to customary and limited   exceptions to be agreed upon.

 

To the extent applicable with respect to any   series of the Existing Bonds outstanding on the Closing Date or the Existing   Credit Agreement (as defined below), to the extent that, pursuant to the   terms of definitive documentation therefor it is required that such   applicable Existing Bonds or Existing Credit Agreement, as applicable, be   granted security, on an equal and ratable basis, then such Existing Bonds   and/or Existing Credit Agreement, as applicable, shall be granted equal   ranking security in the Collateral (or the applicable portion thereof)  on the Closing Date (or such later date as   shall be reasonably specified by the Majority Lead Arrangers, in consultation   with you) pursuant to the documentation governing the security interests   described above and containing (or there shall be a separate agreement   containing) intercreditor provisions that are in form and substance as are   customary for transactions of this type.
    
	
 
    	
 
    	
 
    
	
CAM Sharing   Provisions:
    	
 
    	
To the extent requested by the Agent, the   Bridge Facility Documentation shall contain customary “CAM” provisions   requiring, upon the occurrence of (x) a bankruptcy or insolvency Event   of Default (as defined below) with respect to any Borrower or (y) any   acceleration of the Loans, then each Lender under all or certain tranches   having different Borrowers shall purchase and sell undivided participating   interests in the outstanding Loans and other extensions of credit under each   such tranche in such amounts so that each such Lender shall share pro rata in   all outstanding Loans and other extensions of credit of each Borrower under   each such tranche.
    
	
 
    	
 
    	
 
    
	
Interest Rates and   Fees:
    	
 
    	
As set forth on Annex I hereto.
    

 

A-11

 

	
Default Rate:
    	
 
    	
The applicable interest rate plus 2.00% per annum on amounts overdue.
    
	
 
    	
 
    	
 
    
	
Final Maturity, Amortization and Conversion:  
    	
 
    	
The Bridge Facility will mature on the date   that is 364 days after the Closing Date (the “Maturity Date”).    There will be no scheduled amortization.
    
	
 
    	
 
    	
 
    
	
Term-Out Option:
    	
 
    	
The Borrowers shall have (A) the right   to elect to extend the Maturity Date to the date that is 15 months after   the Closing Date with respect to 100% of the term loans funded under the   Bridge Facility (the “Term-Out   Loans”), subject to (i) the provision of 30 days   prior written notice of the intent to exercise such election and   (ii) payment of the First Term-Out Fee (as defined in Annex I)   (the option under this clause (A), the “First Term-Out Option”) and   (B) if the First Term-Out Option has been affirmatively exercised in   accordance with its terms, the right to elect to further extend the Maturity   Date to the date that is 18 months after the Closing Date with respect   to the Term-Out Loans, subject to (i) the provision of 30 days   prior written notice of the intent to exercise such election and   (ii) payment of the Second Term-Out Fee (as defined in Annex I)  (the option under this clause (B),   the “Second Term-Out Option”).
    
	
 
    	
 
    	
 
    
	
Mandatory Prepayments and Commitment   Reductions:
    	
 
    	
After the Closing Date, the aggregate loans   under the Bridge Facility shall be prepaid, in each case, dollar-for-dollar,   by the following amounts:

 

(a)     100% of the net cash proceeds of all asset sales or other   dispositions of property by a Borrower and its respective restricted   subsidiaries (including proceeds from the sale of the stock of any restricted   subsidiary of a Borrower and insurance and condemnation proceeds) (an “Asset Sale”) in excess of   $50.0 million in the aggregate, subject to exceptions (including for   ordinary course asset sales) and reinvestment provisions to be agreed upon;   and

 

(b)     100% of the net cash proceeds received by a Borrower or any   restricted subsidiary of a Borrower from any incurrence of debt for borrowed   money (including, without limitation, the net cash proceeds of any Permanent   Debt Financing) other than (i) any intercompany debt of a Borrower or   any of its wholly-owned restricted subsidiaries,   (ii) any debt of a Borrower or any of its restricted subsidiaries under   a revolving credit facility (in an aggregate amount and on terms and   conditions (including documentation) reasonably satisfactory to the Agent)   (the “Revolving Credit Facility”)   and certain other indebtedness (to be agreed), and (iii) other debt for   borrowed money to be agreed upon.

 

On or prior to the Closing Date, the   aggregate commitments in respect of the Bridge Facility under the Commitment   Letters shall 
    

 

A-12

 

	
 
    	
 
    	
be permanently reduced by (1) 100% of   the net cash proceeds from any Permanent Debt Financing, and (2) 100% of   the net cash proceeds from any issuance of equity or equity-linked securities   (in a public offering or private placement) by a Borrower other than   (i) any qualified equity issued pursuant to any employee stock plan or   employee compensation plan in effect as of date hereof, (ii) any   qualified equity issued  on the Closing   Date as part of the Acquisition Consideration in accordance with the Merger   Agreement and (iii) other exceptions to be agreed upon (any such   commitment reductions the “Permanent Instrument   Commitment Reductions” (to be applied first to the Acquisition   Sub-Facility and then on a pro rata basis to each of the Existing Company   Bonds Delayed Draw Sub-Facility, the Existing Purchaser Bonds Delayed Draw   Sub-Facility and the Withdrawn Shares Sub-Facility)).
    
	
 
    	
 
    	
 
    
	
Change of Control Put:
    	
 
    	
In the event that the UK Borrower has   Investment Grade Ratings on the Closing Date, the Bridge Facility shall be   subject to a change of control put at par (on customary terms, as reasonably   determined by the Lead Arrangers).
    
	
 
    	
 
    	
 
    
	
Voluntary Prepayments and Reductions in   Commitments:
    	
 
    	
Voluntary reductions of the unutilized   portion of the commitments under the Bridge Facility and prepayments of   borrowings thereunder will be permitted at any time, in minimum principal   amounts to be agreed upon, without premium or penalty, subject to   reimbursement of the Lenders’ redeployment costs in the case of a prepayment   of Adjusted LIBOR borrowings other than on the last day of the relevant interest   period.
    
	
 
    	
 
    	
 
    
	
Documentation Principles:
    	
 
    	
In the event that the UK Borrower has   Investment Grade Ratings on the Closing Date, the representations and   warranties,  affirmative and negative   covenants, the financial covenant and the change of control provisions in the   Bridge Facility Documentation will be modified (as reasonably determined by   Credit Suisse in consultation with the UK Borrower) to be substantially   similar to the representations and warranties, affirmative and negative   covenants, the financial covenants and the change of control provisions set   forth in the Senior Facilities Agreement of Lottomatica Group S.p.A. (now   GTECH S.p.A) and GTECH Corporation (as Borrowers), dated as of December 20,   2010 (as amended on May 6, 2013) (the “Existing Credit Agreement”), as   revised (in such manner as shall be reasonably determined by Credit Suisse in   consultation with the UK Borrower) to take into account (i) the terms   and conditions set forth herein and in the Commitment Letter, (ii) the   addition of representations and warranties relating to tax matters,   environmental matters and insurance, (iii) the size, businesses and   business practices  of the UK Borrower   and its subsidiaries (after giving effect to the Transaction), (iv) then   prevailing market conditions, (v) which entities are loan parties and   non-loan
    

 

A-13

 

	
 
    	
 
    	
parties, (vi) jurisdictional and   structural considerations, (vii) operational and administrative changes   reasonably required by the Majority Lead Arrangers, the definitive terms of   which will be negotiated in good faith and (viii) any legal and credit   risks related to each of the foregoing and other risks identified by any of   the Lead Arrangers in their respective reasonable judgment.

