Document:

Exhibit 10.5

INTERNATIONAL GAME TECHNOLOGY

2002 STOCK INCENTIVE PLAN

NOTICE OF PERFORMANCE RESTRICTED STOCK UNIT AWARD – 2014

Name

You have been granted an award of performance restricted stock units (the "Award") by International Game Technology, a Nevada corporation (the "Corporation"), as follows:

	
Award Date:

	
Month Day Year

	
Total Number of Stock Units Subject to Award:

	
share amount 1,2

	
Vesting Schedule:

	
The Award shall vest and become nonforfeitable as set forth in Section 3 of the Terms and Conditions of Performance Restricted Stock Unit Award – 2014 attached to this Notice of Performance Restricted Stock Unit Award – 2014.

The Award is subject to the terms and conditions of this Notice of Performance Restricted Stock Unit Award – 2014 (this "Notice"), the attached Terms and Conditions of Performance Restricted Stock Unit Award – 2014 (the "Terms"), and the International Game Technology 2002 Stock Incentive Plan (the "Plan").  By accepting the Award, you are agreeing to the terms of the Award as set forth in those documents.  You should read the Plan, the Prospectus for the Plan, and the Terms.  The Terms and the Plan are each incorporated into (made part of) this Notice by this reference.  You do not have to accept the Award.

1 Subject to adjustment under Section 6.2 of the Plan.

2 Subject to early termination pursuant to Section 8 of the Terms.

OMM_US:71967400.02

INTERNATIONAL GAME TECHNOLOGY

2002 STOCK INCENTIVE PLAN

TERMS AND CONDITIONS OF PERFORMANCE RESTRICTED STOCK UNIT AWARD – 2014

1.            General.  These Terms and Conditions of Performance Restricted Stock Unit Award – 2014 (these "Terms") apply to certain performance restricted stock units granted by International Game Technology, a Nevada corporation (the "Corporation"), pursuant to the International Game Technology 2002 Stock Incentive Plan (the "Plan").  If you were granted an award (the "Award") of performance restricted stock units (the "Stock Units") by the Corporation, the date of grant of the Award (the "Award Date") of the Stock Units and the total number of shares of the Corporation's Common Stock with respect to the Stock Units are set forth in the Notice of Performance Restricted Stock Unit Award – 2014 (the "Notice") and are reflected in the electronic stock plan award recordkeeping system (the "Stock Plan System") maintained by the Corporation or its designee.  These Terms apply to the Stock Units if referenced in the Notice and/or the Stock Plan System with respect to the Stock Units.  The recipient of the Award identified in the Notice is referred to as the "Grantee" with respect to the Stock Units.  The Award has been granted to the Grantee in addition to, and not in lieu of, any other form of compensation otherwise payable or to be paid to the Grantee.  Capitalized terms are defined in the Plan if not defined herein.  The parties agree to the terms of the Award set forth herein.  The Grantee acknowledges receipt of a copy of these Terms, the Plan and the Prospectus for the Plan.  The Notice and these Terms are collectively referred to as the "Award Agreement" applicable to the Award.

 

2.            Stock Units.  As used herein, the term "Stock Unit" shall mean a non-voting unit of measurement which is deemed solely for bookkeeping purposes to be equivalent in value to one outstanding share of the Corporation's Common Stock (subject to adjustment as provided in Section 6.2(a) of the Plan) solely for purposes of the Plan and the Award Agreement.  The Stock Units shall be used solely as a device for the determination of any payment to eventually be made to the Grantee if and when such Stock Units vest pursuant to the terms hereof.

 

The Stock Units create no fiduciary duty to the Grantee and shall create only a contractual obligation on the part of the Corporation to make payments, subject to vesting and the other terms and conditions hereof, as provided in Sections 5 and 7 below.  The Stock Units shall not be treated as property or as a trust fund of any kind.  No assets have been secured or set aside by the Corporation with respect to the Award and, if amounts become payable to the Grantee pursuant to the Award Agreement, the Grantee's rights with respect to such amounts shall be no greater than the rights of any general unsecured creditor of the Corporation.

3.            Vesting.  Subject to Section 8 below, the Award shall vest and become nonforfeitable based on the achievement of the performance goals and the time-based vesting requirements established by the Committee and set forth on Exhibit A attached hereto, incorporated herein by this reference.  The Total Number of Stock Units Subject to Award as set forth in the Notice are divided into two separate tranches as follows:  two-thirds (2/3) of such Total Number of Stock Units Subject to Award (rounded to the nearest whole unit) will be eligible to vest with respect to a performance measurement period consisting of the 2014-2015 Performance Period (the "2014-2015 Stock Units") and one-third (1/3) of such Total Number of Stock Units Subject to Award (rounded to the nearest whole unit) will be eligible to vest with respect to a performance measurement period consisting of the 2014-2016 Performance Period (the "2014-2016 Stock Units").  The "2014-2015" Performance Period means the Corporation's 2014 and 2015 fiscal years.  The "2014-2016 Performance Period" means the Corporation's 2014, 2015, and 2016 fiscal years.  In each case, the number of 2014-2015 Stock Units and the number of 2014-2016 Stock Units that vest may range from zero (0) to two hundred percent (200%) of the allocated portion of the Total Number of Stock Units Subject to Award as a result of the performance modifiers set forth in Exhibit A attached hereto.

 

4.            Continuance of Employment.  Except as expressly provided in Section 8, the vesting schedule requires continued employment or service through each applicable vesting date as a condition to the vesting of the applicable installment of the Award and the rights and benefits under the Award Agreement.  Employment or service for only a portion of the vesting period, even if a substantial portion, will not (except as expressly provided in Section 8) entitle the Grantee to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a termination of employment or services as provided in Section 8 below or under the Plan.

 

Nothing contained in the Award Agreement or the Plan constitutes an employment or service commitment by the Corporation or any Subsidiary, affects the Grantee's status as an employee at will who is subject to termination without cause, confers upon the Grantee any right to remain employed by or in service to the Corporation or any Subsidiary, interferes in any way with the right of the Corporation or any Subsidiary at any time to terminate such employment or services, or affects the right of the Corporation or any Subsidiary to increase or decrease the Grantee's other compensation or benefits.  Nothing in this paragraph, however, is intended to adversely affect any independent contractual right of the Grantee under any written employment agreement with the Corporation.

5.    No Stockholder Rights.  The Stock Units are bookkeeping entries only.  The Grantee shall have no rights as a stockholder of the Corporation, including dividend rights and voting rights, with respect to the Stock Units or any shares of Common Stock issuable in respect of such Stock Units until such shares of Common Stock are actually issued to and held of record by the Grantee.  No adjustments will be made for dividends or other rights of a holder for which the record date is prior to the date of issuance of the stock certificate evidencing the shares.

 

6.            Restrictions on Transfer.  Prior to the time the Stock Units are vested and paid, neither the Stock Units comprising the Award nor any interest therein or amount payable in respect thereof may be sold, assigned, transferred, pledged or otherwise disposed of, alienated or encumbered, either voluntarily or involuntarily, other than by will or the laws of descent and distribution.

 

7.            Timing and Manner of Payment of Stock Units.  Vested Stock Units subject to the Award Agreement shall be paid in an equivalent number of shares of Common Stock, subject to the tax withholding provisions of Section 10 hereof, subject to adjustment as provided in Section 6.2(a) of the Plan, and provided that no payment will be made until the Committee has certified that the corresponding performance vesting criteria have been attained.  Such payment shall be in complete satisfaction of such vested Stock Units.  2014-2015 Stock Units that vest will be paid in October, November or December of calendar year 2015.  2014-2016 Stock Units that vest will be paid in October, November or December of calendar year 2016.  The Grantee or any other person entitled under the Plan to receive such shares shall deliver to the Corporation any representations or other documents or assurances required pursuant to Section 6.4 of the Plan.

 

8.            Effect of Termination of Employment; Termination of Stock Units.  The Grantee's Stock Units shall, except as otherwise expressly provided below, automatically terminate and be forfeited to the extent such units have not actually been paid on or before the first date the Grantee is no longer employed by the Corporation or one of its Subsidiaries, regardless of the reason for the termination of the Grantee's employment, whether with or without cause, voluntarily or involuntarily.  The Grantee's 2014-2015 Stock Units shall automatically be deemed to have terminated and been forfeited as of the end of the 2014-2015 Performance Period to the extent that they do not vest with respect to or during the 2014-2015 Performance Period.  The Grantee's 2014-2016 Stock Units shall automatically be deemed to have terminated and been forfeited as of the end of the 2014-2016 Performance Period to the extent that they do not vest with respect to or during the 2014-2016 Performance Period.  The Grantee shall have no further rights with respect to any Stock Units that terminate or are forfeited.  If the Grantee is employed by a Subsidiary and that entity ceases to be a Subsidiary, such event shall be deemed to be a termination of employment of the Grantee for purposes of the Award Agreement, unless the Grantee otherwise continues to be employed by the Corporation or another of its Subsidiaries following such event.

 

(a)            Retirement, Death and Disability in 2014-2015 Performance Period.  In the event that the Grantee ceases to be employed by the Corporation or one of its Subsidiaries during the 2014-2015 Performance Period and such termination of employment is due to the Grantee's death, Total Disability, or Retirement:

 

	
·

	
the number of 2014-2015 Stock Units shall be pro-rated based on the ratio of the number of calendar days in the 2014-2015 Performance Period that occurred while the Grantee was employed by the Corporation or one of its Subsidiaries (including the date of such termination of employment) to the total number of calendar days in the 2014-2015 Performance Period;

	
·

	
the number of 2014-2016 Stock Units shall be pro-rated based on the ratio of the number of calendar days in the 2014-2016 Performance Period that occurred while the Grantee was employed by the Corporation or one of its Subsidiaries (including the date of such termination of employment) to the total number of calendar days in the 2014-2016 Performance Period;

	
·

	
such pro-rated number of Stock Units shall remain outstanding and eligible to vest at the end of the corresponding performance period as though the Grantee's employment had not terminated.

(b)            Retirement, Death and Disability in 2014-2016 Performance Period but after the conclusion of the 2014-2015 Performance Period.  In the event that the Grantee ceases to be employed by the Corporation or one of its Subsidiaries during the 2014-2016 Performance Period, but after the conclusion of the 2014-2015 Performance Period, and such termination of employment is due to the Grantee's death, Total Disability, or Retirement:

 

	
·

	
the 2014-2015 Stock Units shall be paid (to the extent the related performance vesting conditions were satisfied and such units had not previously been paid) as though the Grantee's employment had not terminated;

	
·

	
the number of 2014-2016 Stock Units shall be pro-rated based on the ratio of the number of calendar days in the 2014-2016 Performance Period that occurred while the Grantee was employed by the Corporation or one of its Subsidiaries (including the date of such termination of employment) to the total number of calendar days in the 2014-2016 Performance Period;

	
·

	
such pro-rated number of Stock Units shall remain outstanding and eligible to vest at the end of the corresponding performance period as though the Grantee's employment had not terminated.

(c)            Retirement, Death and Disability after 2014-2016 Performance Period.  In the event that the Grantee ceases to be employed by the Corporation or one of its Subsidiaries after the 2014-2016 Performance Period, and such termination of employment is due to the Grantee's death, Total Disability, or Retirement:

 

	
·

	
the 2014-2015 Stock Units and 2014-2016 Stock Units shall be paid (to the extent the related performance vesting conditions were satisfied and such units had not previously been paid) as though the Grantee's employment had not terminated.

(d)            Upon or Following Change in Control Event due to Retirement, Death, Disability, Without Cause or For Good Reason.  In the event that the Grantee ceases to be employed by the Corporation or one of its Subsidiaries upon or following a Change in Control Event, and such termination of employment is by the Corporation (or the Subsidiary that employs the Grantee, as the case may be) without Cause, or due to the Grantee's death, Total Disability, Retirement, or a termination by the Grantee for Good Reason:

 

	
·

	
the 2014-2015 Stock Units and 2014-2016 Stock Units shall be paid (to the extent the related performance vesting conditions were satisfied and such units had not previously been paid) as though the Grantee's employment had not terminated.