 

In the event that the UK Borrower does not   have Investment Grade Ratings on the Closing Date, the representations and   warranties,  affirmative and negative   covenants, the financial covenant and the change of control provisions in the   Bridge Facility Documentation will be modified (as reasonably determined by   Credit Suisse in consultation with the UK Borrower) to be substantially   similar to the representations and warranties, affirmative and negative   covenants, the financial covenants and the change of control provisions set   forth in a precedent credit agreement for a company of comparable size and   credit rating reasonably specified by the Majority Lead Arrangers, subject to   your approval not to be unreasonably withheld, conditioned or delayed, as   revised (in such manner as shall be reasonably determined by the Majority   Lead Arrangers in consultation with the UK Borrower) to take into account (i) the   terms and conditions set forth herein and in the Commitment Letter, (ii) the   addition of representations and warranties relating to tax matters,   environmental matters and insurance, (iii) the size, businesses and   business practices  of the UK Borrower   and its subsidiaries (after giving effect to the Transaction), (iv) then   prevailing market conditions, (v) which entities are loan parties and   non-loan parties, (vi) jurisdictional and structural considerations,   (vii) operational and administrative changes reasonably required by the   Majority Lead Arrangers, the definitive terms of which will be negotiated in   good faith and (viii) any legal and credit risks related to each of the   foregoing and other risks identified by any of the Lead Arrangers in their   respective reasonable judgment.

 

The principles set forth in this section are   referred to herein as the “Documentation Principles”).
    
	
 
    	
 
    	
 
    
	
Representations and Warranties:
    	
 
    	
Subject to the Documentation Principles and   the Certain Funds Provision, limited to the following: corporate status and   organization; corporate power and authority;    due authorization, execution and deliver; enforceability; (x) the   definitive documentation for the Bridge Facility (or for any Permanent Debt   Offering) and/or the consummation  of the borrowings (and other   incurrences or extensions of credit) and/or the creation, incurrence    and perfection of liens, respectively, thereunder will not require any   consent or approval under, violate, conflict with or contravene, result in   any breach of or any loss of any benefit under, or constitute a default,   enforcement event or event of default under (with or without notice or lapse   of time, or both), or
    

 

A-14

 

	
 
    	
 
    	
result in termination or give to others any   right of termination, vesting, amendment, acceleration or cancellation of, or   result in the creation of a lien (other than a permitted lien) upon any of   the respective properties or assets of any of the Loan Parties, pursuant to   (I) any of the organization documents of the Loan Parties, the Existing   Bonds and other agreements evidencing material debt for borrowed money and   material securities of any of the Loan Parties  or (II) applicable   law and (y) the consummation of the Transactions will not require any   consent or approval under, violate, conflict with or contravene, result in   any breach of or any loss of any benefit under, or constitute a default,   enforcement event or event of default under (with or without notice or lapse   of time, or both), or result in termination or give to others any right of   termination, vesting, amendment, acceleration or cancellation of, or result   in the creation of a lien (other than a permitted lien) upon any of the   respective properties or assets of any of the Loan Parties, pursuant to    any of the organization documents of the Loan Parties, the Existing   Bonds and other agreements evidencing material debt for borrowed money and   material securities of any of the Loan Parties (this representation and   warranty, the “No Conflicts Representation”);   financial condition (including audited financial statements, interim   financial statements and no material adverse change); enforceable   obligations; intellectual property; absence of material undisclosed   liabilities; rights to properties; litigation; no violation; ERISA, foreign   pension and labor matters; Investment Company Act; tax returns and payments;   compliance with laws; PATRIOT Act; OFAC; FCPA; Federal Reserve margin   regulations; no default; environmental    matters; intellectual property;    solvency; disclosure and accuracy of information (including   confidential information memoranda); subsidiaries; use  of proceeds; consummation of the   Transactions in accordance with the Transaction Description; compliance with   the Structure Memorandum and pro forma capital and corporate structure as set   forth therein (in each case other than changes or modifications thereto that   are not material and adverse to the interests of the Commitment Parties, the   Initial Lenders or the Lenders); center of main interest and establishment;   succession of, and binding obligations, upon merger; title to authorizations   and concessions; financial assistance; collateral (if applicable) and   intercreditor matters (if applicable), including validity, priority and   perfection of security interest in the Collateral; and status as senior debt   (if applicable), in each case subject to exceptions to be agreed upon. 
    

 

A-15

 

	
Conditions Precedent to Initial Borrowing:
    	
 
    	
The initial borrowing under the Bridge   Facility (including, for the avoidance of doubt, under each sub-facility)   will be subject solely to the conditions precedent set forth in Section 6   of the Commitment Letter and Exhibit B to the Commitment Letter,   together with the following conditions precedent: (i) delivery of notice   of borrowing; and (ii) subject to the Certain Funds Provision, the   accuracy of representations and warranties in all material respects, provided, that any representation and warranty that is   qualified as to “materiality,” “material adverse effect” or similar language   shall be true and correct in all respects (after giving effect to any such   qualification therein).
    
	
 
    	
 
    	
 
    
	
Conditions Precedent to Borrowings after   the Closing Date:
    	
 
    	
Borrowings under the Existing Company Bonds   Delayed Draw Sub-Facility and the Existing Purchaser Bonds Delayed Draw   Sub-Facility after the Closing Date will be subject solely to the following   conditions precedent: (i) (x) with respect to borrowings under the   Existing Company Bonds Delayed Draw Sub-Facility, the Delayed Draw Company   Bonds Outside Date and the date immediately following the one-year   anniversary of the signing of the Merger Agreement (or, if earlier, the date   of your acceptance of this Commitment Letter) or if extended pursuant to the   terms of the Merger Agreement, the date that is the fifteen month anniversary   of the signing of the Merger Agreement (or, if earlier, the date of your   acceptance of this Commitment Letter) (such date, the “Maximum Date”),   shall not have occurred (it being understood that borrowings may be made at   any time on or before the earlier of the Delayed Draw Company Bonds Outside   Date and the Maximum Date, subject to mandatory prepayment to the extent that   outstanding borrowings in respect of the Existing Company Bonds Delayed Draw   Sub-Facility exceed the initial commitment amount in respect of this   sub-facility minus any Existing Company Bonds Commitment Reduction Amounts)   and (y) with respect to borrowings under the Existing Purchaser Bonds   Delayed Draw Sub-Facility, the Delayed Draw Purchaser Bonds Outside Date and   the Maximum Date shall not have occurred (it being understood that borrowings   may be made at any time on or before the earlier of the Delayed Draw   Purchaser Bonds Outside Date and the Maximum Date, subject to mandatory   prepayment to the extent that outstanding borrowings in respect of the   Existing Purchaser Bonds Delayed Draw Sub-Facility exceed the initial   commitment amount in respect of this sub-facility minus any Existing   Purchaser Bonds Commitment Reduction Amounts); (ii) delivery of notice   of borrowing; (iii) accuracy of representations and warranties in all material   respects, provided, that any representation and warranty that is qualified as   to “materiality,” “material adverse effect” or similar language shall be true   and correct in all respects (after giving effect to any such qualification   therein); and (iv) the absence of any payment or bankruptcy (or   insolvency) events of default at the time of, or after giving effect to the   making of, such borrowing. For the avoidance of doubt, no portion of the   Bridge
    

 

A-16

 

	
 
    	
 
    	
Facility (other than the Existing Company   Bonds Delayed Draw Sub-Facility and the Existing Purchaser Bonds Delayed Draw   Sub-Facility) may be borrowed after the Closing Date.
    
	
 
    	
 
    	
 
    
	
Affirmative Covenants: 
    	
 
    	
Subject to the Documentation Principles,   limited to: delivery of information (including, annual consolidated financial   statements, quarterly consolidated financial statements, MD&A, officers’   certificates, securities laws filings, PATRIOT Act information, and other   financial information); delivery of notice of notices of default and of   material events (including changes in Public Debt Ratings (or any component   thereof) and material events with respect to litigation, ERISA events,   foreign pension  and labor matters and   matters that could reasonably be expected to have a material adverse change);   maintenance of property; maintenance of Public Debt Ratings (including each   component rating referenced in the definition thereof); maintenance of   insurance; maintenance of existence; compliance with laws (including PATRIOT   Act, OFAC, FCPA, ERISA, foreign pension laws, labor laws and margin   regulations), authorizations and concessions; inspection of books and   records; environmental matters; payment of taxes and certain other material   obligations; further assurances, including with respect  to collateral matters (if applicable);   Required Existing Bonds Process (including deregistration of each series of   the Existing Company Bonds) and obligation to exercise call rights with respect   to the Existing Purchaser Bonds (to the extent an effective amendment and/or   consent is not achieved, as reasonably determined by the Majority Lead   Arrangers); transaction steps as indicated in, collectively, (x)  the   Jones Day ‘Project Cleopatra Detailed Step Plan’ structure slides dated July 15,   2014 (version 7.15.1), (y) the Clifford Chance ‘Financing   Considerations” slide deck dated June 27, 2014 and (z) the Clifford   Chance ‘Financing Considerations: Annex’ slide deck dated July 10,   2014  (collectively, the “Structure Memorandum”);   and securities demand and cooperation, in each case subject to exceptions to   be agreed upon.
    
	
 
    	
 
    	
 
    
	
Negative Covenants:
    	
 
    	
Subject to the Documentation Principles,   limited to: limitations on liens and sale-leaseback transactions; limitations on mergers, consolidations or   other fundamental changes; limitations on asset sales and other dispositions;   limitations on restrictive agreements; limitations on debt (but permitting, inter alia, the Existing Credit   Agreement and any refinancing thereof, including an upsizing thereof in an   amount to be mutually agreed), guarantees and hedging obligations;   limitations on dividends on, and redemptions and repurchases of, equity   interests and other restricted payments; limitations on investments in   non-wholly owned entities and acquisitions of entities or business units;   limitations on transactions with affiliates; amendments or waivers of certain   agreements; limitations on prepayments, redemptions and repurchases of debt   (other than any prepayments of the Bridge
    

 

A-17

 

	
 
    	
 
    	
Facility with any Permanent Debt Financing   and other exceptions to be agreed); limitations on changes to fiscal year,   tax status, and accounting matters; no segregation of assets; limitations on   conduct of business; in each case subject to exceptions to be agreed upon.
    
	
 
    	
 
    	
 
    
	
Financial Covenant:
    	
 
    	
Limited to: a maximum consolidated total   leverage ratio, (i) with the definitions to be agreed upon, (ii) set   at a level of 5.50:1.00 (to be proportionally reduced by (x) commitment   reductions under the Withdrawn Shares Sub-Facility and (y) commitment   reductions under the Acquisition Sub-Facility, the Existing Company Bonds   Delayed Draw Sub-Facility and Existing Purchaser Bonds Delayed Draw   Sub-Facility to the extent that such commitment reduction is made using, on a   dollar-for-dollar basis, internally generated funds of the UK Borrower and   its subsidiaries) and (iii) with accounting terms to be interpreted, and   all accounting determinations and computations to be defined in a mutually   agreeable manner in the Bridge Facility Documentation, and, where not so   defined, in accordance with generally accepted accounting principles   applicable to the UK Borrower. The foregoing financial covenant will be   tested quarterly with respect to the Borrowers and their respective   restricted subsidiaries on a consolidated basis, with the first covenant test   to commence with the first full fiscal quarter ending after the Closing Date
    
	
 
    	
 
    	
 
    
	
Unrestricted Subsidiary:
    	
 
    	
On the Closing Date, subject to limitations   and conditions to be agreed, the Borrowers may designate one or more   subsidiaries as an “unrestricted subsidiary”.    Thereafter, the Borrowers will be permitted to designate any existing   or subsequently acquired or organized subsidiary as an “unrestricted   subsidiary” and subsequently re-designate any such unrestricted subsidiary as   a restricted subsidiary so long as the fair market value of such subsidiary   at the time it is designated as an “unrestricted subsidiary” shall be treated   as an investment by such Borrower at such time and subject to other   limitations and conditions to be agreed.    Unrestricted subsidiaries will not, subject to certain exceptions, be   subject to the representation and warranties, affirmative or negative   covenant or event of default provisions of the documentation.
    
	
 
    	
 
    	
 
    
	
Events of Default:
    	
 
    	
Limited to the following (subject, where   appropriate, to thresholds and grace periods to be agreed upon):  nonpayment of principal, interest or other   amounts; violation of covenants; incorrectness of representations and   warranties in any material respect; subject to the Documentation Principles,   cross event of default and cross acceleration; bankruptcy or insolvency;   material judgments; ERISA and foreign pension and labor events; environmental matters; actual or asserted   invalidity of Guarantees, security documents (if applicable) or intercreditor   agreements; termination of authorizations or concessions or certain material   contracts related thereto; and (in the event that
    

 

A-18

 

	
 
    	
 
    	
the UK Borrower does not have Investment   Grade Ratings on the Closing Date) change of control; in each case subject to   exceptions to be agreed upon.
    
	
 
    	
 
    	
 
    
	
Voting:
    	
 
    	
Amendments and waivers of the definitive   credit documentation will require the approval of Lenders holding more than   50% of the aggregate amount of the loans and commitments under the Bridge   Facility (with certain amendments and waivers also requiring class votes),   except that the consent of (a) each affected Lender shall be required   with respect to (i) increases in the commitment of such Lender,   (ii) reductions or forgiveness of principal, interest or fees payable to   such Lender, (iii) extensions  of   the Maturity Date or of the date for payment to such Lender of any interest   or fees and (iv) changes that impose any additional restriction on such   Lender’s ability to assign any of its rights or obligations and (b) each   Lender shall be required with respect to (i) modifications to certain   provisions requiring the pro rata treatment of Lenders,   (ii) modification to voting requirements or percentages, and   (iii) releases of all or substantially all of the value of the   Guarantees or, if applicable, the Collateral. The definitive documentation   for the Bridge Facility shall include customary defaulting lender provisions.
    
	
 
    	
 
    	
 
    
	
Cost and Yield Protection:
    	
 
    	
Usual for facilities and transactions of this   type, including customary tax gross-up provisions.
    
	
 
    	
 
    	
 
    
	
Assignments and Participations:
    	
 
    	
Prior to the Closing Date, the Lenders will   be permitted to assign (other than to a Disqualified Institution) commitments   under the Bridge Facility with the consent of the Borrowers (unless a Demand   Failure (as defined in the Arranger Fee Letter) has occurred), not to be   unreasonably withheld, conditioned or delayed; provided that   such consent of the Borrowers (x) shall not be required (i) if such   assignment is made to another Lender under the Bridge Facility or an   affiliate or approved fund of any such Lender, (ii) if such assignment   is made to a Permitted Assignee or (iii) after the occurrence and during   the continuance of an event of default and (y) shall be deemed to have   been given if the Borrowers have not responded within five business days   of a request for such consent.  From   the Closing Date, the Lenders will be permitted to assign loans under the   Bridge Facility without the consent of the Borrowers.  Each assignment will be in an amount of an   integral multiple of $1,000,000.    Assignments will be by novation.