For purposes of the Award, "Cause" means the Grantee's (1) willful and material failure to perform the duties of the Grantee's employment with the Corporation and its Subsidiaries (other than any such failure due to the Grantee's physical or mental illness), or the Grantee's willful and material breach of the Grantee's obligations to the Corporation or any of its Subsidiaries arising out of the Grantee's employment, in each case following the Grantee's receipt of written notice thereof from the Corporation; (2) engaging in willful and serious misconduct that has caused or is reasonably expected to result in material injury to the Corporation; (3) being convicted of, or entering a plea of guilty or nolo contendere to, a crime that constitutes a felony; (4) failure or inability to obtain or retain any governmental approval, license or authorization required to be obtained or retained by the Grantee in any jurisdiction in which the Corporation or one of its Subsidiaries does or proposes to do business, which failure has or would reasonably be expected to have a material detrimental effect on the Grantee's ability to perform the duties of the Grantee's employment; or (5) embezzlement, fraud or misappropriation of property or assets of the Corporation or any of its Subsidiaries; provided, however, that if the Grantee is a party to a written employment agreement with the Corporation on the Award Date that defines the term "cause," then Cause for purposes of the Award shall have the meaning given to such term in such employment agreement.  The Committee, acting in its own discretion, will be responsible for determining whether particular conduct constitutes "Cause" for purposes of the Award.

For purposes of the Award, "Good Reason" means the occurrence of any of the following after the Award Date without the Grantee's express written consent: (1) a material reduction of the Grantee's duties, position or responsibilities relative to the Grantee's duties, position or responsibilities in effect immediately prior to such reduction; or (2) a material reduction by the Corporation of the Grantee's rate of annual base salary or annual target bonus opportunity as in effect immediately prior to such reduction that is not based upon the Corporation's standard annual competitive market review; provided, however, that any such occurrence shall not give rise to Good Reason unless, within 90 days after such occurrence is first known (or reasonably should have been known to exist) by the Grantee, the Grantee furnishes written notice to the Corporation of the Grantee's intention to terminate employment due to such occurrence and the Corporation shall have failed to reasonably cure the circumstances promptly (and in no event more than 30 days after) its receipt of such notice; further provided, that if the Grantee is a party to a written employment agreement with the Corporation on the Award Date that defines the term "good reason" (or a substantially similar concept for purposes of determining whether Grantee has the right to additional severance benefits upon a termination of employment) then Good Reason for purposes of the Award shall have the meaning given to such term (or such substantially similar term, as the case may be) in such employment agreement.

For purposes of the Award, "Retirement" means that the Grantee ceases to be employed by the Corporation or one of its Subsidiaries on or after attaining age 65 with at least ten (10) years of employment with the Corporation or one of its Subsidiaries.

For purposes of the Award, "Total Disability" has the meaning given to such term in the Plan.

For purposes of clarity, clause (d) above, if applicable, controls over clauses (a), (b) and (c) above.  In addition, the termination of employment rules set forth in this Award Agreement control in the event of any conflict or inconsistency with any employment agreement to which the Grantee may be a party with the Corporation or any of its Subsidiaries.

9.            Adjustments Upon Specified Events; Change in Control Events.  Upon the occurrence of certain events relating to the Corporation's stock contemplated by Section 6.2(a) of the Plan, the Committee will make adjustments if appropriate in the number of Stock Units contemplated hereby and the number and kind of securities that may be issued in respect of the Award.  Sections 6.2(b) and (c) of the Plan shall not apply with respect to the Award, but the Award is subject to adjustment in connection with a Change in Control Event as follows:

 

	
·

	
If a Change in Control Event occurs after the 2014-2016 Performance Period, the 2014-2015 Stock Units and 2014-2016 Stock Units shall be paid (to the extent the related performance vesting conditions were satisfied and such units had not previously been paid) as otherwise provided.

	
·

	
If a Change in Control Event occurs after the 2014-2015 Performance Period but during the 2014-2016 Performance Period, and in connection with such change in control event the Corporation ceases to exist or ceases to exist as a public company with respect to its Common Stock, the 2014-2015 Stock Units shall be paid (to the extent the related performance vesting conditions were satisfied and such units had not previously been paid) as otherwise provided, but the 2014-2016 Stock Units shall be adjusted as provided in the next sentence.  In such circumstances: (A) the number of 2014-2016 Stock Units shall be determined as though the 2014-2016 Performance Period ended as of the Change in Control Event, the EPS performance condition for the 2014-2016 Performance Period set forth on Exhibit A attached hereto shall be deemed satisfied at the target/100% level, and TSR performance modifications shall be determined based on actual TSR performance for such shortened period; and (B) the number of 2014-2016 Stock Units so determined will vest on the last day of the scheduled 2014-2016 Performance Period (without it being shortened due to the occurrence of the Change in Control Event), subject to the Grantee's continued employment by the Corporation or one of its Subsidiaries through that date and subject to Section 8.

	
·

	
If a Change in Control Event occurs during the 2014-2015 Performance Period but following the first two quarters of the Corporation's 2014 fiscal year, and in connection with such change in control event the Corporation ceases to exist or ceases to exist as a public company with respect to its Common Stock, the 2014-2016 Stock Units shall be adjusted as provided in the immediately preceding paragraph and the 2014-2015 Stock Units shall be adjusted as provided in the next sentence.  In such circumstances: (A) the number of 2014-2015 Stock Units shall be determined as though the 2014-2015 Performance Period ended as of the Change in Control Event, the EPS performance condition for the 2014-2015 Performance Period set forth on Exhibit A attached hereto shall be deemed satisfied at the target/100% level, and TSR performance modifications shall be determined based on actual TSR performance for such shortened period; and (B) the number of 2014-2015 Stock Units so determined will vest on the last day of the scheduled 2014-2015 Performance Period (without it being shortened due to the occurrence of the Change in Control Event), subject to the Grantee's continued employment by the Corporation or one of its Subsidiaries through that date and subject to Section 8.

	
·

	
If a Change in Control Event occurs during the first two quarters of the Corporation's 2014 fiscal year, and in connection with such change in control event the Corporation ceases to exist or ceases to exist as a public company with respect to its Common Stock, the performance-based vesting conditions of Exhibit A attached hereto shall not apply to the Award, and instead the Total Number of Stock Units Subject to Award (with no performance modifications taken into account) will be subject to a time-based vesting schedule as follows:  the 2014-2015 Stock Units will vest on the last day of the 2014-2015 Performance Period, subject to the Grantee's continued employment by the Corporation or one of its Subsidiaries through that date and subject to Section 8, and the 2014-2016 Stock Units will vest on the last day of the 2014-2016 Performance Period, subject to the Grantee's continued employment by the Corporation or one of its Subsidiaries through that date and subject to Section 8.

10.            Tax Withholding.  Subject to Section 6.5 of the Plan, upon any distribution of Common Stock in respect of the Award, the Corporation shall, to the extent it is legally permitted to do so, automatically reduce the number of shares to be delivered by (or otherwise reacquire) the appropriate number of whole shares, valued at their then Fair Market Value, to satisfy any withholding obligations of the Corporation or its Subsidiaries with respect to such distribution of shares at the minimum applicable withholding rates unless the Grantee has made other arrangements approved by the Committee to provide for such withholding.  In the event that the Corporation cannot legally satisfy such withholding obligations by such reduction of shares, or in the event of a cash payment or any other withholding event in respect of the Award, the Corporation (or a Subsidiary) shall be entitled to require a cash payment by or on behalf of the Grantee and/or to deduct from other compensation payable to the Grantee any sums required by federal, state or local tax law to be withheld with respect to such distribution or payment.

 

11.            Notices.  Any notice to be given under the Award Agreement, the Stock Plan System or the Plan shall be in writing and addressed to the Corporation at its principal office to the attention of the Secretary, and to the Grantee at the Grantee's last address reflected on the Corporation's records, or at such other address as either party may hereafter designate in writing to the other.  Any such notice shall be given only when received, but if the Grantee is no longer an employee of the Corporation or one of its Subsidiaries, shall be deemed to have been duly given by the Corporation when enclosed in a properly sealed envelope addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid) in a post office or branch post office regularly maintained by the United States Government.

 

12.            Plan.  The Award and all rights of the Grantee under the Award Agreement are subject to the terms and conditions of the Plan, incorporated herein by this reference.  The Grantee agrees to be bound by the terms of the Plan and the Award Agreement.  The Grantee acknowledges receiving, reading and understanding the Plan, the Prospectus for the Plan and the Award Agreement.  Unless otherwise expressly provided in other sections of the Award Agreement, provisions of the Plan that confer discretionary authority on the Board or the Committee do not (and shall not be deemed to) create any rights in the Grantee unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the Committee so conferred by appropriate action of the Board or the Committee under the Plan after the date hereof.

 

13.            Entire Agreement.  The Award Agreement and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof, with the exception of the Invention and Secrecy Agreement and the Confidentiality and Invention Agreement.  The Plan and the Award Agreement may be amended pursuant to Section 6.6 of the Plan.  Such amendment must be in writing and signed by the Corporation.  The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely affect the interests of the Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof.

 

14.            Section Headings.  The section headings of the Award Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof.

 

15.            Governing Law and Venue.  The Award Agreement and the rights of the parties hereunder and with respect to the Award shall be governed by and construed and enforced in accordance with the laws of the State of Nevada without regard to conflict of law principles thereunder.  The parties, as well as any of their successors, employees, or representatives, irrevocably agree to the exclusive jurisdiction of the Courts of the State of Nevada (or such judicial district of a court of the United States as shall include same) for the determination of all matters arising hereunder or with respect to the Award.

 

16.                        Construction; Section 409A.  It is intended that the terms of the Award will not result in the imposition of any tax liability pursuant to Section 409A of the Code.  It is further intended that the Award will qualify as performance-based compensation (to the extent possible) within the meaning of Section 162(m) of the Code.  The Award Agreement shall be construed and interpreted consistent with the foregoing intents.

 

Notwithstanding anything contained herein to the contrary, the Grantee shall not be considered to have terminated employment with the Company for purposes of any payments under this Agreement which are subject to (and not exempt from) and constitute a deferral of compensation under Section 409A of the Code until the Grantee would be considered to have incurred a "separation from service" with the Company within the meaning of Section 409A of the Code.  Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified payment for purposes of Section 409A of the Code.

Notwithstanding anything contained herein to the contrary, if the Grantee is a "specified employee" within the meaning of Section 409A of the Code as of the date of the Grantee's separation from service with the Company, the Grantee shall not be entitled to any payment or benefit pursuant to the Award until the earlier of (i) the date which is six (6) months after the Grantee's separation from service with the Company for any reason other than death, or (ii) the date of the Grantee's death.  The provisions of this paragraph shall only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Section 409A of the Code.  Any amounts otherwise payable to the Grantee upon or in the six (6) month period following the Grantee's separation from service that are not so paid by reason of this paragraph shall be paid as soon as practicable (and in all events within ten (10) days) after the date that is six (6) months after the Grantee's separation from service with the Company (or, if earlier, as soon as practicable, and in all events within ten (10) days, after the date of the Grantee's death).

17.                        Restrictive Covenants.  In consideration of the granting of the Award, the Grantee agrees that:

 

(a)            For a period of one (1) year after the Grantee ceases to be employed by the Corporation or a Subsidiary, the Grantee will not engage on behalf of any person, company or entity, in any activities worldwide, directly or indirectly, relating to the development, design, manufacture, sale, or distribution of gaming devices, gaming systems, or gaming content, or other products or services competitive with or similar to products or services offered by, developed by, designed by, manufactured by, sold by or distributed by the Corporation or any of its Subsidiaries.

 

(b)            Both during and after the termination of the Grantee's employment with the Corporation or a Subsidiary, the Grantee shall keep confidential and not disclose to other persons or entities, or use for any purpose other than as required in the course of the Grantee's employment with the Corporation or a Subsidiary, any and all Confidential Information.  For these purposes, "Confidential Information" shall include any information or material, regardless of how it is stored or disseminated, which is not generally known or available to the public, and which (i) is generated or collected by or utilized in the operation of the Corporation or a Subsidiary and relates to the actual or anticipated business or research or development of the Corporation or a Subsidiary; or (ii) is suggested by or results from any task assigned to the Grantee by the Corporation or a Subsidiary or work performed by the Grantee for or on behalf of the Corporation or a Subsidiary.  Confidential information shall not be considered generally known to the public if revealed improperly to the public by the Grantee or others without the Corporation's express written consent and/or in violation of an obligation of confidentiality to the Corporation or a Subsidiary.  Examples of Confidential Information include, but are not limited to, customer lists, customer information, customer contacts, the identity of suppliers, pricing, margins, business plans, marketing plans, financial data, business and customer strategy, techniques, technical know-how, formulae, processes, designs, prototypes, models, software, solutions, discussion guides, employee performance, and research and development.  The confidentiality obligations herein shall not prevent the Grantee from divulging Confidential Information or trade secrets by order of court or agency of competent jurisdiction; however, the Grantee shall promptly inform the Corporation of any such situations and shall take such reasonable steps to prevent disclosure of  Confidential Information or trade secrets until Corporation has been informed of such requested disclosure and the Corporation has had an opportunity to respond to the court or agency.

 

(c)            When the Grantee's employment with the Corporation or a Subsidiary ends for any reason, or upon the request of the Corporation at any time, the Grantee will deliver promptly to the Corporation all property of the Corporation or a Subsidiary in the Grantee's possession, custody or control, including, but not limited to, all computers or other Corporation-owned equipment, electronic data, notes, books, records, files, correspondence, drawings, software, program discs and other materials relating to the Corporation's business, products and projects, including all copies thereof.

 

(d)            The Grantee recognizes that the Corporation's business interests may be irreparably harmed by any violation of this Section of these Terms or threatened violation of this Section such that the Corporation shall, in addition to all other remedies available at law or in equity, be entitled to injunctive relief.  In the event the Corporation successfully enforces any part of this Section 17 through legal proceedings, the Grantee will pay the Corporation's costs and attorneys' fees.

 

(e)            Should any portion of this Section 17 be determined to be unenforceable, that portion may be severed or modified by a court of competent jurisdiction, to permit enforcement of the remainder of the Section to the fullest extent possible.  Any court enforcing the Award Agreement is specifically authorized to modify the restrictions contained in the Award Agreement in order to make it enforceable.  Any waiver by the Corporation of a breach of any provision of the Award Agreement shall not operate or be construed as a waiver of any subsequent breach by the Corporation.  No waiver shall be valid unless in writing and signed by an authorized officer of the Corporation.

 

18.                        Clawback Policy.  The Stock Units are subject to the terms of the Corporation's recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law, any of which could in certain circumstances require repayment or forfeiture of the Stock Units or any shares of Common Stock or other cash or property received with respect to the Stock Units (including any value received from a disposition of the shares acquired upon payment of the Stock Units).

 

19.            No Advice Regarding Grant.  The Grantee is hereby advised to consult with his or her own tax, legal and/or investment advisors with respect to any advice the Grantee may determine is needed or appropriate with respect to the Stock Units (including, without limitation, to determine the foreign, state, local, estate and/or gift tax consequences with respect to the Award).  Neither the Corporation nor any of its officers, directors, affiliates or advisors makes any representation (except for the terms and conditions expressly set forth in this Award Agreement) or recommendation with respect to the Award.  Except for the withholding rights set forth in Section 10 above, the Grantee is solely responsible for any and all tax liability that may arise with respect to the Award.

YOUR ACCEPTANCE OF THE AWARD THROUGH THE STOCK PLAN SYSTEM MAINTAINED BY THE CORPORATION OR ITS DESIGNEE CONSTITUTES YOUR AGREEMENT TO THE TERMS AND CONDITIONS HEREOF, AND THAT THE AWARD IS GRANTED UNDER AND GOVERNED BY THE TERMS AND CONDITIONS OF THE PLAN AND THE AWARD AGREEMENT.

* * * * *

OMM_US:71967400.02

EXHIBIT A

PERFORMANCE-BASED AND TIME-BASED VESTING REQUIREMENTS

This Exhibit A is subject to the other provisions of the Terms (including, without limitation, Sections 4, 8 and 9 of the Terms).

The percentage of 2014-2015 Stock Units subject to the Award that vest will be based on the Corporation's Average EPS Growth and TSR Percentile for the 2014-2015 Performance Period in accordance with the following table.  The percentage of 2014-2016 Stock Units subject to the Award that vest will be based on the Corporation's Average EPS Growth and TSR Percentile for the 2014-2016 Performance Period in accordance with the following table.

	
Average EPS Growth Payout Scale

 

	
TSR Percentile Modifier Scale

 

	
Average EPS Growth for the Performance Period

	

 Payout Percentage

	

 TSR Percentile for the Performance Period

	

 Modifier Percentage

	
Less than 5%

	
0%

	
Less than 25%

	
-33%

	
5%

	
25%

	
25%

	
-33%

	
6%

	
40%

	
30%

	
-26%

	
7%

	
55%

	
35%

	
-20%

	
8%

	
70%

	
40%

	
-13%

	
9%

	
85%

	
45%

	
-7%

	
10%

	
100%

	
50%

	
0%

	
11%

	
110%

	
55%

	
7%

	
12%

	
120%

	
60%

	
13%

	
13%

	
130%

	
65%

	
20%

	
14%

	
140%

	
70%

	
26%

	
15% or Greater

	
150%

	
75% or Greater

	
33%

For Average EPS Growth or TSR Percentile results between two points in the preceding table, the actual payout percentage shall be determined on a straight-line bases between the two closest points based on the actual Average EPS Growth or TSR Percentile performance achieved (with the actual payout percentage in each case rounded down to the nearest whole percentage).

Determination.  As soon as practicable (and in all events within two and one-half months) after the last day of each applicable Performance Period, the Committee shall determine performance for the corresponding Performance Period and the extent (if any) to which Stock Units corresponding to that Performance Period vested.  The number of Stock Units that vest for a Performance Period shall be determined as follows: (1) first, the number of Stock Units corresponding to that Performance Period (the 2014-2015 Stock Units or the 2014-2016 Stock Units, as the case may be) will be multiplied by the Average EPS Growth payout percentage determined pursuant to the preceding table (based on the Average EPS Growth for that Performance Period); and (2) increasing or decreasing such number of Stock Units by a number of Stock Units determined by multiplying the number of Stock Units obtained pursuant to step (1) by the TSR Percentile modifier percentage determined pursuant to the preceding table (based on the TSR Percentile for that Performance Period).  Such determinations by the Committee shall be final and binding.

Defined Terms.  For purposes of the Award, the following definitions will apply.

"TSR Percentile" means the percentile ranking of the Corporation's TSR among the TSRs for the Corporation Peer Group members for the corresponding Performance Period.

"EPS" means the Corporation's earnings per share for a particular fiscal year as determined by the Corporation in accordance with its standard practices and procedures and reflected in its financial statements for that fiscal year, subject to the adjustments described below.

"Average EPS Growth" for the corresponding Performance Period means the average of the Corporation's annual EPS growth grates for each fiscal year in the Performance Period.

"Beginning Price" means, with respect to the Corporation and any other Corporation Peer Group member, the average of the closing market prices of  such company's common stock on the principal exchange on which such stock is traded for the thirty (30) consecutive trading days ending with the first day of the corresponding Performance Period.  As to a stock which goes ex-dividend during such 30-day period, the closing market prices as to such stock for the portion of the 30-day period preceding the ex-dividend date shall be equitably adjusted to exclude the amount of the related dividend.

"Corporation Peer Group" means the Corporation and each of the following companies:

Activision Blizzard, Inc.

Adobe Systems Incorporated

Juniper Networks, Inc.

Intuit Inc.

Electronic Arts Inc.

Lexmark International, Inc.

NVIDIA Corporation

Alliance Data Systems Corporation

Diebold, Incorporated

IAC/InterActiveCorp

Autodesk, Inc.

Coinstar, Inc.

Akamai Technologies, Inc.

Cadence Design Systems, Inc.

MICROS Systems, Inc.

Mentor Graphics Corporation

Scientific Games Corporation

Bally Technologies, Inc.

Take-Two Interactive Software, Inc.

WMS Industries Inc.

Aristocrat Leisure

SHFL entertainment, Inc.

 

 The Corporation Peer Group shall be subject to adjustment by the Committee for changes that occur prior to the end of the applicable Performance Period as follows:  In the event of a merger or other business combination of two Corporation Peer Group members (including, without limitation, the acquisition of one Corporation Peer Group member, or all or substantially all of its assets, by another Corporation Peer Group member), the surviving, resulting or successor entity, as the case may be, shall continue to be treated as a member of the Corporation Peer Group, provided that the common stock (or similar equity security) of such entity is listed or traded on a national securities exchange as of the end of the applicable Performance Period.  In the event a member of the Corporation Peer Group files for bankruptcy or liquidates, such company shall continue to be treated as a Corporation Peer Group member; provided that such company's stock price will be treated as $0 if the company is no longer listed or traded on a national securities exchange as of the end of the applicable Performance Period.  Other than as provided above, in the event that the common stock (or similar equity security) of a Corporation Peer Group member is otherwise not listed or traded on a national securities exchange at the end of the applicable Performance Period, such entity shall be excluded from the Corporation Peer Group.

"Ending Price" means, with respect to the Corporation and any other Corporation Peer Group member, the average of the closing market prices of such company's common stock on the principal exchange on which such stock is traded for the thirty (30) consecutive trading days ending with the last day of the applicable Performance Period.  As to a stock which goes ex-dividend during such 30-day period, the closing market prices as to such stock for the portion of the 30-day period preceding the ex-dividend date shall be equitably adjusted to exclude the amount of the related dividend.

"Performance Period" means either the 2014-2015 Performance Period or the 2014-2016 Performance Period, as applicable.

"TSR" means total shareholder return and shall be determined with respect to the Corporation and any other Corporation Peer Group member by dividing: (a) the sum of (i) the difference obtained by subtracting the applicable Beginning Price from the applicable Ending Price plus (ii) all dividends and other distributions for which the ex-dividend date (or similar date in the case of a distribution other than a dividend) related to such dividend or other distribution occurs during the applicable Performance Period by (b) the applicable Beginning Price.  Any non-cash distributions shall be ascribed such dollar value as may be determined by or at the direction of the Committee.

Adjustments.  For purposes of determining EPS under the Award, the Committee shall adjust (without duplication) the Corporation's EPS (as determined before giving effect to such adjustments) for the applicable fiscal year for the following items:

(a)        increased or decreased to eliminate the financial statement impact of employee retention and earn-out costs that result from mergers and acquisitions;

(b)        increased or decreased to eliminate the financial statement impact of divestitures;

(c)        increased or decreased to eliminate the financial statement impact of any new changes in accounting standards announced during the year that are required to be applied during the year in accordance with U.S. Generally Accepted Accounting Principles;

(d)       increased or decreased to eliminate the financial impact for the dispositions or impairments of long-lived assets, excluding gaming operations equipment;

(e)       increased or decreased to eliminate the financial impact related to early extinguishment of debt and debt related instruments; and

(f)      increased or decreased to eliminate the financial impact of natural disasters and related insurance recoveries.

The Committee's determination of whether an adjustment is required, and the nature and extent of any such adjustment, shall be final and binding.

* * * * *EXHIBIT 10.3

	
To:

 

	
International Game Technology

6355 South Buffalo Drive

 Las Vegas, Nevada 89113-s

 

	
From:

 

	
BNP Paribas

787 Seventh Avenue

New York, NY 10019

 

 

	
Re:

 

	
Capped Accelerated Stock Buyback

 

	
Ref. No:

 

	
As provided in the Supplemental Confirmation

 

	
Date:

	
November 7, 2013

This master confirmation (this "Master Confirmation"), dated as of November 7, 2013 is intended to set forth certain terms and provisions of certain Transactions (each, a "Transaction") entered into from time to time between BNP Paribas ("Dealer") and International Game Technology ("Counterparty").  This Master Confirmation, taken alone, is neither a commitment by either party to enter into any Transaction nor evidence of a Transaction.  The additional terms of any particular Transaction shall be set forth in (i) a Supplemental Confirmation in the form of Schedule A hereto (a "Supplemental Confirmation"), which shall reference this Master Confirmation and supplement, form a part of, and be subject to this Master Confirmation and (ii) a Trade Notification in the form of Schedule B hereto (a "Trade Notification"), which shall reference the relevant Supplemental Confirmation and supplement, form a part of, and be subject to such Supplemental Confirmation.  This Master Confirmation, each Supplemental Confirmation and the related Trade Notification together shall constitute a "Confirmation" as referred to in the Agreement specified below.