 

The Lenders will be permitted to sell   participations in loans and commitments without restriction (other than to a   Disqualified Institution but only if the then current list of all such   Disqualified Lenders shall have been published to all Lenders), and subject   to customary provisions related to a participant’s ability to get the benefit   of tax gross up provisions.  Voting   rights of participants shall be limited to matters in respect of   (a) increases in 
    

 

A-19

 

	
 
    	
 
    	
commitments of such participant,   (b) reductions of principal, interest or fees payable to such   participant, (c) extensions of final maturity of the loans or   commitments in which such participant participates and (d) releases of   all or substantially all of the value of the Guarantees or, if applicable,   the Collateral.
    
	
 
    	
 
    	
 
    
	
Expenses and Indemnification:
    	
 
    	
The Borrower shall promptly (a) reimburse   the Agent and each Lead Arranger from time to time, upon presentation of a   summary statement, together with supporting documentation reasonably   requested by you, for all reasonable and documented out-of-pocket expenses   (including, but not limited to, out-of-pocket expenses of due diligence   investigations, consultants’ fees, syndication expenses, travel expenses and reasonable   fees, disbursements and other charges of counsel to the Agent and of a single   local counsel to the Agent in each relevant jurisdiction and, solely in the   case of a conflict of interest, one additional counsel for such affected   persons in each applicable material jurisdiction), in each case, incurred in   connection with the Bridge Facility and the preparation, negotiation and   enforcement of this Commitment Letter, the Fee Letters, the definitive   documentation for the Bridge Facility and any ancillary documents and   security arrangements in connection therewith, (b) pay all reasonable,   out-of-pocket expenses (including, without limitation, fees, disbursements   and other charges of counsel and of a single local counsel to the Agent in   each relevant jurisdiction and, solely in the case of a conflict of interest,   one additional counsel for such affected persons in each applicable material   jurisdiction) of the Lead Arrangers, each Additional Arranger, the Agent, the   Syndication Agent and the Documentation Agent in connection with the   syndication of the Bridge Facility, the preparation and administration of the   definitive documentation, and amendments, modifications and waivers thereto,   and matters reasonably related or incidental thereto and (c) pay all   out-of-pocket expenses (including, without limitation, fees, disbursements   and other charges of counsel and of a single local counsel to the Agent in   each relevant jurisdiction and, solely in the case of a conflict of interest,   one additional counsel for such affected persons in each applicable material   jurisdiction) of the Lead Arranger, each Additional Arranger, the Agent, the   Syndication Agent, the Documentation Agent and the Lenders for enforcement   costs and documentary taxes associated with the Bridge Facility, the   Commitment Letter and the Fee Letters (including the transactions   contemplated herein and, respectively, therein) and matters reasonably   related or incidental thereto.

 

The Loan Parties will indemnify each Lead   Arranger, each Additional Arranger, the Agent, the Syndication Agent, the   Documentation Agent, the Lenders, their respective affiliates, successors and   assigns and the officers, directors, employees, agents, advisors, controlling   persons and members of each of the foregoing (each, an “Indemnified Person”) and   hold them
    

 

A-20

 

	
 
    	
 
    	
harmless from and against all reasonable and   documented out of pocket costs, expenses (including reasonable fees,   disbursements and other charges of counsel) and liabilities of such   Indemnified Person arising out of or relating to any claim or any litigation   or other proceeding (regardless of whether such Indemnified Person is a party   thereto and regardless of whether such matter is initiated by a third party   or by the Borrower, the Company or any of their respective affiliates or   equity holders) that relates to, or connected with, the Transactions   (including the financing contemplated hereby and in the Fee Letters), the   Acquisition or any transactions in connection therewith, or matters   reasonably related or incidental thereto; provided no   Indemnified Person will be indemnified for its gross negligence, bad faith or   willful misconduct as determined by a court of competent jurisdiction in a   final non-appealable decision or for any dispute that is solely among   Indemnified Persons and does not involve any act or omission by any Loan   Party (other than a dispute involving claims against the Agent or a Lead   Arranger in its capacity as such); provided, further, that no Indemnified Person or Loan Party shall be   liable for any indirect, special, punitive or consequential damages (in the   case of a Loan Party, other than in respect of any such damages required to   be indemnified under this Indemnification section).
    
	
 
    	
 
    	
 
    
	
Governing Law and Forum:
    	
 
    	
New York.
    
	
 
    	
 
    	
 
    
	
Counsel to Agent:
    	
 
    	
Shearman & Sterling LLP.
    

 

A-21

 

Annex 1 to Exhibit A
  to Commitment Letter

	
Interest Rates:
    	
 
    	
The interest rates under the Bridge   Facility will be, at the option of the Borrower, Adjusted LIBOR plus the   Applicable Adjusted LIBOR Margin (as defined below) or ABR plus the   Applicable ABR Margin (as defined below); provided, however, that the interest rate for any advances made in   Euros shall be Adjusted LIBOR (for Euros) plus the Applicable Adjusted LIBOR   Margin.

 

The Borrowers may elect interest periods   of 1, 3 or 6 months for Adjusted LIBOR borrowings.

 

Calculation of interest shall be on the   basis of the actual days elapsed in a year of 360 days (or 365 or   366 days, as the case may be, in the case of ABR loans based on CS’   Prime Rate) and interest shall be payable at the end of each interest period   and, in any event, at least every three months.

 

ABR is the Alternate Base Rate, which is   the highest of (a) CS’ Prime Rate, (b) the Federal Funds Effective   Rate plus 1⁄2 of 1.00%, and (c) Adjusted LIBOR (for Dollars) for a   one-month interest period, plus 1.00%.

 

Adjusted LIBOR will at all times include   statutory reserves, and shall be deemed to be not less than 1.00%.
    
	
 
    	
 
    	
 
    
	
Pricing Definitions:
    	
 
    	
For the purposes hereof, the terms “Applicable Adjusted LIBOR Margin”   shall mean a rate per annum set   forth on Schedule A-I attached hereto under the column heading   entitled “Applicable Adjusted LIBOR   Margin” based on the Public Debt Rating (as defined in the Arranger   Fee Letter) (provided that if a Demand   Failure occurs, such percentage shall increase to the Blended Weighted   Average Cap (as defined in the Arranger Fee Letter)) and “Applicable ABR Margin”   shall mean a rate per annum set   forth on Schedule A-I attached hereto under the column heading   entitled “Applicable Adjusted ABR   Margin” based on the Public Debt Rating (provided   that if a Demand Failure occurs, such percentage shall increase to a   percentage equal to the Blended Weighted Average Cap minus 1.00%).
    

 

Annex I-1

 

	
Duration Fees:
    	
 
    	
The Borrowers will pay non-refundable   fees (the “Duration Fees”),   for the ratable benefit of the Lenders, in an amount equal to: (i) 0.50%   of the aggregate principal amount of the loans and commitments under the   Bridge Facility outstanding on the date which is 90 days after the   Closing Date, due and payable in cash on such 90th day (or if such day is not   a business day, the next business day); (ii) 0.75% of the aggregate   principal amount of the loans and commitments under the Bridge Facility   outstanding on the date which is 180 days after the Closing Date, due   and payable in cash on such 180th day (or if such day is not a business day,   the next business day); and (iii) 1.00% of the aggregate principal   amount of the loans and commitments under the Bridge Facility outstanding on   the date which is 270 days after the Closing Date, due and payable in   cash on such 270th day (or if such day is not a business day, the next   business day).
    