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the "Equity Definitions"), as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Master Confirmation.  This Master Confirmation, each Supplemental Confirmation and the related Trade Notification evidence a complete binding agreement between Counterparty and Dealer as to the subject matter and terms of each Transaction to which this Master Confirmation, such Supplemental Confirmation and Trade Notification relate and shall supersede all prior or contemporaneous written or oral communications with respect thereto.

This Master Confirmation, each Supplemental Confirmation and each Trade Notification supplement, form a part of, and are subject to an agreement in the form of the 1992 ISDA Master Agreement (Multicurrency-Cross Border) (the "Agreement") as if Dealer and Counterparty had executed the Agreement on the date of this Master Confirmation (but without any Schedule except for (i) the election of Loss and Second Method, New York law (without reference to its choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law) as the governing law and US Dollars ("USD") as the Termination Currency, (ii) the election that subparagraph (ii) of Section 2(c) will not apply to the Transactions, (iii) the replacement of the word "third" in the last line of Section 5(a)(i) with the word "first" and (iv) the election that the "Cross Default" provisions of Section 5(a)(vi) shall apply to both Counterparty and Dealer, in each case with a "Threshold Amount" of 3% of stockholder's equity of Counterparty or Dealer, as applicable, and with the deletion of the phrase ", or becoming capable at such time of being declared," in the seventh line of Section 5(a)(vi)).

The Transactions shall be the sole Transactions under the Agreement.  If there exists any ISDA Master Agreement between Dealer and Counterparty or any confirmation or other agreement between Dealer and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between Dealer and Counterparty, then notwithstanding anything to the contrary in such ISDA Master Agreement, such confirmation or agreement or any other agreement to which Dealer and Counterparty are parties, the Transactions shall not be considered Transactions under, or otherwise governed by, such existing or deemed ISDA Master Agreement.

All provisions contained or incorporated by reference in the Agreement shall govern this Master Confirmation, each Supplemental Confirmation and each Trade Notification except as expressly modified herein or in the related Supplemental Confirmation.

If, in relation to any Transaction to which this Master Confirmation, a Supplemental Confirmation and a Trade Notification relate, there is any inconsistency between the Agreement, this Master Confirmation, any Supplemental Confirmation, any Trade Notification and the Equity Definitions, the following will prevail for purposes of such Transaction in the order of precedence indicated:  (i) such Trade Notification, (ii) such Supplemental Confirmation; (iii) this Master Confirmation; (iv) the Equity Definitions; and (v) the Agreement.

1.            Each Transaction constitutes a Share Forward Transaction for the purposes of the Equity Definitions.  Set forth below are the terms and conditions that, together with the terms and conditions set forth in the Supplemental Confirmation and Trade Notification relating to any Transaction, shall govern such Transaction.

	
General Terms:

 

	
 

 

	
Trade Date:

 

	
For each Transaction, as set forth in the related Supplemental Confirmation.

 

	
Buyer:

 

	
Counterparty

 

	
Seller:

 

	
Dealer

 

	
Shares:

 

	
Common stock, par value $0.00015625 per share, of Counterparty (Ticker:  IGT)

 

	
Exchange:

 

	
New York Stock Exchange

 

	
Related Exchange(s):

 

	
All Exchanges.

 

	
Prepayment\Variable Obligation:

 

	
Applicable

 

	
Prepayment Amount:

 

	
For each Transaction, as set forth in the related Supplemental Confirmation.

 

	
Prepayment Date:

 

	
For each Transaction, as set forth in the related Supplemental Confirmation.

 

	
Valuation:

 

	
 

 

	
Hedge Period:

 

	
The period from and including the first Exchange Business Day following the Trade Date to and including the Hedge Completion Date.

 

	
Hedge Completion Date:

 

	
For each Transaction, as set forth in the related Trade Notification, to be the Exchange Business Day on which Dealer finishes establishing its initial Hedge Positions in respect of such Transaction, as determined by Dealer in its sole discretion, but in no event later than the Hedge Period End Date.

 

	
Hedge Period End Date:

 

	
For each Transaction, as set forth in the related Supplemental Confirmation, subject to postponement as provided in "Valuation Disruption" below.

 

	
Hedge Period Reference Price:

 

	
For each Transaction, as set forth in the related Trade Notification, to be the average of the VWAP Prices for the Exchange Business Days in the Hedge Period, subject to "Valuation Disruption" below.

 

	
VWAP Price:

 

	
For any Exchange Business Day, the New York 10b‐18 Volume Weighted Average Price per Share for the regular trading session (including any extensions thereof) of the Exchange on such Exchange Business Day (without regard to pre-open or after hours trading outside of such regular trading session for such Exchange Business Day), as published by Bloomberg at 4:15 p.m. New York time (or 15 minutes following the end of any extension of the regular trading session) on such Exchange Business Day, on Bloomberg page "IGT.N <Equity> AQR_SEC" (or any successor thereto), or if such price is not so reported on such Exchange Business Day for any reason or is, in the Calculation Agent's reasonable discretion, erroneous, such VWAP Price shall be as reasonably determined by the Calculation Agent.  For purposes of calculating the VWAP Price, the Calculation Agent will include only those trades that are reported during the period of time during which Counterparty could purchase its own shares under Rule 10b‐18(b)(2) and are effected pursuant to the conditions of Rule 10b‐18(b)(3), each under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (such trades, "Rule 10b‐18 eligible transactions").

 

	
Forward Price:

 

	
As of any Exchange Business Day during the Calculation Period, the average of the VWAP Prices for the Exchange Business Days in the Calculation Period occurring prior to, and including, such Exchange Business Day, subject to "Valuation Disruption" below.

 

	
Forward Price Adjustment Amount:

 

	
For each Transaction, as set forth in the related Supplemental Confirmation.

 

	
Calculation Period:

 

	
The period from and including the Calculation Period Start Date to and including the Termination Date.

 

	
Calculation Period Start Date:

 

	
For each Transaction, as set forth in the related Supplemental Confirmation, to be the first Scheduled Trading Day immediately following the Trade Date.

 

	
Termination Date:

 

	
The Scheduled Termination Date; provided that Dealer shall have the right to designate any Exchange Business Day on or after the First Acceleration Date to be the Termination Date (the "Accelerated Termination Date") by delivering notice to Counterparty of any such designation prior to 11:59 p.m. New York City time on the Exchange Business Day immediately following the designated Accelerated Termination Date.

In the case of  any acceleration of the Termination Date in part (a "Partial Acceleration"), (a) Dealer shall specify in its written notice to Counterparty accelerating the Termination Date the corresponding percentage of the Prepayment Amount that is subject to valuation on the related Valuation Date, (b) such portion of the Prepayment Amount that is subject to valuation on the related Valuation Date shall not be less than USD 50 million (provided that if after any Partial Acceleration the remaining portion of the Transaction corresponding to the Prepayment Amount would be less than USD 50 million, Dealer may only accelerate the Transaction with respect to such full amount) and (c) Calculation Agent shall adjust the terms of the Transaction to reflect the occurrence of such Partial Acceleration and a corresponding reduction to relevant terms of the Transaction (including cumulative adjustments to take into account multiple Partial Accelerations that occur during the term of the Transaction). Not more than four Partial Accelerations shall be permitted during the term of the Transaction.

 

	
Scheduled Termination Date:

 

	
For each Transaction, as set forth in the related Supplemental Confirmation, subject to postponement as provided in "Valuation Disruption" below.

 

	
First Acceleration Date:

 

	
For each Transaction, as set forth in the related Supplemental Confirmation.

 

	
Valuation Disruption:

 

	
The definition of "Market Disruption Event" in Section 6.3(a) of the Equity Definitions is hereby amended by deleting the words "at any time during the one-hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock‐in Valuation Time or Knock-out Valuation Time, as the case may be" and inserting the words "at any time on any Scheduled Trading Day during the Hedge Period, Calculation Period or Settlement Valuation Period" after the word "material," in the third line thereof.

 

	
 

 

	
Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the term "Scheduled Closing Time" in the fourth line thereof.

 

	
 

 

	
Notwithstanding anything to the contrary in the Equity Definitions, to the extent that a Disrupted Day occurs (i) in the Hedge Period or the Calculation Period, the Calculation Agent may, in its good faith and commercially reasonable discretion, postpone either or both of the Hedge Period End Date and/or the Scheduled Termination Date, or (ii) in the Settlement Valuation Period, the Calculation Agent may extend the Settlement Valuation Period.  If any such Disrupted Day is a Disrupted Day because of a Market Disruption Event (or a deemed Market Disruption Event as provided in Section 5), the Calculation Agent shall, acting in good faith and in a commercially reasonable manner, determine whether (i) such Disrupted Day is a Disrupted Day in full, in which case the VWAP Price for such Disrupted Day shall not be included for purposes of determining the Hedge Period Reference Price, the Forward Price or the Settlement Price, as the case may be, or (ii) such Disrupted Day is a Disrupted Day only in part, in which case the VWAP Price for such Disrupted Day shall be determined by the Calculation Agent based on Rule 10b‐18 eligible transactions in the Shares on such Disrupted Day taking into account the nature and duration of the relevant Market Disruption Event, and the weighting of the VWAP Price for the relevant Exchange Business Days during the Hedge Period, the Calculation Period or the Settlement Valuation Period, as the case may be, shall be adjusted in a commercially reasonable manner by the Calculation Agent for purposes of determining the Hedge Period Reference Price, the Forward Price or the Settlement Price, as the case may be, with such adjustments based on, among other factors, the duration of any Market Disruption Event and the volume, historical trading patterns and price of the Shares.  Any Exchange Business Day on which, as of the date hereof, the Exchange is scheduled to close prior to its normal close of trading shall be deemed not to be an Exchange Business Day; if a closure of the Exchange prior to its normal close of trading on any Exchange Business Day is scheduled following the date hereof, then such Exchange Business Day shall be deemed to be a Disrupted Day in full.

 

	
 

 

	
If a Disrupted Day occurs during the Hedge Period, the Calculation Period or the Settlement Valuation Period, as the case may be, and each of the nine immediately following Scheduled Trading Days is a Disrupted Day, then the Calculation Agent, in its good faith and commercially reasonable discretion, may deem such ninth Scheduled Trading Day to be an Exchange Business Day that is not a Disrupted Day and determine the VWAP Price for such ninth Scheduled Trading Day using its good faith estimate of the value of the Shares on such ninth Scheduled Trading Day based on the volume, historical trading patterns and price of the Shares and such other factors as it deems appropriate.

 

	
Settlement Terms:

 

	
 

 

	
Physical Settlement:

 

	
Applicable; provided that Dealer does not, and shall not, make the agreement or the representations set forth in Section 9.11 of the Equity Definitions related to the restrictions imposed by applicable securities laws with respect to any Shares delivered by Dealer to Counterparty under any Transaction.

 

	
Number of Shares to be Delivered:

 

	
A number of Shares equal to (a) the Prepayment Amount divided by (b) the Divisor Amount; provided that the Number of Shares to be Delivered shall not be less than the Minimum Shares.  The Number of Shares to be Delivered on the Settlement Date shall be reduced, but not below zero, by any Shares delivered pursuant to the Initial Share Delivery and the Minimum Share Delivery described below.  Notwithstanding Section 9.2 of the Equity Definitions, the Number of Shares to be Delivered shall be rounded down to the nearest whole number of Shares and no Fractional Share Amounts shall be delivered.

 

	
Divisor Amount:

 

	
The greater of (i) the Forward Price minus the Forward Price Adjustment Amount and (ii) $0.50.