	
 
    	
 
    	
 
    
	
Term-Out Fees:
    	
 
    	
The Borrowers will pay (x) with   respect to the First Term-Out Option, a fee in an amount equal to 1.25% of   the Term-Out Loans (the “First Term-Out Fee”) and (y) with   respect to the Second Term-Out Option, a fee in an amount equal to 1.50% of   the Term-Out Loans (the “Second Term-Out Fee” and, together   with the First Term-Out Fee, the “Term-Out   Fees”).  The Term-Out Fees will be due and payable on the earlier to occur of (i) with   respect to the First Term-Out   Option, the date that is 364 days after the Closing Date and (y) with   respect to the Second Term-Out Option, the date that is 454 days after the   Closing Date.
    
	
 
    	
 
    	
 
    
	
Delayed Draw Commitment Fee - Existing Company Bonds Delayed   Draw Sub-Facility:
    	
 
    	
The Borrowers will pay a non-refundable delayed draw commitment   fee (the “Delayed Draw Company Bonds   Commitment Fee”), for the ratable benefit of the Lenders with   commitments under the Existing Company Bonds Delayed Draw Sub-Facility, in an   amount equal to the Applicable   Adjusted LIBOR Margin (for 1 month borrowing periods) on the average   daily unused portion of the Existing Company Bonds Delayed Draw Sub-Facility,   payable monthly in arrears and on the Delayed Draw Outside Date.
    
	
 
    	
 
    	
 
    
	
Delayed Draw Commitment Fee - Existing Purchaser Bonds Delayed   Draw Sub-Facility:
    	
 
    	
The Borrowers will pay a non-refundable delayed draw commitment   fee (the “Delayed Draw Purchaser   Bonds Commitment Fee” and, together with the Delayed Draw Company Bonds Commitment Fee,   the “Delayed Draw Commitment Fees”),   for the ratable benefit of the Lenders with commitments under the Existing   Purchaser Bonds Delayed Draw Sub-Facility, in an amount equal to the Applicable Adjusted LIBOR Margin (for 1   month borrowing periods) on the average daily unused portion of the   Existing Purchaser Bonds Delayed
    

 

Annex I-2

 

	
 
    	
 
    	
Draw Sub-Facility, payable monthly in   arrears and on the Delayed Draw Outside Date.
    

 

Annex I-3

 

Schedule A-I
  to Exhibit A to Commitment Letter

 

PUBLIC DEBT RATINGS BASED 
 APPLICABLE MARGIN PRICING GRID

 

	
Public Debt Rating(1)
    	
 
    	
Applicable Adjusted
   LIBOR Margin*
    	
 
    	
Applicable ABR Margin*
    	
 
    
	
Level 1:

 

BBB- (with at least a stable outlook) or higher   and Baa3 (with at least a stable outlook) or higher
    	
 
    	
1.70
    	
%
    	
0.70
    	
%
    
	
Level 2:

 

If Level 1 does not apply, BB+  (with at least a stable outlook) or higher   and Ba1 (with at least a stable outlook)    or higher
    	
 
    	
2.00
    	
%
    	
1.00
    	
%
    
	
Level 3:

 

If Levels 1 and 2 do not apply, (x) BB (with   at least a stable outlook) or higher and Ba2 or higher 
    	
 
    	
2.25
    	
%
    	
1.25
    	
%
    
	
Level 4:

 

If Levels 1, 2 and 3 do not   apply
    	
 
    	
2.75
    	
%
    	
1.75
    	
%
    

 

If either or both of S&P or Moody’s shall fail to provide any rating required to determine any component of the definition of Public Debt Rating, then Level 4 shall apply.

 

* In addition, each of the Applicable Adjusted LIBOR Margin and Applicable ABR Margin will increase by 25 basis points on each of the 90th, 180th, 270th, 365th, 455th and 545th day after the Closing Date (the “Margin Step-Ups”).

 

(1)           The Public Debt Rating in effect at any date is that in effect at the close of business on such date (or, if not a business day, the Public Debt Rating effect at the close of business on the immediately preceding business day).

 

Annex I-4

 

EXHIBIT B

to Commitment Letter

 

PROJECT CLEOPATRA

364-Day Senior Bridge Term Loan Credit Facility

Summary of Additional Conditions Precedent

 

The initial borrowings under the Bridge Facility shall be subject to the following additional conditions precedent:

 

1.             The Acquisition and the other Transactions shall be consummated simultaneously with the closing under the Bridge Facility in accordance with the Merger Agreement; the Merger Agreement shall not have been amended or modified, and no condition shall have been waived or consent granted by the UK Borrower, in each case in a manner that is material and adverse to the Lenders and Lead Arrangers without the Lead Arrangers’ prior written consent (such consent not to be unreasonably withheld or delayed), it being understood and agreed that (i) any increase or decrease in the Acquisition Consideration unless (x) in the case of an increase in the Acquisition Consideration, such increase is funded, directly or indirectly, exclusively by the issuance of additional equity or cash on hand or (y) in the case of a decrease in the Acquisition Consideration, the reduction is in the aggregate less than 15% of the Acquisition Consideration contemplated as of the date of the Commitment Letter and there is a concurrent reduction in the aggregate principal amount of the commitments under the Bridge Facility (and as applied to reduce the Acquisition Sub-Facility) in an amount equal to such reduction, and (ii) any extension of the date for consummation of the Acquisition, except as contemplated by the Merger Agreement on the date hereof, in each case shall be deemed to be material and adverse to the Lenders.

 

2.             After giving effect to the Transactions and the other transactions contemplated hereby, the Borrowers and their respective Subsidiaries shall have outstanding no indebtedness or preferred stock other than (a) the loans and other extensions of credit under the Bridge Facility, (b) the Permanent Debt Financing, (c) the Existing Purchaser Bonds and the Existing Company Bonds, in each case, to the extent outstanding immediately prior to the Closing Date, (d) the Existing Credit Agreement and (e) other limited indebtedness to be agreed upon.

 

3.             The Lead Arrangers shall have received (a) (x) IFRS audited consolidated balance sheets and related statements of income, shareholders’ equity and cash flows of you and your subsidiaries and (y) U.S. GAAP audited consolidated balance sheets and related statements of income, shareholders’ equity and cash flows of the Company and its subsidiaries, in each case for the three most recent fiscal years ended at least 90 days prior to the Closing Date and (b) (x) IFRS unaudited consolidated and (to the extent available) consolidating balance sheets and related statements of income, shareholders’ equity and cash flows of you and your subsidiaries and (y) U.S. GAAP unaudited consolidated and (to the extent available) consolidating balance sheets and related statements of income, shareholders’ equity and cash flows of the Company and its subsidiaries, in each case for each subsequent fiscal quarter (other than any fourth fiscal quarter) ended at least 45 days before the Closing Date.

 

4.             The Lead Arrangers shall have received a pro forma consolidated balance sheet and related pro forma consolidated statements of income and cash flows of the UK Borrower as of and for the twelve-month period ending on the last day of the most recently completed four-fiscal quarter period for which financial statements have been delivered pursuant to paragraph 3 above, prepared after giving effect to the Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such other financial statements).

 

5.             The Agent shall have received customary legal opinions, corporate organizational documents, good standing certificates, resolutions and other customary closing certificates and other similar customary deliverables.

 

B-1

 

6.             The Agent shall have received a certificate from the chief financial officer of the UK Borrower in form reasonably satisfactory to the Agent certifying that the UK Borrower and its subsidiaries, on a consolidated basis after giving effect to the Transactions and the other transactions contemplated hereby, are solvent.  It is understood and agreed that the solvency certificate in the form attached hereto on Schedule I shall be deemed to be in a form reasonably satisfactory to the Agent.