 

	
Excess Dividend Amount:

 

	
For the avoidance of doubt, all references to the Excess Dividend Amount shall be deleted from Section 9.2(a)(iii) of the Equity Definitions.

 

	
Settlement Date:

 

	
The date that is one Settlement Cycle immediately following the Termination Date.

 

	
Settlement Currency:

 

	
USD

 

	
Initial Share Delivery:

 

	
Dealer shall deliver a number of Shares equal to the Initial Shares to Counterparty on the Initial Share Delivery Date in accordance with Section 9.4 of the Equity Definitions, with the Initial Share Delivery Date deemed to be a "Settlement Date" for purposes of such Section 9.4.

 

	
Initial Share Delivery Date:

 

	
For each Transaction, as set forth in the related Supplemental Confirmation.

 

	
Initial Shares:

 

	
For each Transaction, as set forth in the related Supplemental Confirmation.

 

	
Minimum Share Delivery:

 

	
Dealer shall deliver a number of Shares equal to the excess, if any, of the Minimum Shares over the Initial Shares on the Minimum Share Delivery Date in accordance with Section 9.4 of the Equity Definitions, with the Minimum Share Delivery Date deemed to be a "Settlement Date" for purposes of such Section 9.4.

 

	
Minimum Share Delivery Date:

 

	
For each Transaction, as set forth in the related Supplemental Confirmation.

 

	
Minimum Shares:

 

	
For each Transaction, as set forth in the related Supplemental Confirmation.

 

	
Share Adjustments:

 

	
 

 

	
Potential Adjustment Event:

 

	
Notwithstanding anything to the contrary in Section 11.2(e) of the Equity Definitions, neither (i) an Extraordinary Dividend nor (ii) the issuance of additional stock options in the ordinary course pursuant to Counterparty's employee stock option plan shall constitute a Potential Adjustment Event.

 

	
Extraordinary Dividend:

 

	
For any calendar quarter, any dividend or distribution on the Shares with an ex‐dividend date occurring during such calendar quarter (other than any dividend or distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the Equity Definitions) (a "Dividend") the amount or value of which (as determined by the Calculation Agent), when aggregated with the amount or value (as determined by the Calculation Agent) of any and all previous Dividends with ex‐dividend dates occurring in the same calendar quarter, exceeds the Ordinary Dividend Amount.

 

	
Ordinary Dividend Amount:

 

	
For each Transaction, as set forth in the related Supplemental Confirmation

 

	
Method of Adjustment:

 

	
Calculation Agent Adjustment

 

	
Early Ordinary Dividend Payment:

 

	
If an ex‐dividend date for any Dividend that is not an Extraordinary Dividend occurs during any calendar quarter occurring (in whole or in part) during the Relevant Period (as defined below) and is prior to the Scheduled Ex‐Dividend Date for such calendar quarter, the Calculation Agent shall make such adjustment to the exercise, settlement, payment or any other terms of the relevant Transaction as the Calculation Agent determines appropriate to account for the economic effect on the Transaction of such event.

 

	
Scheduled Ex‐Dividend Dates:

 

	
For each Transaction for each calendar quarter, as set forth in the related Supplemental Confirmation.

 

	
Extraordinary Events:

 

	
 

 

	
Consequences of Merger Events:

 

	
 

 

	
(a)            Share-for-Share:

 

	
Modified Calculation Agent Adjustment

 

	
(b)            Share-for-Other:

 

	
Cancellation and Payment

 

	
(c)            Share-for-Combined:

 

	
Component Adjustment

 

	
Tender Offer:

 

	
Applicable

 

	
Consequences of Tender Offers:

 

	
 

 

	
(a)            Share-for-Share:

 

	
Modified Calculation Agent Adjustment or Cancellation and Payment, at the election of Dealer

 

	
(b)            Share-for-Other:

 

	
Modified Calculation Agent Adjustment or Cancellation and Payment, at the election of Dealer

 

	
(c)            Share-for-Combined:

 

	
Modified Calculation Agent Adjustment or Cancellation and Payment, at the election of Dealer

 

	
Nationalization, Insolvency or Delisting:

 

	
Cancellation and Payment; provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re‐listed, re‐traded or re‐quoted on any of the New York Stock Exchange, the American Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors); if the Shares are immediately re‐listed, re‐traded or re‐quoted on any such exchange or quotation system, such exchange or quotation system shall be deemed to be the Exchange.

 

	
Additional Disruption Events:

 

	
 

 

	
Change in Law:

 

	
Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase "the interpretation" in the third line thereof with the phrase ", or public announcement of, the formal or informal interpretation" and (ii) by replacing the word "Shares" where it appears in clause (X) thereof with the words "its Hedge Position"; provided further that (i) any determination as to whether (A) the adoption of or any change in any applicable law or regulation (including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute) or (B) the promulgation of or any change in the interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any applicable law or regulation (including any action taken by a taxing authority), in each case, constitutes a "Change in Law" shall be made without regard to Section 739 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date, and (ii) Section 12.9(a)(ii) of the Equity Definitions is hereby amended by replacing the parenthetical beginning after the word "regulation" in the second line thereof with the words "(including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute)".

 

	
Failure to Deliver:

 

	
Applicable

 

	
Insolvency Filing:

 

	
Applicable

 

	
Loss of Stock Borrow:

 

	
Applicable

 

	
Maximum Stock Loan Rate:

 

	
200 basis points per annum

 

	
Hedging Party:

 

	
Dealer

 

	
Increased Cost of Stock Borrow:

 

	
Applicable

 

	
Initial Stock Loan Rate:

 

	
50 basis points per annum

 

	
Hedging Party:

 

	
Dealer

 

	
Determining Party:

 

	
Dealer

 

	
Additional Termination Event(s):

 

	
The declaration by the Issuer of any Extraordinary Dividend, the ex‐dividend date for which occurs or is scheduled to occur during the Relevant Dividend Period, will constitute an Additional Termination Event, with Counterparty as the sole Affected Party and all Transactions hereunder as the Affected Transactions.

 

	
Relevant Dividend Period:

 

	
The period from and including the first day of the Hedge Period to and including the Relevant Dividend Period End Date.

 

	
Relevant Dividend Period End Date:

 

	
If Annex A applies, the last day of the Settlement Valuation Period; otherwise, the Termination Date.

 

	
Non-Reliance/Agreements and Acknowledgements Regarding Hedging Activities/Additional Acknowledgements:

 

	
Applicable

 

	
Transfer:

 

	
Notwithstanding anything to the contrary in the Agreement, Dealer may assign, transfer and set over all rights, title and interest, powers, privileges and remedies of Dealer under any Transaction, in whole or in part, to an affiliate of Dealer whose obligations are guaranteed by BNP Paribas without the consent of Counterparty.

 

	
Dealer Payment Instructions:

 

	
BNP Paribas, New York

ABA: 026007689

Swift Code: BNPAUS3N

Favor: BNP Paribas Paris (swift code: BNPAFRPP)

A/C: 020019409300136

 

	
Counterparty's Contact Details for Purpose of Giving Notice:

 

	
International Game Technology

6355 South Buffalo Drive

Las Vegas, Nevada 89113-2113

Attention:  Corporate Secretary

Telephone:  702-669‐7777

 Facsimile:  702-669‐7058

 

	
Dealer's Contact Details for Purpose of Giving Notice:

 

	

 BNP Paribas

Attention:  Damir Tanovic

Telephone:  212-841-2504

 Email:  damir.tanovic@us.bnpparibas.com

 

	
 

 

	
With a copy to:

 

	
 

 

	
Attention:  Strategic Equity Solutions

 Email:  NYK_STE@us.bnpparibas.com

 

2.            Calculation Agent.                                                      Dealer

3.            Additional Mutual Representations, Warranties and Covenants of Each Party.  In addition to the representations, warranties and covenants in the Agreement, each party represents, warrants and covenants to the other party that:

(a)            Eligible Contract Participant.  It is an "eligible contract participant", as defined in the U.S. Commodity Exchange Act (as amended), and is entering into each Transaction hereunder as principal (and not as agent or in any other capacity, fiduciary or otherwise) and not for the benefit of any third party.

(b)            Accredited Investor.  Each party acknowledges that the offer and sale of each Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), by virtue of Section 4(2) thereof.  Accordingly, each party represents and warrants to the other that (i) it has the financial ability to bear the economic risk of its investment in each Transaction and is able to bear a total loss of its investment, (ii) it is an "accredited investor" as that term is defined under Regulation D under the Securities Act and (iii) the disposition of each Transaction is restricted under this Master Confirmation, the Securities Act and state securities laws.

4.            Additional Representations, Warranties and Covenants of Counterparty.  In addition to the representations, warranties and covenants in the Agreement, Counterparty represents, warrants and covenants to Dealer that:

(a)            The purchase or writing of each Transaction and the transactions contemplated hereby will not violate Rule 13e‐1 or Rule 13e‐4 under the Exchange Act.

(b)            It is not entering into any Transaction (i) on the basis of, and is not aware of, any material non-public information with respect to the Shares, (ii) in anticipation of, in connection with, or to facilitate, a distribution of its securities, a self tender offer or a third-party tender offer or (iii) to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares).

(c)            Each Transaction is being entered into pursuant to a publicly disclosed Share buy-back program approved by its Board of Directors.

(d)            Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that neither Dealer nor any of its affiliates is making any representations or warranties or taking any position or expressing any view with respect to the treatment of any Transaction under any accounting standards including ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815‐40, Derivatives and Hedging – Contracts in Entity's Own Equity.

(e)            As of (i) the date hereof and (ii) the Trade Date for each Transaction hereunder, Counterparty is in compliance with its reporting obligations under the Exchange Act.

(f)            Counterparty shall report each Transaction as required under the Exchange Act and the rules and regulations thereunder.

(g)            The Shares are not, and Counterparty will not cause the Shares to be, subject to a "restricted period" (as defined in Regulation M promulgated under the Exchange Act) at any time during any Regulation M Period (as defined below) for any Transaction unless Counterparty has provided written notice to Dealer of such restricted period not later than the Scheduled Trading Day immediately preceding the first day of such "restricted period"; Counterparty acknowledges that any such notice may cause a Disrupted Day to occur pursuant to Section 5 below; accordingly, Counterparty acknowledges that its delivery of such notice must comply with the standards set forth in Section 6 below; "Regulation M Period" means, for any Transaction, (i) the Relevant Period (as defined below) and (ii) the Settlement Valuation Period, if any, for such Transaction. "Relevant Period" means, for any Transaction, the period commencing on the first day of the Hedge Period for such Transaction and ending on the Termination Date for such Transaction, or such earlier day as elected by Dealer and communicated to Counterparty on such day (or, if later, the First Acceleration Date without regard to any acceleration thereof pursuant to "Special Provisions for Acquisition Transaction Announcements" below).

(h)            As of the Prepayment Date, Counterparty is not "insolvent" (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the "Bankruptcy Code")) and Counterparty would be able to purchase a number of Shares with a value equal to the Prepayment Amount in compliance with the laws of the jurisdiction of Counterparty's incorporation.

(i)            Counterparty is not and, after giving effect to any Transaction, will not be, required to register as an "investment company" as such term is defined in the Investment Company Act of 1940, as amended.

(j)            Counterparty (A) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; (B) will exercise independent judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the broker-dealer in writing; and (C) has total assets of at least USD 50,000,000 as of the date hereof.

5.            Regulatory Disruption.  In the event that Dealer concludes, in its reasonable discretion, that it is appropriate with respect to any legal, regulatory or self-regulatory requirements, for it to refrain from or decrease any market activity on any Scheduled Trading Day or Days during the Hedge Period, the Calculation Period or, if applicable, the Settlement Valuation Period, Dealer may by written notice to Counterparty elect to deem that a Market Disruption Event has occurred and will be continuing on such Scheduled Trading Day or Days.