 

7.             The Lead Arrangers, each Additional Arranger, the Agent, the Syndication Agent, the Documentation Agent and the Lenders shall have received all fees and expenses invoiced prior to the Closing Date required to be paid on or prior to the Closing Date.

 

8.             The Lead Arrangers shall have received, at least three business days prior to the Closing Date, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act to the extent that such information is requested by any Lead Arranger, any Additional Arranger, the Agent, the Syndication Agent, any Documentation Agent or any Lender at least ten days prior to the Closing Date.

 

9.             One or more investment banks reasonably satisfactory to the Lead Arrangers (collectively, the “Investment Bank”) shall have been engaged to publicly sell or privately place the Permanent Debt Financing, and the Lead Arrangers and the Investment Bank each shall have received no later than the earlier of (i) 270 days from the date hereof and (ii) 15 business days prior to issuance of the Permanent Debt Financing, a complete printed preliminary prospectus or preliminary offering memorandum or preliminary private placement memorandum (collectively, an “Offering Document”) suitable for use in a customary “road show” relating to the Permanent Debt Financing, which contains all financial statements and other data to be included therein (it being understood that a “Description of Notes” or similar section and other sections exclusively customarily provided by the Investment Bank shall not necessarily be included therein) (including all audited financial statements, all unaudited financial statements (which shall have been reviewed by the independent accountants for the Borrowers and the Company, as applicable, as provided in the procedures specified by the Public Company Accounting Oversight Board in AU 722) and all appropriate pro forma financial statements, in each case, required by, prepared in accordance with, or reconciled to, IFRS (as adopted by the International Accounting Standards Board) or generally accepted accounting principles in the United States and prepared in accordance with Regulation S-X under the Securities Act of 1933, as amended, except for (only in the case of a securities offering that is not registered under the Securities Act) the omission of consolidating footnotes pursuant to 3-10 of Regulation S-X or separate financial statements pursuant to 3-16 of Regulation S-X), and such other data (including selected financial data) that the Securities and Exchange Commission would require in a registered offering of the Permanent Debt Financing or that would be necessary for the Investment Bank to receive customary “comfort” (including “negative assurance” comfort) from independent accountants in connection with the offering of the Securities and the Borrowers and the Company shall have used commercially reasonable efforts to cause their respective independent accountants (and any predecessor accountant or acquired company accountant to the extent financial statements of the Borrowers or the Company or any acquired company audited or reviewed by such accountants are or would be included in any Offering Document) to issue to the Investment Bank a customary comfort letter (which shall provide “negative assurance” comfort), which may be in draft form if any such Permanent Debt Financing are then proposed to be issued but have not been issued.

 

B-2

 

SCHEDULE I
  to Commitment Letter

Form of Solvency Certificate

 

[See following page]

 

Schedule I-1

 

SOLVENCY CERTIFICATE
 OF
 THE UK BORROWER AND ITS SUBSIDIARIES

 

[   ], 201[   ]

 

This Solvency Certificate (the “Certificate”) of [           ], a public limited company organized under the laws of England and Wales (the “Borrower”), and its Subsidiaries is delivered pursuant to Section [   ] of the 364-Day Credit Agreement dated as of [   ] 201[   ] (the “Credit Agreement”) by and among the Borrower, the U.S. Borrowers (as defined therein), the Lenders from time to time party thereto, Credit Suisse AG, as Administrative Agent, [   ], as Documentation Agent, [   ], as Syndication Agent.

 

Unless otherwise defined herein, capitalized terms used in this Certificate shall have the meanings set forth in the Credit Agreement.(2)

 

I, [       ], the duly elected, qualified and acting chief financial officer of the Borrower, DO HEREBY CERTIFY in my capacity as an officer of the Borrower, as follows:

 

1.             I have carefully reviewed the Credit Agreement and the other [Loan Documents] referred to therein (collectively, the “Transaction Documents”) and such other documents as I have deemed relevant and the contents of this Certificate and, in connection herewith, have made such investigation, as I have deemed necessary therefor.  Furthermore, I confirm and acknowledge that the Administrative Agent and the Lenders are relying on the truth and accuracy of this Certificate in connection with the Commitments and Loans under the Credit Agreement.

 

2.             As of the date hereof, before and after giving effect to the Transactions, the amount of “present fair saleable value” of the assets of the Borrowers and their respective Subsidiaries, on a consolidated basis, exceeds the amount of all “liabilities of each Borrower and its subsidiaries, contingent or otherwise,” at a fair valuation, as such quoted terms are determined in accordance with applicable federal and state laws governing determination of the insolvency of debtors.

 

3.             As of the date hereof, before and after giving effect to the Transactions, the “present fair saleable value” of the assets of the Borrowers and their respective Subsidiaries, on a consolidated basis, will be greater than the amount that will be required to pay the liabilities (including contingent liabilities) of the Borrowers and their respective Subsidiaries as they become absolute and matured.

 

4.             As of the date hereof, before and after giving effect to the Transactions, the Borrowers and their respective Subsidiaries, on a consolidated basis, are solvent and are able to pay their debts as they mature.

 

5.             The Borrowers and their respective Subsidiaries, on a consolidated basis, do not now and will not have an unreasonably small amount of capital with which to conduct its business.

 

For purposes of the foregoing, (i) “debt” means liability on a “claim” and (ii) “claim” means any (x) right to payment, whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured or (y) right

 

(2)           Note:  Description to be modified to reflect the description of the final Credit Agreement.  Defined terms used herein shall also be modified to reflect the defined terms used in the final Credit Agreement.

 

 

to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or unsecured.

 

IN WITNESS WHEREOF, I have executed this Certificate as of the date first written above.

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title: Chief Financial Officer
    

 

 

	
CREDIT SUISSE SECURITIES   (USA) LLC
    	
BARCLAYS
    
	
CREDIT SUISSE AG
    	
745 Seventh Avenue
    
	
Eleven Madison Avenue
    	
New York, NY 10019
    
	
New York, NY 10010
    	
 
    

 

CITIGROUP GLOBAL MARKETS LIMITED

388 Greenwich Street

New York, New York 10013

CITIBANK N.A., LONDON BRANCH

Citigroup Centre, Canada Square

London E145LB United Kingdom

 

CONFIDENTIAL

 

November 21, 2014

 

GTECH S.p.A. 
 Viale del Campo Boario 56/D
 00154 Roma Italy

 

Georgia Worldwide PLC
 70 Chancery Lane
 London WC2A 1AF
 England

 

Attention:  Mr. Claudio Demolli, Treasurer

 

First Amendment to Commitment Letter, Arranger Fee Letter and Engagement Letter

 

PROJECT CLEOPATRA

 

Ladies and Gentlemen:

 

Reference is made to (i) the commitment letter dated July 15, 2014 (including the exhibits and other attachments thereto, the “Commitment Letter”) among Credit Suisse AG (acting through such of its affiliates or branches as it deems appropriate, “CS”), Credit Suisse Securities (USA) LLC (“CS Securities” and, together with CS and their respective affiliates, “Credit Suisse”), Barclays Bank PLC (“Barclays”), Citigroup Global Markets Limited, Citibank N.A., London Branch (collectively, “Citi”, and together with Credit Suisse and Barclays, collectively referred to herein as “we”, “us”, “our” or the “Commitment Parties”) and GTECH S.p.A. (“GTECH” or “you”), (ii) the fee letter dated July 15, 2014 (the “Arranger Fee Letter”) among Credit Suisse, Barclays, Citi and you, and (iii) the engagement letter dated July 15, 2014 (the “Engagement Letter” and together with the Commitment Letter and the Arranger Fee Letter, the “Letters”) among CS Securities, Barclays Capital Inc., Citigroup Global Markets Limited and you.  Terms used but not defined in this letter agreement (this “First Amendment”) shall have the meanings assigned thereto in the Commitment Letter.