6.            10b5‐1 Plan.  Counterparty represents, warrants and covenants to Dealer that:

(a)            Counterparty is entering into this Master Confirmation and each Transaction hereunder in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5‐1 under the Exchange Act ("Rule 10b5‐1") or any other antifraud or anti-manipulation provisions of the federal or applicable state securities laws and that it has not entered into or altered and will not enter into or alter any corresponding or hedging transaction or position with respect to the Shares.  Counterparty acknowledges that it is the intent of the parties that each Transaction entered into under this Master Confirmation comply with the requirements of paragraphs (c)(1)(i)(A) and (B) of Rule 10b5‐1 and each Transaction entered into under this Master Confirmation shall be interpreted to comply with the requirements of Rule 10b5‐1(c).

(b)            Counterparty will not seek to control or influence Dealer's decision to make any "purchases or sales" (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) under any Transaction entered into under this Master Confirmation, including, without limitation, Dealer's decision to enter into any hedging transactions.  Counterparty represents and warrants that it has consulted with its own advisors as to the legal aspects of its adoption and implementation of this Master Confirmation, each Supplemental Confirmation and each Trade Notification under Rule 10b5‐1.

(c)            Counterparty acknowledges and agrees that any amendment, modification, waiver or termination of this Master Confirmation, the relevant Supplemental Confirmation or Trade Notification must be effected in accordance with the requirements for the amendment or termination of a "plan" as defined in Rule 10b5‐1(c).  Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b‐5, and no such amendment, modification or waiver shall be made at any time at which Counterparty or any officer, director, manager or similar person of Counterparty is aware of any material non-public information regarding Counterparty or the Shares.

7.            Counterparty Purchases.  Counterparty (or any "affiliated purchaser" as defined in Rule 10b‐18 under the Exchange Act ("Rule 10b‐18")) shall not, without the prior written consent of Dealer, directly or indirectly purchase any Shares (including by means of a derivative instrument), listed contracts on the Shares or securities that are convertible into, or exchangeable or exercisable for Shares (including, without limitation, any Rule 10b‐18 purchases of blocks (as defined in Rule 10b‐18)) during any Relevant Period or, if applicable, Settlement Valuation Period, except through Dealer

8.            Special Provisions for Merger Transactions.  Notwithstanding anything to the contrary herein or in the Equity Definitions:

(a)            Counterparty agrees that it:

	
(i)

	
will not during the period commencing on the Trade Date through the end of the Relevant Period or, if applicable, the Settlement Valuation Period for any Transaction make, or permit to be made (to the extent within Counterparty's control), any public announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction or potential Merger Transaction (a "Public Announcement") unless such Public Announcement is made prior to the opening or after the close of the regular trading session on the Exchange for the Shares;

	
(ii)

	
shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) notify Dealer following any such Public Announcement that such Public Announcement has been made; and

	
(iii)

	
shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) provide Dealer with written notice specifying (i) Counterparty's average daily Rule 10b‐18 Purchases (as defined in Rule 10b‐18) during the three full calendar months immediately preceding the announcement date that were not effected through Dealer or its affiliates and (ii) the number of Shares purchased pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months preceding the date of such Public Announcement.  Such written notice shall be deemed to be a certification by Counterparty to Dealer that such information is true and correct.  In addition, Counterparty shall promptly notify Dealer of the earlier to occur of the completion of the relevant Merger Transaction and the completion of the vote by target shareholders.

(b)            Counterparty acknowledges that a Public Announcement may cause the terms of any Transaction to be adjusted or such Transaction to be terminated; accordingly, Counterparty acknowledges that in making any Public Announcement, it must comply with the standards set forth in Section 6 above.

(c)            Upon the occurrence of any Public Announcement (whether made by Counterparty or a third party), Dealer may elect that either (i) the Calculation Agent shall, in a commercially reasonable manner, make adjustments to the terms of any Transaction, including, the Scheduled Termination Date and/or the Forward Price Adjustment Amount, to account for the economic effect of the Public Announcement on the theoretical value of the Transaction (including without limitation any change in volatility, stock loan rate or liquidity relevant to the Shares or to the Transaction) or (ii) Dealer may treat the occurrence of such Public Announcement as an Additional Termination Event with Counterparty as the sole Affected Party and the Transactions hereunder as the Affected Transactions and with the amount under Section 6(e) of the Agreement determined taking into account the fact that the Calculation Period or Settlement Valuation Period, as the case may be, had fewer Scheduled Trading Days than originally anticipated.

"Merger Transaction" means any merger, acquisition or similar transaction involving a recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act.

9.            Special Provisions for Acquisition Transaction Announcements.  (a) If an Acquisition Transaction Announcement occurs on or prior to the Settlement Date for any Transaction, then the Calculation Agent shall make such adjustments to the exercise, settlement, payment or any other terms of such Transaction as the Calculation Agent determines appropriate (including, without limitation and for the avoidance of doubt, adjustments to the Minimum Shares and adjustments that would allow the Number of Shares to be Delivered to be less than zero), at such time or at multiple times as the Calculation Agent determines appropriate, to account for the economic effect on such Transaction of such Acquisition Transaction Announcement (including adjustments to account for changes in volatility, expected dividends, stock loan rate and liquidity relevant to the Shares or to such Transaction).  If an Acquisition Transaction Announcement occurs after the Trade Date, but prior to the First Acceleration Date of any Transaction, the First Acceleration Date shall be the date of such Acquisition Transaction Announcement.  If the Number of Shares to be Delivered for any settlement of any Transaction is a negative number, then the terms of the Counterparty Settlement Provisions in Annex A shall apply.

(b)            "Acquisition Transaction Announcement" means (i) the announcement of an Acquisition Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into an agreement, a letter of intent or an understanding designed to result in an Acquisition Transaction, (iii) the announcement by Counterparty of the intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, an Acquisition Transaction or (iv) any announcement of any change or amendment to any previous Acquisition Transaction Announcement (including any announcement of the abandonment of any such previously announced Acquisition Transaction, agreement, letter of intent, understanding or intention).  For the avoidance of doubt, announcements as used in the definition of Acquisition Transaction Announcement refer to any public announcement whether made by the Issuer or a third party.

(c)            "Acquisition Transaction" means (i) any Merger Event (for purposes of this definition the definition of Merger Event shall be read with the references therein to "100%" being replaced by "15%" and to "50%" by "75%" and without reference to the clause beginning immediately following the definition of Reverse Merger therein to the end of such definition), Tender Offer or Merger Transaction or any other transaction involving the merger of Counterparty with or into any third party, (ii) the sale or transfer of all or substantially all of the assets of Counterparty, (iii) a recapitalization, reclassification, binding share exchange or other similar transaction, (iv) any acquisition, lease, exchange, transfer, disposition (including by way of spin-off or distribution) of assets (including any capital stock or other ownership interests in subsidiaries) or other similar event by Counterparty or any of its subsidiaries where the aggregate consideration transferable or receivable by or to Counterparty or its subsidiaries exceeds 15% of the market capitalization of Counterparty and (v) any transaction in which Counterparty or its board of directors has a legal obligation to make a recommendation to its shareholders in respect of such transaction (whether pursuant to Rule 14e‐2 under the Exchange Act or otherwise).

10.            Acknowledgments.  (a) The parties hereto intend for:

	
(i)

	
each Transaction to be a "securities contract" as defined in Section 741(7) of the Bankruptcy Code, a "swap agreement" as defined in Section 101(53B) of the Bankruptcy Code and a "forward contract" as defined in Section 101(25) of the Bankruptcy Code, and the parties hereto to be entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 555, 556, 560 and 561 of the Bankruptcy Code;

	
(ii)

	
the Agreement to be a "master netting agreement" as defined in Section 101(38A) of the Bankruptcy Code;

	
(iii)

	
a party's right to liquidate, terminate or accelerate any Transaction, net out or offset termination values or payment amounts, and to exercise any other remedies upon the occurrence of any Event of Default or Termination Event under the Agreement with respect to the other party or any Extraordinary Event that results in the termination or cancellation of any Transaction to constitute a "contractual right" (as defined in the Bankruptcy Code); and

	
(iv)

	
all payments for, under or in connection with each Transaction, all payments for the Shares (including, for the avoidance of doubt, payment of the Prepayment Amount) and the transfer of such Shares to constitute "settlement payments" and "transfers" (as defined in the Bankruptcy Code).

(b)            Counterparty acknowledges that:

	
(i)

	
during the term of any Transaction, Dealer and its affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to establish, adjust or unwind its hedge position with respect to such Transaction;

	
(ii)

	
Dealer and its affiliates may also be active in the market for the Shares and derivatives linked to the Shares other than in connection with hedging activities in relation to any Transaction, including acting as agent or as principal and for its own account or on behalf of customers;

	
(iii)

	
Dealer shall make its own determination as to whether, when or in what manner any hedging or market activities in Counterparty's securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Forward Price and the VWAP Price;

	
(iv)

	
any market activities of Dealer and its affiliates with respect to the Shares may affect the market price and volatility of the Shares, as well as the Forward Price and VWAP Price, each in a manner that may be adverse to Counterparty; and

	
(v)

	
each Transaction is a derivatives transaction in which it has granted Dealer an option; Dealer may purchase shares for its own account at an average price that may be greater than, or less than, the price paid by Counterparty under the terms of the related Transaction.

11.            Credit Support Documents.  The parties hereto acknowledge that no Transaction hereunder is secured by any collateral that would otherwise secure the obligations of Counterparty herein or pursuant to the Agreement.

12.            Delivery of Shares.  Notwithstanding anything to the contrary herein, Dealer may, by prior notice to Counterparty substantially in the form of Schedule C hereto, satisfy its obligation to deliver any Shares or other securities on any date due (an "Original Delivery Date") by making separate deliveries from time to time of Shares or such securities, as the case may be, at more than one time on or prior to such Original Delivery Date, so long as the aggregate number of Shares and other securities so delivered on or prior to such Original Delivery Date is at least equal to the number required to be delivered on such Original Delivery Date.  If Dealer delivers more than the Number of Shares to be Delivered on or prior to the Settlement Date, then the terms of the Counterparty Settlement Provisions in Annex A shall apply with the Number of Shares to be Delivered referenced in the definition of Forward Cash Settlement Amount deemed to be (a) the Number of Shares to be Delivered determined in accordance with the definition thereof minus (b) the number of Shares actually delivered by Dealer

13.            Early Termination.  In the event that an Early Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is designated with respect to any Transaction (except as a result of a Merger Event in which the consideration or proceeds to be paid to holders of Shares consists solely of cash), if either party would owe any amount to the other party pursuant to Section 6(d)(ii) of the Agreement (any such amount, a "Payment Amount"), then, in lieu of any payment of such Payment Amount, Counterparty may, no later than the Early Termination Date or the date on which such Transaction is terminated, elect to deliver or for Dealer to deliver, as the case may be, to the other party a number of Shares (or, in the case of a Merger Event, a number of units, each comprising the number or amount of the securities or property that a hypothetical holder of one Share would receive in such Merger Event (each such unit, an "Alternative Delivery Unit" and, the securities or property comprising such unit, "Alternative Delivery Property")) with a value equal to the Payment Amount, as determined by the Calculation Agent (and the parties agree that, in making such determination of value, the Calculation Agent may take into account a number of factors, including the market price of the Shares or Alternative Delivery Property on the date of early termination (but excluding any dividend or distribution on the Shares) and, if such delivery is made by Dealer, the prices at which Dealer purchases Shares or Alternative Delivery Property to fulfill its delivery obligations under this Section 13). If such delivery is made by Counterparty, paragraphs 2 through 7 of Annex A shall apply as if such delivery were a settlement of the Transaction to which Net Share Settlement applied, the Cash Settlement Payment Date were the Early Termination Date and the Forward Cash Settlement Amount were zero (0) minus the Payment Amount owed by Counterparty.

14.            Calculations and Payment Date upon Early Termination.  The parties acknowledge and agree that in calculating Loss pursuant to Section 6 of the Agreement Dealer may (but need not) determine losses without reference to actual losses incurred but based on expected losses assuming a commercially reasonable (including without limitation with regard to reasonable legal and regulatory guidelines) risk bid were used to determine loss to avoid awaiting the delay associated with closing out any hedge or related trading position in a commercially reasonable manner prior to or sooner following the designation of an Early Termination Date.  Notwithstanding anything to the contrary in Section 6(d)(ii) of the Agreement, all amounts calculated as being due in respect of an Early Termination Date under Section 6(e) of the Agreement will be payable on the day that notice of the amount payable is effective; provided that if Counterparty elects to receive Shares or Alternative Delivery Property in accordance with Section 13, such Shares or Alternative Delivery Property shall be delivered on a date selected by Dealer as promptly as practicable.