 

WHEREAS, you have informed us that:

 

 

(i)            you and GTECH Corporation have consummated on November 4, 2014, pursuant to that certain Senior Facilities Agreement, dated November 4, 2014, between you, GTECH Corporation, the Original Guarantors (as defined therein), JP Morgan Limited and Mediobanca —Banca Di Credito Finanziario S.P.A., as Global Coordinators (as defined therein), Bookrunners and Mandated Lead Arrangers, the other Bookrunners and Mandated Lead Arrangers (as defined therein), the Mandated Lead Arrangers (as defined therein), the Arrangers (as defined therein), the Original Lenders (as defined therein), the Agent (as defined therein), the Issuing Agent (as defined therein), the Swingline Agent (as defined therein), and the Original US Dollar Swingline Lenders (as defined therein), the refinancing of the Existing Credit Agreement with a replacement revolving credit facility having a maximum aggregate principal amount that does not exceed the sum of €850,000,000 and US$1,500,000,000 (the “New RCF”) and, consequently, you hereby request the termination of the portion of the commitment under the Acquisition Sub-Facility relating to the New RCF, which for the avoidance of doubt would result in a commitment reduction of $848,000,000 thereunder;

 

(ii)           you intend to repurchase, in full and not in part but otherwise in accordance with the terms thereof and prior to the Closing Date, your €750,000,000 5.375% Guaranteed Notes due 2016 (the “2016 Notes”) with funds available to you from either cash on hand and/or borrowings under the New RCF and, consequently, you hereby request the termination of the portion of the commitment under the Existing Purchaser Bonds Delayed Draw Sub-Facility otherwise allocable to funding the repurchase of the 2016 Notes, which for the avoidance of doubt would result in a commitment reduction of €819,000,000 thereunder; and

 

(iii)          in lieu of utilizing the Acquisition Sub-Facility, you intend to consummate the equity transactions on the Closing Date relating to the purchase of stock options and/or restricted stock units of management and other existing equity holders of the Company with funds available to you from either cash on hand and/or borrowings under the New RCF and, consequently, you hereby request the termination of the the portion of the commitment under the Acquisition Sub-Facility otherwise allocable to funding such purchases, which for the avoidance of doubt would result in a commitment reduction of $131,000,000 thereunder.

 

In addition to the foregoing, you have advised us that Georgia Worldwide PLC, a public limited company organized under the laws of England and Wales, has been formed as the UK Borrower referred to in the Letters and desires to be a joint and several obligor with you for the purposes of all fee and expense obligations provided for in the Letters, in addition to (and not in lieu of) any obligations the UK Borrower may ultimately accede to as a consequence of the Holdco Merger.

 

Amendment to Commitment Letter

 

Pursuant to Section 10 of the Commitment Letter, the Commitment Letter is hereby amended as follows:

 

2

 

(i)                                     (A) clause (i) of the second paragraph is hereby deleted in its entirety and in lieu thereof the following new clause (i) inserted: “(i) a sub-facility (the “Acquisition Sub-Facility”) equal to an aggregate principal amount of $3,587,000,000, for the purpose (and only for the purpose) of funding, in part, the Acquisition Consideration, refinancing the Existing Credit Facility (as defined below) and paying fees and expenses incurred in connection with the Acquisition and the other Transactions (as defined in the Term Sheet); provided that the Acquisition Sub-Facility may be used for purposes of repaying existing indebtedness of the Company and its subsidiaries to the extent such indebtedness was used for purposes of paying the Special Dividend (as defined in Exhibit A) to the existing stockholders of the Company, to the extent that the use of proceeds of the Acquisition Sub-Facility to repay such indebtedness has a corresponding reduction (on a dollar-for-dollar basis and in accordance with the Merger Agreement) in the amount of Acquisition Consideration payable;” (B) clause (i) under the sub-heading entitled “Bridge Facility” in Exhibit A is hereby amended by deleting the text “$4,566,000,000” and in lieu thereof inserting the text “$3,587,000,000” and (C) clause (i) under the sub-heading entitled “Use of Proceeds” in Exhibit A is hereby amended by deleting the text appearing after “cash component of the Acquisition Consideration payable” and inserting in lieu thereof “.”.

 

(ii)                                  (A) clause (iii) of the second paragraph is hereby amended by deleting the text “EUR 2,802,000,000” and in lieu thereof inserting the text “EUR 1,983,000,000”, (B) Section 7 is hereby amended by deleting the text “(i) €750,000,000 5.375% Guaranteed Notes due 2016” and re-numbering the remaining items as “(i)”, “(ii)” and “(iii)”, respectively, (C) clause (iii) under the sub-heading entitled “Bridge Facility” in Exhibit A is hereby amended by deleting the text “EUR 2,802,000,000” and in lieu thereof inserting the text “EUR 1,983,000,000”, and (D) the row of the table relating to the €750,000,000 5.375% Guaranteed Notes due 2016 under the sub-heading entitled “Existing Purchaser Bonds Commitment Reduction Amount” is hereby deleted;

 

(iii)                               Section 1 is hereby amended by deleting the text “(including the Term Sheet and other attachments hereto, this “Commitment Letter”)” and in lieu thereof inserting the text “(including the Term Sheet and other attachments hereto, as amended, waiver, modified or supplemented from time to time, this “Commitment Letter”);

 

(iv)                              the third paragraph of Section 3 (Syndication) is hereby amended by deleting clause (iii) therein and in lieu thereof inserting the text “(iii) the refinancing or replacement of the Existing Credit Agreement (including any upsizing of such facility to cover working capital needs of the Company and its subsidiaries) with revolving credit facilities in an aggregate amount (including commitments, whether utilized or unutilized) not to exceed the sum of €850,000,000 and US$1,500,000,000 on or prior to November 4, 2014 pursuant to that Senior Facilities Agreement, dated November 4, 2014, between you, GTECH Corporation, the Original Guarantors (as defined therein), JP Morgan Limited and

 

3

 

Mediobanca —Banca Di Credito Finanziario S.P.A., as Global Coordinators (as defined therein), Bookrunners and Mandated Lead Arrangers, the other Bookrunners and Mandated Lead Arrangers (as defined therein), the Mandated Lead Arrangers (as defined therein), the Arrangers (as defined therein), the Original Lenders (as defined therein), the Agent (as defined therein), the Issuing Agent (as defined therein), the Swingline Agent (as defined therein), and the Original US Dollar Swingline Lenders (as defined therein) (the “New Revolving Credit Facility”)”;

 

(v)                                 in respect of the sub-heading entitled “Borrowers” in Exhibit A, the following text is deleted “A newly formed private limited company organized under the laws of England and Wales” and, in lieu thereof, the following text is inserted “Georgia Worldwide PLC, a newly formed public limited company organized under the laws of England and Wales”;

 

(vi)                              in respect of the sub-heading entitled “Existing Purchaser Bonds Commitment Reduction Amount” in Exhibit A:

 

(A)       the first paragraph (but not, for the avoidance of doubt, the table immediately following such paragraph) is hereby deleted and, in lieu thereof, the following replacement paragraph is inserted:

 