15.            Automatic Termination Provisions.  Notwithstanding anything to the contrary in Section 6 of the Agreement, if a Termination Price is specified in any Supplemental Confirmation, then an Additional Termination Event with Counterparty as the sole Affected Party and the Transaction to which such Supplemental Confirmation relates as the Affected Transaction will automatically occur without any notice or action by Dealer or Counterparty if the price of the Shares on the Exchange at any time falls below such Termination Price, and the Exchange Business Day that the price of the Shares on the Exchange at any time falls below the Termination Price will be the "Early Termination Date" for purposes of the Agreement.

16.            Special Provisions for Counterparty Payments.  The parties hereby agree that, notwithstanding anything to the contrary herein or in the Agreement, in the event that an Early Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is designated with respect to any Transaction and, as a result, Counterparty owes to Dealer an amount calculated under Section 6(e) of the Agreement, such amount shall be deemed to be zero; provided that (a) following an Acquisition Transaction Announcement or (b) if Dealer has delivered Shares before the Original Delivery Date pursuant to Section 12 above, this Section 16 shall cease to apply.

17.            Delivery of Cash.  For the avoidance of doubt, nothing in this Master Confirmation shall be interpreted as requiring Counterparty to deliver cash in respect of the settlement of the Transactions contemplated by this Master Confirmation following payment by Counterparty of the relevant Prepayment Amount and any relevant Counterparty Additional Payment Amount, except in circumstances where the required cash settlement thereof is permitted for classification of the contract as equity by ASC 815‐40, Derivatives and Hedging – Contracts in Entity's Own Equity, as in effect on the relevant Trade Date (including, without limitation, where Counterparty so elects to deliver cash or fails timely to elect to deliver Shares or Alternative Delivery Property in respect of the settlement of such Transactions).

18.            Claim in Bankruptcy.  Dealer acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to the Transactions that are senior to the claims of common stockholders in the event of Counterparty's bankruptcy.

19.            General Obligations Law of New York.  With respect to each Transaction, (i) this Master Confirmation, together with the related Supplemental Confirmation, as supplemented by the related Trade Notification, is a "qualified financial contract", as such term is defined in Section 5‐701(b)(2) of the General Obligations Law of New York (the "General Obligations Law"); (ii) such Trade Notification constitutes a "confirmation in writing sufficient to indicate that a contract has been made between the parties" hereto, as set forth in Section 5‐701(b)(3)(b) of the General Obligations Law; and (iii) this Master Confirmation, together with the related Supplemental Confirmation, constitutes a prior "written contract" as set forth in Section 5‐701(b)(1)(b) of the General Obligations Law, and each party hereto intends and agrees to be bound by this Master Confirmation and the related Supplemental Confirmation, as supplemented by the Trade Notification.

20.            Governing Law.  The Agreement, this Master Confirmation, each Supplemental Confirmation, each Trade Notification and all matters arising in connection with the Agreement, this Master Confirmation, each Supplemental Confirmation and each Trade Notification shall be governed by, and construed and enforced in accordance with, the laws of the State of New York (without reference to its choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law).

21.            Offices.

(a)            The Office of Dealer for each Transaction is:  787 7th Avenue, New York, NY

(b)            The Office of Counterparty for each Transaction is:  6355 South Buffalo Drive, Las Vegas, Nevada 89113-2113.

22.            Rule 10b‐18.  During any Hedge Period or any Settlement Valuation Period, Dealer agrees (i) to make all purchases of Shares (A) through only one broker or dealer on any single day and (B) in a manner that would comply with the limitations set forth in clauses (b)(2), (b)(4) and (c) of Rule 10b‐18 and (ii) to use commercially reasonable efforts to make all purchases of Shares in a manner that would comply with the limitations set forth in clause (b)(3) of Rule 10b‐18, in each case as if such rule was applicable to such purchases.

23.            Delivery or Receipt of Cash. For the avoidance of doubt, other than payment of the Prepayment Amount by Counterparty, nothing in this Master Confirmation shall be interpreted as requiring Counterparty to cash settle this Transaction, except in circumstances where cash settlement is within Counterparty's control (including, without limitation, where Counterparty fails timely to elect to deliver shares of Shares in accordance with the Counterparty Settlement Provisions or deliver or receive Alternative Delivery Units in accordance with Section 13) or in those circumstances in which holders of the Shares would also receive cash.

24.            Calculations, Adjustments and Determinations.  All calculations, adjustments and determinations made by Dealer hereunder, whether as Calculation Agent, as Determining Party or following the occurrence of an Early Termination Date, shall be made in good faith and in a commercially reasonable manner.  Dealer shall deliver to Counterparty, within five Exchange Business Days after a written request by Counterparty, a written explanation describing in reasonable detail any calculation, adjustment or determination made by it (including the methodology, interest rates, quotations, market data (including volatility) and information from internal sources used in making such calculation, adjustment or determination, but without disclosing any proprietary models or other information that Dealer is not permitted to disclose to Counterparty under applicable law, rule, regulation or agreement with third party (any such information, but not any such models, "confidential information", it being understood that if Dealer is permitted to disclose information to Counterparty on the condition that Counterparty agrees to keep such information confidential, and Counterparty so agrees, then such information shall not be considered confidential information), notwithstanding Counterparty's agreement to keep such models or information confidential).

25.            Waiver of Jury Trial.  EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING RELATING TO THE AGREEMENT, THIS MASTER CONFIRMATION, EACH SUPPLEMENTAL CONFIRMATION, THE TRANSACTIONS HEREUNDER AND ALL MATTERS ARISING IN CONNECTION WITH THE AGREEMENT, THIS MASTER CONFIRMATION AND ANY SUPPLEMENTAL CONFIRMATION AND THE TRANSACTIONS HEREUNDER.  EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTIONS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS PROVIDED HEREIN.

26.            Counterparts.  This Master Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Master Confirmation by signing and delivering one or more counterparts.

27.            BNP Paribas Securities Corp. as Agent.  The parties agree and acknowledge that (i) BNP Paribas Securities Corp. ("BNPPSC"), an affiliate of BNP Paribas, has acted solely as agent and not as principal with respect to this Transaction and (ii) BNPPSC has no obligation or liability, by way of guaranty, endorsement or otherwise, in any manner in respect of this Transaction (including, if applicable, in respect of the settlement thereof).  Each party agrees it will look solely to the other party (or any guarantor in respect thereof) for performance of such other parties' obligations under this Transaction.

Counterparty hereby agrees (a) to check this Master Confirmation carefully and immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the agreement between Dealer and Counterparty with respect to any particular Transaction to which this Master Confirmation relates, by manually signing this Master Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Marisa Flood, Facsimile No. (212) 841-3934.

Yours faithfully,

BNP Paribas

		By:	/s/ M. Andrews Yeo

Name:

 Title:

BNP Paribas

		By:	/s/ Authorized Signatory

Name:

 Title:

Agreed and Accepted By:

INTERNATIONAL GAME TECHNOLOGY

	By:	/s/ John Vandemore

Name:  John Vandemore

Title:  Chief Financial Officer and Treasurer1

A‐

SCHEDULE A

SUPPLEMENTAL CONFIRMATION

	
To:

 

	
International Game Technology

6355 South Buffalo Drive

 Las Vegas, Nevada 89113-2113

 

	
From:

 

	
BNP Paribas

787 Seventh Avenue

New York, NY 10019

 

 

	
Subject:

 

	
Capped Accelerated Stock Buyback

 

	
Ref. No:

 

	
[       ]

 

	
Date:

	
[       ]

The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the Transaction entered into between BNP Paribas ("Dealer") and International Game Technology ("Counterparty") (together, the "Contracting Parties") on the Trade Date specified below.  This Supplemental Confirmation is a binding contract between Dealer and Counterparty as of the relevant Trade Date for the Transaction referenced below.

1.            This Supplemental Confirmation supplements, forms part of, and is subject to the Master Confirmation dated as of November 7, 2013 (the "Master Confirmation") between the Contracting Parties, as amended and supplemented from time to time.  All provisions contained in the Master Confirmation govern this Supplemental Confirmation except as expressly modified below.

2.            The terms of the Transaction to which this Supplemental Confirmation relates are as follows:

	Trade Date:	[       ]

	Forward Price Adjustment Amount:	USD [       ]

	Hedge Period End Date:	[       ]

	Calculation Period Start Date:	[       ]

	Scheduled Termination Date:	[       ]

	First Acceleration Date:	[       ]

	Prepayment Amount:	[       ]

	Prepayment Date:	[       ]

	Counterparty Additional Payment Amount:	USD [       ]

	Initial Shares:	[       ]

	Minimum Share Delivery Date:	[       ]

	Minimum Shares:	[       ]

	Ordinary Dividend Amount:	For any calendar quarter, USD [       ]

	Scheduled Ex‐Dividend Dates:	[       ]

	Termination Price:	USD [       ] per Share

3.            Counterparty represents and warrants to Dealer that neither it nor any "affiliated purchaser" (as defined in Rule 10b‐18 under the Exchange Act) has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act during either (i) the four full calendar weeks immediately preceding the Trade Date or (ii) during the calendar week in which the Trade Date occurs.

4.            This Supplemental Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Supplemental Confirmation by signing and delivering one or more counterparts.

A‐

Counterparty hereby agrees (a) to check this Supplemental Confirmation carefully and immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the agreement between Dealer and Counterparty with respect to the Transaction to which this Supplemental Confirmation relates, by manually signing this Supplemental Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Marisa Flood, facsimile No. (212) 841-3934.

Yours faithfully,

BNP Paribas

		By:	

 Authorized Signatory

BNP Paribas

		By:	

 Authorized Signatory

Agreed and Accepted By:

INTERNATIONAL GAME TECHNOLOGY

By:                        _________________________

Name:  John Vandemore

 Title:  Chief Financial Officer and Treasurer

A‐

TRADE NOTIFICATION

	
To:

 

	
International Game Technology

6355 South Buffalo Drive

 Las Vegas, Nevada 89113-2113

 

	
From:

 

	
BNP Paribas787 Seventh Avenue

New York, NY 10019

 

	
Subject:

 

	
Capped Accelerated Stock Buyback

 

	
Ref. No:

 

	
[       ]

 

	
Date:

	
[       ]

The purpose of this Trade Notification is to notify you of certain terms in the Transaction entered into between BNP Paribas ("Dealer") and International Game Technology ("Counterparty") (together, the "Contracting Parties") bearing the trade reference number set forth above.

This Trade Notification supplements, forms part of, and is subject to the Supplemental Confirmation dated as of [       ] (the "Supplemental Confirmation") between the Contracting Parties, as amended and supplemented from time to time.  The Supplemental Confirmation is subject to the Master Confirmation dated as of November 7, 2013 (the "Master Confirmation") between the Contracting Parties, as amended and supplemented from time to time.

Hedge Completion Date:                                                                                    [       ]

Hedge Period Reference Price:                                                                                                  USD [       ]

Minimum Shares:                                                                                                  [       ]

Yours sincerely,

BNP Paribas

		By:	

 Authorized Signatory

		By:	

 Authorized Signatory

B‐

C‐

SCHEDULE B

SHARE DELIVERY NOTIFICATION

	
To:

 

	
International Game Technology

6355 South Buffalo Drive

 Las Vegas, Nevada 89113-2113

 

	
From:

 

	
BNP Paribas

787 Seventh Avenue

New York, NY 10019

 

 

	
Subject:

 

	
Capped Accelerated Stock Buyback

 

	
Ref. No:

 

	
[       ]

 

	
Date:

	
[       ]

The purpose of this Share Delivery Notification is to notify you of the number of Shares that Dealer intends to deliver to you, and the expected delivery date thereof, pursuant to the Master Confirmation dated as of November 7, 2013 (the "Master Confirmation") between BNP Paribas ("Dealer") and International Game Technology ("Counterparty") (together, the "Contracting Parties") and the Supplemental Confirmation dated as of [    ] between the Contracting Parties.