“With respect to each amendment and/or consent contemplated by the Required Existing Purchaser Bond Process, to the extent such amendment and/or consent becomes effective in accordance with its terms, on the first business day following each such effectiveness date (each such date, from time to time, an “Existing Purchaser Bonds Amendment Commitment Reduction Calculation Date” and, collectively with each Existing Purchaser Bonds Additional Commitment Reduction Calculation Date (as defined below), each an “Existing Purchaser Bonds Commitment Reduction Calculation Date”), the Agent shall calculate the Existing Purchaser Bonds Amendment Commitment Reduction Amount (as hereinafter defined) with respect thereto.  On any applicable Existing Purchaser Bonds Amendment Commitment Reduction Calculation Date, the “Existing Purchaser Bonds Amendment Commitment Reduction Amount” (and, collectively, with the Existing Purchaser Bonds Additional Commitment Reduction Amount (as hereinafter defined), the “Existing Purchaser Bonds Commitment Reduction Amount”) shall be an amount equal to the Specified Purchaser Bonds Principal Amount (as set forth in the table below) of the applicable Existing Purchaser Bonds (i.e., the Existing Purchaser Bonds with respect to which the relevant amendment and/or consent effectiveness date has occurred)”; and

 

(B)       the following additional paragraph and table are inserted immediately following the existing table therein:

 

4

 

“To the extent that any of the Existing Purchaser Bonds are purchased, redeemed, repurchased, or otherwise acquired by (or on behalf of) the Purchaser, upon the first business day following each such purchase, repurchase, redemption or acquisition (each such date, from time to time, an “Existing Purchaser Bonds Additional Commitment Reduction Calculation Date”), the Agent shall calculate the Existing Purchaser Bonds Additional Commitment Reduction Amount (as defined below) with respect thereto. On any applicable Existing Purchaser Bonds Additional Commitment Reduction Calculation Date contemplated in this paragraph, the “Existing Purchaser Bonds Additional Commitment Reduction Amount” shall be an amount equal to (x) the aggregate amount of the Existing Purchaser Bonds so purchased, repurchased, redeemed and/ or otherwise acquired, as the case may be, multiplied by (y) the Specified Purchaser Bonds Multiplier (as set forth in the table below) corresponding to such applicable Existing Purchaser Bonds (i.e., the Existing Purchaser Bonds with respect to which the relevant purchase, repurchase, redemption and/ or other acquisition, as the case may be, has occurred):

 

	
 
    	
 
    	
Specified
    	
 
    	
 
    	
 
    	
 
    
	
Existing Purchaser Bonds
    	
 
    	
Multiplier
    	
 
    	
Purchaser
    	
 
    	
Bonds
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
€500,000,000   5.375%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Guaranteed   Notes Due 2018
    	
 
    	
1.146
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
€500,000,000   3.500%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Guaranteed   Notes due 2020
    	
 
    	
1.126
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
€750,000,000   Subordinated
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interest-Deferrable   Capital
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Securities   due 2066
    	
 
    	
1.1293333334”
    	
 
    	
 
    	
 
    	
 
    

 

(vii)                           in respect of the sub-heading entitled “Existing Company Bonds Commitment Reduction Amount” in Exhibit A, the paragraph immediately following the table therein is hereby deleted and, in lieu thereof, the following replacement paragraph is inserted:

 

“In addition, with respect to each amendment and/or consent contemplated by the Required Existing Company Bond Process, to the extent such amendment and/or consent becomes effective in accordance with its terms, on the first business day following each such effectiveness date (each such date, also an “Existing Company Bonds Commitment Reduction Calculation Date” for purposes of this Commitment Letter), the Agent shall calculate the Existing Company Bonds Commitment Reduction Amount with respect thereto (as further specified in the immediately succeeding sentence).  On any applicable Existing Company Bonds Commitment Reduction Calculation Date

 

5

 

contemplated in this paragraph, the “Existing Company Bonds Commitment Reduction Amount” with respect thereto shall be an amount equal to the Specified Company Bonds Principal Amount (as set forth in the table above) of the applicable Existing Company Bonds (i.e., the Existing Company Bonds with respect to which the relevant amendment and/or consent effectiveness date has occurred).”; and

 

(viii)                        paragraph 2 of Exhibit B is hereby amended by inserting the text “(or New Revolving Credit Facility)” immediately after the text “(d) the Existing Credit Agreement”.

 

Acknowledgment - US$500,000,000 7.500% Notes due 2019

 

You and the UK Borrower acknowledge and agreed that, with respect to the US$500,000,000 7.500% Notes due 2019, on the first business day occurring after October 20, 2014, in accordance with the Commitment Letter, the Existing Company Bonds Delayed Draw Sub-Facility was permanently reduced by $505,000,000.

 

Additional Agreement

 

The parties hereto hereby agree that the UK Borrower shall be a joint and several obligor with you for the purposes of all fee and expense obligations provided for in the Letters (and also in any other related fee letters), and each of you and the UK Borrower hereby waives any and all suretyship defenses available to you or it arising out of the joint and several nature of your and its duties and obligations under the Letters (and also in any other related fee letters).

 

General

 

THIS FIRST AMENDMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS FIRST AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. The confidentiality, submission to jurisdiction, indemnification, assignment, amendment, service of process, notice and waiver of jury trial provisions of the Commitment Letter shall apply to this First Amendment mutatis mutandis. This First Amendment may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall together constitute one and the same instrument and shall bind and inure to the benefit of the parties and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this First Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof

 

If the foregoing correctly sets forth our agreement with you and the UK Borrower, please indicate your and the UK Borrower’s acceptance of the terms of this First Amendment by returning to us executed counterparts hereof not later than 5:00 p.m., New York City time, on November 21, 2014.  This First Amendment will expire automatically and without further action or notice and without further obligation to you at such time in the event that we have not received such executed counterparts in accordance with the immediately preceding sentence.  This First Amendment will become an effective and binding agreement only after it has been

 

6

 

duly executed and delivered by us and also by you and the UK Borrower in accordance with the first sentence of this paragraph.

 

[Remainder of this page intentionally left blank]

 

7

 

	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
CREDIT SUISSE SECURITIES (USA)
    
	
 
    	
 
    	
LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ SoVonna Day-Goins
    
	
 
    	
 
    	
Name: SoVonna Day-Goins
    
	
 
    	
 
    	
Title: Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christopher Day
    
	
 
    	
 
    	
Name: Christopher Day
    
	
 
    	
 
    	
Title: Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Samuel Miller
    
	
 
    	
 
    	
Name: Samuel Miller
    
	
 
    	
 
    	
Title: Authorized Signatory
    

 

[Signature Page]

 

 

	
 
    	
BARCLAYS BANK PLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Vanessa Roberts
    
	
 
    	
 
    	
Name: Vanessa Roberts
    
	
 
    	
 
    	
Title: Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BARCLAYS CAPITAL INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Vanessa Roberts
    
	
 
    	
 
    	
Name: Vanessa Roberts
    
	
 
    	
 
    	
Title: Managing Director
    

 

[Signature Page]

 

 

	
 
    	
CITIGROUP GLOBAL MARKETS LIMITED
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Camilo Mori
    
	
 
    	
 
    	
Name: Camilo Mori
    
	
 
    	
 
    	
Title: Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CITIBANK N.A., LONDON BRANCH
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Camilo Mori
    
	
 
    	
 
    	
Name: Camilo Mori
    
	
 
    	
 
    	
Title: Managing Director
    

 

[Signature Page]

 

 

Accepted and agreed to
 as of the date first above written:

 

	
GTECH S.p.A.
    
	
 
    
	
 
    
	
By:
    	
/s/ Claudio Demolli
    	
 
    
	
 
    	
Name: Claudio Demolli
    	
 
    
	
 
    	
Title: Attorney-in-Fact
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
GEORGIA WORLDWIDE PLC
    
	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Declan Harkin
    	
 
    
	
 
    	
Name: Declan Harkin
    	
 
    
	
 
    	
Title: Director
    	
 
    

 

[Signature Page]

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