	
Shares to be delivered to Counterparty:

 

	
[       ] Shares

 

	
Date to be delivered:

 

	
[       ], 201_

 

	
Aggregate number of Shares delivered prior to the delivery referenced above:

	
[       ] Shares

Yours sincerely,

BNP Paribas

		By:	

 Authorized Signatory

		By:	

 Authorized Signatory

C‐

ANNEX A

COUNTERPARTY SETTLEMENT PROVISIONS

1.            The following Counterparty Settlement Provisions shall apply to the extent indicated under the Master Confirmation:

	
Settlement Currency:

 

	
USD

 

	
Settlement Method Election:

 

	
Applicable; provided that (i) Section 7.1 of the Equity Definitions is hereby amended by deleting the word "Physical" in the sixth line thereof and replacing it with the words "Net Share" and (ii) the Electing Party may make a settlement method election only if the Electing Party represents and warrants to Dealer in writing on the date it notifies Dealer of its election that, as of such date, the Electing Party is electing the settlement method in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.

 

	
Electing Party:

 

	
Counterparty

 

	
Settlement Method Election Date:

 

	
The earlier of (i) the Scheduled Termination Date and (ii) the second Exchange Business Day immediately following the Accelerated Termination Date (in which case the election under Section 7.1 of the Equity Definitions shall be made no later than 10 minutes prior to the open of trading on the Exchange on such second Exchange Business Day), as the case may be.

 

	
Default Settlement Method:

 

	
Cash Settlement

 

	
Forward Cash Settlement Amount:

 

	
The Number of Shares to be Delivered multiplied by the Settlement Price.

 

	
Settlement Price:

 

	
The average of the VWAP Prices for the Exchange Business Days in the Settlement Valuation Period, subject to Valuation Disruption as specified in the Master Confirmation.

 

	
Settlement Valuation Period:

 

	
A number of Scheduled Trading Days selected by Dealer or determined pursuant to a formula selected by Dealer, in each case in Dealer's reasonable discretion, beginning on the Scheduled Trading Day immediately following the earlier of (i) the Scheduled Termination Date or (ii) the Exchange Business Day immediately following the Termination Date; provided that Dealer may extend the Settlement Valuation Period if Dealer determines, in its reasonable discretion, that such extension is necessary or advisable to preserve Dealer's hedging or hedge unwind activity hereunder in light of existing liquidity conditions in the cash market, the stock loan market or other relevant market or to enable Dealer to effect purchases of Shares in connection with its hedging, hedge unwind or settlement activity hereunder in a manner that would, if Dealer were Counterparty or an affiliated purchaser of Counterparty, based on the advice of counsel, be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related policies and procedures applicable to Dealer

 

	
Cash Settlement:

 

	
If Cash Settlement is applicable, then Buyer shall pay to Seller the absolute value of the Forward Cash Settlement Amount on the Cash Settlement Payment Date.

 

	
Cash Settlement Payment Date:

 

	
The date one Settlement Cycle following the last day of the Settlement Valuation Period.

 

	
Net Share Settlement Procedures:

	
If Net Share Settlement is applicable, Net Share Settlement shall be made in accordance with paragraphs 2 through 7 below.

2.            Net Share Settlement shall be made by delivery on the Cash Settlement Payment Date of a number of Shares satisfying the conditions set forth in paragraph 3 below (the "Registered Settlement Shares"), or a number of Shares not satisfying such conditions (the "Unregistered Settlement Shares"), in either case with a value equal to the absolute value of the Forward Cash Settlement Amount, with such Shares' value based on the value thereof to Dealer (which value shall, in the case of Unregistered Settlement Shares, take into account a commercially reasonable illiquidity discount), in each case as determined by the Calculation Agent.

3.            Counterparty may only deliver Registered Settlement Shares pursuant to paragraph 2 above if:

(a)            a registration statement covering public resale of the Registered Settlement Shares by Dealer (the "Registration Statement") shall have been filed with the Securities and Exchange Commission under the Securities Act and been declared or otherwise become effective on or prior to the date of delivery, and no stop order shall be in effect with respect to the Registration Statement; and a printed prospectus relating to the Registered Settlement Shares (including any prospectus supplement thereto, the "Prospectus") shall have been delivered to Dealer, in such quantities as Dealer shall reasonably have requested, on or prior to the date of delivery;

(b)            the form and content of the Registration Statement and the Prospectus (including, without limitation, any sections describing the plan of distribution) shall be satisfactory to Dealer;

(c)            as of or prior to the date of delivery, Dealer and its agents shall have been afforded a reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities and the results of such investigation are satisfactory to Dealer, in its discretion; and

(d)            as of the date of delivery, an agreement (the "Underwriting Agreement") shall have been entered into with Dealer in connection with the public resale of the Registered Settlement Shares by Dealer substantially similar to underwriting agreements customary for underwritten offerings of equity securities, in form and substance commercially reasonably satisfactory to Dealer, which Underwriting Agreement shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, Dealer and its affiliates and the provision of customary opinions, accountants' comfort letters and lawyers' negative assurance letters.

4.            If Counterparty delivers Unregistered Settlement Shares pursuant to paragraph 2 above:

(a)            all Unregistered Settlement Shares shall be delivered to Dealer (or any affiliate of Dealer designated by Dealer) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(2) thereof;

(b)            as of or prior to the date of delivery, Dealer and any potential purchaser of any such shares from Dealer (or any affiliate of Dealer designated by Dealer) identified by Dealer shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for private placements of equity securities (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them);

(c)            as of the date of delivery, Counterparty shall enter into an agreement (a "Private Placement Agreement") with Dealer (or any affiliate of Dealer designated by Dealer) in connection with the private placement of such shares by Counterparty to Dealer (or any such affiliate) and the private resale of such shares by Dealer (or any such affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance commercially reasonably satisfactory to Dealer, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, Dealer and its affiliates and the provision of customary opinions, accountants' comfort letters and lawyers' negative assurance letters, and shall provide for the payment by Counterparty of all reasonable fees and expenses in connection with such resale, including all reasonable fees and expenses of counsel for Dealer, in cash or Shares at Counterparty's election, and shall contain representations, warranties, covenants and agreements of Counterparty reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales; and

(d)            in connection with the private placement of such shares by Counterparty to Dealer (or any such affiliate) and the private resale of such shares by Dealer (or any such affiliate), Counterparty shall, if so requested by Dealer, prepare, in cooperation with Dealer, a private placement memorandum in form and substance reasonably satisfactory to Dealer

5.            Dealer, itself or through an affiliate (the "Selling Agent") or any underwriter(s), will sell all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares or Unregistered Settlement Shares and any Makewhole Shares (as defined below) (together, the "Settlement Shares") delivered by Counterparty to Dealer pursuant to paragraph 6 below commencing on the Cash Settlement Payment Date and continuing until the date on which the aggregate Net Proceeds (as such term is defined below) of such sales, as determined by Dealer, is equal to the absolute value of the Forward Cash Settlement Amount (such date, the "Final Resale Date").  If the proceeds of any sale(s) made by Dealer, the Selling Agent or any underwriter(s), net of any fees and commissions (including, without limitation, underwriting or placement fees) customary for similar transactions under the circumstances at the time of the offering, together with carrying charges and expenses incurred in connection with the offer and sale of the Shares (including, but without limitation to, the covering of any over-allotment or short position (syndicate or otherwise)) (the "Net Proceeds") exceed the absolute value of the Forward Cash Settlement Amount, Dealer will refund, in USD, such excess to Counterparty on the date that is three (3) Currency Business Days following the Final Resale Date, and, if any portion of the Settlement Shares remains unsold, Dealer shall return to Counterparty on that date such unsold Shares.

6.            If the Calculation Agent determines that the Net Proceeds received from the sale of the Registered Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any, pursuant to this paragraph 6 are less than the absolute value of the Forward Cash Settlement Amount (the amount in USD by which the Net Proceeds are less than the absolute value of the Forward Cash Settlement Amount being the "Shortfall" and the date on which such determination is made, the "Deficiency Determination Date"), Counterparty shall on the Exchange Business Day next succeeding the Deficiency Determination Date (the "Makewhole Notice Date") deliver to Dealer, through the Selling Agent, a notice of Counterparty's election that Counterparty shall either (i) pay an amount in cash equal to the Shortfall on the day that is one (1) Currency Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares.  If Counterparty elects to deliver to Dealer additional Shares, then Counterparty shall deliver additional Shares in compliance with the terms and conditions of paragraph 3 or paragraph 4 above, as the case may be (the "Makewhole Shares"), on the first Clearance System Business Day which is also an Exchange Business Day following the Makewhole Notice Date in such number as the Calculation Agent reasonably believes would have a market value on that Exchange Business Day equal to the Shortfall.  Such Makewhole Shares shall be sold by Dealer in accordance with the provisions above; provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any Makewhole Shares is less than the absolute value of the Forward Cash Settlement Amount then Counterparty shall, at its election, either make such cash payment or deliver to Dealer further Makewhole Shares until such Shortfall has been reduced to zero.

7.            Notwithstanding the foregoing, in no event shall the aggregate number of Settlement Shares and Makewhole Shares be greater than the Reserved Shares minus the amount of any Shares actually delivered by Counterparty under any other Transaction(s) under this Master Confirmation (the result of such calculation, the "Capped Number").  Counterparty represents and warrants (which shall be deemed to be repeated on each day that a Transaction is outstanding) that the Capped Number is equal to or less than the number of Shares determined according to the following formula:

A – B

Where A = the number of authorized but unissued shares of the Counterparty that are not reserved for future issuance on the date of the determination of the Capped Number; and

B = the maximum number of Shares required to be delivered to third parties if Counterparty elected Net Share Settlement of all transactions in the Shares (other than Transactions in the Shares under this Master Confirmation) with all third parties that are then currently outstanding and unexercised.

"Reserved Shares" means initially, 12 million Shares.  The Reserved Shares may be increased or decreased in a Supplemental Confirmation.

8.            Notwithstanding anything to the contrary in the Agreement, this Master Confirmation, the Supplemental Confirmation or the Trade Notification, in no event shall Dealer be entitled to receive, or be deemed to receive, any Shares if, immediately upon giving effect to such receipt of such Shares, (i) the "beneficial ownership" (within the meaning of Section 13 of the Exchange Act and the rules promulgated thereunder) of Shares by Dealer, any of its affiliates subject to aggregation with Dealer for purposes of the "beneficial ownership" test under Section 13 of the Exchange Act and all persons who may form a "group" (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Dealer with respect to "beneficial ownership" of any Shares (collectively, "[Dealer] Group") would be equal to or greater than 4.5% or more of the outstanding Shares on the date of determination or (ii) Dealer, Dealer Group or any person whose ownership position would be aggregated with that of Dealer or Dealer Group (Dealer, Dealer Group or any such person a "[Dealer] Person") under Nevada Revised Statutes §§ 78.378-78.3793, 78.411-78.444 or other federal, state, local or tribal laws (including gaming laws), regulations or regulatory orders applicable to ownership of Shares ("Applicable Laws"), would own, beneficially own, constructively own, control, hold the power to vote or otherwise meet a relevant definition of ownership in excess of a number of Shares equal to (x) the number of Shares that would give rise to reporting, registration, filing or notification obligations or other requirements (including obtaining prior approval by a state or federal regulator) of a Dealer Person under Applicable Laws and with respect to which such requirements have not been met or the relevant approval has not been received or that would subject a Dealer Person to restrictions (including restrictions relating to business combinations and other designated transactions) under Applicable Laws minus (y) 1.0% of the number of Shares outstanding on the date of determination (any such condition described in clause (i) or (ii) an "Excess Ownership Position").  If any delivery owed to Dealer hereunder is not made, in whole or in part, as a result of this provision, Counterparty's obligation to make such delivery shall not be extinguished and Counterparty shall make such delivery as promptly as practicable after, but in no event later than one Clearance System Business Day after, Dealer gives notice to Counterparty that such delivery would not result in the existence of an Excess Ownership Position.

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